Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 03, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-16767 | ||
Entity Registrant Name | Western New England Bancorp, Inc. | ||
Entity Central Index Key | 0001157647 | ||
Entity Tax Identification Number | 73-1627673 | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Address, Address Line One | 141 Elm Street | ||
Entity Address, City or Town | Westfield | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01085 | ||
City Area Code | (413) | ||
Local Phone Number | 568-1911 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | WNEB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 167,596,293 | ||
Entity Common Stock, Shares Outstanding | 22,210,653 | ||
ICFR Auditor Attestation Flag | true | ||
Share Price | $ 7.46 | ||
Auditor Name | Wolf & Company, P.C. | ||
Auditor Location | Boston, Massachusetts | ||
Auditor Firm ID | 392 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 25,577 | $ 15,233 |
Federal funds sold | 1,652 | 4,901 |
Interest-bearing deposits and other short-term investments | 3,113 | 83,322 |
Cash and cash equivalents | 30,342 | 103,456 |
Available-for-sale securities, at fair value | 146,997 | 194,352 |
Held-to-maturity securities, at amortized cost (Fair value of $190,950 at December 31, 2022 and $219,748 at December 31, 2021) | 230,168 | 222,272 |
Marketable equity securities, at fair value | 6,237 | 11,896 |
Federal Home Loan Bank stock and other restricted stock, at cost | 3,352 | 2,594 |
Loans, net of allowance for loan losses of $19,931 and $19,787 at December 31, 2022 and 2021, respectively | 1,971,469 | 1,844,929 |
Premises and equipment, net | 24,953 | 26,162 |
Accrued interest receivable | 8,140 | 7,775 |
Bank-owned life insurance | 74,620 | 72,895 |
Deferred tax asset, net | 15,027 | 12,092 |
Goodwill | 12,487 | 12,487 |
Core deposit intangible | 2,188 | 2,563 |
Other assets | 27,170 | 24,952 |
TOTAL ASSETS | 2,553,150 | 2,538,425 |
Deposits: | ||
Non-interest-bearing | 645,529 | 641,284 |
Interest-bearing | 1,583,914 | 1,615,614 |
Total deposits | 2,229,443 | 2,256,898 |
Short-term borrowings | 41,350 | |
Long-term debt | 1,178 | 2,653 |
Subordinated debt | 19,673 | 19,633 |
Other liabilities | 33,363 | 35,553 |
Total liabilities | 2,325,007 | 2,314,737 |
SHAREHOLDERS’ EQUITY: | ||
Preferred stock - $0.01 par value, 5,000,000 shares authorized, none outstanding at December 31, 2022 and December 31, 2021 | ||
Common stock - $0.01 par value, 75,000,000 shares authorized, 22,216,789 shares issued and outstanding at December 31, 2022; 22,656,515 shares issued and outstanding at December 31, 2021 | 222 | 227 |
Additional paid-in capital | 128,899 | 132,821 |
Unearned compensation - ESOP | (2,906) | (3,441) |
Unearned compensation - Equity Incentive Plan | (1,012) | (981) |
Retained earnings | 127,982 | 107,376 |
Accumulated other comprehensive loss | (25,042) | (12,314) |
TOTAL SHAREHOLDERS’ EQUITY | 228,143 | 223,688 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,553,150 | $ 2,538,425 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Held-to-maturity securities, fair value | $ 190,950 | $ 219,748 |
Loans, allowance for loan losses | $ 19,931 | $ 19,787 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common stock, issued | 22,216,789 | 22,656,515 |
Common stock, outstanding | 22,216,789 | 22,656,515 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income: | |||
Residential and commercial real estate loans | $ 66,609 | $ 58,682 | $ 62,115 |
Commercial and industrial loans | 10,397 | 15,263 | 15,409 |
Consumer loans | 258 | 255 | 313 |
Debt securities, taxable | 8,095 | 5,286 | 4,163 |
Debt securities, tax-exempt | 11 | 12 | 56 |
Marketable equity securities | 190 | 96 | 123 |
Other investments | 177 | 116 | 587 |
Short-term investments | 191 | 139 | 109 |
Total interest and dividend income | 85,928 | 79,849 | 82,875 |
Interest expense: | |||
Deposits | 5,352 | 5,508 | 13,500 |
Long-term debt | 458 | 3,333 | |
Subordinated debt | 1,014 | 706 | |
Short-term borrowings | 330 | 1,612 | |
Total interest expense | 6,696 | 6,672 | 18,445 |
Net interest and dividend income | 79,232 | 73,177 | 64,430 |
Provision (credit) for loan losses | 700 | (925) | 7,775 |
Net interest and dividend income after provision (credit) for loan losses | 78,532 | 74,102 | 56,655 |
Non-interest income: | |||
Service charges and fees | 9,072 | 8,360 | 7,067 |
Income from bank-owned life insurance | 1,725 | 1,912 | 1,809 |
Bank-owned life insurance death benefit | 555 | ||
(Loss) gain on available-for-sale securities, net | (4) | (72) | 1,965 |
Gain on sale of mortgages | 2 | 1,423 | |
Net (losses) gains on marketable equity securities | (717) | (168) | 109 |
Gain on non-marketable equity investments | 422 | 898 | |
Gain on defined benefit plan curtailment | 2,807 | ||
Loss on interest rate swap termination | (402) | (2,353) | |
Other income | 25 | 58 | 654 |
Total non-interest income | 13,332 | 12,564 | 9,251 |
Non-interest expense: | |||
Salaries and employees benefits | 32,697 | 32,186 | 29,349 |
Occupancy | 4,984 | 4,656 | 4,520 |
Furniture and equipment | 2,026 | 2,084 | 1,537 |
Data processing | 2,885 | 2,903 | 2,901 |
Professional fees | 2,716 | 2,185 | 2,372 |
FDIC insurance assessment | 1,048 | 998 | 1,032 |
Advertising | 1,408 | 1,292 | 1,106 |
Loss on prepayment of borrowings | 45 | 987 | |
Other expenses | 9,471 | 8,593 | 7,946 |
Total non-interest expense | 57,235 | 54,942 | 51,750 |
Income before income taxes | 34,629 | 31,724 | 14,156 |
Income tax provision | 8,742 | 8,025 | 2,941 |
Net income | $ 25,887 | $ 23,699 | $ 11,215 |
Earnings per common share: | |||
Basic earnings per share | $ 1.18 | $ 1.02 | $ 0.45 |
Weighted average shares outstanding | 21,879,657 | 23,223,633 | 25,047,195 |
Diluted earnings per share | $ 1.18 | $ 1.02 | $ 0.45 |
Weighted average diluted shares outstanding | 21,938,323 | 23,300,637 | 25,062,476 |
Dividends per share | $ 0.24 | $ 0.20 | $ 0.20 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | ||||
Net income | $ 25,887 | $ 23,699 | $ 11,215 | |
Unrealized (losses) gains on available-for-sale securities: | ||||
Unrealized holding (losses) gains | (27,478) | (6,059) | 3,660 | |
Reclassification adjustment for net losses (gains) realized in income | [1] | 4 | 72 | (1,965) |
Unrealized (losses) gains | (27,474) | (5,987) | 1,695 | |
Tax effect | 7,037 | 1,499 | (410) | |
Net-of-tax amount | (20,437) | (4,488) | 1,285 | |
Cash flow hedges: | ||||
Change in fair value of derivatives used for cash flow hedges | (1,254) | |||
Reclassification adjustment for loss realized in income for interest rate swap termination | [2] | 402 | 2,353 | |
Reclassification adjustment for loss realized in interest expense | [3] | 674 | ||
Reclassification adjustment for termination fee realized in interest expense | [4] | 282 | 842 | |
Unrealized gains on cash flow hedges | 684 | 2,615 | ||
Tax effect | (192) | (736) | ||
Net-of-tax amount | 492 | 1,879 | ||
Defined benefit pension plan: | ||||
Gains (losses) arising during the period | 7,386 | 3,209 | (8,037) | |
Reclassification adjustment for gain realized in income for defined benefit plan curtailment | [5] | 2,807 | ||
Amortization of defined benefit plan actuarial loss | [6] | 531 | 910 | 421 |
Unrecognized actuarial gains (losses) on defined benefit plan | 10,724 | 4,119 | (7,616) | |
Tax effect | (3,015) | (1,158) | 2,141 | |
Net-of-tax amount | 7,709 | 2,961 | (5,475) | |
Other comprehensive loss | (12,728) | (1,035) | (2,311) | |
Comprehensive income | $ 13,159 | $ 22,664 | $ 8,904 | |
[1]Realized gains and losses on available-for-sale securities are recognized as a component of non-interest income in the consolidated statements of net income. The tax effects associated with the reclassification adjustments were $ (1,000) (15,000) 502,000 113,000 661,000 189,000 79,000 237,000 789,000 149,000 256,000 118,000 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Income tax effects applicable to net realized gains and losses on available-for-sale securities | $ (1,000) | $ (15,000) | $ 502,000 |
Income tax effects associated with reclassification adjustment for interest rate swap termination | 113,000 | 661,000 | |
Income tax effects associated with reclassification adjustment for loss realized in interest expense | 189,000 | ||
Income tax benefit on termination fee on derivative instruments | 79,000 | 237,000 | |
Income tax effect, defined benefit plan curtailment | 789,000 | ||
Income tax benefit, defined benefit plans | $ 149,000 | $ 256,000 | $ 118,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Unearned Compensation - ESOP [Member] | Deferred Compensation, Share-Based Payments [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 266 | $ 164,248 | $ (4,574) | $ (1,124) | $ 82,176 | $ (8,968) | $ 232,024 |
Beginning balance, shares at Dec. 31, 2019 | 26,557,981 | ||||||
Comprehensive income (loss) | 11,215 | (2,311) | 8,904 | ||||
Common stock held by ESOP committed to be released | (26) | 577 | 551 | ||||
Forfeited equity incentive plan shares | (319) | 319 | |||||
Common stock repurchased | $ (14) | (10,665) | (10,679) | ||||
Common stock repurchased (in shares) | (1,416,362) | ||||||
Share-based compensation - equity incentive plan | 834 | 834 | |||||
Issuance of common stock in connection with stock option exercises | 43 | 43 | |||||
Issuance of common stock in connection with stock option exercises (in shares) | 7,239 | ||||||
Issuance of common stock in connection with equity incentive plan | $ 1 | 1,268 | (1,269) | ||||
Issuance of common stock in connection with equity incentive plan (in shares) | 127,335 | ||||||
Cash dividends declared and paid on common stock | (5,037) | (5,037) | |||||
Ending balance, value at Dec. 31, 2020 | $ 253 | 154,549 | (3,997) | (1,240) | 88,354 | (11,279) | 226,640 |
Ending balance, shares at Dec. 31, 2020 | 25,276,193 | ||||||
Comprehensive income (loss) | 23,699 | (1,035) | 22,664 | ||||
Common stock held by ESOP committed to be released | 126 | 556 | 682 | ||||
Forfeited equity incentive plan shares | (259) | 259 | |||||
Common stock repurchased | $ (27) | (23,094) | (23,121) | ||||
Common stock repurchased (in shares) | (2,775,134) | ||||||
Share-based compensation - equity incentive plan | 1,307 | 1,307 | |||||
Issuance of common stock in connection with stock option exercises | 193 | 193 | |||||
Issuance of common stock in connection with stock option exercises (in shares) | 33,094 | ||||||
Issuance of common stock in connection with equity incentive plan | $ 1 | 1,020 | (1,021) | ||||
Issuance of common stock in connection with equity incentive plan (in shares) | 122,362 | ||||||
Forfeited equity incentive plan shares reissued | 286 | (286) | |||||
Cash dividends declared and paid on common stock | (4,677) | (4,677) | |||||
Ending balance, value at Dec. 31, 2021 | $ 227 | 132,821 | (3,441) | (981) | 107,376 | (12,314) | 223,688 |
Ending balance, shares at Dec. 31, 2021 | 22,656,515 | ||||||
Comprehensive income (loss) | 25,887 | (12,728) | 13,159 | ||||
Common stock held by ESOP committed to be released | 148 | 535 | 683 | ||||
Forfeited equity incentive plan shares | (213) | 213 | |||||
Common stock repurchased | $ (8) | (6,343) | (6,351) | ||||
Common stock repurchased (in shares) | (754,758) | ||||||
Share-based compensation - equity incentive plan | (2) | 1,076 | 1,074 | ||||
Issuance of common stock in connection with stock option exercises | $ 2 | 1,169 | 1,171 | ||||
Issuance of common stock in connection with stock option exercises (in shares) | 177,881 | ||||||
Issuance of common stock in connection with equity incentive plan | $ 1 | 1,248 | (1,249) | ||||
Issuance of common stock in connection with equity incentive plan (in shares) | 137,151 | ||||||
Forfeited equity incentive plan shares reissued | 71 | (71) | |||||
Cash dividends declared and paid on common stock | (5,281) | (5,281) | |||||
Ending balance, value at Dec. 31, 2022 | $ 222 | $ 128,899 | $ (2,906) | $ (1,012) | $ 127,982 | $ (25,042) | $ 228,143 |
Ending balance, shares at Dec. 31, 2022 | 22,216,789 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock held by ESOP committed to be released (shares) | 78,526 | 81,893 | 85,101 |
Forfeited equity incentive plan shares (in shares) | 24,440 | 24,506 | 30,193 |
Forfeited equity incentive plan shares reissued (in shares) | 7,289 | 32,544 | |
Cash dividends declared and paid on common stock (per share) | $ 0.24 | $ 0.20 | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES: | |||
Net income | $ 25,887 | $ 23,699 | $ 11,215 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision (credit) for loan losses | 700 | (925) | 7,775 |
Depreciation and amortization of premises and equipment | 2,312 | 2,322 | 2,145 |
Net (accretion) amortization of purchase accounting adjustments | (135) | 95 | (946) |
Amortization of core deposit intangible | 375 | 374 | 375 |
Net amortization of premiums and discounts on securities and mortgage loans | 1,553 | 2,251 | 2,540 |
Amortization of subordinated debt issuance costs | 40 | 27 | |
Share-based compensation expense | 1,074 | 1,307 | 834 |
ESOP expense | 683 | 682 | 551 |
Gain on sale of portfolio mortgages | (227) | ||
Principal balance of loans originated for sale | (277) | (52,130) | |
Principal balance of loans sold | 277 | 52,130 | |
Net loss (gain) on marketable equity securities | 717 | 168 | (109) |
Net loss (gain) on sales of available-for-sale securities | 4 | 72 | (1,965) |
Loss on prepayment of borrowings | 45 | 987 | |
Gain on bank-owned life insurance death benefit | (555) | ||
Deferred income tax provision (benefit) | 1,088 | 644 | (2,431) |
Income from bank-owned life insurance | (1,725) | (1,912) | (1,809) |
Net change in: | |||
Accrued interest receivable | (365) | 702 | (3,164) |
Other assets | (4,218) | (4,914) | 5,182 |
Other liabilities | 8,099 | 3,687 | 3,887 |
Net cash provided by operating activities | 36,089 | 27,542 | 25,067 |
INVESTING ACTIVITIES: | |||
Purchases of held-to-maturity securities | (28,030) | (231,292) | |
Proceeds from calls, maturities, and principal collections of held-to-maturity securities | 19,650 | 8,714 | |
Purchases of available-for-sale securities | (5,000) | (65,291) | (158,979) |
Proceeds from redemption and sales of available-for-sale securities | 20 | 9,562 | 96,320 |
Proceeds from calls, maturities, and principal collections of available-for-sale securities | 23,644 | 55,382 | 84,774 |
Proceeds from redemption of marketable equity securities | 5,131 | ||
Loan originations and principal payments, net | (127,142) | 54,322 | (151,474) |
Redemption of Federal Home Loan Bank of Boston stock, net | (758) | 2,566 | 9,317 |
Proceeds from sale of portfolio mortgages | 7,801 | ||
Purchases of premises and equipment | (1,143) | (3,457) | (3,581) |
Proceeds from sale of premises and equipment | 36 | 66 | |
Proceeds from payout on Bank owned life insurance | 2,435 | ||
Net cash used in investing activities | (111,193) | (161,657) | (123,557) |
FINANCING ACTIVITIES: | |||
Net (decrease) increase in deposits | (27,427) | 213,516 | 360,313 |
Net increase (decrease) in short-term borrowings | 41,350 | (35,000) | |
Repayment of long-term debt | (1,472) | (55,230) | (207,524) |
Proceeds from subordinated debt issuance | 20,000 | ||
Payment of subordinated debt issuance costs | (394) | ||
Proceeds from long-term debt | 58,917 | ||
Cash dividends paid | (5,281) | (4,677) | (5,037) |
Common stock repurchased | (6,351) | (23,281) | (10,519) |
Issuance of common stock in connection with stock option exercises | 1,171 | 193 | 43 |
Net cash provided by financing activities | 1,990 | 150,127 | 161,193 |
NET CHANGE IN CASH AND CASH EQUIVALENTS: | (73,114) | 16,012 | 62,703 |
Beginning of year | 103,456 | 87,444 | 24,741 |
End of year | 30,342 | 103,456 | 87,444 |
Supplemental cash flow information: | |||
Net change in due to broker for common stock repurchased | $ (160) | $ 160 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Basis of Presentation The Bank operates 25 Wholly-owned Subsidiaries Principles of Consolidation Estimates Reclassifications Significant Group Concentrations of Credit Risk Cash and Cash Equivalents Securities and Mortgage-Backed Securities Realized gains and losses on sales of securities and mortgage-backed securities are computed using the specific identification method and are included in non-interest income on the trade date. The amortization of premiums and accretion of discounts are determined by using the level yield method to the maturity date, except that premiums are amortized to the earliest call date or maturity. Non-marketable Equity Securities Derivatives Other-than-Temporary Impairment of Securities Fair Value Hierarchy Level 1: Level 2: Level 3: Federal Home Loan Bank of Boston Stock Loans Held for Sale Loans Receivable Allowance for Loan Losses 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. In 2020, the Bank added a new qualitative factor category to the allowance calculation – “Economic Impact of COVID-19” based upon an analysis of the loan portfolio that included identifying borrowers sensitive to the shutdown. During the year ended December 31, 2021, the qualitative adjustment factors related to the COVID-19 pandemic and the uncertainty in the economic environment were reduced as Management continued to assess the exposure of the Company’s loan portfolio to the COVID-19 pandemic related factors, economic trends and their potential effect on asset quality. There were no changes to the Company’s policies and procedures surrounding the allowance for loan losses during the year ended December 31, 2022. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each loan portfolio segment are as follows: Commercial real estate loans Residential real estate loans 97 90 85 80 85 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. We may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired. While we use our best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. 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 reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Loans Acquired with Deteriorated Credit Quality Bank-owned Life Insurance Transfers and Servicing of Financial Assets Premises and Equipment The estimated useful lives of the assets are as follows: Years Buildings 39 Leasehold Improvements 5 20 Furniture and Equipment 3 7 The cost of maintenance and repairs is charged to expense when incurred. Major expenditures for betterments are capitalized and depreciated. Other Real Estate Owned Servicing Servicing fee income is recorded for fees earned for servicing loans, which is included in service charges and fee income. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Impairment of Long-lived Assets Goodwill is measured as the excess of the cost of a business combination over the sum of the amounts assigned to identifiable intangible assets acquired less liabilities assumed. Goodwill is not amortized but rather assessed for impairment annually or more frequently if circumstances warrant. Management has the option of first assessing qualitative factors, such as events and circumstances, to determine whether it is more likely than not, meaning a likelihood of more than 50%, the value of a reporting unit is less than its carrying amount. If, after considering all relevant events and circumstances, management determines it is not more likely than not the fair value of a reporting unit is less than its carrying amount, then performing an impairment test is unnecessary. For the year ended December 31, 2022, management determined that it was not more likely than not the fair value of the reporting unit (the consolidated Company, in our case) was less than its carrying amount. If management had determined otherwise, a fair value analysis would have been completed to determine the impairment and necessary write-down of goodwill. Retirement Plans and Employee Benefits 50 6 Share-based Compensation Plans Employee Stock Ownership Plan Leases other assets other liabilities Advertising Costs Income Taxes Earnings per Share Earnings per common share have been computed based on the following: Years Ended December 31, 2022 2021 2020 (In thousands, except per share data) Net income applicable to common stock $ 25,887 $ 23,699 $ 11,215 Average number of common shares issued 22,451 23,849 25,751 Less: Average unallocated ESOP Shares (415 ) (496 ) (580 ) Less: Average unvested equity incentive plan shares (156 ) (129 ) (124 ) Average number of common shares outstanding used to calculate basic earnings per common share 21,880 23,224 25,047 Effect of dilutive equity incentive plan 42 36 — Effect of dilutive stock options 17 41 15 Average number of common shares outstanding used to calculate diluted earnings per common share 21,939 23,301 25,062 Basic earnings per share $ 1.18 $ 1.02 $ 0.45 Diluted earnings per share $ 1.18 $ 1.02 $ 0.45 Anti-dilutive shares (1) — — 259 (1) Shares outstanding but not included because the impact of these shares would be anti-dilutive to the earnings per share calculation for the period presented. 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: December 31, 2022 December 31, 2021 (In thousands) Net unrealized losses on available-for-sale securities $ (32,159 ) $ (4,685 ) Tax effect 8,197 1,160 Net-of-tax amount (23,962 ) (3,525 ) Unrecognized actuarial loss on the defined benefit plan (1,501 ) (12,225 ) Tax effect 421 3,436 Net-of-tax amount (1,080 ) (8,789 ) Accumulated other comprehensive loss $ (25,042 ) $ (12,314 ) Recent Accounting Pronouncements. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13 Financial Instruments—Credit Losses The adoption of the Current Expected Credit (“CECL”) methodology to calculate loan losses became effective for the Company on January 1, 2023 January 1, 2023 9,000 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES Available-for-sale and held-to-maturity investment securities at December 31, 2022 and 2021 are summarized as follows: December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 14,913 $ — $ (3,345 ) $ 11,568 State and municipal bonds 270 — — 270 Corporate bonds 8,012 — (519 ) 7,493 Total debt securities 23,195 — (3,864 ) 19,331 Mortgage-backed securities: Government-sponsored mortgage-backed securities 148,544 — (26,826 ) 121,718 U.S. government guaranteed mortgage-backed securities 7,417 — (1,469 ) 5,948 Total mortgage-backed securities 155,961 — (28,295 ) 127,666 Total available-for-sale 179,156 — (32,159 ) 146,997 Held-to-maturity securities: Debt securities: U.S. Treasury securities 9,987 — (825 ) 9,162 Total debt securities 9,987 — (825 ) 9,162 Mortgage-backed securities: Government-sponsored mortgage-backed securities 220,181 67 (38,460 ) 181,788 Total mortgage-backed securities 220,181 67 (38,460 ) 181,788 Total held-to-maturity 230,168 67 (39,285 ) 190,950 Total $ 409,324 $ 67 $ (71,444 ) $ 337,947 The following table presents the unrealized gains (losses) recognized on marketable equity securities for the periods indicated: Years Ended December 31, 2022 2021 2020 (In thousands) Net (losses) gains recognized during the year on marketable equity securities $ (717 ) $ (168 ) $ 109 Net losses recognized during the year on equity securities sold during the year 1,021 — — Unrealized gain (loss) recognized during the year on marketable equity securities still held at year end $ 304 $ (168 ) $ 109 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 14,902 $ — $ (676 ) $ 14,226 State and municipal bonds 405 1 — 406 Corporate bonds 3,026 86 — 3,112 Total debt securities 18,333 87 (676 ) 17,744 Mortgage-backed securities: Government-sponsored mortgage-backed securities 171,011 427 (3,929 ) 167,509 U.S. government guaranteed mortgage-backed securities 9,693 8 (602 ) 9,099 Total mortgage-backed securities 180,704 435 (4,531 ) 176,608 Total available-for-sale 199,037 522 (5,207 ) 194,352 Held-to-maturity securities: Debt securities: U.S. Treasury securities 9,979 — (6 ) 9,973 Total debt securities 9,979 — (6 ) 9,973 Mortgage-backed securities: Government-sponsored mortgage-backed securities 212,293 — (2,518 ) 209,775 Total mortgage-backed securities 212,293 — (2,518 ) 209,775 Total held-to-maturity 222,272 — (2,524 ) 219,748 Total $ 421,309 $ 522 $ (7,731 ) $ 414,100 At December 31, 2022, U.S. Treasury securities with a fair value of $ 4.5 7.6 44.7 The amortized cost and fair value of available-for-sale and held-to-maturity securities at December 31, 2022, by final maturity, are shown below. Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Debt securities: Due after one year through five years $ 3,282 $ 3,188 $ 9,987 $ 9,162 Due after five years through ten years 14,913 12,567 — — Due after ten years 5,000 3,576 — — Total debt securities $ 23,195 $ 19,331 $ 9,987 $ 9,162 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Mortgage-backed securities: Due after one year through five years $ 564 $ 530 $ — $ — Due after five years through ten years 1,088 989 — — Due after ten years 154,309 126,147 220,181 181,788 Total mortgage-backed securities 155,961 127,666 220,181 181,788 Total securities $ 179,156 $ 146,997 $ 230,168 $ 190,950 Gross realized gains and losses on sales of available-for-sale securities for the years ended December 31, 2022, 2021 and 2020 are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Gross gains realized $ — $ 12 $ 2,188 Gross losses realized (4 ) (84 ) (223 ) Net (loss) gain realized $ (4 ) $ (72 ) $ 1,965 Proceeds from the redemption and sales of available-for-sale securities totaled $ 20,000 9.6 96.3 Information pertaining to securities with gross unrealized losses at December 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: December 31, 2022 Less Than Twelve Months Over Twelve Months Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Available-for-sale: Government-sponsored mortgage-backed securities 10 $ 9,133 $ 776 7.8 % 60 $ 112,586 $ 26,050 18.8 % U.S. government guaranteed mortgage-backed securities 1 113 20 15.0 8 5,835 1,449 19.9 Government-sponsored enterprise obligations — — — — 3 11,568 3,345 22.4 Corporate bonds 3 7,493 519 6.5 — — — — Total available-for-sale 14 16,739 1,315 71 129,989 30,844 Held-to-maturity: U.S. Treasury securities — — — — % 2 9,162 825 8.3 % Government-sponsored mortgage-backed securities 6 18,911 2,116 10.1 31 157,947 36,344 18.7 Total held-to-maturity 6 18,911 2,116 33 167,109 37,169 Total 20 $ 35,650 $ 3,431 104 $ 297,098 $ 68,013 December 31, 2021 Less Than Twelve Months Over Twelve Months Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Available-for-sale: Government-sponsored mortgage-backed securities 34 $ 105,221 $ 2,088 2.0 % 18 $ 42,506 $ 1,841 4.5 % U.S. government guaranteed mortgage-backed securities 2 2,426 142 6.2 5 5,107 460 9.9 Government-sponsored enterprise obligations — — — — 3 14,226 676 5.0 Total available-for-sale 36 107,647 2,230 26 61,839 2,977 Held-to-maturity: U.S. Treasury securities 2 9,973 6 0.1 % — — — — % Government-sponsored mortgage-backed securities 31 209,775 2,518 1.2 — — — — Total held-to-maturity 33 219,748 2,524 — — — Total 69 $ 327,395 $ 4,754 26 $ 61,839 $ 2,977 During the years ended December 31, 2022 and 2021, the Company did not record any other-than-temporary impairment (“OTTI”) charges on its investments. Management regularly reviews the portfolio for securities with unrealized losses. At December 31, 2022, management 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 and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise 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. At December 31, 2022, there was one corporate bond that was below investment grade. The Company reviewed the financial strength of this bond and has concluded that the amortized cost remains supported by the expected future cash flows of the security. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
