Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 05, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BLMT | ||
Entity Registrant Name | BSB BANCORP, INC. | ||
Entity Central Index Key | 1522420 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 9,069,808 | ||
Entity Public Float | $134,276,880 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $2,275 | $2,203 |
Interest-bearing deposits in other banks | 49,492 | 35,839 |
Cash and cash equivalents | 51,767 | 38,042 |
Interest-bearing time deposits with other banks | 131 | 119 |
Investments in available-for-sale securities | 22,079 | 21,921 |
Investments in held-to-maturity securities (fair value of $119,447 as of December 31, 2014 and $118,981 as of December 31, 2013) | 118,528 | 119,776 |
Federal Home Loan Bank stock, at cost | 13,712 | 7,712 |
Loans, net of allowance for loan losses of $8,881 as of December 31, 2014 and $7,958 as of December 31, 2013 | 1,179,399 | 839,013 |
Premises and equipment, net | 3,066 | 3,327 |
Accrued interest receivable | 2,977 | 2,241 |
Deferred tax asset, net | 5,642 | 5,146 |
Income taxes receivable | 321 | |
Bank-owned life insurance | 23,888 | 13,325 |
Other real estate owned | 0 | 0 |
Other assets | 4,040 | 3,997 |
Total assets | 1,425,550 | 1,054,619 |
Deposits: | ||
Noninterest-bearing | 179,205 | 139,733 |
Interest-bearing | 805,357 | 625,020 |
Total deposits | 984,562 | 764,753 |
Federal Home Loan Bank advances | 285,100 | 142,100 |
Securities sold under agreements to repurchase | 1,392 | 2,127 |
Other borrowed funds | 1,067 | 1,113 |
Accrued interest payable | 961 | 683 |
Deferred compensation liability | 5,751 | 5,137 |
Income taxes payable | 178 | |
Other liabilities | 9,707 | 8,107 |
Total liabilities | 1,288,540 | 924,198 |
Stockholders' equity: | ||
Common stock; $0.01 par value, 100,000,000 shares authorized; 9,067,792 and 9,055,808 shares issued and outstanding at December 31, 2014 and 2013, respectively | 91 | 91 |
Additional paid-in capital | 87,428 | 85,449 |
Retained earnings | 53,603 | 49,312 |
Accumulated other comprehensive loss | -22 | -188 |
Unearned compensation - ESOP | -4,090 | -4,243 |
Total stockholders' equity | 137,010 | 130,421 |
Total liabilities and stockholders' equity | $1,425,550 | $1,054,619 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Investments in held-to-maturity securities, fair value | $119,447 | $118,981 |
Loans, allowance for loan losses | $8,881 | $7,958 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 9,067,792 | 9,055,808 |
Common stock, shares outstanding | 9,067,792 | 9,055,808 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and dividend income: | |||
Interest and fees on loans | $35,296 | $28,407 | $24,568 |
Interest on debt securities: | |||
Taxable | 3,131 | 2,455 | 2,124 |
Dividends | 143 | 28 | 47 |
Other interest income | 85 | 82 | 85 |
Total interest and dividend income | 38,655 | 30,972 | 26,824 |
Interest expense: | |||
Interest on deposits | 5,809 | 4,215 | 4,125 |
Interest on Federal Home Loan Bank advances | 1,209 | 735 | 958 |
Interest on securities sold under agreements to repurchase | 3 | 4 | 8 |
Interest on other borrowed funds | 30 | 33 | 42 |
Total interest expense | 7,051 | 4,987 | 5,133 |
Net interest and dividend income | 31,604 | 25,985 | 21,691 |
Provision for loan losses | 1,552 | 1,498 | 2,736 |
Net interest and dividend income after provision for loan losses | 30,052 | 24,487 | 18,955 |
Noninterest income: | |||
Customer service fees | 874 | 938 | 830 |
Income from bank-owned life insurance | 559 | 435 | 439 |
Net gain on sales of loans | 486 | 1,024 | 2,520 |
Net gain on sales and calls of securities | 34 | 59 | |
Loan servicing fee income | 826 | 750 | 467 |
Other income | 546 | 425 | 390 |
Total noninterest income | 3,291 | 3,606 | 4,705 |
Noninterest expense: | |||
Salaries and employee benefits | 16,581 | 15,207 | 13,305 |
Director compensation | 1,032 | 889 | 529 |
Occupancy expense | 1,060 | 951 | 801 |
Equipment expense | 605 | 650 | 450 |
Deposit insurance | 749 | 575 | 500 |
Data processing | 2,933 | 2,777 | 2,113 |
Professional fees | 765 | 929 | 1,036 |
Marketing | 975 | 999 | 928 |
Other expense | 1,790 | 2,114 | 1,884 |
Total noninterest expense | 26,490 | 25,091 | 21,546 |
Income before income tax expense | 6,853 | 3,002 | 2,114 |
Income tax expense | 2,562 | 1,042 | 713 |
Net income | 4,291 | 1,960 | 1,401 |
Net income available to common stockholders | $4,152 | $1,881 | $1,396 |
Earnings per share | |||
Basic | $0.50 | $0.22 | $0.16 |
Diluted | $0.49 | $0.22 | $0.16 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $4,291 | $1,960 | $1,401 |
Securities available for sale: | |||
Change in net unrealized gain/loss during the period | 230 | -454 | 138 |
Reclassification adjustment for net gains included in net income | -34 | ||
Total securities available for sale | 230 | -488 | 138 |
Defined benefit post-retirement benefit plan: | |||
Change in unrecognized pension plan benefit | 48 | 72 | -28 |
Total defined benefit post-retirement benefit plan | 48 | 72 | -28 |
Other comprehensive income (loss), before tax | 278 | -416 | 110 |
Income tax (expense) benefit | -112 | 160 | -37 |
Other comprehensive income (loss), net of tax | 166 | -256 | 73 |
Comprehensive income | $4,457 | $1,704 | $1,474 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Employee Stock Ownership Plan Unearned Compensation |
In Thousands, except Share data | ||||||
Beginning Balance at Dec. 31, 2011 | $131,506 | $92 | $90,016 | $45,951 | ($5) | ($4,548) |
Beginning Balance (in shares) at Dec. 31, 2011 | 9,172,860 | |||||
Net income | 1,401 | 1,401 | ||||
Other comprehensive income | 73 | 73 | ||||
Release of ESOP stock | 185 | 32 | 153 | |||
Stock based compensation-restricted stock awards | 74 | 74 | ||||
Stock based compensation-stock options | 69 | 69 | ||||
Restricted stock awards granted (in shares) | 359,570 | |||||
Restricted stock awards granted | 3 | -3 | ||||
Ending balance at Dec. 31, 2012 | 133,308 | 95 | 90,188 | 47,352 | 68 | -4,395 |
Ending balance (in shares) at Dec. 31, 2012 | 9,532,430 | |||||
Net income | 1,960 | 1,960 | ||||
Other comprehensive income | -256 | -256 | ||||
Release of ESOP stock | 209 | 57 | 152 | |||
Stock based compensation-restricted stock awards | 869 | 869 | ||||
Stock based compensation-stock options | 778 | 778 | ||||
Tax benefit from stock compensation | 31 | 31 | ||||
Share repurchases (in shares) | 0 | -476,622 | ||||
Share repurchases | -6,478 | -4 | -6,474 | |||
Ending balance at Dec. 31, 2013 | 130,421 | 91 | 85,449 | 49,312 | -188 | -4,243 |
Ending balance (in shares) at Dec. 31, 2013 | 9,055,808 | |||||
Net income | 4,291 | 4,291 | ||||
Other comprehensive income | 166 | 166 | ||||
Release of ESOP stock | 268 | 115 | 153 | |||
Stock based compensation-restricted stock awards | 906 | 906 | ||||
Stock based compensation-stock options | 847 | 847 | ||||
Tax benefit from stock compensation | 109 | 109 | ||||
Stock option exercises, net of shares surrendered (in shares) | 23,076 | 10,254 | ||||
Share repurchases (in shares) | 0 | |||||
Stock option exercises, net of shares surrendered | 45 | 45 | ||||
Restricted stock awards granted (in shares) | 1,730 | |||||
Restricted stock awards granted | -43 | -43 | ||||
Ending balance at Dec. 31, 2014 | $137,010 | $91 | $87,428 | $53,603 | ($22) | ($4,090) |
Ending balance (in shares) at Dec. 31, 2014 | 9,067,792 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $4,291 | $1,960 | $1,401 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of securities, net | 606 | 608 | 965 |
Net gain on sales and calls of securities | -34 | -59 | |
Gain on sales of loans, net | -486 | -1,024 | -2,520 |
Loans originated for sale | -18,771 | -87,892 | -161,794 |
Proceeds from sales of loans | 34,014 | 98,773 | 197,341 |
Provision for loan losses | 1,552 | 1,498 | 2,736 |
Change in unamortized mortgage premium | -1,045 | -883 | -198 |
Change in net deferred loan costs | -1,533 | -758 | -236 |
ESOP expense | 268 | 209 | 185 |
Depreciation and amortization expense | 761 | 716 | 517 |
Impairment of fixed assets | 3 | 41 | |
Deferred income tax (benefit) expense | -608 | -961 | 253 |
Increase in bank-owned life insurance | -559 | -435 | -439 |
Gain on sale of other real estate owned | -5 | ||
Stock based compensation expense | 1,753 | 1,647 | 143 |
Excess tax benefit from stock-based compensation | -109 | -31 | |
Net change in: | |||
Accrued interest receivable | -736 | -24 | -32 |
Other assets | -43 | -1,723 | -123 |
Income taxes receivable | -321 | 806 | -806 |
Income taxes payable | -69 | 209 | -121 |
Accrued interest payable | 278 | 228 | 278 |
Deferred compensation liability | 614 | 452 | 512 |
Other liabilities | 1,088 | 3,875 | 1,378 |
Net cash provided by operating activities | 20,948 | 17,252 | 39,381 |
Cash flows from investing activities: | |||
Maturities of interest-bearing time deposits with other banks | 119 | ||
Purchases of interest-bearing time deposits with other banks | -131 | ||
Purchases of available-for-sale securities | -17,833 | -22,587 | |
Proceeds from sales of available-for-sale securities | 17,985 | ||
Proceeds from maturities, payments, and calls of held-to-maturity securities | 20,330 | 25,585 | 38,350 |
Purchases of held-to-maturity securities | -19,616 | -81,891 | -13,745 |
Purchases of community loan fund investments | -250 | ||
Redemption of Federal Home Loan Bank stock | 405 | 496 | 411 |
Purchases of Federal Home Loan Bank stock | -6,405 | -581 | |
Recoveries of loans previously charged off | 29 | 155 | 197 |
Loan originations and principal collections, net | -184,634 | -54,098 | -75,311 |
Purchases of loans | -169,512 | -129,284 | -99,972 |
Payoff of first mortgage on OREO | -563 | ||
Capital expenditures | -503 | -1,182 | -1,419 |
Capital expenditures on other real estate owned | -79 | ||
Premiums paid on bank-owned life insurance | -10,004 | -6 | -25 |
Proceeds from sales of other real estate | 745 | ||
Net cash used in investing activities | -369,922 | -240,238 | -174,664 |
Cash flows from financing activities: | |||
Net increase in demand deposits, NOW and savings accounts | 139,779 | 132,017 | 174,744 |
Net increase in time deposits | 80,030 | 24,871 | 2,467 |
Proceeds from Federal Home Loan Bank advances | 50,000 | 17,000 | 15,000 |
Principal payments on Federal Home Loan Bank advances | -9,000 | -23,000 | -29,500 |
Net change in short-term advances | 102,000 | 65,000 | 2,000 |
Net (decrease) increase in securities sold under agreements to repurchase | -735 | -1,277 | 419 |
Repayment of principal on other borrowed funds | -46 | -43 | -346 |
Proceeds from exercise of stock options, net of cash paid | 45 | ||
Restricted stock awards issued, net of awards surrendered | -43 | ||
Net increase in mortgagors' escrow accounts | 560 | 195 | 416 |
Payments to repurchase stock | -6,478 | ||
Excess tax benefit from stock-based compensation | 109 | 31 | |
Net cash provided by financing activities | 362,699 | 208,316 | 165,200 |
Net increase (decrease) in cash and cash equivalents | 13,725 | -14,670 | 29,917 |
Cash and cash equivalents at beginning of period | 38,042 | 52,712 | 22,795 |
Cash and cash equivalents at end of period | 51,767 | 38,042 | 52,712 |
Supplemental disclosures: | |||
Interest paid | 6,773 | 4,759 | 4,855 |
Income taxes paid | 3,557 | 988 | 1,387 |
Transfer of loans receivable to loans held for sale | 14,757 | 28,355 | |
Transfer of loans to other real estate owned | 98 | ||
Transfer of loans held for sale to loans receivable | $1,347 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Nature of Operations | |||
BSB Bancorp, Inc. (the “Company”) was incorporated in Maryland in June, 2011 to become the holding company of Belmont Savings Bank (the “Bank”), a state-chartered Massachusetts savings bank. The Company is supervised by the Board of Governors of the Federal Reserve System (“FRB”), while the Bank is subject to the regulations of, and periodic examination by, the Federal Deposit Insurance Corporation (“FDIC”) and the Massachusetts Division of Banks (the “Division”). The Bank’s deposits are insured by the Bank Insurance Fund of the FDIC up to $250,000 per account. For balances in excess of the FDIC deposit insurance limits, coverage is provided by the Massachusetts Depositors Insurance Fund, Inc. (“Mass DIF”). In connection with the Company’s conversion from a mutual holding company to stock holding company form of organization (the “conversion”), on October 4, 2011 we completed our initial public offering of common stock, selling 8,993,000 shares of common stock at $10.00 per share for approximately $89.9 million in gross proceeds, including 458,643 shares sold to the Bank’s employee stock ownership plan. In addition, in connection with the conversion, we issued 179,860 shares of our common stock and contributed $200,000 in cash to the Belmont Savings Bank Foundation. | |||
Belmont Savings Bank is a state chartered savings bank which was incorporated in 1885 and is headquartered in Belmont, Massachusetts. The Bank is engaged principally in the business of attracting deposits from the general public and investing those deposits in residential and commercial real estate loans, consumer loans, including indirect auto loans, commercial loans and construction loans, as well as investment securities. | |||
Basis of Presentation | |||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Belmont Savings Bank and BSB Funding Corporation. All significant intercompany balances and transactions have been eliminated in consolidation. | |||
The Company’s consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles and general practices within the financial services industry. | |||
Use of Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan losses, valuation and potential other-than-temporary impairment (“OTTI”) of investment securities, the valuation of deferred tax assets and the fair value of stock-based compensation awards. | |||
Reclassification | |||
Certain previously reported amounts have been reclassified to conform to the current year’s presentation. | |||
Significant Group Concentrations of Credit Risk | |||
Most of the Company’s business activity is with customers located within the Commonwealth of Massachusetts. There are no concentrations of credit to borrowers that have similar economic characteristics. The majority of the Company’s loan portfolio is comprised of loans collateralized by real estate located in the Commonwealth of Massachusetts. | |||
Cash and Cash Equivalents | |||
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash, balances due from banks and interest-bearing deposits in other banks. | |||
Securities | |||
Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Securities not classified as held-to-maturity or trading, including equity securities with readily determinable fair values, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. | |||
Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |||
Each reporting period, the Company evaluates all securities classified as available-for-sale or held-to-maturity, with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”). Consideration is given to the obligor of the security, whether the security is guaranteed, whether there is a projected adverse change in cash flows, the liquidity of the security, the type of security, the capital position of security issuers, and payment history of the security, amongst other factors when evaluating these individual securities. | |||
OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Marketable equity securities are evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value are reflected in earnings as realized losses. For impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income, net of applicable taxes. | |||
Federal Home Loan Bank Stock | |||
As a member of the Federal Home Loan Bank of Boston (FHLB), the Company is required to invest in stock of the FHLB. Management evaluates the Company’s investment in the FHLB of Boston stock for other-than-temporary impairment at least on a quarterly basis and more frequently when economic or market conditions warrant such evaluation. Based on its most recent analysis of the FHLB of Boston as of December 31, 2014, management deems its investment in FHLB of Boston stock to be not other-than-temporarily impaired. | |||
Loans Held For Sale | |||
Loans purchased or transferred from held for investment, (if intent or ability to hold existing loans changes), and loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Direct loan origination costs and fees are deferred upon origination and are recognized on the date of sale. | |||
Loans | |||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums on purchased loans. | |||
Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the expected term as an adjustment of the related loan yield using the interest method. | |||
The accrual of interest on all loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||
Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. | |||
Allowance for Loan Losses | |||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | |||
The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. | |||
General Component: | |||
The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, home equity lines of credit, commercial real estate, construction, commercial, indirect auto 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: levels/trends in delinquencies; 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; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during 2014 or 2013. | |||
The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: | |||
Residential real estate and home equity loans – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not grant subprime loans. Loans in this segment are generally collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. | |||
Commercial real estate – Loans in this segment are primarily income-producing properties throughout New England. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management generally obtains rent rolls annually and continually monitors the cash flows of these borrowers. | |||
Construction loans – Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale and/or lease up of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. | |||
Commercial loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. | |||
Indirect auto loans – Loans in this segment are secured installment loans that are originated through a network of select regional automobile dealerships. The Company’s interest in the vehicle is secured with a recorded lien on the state title of each automobile. Collections are sensitive to changes in borrower financial circumstances, and the collateral can depreciate or be damaged in the event of repossession. Repayment is dependent on the credit quality and the cash flow of the individual borrower. | |||
Consumer loans - Loans in this segment include secured and unsecured consumer loans. Repayment is dependent on the credit quality and the cash flow of the individual borrower. | |||
Allocated Component: | |||
The allocated component relates to loans that are classified as impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company 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. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |||
The Company periodically may 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 and therefore are subject to a specific review for impairment. | |||
Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate at the time of impairment or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. Generally, impairment on TDRs is measured using the discounted cash flow method by discounting expected cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification. Loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. Generally, all other impaired loans are collateral dependent and impairment is measured through the collateral method. All loans on non-accrual status, with the exception of indirect auto and consumer loans, are considered to be impaired. When the measurement of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through the allowance for loan losses. The Bank charges off the amount of any confirmed loan loss in the period when the loans, or portion of loans, are deemed uncollectible. | |||
Unallocated Component: | |||
An unallocated component is 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. | |||
In the ordinary course of business, the Bank enters into commitments to extend credit, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for off-balance sheet commitments is included in other liabilities in the balance sheet. At December 31, 2014 and 2013, the reserve for unfunded loan commitments was $88,000 and $114,000, respectively. The related provision for off-balance sheet credit losses is included in non-interest expense in the statement of operations. | |||
Premises and Equipment | |||
Land is carried at cost. Building and equipment are stated at cost, less accumulated depreciation, computed on the straight-line method over the estimated useful lives of the assets. It is general practice to charge the cost of maintenance and repairs to earnings when incurred; major expenditures for betterments are capitalized and depreciated over the shorter of the lease term for leasehold improvements or their estimated useful lives. | |||
Bank-owned Life Insurance | |||
Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of operations and are generally not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15% of tier one capital and the total cash surrender value of life insurance policies is limited to 25% of tier one capital. | |||
Transfers and Servicing of Financial Assets | |||
Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. | |||
During the normal course of business, the Company may transfer whole loans or a portion of a financial asset, such as a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer will be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. | |||
The Company services mortgage loans for others. Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets with servicing rights retained. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Capitalized servicing rights are reported in other assets and are amortized into loan servicing fee income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. | |||
Other Real Estate Owned and Other Foreclosed Assets | |||
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less estimated costs to sell, at the date of foreclosure or when control is established, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations, changes in the valuation allowance and any direct writedowns are included in other noninterest expense. | |||
The Company classifies loans as in-substance repossessed or foreclosed if the Company receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place. | |||
Advertising Costs | |||
Advertising costs are expensed as incurred. | |||
Supplemental Executive Retirement Plan | |||
The compensation cost of an employee’s retirement benefit is recognized on the projected unit credit method over the employee’s approximate service period. The aggregate cost method is utilized for funding purposes. | |||
The Company accounts for its supplemental executive retirement plan using an actuarial model that allocates benefit costs over the service period of employees in the plan. The Company accounts for the over-funded or under-funded status of the plan as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income or loss. | |||
Employee Stock Ownership Plan | |||
Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated balance sheet. The difference between the average fair value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. | |||
Stock Based Compensation | |||
The Company recognizes stock-based compensation based on the grant-date fair value of the award adjusted for expected forfeitures. The Company values share-based stock option awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. | |||
Income Taxes | |||
Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. A valuation allowance is established against deferred tax assets when, based upon all available evidence, both positive and negative, it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. | |||
Fair Value Hierarchy | |||
The Company measures the fair values of its financial instruments in accordance with accounting guidance that requires an entity to base fair value on exit price, and maximize the use of observable inputs and minimize the use of unobservable inputs to determine the exit price. Under applicable accounting guidance, the Company categorizes its financial instruments, based on the priority of inputs to the valuation technique, into a three-level hierarchy, as described below. | |||
Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||
Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||
Level 3 - Level 3 inputs are unobservable inputs for the asset or liability. | |||
Transfers between levels are recognized at the end of a reporting period, if applicable. | |||
Earnings per Share (EPS) | |||
Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities considering both dividends declared (or accumulated) and participation rights in undistributed earnings as if all such earnings had been distributed during the period. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities (i.e. unvested restricted stock), not subject to performance based measures. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding (inclusive of participating securities). Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options or the attainment of performance measures) were issued during the period, computed using the treasury stock method. | |||
Comprehensive Income | |||
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 stockholders’ equity section of the balance sheet, such items, along with net income, are components of comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the Company’s postretirement and supplemental retirement plans. | |||
Recent accounting pronouncements | |||
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-01, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.” The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow-through entities for tax purposes as follows: | |||
1. For reporting entities that meet the conditions for and that elect to use the proportional amortization method to account for investments in qualified affordable housing projects, all amendments in this ASU apply. | |||
2. For reporting entities that do not meet the conditions for or that do not elect the proportional amortization method, only the amendments in this ASU that are related to disclosures apply. | |||
The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). For those investments in qualified affordable housing projects not accounted for using the proportional amortization method, the investment should be accounted for as an equity method investment or a cost method investment in accordance with Subtopic 970-323. The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect that the adoption of this ASU will have an impact on the Company’s consolidated financial statements. | |||