LOANS | 3. LOANS Major classifications of loans as of the dates indicated were as follows: December 31, December 31, 2022 2021 (In thousands) Commercial real estate $ 1,069,323 $ 979,969 Residential real estate: Residential one-to-four family 589,503 552,332 Home equity 105,557 99,759 Total residential real estate 695,060 652,091 Commercial and industrial: Paycheck protection program (“PPP”) loans 2,274 25,329 Commercial and industrial 217,574 201,340 Total commercial and industrial 219,848 226,669 Consumer 5,045 4,250 Total gross loans 1,989,276 1,862,979 Unamortized PPP loan fees (109 ) (781 ) Unearned premiums and deferred loan fees and costs, net 2,233 2,518 Total loans, net 1,991,400 1,864,716 Allowance for loan losses (19,931 ) (19,787 ) Net loans $ 1,971,469 $ 1,844,929 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 December 31, 2022 and December 31, 2021, the Company was servicing commercial loans participated out to various other institutions totaling $ 70.5 63.2 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 December 31, 2022, include weighted average prepayment speed for the portfolio using the Public Securities Association Standard Prepayment Model ( 105 10.01 0.25 83.71 277,000 59.7 2,000 1.4 At December 31, 2022 and December 31, 2021, the Company was servicing residential mortgage loans owned by investors totaling $ 79.3 88.2 208,000 137,000 A summary of the activity in the balances of mortgage servicing rights follows: Years Ended December 31, 2022 2021 (In thousands) Balance at the beginning of year: $ 693 $ 153 Capitalized mortgage servicing rights 2 628 Amortization (145 ) (86 ) Write-down of mortgage servicing asset to fair value — (2 ) Balance at the end of year $ 550 $ 693 Fair value at the end of year $ 794 $ 739 Allowance for Loan Losses. An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2022, 2021 and 2020 is as follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) Balance at December 31, 2019 $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Provision 6,262 408 939 129 37 7,775 Charge-offs (107 ) (177 ) (543 ) (136 ) — (963 ) Recoveries 58 89 51 45 — 243 Balance at December 31, 2020 $ 13,020 $ 4,240 $ 3,630 $ 241 $ 26 $ 21,157 Provision (credit) 46 (349 ) (644 ) 35 (13 ) (925 ) Charge-offs (103 ) (44 ) (370 ) (128 ) — (645 ) Recoveries 7 117 27 49 — 200 Balance at December 31, 2021 $ 12,970 $ 3,964 $ 2,643 $ 197 $ 13 $ 19,787 Provision (credit) (434 ) 344 586 202 2 700 Charge-offs (337 ) (28 ) (92 ) (216 ) — (673 ) Recoveries — 32 23 62 — 117 Balance at December 31, 2022 $ 12,199 $ 4,312 $ 3,160 $ 245 $ 15 $ 19,931 The following table presents information pertaining to the allowance for loan losses by segment as of the dates indicated: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) December 31, 2022 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 12,199 4,312 3,160 245 15 19,931 Total allowance for loan losses $ 12,199 $ 4,312 $ 3,160 $ 245 $ 15 $ 19,931 Impaired loans $ 9,178 $ 3,623 $ 407 $ — $ — $ 13,208 Non-impaired loans 1,056,886 689,776 219,163 5,045 — 1,970,870 Impaired loans acquired with deteriorated credit quality 3,259 1,661 278 — — 5,198 Total loans $ 1,069,323 $ 695,060 $ 219,848 $ 5,045 $ — $ 1,989,276 Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total December 31, 2021 (1) Amount of allowance for impaired loans (1) $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans (1) 12,970 3,964 2,643 197 13 19,787 Total allowance for loan losses (1) $ 12,970 $ 3,964 $ 2,643 $ 197 $ 13 $ 19,787 Impaired loans (1) $ 9,601 $ 3,223 $ 699 $ 22 $ — $ 13,545 Non-impaired loans (1) 965,577 647,098 200,271 4,228 — 1,817,174 Impaired loans acquired with deteriorated credit quality (1) 4,791 1,770 370 — — 6,931 Total loans (1) $ 979,969 $ 652,091 $ 201,340 $ 4,250 $ — $ 1,837,650 (1) December 31, 2021 non-impaired loan balances exclude PPP loans. Past Due and Nonaccrual loans. The following tables present an age analysis of past due loans as of the dates indicated: 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Total Current Loans Total Loans Nonaccrual Loans (In thousands) December 31, 2022 Commercial real estate $ — $ 211 $ 1,404 $ 1,615 $ 1,067,708 $ 1,069,323 $ 1,933 Residential real estate: Residential one-to-four family 1,768 100 414 2,282 587,221 589,503 3,290 Home equity 209 97 51 357 105,200 105,557 181 Commercial and industrial 170 10 22 202 219,646 219,848 290 Consumer 13 — — 13 5,032 5,045 — Total loans $ 2,160 $ 418 $ 1,891 $ 4,469 $ 1,984,807 $ 1,989,276 $ 5,694 December 31, 2021 (1) Commercial real estate $ 139 $ — $ 436 $ 575 $ 979,394 $ 979,969 $ 1,224 Residential real estate: Residential one-to-four family 787 41 507 1,335 550,997 552,332 3,214 Home equity 57 5 63 125 99,634 99,759 94 Commercial and industrial 58 10 22 90 201,250 201,340 410 Consumer 5 — 11 16 4,234 4,250 22 Total loans $ 1,046 $ 56 $ 1,039 $ 2,141 $ 1,835,509 $ 1,837,650 $ 4,964 (1) December 31, 2021 balances exclude PPP loans. At December 31, 2022 and December 31, 2021, all loans past due 90 days or more were carried as nonaccrual. The ratio of nonaccrual loans to total loans was 0.29 0.27 Impaired Loans. The following is a summary of impaired loans by class: Year Ended At December 31, 2022 December 31, 2022 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired Loans (1) (In thousands) Commercial real estate $ 12,437 $ 13,795 $ — $ 13,427 $ 248 Residential real estate: Residential one-to-four family 5,088 5,823 — 4,792 59 Home equity 196 214 — 172 1 Commercial and industrial 685 3,095 — 891 66 Consumer — — — 3 — Total impaired loans $ 18,406 $ 22,927 $ — $ 19,285 $ 374 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. Year Ended At December 31, 2021 December 31, 2021 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired Loans (1) (In thousands) Commercial real estate $ 14,392 $ 15,563 $ — $ 15,757 $ 469 Residential real estate: Residential one-to-four family 4,881 5,381 — 5,693 233 Home equity 112 136 — 146 7 Commercial and industrial 1,069 3,850 — 2,551 131 Consumer 22 37 — 25 3 Total impaired loans $ 20,476 $ 24,967 $ — $ 24,172 $ 843 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. The majority of impaired loans are included within the nonaccrual balances; however, not every loan on nonaccrual status has been designated as impaired. Impaired loans include loans that have been modified in a 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 nonaccrual status are applied to principal. There was no interest income recognized on nonaccrual impaired loans during the years ended December 31, 2022 and December 31, 2021. 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 December 31, 2022, we have not committed to lend any additional funds for loans that are classified as impaired. Payments received on impaired loans in accrual status are recorded in accordance with the contractual terms of the loan. 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. Nonperforming TDRs are included in nonperforming loans. There were no charge-offs on TDRs during the years ended December 31, 2022 and 2021. During the years ended December 31, 2022 and 2021, no TDRs defaulted (defined as 30 days or more past due) within 12 months of restructuring. Loans Acquired with Deteriorated Credit Quality. The following is a summary of loans acquired with evidence of credit deterioration from Chicopee as of December 31, 2022. Contractual Required Payments Receivable Cash Expected To Be Collected Non-Accretable Discount Accretable Yield Loans Receivable (In thousands) Balance at December 31, 2021 $ 12,134 $ 9,430 $ 2,704 $ 2,499 $ 6,931 Collections (1,792 ) (1,576 ) (216 ) (213 ) (1,363 ) Dispositions (589 ) (439 ) (150 ) (69 ) (370 ) Balance at December 31, 2022 $ 9,753 $ 7,415 $ 2,338 $ 2,217 $ 5,198 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. Nonperforming 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 Special Mention Loans rated 6 Substandard Loans rated 7 Doubtful 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 their review, the third party examines a sample of loans, including new loans, existing relationships over certain dollar amounts and classified assets. The following table presents our loans by risk rating for the periods indicated: Commercial Real Estate Residential One-to-Four Family Home Equity Commercial and Industrial Consumer Total (In thousands) December 31, 2022 Pass (Rated 1 – 4) $ 1,036,337 $ 585,292 $ 105,248 $ 193,415 $ 5,027 $ 1,925,319 Special Mention (Rated 5) 16,035 — — 5,623 — 21,658 Substandard (Rated 6) 16,951 4,211 309 20,810 18 42,299 Total $ 1,069,323 $ 589,503 $ 105,557 $ 219,848 $ 5,045 $ 1,989,276 Commercial Real Estate Residential One-to-Four Family Home Equity Commercial and Industrial Consumer Total December 31, 2021 (In thousands) Pass (Rated 1 – 4) $ 913,063 $ 547,980 $ 99,503 $ 215,605 $ 4,228 $ 1,780,379 Special Mention (Rated 5) 48,765 — — 2,777 — 51,542 Substandard (Rated 6) 18,141 4,352 256 8,287 22 31,058 Total $ 979,969 $ 552,332 $ 99,759 $ 226,669 $ 4,250 $ 1,862,979 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | 4. PREMISES AND EQUIPMENT Premises and equipment are summarized as follows: December 31, 2022 2021 (In thousands) Land $ 6,239 $ 6,239 Buildings 26,738 26,343 Leasehold improvements 3,472 3,409 Furniture and equipment 21,880 21,195 Total 58,329 57,186 Less: accumulated depreciation and amortization (33,376 ) (31,024 ) Premises and equipment, net $ 24,953 $ 26,162 Depreciation and amortization expense for the years ended December 31, 2022, 2021 and 2020 amounted to $ 2.3 2.3 2.1 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | 5. GOODWILL AND OTHER INTANGIBLES At December 31, 2022 and December 31, 2021, the Company’s goodwill was related to the acquisition of Chicopee Savings Bank in October 2016. There was no goodwill impairment recorded during the years ended December 31, 2022 and 2021. 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 twelve years 375,000 374,000 375,000 375,000 313,000 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
Deposit Assets [Abstract] | |
DEPOSITS | 6. DEPOSITS Deposit accounts, by type, are summarized as follows for the periods indicated: At December 31, 2022 2021 (In thousands) Demand and interest-bearing checking: Interest-bearing checking accounts $ 148,670 $ 145,739 Demand deposits 645,571 641,284 Savings: Regular savings accounts 222,436 217,565 Money market accounts 801,076 850,330 Time deposits 411,690 401,980 Total deposits $ 2,229,443 $ 2,256,898 There were no brokered deposits at December 31, 2022 and December 31, 2021. Time deposits of $250,000 or more totaled $ 131.7 358,000 412,000 The scheduled maturities of time deposits for the periods indicated are as follows: At December 31, 2022 2021 (In thousands) 2022 $ — $ 363,290 2023 288,697 24,500 2024 114,244 7,911 2025 4,873 4,892 2026 3,780 1,387 2027 96 — Total time deposits $ 411,690 $ 401,980 Interest expense on deposits for the years ended December 31, 2022, 2021 and 2020 is summarized as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Regular accounts $ 161 $ 154 $ 136 Money market accounts 3,187 2,412 2,838 Time deposits 1,474 2,543 10,139 Interest-bearing checking accounts 530 399 387 Total $ 5,352 $ 5,508 $ 13,500 Cash paid for interest on deposits totaled $ 5.3 5.5 13.6 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | 7. SHORT-TERM BORROWINGS We utilize short-term borrowings and long-term debt as additional sources of funds to finance our lending and investing activities and to provide liquidity for daily operations. Total borrowing capacity includes borrowing arrangements at the FHLB, the Federal Reserve Bank (“FRB”), and borrowing arrangements with correspondent banks. Short-term borrowings can consist of FHLB advances with an original maturity of less than one year, overnight Ideal Way line of credit advances and other borrowings held as collateral for customer swap arrangements. Other borrowings totaled $ 6.4 4.33% no 35 4.38% none FHLB advances provide more pricing and option alternatives for particular asset/liability needs. The FHLB provides a central credit facility primarily for member institutions. As an FHLB member, the Company is required to own capital stock of the FHLB, calculated periodically based primarily on its level of borrowings from the FHLB. FHLB borrowings 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. Advances are made under several different credit programs with different lending standards, interest rates and range of maturities. This relationship is an integral component of the Company’s asset-liability management program. At December 31, 2022, the Bank had $ 407.4 The Company also has an available overnight Ideal Way line of credit with the FHLB of $ 9.5 The Company has an available line of credit of $ 4.4 The Company also has pre-established, non-collateralized overnight borrowing arrangements with large national and regional correspondent banks to provide additional overnight and short-term borrowing capacity for the Company. The Company has a $ 15 50 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 8. LONG-TERM DEBT FHLB Advances. The following advances are collateralized by a blanket lien on our residential real estate loans and certain eligible commercial real estate loans. Amount Weighted Average Rate 2022 2021 2022 2021 (In thousands) Fixed-rate advances maturing: 2022 $ — $ 1,475 — % 0.1 % 2023 532 532 — — 2024 646 646 — — 2025 — — — — Total long-term advances $ 1,178 $ 2,653 — % 0.1 % Cash paid for interest on long-term FHLB advances totaled $ 513,000 3.6 Subordinated Debt. On April 20, 2021, the Company completed an offering of $ 20 4.875 Unless earlier redeemed, the Notes mature on May 1, 2031 4.875 90-day average secured overnight financing rate 412 May 1, 2026 The Notes are presented net of issuance costs of $ 327,000 40,000 27,000 |
STOCK PLANS AND EMPLOYEE STOCK
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN | 9. STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN Stock Options. A summary of the status of our stock options at December 31, 2022 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2021 177,881 $ 6.57 0.81 $ 388 Exercised (177,881 ) 6.58 0.33 430 Outstanding at December 31, 2022 — $ — — $ — Cash received for options exercised during the years ended December 31, 2022, 2021 and 2020 was $ 1.2 193,000 43,000 Restricted Stock Awards. In May 2014, the Company’s shareholders approved the 2014 Omnibus Incentive Plan, a stock-based compensation plan (the “2014 RSA Plan”). Under the 2014 RSA Plan, up to 516,000 On an annual basis, the Compensation Committee (the “Committee”) approves long-term incentive awards out of the 2014 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 one-year In February 2020, 120,053 120,053 69,898 19,760 one year 50,138 three-year 50,155 50 three-year 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 50 100 150 The fair market value of shares awarded is based on the market price at the grant date, recorded as unearned compensation and amortized over the applicable vesting period. Performance-based metrics are monitored on a quarterly basis in order to compare actual results to the performance metric, with any necessary adjustments being recognized through share-based compensation expense and unearned compensation. In February 2021, 19,827 one-year In May 2021, the Company’s shareholders approved the 2021 Omnibus Incentive Plan, a stock-based compensation plan (the “2021 RSA Plan”). Under the 2021 RSA Plan, up to 700,000 In May 2021, 122,362 122,362 61,181 three-year 61,181 50 three-year three-year The threshold, target and stretch metrics under the 2021 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2021 5.63 % 6.25 % 7.50 % December 31, 2022 5.85 % 6.50 % 7.80 % December 31, 2023 6.08 % 6.75 % 8.10 % Earnings Per Share Metrics Performance Period Ending Threshold Target Stretch Three-year Cumulative Diluted Earnings Per Share $ 1.58 $ 1.97 $ 2.36 In March 2022, 137,151 137,151 77,463 17,775 one year 59,688 three-year 59,688 50 three-year three-year The threshold, target and stretch metrics under the 2022 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2022 7.79 % 8.20 % 8.61 % December 31, 2023 7.93 % 8.35 % 8.77 % December 31, 2024 8.03 % 8.45 % 8.87 % Earnings Per Share Metrics Performance Period Ending Threshold Target Stretch Three-year Cumulative Diluted Earnings Per Share $ 2.35 $ 2.61 $ 2.85 At December 31, 2022, there were 459,508 A summary of the status of restricted stock awards at December 31, 2022 and 2021 is presented below: Shares Weighted Average Balance at December 31, 2021 213,381 $ 8.91 Shares granted 144,440 9.14 Shares forfeited (24,440 ) 8.73 Shares vested (127,289 ) 9.32 Balance at December 31, 2022 206,092 $ 8.85 Shares Weighted Average Grant Date Fair Value Balance at December 31, 2020 178,766 $ 9.63 Shares granted 154,906 8.44 Shares forfeited (24,506 ) 10.59 Shares vested (95,785 ) 9.05 Balance at December 31, 2021 213,381 $ 8.91 We recorded total expense for restricted stock awards of $ 1.1 1.3 834,000 1.2 16,000 (5,000) (23,000) 1.2 1.5 Employee Stock Ownership Plan (“ESOP”). 21 1,000 8 1,305,359 In January 2007, as part of the second-step stock conversion, we provided an additional loan to the ESOP Trust which was used to purchase 4.0 736,000 18,400,000 8.0 At December 31, 2022, the remaining principal balances are payable as follows: Years Ending December 31, Amount (In thousands) 2023 $ 447 2024 447 2025 447 2026 447 2027 447 Thereafter 1,462 Total $ 3,697 We have committed to make contributions to the ESOP sufficient to support the debt service of the loans. The loans are secured by the shares purchased, which are held in a suspense account for allocation among the participants as the loans are paid. Total compensation expense applicable to the ESOP amounted to $ 683,000 682,000 551,000 Shares held by the ESOP include the following at December 31, 2022 and 2021: 2022 2021 Allocated 1,139,325 1,127,074 Committed to be allocated 78,526 81,893 Unallocated 366,487 445,013 Total 1,584,338 1,653,980 Cash dividends declared and received on allocated shares are allocated to participants and charged to retained earnings. Cash dividends declared and received on unallocated shares are held in suspense and are applied to repay the outstanding debt of the ESOP. The fair value of unallocated shares was $ 3.5 3.9 |
RETIREMENT PLANS AND EMPLOYEE B
RETIREMENT PLANS AND EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS AND EMPLOYEE BENEFITS | 10. RETIREMENT PLANS AND EMPLOYEE BENEFITS Pension Plan 1,000 On July 26, 2022, the Board of Directors approved the termination of the DB Plan, which became effective as of October 31, 2022, subject to regulatory approvals. Once the Company has received regulatory approval to terminate the DB Plan, which is expected in the first quarter of 2023, the Company will make an additional cash contribution during the second quarter of 2023, if necessary, in order to fully fund the DB Plan on a plan termination basis, followed by the purchase of annuity contracts to transfer its remaining liabilities under the DB Plan, for those participants who do not opt for a one-time lump sum payment. At December 31, 2022, the Company reversed $ 7.3 2.8 The following table provides information for the DB Plan at or for the years ended December 31: Years Ended December 31, 2022 2021 2020 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 45,089 $ 47,592 $ 36,158 Service cost 1,108 1,842 1,396 Interest 1,254 1,171 1,162 Actuarial (gain) loss (15,518 ) (3,028 ) 9,690 Effect of curtailment (5,059 ) — — Benefits paid (2,262 ) (2,488 ) (814 ) Benefit obligation at end of year 24,612 45,089 47,592 Change in plan assets: Fair value of plan assets at beginning of year 27,702 26,264 22,787 Actual return on plan assets (5,906 ) 1,926 3,191 Employer contribution 3,600 2,000 1,100 Benefits paid (2,262 ) (2,488 ) (814 ) Fair value of plan assets at end of year 23,134 27,702 26,264 Funded status and accrued benefit at end of year $ (1,478 ) $ (17,387 ) $ (21,328 ) Accumulated benefit obligation at end of year $ 24,612 $ 34,137 $ 35,755 The following actuarial assumptions were used in determining the pension benefit obligation: December 31, 2022 2021 Discount rate 5.05 % 2.85 % Rate of compensation increase N/A 4.00 The discount rate used to determine the pension benefit obligation increased from 2.85 5.05 5.1 Net pension cost includes the following components for the years ended December 31: 2022 2021 2020 (In thousands) Service cost $ 1,108 $ 1,842 $ 1,396 Interest cost 1,254 1,171 1,162 Expected return on assets (1,712 ) (1,755 ) (1,526 ) Amortization of actuarial loss 531 910 421 Net periodic pension cost $ 1,181 $ 2,168 $ 1,453 The following actuarial assumptions were used in determining the net periodic pension cost for the years ended December 31: 2022 2021 2020 Discount rate 2.85 % 2.50 % 3.25 % Expected return on plan assets 6.50 7.00 7.00 Rate of compensation increase 4.00 4.00 4.00 The following is a summary of the DB Plan’s investments for the years ended December 31: 2022 2021 (In thousands) Pooled separate investment accounts: Fixed income $ 21,255 $ 12,896 Large U.S. equity — 7,501 International equity — 4,251 Small/mid U.S. equity — 1,228 Other 1,879 1,826 Total $ 23,134 $ 27,702 Pooled separate accounts are valued at the Net Asset Value (“NAV”) of units held by the DB Plan at year end. The NAV is used as a practical expedient to estimate fair value. This practical expedient would not be used if it was determined to be probable that the funds will sell the underlying investments for an amount different from the reported NAV. Participant transactions (purchases and sales) may occur daily. The preceding method described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the DB Plan administrators believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table summarizes the investments for which fair value is measured using NAV per share as a practical expedient for the years ended December 31, 2022 and 2021. Fair Value Unfunded Commitments Redemption Frequency (if Currently Eligible) Redemption Notice Period (In thousands) December 31, 2022 $ 23,134 n/a Daily 1 day December 31, 2021 $ 27,702 n/a Daily 1 day The defined benefit plan offers a mixture of fixed income, equity and real assets as the underlying investment structure for its retirement structure for the pension plan. In August 2022, the DB Plan’s assets were reallocated into short-and-long duration fixed income pooled separate investment accounts offered by the Custodian. In anticipation of DB Plan settlement during the second quarter of 2023, the overall investment objective is to preserve principal and protect DB Plan assets from market volatility. Prior to the DB Plan termination, the target allocation mix for the pension plan for 2022 was an equity-based investment deployment of 50 50 We estimate that the benefits to be paid from the pension plan for years ended December 31 are as follows: Year Projected Benefit Payments to (In thousands) 2023 $ 1,708 2024 1,839 2025 4,311 2026 3,914 2027 2,282 In aggregate for 2028 – 2032 10,018 401(k) Defined Contribution Plan. The Company has a 401(k) defined contribution employee benefit plan. The 401(k) plan allows eligible employees to contribute a percentage of their earnings to the plan. A portion of the employee contribution, as determined by the Compensation Committee of the Board of Directors, is matched by the Company. In 2022, 2021 and 2020, the Company’s percentage match was 50 6 The Company’s expense for the 401(k) plan match was $ 470,000 476,000 468,000 |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | 11. 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 December 31, 2022 and December 31, 2021: December 31, 2022 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Non-hedging derivatives: Loan-level swaps – dealer $ 37,767 9.8 4.42 % 3.17 % $ 6,343 Loan-level swaps – borrower 37,767 9.8 3.17 % 4.42 % (6,343 ) Total $ 75,534 $ 0 December 31, 2021 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Non-hedging derivatives: Loan-level swaps – dealer $ 16,023 11.1 1.99 % 3.76 % $ (662 ) Loan-level swaps – borrower 16,023 11.1 3.76 % 1.99 % 662 Forward starting loan-level swaps - dealer 22,390 10.5 1,030 Forward starting loan-level swaps - borrower 22,390 10.5 (1,030 ) Total $ 76,826 $ 0 At December 31, 2022, the Company had $ 75.5 76.8 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). There were no cash flow hedges on the balance sheet as of December 31, 2022 or 2021. 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 non-hedging instruments as well as our classification on the balance sheet as of December 31, 2022 and December 31, 2021. December 31, 2022 Asset Derivatives Liability Derivatives Balance Sheet Fair Value Balance Sheet Fair Value (In thousands) Derivatives not designated as hedging instruments: Interest rate swap – with customer counterparties $ 0 $ 6,343 Interest rate swap – with dealer counterparties 6,343 0 Total derivatives not designated as hedging instruments Other Assets $ 6,343 Other Liabilities $ 6,343 December 31, 2021 Asset Derivatives Liability Derivatives Balance Sheet Fair Value Balance Sheet Fair Value (In thousands) Derivatives not designated as hedging instruments: Interest rate swap – with customer counterparties $ 662 $ 1,030 Interest rate swap – with dealer counterparties 1,030 662 Total derivatives not designated as hedging instruments Other Assets $ 1,692 Other Liabilities $ 1,692 Effect of Derivative Instruments in the Consolidated Statements of Net Income and Changes in Shareholders’ Equity. The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated: Amount of Gain (Loss) Recognized in OCI on Derivative Twelve Months Ended December 31, 2022 2021 2020 (In thousands) Interest rate swaps $ — $ — $ 1,099 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 Gain Reclassified from OCI into Expense (Effective Portion) Twelve Months Ended December 31, 2022 2021 2020 (In thousands) Interest rate swaps $ — $ — $ 1,516 At December 31, 2022 and 2021, the Company did not have any outstanding cash flow hedges. Credit-risk-related Contingent Features By using derivative financial instruments, we expose ourselves to credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative is negative, we owe the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that we believe to be creditworthy and by limiting the amount of exposure to each counterparty. We have agreements with our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as well capitalized, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements. Certain of our agreements with our derivative counterparties contain provisions where if a formal administrative action by a federal or state regulatory agency occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. At December 31, 2022, we had minimum collateral posting thresholds with certain of our derivative counterparties. As of December 31, 2022, we were not required to post collateral under these agreements because we did not have any derivatives in a liability position with those counterparties. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
LEASES | 12. LEASES The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. The Company has operating leases for certain of our banking offices and ATMs. Our leases have remaining lease terms of less than one year sixteen years five-year ten years 1.5 1.6 Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,482 $ 1,525 ROU assets obtained in exchange for lease obligations: Operating leases 1,714 181 Supplemental balance sheet information related to leases was as follows: December 31, 2022 December 31, 2021 (In thousands) Operating lease ROU assets $ 9,224 $ 8,789 Operating lease liabilities $ 9,457 $ 8,964 The weighted average remaining lease term for our operating leases was 9.8 3.22 Future undiscounted lease payments for the Company’s operating lease liabilities were as follows (in thousands): Years Ending December 31, 2023 $ 1,423 2024 1,364 2025 1,280 2026 1,238 2027 983 Thereafter 4,899 Total lease payments 11,187 Less imputed interest (1,730 ) Total $ 9,457 |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY CAPITAL | 13. REGULATORY CAPITAL The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to savings and loan holding companies. Federal banking regulations require the Company and the Bank to maintain minimum amounts and ratios of total, common equity Tier 1, Tier 1 and total capital to risk-weighted assets and Tier 1 capital to average assets, as set forth in the table below. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5 At December 31, 2022, we exceeded each of the applicable regulatory capital requirements including the capital conservation buffer. As of December 31, 2022, the most recent notification from the Office of Comptroller of the Currency categorized the Bank as “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized,” the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes would change our category. Our actual capital ratios of December 31, 2022 and December 31, 2021 are also presented in the following table. Actual Minimum For Capital Adequacy Purpose Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2022 Total Capital (to Risk Weighted Assets): Consolidated $ 278,729 14.20 % $ 157,042 8.00 % N/A N/A Bank 264,795 13.50 156,904 8.00 $ 196,131 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 239,125 12.18 117,781 6.00 N/A N/A Bank 244,864 12.48 117,678 6.00 156,904 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 239,125 12.18 88,336 4.50 N/A N/A Bank 244,864 12.48 88,259 4.50 127,485 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 239,125 9.27 103,229 4.00 N/A N/A Bank 244,864 9.49 103,166 4.00 128,957 5.00 Actual Minimum For Capital Adequacy Purpose Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2021 Total Capital (to Risk Weighted Assets): Consolidated $ 261,093 14.27 % $ 146,347 8.00 % N/A N/A Bank 243,788 13.35 146,135 8.00 $ 182,669 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 221,673 12.12 109,761 6.00 N/A N/A Bank 224,001 12.26 109,601 6.00 146,135 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 221,673 12.12 82,320 4.50 N/A N/A Bank 224,001 12.26 82,201 4.50 118,735 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 221,673 8.75 101,320 4.00 N/A N/A Bank 224,001 8.86 101,101 4.00 126,377 5.00 The following is a reconciliation of our GAAP capital to regulatory Tier 1, Common Equity Tier 1 and total capital: December 31, 2022 2021 (In thousands) Consolidated GAAP capital $ 228,143 $ 223,688 Net unrealized losses on available-for-sale securities, net of tax 23,962 3,525 Unrealized loss on defined benefit pension plan, net of tax 1,080 8,789 Goodwill (12,487 ) (12,487 ) Intangible assets, net of associated deferred tax liabilities (1,573 ) (1,842 ) Tier 1 and Common Equity Tier 1 capital 239,125 221,673 Allowance for loan losses for regulatory capital 19,931 19,787 Subordinated debt 19,673 19,633 Total regulatory capital $ 278,729 $ 261,093 On October 13, 2022, the Company announced the completion of its previously authorized stock repurchase plan (the “2021 Plan”) pursuant to which the Company was authorized to repurchase up to 2.4 10 1.1 5 78,826 720,975 1,056,344 We are subject to dividend restrictions imposed by various regulators, including a limitation on the total of all dividends that the Bank may pay to the Company in any calendar year, to an amount that shall not exceed the Bank’s net income for the current year, plus its net income retained for the two previous years, without regulatory approval. At December 31, 2022, the Bank had $ 33.6 156.9 146.1 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 14. INCOME TAXES Income taxes consist of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Current tax provision: Federal $ 5,251 $ 5,061 $ 3,793 State 2,403 2,320 1,579 Total 7,654 7,381 5,372 Deferred tax provision (benefit): Federal 712 462 (1,639 ) State 376 182 (792 ) Total 1,088 644 (2,431 ) Total tax provision $ 8,742 $ 8,025 $ 2,941 The differences between the statutory federal income tax at a rate of 21% and the effective tax are summarized below: Years Ended December 31, 2022 2021 2020 (In thousands) Statutory federal income tax $ 7,272 $ 6,662 $ 2,973 Increase (decrease) resulting from: State taxes, net of federal tax benefit 2,195 1,977 622 Tax exempt income (360 ) (307 ) (337 ) Bank-owned life insurance (BOLI) (362 ) (401 ) (380 ) BOLI death benefit — (117 ) — Option exercise tax (benefit) shortfall (28 ) (15 ) 1 Other, net 25 226 62 Effective tax $ 8,742 $ 8,025 $ 2,941 Cash paid for income taxes for the years ended December 31, 2022, 2021 and 2020 was $ 7.4 6.9 5.8 The tax effects of each item that gives rise to deferred taxes are as follows: December 31, 2022 2021 (In thousands) Deferred tax assets: Net unrealized loss on available-for-sale securities $ 8,197 $ 1,160 Allowance for loan losses 5,603 5,562 Lease liability 2,658 2,520 Employee benefit and share-based compensation plans 1,027 2,409 Accrued expenses 807 624 Defined benefit plan 421 3,436 Net unrealized loss on marketable equity securities 287 85 Nonaccrual interest 211 196 Purchased mortgage servicing rights 89 140 Other 165 182 Gross deferred tax assets 19,465 16,314 Deferred tax liabilities: Lease right-of-use asset (2,593 ) (2,471 ) Deferred loan fees (708 ) (539 ) Fixed asset depreciation (675 ) (677 ) Purchase accounting adjustments, net (442 ) (523 ) Other (20 ) (12 ) Gross deferred tax liabilities (4,438 ) (4,222 ) Net deferred tax asset $ 15,027 $ 12,092 The federal income tax reserve for loan losses at the Bank’s base year is $ 9.4 150 2.6 We do not have any uncertain tax positions at December 31, 2022 or 2021 which require accrual or disclosure. We record interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2022, 2021 and 2020. Our income tax returns are subject to review and examination by federal and state tax authorities. We are currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2019 through 2022. The years open to examination by state taxing authorities vary by jurisdiction; however, no years prior to 2019 are open. |
TRANSACTIONS WITH DIRECTORS AND
TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS | 15. TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS We have had, and expect to have in the future, loans with our directors and executive officers including their affiliates. Such loans, in our opinion, do not include more than the normal risk of collectability or other unfavorable features. Following is a summary of activity for such loans: Years Ended December 31, 2022 2021 (In thousands) Balance at beginning of year $ 603 $ 695 Principal distributions 15 12 Repayments of principal (43 ) (104 ) Change in related party status (30 ) — Balance at end of year $ 545 $ 603 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Loan Commitments. In the normal course of business, various commitments and contingent liabilities are outstanding, such as standby letters of credit and commitments to extend credit with off-balance-sheet risk that are not reflected in the consolidated financial statements. Financial instruments with off-balance-sheet risk involve elements of credit, interest rate, liquidity and market risk. We do not anticipate any significant losses as a result of these transactions. The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: December 31, 2022 2021 (In thousands) Commitments to extend credit: Unused lines of credit $ 328,850 $ 326,017 Loan commitments 84,123 138,765 Existing construction loan agreements 70,516 48,235 Standby letters of credit 22,049 30,160 We use the same credit policies in making commitments and conditional obligations as for on balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Standby letters of credit are written conditional commitments that guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. At December 31, 2022 and 2021, outstanding standby letter of credit commitments totaled $ 22.0 30.2 16.4 23.4 At December 31, 2022, outstanding commitments to extend credit totaled $ 505.5 107.1 1.99 18.00 398.4 543.2 101.5 1.99 18.00 441.7 We also have risk participation agreements (“RPAs”) with another financial institution. The RPAs are a guarantee to share credit risk associated with an interest rate swap on participation loans in the event of counterparty default. As such, we accept a portion of the credit risk in order to participate in the loans and we receive a one-time fee. The interest rate swap is collateralized (generally by real estate or business assets) by us and the third party, which limits the credit risk associated with the RPAs. Per the terms of the RPAs, we must pledge collateral equal to our exposure for the interest rate swap. We monitor overall collateral as part of our off-balance sheet liability analysis, and at December 31, 2022, believe sufficient collateral is available to cover potential swap losses. In the ordinary course of business, we are party to various legal proceedings, none of which, in our opinion, will have a material effect on our consolidated financial position or results of operations. Vendor Contract. The Company entered into a long-term contractual obligation with a vendor for use of its core provider and ancillary services beginning in 2016. Total remaining contractual obligations outstanding with this vendor as of December 31, 2022 were estimated to be $ 10.7 4.9 5.8 Investment Commitments. The Bank is a limited partner in a Small Business Investment Company (“SBIC”) and committed to contribute capital of $ 3 2.7 300,000 Employment and change of control agreements. We have entered into employment and change of control agreements with certain senior officers. The initial term of the employment agreements is for three years subject to separate one-year extensions as approved by the Board of Directors at the end of each applicable fiscal year. Each employment agreement provides for minimum annual salaries, discretionary cash bonuses and other fringe benefits as well as severance benefits upon certain terminations of employment that are not for cause. The change of control agreements expire one year following a notice of non-extension and only provide for severance benefits upon certain terminations of employment that are not for cause and that are related to a change of control of the Company or the Bank. |
FAIR VALUE OF ASSETS AND LIABLI
FAIR VALUE OF ASSETS AND LIABLITIES | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABLITIES | 17. FAIR VALUE OF ASSETS AND LIABLITIES 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. Methods and assumptions for valuing our financial instruments are set forth below. Estimated fair values are calculated based on the value without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications or estimated transaction cost. Securities. Interest rate swaps. Assets and Liabilities Measured at Fair Value on a Recurring Basis. Assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2022 Level 1 Level 2 Level 3 Total Assets: (In thousands) Available-for-sale securities $ — $ 146,997 $ — $ 146,997 Marketable equity securities 6,237 — — 6,237 Interest rate swaps — 6,343 — 6,343 Total assets $ 6,237 $ 153,340 $ — $ 159,577 Liabilities: Interest rate swaps $ — $ 6,343 $ — $ 6,343 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: (In thousands) Available-for-sale securities $ — $ 194,352 $ — $ 194,352 Marketable equity securities 11,896 — — 11,896 Interest rate swaps — 1,692 — 1,692 Total assets $ 11,896 $ 196,044 $ — $ 207,940 Liabilities: Interest rate swaps $ — $ 1,692 $ — $ 1,692 There were no transfers to or from Level 1 and 2 for assets measured at fair value on a recurring basis during the years ended December 31, 2022 and 2021. Assets Measured at Fair Value on a Non-recurring Basis. We may also be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. 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 the carrying values of the related assets as of December 31, 2022. Year Ended At December 31, 2022 December 31, 2022 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired Loans $ — $ — $ 877 $ 472 The amount of impaired loans represents the carrying value, 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 December 31, 2021. Summary of Fair Values of Financial Instruments. The estimated fair values of our financial instruments are as follows: December 31, 2022 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 30,342 $ 30,342 $ — $ — $ 30,342 Securities held-to-maturity 230,168 9,162 181,788 — 190,950 Securities available-for-sale 146,997 — 146,997 — 146,997 Marketable equity securities 6,237 6,237 — — 6,237 Federal Home Loan Bank of Boston and other restricted stock 3,352 — — 3,352 3,352 Loans - net 1,971,469 — — 1,856,087 1,856,087 Accrued interest receivable 8,140 — — 8,140 8,140 Mortgage servicing rights 550 — 794 — 794 Derivative asset 6,343 — 6,343 — 6,343 Liabilities: Deposits 2,229,443 — — 2,220,405 2,220,405 Short-term borrowings 41,350 — 41,350 — 41,350 Long-term debt 1,178 — 1,094 — 1,094 Subordinated debt 19,673 — 18,132 — 18,132 Accrued interest payable 186 — — 186 186 Derivative liabilities 6,343 — 6,343 — 6,343 December 31, 2021 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 103,456 $ 103,456 $ — $ — $ 103,456 Securities held-to-maturity 222,272 9,973 209,775 — 219,748 Securities available-for-sale 194,352 — 194,352 — 194,352 Marketable equity securities 11,896 11,896 — — 11,896 Federal Home Loan Bank of Boston and other restricted stock 2,594 — — 2,594 2,594 Loans - net 1,844,929 — — 1,838,045 1,838,045 Accrued interest receivable 7,775 — — 7,775 7,775 Mortgage servicing rights 693 — 739 — 739 Derivative asset 1,692 — 1,692 — 1,692 Liabilities: Deposits 2,256,898 — — 2,256,834 2,256,834 Long-term debt 2,653 — 2,620 — 2,620 Subordinated debt 19,633 20,479 — 20,479 Accrued interest payable 191 — — 191 191 Derivative liabilities 1,692 — 1,692 — 1,692 Limitations |
SEGMENT
SEGMENT | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT | 18. SEGMENT The Company, through its bank subsidiary, provides a broad range of financial services to individuals and companies primarily in western Massachusetts and northern Connecticut. These services include commercial lending, residential lending and consumer lending, checking, savings and time deposits, cash management, and wealth management. Substantially all of the Company’s revenues, profits, and assets are derived by the Bank from banking products and services. The Company did not have any reportable segments for the years ended December 31, 2022, 2021 or 2020. |
CONDENSED PARENT COMPANY FINANC
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS | 19. CONDENSED PARENT COMPANY FINANCIAL STATEMENTS The condensed balance sheets of the parent company are as follows: December 31, 2022 2021 (In thousands) ASSETS: Cash equivalents $ 763 $ 4,083 Investment in subsidiaries 233,882 226,015 ESOP loan receivable 3,697 4,356 Other assets 13,784 13,819 TOTAL ASSETS $ 252,126 $ 248,273 LIABILITIES: ESOP loan payable $ 3,697 $ 4,356 Other liabilities 20,286 20,229 EQUITY 228,143 223,688 TOTAL LIABILITIES AND EQUITY $ 252,126 $ 248,273 The condensed statements of net income for the parent company are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) INCOME: Dividends from subsidiaries $ 8,152 $ 13,024 $ 15,812 ESOP loan interest income 349 402 457 Other income 2 1 1 Total income 8,503 13,427 16,270 OPERATING EXPENSE: Salaries and employee benefits 2,011 2,153 1,420 ESOP interest 349 402 457 Other expenses 1,283 998 406 Total operating expense 3,643 3,553 2,283 Income before equity in undistributed income of subsidiaries and income taxes 4,860 9,874 13,987 Equity in undistributed income (loss) of subsidiaries 20,595 13,009 (3,123 ) Net income before taxes 25,455 22,883 10,864 Income tax benefit (432 ) (816 ) (351 ) Net income $ 25,887 $ 23,699 $ 11,215 The condensed statements of cash flows of the parent company are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) OPERATING ACTIVITIES: Net income $ 25,887 $ 23,699 $ 11,215 Equity in undistributed (income) loss of subsidiaries (20,595 ) (13,009 ) 3,123 Net amortization of premiums on subordinated debt 40 27 — Change in other liabilities (642 ) (353 ) (672 ) Change in other assets 694 (142 ) 335 Other, net 1,757 1,989 1,385 Net cash provided by operating activities 7,141 12,211 15,386 INVESTING ACTIVITIES: Purchase of securities (107 ) (105 ) (122 ) Sales of securities 107 105 122 Net cash provided by investing activities — — — FINANCING ACTIVITIES: Cash dividends paid (5,281 ) (4,677 ) (5,037 ) Common stock repurchased (6,351 ) (23,281 ) (10,519 ) Proceeds from issuance of subordinated debt — 20,000 — Payment of subordinated debt issue costs — (394 ) — Issuance of common stock in connection with stock option exercises 1,171 193 43 Net cash used in financing activities (10,461 ) (8,159 ) (15,513 ) NET CHANGE IN CASH AND CASH EQUIVALENTS (3,320 ) 4,052 (127 ) CASH AND CASH EQUIVALENTS Beginning of year 4,083 31 158 End of year $ 763 $ 4,083 $ 31 Supplemental cash flow information: Net change in due to broker for common stock repurchased $ — $ (160 ) $ 160 |
SUMMARY OF QUARTERLY FINANCIAL
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 20. SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following tables present a summary of our quarterly financial information for the periods indicated. 2022 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest and dividend income $ 19,943 $ 20,646 $ 21,754 $ 23,585 Interest expense 1,245 1,254 1,466 2,731 Net interest and dividend income 18,698 19,392 20,288 20,854 (Credit) provision for loan losses (425 ) 300 675 150 Loss on available-for-sale securities, net (4 ) — — — Unrealized (losses) gains on marketable equity securities, net (276 ) (225 ) (235 ) 19 Gain on non-marketable equity investments — 141 211 70 Gain on defined benefit plan curtailment (1) — — — 2,807 (1) Gain on sale of mortgages 2 — — — Other non-interest income 2,626 2,825 2,614 2,757 Non-interest income 2,348 2,741 2,590 5,653 Non-interest expense 14,456 14,433 14,343 14,003 Income before income taxes 7,015 7,400 7,860 12,354 Income tax provision 1,696 1,865 1,861 3,320 Net income $ 5,319 $ 5,535 $ 5,999 $ 9,034 Basic earnings per share $ 0.24 $ 0.25 $ 0.28 $ 0.42 Diluted earnings per share $ 0.24 $ 0.25 $ 0.28 $ 0.42 (1) The increase in non-interest income for the three months ended December 31, 2022 was due to a $ 2.8 2021 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest and dividend income $ 20,033 $ 19,652 $ 20,238 $ 19,926 Interest expense 2,007 1,848 1,473 1,344 Net interest and dividend income 18,026 17,804 18,765 18,582 Provision (credit) for loan losses 75 (1,200 ) (100 ) 300 (Loss) gain on available-for-sale securities, net (62 ) (12 ) 2 — Unrealized (losses) gains on marketable equity securities, net (89 ) 6 11 (96 ) Loss on interest rate swap termination — (402 ) — — Gain on non-marketable equity investments 546 — — 352 BOLI death benefit — — — 555 Gain on sale of mortgages 227 242 665 289 Other non-interest income 2,382 2,575 2,617 2,756 Non-interest income 3,004 2,409 3,295 3,856 Non-interest expense 13,327 13,674 14,018 13,923 Income before income taxes 7,628 7,739 8,142 8,215 Income tax provision 1,837 2,087 2,106 1,995 Net income $ 5,791 $ 5,652 $ 6,036 $ 6,220 Basic earnings per share $ 0.24 $ 0.24 $ 0.27 $ 0.28 Diluted earnings per share $ 0.24 $ 0.24 $ 0.27 $ 0.28 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The Bank operates 25 |
Wholly-owned Subsidiaries | Wholly-owned Subsidiaries |
Principles of Consolidation | Principles of Consolidation |
Estimates | Estimates |
Reclassifications | Reclassifications |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Securities and Mortgage-Backed Securities | Securities and Mortgage-Backed Securities Realized gains and losses on sales of securities and mortgage-backed securities are computed using the specific identification method and are included in non-interest income on the trade date. The amortization of premiums and accretion of discounts are determined by using the level yield method to the maturity date, except that premiums are amortized to the earliest call date or maturity. |
Non-marketable Equity Securities | Non-marketable Equity Securities |
Derivatives | Derivatives |
Other-than-Temporary Impairment of Securities | Other-than-Temporary Impairment of Securities |
Fair Value Hierarchy | Fair Value Hierarchy Level 1: Level 2: Level 3: |
Federal Home Loan Bank of Boston Stock | Federal Home Loan Bank of Boston Stock |
Loans Held for Sale | Loans Held for Sale |
Loans Receivable | Loans Receivable |