In January 2014, the FASB issued ASU 2014-04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of the amendments in this ASU is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this ASU using either a modified retrospective transition method or a prospective transition method. The Company does not expect that the adoption of this ASU will have a material impact on the Company’s consolidated financial statements. | |||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the criteria for reporting discontinued operations and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning on or after December 15, 2014, and interim periods within those years. The Company anticipates that the adoption of this guidance will not have a material impact on its consolidated financial statements. | |||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The objective of this ASU is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently reviewing this ASU to determine if it will have a material impact on its consolidated financial statements. | |||
In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” The amendments in this ASU require two accounting changes. First, the amendments in this ASU change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. This ASU also includes new disclosure requirements. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The Company anticipates that the adoption of this guidance will not have a material impact on its consolidated financial statements. | |||
In June 2014, the FASB issued ASU 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period.” The amendments in this ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Earlier adoption is permitted. ASU 2014-12 may be adopted either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements, and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. The Company anticipates that the adoption of this guidance will not have a material impact on its consolidated financial statements. | |||
In August 2014, the FASB issued ASU 2014-13, “Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity.” This ASU applies to entities that meet the following criteria: | |||
1 | they are required to consolidate a collateralized entity under the Variable Interest Entities guidance; | ||
2 | they measure all of the financial assets and the financial liabilities of that consolidated collateralized financing entity at fair value in the consolidated financial statements based on other FASB rules; and | ||
3 | those changes in fair value are reflected in earnings. | ||
Under ASU 2014-13, entities that meet these criteria are provided an alternative under which they can choose to eliminate the difference between the fair value of financial assets and financial liabilities of a consolidated collateralized financing entity. If that alternative is not elected, then ASU 2014-13 indicates that the fair value of the financial assets and the fair value of the financial liabilities of the consolidated collateralized financing entity should be measured in accordance with ASC 820. Fair Value Measurement and differences between the fair value of the financial assets and the financial liabilities of that consolidated collateralized financing entity should be reflected in earnings and attributed to the reporting entity in the consolidated statement of income or loss. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The Company anticipates that the adoption of this ASU will not have an impact on its consolidated financial statements. | |||
In August 2014, the FASB issued ASU 2014-14, “Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government - Guaranteed Mortgage Loans upon Foreclosure.” The amendments in this ASU require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: | |||
1 | the loan has a government guarantee that is not separable from the loan before foreclosure; | ||
2 | at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and | ||
3 | at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. | ||
Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. | |||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40).” The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements. | |||
In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging (Topic 815).” The objective of this ASU is to eliminate the use of different methods in practice and thereby reduce existing diversity under GAAP in the accounting for hybrid financial instruments issued in the form of a share. The amendments in this ASU apply to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share. The amendments in this ASU do not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. In addition, the amendments in this ASU clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features when considering how to weight those terms and features. Specifically, the assessment of the substance of the relevant terms and features should incorporate a consideration of (1) the characteristics of the terms and features themselves, (2) the circumstances under which the hybrid financial instrument was issued or acquired, and (3) the potential outcomes of the hybrid financial instrument, as well as the likelihood of those potential outcomes. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements. | |||
In November 2014, the FASB issued ASU 2014-17, “Business Combinations (Topic 805): Pushdown Accounting.” The amendments in this ASU provide guidance on whether and at what threshold an acquired entity that is a business or nonprofit activity may elect to apply pushdown accounting in its separate financial statements upon a change-in-control event in which an acquirer obtains control of the acquired entity. The amendments in this ASU are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance would be a change in accounting principle. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. | |||
In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20).” The amendments in this ASU eliminate the concept of extraordinary items. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary (even if they ultimately would conclude it is not). This also alleviates uncertainty for preparers, auditors, and regulators because auditors and regulators no longer will need to evaluate whether a preparer treated an unusual and/or infrequent item appropriately. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements. |
RESTRICTIONS_ON_CASH_AND_AMOUN
RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2014 | |
RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS | NOTE 2 – RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS |
Cash and cash equivalents as of December 31, 2014 and 2013 includes $15,263,000 and $8,816,000, respectively, which is subject to withdrawals and usage restrictions to satisfy the reserve requirements of the Federal Reserve Bank of Boston. |
SECURITIES
SECURITIES | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
SECURITIES | NOTE 3 – SECURITIES | ||||||||||||||||||||||||||||||||
Debt securities have been classified in the consolidated balance sheets according to management’s intent. | |||||||||||||||||||||||||||||||||
The following table presents a summary of the amortized cost, gross unrealized holding gains and losses and fair value of securities available for sale and securities held to maturity for the periods indicated. Gross unrealized holding gains and losses on available for sale securities are included in accumulated other comprehensive loss. | |||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Basis | Gains | Losses | Basis | Gains | Losses | ||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 22,199 | $ | 86 | $ | (206 | ) | $ | 22,079 | $ | 22,271 | $ | 75 | $ | (425 | ) | $ | 21,921 | |||||||||||||||
$ | 22,199 | $ | 86 | $ | (206 | ) | $ | 22,079 | $ | 22,271 | $ | 75 | $ | (425 | ) | $ | 21,921 | ||||||||||||||||
Held to maturity securities: | |||||||||||||||||||||||||||||||||
U.S. government sponsored mortgage-backed securities | $ | 100,977 | $ | 1,019 | $ | (227 | ) | $ | 101,769 | $ | 99,257 | $ | 572 | $ | (998 | ) | $ | 98,831 | |||||||||||||||
Corporate debt securities | 17,551 | 164 | (37 | ) | 17,678 | 20,519 | 120 | (489 | ) | 20,150 | |||||||||||||||||||||||
$ | 118,528 | $ | 1,183 | $ | (264 | ) | $ | 119,447 | $ | 119,776 | $ | 692 | $ | (1,487 | ) | $ | 118,981 | ||||||||||||||||
The amortized cost and estimated fair value of debt securities by contractual maturity at December 31, 2014 is as follows. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||||
Available for Sale | Held-to-Maturity | ||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||||||||||
Cost Basis | Value | Cost Basis | Value | ||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Due from one year to five years | 12,807 | 12,893 | 7,277 | 7,355 | |||||||||||||||||||||||||||||
Due from five years to ten years | 9,392 | 9,186 | 65,912 | 66,256 | |||||||||||||||||||||||||||||
Due after ten years | — | — | 45,339 | 45,836 | |||||||||||||||||||||||||||||
At December 31, 2014 and 2013, securities with a carrying value of $3,830,000 and $4,832,000, respectively, were pledged to secure securities sold under agreements to repurchase. Securities with a carrying value of $51,062,000 and $48,133,000 were pledged to secure borrowings with the Federal Home Loan Bank of Boston at December 31, 2014 and 2013, respectively, and securities with a carrying value of $15,662,000 and $3,016,000 were pledged to an available line of credit with the Federal Reserve Bank of Boston at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
Information relating to sales of securities available-for-sale during the years ending December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Proceeds from sales | $ | — | $ | 17,985 | $ | — | |||||||||||||||||||||||||||
Gross realized gains | — | 64 | — | ||||||||||||||||||||||||||||||
Gross realized losses | — | (30 | ) | — | |||||||||||||||||||||||||||||
Tax expense of securities gains/losses | — | 14 | — | ||||||||||||||||||||||||||||||
In addition to the securities listed above, the Company holds securities in Rabbi Trust investments that are used to fund the executive and director non-qualified deferred compensation plan. These Rabbi Trust investments were included in other assets and consisted primarily of cash and cash equivalents, mutual funds and both U.S. government agency and corporate obligations, and are classified as trading securities and recorded at fair value. The fair value of these Rabbi Trust investments at December 31, 2014 and December 31, 2013 were $2.3 million and $2.2 million, respectively. For the year ended December 31, 2014, the net gain on Rabbi Trust investments still held at the reporting date was $65,000. For the year ended December 31, 2013, the net gain on Rabbi Trust investments still held at the reporting date was $81,000. Refer to Note 15 – Employee Benefit Plans, for more information. | |||||||||||||||||||||||||||||||||
Information pertaining to securities with gross unrealized losses at December 31, 2014 and 2013, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: | |||||||||||||||||||||||||||||||||
Less than 12 Months | Over 12 Months | ||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||
December 31, 2014: | |||||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | — | $ | 4,185 | $ | (206 | ) | ||||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||
Corporate debt securities | 4,691 | (37 | ) | — | — | ||||||||||||||||||||||||||||
U.S. government sponsored mortgage-backed securities | 10,974 | (34 | ) | 15,637 | (193 | ) | |||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 15,665 | $ | (71 | ) | $ | 19,822 | $ | (399 | ) | |||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 4,970 | $ | (30 | ) | $ | 4,052 | $ | (395 | ) | |||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||
Corporate debt securities | 10,010 | (489 | ) | — | — | ||||||||||||||||||||||||||||
U.S. government sponsored mortgage-backed securities | 59,073 | (998 | ) | 6 | — | ||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 74,053 | $ | (1,517 | ) | $ | 4,058 | $ | (395 | ) | |||||||||||||||||||||||
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. | |||||||||||||||||||||||||||||||||
At December 31, 2014, 21 debt securities had unrealized losses with aggregate depreciation of 1.31% from the Company’s amortized cost basis. | |||||||||||||||||||||||||||||||||
The Company’s unrealized losses on investments in corporate bonds and mortgage-backed securities are primarily caused by changes in market interest rates. The contractual terms of these investments do not permit the companies to settle the security at a price less than the par value of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost basis, it does not consider these investments to be other-than-temporarily impaired at December 31, 2014. |
LOANS
LOANS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
LOANS | NOTE 4 – LOANS | ||||||||||||||||||||||||
A summary of the balances of loans follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Mortgage loans on real estate: | |||||||||||||||||||||||||
Residential one-to-four family | $ | 450,572 | $ | 287,652 | |||||||||||||||||||||
Commercial real estate loans | 395,178 | 320,807 | |||||||||||||||||||||||
Home equity loans | 131,628 | 92,461 | |||||||||||||||||||||||
Construction loans | 31,389 | 9,965 | |||||||||||||||||||||||
Total real estate loans | 1,008,767 | 710,885 | |||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||
Commercial loans | 39,161 | 30,691 | |||||||||||||||||||||||
Indirect auto loans | 131,961 | 99,798 | |||||||||||||||||||||||
Consumer loans | 774 | 558 | |||||||||||||||||||||||
171,896 | 131,047 | ||||||||||||||||||||||||
Total loans | 1,180,663 | 841,932 | |||||||||||||||||||||||
Net deferred loan costs | 5,068 | 3,535 | |||||||||||||||||||||||
Net unamortized mortgage premiums | 2,549 | 1,504 | |||||||||||||||||||||||
Allowance for loan losses | (8,881 | ) | (7,958 | ) | |||||||||||||||||||||
Total loans, net | $ | 1,179,399 | $ | 839,013 | |||||||||||||||||||||
The following tables present the activity in the allowance for loan losses for the years ended December 31, 2014, 2013 and 2012 and the balances of the allowance for loan losses and recorded investment in loans by portfolio class based on impairment method at December 31, 2014 and 2013. The recorded investment in loans in any of the following tables does not include accrued and unpaid interest or any deferred loan fees or costs, as amounts are not significant. | |||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||
Beginning | Provision | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||
balance | |||||||||||||||||||||||||
Residential one-to-four family | $ | 2,189 | $ | 550 | $ | (375 | ) | $ | — | $ | 2,364 | ||||||||||||||
Commercial real estate | 3,621 | 422 | — | — | 4,043 | ||||||||||||||||||||
Construction | 134 | 94 | — | — | 228 | ||||||||||||||||||||
Commercial | 419 | 43 | (4 | ) | — | 458 | |||||||||||||||||||
Home equity | 681 | 346 | (199 | ) | — | 828 | |||||||||||||||||||
Indirect auto | 749 | 65 | (51 | ) | 15 | 778 | |||||||||||||||||||
Consumer | 26 | — | (29 | ) | 14 | 11 | |||||||||||||||||||
Unallocated | 139 | 32 | — | — | 171 | ||||||||||||||||||||
Total | $ | 7,958 | $ | 1,552 | $ | (658 | ) | $ | 29 | $ | 8,881 | ||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Beginning | Provision | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||
balance | (benefit) | ||||||||||||||||||||||||
Residential one-to-four family | $ | 1,412 | $ | 709 | $ | — | $ | 68 | $ | 2,189 | |||||||||||||||
Commercial real estate | 3,039 | 582 | — | — | 3,621 | ||||||||||||||||||||
Construction | 198 | (64 | ) | — | — | 134 | |||||||||||||||||||
Commercial | 470 | (51 | ) | — | — | 419 | |||||||||||||||||||
Home equity | 466 | 235 | (20 | ) | — | 681 | |||||||||||||||||||
Indirect auto | 772 | (30 | ) | (62 | ) | 69 | 749 | ||||||||||||||||||
Consumer | 19 | 42 | (53 | ) | 18 | 26 | |||||||||||||||||||
Unallocated | 64 | 75 | — | — | 139 | ||||||||||||||||||||
Total | $ | 6,440 | $ | 1,498 | $ | (135 | ) | $ | 155 | $ | 7,958 | ||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||
Beginning | Provision | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||
balance | |||||||||||||||||||||||||
Residential one-to-four family | $ | 986 | $ | 608 | $ | (225 | ) | $ | 43 | $ | 1,412 | ||||||||||||||
Commercial real estate | 1,969 | 1,070 | — | — | 3,039 | ||||||||||||||||||||
Construction | 188 | 10 | — | — | 198 | ||||||||||||||||||||
Commercial | 321 | 149 | — | — | 470 | ||||||||||||||||||||
Home equity | 632 | 453 | (715 | ) | 96 | 466 | |||||||||||||||||||
Indirect auto | 664 | 343 | (281 | ) | 46 | 772 | |||||||||||||||||||
Consumer | 16 | 39 | (48 | ) | 12 | 19 | |||||||||||||||||||
Unallocated | — | 64 | — | — | 64 | ||||||||||||||||||||
Total | $ | 4,776 | $ | 2,736 | $ | (1,269 | ) | $ | 197 | $ | 6,440 | ||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Total | |||||||||||||||||||||||
Loan balance | Allowance | Loan balance | Allowance | Loan Balance | Allowance | ||||||||||||||||||||
Residential one-to-four family | $ | 6,256 | $ | 188 | $ | 444,316 | $ | 2,176 | $ | 450,572 | $ | 2,364 | |||||||||||||
Commercial real estate | 3,882 | 5 | 391,296 | 4,038 | 395,178 | 4,043 | |||||||||||||||||||
Construction | — | — | 31,389 | 228 | 31,389 | 228 | |||||||||||||||||||
Commercial | — | — | 39,161 | 458 | 39,161 | 458 | |||||||||||||||||||
Home equity | 296 | — | 131,332 | 828 | 131,628 | 828 | |||||||||||||||||||
Indirect auto | 12 | — | 131,949 | 778 | 131,961 | 778 | |||||||||||||||||||
Consumer | — | — | 774 | 11 | 774 | 11 | |||||||||||||||||||
Unallocated | — | — | — | 171 | — | 171 | |||||||||||||||||||
Total | $ | 10,446 | $ | 193 | $ | 1,170,217 | $ | 8,688 | $ | 1,180,663 | $ | 8,881 | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Total | |||||||||||||||||||||||
Loan balance | Allowance | Loan balance | Allowance | Loan Balance | Allowance | ||||||||||||||||||||
Residential one-to-four family | $ | 6,982 | $ | 869 | $ | 280,670 | $ | 1,320 | $ | 287,652 | $ | 2,189 | |||||||||||||
Commercial real estate | 4,081 | 11 | 316,726 | 3,610 | 320,807 | 3,621 | |||||||||||||||||||
Construction | — | — | 9,965 | 134 | 9,965 | 134 | |||||||||||||||||||
Commercial | — | — | 30,691 | 419 | 30,691 | 419 | |||||||||||||||||||
Home equity | 400 | — | 92,061 | 681 | 92,461 | 681 | |||||||||||||||||||
Indirect auto | 16 | — | 99,782 | 749 | 99,798 | 749 | |||||||||||||||||||
Consumer | 1 | — | 557 | 26 | 558 | 26 | |||||||||||||||||||
Unallocated | — | — | — | 139 | — | 139 | |||||||||||||||||||
Total | $ | 11,480 | $ | 880 | $ | 830,452 | $ | 7,078 | $ | 841,932 | $ | 7,958 | |||||||||||||
Information about loans that meet the definition of an impaired loan in ASC 310-10-35 is as follows as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
Impaired loans with a related allowance for credit losses at December 31, 2014 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance For | |||||||||||||||||||||||
Balance | Credit Losses | ||||||||||||||||||||||||
Residential one-to-four family | $ | 1,186 | $ | 1,186 | $ | 188 | |||||||||||||||||||
Commercial real estate | 3,060 | 3,060 | 5 | ||||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||||||
Indirect auto | — | — | — | ||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||
Totals | $ | 4,246 | $ | 4,246 | $ | 193 | |||||||||||||||||||
Impaired loans with no related allowance for credit losses at December 31, 2014 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance For | |||||||||||||||||||||||
Balance | Credit Losses | ||||||||||||||||||||||||
Residential one-to-four family | $ | 5,070 | $ | 5,229 | $ | — | |||||||||||||||||||
Commercial real estate | 822 | 822 | — | ||||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||
Home equity | 296 | 298 | — | ||||||||||||||||||||||
Indirect auto | 12 | 12 | — | ||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||
Totals | $ | 6,200 | $ | 6,361 | $ | — | |||||||||||||||||||
Impaired loans with a related allowance for credit losses at December 31, 2013 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance For | |||||||||||||||||||||||
Balance | Credit Losses | ||||||||||||||||||||||||
Residential one-to-four family | $ | 3,824 | $ | 3,824 | $ | 869 | |||||||||||||||||||
Commercial real estate | 3,111 | 3,111 | 11 | ||||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||||||
Indirect auto | — | — | — | ||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||
Totals | $ | 6,935 | $ | 6,935 | $ | 880 | |||||||||||||||||||
Impaired loans with no related allowance for credit losses at December 31, 2013 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance For | |||||||||||||||||||||||
Balance | Credit Losses | ||||||||||||||||||||||||
Residential one-to-four family | $ | 3,158 | $ | 3,158 | $ | — | |||||||||||||||||||
Commercial real estate | 970 | 970 | — | ||||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||
Home equity | 400 | 599 | — | ||||||||||||||||||||||
Indirect auto | 16 | 16 | — | ||||||||||||||||||||||
Consumer | 1 | 1 | — | ||||||||||||||||||||||
Totals | $ | 4,545 | $ | 4,744 | $ | — | |||||||||||||||||||
The following tables set forth information regarding interest income recognized on impaired loans, by portfolio, for the periods indicated. | |||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||
With an allowance recorded | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||
Residential one-to-four family | $ | 1,592 | $ | 107 | $ | 2,566 | $ | 10 | $ | 1,325 | $ | 11 | |||||||||||||
Commercial real estate | 3,085 | 115 | 1,824 | 59 | — | — | |||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||
Home equity | — | — | — | — | 432 | 3 | |||||||||||||||||||
Indirect auto | — | — | — | — | — | — | |||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||
Totals | $ | 4,677 | $ | 222 | $ | 4,390 | $ | 69 | $ | 1,757 | $ | 14 | |||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||
Without an allowance recorded | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||
Residential one-to-four family | $ | 3,689 | $ | 83 | $ | 5,460 | $ | 130 | $ | 3,006 | $ | 76 | |||||||||||||
Commercial real estate | 887 | 34 | 2,258 | 118 | 889 | 32 | |||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||
Commercial | — | — | — | — | 35 | 4 | |||||||||||||||||||
Home equity | 398 | 8 | 462 | 17 | 410 | 13 | |||||||||||||||||||
Indirect auto | 2 | — | 3 | — | — | — | |||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||
Totals | $ | 4,976 | $ | 125 | $ | 8,183 | $ | 265 | $ | 4,340 | $ | 125 | |||||||||||||
At December 31, 2014, there were no additional funds committed to be advanced in connection with loans to borrowers with impaired loans. | |||||||||||||||||||||||||
The following is a summary of past due and non-accrual loans at December 31, 2014 and 2013: | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
30–59 Days | 60–89 Days | 90 Days | Total | 90 days | Loans on | ||||||||||||||||||||
or More | Past Due | or more | Non-accrual | ||||||||||||||||||||||
and accruing | |||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||
Residential one-to-four family | $ | — | $ | 230 | $ | 2,432 | $ | 2,662 | $ | — | $ | 2,662 | |||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||
Home equity | 270 | — | 96 | 366 | — | 96 | |||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||
Other loans: | |||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||
Indirect auto | 463 | 45 | 12 | 520 | — | 12 | |||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||
$ | 733 | $ | 275 | $ | 2,540 | $ | 3,548 | $ | — | $ | 2,770 | ||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
30–59 Days | 60–89 Days | 90 Days | Total | 90 days or | Loans on | ||||||||||||||||||||
or More | Past Due | more | Non-accrual | ||||||||||||||||||||||
and accruing | |||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||
Residential one-to-four family | $ | 410 | $ | — | $ | 1,911 | $ | 2,321 | $ | — | $ | 3,860 | |||||||||||||
Commercial real estate | — | — | 38 | 38 | — | 38 | |||||||||||||||||||
Home equity | 914 | — | — | 914 | — | 200 | |||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||
Other loans: | |||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||
Indirect auto | 222 | — | 16 | 238 | — | 16 | |||||||||||||||||||
Consumer | — | — | 1 | 1 | — | 1 | |||||||||||||||||||
$ | 1,546 | $ | — | $ | 1,966 | $ | 3,512 | $ | — | $ | 4,115 | ||||||||||||||
Credit Quality Information | |||||||||||||||||||||||||
The Company utilizes a seven grade internal loan rating system for commercial, commercial real estate and construction loans, and a five grade internal loan rating system for certain residential real estate, home equity and consumer loans that are rated if the loans become delinquent. | |||||||||||||||||||||||||
Loans rated 1 - 3: Loans in these categories are considered “pass” rated loans with low to average risk. | |||||||||||||||||||||||||
Loans rated 4: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. | |||||||||||||||||||||||||
Loans rated 5: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. | |||||||||||||||||||||||||
Loans rated 6: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. | |||||||||||||||||||||||||
Loans rated 7: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. | |||||||||||||||||||||||||
On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial, commercial real estate loans, and construction loans. On an annual basis, the Company engages an independent third party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. | |||||||||||||||||||||||||
On a quarterly basis, the Company formally reviews the ratings on all residential real estate and home equity loans if they have become delinquent. Criteria used to determine ratings consist of loan-to-value ratios and days delinquent. | |||||||||||||||||||||||||
The following table presents the Company’s loans by risk rating at December 31, 2014 and 2013. There were no loans rated as 6 (“doubtful”) or 7 (“loss”) at the dates indicated. | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Loans rated 1-3 | Loans rated 4 | Loans rated 5 | Loans not rated (A) | Total | |||||||||||||||||||||
Residential one-to-four family | $ | — | $ | 1,134 | $ | 3,400 | $ | 446,038 | $ | 450,572 | |||||||||||||||
Commercial real estate | 386,513 | — | 8,665 | — | 395,178 | ||||||||||||||||||||
Construction | 31,389 | — | — | — | 31,389 | ||||||||||||||||||||
Commercial | 39,159 | 2 | — | — | 39,161 | ||||||||||||||||||||
Home equity | — | — | 895 | 130,733 | 131,628 | ||||||||||||||||||||
Indirect auto | — | — | — | 131,961 | 131,961 | ||||||||||||||||||||
Consumer | — | — | — | 774 | 774 | ||||||||||||||||||||
Total | $ | 457,061 | $ | 1,136 | $ | 12,960 | $ | 709,506 | $ | 1,180,663 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Loans rated 1-3 | Loans rated 4 | Loans rated 5 | Loans not rated (A) | Total | |||||||||||||||||||||
Residential one-to-four family | $ | — | $ | 3,123 | $ | 4,613 | $ | 279,916 | $ | 287,652 | |||||||||||||||
Commercial real estate | 307,093 | 4,277 | 9,437 | — | 320,807 | ||||||||||||||||||||
Construction | 9,965 | — | — | — | 9,965 | ||||||||||||||||||||
Commercial | 30,643 | 48 | — | — | 30,691 | ||||||||||||||||||||
Home equity | — | 200 | 999 | 91,262 | 92,461 | ||||||||||||||||||||