Allowance for Loan Losses | Allowance for Loan Losses 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. In 2020, the Bank added a new qualitative factor category to the allowance calculation – “Economic Impact of COVID-19” based upon an analysis of the loan portfolio that included identifying borrowers sensitive to the shutdown. During the year ended December 31, 2021, the qualitative adjustment factors related to the COVID-19 pandemic and the uncertainty in the economic environment were reduced as Management continued to assess the exposure of the Company’s loan portfolio to the COVID-19 pandemic related factors, economic trends and their potential effect on asset quality. There were no changes to the Company’s policies and procedures surrounding the allowance for loan losses during the year ended December 31, 2022. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each loan portfolio segment are as follows: Commercial real estate loans Residential real estate loans 97 90 85 80 85 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. We may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired. While we use our best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. 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 reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. |
Loans Acquired with Deteriorated Credit Quality | Loans Acquired with Deteriorated Credit Quality |
Bank-owned Life Insurance | Bank-owned Life Insurance |
Transfers and Servicing of Financial Assets | Transfers and Servicing of Financial Assets |
Premises and Equipment | Premises and Equipment The estimated useful lives of the assets are as follows: Years Buildings 39 Leasehold Improvements 5 20 Furniture and Equipment 3 7 The cost of maintenance and repairs is charged to expense when incurred. Major expenditures for betterments are capitalized and depreciated. |
Other Real Estate Owned | Other Real Estate Owned |
Servicing | Servicing Servicing fee income is recorded for fees earned for servicing loans, which is included in service charges and fee income. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Goodwill is measured as the excess of the cost of a business combination over the sum of the amounts assigned to identifiable intangible assets acquired less liabilities assumed. Goodwill is not amortized but rather assessed for impairment annually or more frequently if circumstances warrant. Management has the option of first assessing qualitative factors, such as events and circumstances, to determine whether it is more likely than not, meaning a likelihood of more than 50%, the value of a reporting unit is less than its carrying amount. If, after considering all relevant events and circumstances, management determines it is not more likely than not the fair value of a reporting unit is less than its carrying amount, then performing an impairment test is unnecessary. For the year ended December 31, 2022, management determined that it was not more likely than not the fair value of the reporting unit (the consolidated Company, in our case) was less than its carrying amount. If management had determined otherwise, a fair value analysis would have been completed to determine the impairment and necessary write-down of goodwill. |
Retirement Plans and Employee Benefits | Retirement Plans and Employee Benefits 50 6 |
Share-based Compensation Plans | Share-based Compensation Plans |
Employee Stock Ownership Plan | Employee Stock Ownership Plan |
Leases | Leases other assets other liabilities |
Advertising Costs | Advertising Costs |
Income Taxes | Income Taxes |
Earnings per Share | Earnings per Share Earnings per common share have been computed based on the following: Years Ended December 31, 2022 2021 2020 (In thousands, except per share data) Net income applicable to common stock $ 25,887 $ 23,699 $ 11,215 Average number of common shares issued 22,451 23,849 25,751 Less: Average unallocated ESOP Shares (415 ) (496 ) (580 ) Less: Average unvested equity incentive plan shares (156 ) (129 ) (124 ) Average number of common shares outstanding used to calculate basic earnings per common share 21,880 23,224 25,047 Effect of dilutive equity incentive plan 42 36 — Effect of dilutive stock options 17 41 15 Average number of common shares outstanding used to calculate diluted earnings per common share 21,939 23,301 25,062 Basic earnings per share $ 1.18 $ 1.02 $ 0.45 Diluted earnings per share $ 1.18 $ 1.02 $ 0.45 Anti-dilutive shares (1) — — 259 (1) Shares outstanding but not included because the impact of these shares would be anti-dilutive to the earnings per share calculation for the period presented. |
Comprehensive Income (Loss) | 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: December 31, 2022 December 31, 2021 (In thousands) Net unrealized losses on available-for-sale securities $ (32,159 ) $ (4,685 ) Tax effect 8,197 1,160 Net-of-tax amount (23,962 ) (3,525 ) Unrecognized actuarial loss on the defined benefit plan (1,501 ) (12,225 ) Tax effect 421 3,436 Net-of-tax amount (1,080 ) (8,789 ) Accumulated other comprehensive loss $ (25,042 ) $ (12,314 ) |
Recent Accounting Pronouncements. | Recent Accounting Pronouncements. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13 Financial Instruments—Credit Losses The adoption of the Current Expected Credit (“CECL”) methodology to calculate loan losses became effective for the Company on January 1, 2023 January 1, 2023 9,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
The estimated useful lives of the assets are as follows: | The estimated useful lives of the assets are as follows: Years Buildings 39 Leasehold Improvements 5 20 Furniture and Equipment 3 7 |
Earnings per common share have been computed based on the following: | Earnings per common share have been computed based on the following: Years Ended December 31, 2022 2021 2020 (In thousands, except per share data) Net income applicable to common stock $ 25,887 $ 23,699 $ 11,215 Average number of common shares issued 22,451 23,849 25,751 Less: Average unallocated ESOP Shares (415 ) (496 ) (580 ) Less: Average unvested equity incentive plan shares (156 ) (129 ) (124 ) Average number of common shares outstanding used to calculate basic earnings per common share 21,880 23,224 25,047 Effect of dilutive equity incentive plan 42 36 — Effect of dilutive stock options 17 41 15 Average number of common shares outstanding used to calculate diluted earnings per common share 21,939 23,301 25,062 Basic earnings per share $ 1.18 $ 1.02 $ 0.45 Diluted earnings per share $ 1.18 $ 1.02 $ 0.45 Anti-dilutive shares (1) — — 259 (1) Shares outstanding but not included because the impact of these shares would be anti-dilutive to the earnings per share calculation for the period presented. |
The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows: | The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows: December 31, 2022 December 31, 2021 (In thousands) Net unrealized losses on available-for-sale securities $ (32,159 ) $ (4,685 ) Tax effect 8,197 1,160 Net-of-tax amount (23,962 ) (3,525 ) Unrecognized actuarial loss on the defined benefit plan (1,501 ) (12,225 ) Tax effect 421 3,436 Net-of-tax amount (1,080 ) (8,789 ) Accumulated other comprehensive loss $ (25,042 ) $ (12,314 ) |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale and held-to-maturity investment securities at December 31, 2022 and 2021 are summarized as follows: | Available-for-sale and held-to-maturity investment securities at December 31, 2022 and 2021 are summarized as follows: December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 14,913 $ — $ (3,345 ) $ 11,568 State and municipal bonds 270 — — 270 Corporate bonds 8,012 — (519 ) 7,493 Total debt securities 23,195 — (3,864 ) 19,331 Mortgage-backed securities: Government-sponsored mortgage-backed securities 148,544 — (26,826 ) 121,718 U.S. government guaranteed mortgage-backed securities 7,417 — (1,469 ) 5,948 Total mortgage-backed securities 155,961 — (28,295 ) 127,666 Total available-for-sale 179,156 — (32,159 ) 146,997 Held-to-maturity securities: Debt securities: U.S. Treasury securities 9,987 — (825 ) 9,162 Total debt securities 9,987 — (825 ) 9,162 Mortgage-backed securities: Government-sponsored mortgage-backed securities 220,181 67 (38,460 ) 181,788 Total mortgage-backed securities 220,181 67 (38,460 ) 181,788 Total held-to-maturity 230,168 67 (39,285 ) 190,950 Total $ 409,324 $ 67 $ (71,444 ) $ 337,947 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 14,902 $ — $ (676 ) $ 14,226 State and municipal bonds 405 1 — 406 Corporate bonds 3,026 86 — 3,112 Total debt securities 18,333 87 (676 ) 17,744 Mortgage-backed securities: Government-sponsored mortgage-backed securities 171,011 427 (3,929 ) 167,509 U.S. government guaranteed mortgage-backed securities 9,693 8 (602 ) 9,099 Total mortgage-backed securities 180,704 435 (4,531 ) 176,608 Total available-for-sale 199,037 522 (5,207 ) 194,352 Held-to-maturity securities: Debt securities: U.S. Treasury securities 9,979 — (6 ) 9,973 Total debt securities 9,979 — (6 ) 9,973 Mortgage-backed securities: Government-sponsored mortgage-backed securities 212,293 — (2,518 ) 209,775 Total mortgage-backed securities 212,293 — (2,518 ) 209,775 Total held-to-maturity 222,272 — (2,524 ) 219,748 Total $ 421,309 $ 522 $ (7,731 ) $ 414,100 |
The following table presents the unrealized gains (losses) recognized on marketable equity securities for the periods indicated: | The following table presents the unrealized gains (losses) recognized on marketable equity securities for the periods indicated: Years Ended December 31, 2022 2021 2020 (In thousands) Net (losses) gains recognized during the year on marketable equity securities $ (717 ) $ (168 ) $ 109 Net losses recognized during the year on equity securities sold during the year 1,021 — — Unrealized gain (loss) recognized during the year on marketable equity securities still held at year end $ 304 $ (168 ) $ 109 |
The amortized cost and fair value of available-for-sale and held-to-maturity securities at December 31, 2022, by final maturity, are shown below. | The amortized cost and fair value of available-for-sale and held-to-maturity securities at December 31, 2022, by final maturity, are shown below. Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Debt securities: Due after one year through five years $ 3,282 $ 3,188 $ 9,987 $ 9,162 Due after five years through ten years 14,913 12,567 — — Due after ten years 5,000 3,576 — — Total debt securities $ 23,195 $ 19,331 $ 9,987 $ 9,162 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Mortgage-backed securities: Due after one year through five years $ 564 $ 530 $ — $ — Due after five years through ten years 1,088 989 — — Due after ten years 154,309 126,147 220,181 181,788 Total mortgage-backed securities 155,961 127,666 220,181 181,788 Total securities $ 179,156 $ 146,997 $ 230,168 $ 190,950 |
Gross realized gains and losses on sales of available-for-sale securities for the years ended December 31, 2022, 2021 and 2020 are as follows: | Gross realized gains and losses on sales of available-for-sale securities for the years ended December 31, 2022, 2021 and 2020 are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Gross gains realized $ — $ 12 $ 2,188 Gross losses realized (4 ) (84 ) (223 ) Net (loss) gain realized $ (4 ) $ (72 ) $ 1,965 |
Information pertaining to securities with gross unrealized losses at December 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: | Information pertaining to securities with gross unrealized losses at December 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: December 31, 2022 Less Than Twelve Months Over Twelve Months Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Available-for-sale: Government-sponsored mortgage-backed securities 10 $ 9,133 $ 776 7.8 % 60 $ 112,586 $ 26,050 18.8 % U.S. government guaranteed mortgage-backed securities 1 113 20 15.0 8 5,835 1,449 19.9 Government-sponsored enterprise obligations — — — — 3 11,568 3,345 22.4 Corporate bonds 3 7,493 519 6.5 — — — — Total available-for-sale 14 16,739 1,315 71 129,989 30,844 Held-to-maturity: U.S. Treasury securities — — — — % 2 9,162 825 8.3 % Government-sponsored mortgage-backed securities 6 18,911 2,116 10.1 31 157,947 36,344 18.7 Total held-to-maturity 6 18,911 2,116 33 167,109 37,169 Total 20 $ 35,650 $ 3,431 104 $ 297,098 $ 68,013 December 31, 2021 Less Than Twelve Months Over Twelve Months Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Available-for-sale: Government-sponsored mortgage-backed securities 34 $ 105,221 $ 2,088 2.0 % 18 $ 42,506 $ 1,841 4.5 % U.S. government guaranteed mortgage-backed securities 2 2,426 142 6.2 5 5,107 460 9.9 Government-sponsored enterprise obligations — — — — 3 14,226 676 5.0 Total available-for-sale 36 107,647 2,230 26 61,839 2,977 Held-to-maturity: U.S. Treasury securities 2 9,973 6 0.1 % — — — — % Government-sponsored mortgage-backed securities 31 209,775 2,518 1.2 — — — — Total held-to-maturity 33 219,748 2,524 — — — Total 69 $ 327,395 $ 4,754 26 $ 61,839 $ 2,977 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Major classifications of loans as of the dates indicated were as follows: | Major classifications of loans as of the dates indicated were as follows: December 31, December 31, 2022 2021 (In thousands) Commercial real estate $ 1,069,323 $ 979,969 Residential real estate: Residential one-to-four family 589,503 552,332 Home equity 105,557 99,759 Total residential real estate 695,060 652,091 Commercial and industrial: Paycheck protection program (“PPP”) loans 2,274 25,329 Commercial and industrial 217,574 201,340 Total commercial and industrial 219,848 226,669 Consumer 5,045 4,250 Total gross loans 1,989,276 1,862,979 Unamortized PPP loan fees (109 ) (781 ) Unearned premiums and deferred loan fees and costs, net 2,233 2,518 Total loans, net 1,991,400 1,864,716 Allowance for loan losses (19,931 ) (19,787 ) Net loans $ 1,971,469 $ 1,844,929 |
A summary of the activity in the balances of mortgage servicing rights follows: | A summary of the activity in the balances of mortgage servicing rights follows: Years Ended December 31, 2022 2021 (In thousands) Balance at the beginning of year: $ 693 $ 153 Capitalized mortgage servicing rights 2 628 Amortization (145 ) (86 ) Write-down of mortgage servicing asset to fair value — (2 ) Balance at the end of year $ 550 $ 693 Fair value at the end of year $ 794 $ 739 |
An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2022, 2021 and 2020 is as follows: | An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2022, 2021 and 2020 is as follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) Balance at December 31, 2019 $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Provision 6,262 408 939 129 37 7,775 Charge-offs (107 ) (177 ) (543 ) (136 ) — (963 ) Recoveries 58 89 51 45 — 243 Balance at December 31, 2020 $ 13,020 $ 4,240 $ 3,630 $ 241 $ 26 $ 21,157 Provision (credit) 46 (349 ) (644 ) 35 (13 ) (925 ) Charge-offs (103 ) (44 ) (370 ) (128 ) — (645 ) Recoveries 7 117 27 49 — 200 Balance at December 31, 2021 $ 12,970 $ 3,964 $ 2,643 $ 197 $ 13 $ 19,787 Provision (credit) (434 ) 344 586 202 2 700 Charge-offs (337 ) (28 ) (92 ) (216 ) — (673 ) Recoveries — 32 23 62 — 117 Balance at December 31, 2022 $ 12,199 $ 4,312 $ 3,160 $ 245 $ 15 $ 19,931 |
The following table presents information pertaining to the allowance for loan losses by segment as of the dates indicated: | The following table presents information pertaining to the allowance for loan losses by segment as of the dates indicated: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) December 31, 2022 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 12,199 4,312 3,160 245 15 19,931 Total allowance for loan losses $ 12,199 $ 4,312 $ 3,160 $ 245 $ 15 $ 19,931 Impaired loans $ 9,178 $ 3,623 $ 407 $ — $ — $ 13,208 Non-impaired loans 1,056,886 689,776 219,163 5,045 — 1,970,870 Impaired loans acquired with deteriorated credit quality 3,259 1,661 278 — — 5,198 Total loans $ 1,069,323 $ 695,060 $ 219,848 $ 5,045 $ — $ 1,989,276 Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total December 31, 2021 (1) Amount of allowance for impaired loans (1) $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans (1) 12,970 3,964 2,643 197 13 19,787 Total allowance for loan losses (1) $ 12,970 $ 3,964 $ 2,643 $ 197 $ 13 $ 19,787 Impaired loans (1) $ 9,601 $ 3,223 $ 699 $ 22 $ — $ 13,545 Non-impaired loans (1) 965,577 647,098 200,271 4,228 — 1,817,174 Impaired loans acquired with deteriorated credit quality (1) 4,791 1,770 370 — — 6,931 Total loans (1) $ 979,969 $ 652,091 $ 201,340 $ 4,250 $ — $ 1,837,650 (1) December 31, 2021 non-impaired loan balances exclude PPP loans. |
The following tables present an age analysis of past due loans as of the dates indicated: | The following tables present an age analysis of past due loans as of the dates indicated: 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Total Current Loans Total Loans Nonaccrual Loans (In thousands) December 31, 2022 Commercial real estate $ — $ 211 $ 1,404 $ 1,615 $ 1,067,708 $ 1,069,323 $ 1,933 Residential real estate: Residential one-to-four family 1,768 100 414 2,282 587,221 589,503 3,290 Home equity 209 97 51 357 105,200 105,557 181 Commercial and industrial 170 10 22 202 219,646 219,848 290 Consumer 13 — — 13 5,032 5,045 — Total loans $ 2,160 $ 418 $ 1,891 $ 4,469 $ 1,984,807 $ 1,989,276 $ 5,694 December 31, 2021 (1) Commercial real estate $ 139 $ — $ 436 $ 575 $ 979,394 $ 979,969 $ 1,224 Residential real estate: Residential one-to-four family 787 41 507 1,335 550,997 552,332 3,214 Home equity 57 5 63 125 99,634 99,759 94 Commercial and industrial 58 10 22 90 201,250 201,340 410 Consumer 5 — 11 16 4,234 4,250 22 Total loans $ 1,046 $ 56 $ 1,039 $ 2,141 $ 1,835,509 $ 1,837,650 $ 4,964 (1) December 31, 2021 balances exclude PPP loans. |
The following is a summary of impaired loans by class: | The following is a summary of impaired loans by class: Year Ended At December 31, 2022 December 31, 2022 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired Loans (1) (In thousands) Commercial real estate $ 12,437 $ 13,795 $ — $ 13,427 $ 248 Residential real estate: Residential one-to-four family 5,088 5,823 — 4,792 59 Home equity 196 214 — 172 1 Commercial and industrial 685 3,095 — 891 66 Consumer — — — 3 — Total impaired loans $ 18,406 $ 22,927 $ — $ 19,285 $ 374 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. Year Ended At December 31, 2021 December 31, 2021 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired Loans (1) (In thousands) Commercial real estate $ 14,392 $ 15,563 $ — $ 15,757 $ 469 Residential real estate: Residential one-to-four family 4,881 5,381 — 5,693 233 Home equity 112 136 — 146 7 Commercial and industrial 1,069 3,850 — 2,551 131 Consumer 22 37 — 25 3 Total impaired loans $ 20,476 $ 24,967 $ — $ 24,172 $ 843 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. |
The following is a summary of loans acquired with evidence of credit deterioration from Chicopee as of December 31, 2022. | The following is a summary of loans acquired with evidence of credit deterioration from Chicopee as of December 31, 2022. Contractual Required Payments Receivable Cash Expected To Be Collected Non-Accretable Discount Accretable Yield Loans Receivable (In thousands) Balance at December 31, 2021 $ 12,134 $ 9,430 $ 2,704 $ 2,499 $ 6,931 Collections (1,792 ) (1,576 ) (216 ) (213 ) (1,363 ) Dispositions (589 ) (439 ) (150 ) (69 ) (370 ) Balance at December 31, 2022 $ 9,753 $ 7,415 $ 2,338 $ 2,217 $ 5,198 |
The following table presents our loans by risk rating for the periods indicated: | The following table presents our loans by risk rating for the periods indicated: Commercial Real Estate Residential One-to-Four Family Home Equity Commercial and Industrial Consumer Total (In thousands) December 31, 2022 Pass (Rated 1 – 4) $ 1,036,337 $ 585,292 $ 105,248 $ 193,415 $ 5,027 $ 1,925,319 Special Mention (Rated 5) 16,035 — — 5,623 — 21,658 Substandard (Rated 6) 16,951 4,211 309 20,810 18 42,299 Total $ 1,069,323 $ 589,503 $ 105,557 $ 219,848 $ 5,045 $ 1,989,276 Commercial Real Estate Residential One-to-Four Family Home Equity Commercial and Industrial Consumer Total December 31, 2021 (In thousands) Pass (Rated 1 – 4) $ 913,063 $ 547,980 $ 99,503 $ 215,605 $ 4,228 $ 1,780,379 Special Mention (Rated 5) 48,765 — — 2,777 — 51,542 Substandard (Rated 6) 18,141 4,352 256 8,287 22 31,058 Total $ 979,969 $ 552,332 $ 99,759 $ 226,669 $ 4,250 $ 1,862,979 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and equipment are summarized as follows: | Premises and equipment are summarized as follows: December 31, 2022 2021 (In thousands) Land $ 6,239 $ 6,239 Buildings 26,738 26,343 Leasehold improvements 3,472 3,409 Furniture and equipment 21,880 21,195 Total 58,329 57,186 Less: accumulated depreciation and amortization (33,376 ) (31,024 ) Premises and equipment, net $ 24,953 $ 26,162 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposit Assets [Abstract] | |
Deposit accounts, by type, are summarized as follows for the periods indicated: | Deposit accounts, by type, are summarized as follows for the periods indicated: At December 31, 2022 2021 (In thousands) Demand and interest-bearing checking: Interest-bearing checking accounts $ 148,670 $ 145,739 Demand deposits 645,571 641,284 Savings: Regular savings accounts 222,436 217,565 Money market accounts 801,076 850,330 Time deposits 411,690 401,980 Total deposits $ 2,229,443 $ 2,256,898 |
The scheduled maturities of time deposits for the periods indicated are as follows: | The scheduled maturities of time deposits for the periods indicated are as follows: At December 31, 2022 2021 (In thousands) 2022 $ — $ 363,290 2023 288,697 24,500 2024 114,244 7,911 2025 4,873 4,892 2026 3,780 1,387 2027 96 — Total time deposits $ 411,690 $ 401,980 |
Interest expense on deposits for the years ended December 31, 2022, 2021 and 2020 is summarized as follows: | Interest expense on deposits for the years ended December 31, 2022, 2021 and 2020 is summarized as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Regular accounts $ 161 $ 154 $ 136 Money market accounts 3,187 2,412 2,838 Time deposits 1,474 2,543 10,139 Interest-bearing checking accounts 530 399 387 Total $ 5,352 $ 5,508 $ 13,500 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
The following advances are collateralized by a blanket lien on our residential real estate loans and certain eligible commercial real estate loans. | FHLB Advances. The following advances are collateralized by a blanket lien on our residential real estate loans and certain eligible commercial real estate loans. Amount Weighted Average Rate 2022 2021 2022 2021 (In thousands) Fixed-rate advances maturing: 2022 $ — $ 1,475 — % 0.1 % 2023 532 532 — — 2024 646 646 — — 2025 — — — — Total long-term advances $ 1,178 $ 2,653 — % 0.1 % |
STOCK PLANS AND EMPLOYEE STOC_2
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
A summary of the status of our stock options at December 31, 2022 is presented below: | Stock Options. A summary of the status of our stock options at December 31, 2022 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2021 177,881 $ 6.57 0.81 $ 388 Exercised (177,881 ) 6.58 0.33 430 Outstanding at December 31, 2022 — $ — — $ — |
The threshold, target and stretch metrics under the 2020 grants are as follows: | 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 |
The threshold, target and stretch metrics under the 2021 grants are as follows: | The threshold, target and stretch metrics under the 2021 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2021 5.63 % 6.25 % 7.50 % December 31, 2022 5.85 % 6.50 % 7.80 % December 31, 2023 6.08 % 6.75 % 8.10 % Earnings Per Share Metrics Performance Period Ending Threshold Target Stretch Three-year Cumulative Diluted Earnings Per Share $ 1.58 $ 1.97 $ 2.36 |
The threshold, target and stretch metrics under the 2022 grants are as follows: | The threshold, target and stretch metrics under the 2022 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2022 7.79 % 8.20 % 8.61 % December 31, 2023 7.93 % 8.35 % 8.77 % December 31, 2024 8.03 % 8.45 % 8.87 % Earnings Per Share Metrics Performance Period Ending Threshold Target Stretch Three-year Cumulative Diluted Earnings Per Share $ 2.35 $ 2.61 $ 2.85 |
A summary of the status of restricted stock awards at December 31, 2022 and 2021 is presented below: | A summary of the status of restricted stock awards at December 31, 2022 and 2021 is presented below: Shares Weighted Average Balance at December 31, 2021 213,381 $ 8.91 Shares granted 144,440 9.14 Shares forfeited (24,440 ) 8.73 Shares vested (127,289 ) 9.32 Balance at December 31, 2022 206,092 $ 8.85 Shares Weighted Average Grant Date Fair Value Balance at December 31, 2020 178,766 $ 9.63 Shares granted 154,906 8.44 Shares forfeited (24,506 ) 10.59 Shares vested (95,785 ) 9.05 Balance at December 31, 2021 213,381 $ 8.91 |
At December 31, 2022, the remaining principal balances are payable as follows: | At December 31, 2022, the remaining principal balances are payable as follows: Years Ending December 31, Amount (In thousands) 2023 $ 447 2024 447 2025 447 2026 447 2027 447 Thereafter 1,462 Total $ 3,697 |
Shares held by the ESOP include the following at December 31, 2022 and 2021: | Shares held by the ESOP include the following at December 31, 2022 and 2021: 2022 2021 Allocated 1,139,325 1,127,074 Committed to be allocated 78,526 81,893 Unallocated 366,487 445,013 Total 1,584,338 1,653,980 |
RETIREMENT PLANS AND EMPLOYEE_2
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