Indirect auto | — | — | — | 99,798 | 99,798 | ||||||||||||||||||||
Consumer | — | 9 | 4 | 545 | 558 | ||||||||||||||||||||
Total | $ | 347,701 | $ | 7,657 | $ | 15,053 | $ | 471,521 | $ | 841,932 | |||||||||||||||
(A) | Residential real estate, home equity, indirect auto and consumer loans are not formally risk rated by the Company unless the loans become delinquent. | ||||||||||||||||||||||||
The Company periodically modifies loans to extend the term or make other concessions to help a borrower stay current on their loan and to avoid foreclosure. The Company generally does not forgive principal or interest on loans or modify the interest rates on loans to those not otherwise available in the market. During the year ended December 31, 2014, four loans were modified and determined to be troubled debt restructurings (three of which had previously been restructured and determined to be troubled debt restructurings). During the year ended December 31, 2013, five loans were modified and determined to be troubled debt restructurings. At December 31, 2014, the Company had $9.2 million of troubled debt restructurings related to 10 loans. | |||||||||||||||||||||||||
The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated (in thousands): | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
TDRs on Accrual Status | $ | 7,675 | $ | 7,366 | |||||||||||||||||||||
TDRs on Nonaccrual Status | 1,551 | 1,900 | |||||||||||||||||||||||
Total TDRs | $ | 9,226 | $ | 9,266 | |||||||||||||||||||||
Amount of specific allocation included in the allowance for loan losses associated with TDRs | $ | 174 | $ | 543 | |||||||||||||||||||||
Additional commitments to lend to a borrower who has been a party to a TDR | $ | — | $ | — | |||||||||||||||||||||
The following table shows the TDR modifications which occurred during the periods indicated and the outstanding recorded investment subsequent to the modifications occurring: | |||||||||||||||||||||||||
Year ended | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | |||||||||||||||||||||||
Contracts | outstanding | outstanding | |||||||||||||||||||||||
recorded investment | recorded investment (a) | ||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||
Residential one-to-four family | 2 | $ | 2,224 | $ | 2,261 | ||||||||||||||||||||
Home equity lines of credit | 1 | 200 | 200 | ||||||||||||||||||||||
Commercial real estate | 1 | 882 | 882 | ||||||||||||||||||||||
4 | $ | 3,306 | $ | 3,343 | |||||||||||||||||||||
Year ended | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | |||||||||||||||||||||||
Contracts | outstanding | outstanding | |||||||||||||||||||||||
recorded investment | recorded investment (a) | ||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||
Residential one-to-four family | 1 | $ | 347 | $ | 378 | ||||||||||||||||||||
Commercial real estate | 4 | 4,732 | 4,128 | ||||||||||||||||||||||
5 | $ | 5,079 | $ | 4,506 | |||||||||||||||||||||
(a) | The post-modification balances represent the balance of the loan on the date of modifications. These amounts may show an increase when modifications include a capitalization of interest or taxes. | ||||||||||||||||||||||||
The following table shows the Company’s post-modification balance of TDRs listed by type of modification during the years indicated: | |||||||||||||||||||||||||
For the years ended | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Extended maturity | $ | 882 | $ | 1,370 | |||||||||||||||||||||
Adjusted interest rate | 561 | 3,136 | |||||||||||||||||||||||
Interest only period | 1,900 | — | |||||||||||||||||||||||
Total | $ | 3,343 | $ | 4,506 | |||||||||||||||||||||
The Company generally considers a TDR loan to have defaulted when it reaches 90 days past due. There were two TDRs in the amount of $1.9 million that have been modified during the twelve months ending on December 31, 2014 which have subsequently defaulted during the twelve months ending on December 31, 2014. During the twelve months ended December 31, 2014, we recorded charge offs of $573,000 related to these two loans and as of December 31, 2014 the one remaining loan with a balance of $1,551,000 was on non-accrual status. The loans previously had specific allowances of $555,000. There were no TDRs entered into during 2013 which have subsequently defaulted during 2013. There was one residential one to four family loan with a carrying amount of $1.7 million and one home equity line of credit with a carrying amount of $200,000 that were both modified and determined to be TDRs in 2012 that subsequently defaulted in 2013. | |||||||||||||||||||||||||
At December 31, 2014 and 2013, $518.4 million and $415.9 million in loans were pledged to secure FHLB advances. |
TRANSFERS_AND_SERVICING
TRANSFERS AND SERVICING | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
TRANSFERS AND SERVICING | NOTE 5 – TRANSFERS AND SERVICING | ||||||||||||
Certain residential mortgage loans are periodically sold by the Company to the secondary market. Most of these loans are sold without recourse and the Company retains the servicing rights. For loans sold with servicing rights retained, we provide the servicing for the loans on a per-loan fee basis. The Company also periodically sells auto loans to other financial institutions without recourse, and the Company generally provides servicing for these loans. Mortgage loans sold for cash during the years ended December 31, 2014, 2013 and 2012 were $16.0 million, $34.2 million and $97.7 million, respectively with net gains recognized in non-interest income of $348,000, $798,000 and $1,731,000, respectively. Auto loans sold for cash during the years ended December 31, 2014, 2013 and 2012 were $17.5 million, $63.6 million and $99.7 million, respectively with net gains recognized in non-interest income of $138,000, $226,000 and $789,000, respectively. At December 31, 2014 and 2013, residential mortgage loans previously sold and serviced by the Company were $69.5 million and $61.2, respectively. At December 31, 2014 and 2013, auto loans previously sold and serviced by the Company were $94.7 million and $124.8 million, respectively. There were no liabilities incurred during the years ended December 31, 2014 and 2013 in connection with these loan sales. | |||||||||||||
On March 16, 2006, seventeen loans with an aggregate principal balance of $10.5 million were sold to another financial institution. The agreement related to this sale contains provisions requiring the Company during the initial 120 months to repurchase any loan that becomes 90 days past due. The Company will repurchase the past due loan for 100 percent of the unpaid principal plus interest to repurchase date. As of December 31, 2014 and 2013, the principal balance of these loans sold with recourse amounted to $1.1 million. The Company has not incurred, nor expects to incur, any losses related to the loans sold with recourse. | |||||||||||||
Changes in mortgage servicing rights, which are included in other assets, were as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 411 | $ | 353 | $ | — | |||||||
Capitalization | 128 | 202 | 421 | ||||||||||
Amortization | (75 | ) | (101 | ) | (32 | ) | |||||||
Valuation allowance adjustment | 12 | (43 | ) | (36 | ) | ||||||||
Balance at end of period | $ | 476 | $ | 411 | $ | 353 | |||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recorded adjustments to the valuation allowance of $(12,000), $43,000 and $36,000, respectively, for the mortgage servicing rights. As of December 31, 2014, the fair value of mortgage servicing rights approximated carrying value. |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PREMISES AND EQUIPMENT | NOTE 6 – PREMISES AND EQUIPMENT | ||||||||
A summary of the cost and accumulated depreciation of premises and equipment follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 161 | $ | 161 | |||||
Buildings | 3,505 | 3,331 | |||||||
Leasehold improvements | 2,165 | 2,152 | |||||||
Furniture and equipment | 6,040 | 5,925 | |||||||
11,871 | 11,569 | ||||||||
Accumulated depreciation | (8,805 | ) | (8,242 | ) | |||||
$ | 3,066 | $ | 3,327 | ||||||
Depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012 amounted to $761,000, $716,000 and $517,000, respectively. During the year ended December 31, 2013, we purchased a new telephone system and determined that certain assets related to our previous system had no future economic benefit to the Company and recorded an impairment charge of $41,000 within equipment expense on the consolidated statement of operations. |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
DEPOSITS | NOTE 7 – DEPOSITS | ||||
The aggregate amount of time deposits in denominations that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2014 and 2013 was $37.1 million and $23.5 million, respectively. | |||||
At December 31, 2014, the scheduled maturities of time deposits are as follows: | |||||
2015 | $ | 62,028 | |||
2016 | 25,969 | ||||
2017 | 26,375 | ||||
2018 | 68,030 | ||||
2019 | 43,811 | ||||
$ | 226,213 | ||||
Included in time deposits are brokered deposits of $85.1 million at December 31, 2014 and $18.7 million at December 31, 2013. |
SHORTTERM_BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2014 | |
SHORT-TERM BORROWINGS | NOTE 8 – SHORT-TERM BORROWINGS |
Federal Home Loan Bank Advances | |
Fixed rate FHLB advances with an original maturity of less than one year, amounted to $182.0 million and $80.0 million at December 31, 2014 and 2013, respectively, at a weighted average rate of 0.25% and 0.17%, respectively. The Bank also has an available line of credit with the FHLB at an interest rate that adjusts daily. All borrowings from the FHLB are secured by a blanket security agreement on qualified collateral, principally mortgage loans, commercial loans and U.S. government sponsored mortgage backed securities in an aggregate amount equal to outstanding advances. | |
Securities Sold Under Agreements to Repurchase | |
Securities sold under agreements to repurchase amounted to $1.4 million and $2.1 million at December 31, 2014 and 2013, respectively, mature on a daily basis and are secured by U.S. government sponsored mortgage backed securities. The weighted average interest rate on these agreements was 0.15% at December 31, 2014 and 2013. The obligations to repurchase the securities sold are reflected as a liability in the consolidated balance sheets. The dollar amounts of the securities underlying the agreements remain in the asset accounts. The securities pledged are registered in the Company’s name; however, the securities are held by the designated trustee of the broker. Upon maturity of the agreements, the identical securities pledged as collateral are returned to the Company. |
LONGTERM_BORROWINGS
LONG-TERM BORROWINGS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
LONG-TERM BORROWINGS | NOTE 9 – LONG-TERM BORROWINGS | ||||||||||||||||
Long-term debt at December 31, 2014 and 2013 consists of the following FHLB advances: | |||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Fixed rate advances maturing: | |||||||||||||||||
2014 | — | $ | 9,000 | — | % | 1.26 | % | ||||||||||
2015 | $ | 14,100 | 14,100 | 1.17 | % | 1.17 | % | ||||||||||
2016 | 7,000 | 7,000 | 1.39 | % | 1.39 | % | |||||||||||
2017 | 35,000 | 15,000 | 1.14 | % | 0.9 | % | |||||||||||
2018 | 27,000 | 17,000 | 1.88 | % | 1.93 | % | |||||||||||
2019 | 20,000 | — | 1.89 | % | — | % | |||||||||||
$ | 103,100 | $ | 62,100 | 1.5 | % | 1.35 | % | ||||||||||
Other borrowed funds consist of the balance of loans sold with recourse (see Note 5). |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES | NOTE 10 – INCOME TAXES | ||||||||||||
Allocation of federal and state income taxes between current and deferred portions is as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current tax provision: | |||||||||||||
Federal | $ | 2,517 | $ | 1,615 | $ | 401 | |||||||
State | 653 | 388 | 59 | ||||||||||
3,170 | 2,003 | 460 | |||||||||||
Deferred tax (benefit) provision: | |||||||||||||
Federal | (419 | ) | (606 | ) | 195 | ||||||||
State | (136 | ) | (175 | ) | 58 | ||||||||
(555 | ) | (781 | ) | 253 | |||||||||
Change in valuation allowance | (53 | ) | (180 | ) | — | ||||||||
Total provision for income taxes | $ | 2,562 | $ | 1,042 | $ | 713 | |||||||
The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal tax rate | 34 | % | 34 | % | 34 | % | |||||||
Increase (decrease) resulting from: | |||||||||||||
State taxes, net of federal tax benefit | 5 | 4.8 | 3.7 | ||||||||||
Bank-owned life insurance | (3.9 | ) | (4.1 | ) | (5.8 | ) | |||||||
Change in valuation allowance | (0.8 | ) | (6.0 | ) | — | ||||||||
Share based compensation | 2.9 | 5.6 | 1.3 | ||||||||||
Other, net | 0.2 | 0.4 | 0.5 | ||||||||||
Effective tax rates | 37.4 | % | 34.7 | % | 33.7 | % | |||||||
The components of the net deferred tax asset are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Employee benefit and deferred compensation plans | $ | 3,035 | $ | 2,766 | |||||||||
Allowance for loan losses | 3,582 | 3,224 | |||||||||||
Depreciation | 90 | — | |||||||||||
Accrued rent | 11 | 11 | |||||||||||
Interest on non-performing loans | 8 | 8 | |||||||||||
Stock options | 272 | 144 | |||||||||||
Charitable contribution carryover | 190 | 502 | |||||||||||
Unrealized loss on securities available for sale | 48 | 140 | |||||||||||
ESOP | 74 | 53 | |||||||||||
Gross deferred tax assets | 7,310 | 6,848 | |||||||||||
Valuation allowance | — | (53 | ) | ||||||||||
7,310 | 6,795 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Mortgage servicing rights | (190 | ) | (164 | ) | |||||||||
Deferred loan origination costs | (934 | ) | (624 | ) | |||||||||
Restricted stock awards | (483 | ) | (651 | ) | |||||||||
Depreciation | — | (110 | ) | ||||||||||
Unrecognized retirement benefit | (34 | ) | (14 | ) | |||||||||
Other | (27 | ) | (86 | ) | |||||||||
(1,668 | ) | (1,649 | ) | ||||||||||
Net deferred tax asset | $ | 5,642 | $ | 5,146 | |||||||||
A valuation reserve had been established for the income tax effects attributable to the deferred tax assets to limit the federal and state tax benefit related to the charitable contribution carryover. | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | (53 | ) | $ | (233 | ) | $ | (233 | ) | ||||
Reserve for charitable contribution carryforward | — | — | — | ||||||||||
Reduction in valuation allowance | 53 | 180 | — | ||||||||||
$ | — | $ | (53 | ) | $ | (233 | ) | ||||||
The Company does not have any uncertain tax positions at December 31, 2014 or 2013 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2011 through 2014. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2011 are open. | |||||||||||||
In prior years, the Company was allowed a special tax-basis bad debt deduction under certain provisions of the Internal Revenue Code. As a result, retained earnings of the Company as of December 31, 2014 and 2013 includes approximately $3.6 million for which federal and state income taxes have not been provided. If the Company no longer qualifies as a bank as defined in certain provisions of the Internal Revenue Code, this amount will be subject to recapture in taxable income ratably over four (4) years, subject to a combined federal and state tax rate of approximately 40%. |
OFFBALANCE_SHEET_ACTIVITIES
OFF-BALANCE SHEET ACTIVITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
OFF-BALANCE SHEET ACTIVITIES | NOTE 11 – OFF-BALANCE SHEET ACTIVITIES | ||||||||
Credit-Related Financial Instruments | |||||||||
The Company is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. | |||||||||
The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. | |||||||||
At December 31, 2014 and 2013, the following financial instruments were outstanding whose contract amounts represent credit risk: | |||||||||
Contract Amount | |||||||||
2014 | 2013 | ||||||||
Commitments to grant loans | $ | 21,594 | $ | 27,588 | |||||
Unfunded commitments under lines of credit | 183,512 | 132,825 | |||||||
Unadvanced portion of construction loans | 13,466 | 14,066 | |||||||
Standby letters of credit | 177 | 80 | |||||||
Commitments to purchase loans | 32,883 | 15,383 | |||||||
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. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. | |||||||||
Unfunded commitments under commercial lines-of-credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines-of-credit are uncollateralized and usually do not contain a specified maturity date and ultimately may not be drawn upon to the total extent to which the Company is committed. | |||||||||
Standby letters-of-credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters-of-credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters-of-credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting those commitments. | |||||||||
Commitments to purchase loans are conditional commitments issued by the Company to purchase loans through select correspondent mortgage companies who originate and sell loans as part of their operations. Typically the commitment to purchase is valid as long as there is no violation of any condition established in the correspondent contract. Commitments generally have fixed expiration dates or other termination clauses and generally do not require payment of a fee. |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 12 – COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Pursuant to the terms of noncancelable lease agreements in effect at December 31, 2014, pertaining to banking premises and equipment, future minimum rent commitments under various operating leases are as follows: | |||||
2015 | $ | 427 | |||
2016 | 413 | ||||
2017 | 322 | ||||
2018 | 276 | ||||
2019 | 281 | ||||
Thereafter | 503 | ||||
$ | 2,222 | ||||
Certain leases contain provisions for escalation of minimum lease payments contingent upon increases in real estate taxes and percentage increases in the consumer price index. Also, certain leases contain options to extend for periods from one to ten years. The cost of such rentals is not included above. Total rent expense for the years ended December 31, 2014, 2013 and 2012 amounted to $407,000, $353,000 and $291,000, respectively. |
LEGAL_CONTINGENCIES
LEGAL CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
LEGAL CONTINGENCIES | NOTE 13 – LEGAL CONTINGENCIES |
In the normal course of business, there are various outstanding legal proceedings. In the opinion of management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings. |
MINIMUM_REGULATORY_CAPITAL_REQ
MINIMUM REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
MINIMUM REGULATORY CAPITAL REQUIREMENTS | NOTE 14 – MINIMUM REGULATORY CAPITAL REQUIREMENTS | ||||||||||||||||||||||||
The Company’s primary source of cash is dividends from the Bank. The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. In addition, the dividends declared cannot be in excess of the amount which would cause the Bank to fall below the minimum required for capital adequacy purposes. | |||||||||||||||||||||||||
The Company (on a consolidated basis) 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 the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their 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 bank holding companies. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital to average assets (as defined). Management believes, as of December 31, 2014 and 2013, that the Company and the Bank meet all capital adequacy requirements to which they are subject. | |||||||||||||||||||||||||
As of December 31, 2014, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2014 and 2013 are also presented in the following table. | |||||||||||||||||||||||||
Actual | Minimum For Capital | Minimum To Be Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized Under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 145,653 | 12.99 | % | $ | 89,718 | 8 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 137,139 | 12.23 | % | 89,673 | 8 | % | $ | 112,092 | 10 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 136,684 | 12.19 | % | $ | 44,859 | 4 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 128,170 | 11.43 | % | 44,837 | 4 | % | $ | 67,255 | 6 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | $ | 136,684 | 10.05 | % | $ | 54,417 | 4 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 128,170 | 9.42 | % | 54,403 | 4 | % | $ | 68,003 | 5 | % | |||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 138,146 | 16.3 | % | $ | 67,806 | 8 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 117,849 | 13.91 | % | 67,782 | 8 | % | $ | 84,728 | 10 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 130,074 | 15.35 | % | $ | 33,903 | 4 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 109,777 | 12.96 | % | 33,891 | 4 | % | $ | 50,837 | 6 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | $ | 130,074 | 12.59 | % | $ | 41,323 | 4 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 109,777 | 10.62 | % | 41,334 | 4 | % | $ | 51,668 | 5 | % | |||||||||||||||
Basel III: | |||||||||||||||||||||||||
On July 2, 2013, the Federal Reserve Bank (FRB) approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks. On July 9, 2013, the FDIC also approved, as an interim final rule, the regulatory capital requirements for U.S. banks, following the actions of the FRB. On April 8, 2014, the FDIC adopted as final its interim final rule, which is identical in substance to the final rules issued by the FRB in July 2013. Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by the Bank. The rules include a new common equity Tier 1 capital risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A new capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer will be phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. | |||||||||||||||||||||||||
The phase-in period for the final rules will begin for the Bank on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule and should be fully phased-in by January 1, 2019. Management believes that the Bank’s capital levels will remain characterized as “well-capitalized” under the new rules. | |||||||||||||||||||||||||
Stock Repurchase Plans. From time to time, the Company’s board of directors has authorized stock repurchase plans. In general, stock repurchase plans allow the Company to proactively manage its capital position and return excess capital to shareholders. During the twelve months ended December 31, 2013, the Company purchased 476,622 shares of its common stock for $6.5 million and completed the first stock repurchase program. As of December 31, 2014 and December 31, 2013, the Company had an active stock repurchase plan to repurchase up to 500,000 shares of the Company’s common stock. During the twelve months ended December 31, 2014 and December 31, 2013, no shares were repurchased under the second active repurchase plan. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
EMPLOYEE BENEFIT PLANS | NOTE 15 – EMPLOYEE BENEFIT PLANS | ||||||||
Supplemental Retirement Plans | |||||||||
The Company has supplemental retirement plans for eligible executive officers that provide for a lump sum benefit upon termination of employment at or after age 55 and completing 10 or more years of service (certain reduced benefits are available prior to attaining age 55 or fewer than 10 years of service), subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the service period. The estimated liability at December 31, 2014 and 2013 relating to these plans was $1.8 million and $1.5 million, respectively. The discount rate used to determine the Company’s obligation was 4.0% in 2014 and 5.0% in 2013. The projected rate of salary increase was 3.0% in 2014 and 2013. | |||||||||
The Company has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Company, subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the estimated period of service. The estimated liability at December 31, 2014 and 2013 relating to this plan was $648,000 and $553,000, respectively. The discount rate used to determine the Company’s obligation was 4.0% in 2014 and 5.0% in 2013. | |||||||||
Effective October 1, 2010, the Company established the Belmont Savings Bank Supplemental Executive Retirement Plan (Plan). The purpose of the Plan is to permit certain employees of the Company to receive supplemental retirement income from the Company. At December 31, 2014 and 2013, there were four and three participants in the Plan, respectively. Participants are fully vested after the completion of between five and ten years of service. The plan is unfunded. Information pertaining to the activity in the plan is as follows: | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Change in benefit obligation: | |||||||||
Benefit obligation at beginning of year | $ | 729 | $ | 538 | |||||
Service cost | 258 | 242 | |||||||
Interest cost | 40 | 21 | |||||||
Establish prior service cost base | 63 | — | |||||||
Actuarial gain | (105 | ) | (72 | ) | |||||
Benefit obligation at end of year | 985 | 729 | |||||||
Funded status at end of year | $ | (985 | ) | $ | (729 | ) | |||
Accrued pension benefit | (1,069 | ) | (765 | ) | |||||
Accumulated benefit obligation | $ | 857 | $ | 670 | |||||
The assumptions used to determine the benefit obligation are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Discount rate | 4 | % | 5 | % | |||||
Rate of compensation increase | 3 | % | 3 | % | |||||
The components of net periodic pension cost are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Service cost | $ | 258 | $ | 242 | |||||
Interest cost | 40 | 21 | |||||||
Amortization of prior service cost | 6 | — | |||||||
Net periodic cost | $ | 304 | $ | 263 | |||||
Other changes in benefit obligations recognized in other comprehensive income are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Establish prior service cost base | $ | 63 | $ | — | |||||
Amortization of prior service cost | (6 | ) | — | ||||||
Net actuarial gain | (105 | ) | (72 | ) | |||||
Total recognized in other comprehensive income | $ | (48 | ) | $ | (72 | ) | |||
The assumptions used to determine net periodic pension cost are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Discount rate | 5 | % | 4 | % | |||||
Rate of compensation increase | 3 | % | 3 | % | |||||
Amounts recognized in accumulated other comprehensive loss, before tax effect, consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Unrecognized prior service cost | $ | 57 | $ | — | |||||
Unrecognized net gain | (141 | ) | (36 | ) | |||||
$ | (84 | ) | $ | (36 | ) | ||||
The estimated net actuarial gain and prior service cost that will be (accreted) amortized from accumulated other comprehensive loss into net periodic pension expense during the year ending December 31, 2015 are $(8,000) and $6,000, respectively. | |||||||||
The Company does not expect to contribute to the Plan in 2015. | |||||||||
Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows: | |||||||||
Year Ending | Amount | ||||||||
December 31, | |||||||||
2015 | $ | — | |||||||
2016 | — | ||||||||
2017 | 101 | ||||||||
2018 | 101 | ||||||||
2019 | 101 | ||||||||
Years 2020-2024 | $ | 1,298 | |||||||
Total supplemental retirement plan expense amounted to $688,000, $405,000 and $507,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
Incentive Compensation Plan | |||||||||
The Incentive Compensation Plan is a discretionary annual cash-based incentive plan that is an integral part of the participant’s total compensation package and supports the continued growth and profitability of Belmont Savings Bank. Each year participants are awarded for the achievement of certain performance objectives on a company-wide and individual basis. Compensation expense recognized was $1.8 million, $1.4 million and $1.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
Defined Contribution Plan | |||||||||
The Company sponsors a 401(k) plan covering substantially all employees meeting certain eligibility requirements. Under the provisions of the plan, employees are able to contribute up to an annual limit of the lesser of 75% of eligible compensation or the maximum allowed by the Internal Revenue Service. The Company’s contributions for the years ended December 31, 2014, 2013 and 2012 totaled $757,000, $729,000 and $635,000, respectively. | |||||||||
Deferred Compensation Plan | |||||||||
The Company has a deferred compensation plan by which selected employees and directors of the Company are entitled to elect, prior to the beginning of each year, to defer the receipt of an amount of their compensation for the forthcoming year. On April 1, 2013, the Company entered into deferred compensation agreements with certain Directors and employees of the Company. Each agreement allows for the individual to elect to defer a portion of his or her compensation to an individual deferred compensation account established by Belmont Savings Bank. Prior to April 1, 2013, each individual’s deferred compensation account balance was credited with earnings on a monthly basis based on the five year certificate of deposit yield as published by the Wall Street Journal. In April 2013, Belmont Savings Bank created a Rabbi Trust, or grantor trust. The Rabbi Trust is maintained by the Company primarily for purposes of providing deferred compensation for certain Directors and employees of the Company and replaced the existing agreements for non-retired participants with a Belmont Savings Bank Deferred Compensation Plan. The new plan is administered by a third party and permits participants to select from a number of investment options for the investment of their account balances. Each participant is always 100% vested in his or her deferred compensation account balance. Individuals that were retired as of April 1, 2013 continue to participate in the existing Salary Deferral Plan. As of December 31, 2014 and December 31, 2013, the recorded liability relating to the Rabbi Trust was $2.3 million and $2.2 million, respectively. The recorded liability at December 31, 2014 and 2013 relating to the Salary Deferral Plan was $14,000 and $91,000, respectively. | |||||||||
Capital Appreciation Plan | |||||||||
Effective September 30, 2010, the Company established the Capital Appreciation Plan. The purpose of this plan is to attract, retain, and motivate certain key employees and directors of the Company. Eligible participants may receive an award based on capital appreciation of the Bank and the Bank’s return on average assets, entitling the employee or director to a specific percentage of the Employee or Trustee Capital Appreciation Pool as outlined in the plan. The vesting period ended on June 30, 2014 and the plan was completed. Participants were paid lump sums totaling $266,000. The Company recognized $61,000, $113,000 and $92,000 of expense in relation to the plan during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
Employee Stock Ownership Plan | |||||||||
The Company maintains an Employee Stock Ownership Plan (“ESOP”) to provide eligible employees the opportunity to own Company stock. This plan is a tax-qualified retirement plan for the benefit of all Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax law limits. | |||||||||
The Company contributed funds to a subsidiary to enable it to grant a loan to the ESOP for the purchase of 458,643 shares of the Company’s common stock at a price of $10.00 per share. The loan obtained by the ESOP from the Company’s Subsidiary to purchase Company common stock is payable annually over 30 years at a rate per annum equal to the Prime Rate (3.25% at December 31, 2014). Loan payments are principally funded by cash contributions from the Company. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. Cash dividends paid on allocated shares are distributed to participants and cash dividends paid on unallocated shares are used to repay the outstanding debt of the ESOP. Shares used as collateral to secure the loan are released and available for allocation to eligible employees as the principal and interest on the loan is paid. | |||||||||
At December 31, 2014, the remaining principal balance on the ESOP debt is payable as follows: | |||||||||
Years Ending | Amount | ||||||||
December 31, | |||||||||
2015 | $ | 102 | |||||||
2016 | 105 | ||||||||
2017 | 109 | ||||||||
2018 | 113 | ||||||||
2019 | 116 | ||||||||
Thereafter | 3,730 | ||||||||
$ | 4,275 | ||||||||
Shares held by the ESOP include the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Unallocated | 408,955 | 424,271 | |||||||
Allocated | 47,295 | 34,372 | |||||||
456,250 | 458,643 | ||||||||
The fair value of unallocated shares was approximately $7.6 million at December 31, 2014 and $6.4 million at December 31, 2013. Total compensation expense recognized in connection with the ESOP for the years ended December 31, 2014, 2013 and 2012 was $268,000, $209,000 and $185,000, respectively. | |||||||||
Severance Agreements | |||||||||
The Company has entered into employment agreements and change in control agreements with certain executive officers which would provide the executive officers with severance payments based on salary, and the continuation of other benefits, upon a change in control as defined in the agreements. |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
STOCK BASED COMPENSATION | NOTE 16 – STOCK BASED COMPENSATION | ||||||||||||||||||||||||
On November 14, 2012, the stockholders of BSB Bancorp, Inc. approved the BSB Bancorp, Inc. 2012 Equity Incentive Plan. | |||||||||||||||||||||||||
The following table presents the amount of cumulatively granted stock options and restricted stock awards, net of forfeitures, through December 31, 2014 under the BSB Bancorp, Inc. 2012 Equity Incentive Plan: | |||||||||||||||||||||||||
Authorized | Authorized | Authorized | Cumulative Granted | Outstanding | |||||||||||||||||||||
Stock | Restricted | Total | Net of Forfeitures | Total | |||||||||||||||||||||
Option Awards | Stock Awards | Stock | Restricted | ||||||||||||||||||||||
Option Awards | Stock Awards | ||||||||||||||||||||||||
917,286 | 366,914 | 1,284,200 | 886,040 | 363,570 | 1,249,610 | ||||||||||||||||||||
The following table presents the pre-tax expense associated with stock option and restricted stock awards and the related tax benefits recognized: | |||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Stock based compensation expense | |||||||||||||||||||||||||
Stock options | $ | 847 | $ | 778 | |||||||||||||||||||||
Restricted stock awards | 906 | 869 | |||||||||||||||||||||||
Total stock based award expense | $ | 1,753 | $ | 1,647 | |||||||||||||||||||||
Related tax benefits recognized in earnings | $ | 511 | $ | 481 | |||||||||||||||||||||
No cash was paid by the Company to settle equity instruments granted under stock-based compensation arrangements during the year ended December 31, 2014. | |||||||||||||||||||||||||
Total compensation cost related to non-vested awards not yet recognized and the weighted average period (in years) over which it is expected to be recognized is as follows: | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Amount | Weighted | ||||||||||||||||||||||||
average period | |||||||||||||||||||||||||
Stock options | $ | 2,195 | 3 | ||||||||||||||||||||||
Restricted stock | 2,313 | 2.9 | |||||||||||||||||||||||
Total | $ | 4,508 | |||||||||||||||||||||||
The Company granted 23,760, 10,000, and 10,414 stock option awards on January 8, 2014, May 1, 2014 and October 8, 2014, respectively. The fair value of the stock options granted was estimated on the date of the grant using the Black-Scholes option pricing model with the following assumptions used: | |||||||||||||||||||||||||
• | Expected volatility is based on the standard deviation of the historical volatility of the daily adjusted closing price of the Company’s shares. | ||||||||||||||||||||||||
• | Expected term represents the period of time that the option is expected to be outstanding. The Company determined the expected life using the “Simplified Method.” | ||||||||||||||||||||||||
• | Expected dividend yield is determined based on management’s expectations regarding issuing dividends in the foreseeable future. | ||||||||||||||||||||||||
• | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. | ||||||||||||||||||||||||
• | The stock-based compensation expense recognized in earnings is based on the amount of awards ultimately expected to vest, therefore a forfeiture assumption is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense recognized in 2014 and 2013 has been reduced for annualized estimated forfeitures of 7% for grants to employees, based on historical experience. | ||||||||||||||||||||||||
Year ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Date of grant | 1/8/14 | 5/1/14 | 10/8/14 | ||||||||||||||||||||||
Exercise price | $ | 15.26 | $ | 17.43 | $ | 18.31 | |||||||||||||||||||
Vesting period (1) | 5 years | 5 years | 5 years | ||||||||||||||||||||||
Expiration date | 1/8/24 | 5/1/24 | 10/8/24 | ||||||||||||||||||||||
Expected volatility | 15.64 | % | 15.98 | % | 15.69 | % | |||||||||||||||||||
Expected term | 6.5 years | 6.5 years | 6.5 years | ||||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
Risk free interest rate | 2.27 | % | 2.07 | % | 1.91 | % | |||||||||||||||||||
Fair value | $ | 3.44 | $ | 3.87 | $ | 3.93 | |||||||||||||||||||
1- | Vesting period begins on the date of grant | ||||||||||||||||||||||||
The option exercise price is derived from trading value on the date of grant. | |||||||||||||||||||||||||
A summary of the status of the Company’s Stock Option and Restricted Stock Awards for the year ended December 31, 2014 is presented in the tables below: | |||||||||||||||||||||||||
Outstanding and exercisable | Non-vested | ||||||||||||||||||||||||
Stock option | Weighted average | Weighted average | Stock option | Weighted average | Weighted average | ||||||||||||||||||||
awards | exercise price | remaining | awards | grant date | remaining | ||||||||||||||||||||
contractual term | fair value | contractual term | |||||||||||||||||||||||
Balance at January 1, 2014 | 162,370 | $ | 12.04 | 8.91 | 690,663 | $ | 4.71 | 8.95 | |||||||||||||||||
Granted | — | — | 44,174 | 3.65 | 9.28 | ||||||||||||||||||||
Exercised | (23,076 | ) | 12.16 | 7.97 | — | — | — | ||||||||||||||||||
Vested | 144,248 | 12.12 | 7.95 | (144,248 | ) | 4.71 | 7.95 | ||||||||||||||||||
Forfeited | (917 | ) | 12.04 | 7.92 | (10,250 | ) | 3.93 | 9.78 | |||||||||||||||||
Balance at December 31, 2014 | 282,625 | $ | 12.08 | 8.42 | 580,339 | $ | 4.65 | 8.81 | |||||||||||||||||
Non-vested | |||||||||||||||||||||||||
restricted stock | |||||||||||||||||||||||||
awards | |||||||||||||||||||||||||
Balance at January 1, 2014 | 287,648 | ||||||||||||||||||||||||
Granted | 4,000 | ||||||||||||||||||||||||
Vested | (74,554 | ) | |||||||||||||||||||||||
Balance at December 31, 2014 | 217,094 | ||||||||||||||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
EARNINGS PER SHARE | NOTE 17 – EARNINGS PER SHARE | ||||||||||||
Earnings per share consisted of the following components for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income | $ | 4,291 | $ | 1,960 | $ | 1,401 | |||||||
Undistributed earnings attributable to participating securities | (139 | ) | (79 | ) | (5 | ) | |||||||
Net income available to common stockholders | $ | 4,152 | $ | 1,881 | $ | 1,396 | |||||||
Weighted average shares outstanding, basic | 8,361,880 | 8,419,437 | 8,727,615 | ||||||||||
Effect of dilutive shares | 91,547 | — | — | ||||||||||
Weighted average shares outstanding, assuming dilution | 8,453,427 | 8,419,437 | 8,727,615 | ||||||||||
Basic EPS | $ | 0.5 | $ | 0.22 | $ | 0.16 | |||||||
Effect of dilutive shares | (0.01 | ) | — | — | |||||||||
Diluted EPS | $ | 0.49 | $ | 0.22 | $ | 0.16 | |||||||
For 2014, 2013 and 2012, average options to purchase 19,368, 850,180 and 79,446 shares of common stock were outstanding, respectively, but not included in the computation of EPS because they were antidilutive under the treasury stock method. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
RELATED PARTY TRANSACTIONS | NOTE 18 – RELATED PARTY TRANSACTIONS |
In the ordinary course of business, the Bank has granted loans to principal officers and directors and their affiliates. As of December 31, 2014 and 2013, related party loans were not significant. |
RESTRICTIONS_ON_DIVIDENDS_LOAN
RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES | 12 Months Ended |
Dec. 31, 2014 | |
RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES | NOTE 19 – RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES |
Federal and state banking regulations place certain restrictions on dividends paid and loans or advances made by the Bank to the Company. The total amount for dividends which may be paid in any calendar year cannot exceed the Bank’s net income for the current year, plus the Bank’s net income retained for the two previous years, without regulatory approval. Loans or advances are limited to 10 percent of the Bank’s capital stock and surplus on a secured basis. | |
In addition, dividends paid by the Bank to the Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. |
FAIR_VALUES_OF_ASSETS_AND_LIAB
FAIR VALUES OF ASSETS AND LIABILITIES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
FAIR VALUES OF ASSETS AND LIABILITIES | NOTE 20 – FAIR VALUES OF ASSETS AND LIABILITIES | ||||||||||||||||||||
Determination of Fair Value | |||||||||||||||||||||
The fair value of an asset or liability 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. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flows 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. | |||||||||||||||||||||
The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability and reliability of the assumptions used to determine fair value. | |||||||||||||||||||||
Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||||||||||||||||
Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||||||||||||||||||||
Level 3 - Level 3 inputs are unobservable inputs for the asset or liability. | |||||||||||||||||||||
For assets and liabilities, fair value is based upon the lowest level of observable input that is significant to the fair value measurement. | |||||||||||||||||||||
In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market based parameters. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies 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 estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value for December 31, 2014 and 2013. There were no significant transfers between level 1 and level 2 of the fair value hierarchy during the year ended December 31, 2014. | |||||||||||||||||||||
Financial Assets and Financial Liabilities: Financial assets and financial liabilities measured at fair value on a recurring basis include the following: | |||||||||||||||||||||
Securities Available for Sale: The Company’s investment in mortgage-backed securities and other debt securities is generally classified within level 2 of the fair value hierarchy. For these securities, the Company obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that may include reported trades, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. | |||||||||||||||||||||
Rabbi Trust Investments: Rabbi Trust investments consist primarily of cash and cash equivalents, mutual funds and both U.S. government agency and corporate obligations, and were recorded at fair value and included in other assets. The purpose of these Rabbi Trust investments is to fund certain director and executive non-qualified retirement benefits and deferred compensation. For cash and cash equivalents, which have maturities of 90 days or less, their carrying amounts reported in the consolidated balance sheets approximate fair value and were categorized as Level 1. The fair value of other U.S. government agency and corporate obligations was estimated using either a matrix or benchmarks for similar securities. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. These securities were categorized as Level 2. The equity securities and other exchange-traded funds were valued based on quoted prices from the market. The equities and exchange-traded funds traded in an active market were categorized as Level 1. | |||||||||||||||||||||
The following table summarizes financial assets measured at fair value on a recurring basis as of December 31, 2014 and 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Fair Value | |||||||||||||||||||||
At December 31, 2014 | |||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||
Corporate debt securities | $ | — | $ | 22,079 | $ | — | $ | 22,079 | |||||||||||||
Trading securities | |||||||||||||||||||||
Rabbi trust investments | 2,336 | — | — | 2,336 | |||||||||||||||||
Totals | $ | 2,336 | $ | 22,079 | $ | — | $ | 24,415 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Fair Value | |||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||
Corporate debt securities | $ | — | $ | 21,921 | $ | — | $ | 21,921 | |||||||||||||
Trading securities | |||||||||||||||||||||
Rabbi trust investments | 2,181 | 53 | — | 2,234 | |||||||||||||||||
Totals | $ | 2,181 | $ | 21,974 | $ | — | $ | 24,155 | |||||||||||||
Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods include certain impaired loans reported at the fair value of the underlying collateral. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates, and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, real estate collateral related nonrecurring fair value measurement adjustments have generally been classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. | |||||||||||||||||||||
The following table presents certain impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral at December 31, 2014 and 2013: | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 1,951 | |||||||||||||||
Totals | $ | — | $ | — | $ | 1,951 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 3,199 | |||||||||||||||
Totals | $ | — | $ | — | $ | 3,199 | |||||||||||||||
Non-Financial Assets and Non-Financial Liabilities: The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment). Non-financial assets measured at fair value on a non-recurring basis during the reported periods include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. Non-financial assets also include mortgage servicing right assets that are remeasured and reported at the lower of cost or fair value. The following tables (in thousands) present the non-financial assets that were re-measured and reported at the lower of cost or fair value at the periods indicated: | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Mortgage servicing rights | $ | — | $ | — | $ | 476 | |||||||||||||||
Totals | $ | — | $ | — | $ | 476 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Mortgage servicing rights | $ | — | $ | — | $ | 411 | |||||||||||||||
Totals | $ | — | $ | — | $ | 411 | |||||||||||||||
There were no foreclosed assets at December 31, 2014 or 2013. | |||||||||||||||||||||
ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The estimated fair value approximates carrying value for cash and cash equivalents, FHLB stock, accrued interest, securities sold under agreements to repurchase, and mortgagors’ escrow accounts. The methodologies for other financial assets and financial liabilities are discussed below: | |||||||||||||||||||||
Securities held to maturity-The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analyses. | |||||||||||||||||||||
Loans- For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. | |||||||||||||||||||||
Deposits- The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificate accounts are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on certificate accounts. | |||||||||||||||||||||
FHLB advances- The fair values of the Company’s FHLB advances are estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements. | |||||||||||||||||||||
Summary of Fair Values of Financial Instruments not Carried at Fair Value | |||||||||||||||||||||
The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments are as follows: | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Carrying | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | Value | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 51,767 | $ | 51,767 | $ | 51,767 | $ | — | $ | — | |||||||||||
Interest-bearing time deposits with other banks | 131 | 132 | — | 132 | — | ||||||||||||||||
Held-to-maturity securities | 118,528 | 119,447 | — | 119,447 | — | ||||||||||||||||
Federal Home Loan Bank stock | 13,712 | 13,712 | — | 13,712 | — | ||||||||||||||||
Loans, net | 1,179,399 | 1,170,663 | — | — | 1,170,663 | ||||||||||||||||
Accrued interest receivable | 2,977 | 2,977 | 2,977 | — | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 984,562 | 987,353 | 758,349 | 229,004 | — | ||||||||||||||||
Federal Home Loan Bank advances | 285,100 | 285,266 | — | 285,266 | — | ||||||||||||||||
Securities sold under agreements to repurchase | 1,392 | 1,392 | — | 1,392 | — | ||||||||||||||||
Other borrowed funds | 1,067 | 1,056 | — | 1,056 | — | ||||||||||||||||
Accrued interest payable | 961 | 961 | 961 | — | — | ||||||||||||||||
Mortgagor’s escrow accounts | 1,726 | 1,726 | — | 1,726 | — | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Carrying | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | Value | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 38,042 | $ | 38,042 | $ | 38,042 | $ | — | $ | — | |||||||||||
Interest-bearing time deposits with other banks | 119 | 119 | — | 119 | — | ||||||||||||||||
Held-to-maturity securities | 119,776 | 118,981 | — | 118,981 | — | ||||||||||||||||
Federal Home Loan Bank stock | 7,712 | 7,712 | — | 7,712 | — | ||||||||||||||||
Loans, net | 839,013 | 833,423 | — | — | 833,423 | ||||||||||||||||
Accrued interest receivable | 2,241 | 2,241 | 2,241 | — | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 764,753 | 767,494 | 618,570 | 148,924 | — | ||||||||||||||||
Federal Home Loan Bank advances | 142,100 | 141,960 | — | 141,960 | — | ||||||||||||||||
Securities sold under agreements to repurchase | 2,127 | 2,127 | — | 2,127 | — | ||||||||||||||||
Other borrowed funds | 1,113 | 1,113 | — | 1,113 | — | ||||||||||||||||
Accrued interest payable | 683 | 683 | 683 | — | — | ||||||||||||||||
Mortgagor’s escrow accounts | 1,054 | 1,054 | — | 1,054 | — |
COMPREHENSIVE_INCOME
COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
COMPREHENSIVE INCOME | NOTE 21 – COMPREHENSIVE INCOME | ||||||||||||
Year Ended December 31, 2014 | |||||||||||||
Pre Tax | Tax | After Tax | |||||||||||
Amount | Expense | Amount | |||||||||||
Securities available-for-sale: | |||||||||||||
Change in unrealized gain/loss during the period | $ | 230 | $ | (92 | ) | $ | 138 | ||||||
Reclassification adjustment for net gains included in net income1 | — | — | — | ||||||||||
Total securities available for sale | 230 | (92 | ) | 138 | |||||||||
Defined benefit post-retirement benefit plans: | |||||||||||||
Change in unrecognized pension plan benefit | 48 | (20 | ) | 28 | |||||||||
Total defined-benefit post-retirement benefit plans | 48 | (20 | ) | 28 | |||||||||
Total other comprehensive income | $ | 278 | $ | (112 | ) | $ | 166 | ||||||
Year Ended December 31, 2013 | |||||||||||||
Pre Tax | Tax (Expense) | After Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Securities available-for-sale: | |||||||||||||
Change in unrealized gain/loss during the period | $ | (454 | ) | $ | 173 | $ | (281 | ) | |||||
Reclassification adjustment for net gains included in net income1 | (34 | ) | 14 | (20 | ) | ||||||||
Total securities available for sale | (488 | ) | 187 | (301 | ) | ||||||||
Defined benefit post-retirement benefit plans: | |||||||||||||
Change in the actuarial gain/loss | 72 | (27 | ) | 45 | |||||||||
Total defined-benefit post-retirement benefit plans | 72 | (27 | ) | 45 | |||||||||
Total other comprehensive loss | $ | (416 | ) | $ | 160 | $ | (256 | ) | |||||
Year Ended December 31, 2012 | |||||||||||||
Pre Tax | Tax (Expense) | After Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Securities available-for-sale: | |||||||||||||
Change in unrealized gain/loss during the period | $ | 138 | $ | (47 | ) | 91 | |||||||
Reclassification adjustment for net gains included in net income1 | — | — | — | ||||||||||
Total securities available for sale | 138 | (47 | ) | 91 | |||||||||
Defined benefit post-retirement benefit plans: | |||||||||||||
Change in the actuarial gain/loss | (28 | ) | 10 | (18 | ) | ||||||||
Total defined-benefit post-retirement benefit plans | (28 | ) | 10 | (18 | ) | ||||||||
Total other comprehensive income | $ | 110 | $ | (37 | ) | $ | 73 | ||||||
1- | Reclassification adjustments are comprised of realized security gains and losses. The gains and losses have been reclassified out of accumulated other comprehensive loss and have affected certain lines in the consolidated statements of operations as follows; the pre-tax amount is included in net gain on sales and calls of securities, the tax expense amount is included in income tax expense and the after tax amount is included in net income. | ||||||||||||
The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: | |||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Net unrealized holding loss on available-for-sale securities, net of tax | $ | (72 | ) | $ | (210 | ) | |||||||
Unrecognized benefit pertaining to defined benefit plan, net of tax | 50 | 22 | |||||||||||
Accumulated other comprehensive loss | $ | (22 | ) | $ | (188 | ) | |||||||
CONDENSED_FINANCIAL_STATEMENTS
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | NOTE 22 – CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | ||||||||||||
The following condensed financial statements are for the Parent Company only and should be read in conjunction with the consolidated financial statements of the Company. | |||||||||||||
Condensed Balance Sheets | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash and cash equivalents held at Belmont Savings Bank | $ | 2,754 | $ | 14,967 | |||||||||
Investment in Belmont Savings Bank | 128,495 | 109,890 | |||||||||||
Investment in BSB Funding Corp. | 4,867 | 4,783 | |||||||||||
Deferred tax asset | 190 | 500 | |||||||||||
Other assets | 761 | 336 | |||||||||||
Total assets | $ | 137,067 | $ | 130,476 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Accrued expenses | 41 | 55 | |||||||||||
Other liabilities | 16 | — | |||||||||||
Total liabilities | 57 | 55 | |||||||||||
Stockholders’ equity | 137,010 | 130,421 | |||||||||||
Total liabilities and stockholders’ equity | $ | 137,067 | $ | 130,476 | |||||||||
Condensed Statements of Operations | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest and dividend income: | |||||||||||||
Interest on cash equivalents | $ | 11 | $ | 27 | $ | 42 | |||||||
Dividends from subsidiaries | — | — | — | ||||||||||