The following table provides information for the DB Plan at or for the years ended December 31: | The following table provides information for the DB Plan at or for the years ended December 31: Years Ended December 31, 2022 2021 2020 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 45,089 $ 47,592 $ 36,158 Service cost 1,108 1,842 1,396 Interest 1,254 1,171 1,162 Actuarial (gain) loss (15,518 ) (3,028 ) 9,690 Effect of curtailment (5,059 ) — — Benefits paid (2,262 ) (2,488 ) (814 ) Benefit obligation at end of year 24,612 45,089 47,592 Change in plan assets: Fair value of plan assets at beginning of year 27,702 26,264 22,787 Actual return on plan assets (5,906 ) 1,926 3,191 Employer contribution 3,600 2,000 1,100 Benefits paid (2,262 ) (2,488 ) (814 ) Fair value of plan assets at end of year 23,134 27,702 26,264 Funded status and accrued benefit at end of year $ (1,478 ) $ (17,387 ) $ (21,328 ) Accumulated benefit obligation at end of year $ 24,612 $ 34,137 $ 35,755 |
The following actuarial assumptions were used in determining the pension benefit obligation: | The following actuarial assumptions were used in determining the pension benefit obligation: December 31, 2022 2021 Discount rate 5.05 % 2.85 % Rate of compensation increase N/A 4.00 |
Net pension cost includes the following components for the years ended December 31: | Net pension cost includes the following components for the years ended December 31: 2022 2021 2020 (In thousands) Service cost $ 1,108 $ 1,842 $ 1,396 Interest cost 1,254 1,171 1,162 Expected return on assets (1,712 ) (1,755 ) (1,526 ) Amortization of actuarial loss 531 910 421 Net periodic pension cost $ 1,181 $ 2,168 $ 1,453 |
The following actuarial assumptions were used in determining the net periodic pension cost for the years ended December 31: | The following actuarial assumptions were used in determining the net periodic pension cost for the years ended December 31: 2022 2021 2020 Discount rate 2.85 % 2.50 % 3.25 % Expected return on plan assets 6.50 7.00 7.00 Rate of compensation increase 4.00 4.00 4.00 |
The following is a summary of the DB Plan’s investments for the years ended December 31: | The following is a summary of the DB Plan’s investments for the years ended December 31: 2022 2021 (In thousands) Pooled separate investment accounts: Fixed income $ 21,255 $ 12,896 Large U.S. equity — 7,501 International equity — 4,251 Small/mid U.S. equity — 1,228 Other 1,879 1,826 Total $ 23,134 $ 27,702 |
The following table summarizes the investments for which fair value is measured using NAV per share as a practical expedient for the years ended December 31, 2022 and 2021. | The following table summarizes the investments for which fair value is measured using NAV per share as a practical expedient for the years ended December 31, 2022 and 2021. Fair Value Unfunded Commitments Redemption Frequency (if Currently Eligible) Redemption Notice Period (In thousands) December 31, 2022 $ 23,134 n/a Daily 1 day December 31, 2021 $ 27,702 n/a Daily 1 day |
We estimate that the benefits to be paid from the pension plan for years ended December 31 are as follows: | We estimate that the benefits to be paid from the pension plan for years ended December 31 are as follows: Year Projected Benefit Payments to (In thousands) 2023 $ 1,708 2024 1,839 2025 4,311 2026 3,914 2027 2,282 In aggregate for 2028 – 2032 10,018 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
The following table presents information about interest rate swaps at December 31, 2022 and December 31, 2021: | The following table presents information about interest rate swaps at December 31, 2022 and December 31, 2021: December 31, 2022 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Non-hedging derivatives: Loan-level swaps – dealer $ 37,767 9.8 4.42 % 3.17 % $ 6,343 Loan-level swaps – borrower 37,767 9.8 3.17 % 4.42 % (6,343 ) Total $ 75,534 $ 0 December 31, 2021 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Non-hedging derivatives: Loan-level swaps – dealer $ 16,023 11.1 1.99 % 3.76 % $ (662 ) Loan-level swaps – borrower 16,023 11.1 3.76 % 1.99 % 662 Forward starting loan-level swaps - dealer 22,390 10.5 1,030 Forward starting loan-level swaps - borrower 22,390 10.5 (1,030 ) Total $ 76,826 $ 0 |
The table below presents the fair value of our derivative financial instruments designated as non-hedging instruments as well as our classification on the balance sheet as of December 31, 2022 and December 31, 2021. | The table below presents the fair value of our derivative financial instruments designated as non-hedging instruments as well as our classification on the balance sheet as of December 31, 2022 and December 31, 2021. December 31, 2022 Asset Derivatives Liability Derivatives Balance Sheet Fair Value Balance Sheet Fair Value (In thousands) Derivatives not designated as hedging instruments: Interest rate swap – with customer counterparties $ 0 $ 6,343 Interest rate swap – with dealer counterparties 6,343 0 Total derivatives not designated as hedging instruments Other Assets $ 6,343 Other Liabilities $ 6,343 December 31, 2021 Asset Derivatives Liability Derivatives Balance Sheet Fair Value Balance Sheet Fair Value (In thousands) Derivatives not designated as hedging instruments: Interest rate swap – with customer counterparties $ 662 $ 1,030 Interest rate swap – with dealer counterparties 1,030 662 Total derivatives not designated as hedging instruments Other Assets $ 1,692 Other Liabilities $ 1,692 |
The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated: | The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated: Amount of Gain (Loss) Recognized in OCI on Derivative Twelve Months Ended December 31, 2022 2021 2020 (In thousands) Interest rate swaps $ — $ — $ 1,099 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 Gain Reclassified from OCI into Expense (Effective Portion) Twelve Months Ended December 31, 2022 2021 2020 (In thousands) Interest rate swaps $ — $ — $ 1,516 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Supplemental cash flow information related to leases was as follows: | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,482 $ 1,525 ROU assets obtained in exchange for lease obligations: Operating leases 1,714 181 |
Supplemental balance sheet information related to leases was as follows: | Supplemental balance sheet information related to leases was as follows: December 31, 2022 December 31, 2021 (In thousands) Operating lease ROU assets $ 9,224 $ 8,789 Operating lease liabilities $ 9,457 $ 8,964 |
Future undiscounted lease payments for the Company’s operating lease liabilities were as follows (in thousands): | The weighted average remaining lease term for our operating leases was 9.8 3.22 Future undiscounted lease payments for the Company’s operating lease liabilities were as follows (in thousands): Years Ending December 31, 2023 $ 1,423 2024 1,364 2025 1,280 2026 1,238 2027 983 Thereafter 4,899 Total lease payments 11,187 Less imputed interest (1,730 ) Total $ 9,457 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Our actual capital ratios of December 31, 2022 and December 31, 2021 are also presented in the following table. | Our actual capital ratios of December 31, 2022 and December 31, 2021 are also presented in the following table. Actual Minimum For Capital Adequacy Purpose Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2022 Total Capital (to Risk Weighted Assets): Consolidated $ 278,729 14.20 % $ 157,042 8.00 % N/A N/A Bank 264,795 13.50 156,904 8.00 $ 196,131 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 239,125 12.18 117,781 6.00 N/A N/A Bank 244,864 12.48 117,678 6.00 156,904 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 239,125 12.18 88,336 4.50 N/A N/A Bank 244,864 12.48 88,259 4.50 127,485 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 239,125 9.27 103,229 4.00 N/A N/A Bank 244,864 9.49 103,166 4.00 128,957 5.00 Actual Minimum For Capital Adequacy Purpose Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2021 Total Capital (to Risk Weighted Assets): Consolidated $ 261,093 14.27 % $ 146,347 8.00 % N/A N/A Bank 243,788 13.35 146,135 8.00 $ 182,669 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 221,673 12.12 109,761 6.00 N/A N/A Bank 224,001 12.26 109,601 6.00 146,135 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 221,673 12.12 82,320 4.50 N/A N/A Bank 224,001 12.26 82,201 4.50 118,735 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 221,673 8.75 101,320 4.00 N/A N/A Bank 224,001 8.86 101,101 4.00 126,377 5.00 |
The following is a reconciliation of our GAAP capital to regulatory Tier 1, Common Equity Tier 1 and total capital: | The following is a reconciliation of our GAAP capital to regulatory Tier 1, Common Equity Tier 1 and total capital: December 31, 2022 2021 (In thousands) Consolidated GAAP capital $ 228,143 $ 223,688 Net unrealized losses on available-for-sale securities, net of tax 23,962 3,525 Unrealized loss on defined benefit pension plan, net of tax 1,080 8,789 Goodwill (12,487 ) (12,487 ) Intangible assets, net of associated deferred tax liabilities (1,573 ) (1,842 ) Tier 1 and Common Equity Tier 1 capital 239,125 221,673 Allowance for loan losses for regulatory capital 19,931 19,787 Subordinated debt 19,673 19,633 Total regulatory capital $ 278,729 $ 261,093 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income taxes consist of the following: | Income taxes consist of the following: Years Ended December 31, 2022 2021 2020 (In thousands) Current tax provision: Federal $ 5,251 $ 5,061 $ 3,793 State 2,403 2,320 1,579 Total 7,654 7,381 5,372 Deferred tax provision (benefit): Federal 712 462 (1,639 ) State 376 182 (792 ) Total 1,088 644 (2,431 ) Total tax provision $ 8,742 $ 8,025 $ 2,941 |
The differences between the statutory federal income tax at a rate of 21% and the effective tax are summarized below: | The differences between the statutory federal income tax at a rate of 21% and the effective tax are summarized below: Years Ended December 31, 2022 2021 2020 (In thousands) Statutory federal income tax $ 7,272 $ 6,662 $ 2,973 Increase (decrease) resulting from: State taxes, net of federal tax benefit 2,195 1,977 622 Tax exempt income (360 ) (307 ) (337 ) Bank-owned life insurance (BOLI) (362 ) (401 ) (380 ) BOLI death benefit — (117 ) — Option exercise tax (benefit) shortfall (28 ) (15 ) 1 Other, net 25 226 62 Effective tax $ 8,742 $ 8,025 $ 2,941 |
The tax effects of each item that gives rise to deferred taxes are as follows: | The tax effects of each item that gives rise to deferred taxes are as follows: December 31, 2022 2021 (In thousands) Deferred tax assets: Net unrealized loss on available-for-sale securities $ 8,197 $ 1,160 Allowance for loan losses 5,603 5,562 Lease liability 2,658 2,520 Employee benefit and share-based compensation plans 1,027 2,409 Accrued expenses 807 624 Defined benefit plan 421 3,436 Net unrealized loss on marketable equity securities 287 85 Nonaccrual interest 211 196 Purchased mortgage servicing rights 89 140 Other 165 182 Gross deferred tax assets 19,465 16,314 Deferred tax liabilities: Lease right-of-use asset (2,593 ) (2,471 ) Deferred loan fees (708 ) (539 ) Fixed asset depreciation (675 ) (677 ) Purchase accounting adjustments, net (442 ) (523 ) Other (20 ) (12 ) Gross deferred tax liabilities (4,438 ) (4,222 ) Net deferred tax asset $ 15,027 $ 12,092 |
TRANSACTIONS WITH DIRECTORS A_2
TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Following is a summary of activity for such loans: | We have had, and expect to have in the future, loans with our directors and executive officers including their affiliates. Such loans, in our opinion, do not include more than the normal risk of collectability or other unfavorable features. Following is a summary of activity for such loans: Years Ended December 31, 2022 2021 (In thousands) Balance at beginning of year $ 603 $ 695 Principal distributions 15 12 Repayments of principal (43 ) (104 ) Change in related party status (30 ) — Balance at end of year $ 545 $ 603 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: | We do not anticipate any significant losses as a result of these transactions. The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: December 31, 2022 2021 (In thousands) Commitments to extend credit: Unused lines of credit $ 328,850 $ 326,017 Loan commitments 84,123 138,765 Existing construction loan agreements 70,516 48,235 Standby letters of credit 22,049 30,160 |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABLITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis are summarized below: | Assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2022 Level 1 Level 2 Level 3 Total Assets: (In thousands) Available-for-sale securities $ — $ 146,997 $ — $ 146,997 Marketable equity securities 6,237 — — 6,237 Interest rate swaps — 6,343 — 6,343 Total assets $ 6,237 $ 153,340 $ — $ 159,577 Liabilities: Interest rate swaps $ — $ 6,343 $ — $ 6,343 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: (In thousands) Available-for-sale securities $ — $ 194,352 $ — $ 194,352 Marketable equity securities 11,896 — — 11,896 Interest rate swaps — 1,692 — 1,692 Total assets $ 11,896 $ 196,044 $ — $ 207,940 Liabilities: Interest rate swaps $ — $ 1,692 $ — $ 1,692 |
The following table summarizes the fair value hierarchy used to determine the carrying values of the related assets as of December 31, 2022. | We may also be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. 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 the carrying values of the related assets as of December 31, 2022. Year Ended At December 31, 2022 December 31, 2022 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired Loans $ — $ — $ 877 $ 472 |
The estimated fair values of our financial instruments are as follows: | The estimated fair values of our financial instruments are as follows: December 31, 2022 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 30,342 $ 30,342 $ — $ — $ 30,342 Securities held-to-maturity 230,168 9,162 181,788 — 190,950 Securities available-for-sale 146,997 — 146,997 — 146,997 Marketable equity securities 6,237 6,237 — — 6,237 Federal Home Loan Bank of Boston and other restricted stock 3,352 — — 3,352 3,352 Loans - net 1,971,469 — — 1,856,087 1,856,087 Accrued interest receivable 8,140 — — 8,140 8,140 Mortgage servicing rights 550 — 794 — 794 Derivative asset 6,343 — 6,343 — 6,343 Liabilities: Deposits 2,229,443 — — 2,220,405 2,220,405 Short-term borrowings 41,350 — 41,350 — 41,350 Long-term debt 1,178 — 1,094 — 1,094 Subordinated debt 19,673 — 18,132 — 18,132 Accrued interest payable 186 — — 186 186 Derivative liabilities 6,343 — 6,343 — 6,343 December 31, 2021 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 103,456 $ 103,456 $ — $ — $ 103,456 Securities held-to-maturity 222,272 9,973 209,775 — 219,748 Securities available-for-sale 194,352 — 194,352 — 194,352 Marketable equity securities 11,896 11,896 — — 11,896 Federal Home Loan Bank of Boston and other restricted stock 2,594 — — 2,594 2,594 Loans - net 1,844,929 — — 1,838,045 1,838,045 Accrued interest receivable 7,775 — — 7,775 7,775 Mortgage servicing rights 693 — 739 — 739 Derivative asset 1,692 — 1,692 — 1,692 Liabilities: Deposits 2,256,898 — — 2,256,834 2,256,834 Long-term debt 2,653 — 2,620 — 2,620 Subordinated debt 19,633 20,479 — 20,479 Accrued interest payable 191 — — 191 191 Derivative liabilities 1,692 — 1,692 — 1,692 |
CONDENSED PARENT COMPANY FINA_2
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
The condensed balance sheets of the parent company are as follows: | The condensed balance sheets of the parent company are as follows: December 31, 2022 2021 (In thousands) ASSETS: Cash equivalents $ 763 $ 4,083 Investment in subsidiaries 233,882 226,015 ESOP loan receivable 3,697 4,356 Other assets 13,784 13,819 TOTAL ASSETS $ 252,126 $ 248,273 LIABILITIES: ESOP loan payable $ 3,697 $ 4,356 Other liabilities 20,286 20,229 EQUITY 228,143 223,688 TOTAL LIABILITIES AND EQUITY $ 252,126 $ 248,273 |
The condensed statements of net income for the parent company are as follows: | The condensed statements of net income for the parent company are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) INCOME: Dividends from subsidiaries $ 8,152 $ 13,024 $ 15,812 ESOP loan interest income 349 402 457 Other income 2 1 1 Total income 8,503 13,427 16,270 OPERATING EXPENSE: Salaries and employee benefits 2,011 2,153 1,420 ESOP interest 349 402 457 Other expenses 1,283 998 406 Total operating expense 3,643 3,553 2,283 Income before equity in undistributed income of subsidiaries and income taxes 4,860 9,874 13,987 Equity in undistributed income (loss) of subsidiaries 20,595 13,009 (3,123 ) Net income before taxes 25,455 22,883 10,864 Income tax benefit (432 ) (816 ) (351 ) Net income $ 25,887 $ 23,699 $ 11,215 |
The condensed statements of cash flows of the parent company are as follows: | The condensed statements of cash flows of the parent company are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) OPERATING ACTIVITIES: Net income $ 25,887 $ 23,699 $ 11,215 Equity in undistributed (income) loss of subsidiaries (20,595 ) (13,009 ) 3,123 Net amortization of premiums on subordinated debt 40 27 — Change in other liabilities (642 ) (353 ) (672 ) Change in other assets 694 (142 ) 335 Other, net 1,757 1,989 1,385 Net cash provided by operating activities 7,141 12,211 15,386 INVESTING ACTIVITIES: Purchase of securities (107 ) (105 ) (122 ) Sales of securities 107 105 122 Net cash provided by investing activities — — — FINANCING ACTIVITIES: Cash dividends paid (5,281 ) (4,677 ) (5,037 ) Common stock repurchased (6,351 ) (23,281 ) (10,519 ) Proceeds from issuance of subordinated debt — 20,000 — Payment of subordinated debt issue costs — (394 ) — Issuance of common stock in connection with stock option exercises 1,171 193 43 Net cash used in financing activities (10,461 ) (8,159 ) (15,513 ) NET CHANGE IN CASH AND CASH EQUIVALENTS (3,320 ) 4,052 (127 ) CASH AND CASH EQUIVALENTS Beginning of year 4,083 31 158 End of year $ 763 $ 4,083 $ 31 Supplemental cash flow information: Net change in due to broker for common stock repurchased $ — $ (160 ) $ 160 |
SUMMARY OF QUARTERLY FINANCIA_2
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
The following tables present a summary of our quarterly financial information for the periods indicated. | The following tables present a summary of our quarterly financial information for the periods indicated. 2022 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest and dividend income $ 19,943 $ 20,646 $ 21,754 $ 23,585 Interest expense 1,245 1,254 1,466 2,731 Net interest and dividend income 18,698 19,392 20,288 20,854 (Credit) provision for loan losses (425 ) 300 675 150 Loss on available-for-sale securities, net (4 ) — — — Unrealized (losses) gains on marketable equity securities, net (276 ) (225 ) (235 ) 19 Gain on non-marketable equity investments — 141 211 70 Gain on defined benefit plan curtailment (1) — — — 2,807 (1) Gain on sale of mortgages 2 — — — Other non-interest income 2,626 2,825 2,614 2,757 Non-interest income 2,348 2,741 2,590 5,653 Non-interest expense 14,456 14,433 14,343 14,003 Income before income taxes 7,015 7,400 7,860 12,354 Income tax provision 1,696 1,865 1,861 3,320 Net income $ 5,319 $ 5,535 $ 5,999 $ 9,034 Basic earnings per share $ 0.24 $ 0.25 $ 0.28 $ 0.42 Diluted earnings per share $ 0.24 $ 0.25 $ 0.28 $ 0.42 (1) The increase in non-interest income for the three months ended December 31, 2022 was due to a $ 2.8 2021 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest and dividend income $ 20,033 $ 19,652 $ 20,238 $ 19,926 Interest expense 2,007 1,848 1,473 1,344 Net interest and dividend income 18,026 17,804 18,765 18,582 Provision (credit) for loan losses 75 (1,200 ) (100 ) 300 (Loss) gain on available-for-sale securities, net (62 ) (12 ) 2 — Unrealized (losses) gains on marketable equity securities, net (89 ) 6 11 (96 ) Loss on interest rate swap termination — (402 ) — — Gain on non-marketable equity investments 546 — — 352 BOLI death benefit — — — 555 Gain on sale of mortgages 227 242 665 289 Other non-interest income 2,382 2,575 2,617 2,756 Non-interest income 3,004 2,409 3,295 3,856 Non-interest expense 13,327 13,674 14,018 13,923 Income before income taxes 7,628 7,739 8,142 8,215 Income tax provision 1,837 2,087 2,106 1,995 Net income $ 5,791 $ 5,652 $ 6,036 $ 6,220 Basic earnings per share $ 0.24 $ 0.24 $ 0.27 $ 0.28 Diluted earnings per share $ 0.24 $ 0.24 $ 0.27 $ 0.28 |
The estimated useful lives of t
The estimated useful lives of the assets are as follows: (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 39 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Earnings per common share have
Earnings per common share have been computed based on the following: (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Accounting Policies [Abstract] | ||||||||||||
Net income applicable to common stock | $ 9,034 | $ 5,999 | $ 5,535 | $ 5,319 | $ 6,220 | $ 6,036 | $ 5,652 | $ 5,791 | $ 25,887 | $ 23,699 | $ 11,215 | |
Average number of common shares issued | 22,451 | 23,849 | 25,751 | |||||||||
Less: Average unallocated ESOP Shares | (415) | (496) | (580) | |||||||||
Less: Average unvested equity incentive plan shares | (156) | (129) | (124) | |||||||||
Average number of common shares outstanding used to calculate basic earnings per common share | 21,880 | 23,224 | 25,047 | |||||||||
Effect of dilutive equity incentive plan | 42 | 36 | ||||||||||
Effect of dilutive stock options | 17 | 41 | 15 | |||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 21,939 | 23,301 | 25,062 | |||||||||
Basic earnings per share | $ 0.42 | $ 0.28 | $ 0.25 | $ 0.24 | $ 0.28 | $ 0.27 | $ 0.24 | $ 0.24 | $ 1.18 | $ 1.02 | $ 0.45 | |
Diluted earnings per share | $ 0.42 | $ 0.28 | $ 0.25 | $ 0.24 | $ 0.28 | $ 0.27 | $ 0.24 | $ 0.24 | $ 1.18 | $ 1.02 | $ 0.45 | |
Anti-dilutive shares | [1] | 259 | ||||||||||
[1]Shares outstanding but not included because the impact of these shares would be anti-dilutive to the earnings per share calculation for the period presented. |
The components of accumulated o
The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | $ (25,042) | $ (12,314) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) before tax | (32,159) | (4,685) |
Tax effect | 8,197 | 1,160 |
Accumulated other comprehensive loss | (23,962) | (3,525) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) before tax | (1,501) | (12,225) |
Tax effect | 421 | 3,436 |
Accumulated other comprehensive loss | $ (1,080) | $ (8,789) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | |
Dec. 31, 2022 USD ($) N | Dec. 31, 2021 USD ($) | |
Number of banking offices in which bank operates | N | 25 | |
First mortgages maximum loan-to-value percentage, owner-occupied homes | 97% | |
First mortgages maximum loan-to-value percentage, second homes | 90% | |
First mortgages maximum loan-to-value percentage, investment properties | 85% | |
Loan-to-value ratio requiring private mortgage insurance | 80% | |
Residential equity loans and lines maximum percentage of appraised value underwritten | 85% | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Adopt ASU 2016-13 | us-gaap:AccountingStandardsUpdate201613Member | |
Retained earnings | $ 127,982,000 | $ 107,376,000 |
Pro Forma [Member] | ||
ASU 2016-13 adoption date | Jan. 01, 2023 | |
Pro Forma [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Retained earnings | $ 9,000 | |
401 (k) [Member] | ||
Employer matching contribution for the first 6% of each participant's annual earnings | 50% | |
Maximum percentage of participant's annual earnings subject to match by employer for 401(K) plan | 6% |
Available-for-sale and held-to-
Available-for-sale and held-to-maturity investment securities at December 31, 2022 and 2021 are summarized as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 179,156 | $ 199,037 |
Available-for-sale securities, gross unrealized gains | 522 | |
Available-for-sale securities, gross unrealized losses | (32,159) | (5,207) |
Available-for-sale securities, at fair value | 146,997 | 194,352 |
Held-to-maturity securities, amortized cost | 230,168 | 222,272 |
Held-to-maturity securities, gross unrealized gains | 67 | |
Held-to-maturity securities, gross unrealized losses | (39,285) | (2,524) |
Held-to-maturity securities, fair value | 190,950 | 219,748 |
Total, amortized cost | 409,324 | 421,309 |
Total, gross unrealized gains | 67 | 522 |
Total, gross unrealized losses | (71,444) | (7,731) |
Total, fair value | 337,947 | 414,100 |
Government-sponsored enterprise obligations [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 14,913 | 14,902 |
Available-for-sale securities, gross unrealized gains | ||
Available-for-sale securities, gross unrealized losses | (3,345) | (676) |
Available-for-sale securities, at fair value | 11,568 | 14,226 |
State and Municipal Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 270 | 405 |
Available-for-sale securities, gross unrealized gains | 1 | |
Available-for-sale securities, gross unrealized losses | ||
Available-for-sale securities, at fair value | 270 | 406 |
Corporate Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 8,012 | 3,026 |
Available-for-sale securities, gross unrealized gains | 86 | |
Available-for-sale securities, gross unrealized losses | (519) | |
Available-for-sale securities, at fair value | 7,493 | 3,112 |
Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 23,195 | 18,333 |
Available-for-sale securities, gross unrealized gains | 87 | |
Available-for-sale securities, gross unrealized losses | (3,864) | (676) |
Available-for-sale securities, at fair value | 19,331 | 17,744 |
Held-to-maturity securities, amortized cost | 9,987 | 9,979 |
Held-to-maturity securities, gross unrealized gains | ||
Held-to-maturity securities, gross unrealized losses | (825) | (6) |