Total interest and dividend income | 11 | 27 | 42 | ||||||||||
Interest expense: | — | — | — | ||||||||||
Net interest and dividend income | 11 | 27 | 42 | ||||||||||
Non-interest income | — | — | — | ||||||||||
Non-interest expense | 269 | 248 | 303 | ||||||||||
Loss before income taxes and equity in undistributed earnings of subsidiaries | (258 | ) | (221 | ) | (261 | ) | |||||||
Income tax (benefit) provision | (156 | ) | (268 | ) | (105 | ) | |||||||
(Loss) income before equity in income of subsidiaries | (102 | ) | 47 | (156 | ) | ||||||||
Equity in undistributed earnings of Belmont Savings Bank | 4,308 | 1,826 | 1,469 | ||||||||||
Equity in undistributed earnings of BSB Funding Corp | 85 | 87 | 88 | ||||||||||
Net income | $ | 4,291 | $ | 1,960 | $ | 1,401 | |||||||
Condensed Statements of Cash Flows | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 4,291 | $ | 1,960 | $ | 1,401 | |||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||
Equity in undistributed earnings of Belmont Savings Bank | (4,308 | ) | (1,826 | ) | (1,469 | ) | |||||||
Equity in undistributed earnings of BSB Funding Corp. | (85 | ) | (87 | ) | (88 | ) | |||||||
Deferred income tax expense | 363 | 193 | 52 | ||||||||||
Change in deferred tax valuation allowance | (53 | ) | (180 | ) | — | ||||||||
Other, net | (423 | ) | (239 | ) | (122 | ) | |||||||
Net cash used in operating activities | (215 | ) | (179 | ) | (226 | ) | |||||||
Cash flows from investing activities: | |||||||||||||
Investment in Belmont Savings Bank | (12,000 | ) | (20,000 | ) | — | ||||||||
Net cash used in investing activities | (12,000 | ) | (20,000 | ) | — | ||||||||
Cash flows from financing activities: | |||||||||||||
Repurchase of common stock | — | (6,478 | ) | — | |||||||||
Proceeds from exercise of stock options, net of cash paid | 45 | — | — | ||||||||||
Restricted stock awards issued, net of awards surrendered | (43 | ) | — | — | |||||||||
Net cash provided by (used in) financing activities | 2 | (6,478 | ) | — | |||||||||
Net decrease in cash and cash equivalents | (12,213 | ) | (26,657 | ) | (226 | ) | |||||||
Cash and cash equivalents at beginning of period | 14,967 | 41,624 | 41,850 | ||||||||||
Cash and cash equivalents at end of period | $ | 2,754 | $ | 14,967 | $ | 41,624 | |||||||
QUARTERLY_DATA_UNAUDITED
QUARTERLY DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
QUARTERLY DATA (UNAUDITED) | NOTE 23 – QUARTERLY DATA (UNAUDITED) | ||||||||||||||||||||||||||||||||
Quarterly results of operations are as follows: | |||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
Interest and dividend income | $ | 10,600 | $ | 10,036 | $ | 9,268 | $ | 8,751 | $ | 8,875 | $ | 7,995 | $ | 7,136 | $ | 7,005 | |||||||||||||||||
Interest expense | 2,068 | 1,896 | 1,659 | 1,428 | 1,316 | 1,223 | 1,222 | 1,226 | |||||||||||||||||||||||||
Net interest income | 8,532 | 8,140 | 7,609 | 7,323 | 7,559 | 6,772 | 5,914 | 5,779 | |||||||||||||||||||||||||
Provision for loan losses | 565 | 292 | 307 | 388 | 632 | 438 | 100 | 327 | |||||||||||||||||||||||||
Net interest income, after provision for loan losses | 7,967 | 7,848 | 7,302 | 6,935 | 6,927 | 6,334 | 5,814 | 5,452 | |||||||||||||||||||||||||
Non-interest income | 920 | 792 | 857 | 722 | 802 | 890 | 908 | 1,006 | |||||||||||||||||||||||||
Non-interest expense | 6,657 | 6,656 | 6,504 | 6,673 | 6,797 | 6,373 | 6,161 | 5,800 | |||||||||||||||||||||||||
Income before taxes | 2,230 | 1,984 | 1,655 | 984 | 932 | 851 | 561 | 658 | |||||||||||||||||||||||||
Income tax expense | 862 | 782 | 614 | 304 | 287 | 313 | 200 | 242 | |||||||||||||||||||||||||
Net income | $ | 1,368 | $ | 1,202 | $ | 1,041 | $ | 680 | $ | 645 | $ | 538 | $ | 361 | $ | 416 | |||||||||||||||||
Earnings per common share | |||||||||||||||||||||||||||||||||
Basic | $ | 0.16 | $ | 0.14 | $ | 0.12 | $ | 0.08 | $ | 0.07 | $ | 0.06 | $ | 0.04 | $ | 0.05 | |||||||||||||||||
Diluted | $ | 0.16 | $ | 0.14 | $ | 0.12 | $ | 0.08 | $ | 0.07 | $ | 0.06 | $ | 0.04 | $ | 0.05 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS | NOTE 24 – SUBSEQUENT EVENTS |
The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. There were no subsequent events that required adjustment to or disclosure in the consolidated financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Nature of Operations | Nature of Operations | ||
BSB Bancorp, Inc. (the “Company”) was incorporated in Maryland in June, 2011 to become the holding company of Belmont Savings Bank (the “Bank”), a state-chartered Massachusetts savings bank. The Company is supervised by the Board of Governors of the Federal Reserve System (“FRB”), while the Bank is subject to the regulations of, and periodic examination by, the Federal Deposit Insurance Corporation (“FDIC”) and the Massachusetts Division of Banks (the “Division”). The Bank’s deposits are insured by the Bank Insurance Fund of the FDIC up to $250,000 per account. For balances in excess of the FDIC deposit insurance limits, coverage is provided by the Massachusetts Depositors Insurance Fund, Inc. (“Mass DIF”). In connection with the Company’s conversion from a mutual holding company to stock holding company form of organization (the “conversion”), on October 4, 2011 we completed our initial public offering of common stock, selling 8,993,000 shares of common stock at $10.00 per share for approximately $89.9 million in gross proceeds, including 458,643 shares sold to the Bank’s employee stock ownership plan. In addition, in connection with the conversion, we issued 179,860 shares of our common stock and contributed $200,000 in cash to the Belmont Savings Bank Foundation. | |||
Belmont Savings Bank is a state chartered savings bank which was incorporated in 1885 and is headquartered in Belmont, Massachusetts. The Bank is engaged principally in the business of attracting deposits from the general public and investing those deposits in residential and commercial real estate loans, consumer loans, including indirect auto loans, commercial loans and construction loans, as well as investment securities. | |||
Basis of Presentation | Basis of Presentation | ||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Belmont Savings Bank and BSB Funding Corporation. All significant intercompany balances and transactions have been eliminated in consolidation. | |||
The Company’s consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles and general practices within the financial services industry. | |||
Use of Estimates | Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan losses, valuation and potential other-than-temporary impairment (“OTTI”) of investment securities, the valuation of deferred tax assets and the fair value of stock-based compensation awards. | |||
Reclassification | Reclassification | ||
Certain previously reported amounts have been reclassified to conform to the current year’s presentation. | |||
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk | ||
Most of the Company’s business activity is with customers located within the Commonwealth of Massachusetts. There are no concentrations of credit to borrowers that have similar economic characteristics. The majority of the Company’s loan portfolio is comprised of loans collateralized by real estate located in the Commonwealth of Massachusetts. | |||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash, balances due from banks and interest-bearing deposits in other banks. | |||
Securities | Securities | ||
Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Securities not classified as held-to-maturity or trading, including equity securities with readily determinable fair values, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. | |||
Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |||
Each reporting period, the Company evaluates all securities classified as available-for-sale or held-to-maturity, with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”). Consideration is given to the obligor of the security, whether the security is guaranteed, whether there is a projected adverse change in cash flows, the liquidity of the security, the type of security, the capital position of security issuers, and payment history of the security, amongst other factors when evaluating these individual securities. | |||
OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Marketable equity securities are evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value are reflected in earnings as realized losses. For impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income, net of applicable taxes. | |||
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock | ||
As a member of the Federal Home Loan Bank of Boston (FHLB), the Company is required to invest in stock of the FHLB. Management evaluates the Company’s investment in the FHLB of Boston stock for other-than-temporary impairment at least on a quarterly basis and more frequently when economic or market conditions warrant such evaluation. Based on its most recent analysis of the FHLB of Boston as of December 31, 2014, management deems its investment in FHLB of Boston stock to be not other-than-temporarily impaired. | |||
Loans Held For Sale | Loans Held For Sale | ||
Loans purchased or transferred from held for investment, (if intent or ability to hold existing loans changes), and loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Direct loan origination costs and fees are deferred upon origination and are recognized on the date of sale. | |||
Loans | Loans | ||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums on purchased loans. | |||
Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the expected term as an adjustment of the related loan yield using the interest method. | |||
The accrual of interest on all loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||
Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. | |||
Allowance for Loan Losses | Allowance for Loan Losses | ||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | |||
The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. | |||
General Component: | |||
The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, home equity lines of credit, commercial real estate, construction, commercial, indirect auto 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: levels/trends in delinquencies; 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; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during 2014 or 2013. | |||
The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: | |||
Residential real estate and home equity loans – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not grant subprime loans. Loans in this segment are generally collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. | |||
Commercial real estate – Loans in this segment are primarily income-producing properties throughout New England. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management generally obtains rent rolls annually and continually monitors the cash flows of these borrowers. | |||
Construction loans – Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale and/or lease up of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. | |||
Commercial loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. | |||
Indirect auto loans – Loans in this segment are secured installment loans that are originated through a network of select regional automobile dealerships. The Company’s interest in the vehicle is secured with a recorded lien on the state title of each automobile. Collections are sensitive to changes in borrower financial circumstances, and the collateral can depreciate or be damaged in the event of repossession. Repayment is dependent on the credit quality and the cash flow of the individual borrower. | |||
Consumer loans - Loans in this segment include secured and unsecured consumer loans. Repayment is dependent on the credit quality and the cash flow of the individual borrower. | |||
Allocated Component: | |||
The allocated component relates to loans that are classified as impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company 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. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |||
The Company periodically may 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 and therefore are subject to a specific review for impairment. | |||
Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate at the time of impairment or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. Generally, impairment on TDRs is measured using the discounted cash flow method by discounting expected cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification. Loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. Generally, all other impaired loans are collateral dependent and impairment is measured through the collateral method. All loans on non-accrual status, with the exception of indirect auto and consumer loans, are considered to be impaired. When the measurement of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through the allowance for loan losses. The Bank charges off the amount of any confirmed loan loss in the period when the loans, or portion of loans, are deemed uncollectible. | |||
Unallocated Component: | |||
An unallocated component is 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. | |||
In the ordinary course of business, the Bank enters into commitments to extend credit, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for off-balance sheet commitments is included in other liabilities in the balance sheet. At December 31, 2014 and 2013, the reserve for unfunded loan commitments was $88,000 and $114,000, respectively. The related provision for off-balance sheet credit losses is included in non-interest expense in the statement of operations. | |||
Premises and Equipment | Premises and Equipment | ||
Land is carried at cost. Building and equipment are stated at cost, less accumulated depreciation, computed on the straight-line method over the estimated useful lives of the assets. It is general practice to charge the cost of maintenance and repairs to earnings when incurred; major expenditures for betterments are capitalized and depreciated over the shorter of the lease term for leasehold improvements or their estimated useful lives. | |||
Bank-owned Life Insurance | Bank-owned Life Insurance | ||
Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of operations and are generally not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15% of tier one capital and the total cash surrender value of life insurance policies is limited to 25% of tier one capital. | |||
Transfers and Servicing of Financial Assets | Transfers and Servicing of Financial Assets | ||
Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. | |||
During the normal course of business, the Company may transfer whole loans or a portion of a financial asset, such as a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer will be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. | |||
The Company services mortgage loans for others. Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets with servicing rights retained. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Capitalized servicing rights are reported in other assets and are amortized into loan servicing fee income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. | |||
Other Real Estate Owned and Other Foreclosed Assets | Other Real Estate Owned and Other Foreclosed Assets | ||
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less estimated costs to sell, at the date of foreclosure or when control is established, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations, changes in the valuation allowance and any direct writedowns are included in other noninterest expense. | |||
The Company classifies loans as in-substance repossessed or foreclosed if the Company receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place. | |||
Advertising Costs | Advertising Costs | ||
Advertising costs are expensed as incurred. | |||
Supplemental Executive Retirement Plan | Supplemental Executive Retirement Plan | ||
The compensation cost of an employee’s retirement benefit is recognized on the projected unit credit method over the employee’s approximate service period. The aggregate cost method is utilized for funding purposes. | |||
The Company accounts for its supplemental executive retirement plan using an actuarial model that allocates benefit costs over the service period of employees in the plan. The Company accounts for the over-funded or under-funded status of the plan as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income or loss. | |||
Employee Stock Ownership Plan | Employee Stock Ownership Plan | ||
Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated balance sheet. The difference between the average fair value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. | |||
Stock Based Compensation | Stock Based Compensation | ||
The Company recognizes stock-based compensation based on the grant-date fair value of the award adjusted for expected forfeitures. The Company values share-based stock option awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. | |||
Income Taxes | Income Taxes | ||
Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. A valuation allowance is established against deferred tax assets when, based upon all available evidence, both positive and negative, it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. | |||
Fair Value Hierarchy | Fair Value Hierarchy | ||
The Company measures the fair values of its financial instruments in accordance with accounting guidance that requires an entity to base fair value on exit price, and maximize the use of observable inputs and minimize the use of unobservable inputs to determine the exit price. Under applicable accounting guidance, the Company categorizes its financial instruments, based on the priority of inputs to the valuation technique, into a three-level hierarchy, as described below. | |||
Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||
Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||
Level 3 - Level 3 inputs are unobservable inputs for the asset or liability. | |||
Transfers between levels are recognized at the end of a reporting period, if applicable. | |||
Earnings per Share (EPS) | Earnings per Share (EPS) | ||
Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities considering both dividends declared (or accumulated) and participation rights in undistributed earnings as if all such earnings had been distributed during the period. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities (i.e. unvested restricted stock), not subject to performance based measures. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding (inclusive of participating securities). Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options or the attainment of performance measures) were issued during the period, computed using the treasury stock method. | |||
Comprehensive Income | Comprehensive Income | ||
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 stockholders’ equity section of the balance sheet, such items, along with net income, are components of comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the Company’s postretirement and supplemental retirement plans. | |||
Recent accounting pronouncements | Recent accounting pronouncements | ||
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-01, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.” The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow-through entities for tax purposes as follows: | |||
1. For reporting entities that meet the conditions for and that elect to use the proportional amortization method to account for investments in qualified affordable housing projects, all amendments in this ASU apply. | |||
2. For reporting entities that do not meet the conditions for or that do not elect the proportional amortization method, only the amendments in this ASU that are related to disclosures apply. | |||
The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). For those investments in qualified affordable housing projects not accounted for using the proportional amortization method, the investment should be accounted for as an equity method investment or a cost method investment in accordance with Subtopic 970-323. The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect that the adoption of this ASU will have an impact on the Company’s consolidated financial statements. | |||
In January 2014, the FASB issued ASU 2014-04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of the amendments in this ASU is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this ASU using either a modified retrospective transition method or a prospective transition method. The Company does not expect that the adoption of this ASU will have a material impact on the Company’s consolidated financial statements. | |||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the criteria for reporting discontinued operations and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning on or after December 15, 2014, and interim periods within those years. The Company anticipates that the adoption of this guidance will not have a material impact on its consolidated financial statements. | |||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The objective of this ASU is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently reviewing this ASU to determine if it will have a material impact on its consolidated financial statements. | |||
In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” The amendments in this ASU require two accounting changes. First, the amendments in this ASU change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. This ASU also includes new disclosure requirements. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The Company anticipates that the adoption of this guidance will not have a material impact on its consolidated financial statements. | |||
In June 2014, the FASB issued ASU 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period.” The amendments in this ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Earlier adoption is permitted. ASU 2014-12 may be adopted either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements, and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. The Company anticipates that the adoption of this guidance will not have a material impact on its consolidated financial statements. | |||
In August 2014, the FASB issued ASU 2014-13, “Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity.” This ASU applies to entities that meet the following criteria: | |||
1 | they are required to consolidate a collateralized entity under the Variable Interest Entities guidance; | ||
2 | they measure all of the financial assets and the financial liabilities of that consolidated collateralized financing entity at fair value in the consolidated financial statements based on other FASB rules; and | ||
3 | those changes in fair value are reflected in earnings. | ||
Under ASU 2014-13, entities that meet these criteria are provided an alternative under which they can choose to eliminate the difference between the fair value of financial assets and financial liabilities of a consolidated collateralized financing entity. If that alternative is not elected, then ASU 2014-13 indicates that the fair value of the financial assets and the fair value of the financial liabilities of the consolidated collateralized financing entity should be measured in accordance with ASC 820. Fair Value Measurement and differences between the fair value of the financial assets and the financial liabilities of that consolidated collateralized financing entity should be reflected in earnings and attributed to the reporting entity in the consolidated statement of income or loss. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The Company anticipates that the adoption of this ASU will not have an impact on its consolidated financial statements. | |||
In August 2014, the FASB issued ASU 2014-14, “Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government - Guaranteed Mortgage Loans upon Foreclosure.” The amendments in this ASU require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: | |||
1 | the loan has a government guarantee that is not separable from the loan before foreclosure; | ||
2 | at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and | ||
3 | at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. | ||
Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. | |||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40).” The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements. | |||
In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging (Topic 815).” The objective of this ASU is to eliminate the use of different methods in practice and thereby reduce existing diversity under GAAP in the accounting for hybrid financial instruments issued in the form of a share. The amendments in this ASU apply to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share. The amendments in this ASU do not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. In addition, the amendments in this ASU clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features when considering how to weight those terms and features. Specifically, the assessment of the substance of the relevant terms and features should incorporate a consideration of (1) the characteristics of the terms and features themselves, (2) the circumstances under which the hybrid financial instrument was issued or acquired, and (3) the potential outcomes of the hybrid financial instrument, as well as the likelihood of those potential outcomes. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements. | |||
In November 2014, the FASB issued ASU 2014-17, “Business Combinations (Topic 805): Pushdown Accounting.” The amendments in this ASU provide guidance on whether and at what threshold an acquired entity that is a business or nonprofit activity may elect to apply pushdown accounting in its separate financial statements upon a change-in-control event in which an acquirer obtains control of the acquired entity. The amendments in this ASU are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance would be a change in accounting principle. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. | |||
In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20).” The amendments in this ASU eliminate the concept of extraordinary items. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary (even if they ultimately would conclude it is not). This also alleviates uncertainty for preparers, auditors, and regulators because auditors and regulators no longer will need to evaluate whether a preparer treated an unusual and/or infrequent item appropriately. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements. |
SECURITIES_Tables
SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Amortized Cost and Fair Values of Held-to-Maturity Securities | The following table presents a summary of the amortized cost, gross unrealized holding gains and losses and fair value of securities available for sale and securities held to maturity for the periods indicated. Gross unrealized holding gains and losses on available for sale securities are included in accumulated other comprehensive loss. | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Basis | Gains | Losses | Basis | Gains | Losses | ||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 22,199 | $ | 86 | $ | (206 | ) | $ | 22,079 | $ | 22,271 | $ | 75 | $ | (425 | ) | $ | 21,921 | |||||||||||||||
$ | 22,199 | $ | 86 | $ | (206 | ) | $ | 22,079 | $ | 22,271 | $ | 75 | $ | (425 | ) | $ | 21,921 | ||||||||||||||||
Held to maturity securities: | |||||||||||||||||||||||||||||||||
U.S. government sponsored mortgage-backed securities | $ | 100,977 | $ | 1,019 | $ | (227 | ) | $ | 101,769 | $ | 99,257 | $ | 572 | $ | (998 | ) | $ | 98,831 | |||||||||||||||
Corporate debt securities | 17,551 | 164 | (37 | ) | 17,678 | 20,519 | 120 | (489 | ) | 20,150 | |||||||||||||||||||||||
$ | 118,528 | $ | 1,183 | $ | (264 | ) | $ | 119,447 | $ | 119,776 | $ | 692 | $ | (1,487 | ) | $ | 118,981 | ||||||||||||||||
Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of debt securities by contractual maturity at December 31, 2014 is as follows. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||||||||||
Available for Sale | Held-to-Maturity | ||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||||||||||
Cost Basis | Value | Cost Basis | Value | ||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Due from one year to five years | 12,807 | 12,893 | 7,277 | 7,355 | |||||||||||||||||||||||||||||
Due from five years to ten years | 9,392 | 9,186 | 65,912 | 66,256 | |||||||||||||||||||||||||||||
Due after ten years | — | — | 45,339 | 45,836 | |||||||||||||||||||||||||||||
Sales of Securities Available for Sale | Information relating to sales of securities available-for-sale during the years ending December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Proceeds from sales | $ | — | $ | 17,985 | $ | — | |||||||||||||||||||||||||||
Gross realized gains | — | 64 | — | ||||||||||||||||||||||||||||||
Gross realized losses | — | (30 | ) | — | |||||||||||||||||||||||||||||
Tax expense of securities gains/losses | — | 14 | — | ||||||||||||||||||||||||||||||
Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time | Information pertaining to securities with gross unrealized losses at December 31, 2014 and 2013, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: | ||||||||||||||||||||||||||||||||
Less than 12 Months | Over 12 Months | ||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||
December 31, 2014: | |||||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | — | $ | 4,185 | $ | (206 | ) | ||||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||
Corporate debt securities | 4,691 | (37 | ) | — | — | ||||||||||||||||||||||||||||
U.S. government sponsored mortgage-backed securities | 10,974 | (34 | ) | 15,637 | (193 | ) | |||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 15,665 | $ | (71 | ) | $ | 19,822 | $ | (399 | ) | |||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 4,970 | $ | (30 | ) | $ | 4,052 | $ | (395 | ) | |||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||
Corporate debt securities | 10,010 | (489 | ) | — | — | ||||||||||||||||||||||||||||
U.S. government sponsored mortgage-backed securities | 59,073 | (998 | ) | 6 | — | ||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 74,053 | $ | (1,517 | ) | $ | 4,058 | $ | (395 | ) | |||||||||||||||||||||||
LOANS_Tables
LOANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Summary of Loans | A summary of the balances of loans follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Mortgage loans on real estate: | |||||||||||||||||||||||||
Residential one-to-four family | $ | 450,572 | $ | 287,652 | |||||||||||||||||||||
Commercial real estate loans | 395,178 | 320,807 | |||||||||||||||||||||||
Home equity loans | 131,628 | 92,461 | |||||||||||||||||||||||
Construction loans | 31,389 | 9,965 | |||||||||||||||||||||||
Total real estate loans | 1,008,767 | 710,885 | |||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||
Commercial loans | 39,161 | 30,691 | |||||||||||||||||||||||
Indirect auto loans | 131,961 | 99,798 | |||||||||||||||||||||||
Consumer loans | 774 | 558 | |||||||||||||||||||||||
171,896 | 131,047 | ||||||||||||||||||||||||
Total loans | 1,180,663 | 841,932 | |||||||||||||||||||||||
Net deferred loan costs | 5,068 | 3,535 | |||||||||||||||||||||||
Net unamortized mortgage premiums | 2,549 | 1,504 | |||||||||||||||||||||||
Allowance for loan losses | (8,881 | ) | (7,958 | ) | |||||||||||||||||||||
Total loans, net | $ | 1,179,399 | $ | 839,013 | |||||||||||||||||||||
Activity in Allowance for Loan Losses by Portfolio Class and Balances of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Class | The following tables present the activity in the allowance for loan losses for the years ended December 31, 2014, 2013 and 2012 and the balances of the allowance for loan losses and recorded investment in loans by portfolio class based on impairment method at December 31, 2014 and 2013. The recorded investment in loans in any of the following tables does not include accrued and unpaid interest or any deferred loan fees or costs, as amounts are not significant. | ||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||
Beginning | Provision | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||
balance | |||||||||||||||||||||||||
Residential one-to-four family | $ | 2,189 | $ | 550 | $ | (375 | ) | $ | — | $ | 2,364 | ||||||||||||||
Commercial real estate | 3,621 | 422 | — | — | 4,043 | ||||||||||||||||||||
Construction | 134 | 94 | — | — | 228 | ||||||||||||||||||||
Commercial | 419 | 43 | (4 | ) | — | 458 | |||||||||||||||||||
Home equity | 681 | 346 | (199 | ) | — | 828 | |||||||||||||||||||
Indirect auto | 749 | 65 | (51 | ) | 15 | 778 | |||||||||||||||||||
Consumer | 26 | — | (29 | ) | 14 | 11 | |||||||||||||||||||
Unallocated | 139 | 32 | — | — | 171 | ||||||||||||||||||||
Total | $ | 7,958 | $ | 1,552 | $ | (658 | ) | $ | 29 | $ | 8,881 | ||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Beginning | Provision | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||
balance | (benefit) | ||||||||||||||||||||||||
Residential one-to-four family | $ | 1,412 | $ | 709 | $ | — | $ | 68 | $ | 2,189 | |||||||||||||||
Commercial real estate | 3,039 | 582 | — | — | 3,621 | ||||||||||||||||||||
Construction | 198 | (64 | ) | — | — | 134 | |||||||||||||||||||
Commercial | 470 | (51 | ) | — | — | 419 | |||||||||||||||||||
Home equity | 466 | 235 | (20 | ) | — | 681 | |||||||||||||||||||
Indirect auto | 772 | (30 | ) | (62 | ) | 69 | 749 | ||||||||||||||||||
Consumer | 19 | 42 | (53 | ) | 18 | 26 | |||||||||||||||||||
Unallocated | 64 | 75 | — | — | 139 | ||||||||||||||||||||
Total | $ | 6,440 | $ | 1,498 | $ | (135 | ) | $ | 155 | $ | 7,958 | ||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||
Beginning | Provision | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||
balance | |||||||||||||||||||||||||
Residential one-to-four family | $ | 986 | $ | 608 | $ | (225 | ) | $ | 43 | $ | 1,412 | ||||||||||||||
Commercial real estate | 1,969 | 1,070 | — | — | 3,039 | ||||||||||||||||||||
Construction | 188 | 10 | — | — | 198 | ||||||||||||||||||||
Commercial | 321 | 149 | — | — | 470 | ||||||||||||||||||||
Home equity | 632 | 453 | (715 | ) | 96 | 466 | |||||||||||||||||||
Indirect auto | 664 | 343 | (281 | ) | 46 | 772 | |||||||||||||||||||
Consumer | 16 | 39 | (48 | ) | 12 | 19 | |||||||||||||||||||
Unallocated | — | 64 | — | — | 64 | ||||||||||||||||||||
Total | $ | 4,776 | $ | 2,736 | $ | (1,269 | ) | $ | 197 | $ | 6,440 | ||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Total | |||||||||||||||||||||||
Loan balance | Allowance | Loan balance | Allowance | Loan Balance | Allowance | ||||||||||||||||||||
Residential one-to-four family | $ | 6,256 | $ | 188 | $ | 444,316 | $ | 2,176 | $ | 450,572 | $ | 2,364 | |||||||||||||
Commercial real estate | 3,882 | 5 | 391,296 | 4,038 | 395,178 | 4,043 | |||||||||||||||||||
Construction | — | — | 31,389 | 228 | 31,389 | 228 | |||||||||||||||||||
Commercial | — | — | 39,161 | 458 | 39,161 | 458 | |||||||||||||||||||
Home equity | 296 | — | 131,332 | 828 | 131,628 | 828 | |||||||||||||||||||
Indirect auto | 12 | — | 131,949 | 778 | 131,961 | 778 | |||||||||||||||||||
Consumer | — | — | 774 | 11 | 774 | 11 | |||||||||||||||||||
Unallocated | — | — | — | 171 | — | 171 | |||||||||||||||||||
Total | $ | 10,446 | $ | 193 | $ | 1,170,217 | $ | 8,688 | $ | 1,180,663 | $ | 8,881 | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Total | |||||||||||||||||||||||
Loan balance | Allowance | Loan balance | Allowance | Loan Balance | Allowance | ||||||||||||||||||||
Residential one-to-four family | $ | 6,982 | $ | 869 | $ | 280,670 | $ | 1,320 | $ | 287,652 | $ | 2,189 | |||||||||||||
Commercial real estate | 4,081 | 11 | 316,726 | 3,610 | 320,807 | 3,621 | |||||||||||||||||||
Construction | — | — | 9,965 | 134 | 9,965 | 134 | |||||||||||||||||||
Commercial | — | — | 30,691 | 419 | 30,691 | 419 | |||||||||||||||||||
Home equity | 400 | — | 92,061 | 681 | 92,461 | 681 | |||||||||||||||||||
Indirect auto | 16 | — | 99,782 | 749 | 99,798 | 749 | |||||||||||||||||||
Consumer | 1 | — | 557 | 26 | 558 | 26 | |||||||||||||||||||
Unallocated | — | — | — | 139 | — | 139 | |||||||||||||||||||
Total | $ | 11,480 | $ | 880 | $ | 830,452 | $ | 7,078 | $ | 841,932 | $ | 7,958 | |||||||||||||
Information about Loans that Meet Definition of Impaired Loan | Information about loans that meet the definition of an impaired loan in ASC 310-10-35 is as follows as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
Impaired loans with a related allowance for credit losses at December 31, 2014 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance For | |||||||||||||||||||||||
Balance | Credit Losses | ||||||||||||||||||||||||
Residential one-to-four family | $ | 1,186 | $ | 1,186 | $ | 188 | |||||||||||||||||||
Commercial real estate | 3,060 | 3,060 | 5 | ||||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||||||
Indirect auto | — | — | — | ||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||
Totals | $ | 4,246 | $ | 4,246 | $ | 193 | |||||||||||||||||||
Impaired loans with no related allowance for credit losses at December 31, 2014 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance For | |||||||||||||||||||||||
Balance | Credit Losses | ||||||||||||||||||||||||
Residential one-to-four family | $ | 5,070 | $ | 5,229 | $ | — | |||||||||||||||||||
Commercial real estate | 822 | 822 | — | ||||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||
Home equity | 296 | 298 | — | ||||||||||||||||||||||
Indirect auto | 12 | 12 | — | ||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||
Totals | $ | 6,200 | $ | 6,361 | $ | — | |||||||||||||||||||
Impaired loans with a related allowance for credit losses at December 31, 2013 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance For | |||||||||||||||||||||||
Balance | Credit Losses | ||||||||||||||||||||||||
Residential one-to-four family | $ | 3,824 | $ | 3,824 | $ | 869 | |||||||||||||||||||
Commercial real estate | 3,111 | 3,111 | 11 | ||||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||||||
Indirect auto | — | — | — | ||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||
Totals | $ | 6,935 | $ | 6,935 | $ | 880 | |||||||||||||||||||
Impaired loans with no related allowance for credit losses at December 31, 2013 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance For | |||||||||||||||||||||||
Balance | Credit Losses | ||||||||||||||||||||||||
Residential one-to-four family | $ | 3,158 | $ | 3,158 | $ | — | |||||||||||||||||||
Commercial real estate | 970 | 970 | — | ||||||||||||||||||||||
Construction | — | — | — | ||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||
Home equity | 400 | 599 | — | ||||||||||||||||||||||
Indirect auto | 16 | 16 | — | ||||||||||||||||||||||
Consumer | 1 | 1 | — | ||||||||||||||||||||||
Totals | $ | 4,545 | $ | 4,744 | $ | — | |||||||||||||||||||
Information regarding Interest Income Recognized on Impaired Loans | The following tables set forth information regarding interest income recognized on impaired loans, by portfolio, for the periods indicated. | ||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||
With an allowance recorded | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||
Residential one-to-four family | $ | 1,592 | $ | 107 | $ | 2,566 | $ | 10 | $ | 1,325 | $ | 11 | |||||||||||||
Commercial real estate | 3,085 | 115 | 1,824 | 59 | — | — | |||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||
Home equity | — | — | — | — | 432 | 3 | |||||||||||||||||||
Indirect auto | — | — | — | — | — | — | |||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||
Totals | $ | 4,677 | $ | 222 | $ | 4,390 | $ | 69 | $ | 1,757 | $ | 14 | |||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||
Without an allowance recorded | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||
Residential one-to-four family | $ | 3,689 | $ | 83 | $ | 5,460 | $ | 130 | $ | 3,006 | $ | 76 | |||||||||||||
Commercial real estate | 887 | 34 | 2,258 | 118 | 889 | 32 | |||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||
Commercial | — | — | — | — | 35 | 4 | |||||||||||||||||||
Home equity | 398 | 8 | 462 | 17 | 410 | 13 | |||||||||||||||||||
Indirect auto | 2 | — | 3 | — | — | — | |||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||
Totals | $ | 4,976 | $ | 125 | $ | 8,183 | $ | 265 | $ | 4,340 | $ | 125 | |||||||||||||
Summary of Past Due and Non-Accrual Loans | The following is a summary of past due and non-accrual loans at December 31, 2014 and 2013: | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
30–59 Days | 60–89 Days | 90 Days | Total | 90 days | Loans on | ||||||||||||||||||||
or More | Past Due | or more | Non-accrual | ||||||||||||||||||||||
and accruing | |||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||
Residential one-to-four family | $ | — | $ | 230 | $ | 2,432 | $ | 2,662 | $ | — | $ | 2,662 | |||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||
Home equity | 270 | — | 96 | 366 | — | 96 | |||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||
Other loans: | |||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||
Indirect auto | 463 | 45 | 12 | 520 | — | 12 | |||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||
$ | 733 | $ | 275 | $ | 2,540 | $ | 3,548 | $ | — | $ | 2,770 | ||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
30–59 Days | 60–89 Days | 90 Days | Total | 90 days or | Loans on | ||||||||||||||||||||
or More | Past Due | more | Non-accrual | ||||||||||||||||||||||
and accruing | |||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||
Residential one-to-four family | $ | 410 | $ | — | $ | 1,911 | $ | 2,321 | $ | — | $ | 3,860 | |||||||||||||
Commercial real estate | — | — | 38 | 38 | — | 38 | |||||||||||||||||||
Home equity | 914 | — | — | 914 | — | 200 | |||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||
Other loans: | |||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||
Indirect auto | 222 | — | 16 | 238 | — | 16 | |||||||||||||||||||
Consumer | — | — | 1 | 1 | — | 1 | |||||||||||||||||||
$ | 1,546 | $ | — | $ | 1,966 | $ | 3,512 | $ | — | $ | 4,115 | ||||||||||||||
Company's Loans by Risk Rating | The following table presents the Company’s loans by risk rating at December 31, 2014 and 2013. There were no loans rated as 6 (“doubtful”) or 7 (“loss”) at the dates indicated. | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Loans rated 1-3 | Loans rated 4 | Loans rated 5 | Loans not rated (A) | Total | |||||||||||||||||||||
Residential one-to-four family | $ | — | $ | 1,134 | $ | 3,400 | $ | 446,038 | $ | 450,572 | |||||||||||||||
Commercial real estate | 386,513 | — | 8,665 | — | 395,178 | ||||||||||||||||||||
Construction | 31,389 | — | — | — | 31,389 | ||||||||||||||||||||
Commercial | 39,159 | 2 | — | — | 39,161 | ||||||||||||||||||||
Home equity | — | — | 895 | 130,733 | 131,628 | ||||||||||||||||||||
Indirect auto | — | — | — | 131,961 | 131,961 | ||||||||||||||||||||
Consumer | — | — | — | 774 | 774 | ||||||||||||||||||||
Total | $ | 457,061 | $ | 1,136 | $ | 12,960 | $ | 709,506 | $ | 1,180,663 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Loans rated 1-3 | Loans rated 4 | Loans rated 5 | Loans not rated (A) | Total | |||||||||||||||||||||
Residential one-to-four family | $ | — | $ | 3,123 | $ | 4,613 | $ | 279,916 | $ | 287,652 | |||||||||||||||
Commercial real estate | 307,093 | 4,277 | 9,437 | — | 320,807 | ||||||||||||||||||||
Construction | 9,965 | — | — | — | 9,965 | ||||||||||||||||||||
Commercial | 30,643 | 48 | — | — | 30,691 | ||||||||||||||||||||
Home equity | — | 200 | 999 | 91,262 | 92,461 | ||||||||||||||||||||
Indirect auto | — | — | — | 99,798 | 99,798 | ||||||||||||||||||||
Consumer | — | 9 | 4 | 545 | 558 | ||||||||||||||||||||
Total | $ | 347,701 | $ | 7,657 | $ | 15,053 | $ | 471,521 | $ | 841,932 | |||||||||||||||
(A) | Residential real estate, home equity, indirect auto and consumer loans are not formally risk rated by the Company unless the loans become delinquent. | ||||||||||||||||||||||||
Trouble Debt Restructuring Accrual Status | The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated (in thousands): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
TDRs on Accrual Status | $ | 7,675 | $ | 7,366 | |||||||||||||||||||||
TDRs on Nonaccrual Status | 1,551 | 1,900 | |||||||||||||||||||||||
Total TDRs | $ | 9,226 | $ | 9,266 | |||||||||||||||||||||
Amount of specific allocation included in the allowance for loan losses associated with TDRs | $ | 174 | $ | 543 | |||||||||||||||||||||
Additional commitments to lend to a borrower who has been a party to a TDR | $ | — | $ | — | |||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | The following table shows the TDR modifications which occurred during the periods indicated and the outstanding recorded investment subsequent to the modifications occurring: | ||||||||||||||||||||||||
Year ended | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | |||||||||||||||||||||||
Contracts | outstanding | outstanding | |||||||||||||||||||||||
recorded investment | recorded investment (a) | ||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||
Residential one-to-four family | 2 | $ | 2,224 | $ | 2,261 | ||||||||||||||||||||
Home equity lines of credit | 1 | 200 | 200 | ||||||||||||||||||||||
Commercial real estate | 1 | 882 | 882 | ||||||||||||||||||||||
4 | $ | 3,306 | $ | 3,343 | |||||||||||||||||||||
Year ended | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | |||||||||||||||||||||||
Contracts | outstanding | outstanding | |||||||||||||||||||||||
recorded investment | recorded investment (a) | ||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||
Residential one-to-four family | 1 | $ | 347 | $ | 378 | ||||||||||||||||||||
Commercial real estate | 4 | 4,732 | 4,128 | ||||||||||||||||||||||
5 | $ | 5,079 | $ | 4,506 | |||||||||||||||||||||
(a) | The post-modification balances represent the balance of the loan on the date of modifications. These amounts may show an increase when modifications include a capitalization of interest or taxes. | ||||||||||||||||||||||||
Post Modification of Troubled Debt Restructuring Balance | The following table shows the Company’s post-modification balance of TDRs listed by type of modification during the years indicated: | ||||||||||||||||||||||||
For the years ended | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Extended maturity | $ | 882 | $ | 1,370 | |||||||||||||||||||||
Adjusted interest rate | 561 | 3,136 | |||||||||||||||||||||||
Interest only period | 1,900 | — | |||||||||||||||||||||||
Total | $ | 3,343 | $ | 4,506 | |||||||||||||||||||||
TRANSFERS_AND_SERVICING_Tables
TRANSFERS AND SERVICING (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Changes in Mortgage Servicing Rights | Changes in mortgage servicing rights, which are included in other assets, were as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 411 | $ | 353 | $ | — | |||||||
Capitalization | 128 | 202 | 421 | ||||||||||
Amortization | (75 | ) | (101 | ) | (32 | ) | |||||||
Valuation allowance adjustment | 12 | (43 | ) | (36 | ) | ||||||||
Balance at end of period | $ | 476 | $ | 411 | $ | 353 | |||||||
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary of Cost and Accumulated Depreciation of Premises and Equipment | A summary of the cost and accumulated depreciation of premises and equipment follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 161 | $ | 161 | |||||
Buildings | 3,505 | 3,331 | |||||||
Leasehold improvements | 2,165 | 2,152 | |||||||
Furniture and equipment | 6,040 | 5,925 | |||||||
11,871 | 11,569 | ||||||||
Accumulated depreciation | (8,805 | ) | (8,242 | ) | |||||
$ | 3,066 | $ | 3,327 | ||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Scheduled Maturities of Time Deposits | At December 31, 2014, the scheduled maturities of time deposits are as follows: | ||||
2015 | $ | 62,028 | |||
2016 | 25,969 | ||||
2017 | 26,375 | ||||
2018 | 68,030 | ||||
2019 | 43,811 | ||||
$ | 226,213 | ||||
LONGTERM_BORROWINGS_Tables
LONG-TERM BORROWINGS (Tables) (Federal Home Loan Bank Advances) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Federal Home Loan Bank Advances | |||||||||||||||||
Schedule of Maturities of Long-Term Debt | Long-term debt at December 31, 2014 and 2013 consists of the following FHLB advances: | ||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Fixed rate advances maturing: | |||||||||||||||||
2014 | — | $ | 9,000 | — | % | 1.26 | % | ||||||||||
2015 | $ | 14,100 | 14,100 | 1.17 | % | 1.17 | % | ||||||||||
2016 | 7,000 | 7,000 | 1.39 | % | 1.39 | % | |||||||||||
2017 | 35,000 | 15,000 | 1.14 | % | 0.9 | % | |||||||||||
2018 | 27,000 | 17,000 | 1.88 | % | 1.93 | % | |||||||||||
2019 | 20,000 | — | 1.89 | % | — | % | |||||||||||
$ | 103,100 | $ | 62,100 | 1.5 | % | 1.35 | % | ||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Allocation of Federal and State Income Taxes between Current and Deferred Portions | Allocation of federal and state income taxes between current and deferred portions is as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current tax provision: | |||||||||||||
Federal | $ | 2,517 | $ | 1,615 | $ | 401 | |||||||
State | 653 | 388 | 59 | ||||||||||
3,170 | 2,003 | 460 | |||||||||||
Deferred tax (benefit) provision: | |||||||||||||
Federal | (419 | ) | (606 | ) | 195 | ||||||||
State | (136 | ) | (175 | ) | 58 | ||||||||
(555 | ) | (781 | ) | 253 | |||||||||
Change in valuation allowance | (53 | ) | (180 | ) | — | ||||||||
Total provision for income taxes | $ | 2,562 | $ | 1,042 | $ | 713 | |||||||
Summary of Reasons for Differences between Statutory Income Tax Rate and Effective Tax Rate | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal tax rate | 34 | % | 34 | % | 34 | % | |||||||
Increase (decrease) resulting from: | |||||||||||||
State taxes, net of federal tax benefit | 5 | 4.8 | 3.7 | ||||||||||
Bank-owned life insurance | (3.9 | ) | (4.1 | ) | (5.8 | ) | |||||||
Change in valuation allowance | (0.8 | ) | (6.0 | ) | — | ||||||||
Share based compensation | 2.9 | 5.6 | 1.3 | ||||||||||
Other, net | 0.2 | 0.4 | 0.5 | ||||||||||
Effective tax rates | 37.4 | % | 34.7 | % | 33.7 | % | |||||||
Components of Net Deferred Tax Assets | The components of the net deferred tax asset are as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Employee benefit and deferred compensation plans | $ | 3,035 | $ | 2,766 | |||||||||
Allowance for loan losses | 3,582 | 3,224 | |||||||||||
Depreciation | 90 | — | |||||||||||
Accrued rent | 11 | 11 | |||||||||||
Interest on non-performing loans | 8 | 8 | |||||||||||
Stock options | 272 | 144 | |||||||||||
Charitable contribution carryover | 190 | 502 | |||||||||||
Unrealized loss on securities available for sale | 48 | 140 | |||||||||||
ESOP | 74 | 53 | |||||||||||
Gross deferred tax assets | 7,310 | 6,848 | |||||||||||
Valuation allowance | — | (53 | ) | ||||||||||
7,310 | 6,795 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Mortgage servicing rights | (190 | ) | (164 | ) | |||||||||
Deferred loan origination costs | (934 | ) | (624 | ) | |||||||||
Restricted stock awards | (483 | ) | (651 | ) | |||||||||
Depreciation | — | (110 | ) | ||||||||||
Unrecognized retirement benefit | (34 | ) | (14 | ) | |||||||||
Other | (27 | ) | (86 | ) | |||||||||
(1,668 | ) | (1,649 | ) | ||||||||||
Net deferred tax asset | $ | 5,642 | $ | 5,146 | |||||||||
Schedule of Valuation Reserve | A valuation reserve had been established for the income tax effects attributable to the deferred tax assets to limit the federal and state tax benefit related to the charitable contribution carryover. | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | (53 | ) | $ | (233 | ) | $ | (233 | ) | ||||
Reserve for charitable contribution carryforward | — | — | — | ||||||||||
Reduction in valuation allowance | 53 | 180 | — | ||||||||||
$ | — | $ | (53 | ) | $ | (233 | ) | ||||||
OFFBALANCE_SHEET_ACTIVITIES_Ta
OFF-BALANCE SHEET ACTIVITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Financial Instruments Outstanding whose Contract Amounts Represent Credit Risk | At December 31, 2014 and 2013, the following financial instruments were outstanding whose contract amounts represent credit risk: | ||||||||
Contract Amount | |||||||||
2014 | 2013 | ||||||||
Commitments to grant loans | $ | 21,594 | $ | 27,588 | |||||
Unfunded commitments under lines of credit | 183,512 | 132,825 | |||||||
Unadvanced portion of construction loans | 13,466 | 14,066 | |||||||
Standby letters of credit | 177 | 80 | |||||||
Commitments to purchase loans | 32,883 | 15,383 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Future Minimum Rent Commitments under Operating Leases | Pursuant to the terms of noncancelable lease agreements in effect at December 31, 2014, pertaining to banking premises and equipment, future minimum rent commitments under various operating leases are as follows: | ||||
2015 | $ | 427 | |||
2016 | 413 | ||||
2017 | 322 | ||||
2018 | 276 | ||||
2019 | 281 | ||||
Thereafter | 503 | ||||
$ | 2,222 | ||||
MINIMUM_REGULATORY_CAPITAL_REQ1
MINIMUM REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Actual Capital Amounts and Ratio | |||||||||||||||||||||||||
Actual | Minimum For Capital | Minimum To Be Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized Under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 145,653 | 12.99 | % | $ | 89,718 | 8 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 137,139 | 12.23 | % | 89,673 | 8 | % | $ | 112,092 | 10 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 136,684 | 12.19 | % | $ | 44,859 | 4 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 128,170 | 11.43 | % | 44,837 | 4 | % | $ | 67,255 | 6 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | $ | 136,684 | 10.05 | % | $ | 54,417 | 4 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 128,170 | 9.42 | % | 54,403 | 4 | % | $ | 68,003 | 5 | % | |||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 138,146 | 16.3 | % | $ | 67,806 | 8 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 117,849 | 13.91 | % | 67,782 | 8 | % | $ | 84,728 | 10 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 130,074 | 15.35 | % | $ | 33,903 | 4 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 109,777 | 12.96 | % | 33,891 | 4 | % | $ | 50,837 | 6 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | $ | 130,074 | 12.59 | % | $ | 41,323 | 4 | % | N/A | N/A | |||||||||||||||