Held-to-maturity securities, fair value | 9,162 | 9,973 |
Government-sponsored mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 148,544 | 171,011 |
Available-for-sale securities, gross unrealized gains | 427 | |
Available-for-sale securities, gross unrealized losses | (26,826) | (3,929) |
Available-for-sale securities, at fair value | 121,718 | 167,509 |
Held-to-maturity securities, amortized cost | 220,181 | 212,293 |
Held-to-maturity securities, gross unrealized gains | 67 | |
Held-to-maturity securities, gross unrealized losses | (38,460) | (2,518) |
Held-to-maturity securities, fair value | 181,788 | 209,775 |
U.S. government guaranteed mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 7,417 | 9,693 |
Available-for-sale securities, gross unrealized gains | 8 | |
Available-for-sale securities, gross unrealized losses | (1,469) | (602) |
Available-for-sale securities, at fair value | 5,948 | 9,099 |
Collateralized Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 155,961 | 180,704 |
Available-for-sale securities, gross unrealized gains | 435 | |
Available-for-sale securities, gross unrealized losses | (28,295) | (4,531) |
Available-for-sale securities, at fair value | 127,666 | 176,608 |
Held-to-maturity securities, amortized cost | 220,181 | 212,293 |
Held-to-maturity securities, gross unrealized gains | 67 | |
Held-to-maturity securities, gross unrealized losses | (38,460) | (2,518) |
Held-to-maturity securities, fair value | 181,788 | 209,775 |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 9,987 | 9,979 |
Held-to-maturity securities, gross unrealized gains | ||
Held-to-maturity securities, gross unrealized losses | (825) | (6) |
Held-to-maturity securities, fair value | $ 9,162 | $ 9,973 |
The following table presents th
The following table presents the unrealized gains (losses) recognized on marketable equity securities for the periods indicated: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||||||||||
Net (losses) gains recognized during the year on marketable equity securities | $ 19 | $ (235) | $ (225) | $ (276) | $ (96) | $ 11 | $ 6 | $ (89) | $ (717) | $ (168) | $ 109 |
Net losses recognized during the year on equity securities sold during the year | 1,021 | ||||||||||
Unrealized gain (loss) recognized during the year on marketable equity securities still held at year end | $ 304 | $ (168) | $ 109 |
The amortized cost and fair val
The amortized cost and fair value of available-for-sale and held-to-maturity securities at December 31, 2022, by final maturity, are shown below. (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized cost, available for sale | $ 179,156 | $ 199,037 |
Fair value, available for sale | 146,997 | 194,352 |
Amortized cost, held to maturity | 230,168 | 222,272 |
Fair value, held to maturity | 190,950 | 219,748 |
Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale securities, due after one year through five years, amortized cost | 3,282 | |
Available-for-sale securities, due after one year through five years, fair value | 3,188 | |
Held-to-maturity securities, due after one year through five years, amortized cost | 9,987 | |
Held-to-maturity securities, due after one year through five years, fair value | 9,162 | |
Available-for-sale securities, due after five years through ten years, amortized cost | 14,913 | |
Available-for-sale securities, due after five years through ten years, fair value | 12,567 | |
Held-to-maturity securities, due after five years through ten years, amortized cost | ||
Held-to-maturity securities, due after five years through ten years, fair value | ||
Available-for-sale securities, due after ten years, amortized cost | 5,000 | |
Available-for-sale securities, due after ten years, fair value | 3,576 | |
Held-to-maturity securities, due after ten years, amortized cost | ||
Held-to-maturity securities, due after ten years, fair value | ||
Amortized cost, available for sale | 23,195 | 18,333 |
Fair value, available for sale | 19,331 | 17,744 |
Amortized cost, held to maturity | 9,987 | 9,979 |
Fair value, held to maturity | 9,162 | 9,973 |
Collateralized Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale securities, due after one year through five years, amortized cost | 564 | |
Available-for-sale securities, due after one year through five years, fair value | 530 | |
Held-to-maturity securities, due after one year through five years, amortized cost | ||
Held-to-maturity securities, due after one year through five years, fair value | ||
Available-for-sale securities, due after five years through ten years, amortized cost | 1,088 | |
Available-for-sale securities, due after five years through ten years, fair value | 989 | |
Held-to-maturity securities, due after five years through ten years, amortized cost | ||
Held-to-maturity securities, due after five years through ten years, fair value | ||
Available-for-sale securities, due after ten years, amortized cost | 154,309 | |
Available-for-sale securities, due after ten years, fair value | 126,147 | |
Held-to-maturity securities, due after ten years, amortized cost | 220,181 | |
Held-to-maturity securities, due after ten years, fair value | 181,788 | |
Amortized cost, available for sale | 155,961 | 180,704 |
Fair value, available for sale | 127,666 | 176,608 |
Amortized cost, held to maturity | 220,181 | 212,293 |
Fair value, held to maturity | $ 181,788 | $ 209,775 |
Gross realized gains and losses
Gross realized gains and losses on sales of available-for-sale securities for the years ended December 31, 2022, 2021 and 2020 are as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||||||||||
Gross gains realized | $ 12 | $ 2,188 | |||||||||
Gross losses realized | (4) | (84) | (223) | ||||||||
Net (loss) gain realized | $ (4) | $ 2 | $ (12) | $ (62) | $ (4) | $ (72) | $ 1,965 |
Information pertaining to secur
Information pertaining to securities with gross unrealized losses at December 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: (Details) $ in Thousands | Dec. 31, 2022 USD ($) N | Dec. 31, 2021 USD ($) N |
Marketable Securities [Line Items] | ||
Available-for-sale, less than 12 months, number of securities | N | 14 | 36 |
Available-for-sale, less than 12 months, fair value | $ 16,739 | $ 107,647 |
Available-for-sale, less than 12 months, gross unrealized loss | $ 1,315 | $ 2,230 |
Available-for-sale, over 12 months, number of securities | N | 71 | 26 |
Available-for-sale, over 12 months, fair value | $ 129,989 | $ 61,839 |
Available-for-sale, over 12 months, gross unrealized loss | $ 30,844 | $ 2,977 |
Held-to-maturity, less than 12 months, number of securities | N | 6 | 33 |
Held-to-maturity, less than 12 months, fair value | $ 18,911 | $ 219,748 |
Held-to-maturity, less than 12 months, gross unrealized loss | $ 2,116 | $ 2,524 |
Held-to-maturity, over 12 months, number of securities | N | 33 | |
Held-to-maturity, over 12 months, fair value | $ 167,109 | |
Held-to-maturity, over 12 months, gross unrealized loss | $ 37,169 | |
Total, less than 12 months, number of securities | N | 20 | 69 |
Total, less than 12 months, fair value | $ 35,650 | $ 327,395 |
Total, less than 12 months, gross unrealized loss | $ 3,431 | $ 4,754 |
Total, over 12 months, number of securities | N | 104 | 26 |
Total, over 12 months, fair value | $ 297,098 | $ 61,839 |
Total, over 12 months, gross unrealized loss | $ 68,013 | $ 2,977 |
Government-sponsored mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale, less than 12 months, number of securities | N | 10 | 34 |
Available-for-sale, less than 12 months, fair value | $ 9,133 | $ 105,221 |
Available-for-sale, less than 12 months, gross unrealized loss | $ 776 | $ 2,088 |
Available-for-sale, less than 12 months, depreciation from amortized cost basis (%) | 7.80% | 2% |
Available-for-sale, over 12 months, number of securities | N | 60 | 18 |
Available-for-sale, over 12 months, fair value | $ 112,586 | $ 42,506 |
Available-for-sale, over 12 months, gross unrealized loss | $ 26,050 | $ 1,841 |
Available-for-sale, over 12 months, depreciation from amortized cost basis (%) | 18.80% | 4.50% |
Held-to-maturity, less than 12 months, number of securities | N | 6 | 31 |
Held-to-maturity, less than 12 months, fair value | $ 18,911 | $ 209,775 |
Held-to-maturity, less than 12 months, gross unrealized loss | $ 2,116 | $ 2,518 |
Held-to-maturity, less than 12 months, depreciation from amortized cost basis (%) | 10.10% | 1.20% |
Held-to-maturity, over 12 months, number of securities | N | 31 | |
Held-to-maturity, over 12 months, fair value | $ 157,947 | |
Held-to-maturity, over 12 months, gross unrealized loss | $ 36,344 | |
Held-to-maturity, over 12 months, depreciation from amortized cost basis (%) | 18.70% | |
U.S. government guaranteed mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale, less than 12 months, number of securities | N | 1 | 2 |
Available-for-sale, less than 12 months, fair value | $ 113 | $ 2,426 |
Available-for-sale, less than 12 months, gross unrealized loss | $ 20 | $ 142 |
Available-for-sale, less than 12 months, depreciation from amortized cost basis (%) | 15% | 6.20% |
Available-for-sale, over 12 months, number of securities | N | 8 | 5 |
Available-for-sale, over 12 months, fair value | $ 5,835 | $ 5,107 |
Available-for-sale, over 12 months, gross unrealized loss | $ 1,449 | $ 460 |
Available-for-sale, over 12 months, depreciation from amortized cost basis (%) | 19.90% | 9.90% |
Government-sponsored enterprise obligations [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale, less than 12 months, number of securities | N | ||
Available-for-sale, less than 12 months, fair value | ||
Available-for-sale, less than 12 months, gross unrealized loss | ||
Available-for-sale, less than 12 months, depreciation from amortized cost basis (%) | ||
Available-for-sale, over 12 months, number of securities | N | 3 | 3 |
Available-for-sale, over 12 months, fair value | $ 11,568 | $ 14,226 |
Available-for-sale, over 12 months, gross unrealized loss | $ 3,345 | $ 676 |
Available-for-sale, over 12 months, depreciation from amortized cost basis (%) | 22.40% | 5% |
Corporate Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale, less than 12 months, number of securities | N | 3 | |
Available-for-sale, less than 12 months, fair value | $ 7,493 | |
Available-for-sale, less than 12 months, gross unrealized loss | $ 519 | |
Available-for-sale, less than 12 months, depreciation from amortized cost basis (%) | 6.50% | |
Available-for-sale, over 12 months, number of securities | N | ||
Available-for-sale, over 12 months, fair value | ||
Available-for-sale, over 12 months, gross unrealized loss | ||
Available-for-sale, over 12 months, depreciation from amortized cost basis (%) | ||
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Held-to-maturity, less than 12 months, number of securities | N | 2 | |
Held-to-maturity, less than 12 months, fair value | $ 9,973 | |
Held-to-maturity, less than 12 months, gross unrealized loss | $ 6 | |
Held-to-maturity, less than 12 months, depreciation from amortized cost basis (%) | 0.10% | |
Held-to-maturity, over 12 months, number of securities | N | 2 | |
Held-to-maturity, over 12 months, fair value | $ 9,162 | |
Held-to-maturity, over 12 months, gross unrealized loss | $ 825 | |
Held-to-maturity, over 12 months, depreciation from amortized cost basis (%) | 8.30% |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Marketable Securities [Line Items] | |||
Proceeds from redemptions and sales | $ 20 | $ 9,562 | $ 96,320 |
US Treasury Securities [Member] | |||
Marketable Securities [Line Items] | |||
Fair value of collateralized public deposits | 4,500 | ||
Government-sponsored enterprise obligations [Member] | |||
Marketable Securities [Line Items] | |||
Fair value of collateralized public deposits | 7,600 | ||
Collateralized Mortgage-Backed Securities [Member] | |||
Marketable Securities [Line Items] | |||
Fair value of collateralized public deposits | $ 44,700 |
Major classifications of loans
Major classifications of loans as of the dates indicated were as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | $ 1,989,276 | $ 1,862,979 | |||
Unamortized PPP loan fees | (109) | (781) | |||
Unearned premiums and deferred loan fees and costs, net | 2,233 | 2,518 | |||
Total loans, net | 1,991,400 | 1,864,716 | |||
Allowance for loan losses | (19,931) | (19,787) | $ (21,157) | $ (14,102) | |
Net loans | 1,971,469 | 1,844,929 | |||
Commercial Real Estate [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 1,069,323 | 979,969 | [1],[2] | ||
Allowance for loan losses | (12,199) | (12,970) | [2] | (13,020) | (6,807) |
Residential Mortgage [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 589,503 | 552,332 | [1] | ||
Home Equity Line of Credit [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 105,557 | 99,759 | [1] | ||
Residential Portfolio Segment [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 695,060 | 652,091 | [2] | ||
Allowance for loan losses | (4,312) | (3,964) | [2] | (4,240) | (3,920) |
Commercial and Industrial Paycheck Protection Program [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 2,274 | 25,329 | |||
Commercial and Industrial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 217,574 | 201,340 | [1],[2] | ||
Allowance for loan losses | (3,160) | (2,643) | [2] | (3,630) | (3,183) |
Commercial and Industrial Sector [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 219,848 | 226,669 | |||
Allowance for loan losses | (3,160) | ||||
Consumer Loan [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 5,045 | 4,250 | [1],[2] | ||
Allowance for loan losses | $ (245) | $ (197) | [2] | $ (241) | $ (203) |
[1]December 31, 2021 balances exclude PPP loans.[2]December 31, 2021 non-impaired loan balances exclude PPP loans. |
A summary of the activity in th
A summary of the activity in the balances of mortgage servicing rights follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Balance at the beginning of year: | $ 693 | $ 153 |
Capitalized mortgage servicing rights | 2 | 628 |
Amortization | (145) | (86) |
Write-down of mortgage servicing asset to fair value | (2) | |
Balance at the end of year | 550 | 693 |
Fair value at the end of year | $ 794 | $ 739 |
An analysis of changes in the a
An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2022, 2021 and 2020 is as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Balance at December 31, 2021 | $ 19,787 | $ 21,157 | $ 19,787 | $ 21,157 | $ 14,102 | ||||||||||
Provision (credit) | $ 150 | $ 675 | $ 300 | (425) | $ 300 | $ (100) | $ (1,200) | 75 | 700 | (925) | 7,775 | ||||
Charge-offs | (673) | (645) | (963) | ||||||||||||
Recoveries | 117 | 200 | 243 | ||||||||||||
Balance at December 31, 2022 | 19,931 | 19,787 | 19,931 | 19,787 | 21,157 | ||||||||||
Commercial Real Estate [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Balance at December 31, 2021 | 12,970 | [1] | 13,020 | 12,970 | [1] | 13,020 | 6,807 | ||||||||
Provision (credit) | (434) | 46 | 6,262 | ||||||||||||
Charge-offs | (337) | (103) | (107) | ||||||||||||
Recoveries | 7 | 58 | |||||||||||||
Balance at December 31, 2022 | 12,199 | 12,970 | [1] | 12,199 | 12,970 | [1] | 13,020 | ||||||||
Residential Portfolio Segment [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Balance at December 31, 2021 | 3,964 | [1] | 4,240 | 3,964 | [1] | 4,240 | 3,920 | ||||||||
Provision (credit) | 344 | (349) | 408 | ||||||||||||
Charge-offs | (28) | (44) | (177) | ||||||||||||
Recoveries | 32 | 117 | 89 | ||||||||||||
Balance at December 31, 2022 | 4,312 | 3,964 | [1] | 4,312 | 3,964 | [1] | 4,240 | ||||||||
Commercial and Industrial [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Balance at December 31, 2021 | 2,643 | [1] | 3,630 | 2,643 | [1] | 3,630 | 3,183 | ||||||||
Provision (credit) | 586 | (644) | 939 | ||||||||||||
Charge-offs | (92) | (370) | (543) | ||||||||||||
Recoveries | 23 | 27 | 51 | ||||||||||||
Balance at December 31, 2022 | 3,160 | 2,643 | [1] | 3,160 | 2,643 | [1] | 3,630 | ||||||||
Consumer Loan [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Balance at December 31, 2021 | 197 | [1] | 241 | 197 | [1] | 241 | 203 | ||||||||
Provision (credit) | 202 | 35 | 129 | ||||||||||||
Charge-offs | (216) | (128) | (136) | ||||||||||||
Recoveries | 62 | 49 | 45 | ||||||||||||
Balance at December 31, 2022 | 245 | 197 | [1] | 245 | 197 | [1] | 241 | ||||||||
Unallocated [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Balance at December 31, 2021 | $ 13 | [1] | $ 26 | 13 | [1] | 26 | (11) | ||||||||
Provision (credit) | 2 | (13) | 37 | ||||||||||||
Charge-offs | |||||||||||||||
Recoveries | |||||||||||||||
Balance at December 31, 2022 | $ 15 | $ 13 | [1] | $ 15 | $ 13 | [1] | $ 26 | ||||||||
[1]December 31, 2021 non-impaired loan balances exclude PPP loans. |
The following table presents in
The following table presents information pertaining to the allowance for loan losses by segment as of the dates indicated: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for impaired loans | ||||||
Amount of allowance for non-impaired loans | 19,931 | |||||
Total allowance for loan losses | 19,931 | $ 19,787 | $ 21,157 | $ 14,102 | ||
Impaired loans | 13,208 | |||||
Non-impaired loans | 1,970,870 | |||||
Impaired loans acquired with deteriorated credit quality | 5,198 | |||||
Total loans | 1,989,276 | 1,862,979 | ||||
Total Loans Non PPE [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for impaired loans | [1] | |||||
Amount of allowance for non-impaired loans | 19,931 | 19,787 | [1] | |||
Total allowance for loan losses | 19,931 | 19,787 | [1] | |||
Impaired loans | 13,208 | 13,545 | [1] | |||
Non-impaired loans | 1,970,870 | 1,817,174 | [1] | |||
Impaired loans acquired with deteriorated credit quality | 5,198 | 6,931 | [1] | |||
Total loans | 1,989,276 | 1,837,650 | [1],[2] | |||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for impaired loans | [1] | |||||
Amount of allowance for non-impaired loans | 12,199 | 12,970 | [1] | |||
Total allowance for loan losses | 12,199 | 12,970 | [1] | 13,020 | 6,807 | |
Impaired loans | 9,178 | 9,601 | [1] | |||
Non-impaired loans | 1,056,886 | 965,577 | [1] | |||
Impaired loans acquired with deteriorated credit quality | 3,259 | 4,791 | [1] | |||
Total loans | 1,069,323 | 979,969 | [1],[2] | |||
Residential Portfolio Segment [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for impaired loans | [1] | |||||
Amount of allowance for non-impaired loans | 4,312 | 3,964 | [1] | |||
Total allowance for loan losses | 4,312 | 3,964 | [1] | 4,240 | 3,920 | |
Impaired loans | 3,623 | 3,223 | [1] | |||
Non-impaired loans | 689,776 | 647,098 | [1] | |||
Impaired loans acquired with deteriorated credit quality | 1,661 | 1,770 | [1] | |||
Total loans | 695,060 | 652,091 | [1] | |||
Commercial and Industrial Sector [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for impaired loans | ||||||
Amount of allowance for non-impaired loans | 3,160 | |||||
Total allowance for loan losses | 3,160 | |||||
Impaired loans | 407 | |||||
Non-impaired loans | 219,163 | |||||
Impaired loans acquired with deteriorated credit quality | 278 | |||||
Total loans | 219,848 | 226,669 | ||||
Consumer Loan [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for impaired loans | [1] | |||||
Amount of allowance for non-impaired loans | 245 | 197 | [1] | |||
Total allowance for loan losses | 245 | 197 | [1] | 241 | 203 | |
Impaired loans | 22 | [1] | ||||
Non-impaired loans | 5,045 | 4,228 | [1] | |||
Impaired loans acquired with deteriorated credit quality | [1] | |||||
Total loans | 5,045 | 4,250 | [1],[2] | |||
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for impaired loans | [1] | |||||
Amount of allowance for non-impaired loans | 15 | 13 | [1] | |||
Total allowance for loan losses | 15 | 13 | [1] | 26 | (11) | |
Impaired loans | [1] | |||||
Non-impaired loans | [1] | |||||
Impaired loans acquired with deteriorated credit quality | [1] | |||||
Total loans | [1] | |||||
Commercial and Industrial [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for impaired loans | [1] | |||||
Amount of allowance for non-impaired loans | [1] | 2,643 | ||||
Total allowance for loan losses | 3,160 | 2,643 | [1] | $ 3,630 | $ 3,183 | |
Impaired loans | [1] | 699 | ||||
Non-impaired loans | [1] | 200,271 | ||||
Impaired loans acquired with deteriorated credit quality | [1] | 370 | ||||
Total loans | $ 217,574 | $ 201,340 | [1],[2] | |||
[1]December 31, 2021 non-impaired loan balances exclude PPP loans.[2]December 31, 2021 balances exclude PPP loans. |
The following tables present an
The following tables present an age analysis of past due loans as of the dates indicated: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 1,989,276 | $ 1,862,979 | |
Non-Accrual Loans | 5,694 | 4,964 | [1] |
Total Loans Non PPE [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,989,276 | 1,837,650 | [1],[2] |
Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 2,160 | 1,046 | [1] |
Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 418 | 56 | [1] |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,891 | 1,039 | [1] |
Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,469 | 2,141 | [1] |
Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,984,807 | 1,835,509 | [1] |
Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,069,323 | 979,969 | [1],[2] |
Non-Accrual Loans | 1,933 | 1,224 | [1] |
Commercial Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 139 | [1] | |
Commercial Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 211 | [1] | |
Commercial Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,404 | 436 | [1] |
Commercial Real Estate [Member] | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,615 | 575 | [1] |
Commercial Real Estate [Member] | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,067,708 | 979,394 | [1] |
Residential Mortgage [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 589,503 | 552,332 | [1] |
Non-Accrual Loans | 3,290 | 3,214 | [1] |
Residential Mortgage [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,768 | 787 | [1] |
Residential Mortgage [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 100 | 41 | [1] |
Residential Mortgage [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 414 | 507 | [1] |
Residential Mortgage [Member] | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 2,282 | 1,335 | [1] |
Residential Mortgage [Member] | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 587,221 | 550,997 | [1] |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 105,557 | 99,759 | [1] |
Non-Accrual Loans | 181 | 94 | [1] |
Home Equity Line of Credit [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 209 | 57 | [1] |
Home Equity Line of Credit [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 97 | 5 | [1] |
Home Equity Line of Credit [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 51 | 63 | [1] |
Home Equity Line of Credit [Member] | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 357 | 125 | [1] |
Home Equity Line of Credit [Member] | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 105,200 | 99,634 | [1] |
Commercial and Industrial Sector [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 219,848 | 226,669 | |
Non-Accrual Loans | 290 | 410 | [1] |
Commercial and Industrial Sector [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 170 | 58 | [1] |
Commercial and Industrial Sector [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 10 | 10 | [1] |
Commercial and Industrial Sector [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 22 | 22 | [1] |
Commercial and Industrial Sector [Member] | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 202 | 90 | [1] |
Commercial and Industrial Sector [Member] | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 219,646 | 201,250 | [1] |
Commercial and Industrial Excluding PPP Loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 219,848 | ||
Consumer Loan [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 5,045 | 4,250 | [1],[2] |
Non-Accrual Loans | 22 | [1] | |
Consumer Loan [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 13 | 5 | [1] |
Consumer Loan [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | [1] | ||
Consumer Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 11 | [1] | |
Consumer Loan [Member] | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 13 | 16 | [1] |
Consumer Loan [Member] | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 5,032 | 4,234 | [1] |
Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 217,574 | $ 201,340 | [1],[2] |
[1]December 31, 2021 balances exclude PPP loans.[2]December 31, 2021 non-impaired loan balances exclude PPP loans. |
The following is a summary of i
The following is a summary of impaired loans by class: (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | [1] | Dec. 31, 2021 | [2] | |
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | $ 18,406 | $ 20,476 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 22,927 | 24,967 | ||
Impaired Financing Receivable, Average Recorded Investment | 19,285 | 24,172 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 374 | 843 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 12,437 | 14,392 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 13,795 | 15,563 | ||
Impaired Financing Receivable, Average Recorded Investment | 13,427 | 15,757 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 248 | 469 | ||
Residential Portfolio Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 5,088 | 4,881 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 5,823 | 5,381 | ||
Impaired Financing Receivable, Average Recorded Investment | 4,792 | 5,693 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 59 | 233 | ||
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 196 | 112 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 214 | 136 | ||
Impaired Financing Receivable, Average Recorded Investment | 172 | 146 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 1 | 7 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 685 | 1,069 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 3,095 | 3,850 | ||
Impaired Financing Receivable, Average Recorded Investment | 891 | 2,551 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 66 | 131 | ||
Consumer Loan [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 22 | |||
Impaired Financing Receivable, Unpaid Principal Balance | 37 | |||
Impaired Financing Receivable, Average Recorded Investment | 3 | 25 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 3 | |||
[1]Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings.[2]Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. |
The following is a summary of l
The following is a summary of loans acquired with evidence of credit deterioration from Chicopee as of December 31, 2022. (Details) - Chicopee Bancorp Inc [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Loans receivable - Contractual Required Payments Receivable beginning | $ 12,134 |
Loans receivable - Cash Expected To Be Collected beginning | 9,430 |
Loans receivable - Non-Accretable Discount beginning | 2,704 |
Loans receivable - Accretable Yield beginning | 2,499 |
Loans receivable - Outstanding beginning | 6,931 |
Collections - Contractually Required Payments Receivable | (1,792) |
Collections - Cash Expected to be Collected | (1,576) |
Collections - Non-Accretable Discount | (216) |
Collections - Accretable Yield | (213) |
Collections | (1,363) |
Dispositions - Contractually Required Payments Receivable | (589) |
Dispositions - Cash Expected to be Collected | (439) |
Dispositions - Non-Accretable Discount | (150) |
Dispositions - Accretable Yield | (69) |
Dispositions | (370) |
Loans receivable - Contractual Required Payments Receivable ending | 9,753 |
Loans receivable - Cash Expected To Be Collected ending | 7,415 |
Loans receivable - Non-Accretable Discount ending | 2,338 |
Loans receivable - Accretable Yield ending | 2,217 |
Loans receivable - Outstanding ending | $ 5,198 |
The following table presents ou
The following table presents our loans by risk rating for the periods indicated: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | $ 1,989,276 | $ 1,862,979 | |
Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 1,925,319 | 1,780,379 | |
Special Mention (Rated 5) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 21,658 | 51,542 | |
Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 42,299 | 31,058 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 1,069,323 | 979,969 | [1],[2] |
Commercial Real Estate [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 1,036,337 | 913,063 | |
Commercial Real Estate [Member] | Special Mention (Rated 5) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 16,035 | 48,765 | |
Commercial Real Estate [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 16,951 | 18,141 | |
Residential Mortgage [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 589,503 | 552,332 | [1] |
Residential Mortgage [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 585,292 | 547,980 | |
Residential Mortgage [Member] | Special Mention (Rated 5) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | |||
Residential Mortgage [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 4,211 | 4,352 | |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 105,557 | 99,759 | [1] |
Home Equity Line of Credit [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 105,248 | 99,503 | |
Home Equity Line of Credit [Member] | Special Mention (Rated 5) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | |||
Home Equity Line of Credit [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 309 | 256 | |
Commercial and Industrial Sector [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 219,848 | 226,669 | |
Commercial and Industrial Sector [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 193,415 | 215,605 | |
Commercial and Industrial Sector [Member] | Special Mention (Rated 5) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 5,623 | 2,777 | |
Commercial and Industrial Sector [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 20,810 | 8,287 | |
Consumer Loan [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 5,045 | 4,250 | [1],[2] |
Consumer Loan [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 5,027 | 4,228 | |
Consumer Loan [Member] | Special Mention (Rated 5) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | |||
Consumer Loan [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | $ 18 | $ 22 | |
[1]December 31, 2021 balances exclude PPP loans.[2]December 31, 2021 non-impaired loan balances exclude PPP loans. |
LOANS (Details Narrative)
LOANS (Details Narrative) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) $ / Loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Receivables [Abstract] | |||||||||||
Serviced commercial loans for participants | $ 70,500 | $ 63,200 | $ 70,500 | $ 63,200 | |||||||
Weighted average prepayment speed, PSA | 105% | ||||||||||
Weighted average internal rate of return | 10.01% | ||||||||||
Weighted average servicing fee percentage | 0.25% | ||||||||||
Net cost to service loans | $ / Loan | 83.71 | ||||||||||
Sale of residential real estate mortgages | $ 277 | 59,700 | |||||||||
Gain on sale of mortgages | $ 2 | 289 | $ 665 | $ 242 | $ 227 | 2 | 1,423 | ||||
Mortgage loans serviced for others | $ 79,300 | $ 88,200 | 79,300 | 88,200 | |||||||
Servicing fee income | $ 208 | $ 137 | |||||||||
Percentage of nonaccrual loans | 0.29% | 0.27% | 0.29% | 0.27% |
Premises and equipment are summ
Premises and equipment are summarized as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 58,329 | $ 57,186 |
Less: accumulated depreciation and amortization | (33,376) | (31,024) |
Premises and equipment, net | 24,953 | 26,162 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,239 | 6,239 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 26,738 | 26,343 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,472 | 3,409 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 21,880 | $ 21,195 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 2.3 | $ 2.3 | $ 2.1 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of core deposit intangible | $ 375 | $ 374 | $ 375 |
Core Deposits [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired core deposit intangible | $ 4,500 | ||
Amortization 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 | $ 313 |
Deposit accounts, by type, are
Deposit accounts, by type, are summarized as follows for the periods indicated: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Demand and interest-bearing checking: | ||
Interest-bearing checking accounts | $ 148,670 | $ 145,739 |
Demand deposits | 645,571 | 641,284 |
Savings: | ||
Regular savings accounts | 222,436 | 217,565 |
Money market accounts | 801,076 | 850,330 |
Time deposits | 411,690 | 401,980 |
Total deposits | $ 2,229,443 | $ 2,256,898 |
The scheduled maturities of tim
The scheduled maturities of time deposits for the periods indicated are as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposit Assets [Abstract] | ||
2022 | $ 363,290 | |
2023 | 288,697 | 24,500 |
2024 | 114,244 | 7,911 |
2025 | 4,873 | 4,892 |
2026 | 3,780 | 1,387 |
2027 | 96 | |
Total time deposits | $ 411,690 | $ 401,980 |
Interest expense on deposits fo
Interest expense on deposits for the years ended December 31, 2022, 2021 and 2020 is summarized as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deposit Assets [Abstract] | |||
Regular accounts | $ 161 | $ 154 | $ 136 |
Money market accounts | 3,187 | 2,412 | 2,838 |
Time deposits | 1,474 | 2,543 | 10,139 |
Interest-bearing checking accounts | 530 | 399 | 387 |
Total | $ 5,352 | $ 5,508 | $ 13,500 |
DEPOSITS (Details Narrative)
DEPOSITS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deposit Assets [Abstract] | |||
Time deposits $250,000 or more | $ 131,700 | ||
Interest expense on time deposits 250000 or more | 358 | $ 412 | |
Cash paid for interest on deposits | $ 5,300 | $ 5,500 | $ 13,600 |
The following advances are coll
The following advances are collateralized by a blanket lien on our residential real estate loans and certain eligible commercial real estate loans. (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2022 | $ 1,475 | |
Weighted Average Rate, 2022 | 0.10% | |
2023 | 532 | $ 532 |
2024 | 646 | 646 |
2025 | ||
Total long-term advances | $ 1,178 | $ 2,653 |
Weighted average rate | 0.10% |
SHORT-TERM BORROWINGS (Details
SHORT-TERM BORROWINGS (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Line of Credit [Member] | ||
Short-Term Debt [Line Items] | ||
Line of credit available | $ 9,500,000 | $ 9,500,000 |
FRB Discount Window [Member] | ||
Short-Term Debt [Line Items] | ||
Line of credit available | 4,400,000 | |
Correspondent Banks [Member] | ||
Short-Term Debt [Line Items] | ||
Line of credit available | 15,000,000 | 15,000,000 |
Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Line of credit available | 50,000,000 | 50,000,000 |
Other Borrowings [Member] | ||
Short-Term Debt [Line Items] | ||
Other borrowings | $ 6,400,000 | 0 |
Weighted average rate | 4.33% | |
Federal Home Loan Bank Borrowings [Member] | ||
Short-Term Debt [Line Items] | ||
Weighted average rate | 4.38% | |
Short term borrowings | $ 35,000,000 | $ 0 |
Borrowing capacity | $ 407,400,000 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 20, 2021 | |
Debt Instrument [Line Items] | ||||
Amortization of issuance costs | $ 40 | $ 27 | ||
Federal Home Loan Bank Advances [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash paid for interest | 513 | $ 3,600 | ||
Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 20,000 | |||
Maturity Date | May 01, 2031 | |||
Earliest redemption date | May 01, 2026 | |||
Issuance costs | $ 327 | |||
Amortization of issuance costs | $ 40 | $ 27 | ||
Subordinated Debt [Member] | Debt Instrument, Redemption, Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.875% | |||
Subordinated Debt [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Benchmark rate | 90-day average secured overnight financing rate | |||
Interest rate basis spread | 4.12% |
A summary of the status of our
A summary of the status of our stock options at December 31, 2022 is presented below: (Details) - Share-Based Payment Arrangement, Option [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Outstanding at beginning of period | shares | 177,881 |
Outstanding at beginning of period | $ / shares | $ 6.57 |
Outstanding at beginning of period | 9 months 21 days |
Outstanding at beginning of period | $ | $ 388 |
Exercised | shares | (177,881) |
Exercised | $ / shares | $ 6.58 |
Exercised | 3 months 29 days |
Exercised | $ | $ 430 |
Outstanding at end of period | shares | |
Outstanding at end of period | $ / shares | |
Outstanding at end of period | |
Outstanding at end of period | $ |
The threshold, target and stret
The threshold, target and stretch metrics under the 2020 grants are as follows: (Details) - LTI Plan for 2020 [Member] | 12 Months Ended |
Dec. 31, 2020 $ / shares | |
Threshold [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
December 31, 2020 | 5% |
December 31, 2021 | 5.62% |
December 31, 2022 | 6.29% |
Three-year Cumulative Diluted Earnings Per Share | $ 1.50 |
Target [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
December 31, 2020 | 5.48% |
December 31, 2021 | 6.24% |
December 31, 2022 | 6.99% |
Three-year Cumulative Diluted Earnings Per Share | $ 1.65 |
Stretch [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
December 31, 2020 | 6% |
December 31, 2021 | 6.86% |
December 31, 2022 | 7.69% |
Three-year Cumulative Diluted Earnings Per Share | $ 1.80 |
The threshold, target and str_2
The threshold, target and stretch metrics under the 2021 grants are as follows: (Details) - LTI Plan for 2021 [Member] | 12 Months Ended |
Dec. 31, 2021 $ / shares | |
Threshold [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
December 31, 2021 | 5.63% |
December 31, 2022 | 5.85% |
December 31, 2023 | 6.08% |
Three-year Cumulative Diluted Earnings Per Share | $ 1.58 |
Target [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
December 31, 2021 | 6.25% |
December 31, 2022 | 6.50% |
December 31, 2023 | 6.75% |
Three-year Cumulative Diluted Earnings Per Share | $ 1.97 |
Stretch [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
December 31, 2021 | 7.50% |
December 31, 2022 | 7.80% |
December 31, 2023 | 8.10% |
Three-year Cumulative Diluted Earnings Per Share | $ 2.36 |
The threshold, target and str_3
The threshold, target and stretch metrics under the 2022 grants are as follows: (Details) - LTI Plan for 2022 [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Threshold [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
December 31, 2022 | 7.79% |
December 31, 2023 | 7.93% |
December 31, 2024 | 8.03% |
Three-year Cumulative Diluted Earnings Per Share | $ 2.35 |
Target [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
December 31, 2022 | 8.20% |
December 31, 2023 | 8.35% |
December 31, 2024 | 8.45% |
Three-year Cumulative Diluted Earnings Per Share | $ 2.61 |
Stretch [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
December 31, 2022 | 8.61% |
December 31, 2023 | 8.77% |
December 31, 2024 | 8.87% |
Three-year Cumulative Diluted Earnings Per Share | $ 2.85 |
A summary of the status of rest
A summary of the status of restricted stock awards at December 31, 2022 and 2021 is presented below: (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Beginning balance | 213,381 | 178,766 |
Beginning balance | $ 8.91 | $ 9.63 |
Shares granted | 144,440 | 154,906 |
Shares granted | $ 9.14 | $ 8.44 |
Shares forfeited | (24,440) | (24,506) |
Shares forfeited | $ 8.73 | $ 10.59 |
Shares vested | (127,289) | (95,785) |
Shares vested | $ 9.32 | $ 9.05 |
Ending balance | 206,092 | 213,381 |
Ending balance | $ 8.85 | $ 8.91 |
At December 31, 2022, the remai
At December 31, 2022, the remaining principal balances are payable as follows: (Details) - Loan to Employee Stock Ownership Plan Trust [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 447 |
2024 | 447 |
2025 | 447 |
2026 | 447 |
2027 | 447 |
Thereafter | 1,462 |
Total | $ 3,697 |
Shares held by the ESOP include
Shares held by the ESOP include the following at December 31, 2022 and 2021: (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Share-Based Payment Arrangement [Abstract] | |||
Allocated | 1,139,325 | 1,127,074 | |
Committed to be allocated | 78,526 | 81,893 | 85,101 |
Unallocated | 366,487 | 445,013 | |
Total | 1,584,338 | 1,653,980 |
STOCK PLANS AND EMPLOYEE STOC_3
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN (Details Narrative) | 1 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2022 shares | May 31, 2021 shares | Feb. 28, 2021 shares | Feb. 29, 2020 shares | Jan. 31, 2007 shares | Jan. 31, 2002 N shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | May 14, 2014 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Cash received for options exercised | $ | $ 1,171,000 | $ 193,000 | $ 43,000 | |||||||
Restricted stock expense | $ | 1,100,000 | 1,300,000 | 834,000 | |||||||
Tax (shortfall) benefits | $ | 16,000 | (5,000) | (23,000) | |||||||
Unrecognized compensation cost for stock awards | $ | $ 1,200,000 | |||||||||
Unrecognized compensation cost remaining term | 1 year 6 months | |||||||||
Employee age required to qualify for ESOP benefit | N | 21 | |||||||||
Minimum working hours needed for eligibility | N | 1,000 | |||||||||
Purchase of common stock by ESOP Trust of IPO, percent | 4% | 8% | ||||||||
Purchase of common stock by ESOP Trust of IPO | 736,000 | 1,305,359 | ||||||||
Number O fShares Sold In IPO | 18,400,000 | |||||||||
Total ESOP compensation expense | $ | $ 683,000 | 682,000 | $ 551,000 | |||||||
Fair value of unallocated shares | $ | $ 3,500,000 | $ 3,900,000 | ||||||||
Loan to Employee Stock Ownership Plan Trust [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Interest rate | 8% | |||||||||
LTI Plan for 2020 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Shares granted | 120,053 | |||||||||
LTI Plan for 2021 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 1 year | |||||||||
Shares granted | 122,362 | 19,827 | ||||||||
LTI Plan for 2022 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Shares granted | 137,151 | |||||||||
2021 RSA Plan [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Shares available for grant | 459,508 | |||||||||
2014 RSA Plan [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Shares authorized | 516,000 | |||||||||
Share-Based Payment Arrangement [Member] | Share-Based Payment Arrangement, Employee [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Share-Based Payment Arrangement [Member] | Share-Based Payment Arrangement, Nonemployee [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 1 year | |||||||||
Time Based Shares [Member] | LTI Plan for 2020 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Shares granted | 69,898 | |||||||||
Time Based Shares [Member] | LTI Plan for 2020 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 1 year | |||||||||
Shares granted | 19,760 | |||||||||
Time Based Shares [Member] | LTI Plan for 2020 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Shares granted | 50,138 | |||||||||
Time Based Shares [Member] | LTI Plan for 2021 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Shares granted | 61,181 | |||||||||
Time Based Shares [Member] | LTI Plan for 2022 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Shares granted | 77,463 | |||||||||
Time Based Shares [Member] | LTI Plan for 2022 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 1 year | |||||||||
Shares granted | 17,775 | |||||||||
Time Based Shares [Member] | LTI Plan for 2022 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Shares granted | 59,688 | |||||||||
Performance Shares [Member] | LTI Plan for 2020 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Shares granted | 50,155 | |||||||||
Vesting percentage | 50% | |||||||||
Performance Shares [Member] | LTI Plan for 2020 [Member] | Maximum [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Percent of awards participants may earn | 150% | |||||||||
Performance Shares [Member] | LTI Plan for 2020 [Member] | Threshold [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Percent of awards participants may earn | 50% | |||||||||
Performance Shares [Member] | LTI Plan for 2020 [Member] | Target [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Percent of awards participants may earn | 100% | |||||||||
Performance Shares [Member] | LTI Plan for 2021 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Shares granted | 61,181 | |||||||||
Vesting percentage | 50% | |||||||||
Performance Shares [Member] | LTI Plan for 2022 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Shares granted | 59,688 | |||||||||
Vesting percentage | 50% | |||||||||
2021 RSA Plan [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Shares authorized | 700,000 | |||||||||
Restricted Stock [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Shares granted | 144,440 | 154,906 | ||||||||
Fair value of restricted stock vested | $ | $ 1,200,000 |
The following table provides in
The following table provides information for the DB Plan at or for the years ended December 31: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 45,089 | $ 47,592 | $ 36,158 |
Service cost | 1,108 | 1,842 | 1,396 |
Interest | 1,254 | 1,171 | 1,162 |
Actuarial (gain) loss | (15,518) | (3,028) | 9,690 |
Effect of curtailment | (5,059) | ||
Benefits paid | (2,262) | (2,488) | (814) |
Benefit obligation at end of year | 24,612 | 45,089 | 47,592 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 27,702 | 26,264 | 22,787 |
Actual return on plan assets | (5,906) | 1,926 | 3,191 |
Employer contribution | 3,600 | 2,000 | 1,100 |
Benefits paid | (2,262) | (2,488) | (814) |
Fair value of plan assets at end of year | 23,134 | 27,702 | 26,264 |
Funded status and accrued benefit at end of year | (1,478) | (17,387) | (21,328) |
Accumulated benefit obligation at end of year | $ 24,612 | $ 34,137 | $ 35,755 |
The following actuarial assumpt
The following actuarial assumptions were used in determining the pension benefit obligation: (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Discount rate | 5.05% | 2.85% |
Rate of compensation increase | 4% |
Net pension cost includes the f
Net pension cost includes the following components for the years ended December 31: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 1,108 | $ 1,842 | $ 1,396 |
Interest cost | $ 1,254 | 1,171 | 1,162 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income Extensible Enumeration Not Disclosed | true | ||
Expected return on assets | $ (1,712) | (1,755) | (1,526) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income Extensible Enumeration Not Disclosed | true | ||
Amortization of actuarial loss | $ 531 | 910 | 421 |
Net periodic pension cost | $ 1,181 | $ 2,168 | $ 1,453 |
The following actuarial assum_2
The following actuarial assumptions were used in determining the net periodic pension cost for the years ended December 31: (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Discount rate | 2.85% | 2.50% | 3.25% |
Expected return on plan assets | 6.50% | 7% | 7% |
Rate of compensation increase | 4% | 4% | 4% |
The following is a summary of t
The following is a summary of the DB Plan’s investments for the years ended December 31: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | $ 23,134 | $ 27,702 | $ 26,264 | $ 22,787 |
Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | 21,255 | 12,896 | ||
Large U.S. equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | 7,501 | |||
International equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | 4,251 | |||
Small/mid U.S. equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | 1,228 | |||
Other [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | $ 1,879 | $ 1,826 |
The following table summarizes
The following table summarizes the investments for which fair value is measured using NAV per share as a practical expedient for the years ended December 31, 2022 and 2021. (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | $ 23,134 | $ 27,702 | $ 26,264 | $ 22,787 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | $ 23,134 | $ 27,702 | ||
Unfunded Commitments | n/a | n/a | ||
Redemption Frequency (if Currently Eligible) | Daily | Daily | ||
Redemption Notice Period | 1 day | 1 day |
We estimate that the benefits t
We estimate that the benefits to be paid from the pension plan for years ended December 31 are as follows: (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Retirement Benefits [Abstract] | |
2023 | $ 1,708 |
2024 | 1,839 |
2025 | 4,311 |
2026 | 3,914 |
2027 | 2,282 |
In aggregate for 2028 – 2032 | $ 10,018 |
RETIREMENT PLANS AND EMPLOYEE_3
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Details Narrative) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) N | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Gain on defined benefit plan curtailment | $ 2,807,000 | [1] | $ 2,807,000 | |||||
Discount rate | 5.05% | 5.05% | 2.85% | |||||
Defined Benefit Plan, Equity Securities [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan target plan asset allocations | 50% | 50% | ||||||
Fixed Income Funds [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan target plan asset allocations | 50% | 50% | ||||||
Pension Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Minimum working hours needed for eligibility | N | 1,000 | |||||||
Net unrealized losses reversed | $ 7,300,000 | |||||||
Curtailment of future salary recognition | $ 5,100,000 | |||||||
401 (k) [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Employer matching contribution for the first 6% of each participant's annual earnings | 50% | |||||||
Maximum percentage of participant's annual earnings subject to match by employer for 401(K) plan | 6% | |||||||
Employer contribution to plan | $ 470,000 | $ 476,000 | $ 468,000 | |||||
[1]The increase in non-interest income for the three months ended December 31, 2022 was due to a $ 2.8 |
The following table presents _2
The following table presents information about interest rate swaps at December 31, 2022 and December 31, 2021: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Notional Amount | $ 75,534 | $ 76,826 |
Estimated Fair Value | 0 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 75,500 | 76,800 |
Not Designated as Hedging Instrument [Member] | Loan-Level Swaps - Dealer [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 37,767 | $ 16,023 |
Weighted Average Maturity | 9 years 9 months 18 days | 11 years 1 month 6 days |
Weighted Average Rate - Receive | 4.42% | 1.99% |
Weighted Average Rate - Pay | 3.17% | 3.76% |
Estimated Fair Value | $ 6,343 | $ (662) |
Not Designated as Hedging Instrument [Member] | Loan-Level Swaps - Borrower [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 37,767 | $ 16,023 |
Weighted Average Maturity | 9 years 9 months 18 days | 11 years 1 month 6 days |
Weighted Average Rate - Receive | 3.17% | 3.76% |
Weighted Average Rate - Pay | 4.42% | 1.99% |
Estimated Fair Value | $ (6,343) | $ 662 |
Not Designated as Hedging Instrument [Member] | Forward Starting Loan Level Swaps Dealer [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 22,390 | |