Belmont Savings Bank | 109,777 | 10.62 | % | 41,334 | 4 | % | $ | 51,668 | 5 | % |
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Information Pertaining to Activity in Plan | Information pertaining to the activity in the plan is as follows: | ||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Change in benefit obligation: | |||||||||
Benefit obligation at beginning of year | $ | 729 | $ | 538 | |||||
Service cost | 258 | 242 | |||||||
Interest cost | 40 | 21 | |||||||
Establish prior service cost base | 63 | — | |||||||
Actuarial gain | (105 | ) | (72 | ) | |||||
Benefit obligation at end of year | 985 | 729 | |||||||
Funded status at end of year | $ | (985 | ) | $ | (729 | ) | |||
Accrued pension benefit | (1,069 | ) | (765 | ) | |||||
Accumulated benefit obligation | $ | 857 | $ | 670 | |||||
Components of Net Periodic Pension Cost | The components of net periodic pension cost are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Service cost | $ | 258 | $ | 242 | |||||
Interest cost | 40 | 21 | |||||||
Amortization of prior service cost | 6 | — | |||||||
Net periodic cost | $ | 304 | $ | 263 | |||||
Other Changes in Benefit Obligations Recognized in Other Comprehensive Income | Other changes in benefit obligations recognized in other comprehensive income are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Establish prior service cost base | $ | 63 | $ | — | |||||
Amortization of prior service cost | (6 | ) | — | ||||||
Net actuarial gain | (105 | ) | (72 | ) | |||||
Total recognized in other comprehensive income | $ | (48 | ) | $ | (72 | ) | |||
Amounts Recognized in Accumulated Other Comprehensive Loss, before Tax Effect | Amounts recognized in accumulated other comprehensive loss, before tax effect, consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Unrecognized prior service cost | $ | 57 | $ | — | |||||
Unrecognized net gain | (141 | ) | (36 | ) | |||||
$ | (84 | ) | $ | (36 | ) | ||||
Estimated Future Benefit Payments | Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows: | ||||||||
Year Ending | Amount | ||||||||
December 31, | |||||||||
2015 | $ | — | |||||||
2016 | — | ||||||||
2017 | 101 | ||||||||
2018 | 101 | ||||||||
2019 | 101 | ||||||||
Years 2020-2024 | $ | 1,298 | |||||||
Schedule of Employee Stock Ownership Plan (ESOP) Disclosures | At December 31, 2014, the remaining principal balance on the ESOP debt is payable as follows: | ||||||||
Years Ending | Amount | ||||||||
December 31, | |||||||||
2015 | $ | 102 | |||||||
2016 | 105 | ||||||||
2017 | 109 | ||||||||
2018 | 113 | ||||||||
2019 | 116 | ||||||||
Thereafter | 3,730 | ||||||||
$ | 4,275 | ||||||||
Shares held by the ESOP include the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Unallocated | 408,955 | 424,271 | |||||||
Allocated | 47,295 | 34,372 | |||||||
456,250 | 458,643 | ||||||||
Defined Benefit Obligations | |||||||||
Schedule of Assumptions Used | The assumptions used to determine the benefit obligation are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Discount rate | 4 | % | 5 | % | |||||
Rate of compensation increase | 3 | % | 3 | % | |||||
Net Periodic Benefit Cost | |||||||||
Schedule of Assumptions Used | The assumptions used to determine net periodic pension cost are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Discount rate | 5 | % | 4 | % | |||||
Rate of compensation increase | 3 | % | 3 | % |
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Cumulatively Granted Stock Options and Restricted Stock Awards Net of Forfeitures | The following table presents the amount of cumulatively granted stock options and restricted stock awards, net of forfeitures, through December 31, 2014 under the BSB Bancorp, Inc. 2012 Equity Incentive Plan: | ||||||||||||||||||||||||
Authorized | Authorized | Authorized | Cumulative Granted | Outstanding | |||||||||||||||||||||
Stock | Restricted | Total | Net of Forfeitures | Total | |||||||||||||||||||||
Option Awards | Stock Awards | Stock | Restricted | ||||||||||||||||||||||
Option Awards | Stock Awards | ||||||||||||||||||||||||
917,286 | 366,914 | 1,284,200 | 886,040 | 363,570 | 1,249,610 | ||||||||||||||||||||
Pre-Tax Expense Associated with Stock Option and Restricted Stock Awards and Related Tax Benefits Recognized | The following table presents the pre-tax expense associated with stock option and restricted stock awards and the related tax benefits recognized: | ||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Stock based compensation expense | |||||||||||||||||||||||||
Stock options | $ | 847 | $ | 778 | |||||||||||||||||||||
Restricted stock awards | 906 | 869 | |||||||||||||||||||||||
Total stock based award expense | $ | 1,753 | $ | 1,647 | |||||||||||||||||||||
Related tax benefits recognized in earnings | $ | 511 | $ | 481 | |||||||||||||||||||||
Compensation Cost Related to Non-Vested Awards not Yet Recognized and Weighted Average Recognition Period | Total compensation cost related to non-vested awards not yet recognized and the weighted average period (in years) over which it is expected to be recognized is as follows: | ||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Amount | Weighted | ||||||||||||||||||||||||
average period | |||||||||||||||||||||||||
Stock options | $ | 2,195 | 3 | ||||||||||||||||||||||
Restricted stock | 2,313 | 2.9 | |||||||||||||||||||||||
Total | $ | 4,508 | |||||||||||||||||||||||
Fair Value of Stock Options Granted Estimate on Date of Grant Using Black-Scholes Option-Pricing Model | The Company granted 23,760, 10,000, and 10,414 stock option awards on January 8, 2014, May 1, 2014 and October 8, 2014, respectively. The fair value of the stock options granted was estimated on the date of the grant using the Black-Scholes option pricing model with the following assumptions used: | ||||||||||||||||||||||||
• | Expected volatility is based on the standard deviation of the historical volatility of the daily adjusted closing price of the Company’s shares. | ||||||||||||||||||||||||
• | Expected term represents the period of time that the option is expected to be outstanding. The Company determined the expected life using the “Simplified Method.” | ||||||||||||||||||||||||
• | Expected dividend yield is determined based on management’s expectations regarding issuing dividends in the foreseeable future. | ||||||||||||||||||||||||
• | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. | ||||||||||||||||||||||||
• | The stock-based compensation expense recognized in earnings is based on the amount of awards ultimately expected to vest, therefore a forfeiture assumption is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense recognized in 2014 and 2013 has been reduced for annualized estimated forfeitures of 7% for grants to employees, based on historical experience. | ||||||||||||||||||||||||
Year ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Date of grant | 1/8/14 | 5/1/14 | 10/8/14 | ||||||||||||||||||||||
Exercise price | $ | 15.26 | $ | 17.43 | $ | 18.31 | |||||||||||||||||||
Vesting period (1) | 5 years | 5 years | 5 years | ||||||||||||||||||||||
Expiration date | 1/8/24 | 5/1/24 | 10/8/24 | ||||||||||||||||||||||
Expected volatility | 15.64 | % | 15.98 | % | 15.69 | % | |||||||||||||||||||
Expected term | 6.5 years | 6.5 years | 6.5 years | ||||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
Risk free interest rate | 2.27 | % | 2.07 | % | 1.91 | % | |||||||||||||||||||
Fair value | $ | 3.44 | $ | 3.87 | $ | 3.93 | |||||||||||||||||||
1- | Vesting period begins on the date of grant | ||||||||||||||||||||||||
The option exercise price is derived from trading value on the date of grant. | |||||||||||||||||||||||||
Summary of Stock Option and Restricted Stock Awards | A summary of the status of the Company’s Stock Option and Restricted Stock Awards for the year ended December 31, 2014 is presented in the tables below: | ||||||||||||||||||||||||
Outstanding and exercisable | Non-vested | ||||||||||||||||||||||||
Stock option | Weighted average | Weighted average | Stock option | Weighted average | Weighted average | ||||||||||||||||||||
awards | exercise price | remaining | awards | grant date | remaining | ||||||||||||||||||||
contractual term | fair value | contractual term | |||||||||||||||||||||||
Balance at January 1, 2014 | 162,370 | $ | 12.04 | 8.91 | 690,663 | $ | 4.71 | 8.95 | |||||||||||||||||
Granted | — | — | 44,174 | 3.65 | 9.28 | ||||||||||||||||||||
Exercised | (23,076 | ) | 12.16 | 7.97 | — | — | — | ||||||||||||||||||
Vested | 144,248 | 12.12 | 7.95 | (144,248 | ) | 4.71 | 7.95 | ||||||||||||||||||
Forfeited | (917 | ) | 12.04 | 7.92 | (10,250 | ) | 3.93 | 9.78 | |||||||||||||||||
Balance at December 31, 2014 | 282,625 | $ | 12.08 | 8.42 | 580,339 | $ | 4.65 | 8.81 | |||||||||||||||||
Non-vested | |||||||||||||||||||||||||
restricted stock | |||||||||||||||||||||||||
awards | |||||||||||||||||||||||||
Balance at January 1, 2014 | 287,648 | ||||||||||||||||||||||||
Granted | 4,000 | ||||||||||||||||||||||||
Vested | (74,554 | ) | |||||||||||||||||||||||
Balance at December 31, 2014 | 217,094 | ||||||||||||||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Components of Earning Per Share | Earnings per share consisted of the following components for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income | $ | 4,291 | $ | 1,960 | $ | 1,401 | |||||||
Undistributed earnings attributable to participating securities | (139 | ) | (79 | ) | (5 | ) | |||||||
Net income available to common stockholders | $ | 4,152 | $ | 1,881 | $ | 1,396 | |||||||
Weighted average shares outstanding, basic | 8,361,880 | 8,419,437 | 8,727,615 | ||||||||||
Effect of dilutive shares | 91,547 | — | — | ||||||||||
Weighted average shares outstanding, assuming dilution | 8,453,427 | 8,419,437 | 8,727,615 | ||||||||||
Basic EPS | $ | 0.5 | $ | 0.22 | $ | 0.16 | |||||||
Effect of dilutive shares | (0.01 | ) | — | — | |||||||||
Diluted EPS | $ | 0.49 | $ | 0.22 | $ | 0.16 | |||||||
FAIR_VALUES_OF_ASSETS_AND_LIAB1
FAIR VALUES OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes financial assets measured at fair value on a recurring basis as of December 31, 2014 and 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Fair Value | |||||||||||||||||||||
At December 31, 2014 | |||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||
Corporate debt securities | $ | — | $ | 22,079 | $ | — | $ | 22,079 | |||||||||||||
Trading securities | |||||||||||||||||||||
Rabbi trust investments | 2,336 | — | — | 2,336 | |||||||||||||||||
Totals | $ | 2,336 | $ | 22,079 | $ | — | $ | 24,415 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Fair Value | |||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||
Corporate debt securities | $ | — | $ | 21,921 | $ | — | $ | 21,921 | |||||||||||||
Trading securities | |||||||||||||||||||||
Rabbi trust investments | 2,181 | 53 | — | 2,234 | |||||||||||||||||
Totals | $ | 2,181 | $ | 21,974 | $ | — | $ | 24,155 | |||||||||||||
Schedule of Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments are as follows: | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Carrying | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | Value | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 51,767 | $ | 51,767 | $ | 51,767 | $ | — | $ | — | |||||||||||
Interest-bearing time deposits with other banks | 131 | 132 | — | 132 | — | ||||||||||||||||
Held-to-maturity securities | 118,528 | 119,447 | — | 119,447 | — | ||||||||||||||||
Federal Home Loan Bank stock | 13,712 | 13,712 | — | 13,712 | — | ||||||||||||||||
Loans, net | 1,179,399 | 1,170,663 | — | — | 1,170,663 | ||||||||||||||||
Accrued interest receivable | 2,977 | 2,977 | 2,977 | — | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 984,562 | 987,353 | 758,349 | 229,004 | — | ||||||||||||||||
Federal Home Loan Bank advances | 285,100 | 285,266 | — | 285,266 | — | ||||||||||||||||
Securities sold under agreements to repurchase | 1,392 | 1,392 | — | 1,392 | — | ||||||||||||||||
Other borrowed funds | 1,067 | 1,056 | — | 1,056 | — | ||||||||||||||||
Accrued interest payable | 961 | 961 | 961 | — | — | ||||||||||||||||
Mortgagor’s escrow accounts | 1,726 | 1,726 | — | 1,726 | — | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Carrying | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | Value | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 38,042 | $ | 38,042 | $ | 38,042 | $ | — | $ | — | |||||||||||
Interest-bearing time deposits with other banks | 119 | 119 | — | 119 | — | ||||||||||||||||
Held-to-maturity securities | 119,776 | 118,981 | — | 118,981 | — | ||||||||||||||||
Federal Home Loan Bank stock | 7,712 | 7,712 | — | 7,712 | — | ||||||||||||||||
Loans, net | 839,013 | 833,423 | — | — | 833,423 | ||||||||||||||||
Accrued interest receivable | 2,241 | 2,241 | 2,241 | — | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 764,753 | 767,494 | 618,570 | 148,924 | — | ||||||||||||||||
Federal Home Loan Bank advances | 142,100 | 141,960 | — | 141,960 | — | ||||||||||||||||
Securities sold under agreements to repurchase | 2,127 | 2,127 | — | 2,127 | — | ||||||||||||||||
Other borrowed funds | 1,113 | 1,113 | — | 1,113 | — | ||||||||||||||||
Accrued interest payable | 683 | 683 | 683 | — | — | ||||||||||||||||
Mortgagor’s escrow accounts | 1,054 | 1,054 | — | 1,054 | — | ||||||||||||||||
Loans Held for Sale and Impaired Loans | |||||||||||||||||||||
Fair Value of Assets Measured on Nonrecurring Basis | The following table presents certain impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral at December 31, 2014 and 2013: | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 1,951 | |||||||||||||||
Totals | $ | — | $ | — | $ | 1,951 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 3,199 | |||||||||||||||
Totals | $ | — | $ | — | $ | 3,199 | |||||||||||||||
Other Real Estate Owned | |||||||||||||||||||||
Fair Value of Assets Measured on Nonrecurring Basis | The following tables (in thousands) present the non-financial assets that were re-measured and reported at the lower of cost or fair value at the periods indicated: | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Mortgage servicing rights | $ | — | $ | — | $ | 476 | |||||||||||||||
Totals | $ | — | $ | — | $ | 476 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Mortgage servicing rights | $ | — | $ | — | $ | 411 | |||||||||||||||
Totals | $ | — | $ | — | $ | 411 | |||||||||||||||
COMPREHENSIVE_INCOME_Tables
COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedules of Other Comprehensive Income | |||||||||||||
Year Ended December 31, 2014 | |||||||||||||
Pre Tax | Tax | After Tax | |||||||||||
Amount | Expense | Amount | |||||||||||
Securities available-for-sale: | |||||||||||||
Change in unrealized gain/loss during the period | $ | 230 | $ | (92 | ) | $ | 138 | ||||||
Reclassification adjustment for net gains included in net income1 | — | — | — | ||||||||||
Total securities available for sale | 230 | (92 | ) | 138 | |||||||||
Defined benefit post-retirement benefit plans: | |||||||||||||
Change in unrecognized pension plan benefit | 48 | (20 | ) | 28 | |||||||||
Total defined-benefit post-retirement benefit plans | 48 | (20 | ) | 28 | |||||||||
Total other comprehensive income | $ | 278 | $ | (112 | ) | $ | 166 | ||||||
Year Ended December 31, 2013 | |||||||||||||
Pre Tax | Tax (Expense) | After Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Securities available-for-sale: | |||||||||||||
Change in unrealized gain/loss during the period | $ | (454 | ) | $ | 173 | $ | (281 | ) | |||||
Reclassification adjustment for net gains included in net income1 | (34 | ) | 14 | (20 | ) | ||||||||
Total securities available for sale | (488 | ) | 187 | (301 | ) | ||||||||
Defined benefit post-retirement benefit plans: | |||||||||||||
Change in the actuarial gain/loss | 72 | (27 | ) | 45 | |||||||||
Total defined-benefit post-retirement benefit plans | 72 | (27 | ) | 45 | |||||||||
Total other comprehensive loss | $ | (416 | ) | $ | 160 | $ | (256 | ) | |||||
Year Ended December 31, 2012 | |||||||||||||
Pre Tax | Tax (Expense) | After Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Securities available-for-sale: | |||||||||||||
Change in unrealized gain/loss during the period | $ | 138 | $ | (47 | ) | 91 | |||||||
Reclassification adjustment for net gains included in net income1 | — | — | — | ||||||||||
Total securities available for sale | 138 | (47 | ) | 91 | |||||||||
Defined benefit post-retirement benefit plans: | |||||||||||||
Change in the actuarial gain/loss | (28 | ) | 10 | (18 | ) | ||||||||
Total defined-benefit post-retirement benefit plans | (28 | ) | 10 | (18 | ) | ||||||||
Total other comprehensive income | $ | 110 | $ | (37 | ) | $ | 73 | ||||||
1- | Reclassification adjustments are comprised of realized security gains and losses. The gains and losses have been reclassified out of accumulated other comprehensive loss and have affected certain lines in the consolidated statements of operations as follows; the pre-tax amount is included in net gain on sales and calls of securities, the tax expense amount is included in income tax expense and the after tax amount is included in net income. | ||||||||||||
Components of Accumulated Other Comprehensive Loss, included in Stockholders' Equity | The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: | ||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Net unrealized holding loss on available-for-sale securities, net of tax | $ | (72 | ) | $ | (210 | ) | |||||||
Unrecognized benefit pertaining to defined benefit plan, net of tax | 50 | 22 | |||||||||||
Accumulated other comprehensive loss | $ | (22 | ) | $ | (188 | ) | |||||||
CONDENSED_FINANCIAL_STATEMENTS1
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Balance Sheets | The following condensed financial statements are for the Parent Company only and should be read in conjunction with the consolidated financial statements of the Company. | ||||||||||||
Condensed Balance Sheets | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash and cash equivalents held at Belmont Savings Bank | $ | 2,754 | $ | 14,967 | |||||||||
Investment in Belmont Savings Bank | 128,495 | 109,890 | |||||||||||
Investment in BSB Funding Corp. | 4,867 | 4,783 | |||||||||||
Deferred tax asset | 190 | 500 | |||||||||||
Other assets | 761 | 336 | |||||||||||
Total assets | $ | 137,067 | $ | 130,476 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Accrued expenses | 41 | 55 | |||||||||||
Other liabilities | 16 | — | |||||||||||
Total liabilities | 57 | 55 | |||||||||||
Stockholders’ equity | 137,010 | 130,421 | |||||||||||
Total liabilities and stockholders’ equity | $ | 137,067 | $ | 130,476 | |||||||||
Condensed Statements of Operations | Condensed Statements of Operations | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest and dividend income: | |||||||||||||
Interest on cash equivalents | $ | 11 | $ | 27 | $ | 42 | |||||||
Dividends from subsidiaries | — | — | — | ||||||||||
Total interest and dividend income | 11 | 27 | 42 | ||||||||||
Interest expense: | — | — | — | ||||||||||
Net interest and dividend income | 11 | 27 | 42 | ||||||||||
Non-interest income | — | — | — | ||||||||||
Non-interest expense | 269 | 248 | 303 | ||||||||||
Loss before income taxes and equity in undistributed earnings of subsidiaries | (258 | ) | (221 | ) | (261 | ) | |||||||
Income tax (benefit) provision | (156 | ) | (268 | ) | (105 | ) | |||||||
(Loss) income before equity in income of subsidiaries | (102 | ) | 47 | (156 | ) | ||||||||
Equity in undistributed earnings of Belmont Savings Bank | 4,308 | 1,826 | 1,469 | ||||||||||
Equity in undistributed earnings of BSB Funding Corp | 85 | 87 | 88 | ||||||||||
Net income | $ | 4,291 | $ | 1,960 | $ | 1,401 | |||||||
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 4,291 | $ | 1,960 | $ | 1,401 | |||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||
Equity in undistributed earnings of Belmont Savings Bank | (4,308 | ) | (1,826 | ) | (1,469 | ) | |||||||
Equity in undistributed earnings of BSB Funding Corp. | (85 | ) | (87 | ) | (88 | ) | |||||||
Deferred income tax expense | 363 | 193 | 52 | ||||||||||
Change in deferred tax valuation allowance | (53 | ) | (180 | ) | — | ||||||||
Other, net | (423 | ) | (239 | ) | (122 | ) | |||||||
Net cash used in operating activities | (215 | ) | (179 | ) | (226 | ) | |||||||
Cash flows from investing activities: | |||||||||||||
Investment in Belmont Savings Bank | (12,000 | ) | (20,000 | ) | — | ||||||||
Net cash used in investing activities | (12,000 | ) | (20,000 | ) | — | ||||||||
Cash flows from financing activities: | |||||||||||||
Repurchase of common stock | — | (6,478 | ) | — | |||||||||
Proceeds from exercise of stock options, net of cash paid | 45 | — | — | ||||||||||
Restricted stock awards issued, net of awards surrendered | (43 | ) | — | — | |||||||||
Net cash provided by (used in) financing activities | 2 | (6,478 | ) | — | |||||||||
Net decrease in cash and cash equivalents | (12,213 | ) | (26,657 | ) | (226 | ) | |||||||
Cash and cash equivalents at beginning of period | 14,967 | 41,624 | 41,850 | ||||||||||
Cash and cash equivalents at end of period | $ | 2,754 | $ | 14,967 | $ | 41,624 | |||||||
QUARTERLY_DATA_UNAUDITED_Table
QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Results of Operations | Quarterly results of operations are as follows: | ||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
Interest and dividend income | $ | 10,600 | $ | 10,036 | $ | 9,268 | $ | 8,751 | $ | 8,875 | $ | 7,995 | $ | 7,136 | $ | 7,005 | |||||||||||||||||
Interest expense | 2,068 | 1,896 | 1,659 | 1,428 | 1,316 | 1,223 | 1,222 | 1,226 | |||||||||||||||||||||||||
Net interest income | 8,532 | 8,140 | 7,609 | 7,323 | 7,559 | 6,772 | 5,914 | 5,779 | |||||||||||||||||||||||||
Provision for loan losses | 565 | 292 | 307 | 388 | 632 | 438 | 100 | 327 | |||||||||||||||||||||||||
Net interest income, after provision for loan losses | 7,967 | 7,848 | 7,302 | 6,935 | 6,927 | 6,334 | 5,814 | 5,452 | |||||||||||||||||||||||||
Non-interest income | 920 | 792 | 857 | 722 | 802 | 890 | 908 | 1,006 | |||||||||||||||||||||||||
Non-interest expense | 6,657 | 6,656 | 6,504 | 6,673 | 6,797 | 6,373 | 6,161 | 5,800 | |||||||||||||||||||||||||
Income before taxes | 2,230 | 1,984 | 1,655 | 984 | 932 | 851 | 561 | 658 | |||||||||||||||||||||||||
Income tax expense | 862 | 782 | 614 | 304 | 287 | 313 | 200 | 242 | |||||||||||||||||||||||||
Net income | $ | 1,368 | $ | 1,202 | $ | 1,041 | $ | 680 | $ | 645 | $ | 538 | $ | 361 | $ | 416 | |||||||||||||||||
Earnings per common share | |||||||||||||||||||||||||||||||||
Basic | $ | 0.16 | $ | 0.14 | $ | 0.12 | $ | 0.08 | $ | 0.07 | $ | 0.06 | $ | 0.04 | $ | 0.05 | |||||||||||||||||
Diluted | $ | 0.16 | $ | 0.14 | $ | 0.12 | $ | 0.08 | $ | 0.07 | $ | 0.06 | $ | 0.04 | $ | 0.05 |
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | |||
Stock issued, shares | 8,993,000 | ||
Stock issued, price per share | $10 | ||
Gross proceeds | $89,900,000 | ||
Shares sold to the Bank's employee stock ownership plan | 458,643 | 458,643 | |
Due days of accrual of interest on all loans | 90 days | ||
Originate loans with a loan-to-value | 80.00% | ||
Other liabilities | 9,707,000 | 8,107,000 | |
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Insured amount for per account deposit by Bank Insurance Fund | 250,000 | ||
Life insurance policy with individual carrier as a percentage of tier one capital | 15.00% | ||
Total Cash Surrender Value of life insurance policies as a percentage of tier one capital | 25.00% | ||
Commitments to Grant Loans | |||
Significant Accounting Policies [Line Items] | |||
Other liabilities | 88,000 | 114,000 | |
Belmont Savings Bank | |||
Significant Accounting Policies [Line Items] | |||
Stock issued, shares | 179,860 | ||
Cash contribution to charity | $200,000 |
Recovered_Sheet2
Restrictions on Cash and Amounts due From Banks - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents subject to withdrawals and usage restrictions | $15,263,000 | $8,816,000 |
Amortized_Cost_of_Available_fo
Amortized Cost of Available for Sale and Held-to-Maturity Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $22,199 | $22,271 |
Available-for-sale Securities, Gross Unrealized Gains | 86 | 75 |
Available-for-sale Securities, Gross Unrealized Losses | -206 | -425 |
Available-for-sale Securities, Fair Value | 22,079 | 21,921 |
Held-to-maturity securities, Amortized Cost Basis | 118,528 | 119,776 |
Held-to-maturity securities, Gross Unrealized Gains | 1,183 | 692 |
Held-to-maturity securities, Gross Unrealized Losses | -264 | -1,487 |
Held-to-maturity securities, Fair Value | 119,447 | 118,981 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 22,199 | 22,271 |
Available-for-sale Securities, Gross Unrealized Gains | 86 | 75 |
Available-for-sale Securities, Gross Unrealized Losses | -206 | -425 |
Available-for-sale Securities, Fair Value | 22,079 | 21,921 |
Held-to-maturity securities, Amortized Cost Basis | 17,551 | 20,519 |
Held-to-maturity securities, Gross Unrealized Gains | 164 | 120 |
Held-to-maturity securities, Gross Unrealized Losses | -37 | -489 |
Held-to-maturity securities, Fair Value | 17,678 | 20,150 |
U.S. government sponsored mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost Basis | 100,977 | 99,257 |
Held-to-maturity securities, Gross Unrealized Gains | 1,019 | 572 |
Held-to-maturity securities, Gross Unrealized Losses | -227 | -998 |
Held-to-maturity securities, Fair Value | $101,769 | $98,831 |
Amortized_Cost_Basis_and_Estim
Amortized Cost Basis and Estimated Fair Value of Debt Securities by Contractual Maturity (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Due within one year, Available-for-sale Securities, Amortized Cost Basis | $0 |
Due after one year through five years, Available-for-sale Securities, Amortized Cost Basis | 12,807 |
Due after five years through ten years, Available-for-sale Securities, Amortized Cost Basis | 9,392 |
Due after ten years, Available-for-sale Securities, Amortized Cost Basis | 0 |
Due within one year, Available-for-sale Securities, Fair Value | 0 |
Due after one year through five years, Available-for-sale Securities, Fair Value | 12,893 |
Due after five years through ten years, Available-for-sale Securities, Fair Value | 9,186 |
Due after ten years, Available-for-sale Securities, Fair Value | 0 |
Due within one year, Held-to-Maturity, Amortized Cost Basis | 0 |
Due after one year through five years, Held-to-Maturity, Amortized Cost Basis | 7,277 |
Due after five years through ten years, Held-to-Maturity, Amortized Cost Basis | 65,912 |
Due after ten years, Held-to-Maturity, Amortized Cost Basis | 45,339 |
Due within one year, Held-to-Maturity, Fair Value | 0 |
Due after one year through five years, Held-to-Maturity, Fair Value | 7,355 |
Due after five years through ten years, Held-to-Maturity, Fair Value | 66,256 |
Due after ten years, Held-to-Maturity, Fair Value | $45,836 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Securities [Line Items] | ||
Securities pledged to secure securities sold under agreements to repurchase | $3,830,000 | $4,832,000 |
Securities pledged to secure borrowings with Federal Home Loan Bank | 51,062,000 | 48,133,000 |