Weighted Average Maturity | 10 years 6 months | |
Estimated Fair Value | $ 1,030 | |
Not Designated as Hedging Instrument [Member] | Forward Starting Loan Level Swaps Borrower [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 22,390 | |
Weighted Average Maturity | 10 years 6 months | |
Estimated Fair Value | $ (1,030) |
The table below presents the fa
The table below presents the fair value of our derivative financial instruments designated as non-hedging instruments as well as our classification on the balance sheet as of December 31, 2022 and December 31, 2021. (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative asset | $ 6,343 | $ 1,692 |
Fair value of derivative liability | 6,343 | 1,692 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Customers [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative asset | 0 | 662 |
Fair value of derivative liability | 6,343 | 1,030 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Counterparties [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative asset | 6,343 | 1,030 |
Fair value of derivative liability | $ 0 | $ 662 |
The table below presents the pr
The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated: (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Reclassified from OCI into Expense (Effective Portion) | $ 1,516 | ||
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative | $ 1,099 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 75,534 | $ 76,826 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 75,500 | $ 76,800 |
Supplemental cash flow informat
Supplemental cash flow information related to leases was as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1,482 | $ 1,525 |
ROU assets obtained in exchange for lease obligations: | ||
Operating leases | $ 1,714 | $ 181 |
Supplemental balance sheet info
Supplemental balance sheet information related to leases was as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Operating lease ROU assets | $ 9,224 | $ 8,789 |
Operating lease liabilities | $ 9,457 | $ 8,964 |
Future undiscounted lease payme
Future undiscounted lease payments for the Company’s operating lease liabilities were as follows (in thousands): (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Years Ending December 31, | ||
2023 | $ 1,423 | |
2024 | 1,364 | |
2025 | 1,280 | |
2026 | 1,238 | |
2027 | 983 | |
Thereafter | 4,899 | |
Total lease payments | 11,187 | |
Less imputed interest | (1,730) | |
Total | $ 9,457 | $ 8,964 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating lease cost | $ 1.5 | $ 1.6 |
Weighted average remaining lease term | 9 years 9 months 18 days | |
Weighted average discount rate | 3.22% | |
Minimum [Member] | ||
Operating lease, term of contract | 1 year | |
Operating lease, renewal term | 5 years | |
Maximum [Member] | ||
Operating lease, term of contract | 16 years | |
Operating lease, renewal term | 10 years |
Our actual capital ratios of De
Our actual capital ratios of December 31, 2022 and December 31, 2021 are also presented in the following table. (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Total Capital | $ 278,729,000 | $ 261,093,000 |
Total Capital (to risk-weighted assets) ratio | 0.1420 | 0.1427 |
Minimum amount of capital for adequacy purposes | $ 157,042,000 | $ 146,347,000 |
Minimum amount of capital for adequacy purposes, ratio | 0.0800 | 0.0800 |
Tier 1 Capital | $ 239,125,000 | $ 221,673,000 |
Tier 1 Capital (to risk-weighted assets) ratio | 0.1218 | 0.1212 |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 117,781,000 | $ 109,761,000 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 0.0600 | 0.0600 |
Common Equity Tier 1 Capital | $ 239,125,000 | $ 221,673,000 |
Common Equity Tier 1 Capital (to risk-weighted assets) ratio | 0.1218 | 0.1212 |
Minimum amount of Common Equity Tier 1 Capital for adequacy purposes | $ 88,336,000 | $ 82,320,000 |
Minimum amount of Common Equity Tier 1 Capital for adequacy purposes, ratio | 0.0450 | 0.0450 |
Tier 1 Leverage ratio | $ 239,125,000 | $ 221,673,000 |
Tier 1 Leverage (to adjusted average assets) ratio | 0.0927 | 0.0875 |
Minimum amount of Tier 1 Leverage for adequacy purposes | $ 103,229,000 | $ 101,320,000 |
Minimum amount of Tier 1 Leverage for adequacy purposes, ratio | 0.0400 | 0.0400 |
Subsidiaries [Member] | ||
Total Capital | $ 264,795,000 | $ 243,788,000 |
Total Capital (to risk-weighted assets) ratio | 0.1350 | 0.1335 |
Minimum amount of capital for adequacy purposes | $ 156,904,000 | $ 146,135,000 |
Minimum amount of capital for adequacy purposes, ratio | 0.0800 | 0.0800 |
Minimum Capital required to be well-capitalized | $ 196,131,000 | $ 182,669,000 |
Minimum Capital required to be well-capitalized, ratio | 0.1000 | 0.1000 |
Tier 1 Capital | $ 244,864,000 | $ 224,001,000 |
Tier 1 Capital (to risk-weighted assets) ratio | 0.1248 | 0.1226 |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 117,678,000 | $ 109,601,000 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 0.0600 | 0.0600 |
Minimum Tier 1 Capital required to be well-capitalized | $ 156,904,000 | $ 146,135,000 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital | $ 244,864,000 | $ 224,001,000 |
Common Equity Tier 1 Capital (to risk-weighted assets) ratio | 0.1248 | 0.1226 |
Minimum amount of Common Equity Tier 1 Capital for adequacy purposes | $ 88,259,000 | $ 82,201,000 |
Minimum amount of Common Equity Tier 1 Capital for adequacy purposes, ratio | 0.0450 | 0.0450 |
Minimum Common Equity Tier 1 Capital required to be well-capitalized | $ 127,485,000 | $ 118,735,000 |
Minimum Common Equity Tier 1 Capital required to be well-capitalized, ratio | 0.0650 | 0.0650 |
Tier 1 Leverage ratio | $ 244,864,000 | $ 224,001,000 |
Tier 1 Leverage (to adjusted average assets) ratio | 0.0949 | 0.0886 |
Minimum amount of Tier 1 Leverage for adequacy purposes | $ 103,166,000 | $ 101,101,000 |
Minimum amount of Tier 1 Leverage for adequacy purposes, ratio | 0.0400 | 0.0400 |
Minimum Tier 1 Capital required to be well-capitalized | $ 128,957,000 | $ 126,377,000 |
Minimum Tier 1 Leverage required to be well-capitalized, ratio | 0.0500 | 0.0500 |
The following is a reconciliati
The following is a reconciliation of our GAAP capital to regulatory Tier 1, Common Equity Tier 1 and total capital: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | ||||
Consolidated GAAP capital | $ 228,143 | $ 223,688 | $ 226,640 | $ 232,024 |
Net unrealized losses on available-for-sale securities, net of tax | 23,962 | 3,525 | ||
Unrealized loss on defined benefit pension plan, net of tax | 1,080 | 8,789 | ||
Goodwill | (12,487) | (12,487) | ||
Intangible assets, net of associated deferred tax liabilities | (1,573) | (1,842) | ||
Tier 1 and Common Equity Tier 1 capital | 239,125 | 221,673 | ||
Allowance for loan losses for regulatory capital | 19,931 | 19,787 | ||
Subordinated debt | 19,673 | 19,633 | ||
Total regulatory capital | $ 278,729 | $ 261,093 |
REGULATORY CAPITAL (Details Nar
REGULATORY CAPITAL (Details Narrative) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) shares | Oct. 13, 2022 shares | Jul. 26, 2022 shares | Dec. 31, 2021 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||||
Capital conservation buffer of common equity Tier 1 capital, minimum percentage | 0.025 | 0.025 | |||
Amount available for payment of dividends without prior regulatory approval | $ | $ 33.6 | $ 33.6 | |||
Restricted equity in net assets | $ | $ 156.9 | $ 156.9 | $ 146.1 | ||
2021 Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares authorized to be repurchased | 2,400,000 | ||||
Number of shares authorized to be repurchased as percentage of total outstanding shares of common stock | 10% | ||||
Repurchase Plan 2022 [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares authorized to be repurchased | 1,100,000 | ||||
Number of shares authorized to be repurchased as percentage of total outstanding shares of common stock | 5% | ||||
Common stock repurchased (in shares) | 78,826 | ||||
Shares remaining under plan | 1,056,344 | 1,056,344 | |||
Repurchase Plans 2021 and 2022 [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Common stock repurchased (in shares) | 720,975 |
Income taxes consist of the fol
Income taxes consist of the following: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax provision: | |||||||||||
Federal | $ 5,251 | $ 5,061 | $ 3,793 | ||||||||
State | 2,403 | 2,320 | 1,579 | ||||||||
Total | 7,654 | 7,381 | 5,372 | ||||||||
Deferred tax provision (benefit): | |||||||||||
Federal | 712 | 462 | (1,639) | ||||||||
State | 376 | 182 | (792) | ||||||||
Total | 1,088 | 644 | (2,431) | ||||||||
Total tax provision | $ 3,320 | $ 1,861 | $ 1,865 | $ 1,696 | $ 1,995 | $ 2,106 | $ 2,087 | $ 1,837 | $ 8,742 | $ 8,025 | $ 2,941 |
The differences between the sta
The differences between the statutory federal income tax at a rate of 21% and the effective tax are summarized below: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||||||||
Statutory federal income tax | $ 7,272 | $ 6,662 | $ 2,973 | ||||||||
Increase (decrease) resulting from: | |||||||||||
State taxes, net of federal tax benefit | 2,195 | 1,977 | 622 | ||||||||
Tax exempt income | (360) | (307) | (337) | ||||||||
Bank-owned life insurance (BOLI) | (362) | (401) | (380) | ||||||||
BOLI death benefit | (117) | ||||||||||
Option exercise tax (benefit) shortfall | (28) | (15) | 1 | ||||||||
Other, net | 25 | 226 | 62 | ||||||||
Effective tax | $ 3,320 | $ 1,861 | $ 1,865 | $ 1,696 | $ 1,995 | $ 2,106 | $ 2,087 | $ 1,837 | $ 8,742 | $ 8,025 | $ 2,941 |
The tax effects of each item th
The tax effects of each item that gives rise to deferred taxes are as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net unrealized loss on available-for-sale securities | $ 8,197 | $ 1,160 |
Allowance for loan losses | 5,603 | 5,562 |
Lease liability | 2,658 | 2,520 |
Employee benefit and share-based compensation plans | 1,027 | 2,409 |
Accrued expenses | 807 | 624 |
Defined benefit plan | 421 | 3,436 |
Net unrealized loss on marketable equity securities | 287 | 85 |
Nonaccrual interest | 211 | 196 |
Purchased mortgage servicing rights | 89 | 140 |
Other | 165 | 182 |
Gross deferred tax assets | 19,465 | 16,314 |
Deferred tax liabilities: | ||
Lease right-of-use asset | (2,593) | (2,471) |
Deferred loan fees | (708) | (539) |
Fixed asset depreciation | (675) | (677) |
Purchase accounting adjustments, net | (442) | (523) |
Other | (20) | (12) |
Gross deferred tax liabilities | (4,438) | (4,222) |
Net deferred tax asset | $ 15,027 | $ 12,092 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for income taxes | $ 7,400,000 | $ 6,900,000 | $ 5,800,000 |
Domestic Tax Authority [Member] | |||
Income tax reserve for loan losses at Bank's base year | $ 9,400,000 | ||
Percentage of amount actually used net of reserve subject to taxation | 150% | ||
Deferred tax liability not recognized | $ 2,600,000 |
Following is a summary of activ
Following is a summary of activity for such loans: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Balance at beginning of year | $ 603 | $ 695 |
Principal distributions | 15 | 12 |
Repayments of principal | (43) | (104) |
Change in related party status | (30) | |
Balance at end of year | $ 545 | $ 603 |
The following summarizes these
The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Commitments to extend credit | $ 505,500 | $ 543,200 |
Unused lines of Credit [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | 328,850 | 326,017 |
Loan Commitments [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | 84,123 | 138,765 |
Existing construction loan agreements [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | 70,516 | 48,235 |
Standby Letters of Credit [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | $ 22,049 | $ 30,160 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Commitments to extend credit | $ 505,500,000 | $ 543,200,000 |
Fixed rate commitments | 107,100,000 | 101,500,000 |
Variable rate commitments | 398,400,000 | $ 441,700,000 |
Vendor contract payable | 10,700,000 | |
Vendor contract payable within one year | 4,900,000 | |
Vendor contract payable within the next five years | 5,800,000 | |
General Partner [Member] | ||
Loss Contingencies [Line Items] | ||
Partners committed capital contrbution | 3,000,000 | |
Unfunded commitment | 300,000 | |
General Partner [Member] | Other Assets [Member] | ||
Loss Contingencies [Line Items] | ||
Partners committed book value | $ 2,700,000 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Fixed rate commitments - interest rates | 1.99% | 1.99% |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Fixed rate commitments - interest rates | 18% | 18% |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | $ 22,049,000 | $ 30,160,000 |
FHLB Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | $ 16,400,000 | $ 23,400,000 |
Assets and liabilities measured
Assets and liabilities measured at fair value on a recurring basis are summarized below: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 146,997 | $ 194,352 |
Marketable equity securities | 6,237 | 11,896 |
Interest rate swaps | 6,343 | 1,692 |
Interest rate swaps | 6,343 | 1,692 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Marketable equity securities | 6,237 | 11,896 |
Interest rate swaps | ||
Interest rate swaps | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 146,997 | 194,352 |
Marketable equity securities | ||
Interest rate swaps | 6,343 | 1,692 |
Interest rate swaps | 6,343 | 1,692 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Marketable equity securities | ||
Interest rate swaps | ||
Interest rate swaps | ||
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 146,997 | 194,352 |
Marketable equity securities | 6,237 | 11,896 |
Interest rate swaps | 6,343 | 1,692 |
Total assets | 159,577 | 207,940 |
Interest rate swaps | 6,343 | 1,692 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Marketable equity securities | 6,237 | 11,896 |
Interest rate swaps | ||
Total assets | 6,237 | 11,896 |
Interest rate swaps | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 146,997 | 194,352 |
Marketable equity securities | ||
Interest rate swaps | 6,343 | 1,692 |
Total assets | 153,340 | 196,044 |
Interest rate swaps | 6,343 | 1,692 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Marketable equity securities | ||
Interest rate swaps | ||
Total assets | ||
Interest rate swaps |
The following table summarize_2
The following table summarizes the fair value hierarchy used to determine the carrying values of the related assets as of December 31, 2022. (Details) - Fair Value, Nonrecurring [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Impaired Loans [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total losses | $ 472 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired loans | $ 877 |
The estimated fair values of ou
The estimated fair values of our financial instruments are as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 30,342 | $ 103,456 |
Securities held-to-maturity | 190,950 | 219,748 |
Securities available-for-sale | 146,997 | 194,352 |
Marketable equity securities | 6,237 | 11,896 |
Federal Home Loan Bank of Boston and other restricted stock | 3,352 | 2,594 |
Loans - net | 1,856,087 | 1,838,045 |
Accrued interest receivable | 8,140 | 7,775 |
Mortgage servicing rights | 794 | 739 |
Derivative asset | 6,343 | 1,692 |
Liabilities: | ||
Deposits | 2,220,405 | 2,256,834 |
Short-term borrowings | 41,350 | |
Long-term debt | 1,094 | 2,620 |
Subordinated debt | 18,132 | 20,479 |
Accrued interest payable | 186 | 191 |
Derivative liabilities | 6,343 | 1,692 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 30,342 | 103,456 |
Securities held-to-maturity | 9,162 | 9,973 |
Securities available-for-sale | ||
Marketable equity securities | 6,237 | 11,896 |
Federal Home Loan Bank of Boston and other restricted stock | ||
Loans - net | ||
Accrued interest receivable | ||
Mortgage servicing rights | ||
Derivative asset | ||
Liabilities: | ||
Deposits | ||
Short-term borrowings | ||
Long-term debt | ||
Subordinated debt | ||
Accrued interest payable | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash and cash equivalents | ||
Securities held-to-maturity | 181,788 | 209,775 |
Securities available-for-sale | 146,997 | 194,352 |
Marketable equity securities | ||
Federal Home Loan Bank of Boston and other restricted stock | ||
Loans - net | ||
Accrued interest receivable | ||
Mortgage servicing rights | 794 | 739 |
Derivative asset | 6,343 | 1,692 |
Liabilities: | ||
Deposits | ||
Short-term borrowings | 41,350 | |
Long-term debt | 1,094 | 2,620 |
Subordinated debt | 18,132 | 20,479 |
Accrued interest payable | ||
Derivative liabilities | 6,343 | 1,692 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Cash and cash equivalents | ||
Securities held-to-maturity | ||
Securities available-for-sale | ||
Marketable equity securities | ||
Federal Home Loan Bank of Boston and other restricted stock | 3,352 | 2,594 |
Loans - net | 1,856,087 | 1,838,045 |
Accrued interest receivable | 8,140 | 7,775 |
Mortgage servicing rights | ||
Derivative asset | ||
Liabilities: | ||
Deposits | 2,220,405 | 2,256,834 |
Short-term borrowings | ||
Long-term debt | ||
Subordinated debt | ||
Accrued interest payable | 186 | 191 |
Derivative liabilities | ||
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 30,342 | 103,456 |
Securities held-to-maturity | 230,168 | 222,272 |
Securities available-for-sale | 146,997 | 194,352 |
Marketable equity securities | 6,237 | 11,896 |
Federal Home Loan Bank of Boston and other restricted stock | 3,352 | 2,594 |
Loans - net | 1,971,469 | 1,844,929 |
Accrued interest receivable | 8,140 | 7,775 |
Mortgage servicing rights | 550 | 693 |
Derivative asset | 6,343 | 1,692 |
Liabilities: | ||
Deposits | 2,229,443 | 2,256,898 |
Short-term borrowings | 41,350 | |
Long-term debt | 1,178 | 2,653 |
Subordinated debt | 19,673 | 19,633 |
Accrued interest payable | 186 | 191 |
Derivative liabilities | $ 6,343 | $ 1,692 |
The condensed balance sheets of
The condensed balance sheets of the parent company are as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS: | ||||
Other assets | $ 27,170 | $ 24,952 | ||
TOTAL ASSETS | 2,553,150 | 2,538,425 | ||
LIABILITIES: | ||||
Other liabilities | 33,363 | 35,553 | ||
EQUITY | 228,143 | 223,688 | $ 226,640 | $ 232,024 |
TOTAL LIABILITIES AND EQUITY | 2,553,150 | 2,538,425 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash equivalents | 763 | 4,083 | ||
Investment in subsidiaries | 233,882 | 226,015 | ||
ESOP loan receivable | 3,697 | 4,356 | ||
Other assets | 13,784 | 13,819 | ||
TOTAL ASSETS | 252,126 | 248,273 | ||
LIABILITIES: | ||||
ESOP loan payable | 3,697 | 4,356 | ||
Other liabilities | 20,286 | 20,229 | ||
EQUITY | 228,143 | 223,688 | ||
TOTAL LIABILITIES AND EQUITY | $ 252,126 | $ 248,273 |
The condensed statements of net
The condensed statements of net income for the parent company are as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING EXPENSE: | |||||||||||
Salaries and employee benefits | $ 32,697 | $ 32,186 | $ 29,349 | ||||||||
Net income before taxes | $ 12,354 | $ 7,860 | $ 7,400 | $ 7,015 | $ 8,215 | $ 8,142 | $ 7,739 | $ 7,628 | 34,629 | 31,724 | 14,156 |
Income tax benefit | 3,320 | 1,861 | 1,865 | 1,696 | 1,995 | 2,106 | 2,087 | 1,837 | 8,742 | 8,025 | 2,941 |
Net income | $ 9,034 | $ 5,999 | $ 5,535 | $ 5,319 | $ 6,220 | $ 6,036 | $ 5,652 | $ 5,791 | 25,887 | 23,699 | 11,215 |
Parent Company [Member] | |||||||||||
INCOME: | |||||||||||
Dividends from subsidiaries | 8,152 | 13,024 | 15,812 | ||||||||
ESOP loan interest income | 349 | 402 | 457 | ||||||||
Other income | 2 | 1 | 1 | ||||||||
Total income | 8,503 | 13,427 | 16,270 | ||||||||
OPERATING EXPENSE: | |||||||||||
Salaries and employee benefits | 2,011 | 2,153 | 1,420 | ||||||||
ESOP interest | 349 | 402 | 457 | ||||||||
Other expenses | 1,283 | 998 | 406 | ||||||||
Total operating expense | 3,643 | 3,553 | 2,283 | ||||||||
Income before equity in undistributed income of subsidiaries and income taxes | 4,860 | 9,874 | 13,987 | ||||||||
Equity in undistributed income (loss) of subsidiaries | 20,595 | 13,009 | (3,123) | ||||||||
Net income before taxes | 25,455 | 22,883 | 10,864 | ||||||||
Income tax benefit | (432) | (816) | (351) | ||||||||
Net income | $ 25,887 | $ 23,699 | $ 11,215 |
The condensed statements of cas
The condensed statements of cash flows of the parent company are as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES: | |||||||||||
Net income | $ 9,034 | $ 5,999 | $ 5,535 | $ 5,319 | $ 6,220 | $ 6,036 | $ 5,652 | $ 5,791 | $ 25,887 | $ 23,699 | $ 11,215 |
Change in other liabilities | 8,099 | 3,687 | 3,887 | ||||||||
Change in other assets | (4,218) | (4,914) | 5,182 | ||||||||
Net cash provided by operating activities | 36,089 | 27,542 | 25,067 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Net cash provided by investing activities | (111,193) | (161,657) | (123,557) | ||||||||
FINANCING ACTIVITIES: | |||||||||||
Cash dividends paid | (5,281) | (4,677) | (5,037) | ||||||||
Common stock repurchased | (6,351) | (23,281) | (10,519) | ||||||||
Proceeds from issuance of subordinated debt | 20,000 | ||||||||||
Payment of subordinated debt issue costs | (394) | ||||||||||
Issuance of common stock in connection with stock option exercises | 1,171 | 193 | 43 | ||||||||
Net cash used in financing activities | 1,990 | 150,127 | 161,193 | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (73,114) | 16,012 | 62,703 | ||||||||
Supplemental cash flow information: | |||||||||||
Net change in due to broker for common stock repurchased | (160) | 160 | |||||||||
Parent Company [Member] | |||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income | 25,887 | 23,699 | 11,215 | ||||||||
Equity in undistributed (income) loss of subsidiaries | (20,595) | (13,009) | 3,123 | ||||||||
Net amortization of premiums on subordinated debt | 40 | 27 | |||||||||
Change in other liabilities | (642) | (353) | (672) | ||||||||
Change in other assets | 694 | (142) | 335 | ||||||||
Other, net | 1,757 | 1,989 | 1,385 | ||||||||
Net cash provided by operating activities | 7,141 | 12,211 | 15,386 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchase of securities | (107) | (105) | (122) | ||||||||
Sales of securities | 107 | 105 | 122 | ||||||||
Net cash provided by investing activities | |||||||||||
FINANCING ACTIVITIES: | |||||||||||
Cash dividends paid | (5,281) | (4,677) | (5,037) | ||||||||
Common stock repurchased | (6,351) | (23,281) | (10,519) | ||||||||
Proceeds from issuance of subordinated debt | 20,000 | ||||||||||
Payment of subordinated debt issue costs | (394) | ||||||||||
Issuance of common stock in connection with stock option exercises | 1,171 | 193 | 43 | ||||||||
Net cash used in financing activities | (10,461) | (8,159) | (15,513) | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (3,320) | 4,052 | (127) | ||||||||
CASH AND CASH EQUIVALENTS | |||||||||||
Beginning of year | $ 4,083 | $ 31 | 4,083 | 31 | 158 | ||||||
End of year | $ 763 | $ 4,083 | 763 | 4,083 | 31 | ||||||
Supplemental cash flow information: | |||||||||||
Net change in due to broker for common stock repurchased | $ (160) | $ 160 |
The following tables present a
The following tables present a summary of our quarterly financial information for the periods indicated. (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Interest and dividend income | $ 23,585 | $ 21,754 | $ 20,646 | $ 19,943 | $ 19,926 | $ 20,238 | $ 19,652 | $ 20,033 | $ 85,928 | $ 79,849 | $ 82,875 | |
Interest expense | 2,731 | 1,466 | 1,254 | 1,245 | 1,344 | 1,473 | 1,848 | 2,007 | 6,696 | 6,672 | 18,445 | |
Net interest and dividend income | 20,854 | 20,288 | 19,392 | 18,698 | 18,582 | 18,765 | 17,804 | 18,026 | 79,232 | 73,177 | 64,430 | |
Provision (credit) for loan losses | 150 | 675 | 300 | (425) | 300 | (100) | (1,200) | 75 | 700 | (925) | 7,775 | |
(Loss) gain on available-for-sale securities, net | (4) | 2 | (12) | (62) | (4) | (72) | 1,965 | |||||
Unrealized (losses) gains on marketable equity securities, net | 19 | (235) | (225) | (276) | (96) | 11 | 6 | (89) | (717) | (168) | 109 | |
Loss on interest rate swap termination | (402) | (402) | (2,353) | |||||||||
Gain on non-marketable equity investments | 70 | 211 | 141 | 352 | 546 | 422 | 898 | |||||
BOLI death benefit | 555 | 555 | ||||||||||
Gain on defined benefit plan curtailment | 2,807 | [1] | 2,807 | |||||||||
Gain on sale of mortgages | 2 | 289 | 665 | 242 | 227 | 2 | 1,423 | |||||
Other non-interest income | 2,757 | 2,614 | 2,825 | 2,626 | 2,756 | 2,617 | 2,575 | 2,382 | ||||
Non-interest income | 5,653 | 2,590 | 2,741 | 2,348 | 3,856 | 3,295 | 2,409 | 3,004 | 13,332 | 12,564 | 9,251 | |
Non-interest expense | 14,003 | 14,343 | 14,433 | 14,456 | 13,923 | 14,018 | 13,674 | 13,327 | 57,235 | 54,942 | 51,750 | |
Income before income taxes | 12,354 | 7,860 | 7,400 | 7,015 | 8,215 | 8,142 | 7,739 | 7,628 | 34,629 | 31,724 | 14,156 | |
Income tax provision | 3,320 | 1,861 | 1,865 | 1,696 | 1,995 | 2,106 | 2,087 | 1,837 | 8,742 | 8,025 | 2,941 | |
Net income | $ 9,034 | $ 5,999 | $ 5,535 | $ 5,319 | $ 6,220 | $ 6,036 | $ 5,652 | $ 5,791 | $ 25,887 | $ 23,699 | $ 11,215 | |
Basic earnings per share | $ 0.42 | $ 0.28 | $ 0.25 | $ 0.24 | $ 0.28 | $ 0.27 | $ 0.24 | $ 0.24 | $ 1.18 | $ 1.02 | $ 0.45 | |
Diluted earnings per share | $ 0.42 | $ 0.28 | $ 0.25 | $ 0.24 | $ 0.28 | $ 0.27 | $ 0.24 | $ 0.24 | $ 1.18 | $ 1.02 | $ 0.45 | |
[1]The increase in non-interest income for the three months ended December 31, 2022 was due to a $ 2.8 |