Securities pledged to secure available line of credit with Federal Home Loan Bank | 15,662,000 | 3,016,000 |
Number of securities that had unrealized losses | 21 | |
Securities that had unrealized losses, aggregate depreciation percentage | 1.31% | |
Rabbi Trust | ||
Investment Securities [Line Items] | ||
Trading securities, fair value | 2,300,000 | 2,200,000 |
Trading securities, unrealized holding gain (loss) | $65,000 | $81,000 |
Sales_of_Securities_Available_
Sales of Securities Available for Sale (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | |
Proceeds from sales | $17,985 |
Gross realized gains | 64 |
Gross realized losses | -30 |
Tax expense of securities gains/losses | $14 |
Securities_with_Gross_Unrealiz
Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $15,665 | $74,053 |
Less than 12 Months, Unrealized Losses | -71 | -1,517 |
12 Months or longer, Fair Value | 19,822 | 4,058 |
12 Months or longer, Unrealized Losses | -399 | -395 |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 4,970 | |
Less than 12 Months, Unrealized Losses | -30 | |
12 Months or longer, Fair Value | 4,185 | 4,052 |
12 Months or longer, Unrealized Losses | -206 | -395 |
Held-to-maturity Securities | Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 4,691 | 10,010 |
Less than 12 Months, Unrealized Losses | -37 | -489 |
U.S. government sponsored mortgage-backed securities | Held-to-maturity Securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 10,974 | 59,073 |
Less than 12 Months, Unrealized Losses | -34 | -998 |
12 Months or longer, Fair Value | 15,637 | 6 |
12 Months or longer, Unrealized Losses | ($193) |
Summary_of_Loans_Detail
Summary of Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | $1,180,663 | $841,932 | ||
Net deferred loan costs | 5,068 | 3,535 | ||
Net unamortized mortgage premiums | 2,549 | 1,504 | ||
Allowance for loan losses | -8,881 | -7,958 | -6,440 | -4,776 |
Total loans, net | 1,179,399 | 839,013 | ||
Construction loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 31,389 | 9,965 | ||
Allowance for loan losses | -228 | -134 | -198 | -188 |
Commercial real estate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 395,178 | 320,807 | ||
Allowance for loan losses | -4,043 | -3,621 | -3,039 | -1,969 |
Home equity loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 131,628 | 92,461 | ||
Allowance for loan losses | -828 | -681 | -466 | -632 |
Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 39,161 | 30,691 | ||
Allowance for loan losses | -458 | -419 | -470 | -321 |
Residential one-to-four family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 450,572 | 287,652 | ||
Allowance for loan losses | -2,364 | -2,189 | -1,412 | -986 |
Consumer loans Indirect auto loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 131,961 | 99,798 | ||
Allowance for loan losses | -778 | -749 | -772 | -664 |
Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 774 | 558 | ||
Allowance for loan losses | -11 | -26 | -19 | -16 |
Mortgage loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 1,008,767 | 710,885 | ||
Mortgage loans | Construction loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 31,389 | 9,965 | ||
Mortgage loans | Commercial real estate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 395,178 | 320,807 | ||
Mortgage loans | Home equity loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 131,628 | 92,461 | ||
Mortgage loans | Residential one-to-four family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 450,572 | 287,652 | ||
Consumer Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 171,896 | 131,047 | ||
Consumer Loan | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 39,161 | 30,691 | ||
Consumer Loan | Consumer loans Indirect auto loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | 131,961 | 99,798 | ||
Consumer Loan | Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans Balance | $774 | $558 |
Allowance_for_Loan_Losses_by_P
Allowance for Loan Losses by Portfolio Class (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | $7,958 | $6,440 | $4,776 |
Provision (benefit) | 1,552 | 1,498 | 2,736 |
Charge-offs | -658 | -135 | -1,269 |
Recoveries | 29 | 155 | 197 |
Ending balance | 8,881 | 7,958 | 6,440 |
Construction loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 134 | 198 | 188 |
Provision (benefit) | 94 | -64 | 10 |
Ending balance | 228 | 134 | 198 |
Commercial real estate loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 3,621 | 3,039 | 1,969 |
Provision (benefit) | 422 | 582 | 1,070 |
Ending balance | 4,043 | 3,621 | 3,039 |
Commercial loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 419 | 470 | 321 |
Provision (benefit) | 43 | -51 | 149 |
Charge-offs | -4 | ||
Ending balance | 458 | 419 | 470 |
Home equity loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 681 | 466 | 632 |
Provision (benefit) | 346 | 235 | 453 |
Charge-offs | -199 | -20 | -715 |
Recoveries | 96 | ||
Ending balance | 828 | 681 | 466 |
Residential one-to-four family | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 2,189 | 1,412 | 986 |
Provision (benefit) | 550 | 709 | 608 |
Charge-offs | -375 | -225 | |
Recoveries | 68 | 43 | |
Ending balance | 2,364 | 2,189 | 1,412 |
Consumer loans Indirect auto loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 749 | 772 | 664 |
Provision (benefit) | 65 | -30 | 343 |
Charge-offs | -51 | -62 | -281 |
Recoveries | 15 | 69 | 46 |
Ending balance | 778 | 749 | 772 |
Consumer loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 26 | 19 | 16 |
Provision (benefit) | 42 | 39 | |
Charge-offs | -29 | -53 | -48 |
Recoveries | 14 | 18 | 12 |
Ending balance | 11 | 26 | 19 |
Unallocated | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 139 | 64 | |
Provision (benefit) | 32 | 75 | 64 |
Ending balance | $171 | $139 | $64 |
Individually_Impaired_Loans_by
Individually Impaired Loans by Class of Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, Loan balance | $10,446 | $11,480 | ||
Individually evaluated for impairment, Loan allowance | 193 | 880 | ||
Collectively evaluated for impairment, Loan balance | 1,170,217 | 830,452 | ||
Collectively evaluated for impairment, Loan allowance | 8,688 | 7,078 | ||
Total Loan balance | 1,180,663 | 841,932 | ||
Total Loan, allowance | 8,881 | 7,958 | 6,440 | 4,776 |
Construction loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment, Loan balance | 31,389 | 9,965 | ||
Collectively evaluated for impairment, Loan allowance | 228 | 134 | ||
Total Loan balance | 31,389 | 9,965 | ||
Total Loan, allowance | 228 | 134 | 198 | 188 |
Commercial real estate loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, Loan balance | 3,882 | 4,081 | ||
Individually evaluated for impairment, Loan allowance | 5 | 11 | ||
Collectively evaluated for impairment, Loan balance | 391,296 | 316,726 | ||
Collectively evaluated for impairment, Loan allowance | 4,038 | 3,610 | ||
Total Loan balance | 395,178 | 320,807 | ||
Total Loan, allowance | 4,043 | 3,621 | 3,039 | 1,969 |
Commercial loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment, Loan balance | 39,161 | 30,691 | ||
Collectively evaluated for impairment, Loan allowance | 458 | 419 | ||
Total Loan balance | 39,161 | 30,691 | ||
Total Loan, allowance | 458 | 419 | 470 | 321 |
Home equity loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, Loan balance | 296 | 400 | ||
Collectively evaluated for impairment, Loan balance | 131,332 | 92,061 | ||
Collectively evaluated for impairment, Loan allowance | 828 | 681 | ||
Total Loan balance | 131,628 | 92,461 | ||
Total Loan, allowance | 828 | 681 | 466 | 632 |
Residential one-to-four family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, Loan balance | 6,256 | 6,982 | ||
Individually evaluated for impairment, Loan allowance | 188 | 869 | ||
Collectively evaluated for impairment, Loan balance | 444,316 | 280,670 | ||
Collectively evaluated for impairment, Loan allowance | 2,176 | 1,320 | ||
Total Loan balance | 450,572 | 287,652 | ||
Total Loan, allowance | 2,364 | 2,189 | 1,412 | 986 |
Consumer loans Indirect auto loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, Loan balance | 12 | 16 | ||
Collectively evaluated for impairment, Loan balance | 131,949 | 99,782 | ||
Collectively evaluated for impairment, Loan allowance | 778 | 749 | ||
Total Loan balance | 131,961 | 99,798 | ||
Total Loan, allowance | 778 | 749 | 772 | 664 |
Consumer loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, Loan balance | 1 | |||
Collectively evaluated for impairment, Loan balance | 774 | 557 | ||
Collectively evaluated for impairment, Loan allowance | 11 | 26 | ||
Total Loan balance | 774 | 558 | ||
Total Loan, allowance | 11 | 26 | 19 | 16 |
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment, Loan allowance | 171 | 139 | ||
Total Loan, allowance | $171 | $139 | $64 |
Impaired_Loans_Detail
Impaired Loans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with a related allowance for credit losses at, Recorded Investment | $4,246 | $6,935 | |
Impaired loans with a related allowance for credit losses at, Unpaid Principal Balance | 4,246 | 6,935 | |
Impaired loans with a related allowance for credit losses at, Average recorded Investment | 193 | 880 | |
Impaired loans with no related allowance for credit losses, Recorded Investment | 6,200 | 4,545 | |
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | 6,361 | 4,744 | |
Impaired loans with no related allowance for credit losses at, Average recorded Investment | 0 | 0 | |
Impaired loans with a related allowance for credit losses, Average recorded Investment | 4,677 | 4,390 | 1,757 |
Impaired loans with a related allowance for credit losses, Income Recognized | 222 | 69 | 14 |
Impaired loans with no related allowance for credit losses, Average recorded Investment | 4,976 | 8,183 | 4,340 |
Impaired loans with no related allowance for credit losses, Interest income recognized | 125 | 265 | 125 |
Construction loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with no related allowance for credit losses at, Average recorded Investment | 0 | 0 | |
Commercial real estate loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with a related allowance for credit losses at, Recorded Investment | 3,060 | 3,111 | |
Impaired loans with a related allowance for credit losses at, Unpaid Principal Balance | 3,060 | 3,111 | |
Impaired loans with a related allowance for credit losses at, Average recorded Investment | 5 | 11 | |
Impaired loans with no related allowance for credit losses, Recorded Investment | 822 | 970 | |
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | 822 | 970 | |
Impaired loans with no related allowance for credit losses at, Average recorded Investment | 0 | 0 | |
Impaired loans with a related allowance for credit losses, Average recorded Investment | 3,085 | 1,824 | |
Impaired loans with a related allowance for credit losses, Income Recognized | 115 | 59 | |
Impaired loans with no related allowance for credit losses, Average recorded Investment | 887 | 2,258 | 889 |
Impaired loans with no related allowance for credit losses, Interest income recognized | 34 | 118 | 32 |
Commercial loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with no related allowance for credit losses at, Average recorded Investment | 0 | 0 | |
Impaired loans with no related allowance for credit losses, Average recorded Investment | 35 | ||
Impaired loans with no related allowance for credit losses, Interest income recognized | 4 | ||
Home equity loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with no related allowance for credit losses, Recorded Investment | 296 | 400 | |
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | 298 | 599 | |
Impaired loans with no related allowance for credit losses at, Average recorded Investment | 0 | 0 | |
Impaired loans with a related allowance for credit losses, Average recorded Investment | 432 | ||
Impaired loans with a related allowance for credit losses, Income Recognized | 3 | ||
Impaired loans with no related allowance for credit losses, Average recorded Investment | 398 | 462 | 410 |
Impaired loans with no related allowance for credit losses, Interest income recognized | 8 | 17 | 13 |
Residential one-to-four family | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with a related allowance for credit losses at, Recorded Investment | 1,186 | 3,824 | |
Impaired loans with a related allowance for credit losses at, Unpaid Principal Balance | 1,186 | 3,824 | |
Impaired loans with a related allowance for credit losses at, Average recorded Investment | 188 | 869 | |
Impaired loans with no related allowance for credit losses, Recorded Investment | 5,070 | 3,158 | |
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | 5,229 | 3,158 | |
Impaired loans with no related allowance for credit losses at, Average recorded Investment | 0 | 0 | |
Impaired loans with a related allowance for credit losses, Average recorded Investment | 1,592 | 2,566 | 1,325 |
Impaired loans with a related allowance for credit losses, Income Recognized | 107 | 10 | 11 |
Impaired loans with no related allowance for credit losses, Average recorded Investment | 3,689 | 5,460 | 3,006 |
Impaired loans with no related allowance for credit losses, Interest income recognized | 83 | 130 | 76 |
Consumer loans Indirect auto loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with no related allowance for credit losses, Recorded Investment | 12 | 16 | |
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | 12 | 16 | |
Impaired loans with no related allowance for credit losses at, Average recorded Investment | 0 | 0 | |
Impaired loans with no related allowance for credit losses, Average recorded Investment | 2 | 3 | |
Consumer loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with no related allowance for credit losses, Recorded Investment | 1 | ||
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | 1 | ||
Impaired loans with no related allowance for credit losses at, Average recorded Investment | $0 | $0 |
Past_Due_and_NonAccrual_Loans_
Past Due and Non-Accrual Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days | $733 | $1,546 |
60-89 Days | 275 | |
90 Days or More | 2,540 | 1,966 |
Total Past Due | 3,548 | 3,512 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 2,770 | 4,115 |
Consumer Loan | Commercial loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
90 days or more and accruing | 0 | 0 |
Consumer Loan | Consumer loans Indirect auto loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days | 463 | 222 |
60-89 Days | 45 | |
90 Days or More | 12 | 16 |
Total Past Due | 520 | 238 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 12 | 16 |
Consumer Loan | Consumer loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
90 Days or More | 1 | |
Total Past Due | 1 | |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 1 | |
Real estate loans | Construction loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
90 days or more and accruing | 0 | 0 |
Real estate loans | Commercial real estate loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
90 Days or More | 38 | |
Total Past Due | 38 | |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 38 | |
Real estate loans | Home equity loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days | 270 | 914 |
90 Days or More | 96 | |
Total Past Due | 366 | 914 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 96 | 200 |
Real estate loans | Residential one-to-four family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days | 410 | |
60-89 Days | 230 | |
90 Days or More | 2,432 | 1,911 |
Total Past Due | 2,662 | 2,321 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | $2,662 | $3,860 |
Loans_Classified_by_Risk_Ratin
Loans Classified by Risk Rating (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | $1,180,663 | $841,932 | ||
Construction loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 31,389 | 9,965 | ||
Commercial real estate loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 395,178 | 320,807 | ||
Commercial loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 39,161 | 30,691 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 131,628 | 92,461 | ||
Residential one-to-four family | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 450,572 | 287,652 | ||
Consumer loans Indirect auto loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 131,961 | 99,798 | ||
Consumer loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 774 | 558 | ||
Loans rated 1-3 | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 457,061 | 347,701 | ||
Loans rated 1-3 | Construction loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 31,389 | 9,965 | ||
Loans rated 1-3 | Commercial real estate loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 386,513 | 307,093 | ||
Loans rated 1-3 | Commercial loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 39,159 | 30,643 | ||
Loans rated 4 | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 1,136 | 7,657 | ||
Loans rated 4 | Commercial real estate loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 4,277 | |||
Loans rated 4 | Commercial loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 2 | 48 | ||
Loans rated 4 | Home equity loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 200 | |||
Loans rated 4 | Residential one-to-four family | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 1,134 | 3,123 | ||
Loans rated 4 | Consumer loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 9 | |||
Loans rated 5 | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 12,960 | 15,053 | ||
Loans rated 5 | Commercial real estate loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 8,665 | 9,437 | ||
Loans rated 5 | Home equity loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 895 | 999 | ||
Loans rated 5 | Residential one-to-four family | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 3,400 | 4,613 | ||
Loans rated 5 | Consumer loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 4 | |||
Loans not rated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 709,506 | [1] | 471,521 | [1] |
Loans not rated | Home equity loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 130,733 | [1] | 91,262 | [1] |
Loans not rated | Residential one-to-four family | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 446,038 | [1] | 279,916 | [1] |
Loans not rated | Consumer loans Indirect auto loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | 131,961 | [1] | 99,798 | [1] |
Loans not rated | Consumer loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total Loans Balance | $774 | [1] | $545 | [1] |
[1] | Residential real estate, home equity, indirect auto and consumer loans are not formally risk rated by the Company unless the loans become delinquent. |
Loans_Additional_Information_D
Loans - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Contract | Contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | $9,226,000 | $9,266,000 |
Number of Contracts | 4 | 5 |
TDR's defaulted modification, number of contracts | 2 | 0 |
Financing receivables that have been modified by TDR's and subsequently defaulted, carrying amount | 1,900,000 | |
Financing receivables that have been modified by TDR's and subsequently defaulted, charge offs | 573,000 | |
Financing receivables that have been modified by TDR's and subsequently defaulted, allowances previously reported | 555,000 | |
Loans pledged to secure FHLB advances. | 518,400,000 | 415,900,000 |
Non Accrual Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | 1,551,000 | |
Residential one-to-four family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables that have been modified by TDR's and subsequently defaulted, carrying amount | 1,700,000 | |
Financing receivables that have been modified by TDR's and subsequently defaulted, charge offs | $200,000 | |
Troubled debt restructurings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Contracts | 4 | 5 |
Troubled_Debt_Restructuring_Ac
Troubled Debt Restructuring Accrual Status (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total TDRs | $9,226,000 | $9,266,000 |
Amount of specific allocation included in the allowance for loan losses associated with TDRs | 174,000 | 543,000 |
Additional commitments to lend to a borrower who has been a party to a TDR | 0 | 0 |
Accrual Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total TDRs | 7,675,000 | 7,366,000 |
Non Accrual Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total TDRs | $1,551,000 | $1,900,000 |
Troubled_Debt_Restructurings_o
Troubled Debt Restructurings on Financing Receivables (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Contract | Contract | |||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 4 | 5 | ||
Pre-modification outstanding recorded investment | $3,306 | $5,079 | ||
Post-modification outstanding recorded investment | 3,343 | [1] | 4,506 | [1] |
Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 1 | |||
Pre-modification outstanding recorded investment | 200 | |||
Post-modification outstanding recorded investment | 200 | [1] | ||
Real estate loans | Commercial real estate loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 1 | 4 | ||
Pre-modification outstanding recorded investment | 882 | 4,732 | ||
Post-modification outstanding recorded investment | 882 | [1] | 4,128 | [1] |
Real estate loans | Residential one-to-four family | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 2 | 1 | ||
Pre-modification outstanding recorded investment | 2,224 | 347 | ||
Post-modification outstanding recorded investment | $2,261 | [1] | $378 | [1] |
[1] | The post-modification balances represent the balance of the loan on the date of modifications. These amounts may show an increase when modifications include a capitalization of interest or taxes. |
Post_Modification_of_Troubled_
Post Modification of Troubled Debt Restructuring Balance (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||||
Post-modification outstanding recorded investment | $3,343 | [1] | $4,506 | [1] |
Extended Maturity | ||||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||||
Post-modification outstanding recorded investment | 882 | 1,370 | ||
Adjusted Interest Rate | ||||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||||
Post-modification outstanding recorded investment | 561 | 3,136 | ||
Interest only | ||||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||||
Post-modification outstanding recorded investment | $1,900 | |||
[1] | The post-modification balances represent the balance of the loan on the date of modifications. These amounts may show an increase when modifications include a capitalization of interest or taxes. |
Transfers_and_Servicing_Additi
Transfers and Servicing - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 16, 2006 | |
Loan | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Principal balance of loans sold to another financial institution | $10,500,000 | |||
Number of loans sold to another financial institution | 17 | |||
Initial period for repurchase of loan | 120 months | |||
Repurchase Agreement | Loan that becomes 90 days past due | |||
Valuation allowance adjustment | -12,000 | 43,000 | 36,000 | |
Residential Mortgage | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Proceed from sale of loans | 16,000,000 | 34,200,000 | 97,700,000 | |
Gains(loss) from sale of loans | 348,000 | 798,000 | 1,731,000 | |
Loans previously sold and serviced | 69,500,000 | 61,200,000 | ||
Transferred and Servicing Loan | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Total principal balance of loans | 1,100,000 | 1,100,000 | ||
Consumer loans Indirect auto loans | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Proceed from sale of loans | 17,500,000 | 63,600,000 | 99,700,000 | |
Gains(loss) from sale of loans | 138,000 | 226,000 | 789,000 | |
Loans previously sold and serviced | $94,700,000 | $124,800,000 |
Changes_in_Mortgage_Servicing_
Changes in Mortgage Servicing Rights (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Balance at beginning of period | $411,000 | $353,000 | |
Capitalization | 128,000 | 202,000 | 421,000 |
Amortization | -75,000 | -101,000 | -32,000 |
Valuation allowance adjustment | 12,000 | -43,000 | -36,000 |
Balance at end of period | $476,000 | $411,000 | $353,000 |
Summary_of_Cost_and_Accumulate
Summary of Cost and Accumulated Depreciation of Premises and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land | $161 | $161 |
Buildings | 3,505 | 3,331 |
Leasehold improvements | 2,165 | 2,152 |
Furniture and equipment | 6,040 | 5,925 |
Property, Plant and Equipment, Gross, Total | 11,871 | 11,569 |
Accumulated depreciation | -8,805 | -8,242 |
Premises and equipment, net | $3,066 | $3,327 |
Premises_and_Equipment_Additio
Premises and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $761,000 | $716,000 | $517,000 |
Assets impairment charges | $3,000 | $41,000 |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Time Deposits [Line Items] | ||
Aggregate amount of time deposits | $37.10 | $23.50 |
Brokered deposits included in time deposits | $85.10 | $18.70 |
Scheduled_Maturities_of_Time_D
Scheduled Maturities of Time Deposits (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Time Deposits [Line Items] | |
2015 | $62,028 |
2016 | 25,969 |
2017 | 26,375 |
2018 | 68,030 |
2019 | 43,811 |
Time Deposits Total | $226,213 |
ShortTerm_Borrowings_Additiona
Short-Term Borrowings - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Short-term Debt [Line Items] | ||
Federal Home Loan Bank advances, short-term | $182,000,000 | $80,000,000 |
Federal Home Loan Bank advances weighted average interest rate, short term | 0.25% | 0.17% |
Securities sold under agreements to repurchase | $1,392,000 | $2,127,000 |
Securities sold under agreements to repurchase, weighted average interest rate | 0.15% | 0.15% |
LongTerm_Debt_Consisting_FHLB_
Long-Term Debt Consisting FHLB Advances (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
2014 | $9,000 | |
2015 | 14,100 | 14,100 |
2016 | 7,000 | 7,000 |
2017 | 35,000 | 15,000 |
2018 | 27,000 | 17,000 |
2019 | 20,000 | |
Long-term Federal Home Loan Bank Advances, Total | $103,100 | $62,100 |
2014 | 1.26% | |
2015 | 1.17% | 1.17% |
2016 | 1.39% | 1.39% |
2017 | 1.14% | 0.90% |
2018 | 1.88% | 1.93% |
2019 | 1.89% | |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate | 1.50% | 1.35% |
Allocation_of_Federal_and_Stat
Allocation of Federal and State Income Taxes between Current and Deferred Portions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components Of Income Tax Expense Benefit [Line Items] | |||
Federal | $2,517 | $1,615 | $401 |
State | 653 | 388 | 59 |
Total current tax provision | 3,170 | 2,003 | 460 |
Federal | -419 | -606 | 195 |
State | -136 | -175 | 58 |
Total deferred tax provision | -555 | -781 | 253 |
Change in valuation allowance | -53 | -180 | |
Total provision for income taxes | $2,562 | $1,042 | $713 |
Summary_of_Reasons_for_Differe
Summary of Reasons for Differences between Statutory Income Tax Rate and Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Effective Tax Rates Line Items | |||
Statutory federal tax rate | 34.00% | 34.00% | 34.00% |
State taxes, net of federal tax benefit | 5.00% | 4.80% | 3.70% |
Bank-owned life insurance | -3.90% | -4.10% | -5.80% |
Change in valuation allowance | -0.80% | -6.00% | |
Share based compensation | 2.90% | 5.60% | 1.30% |
Other, net | 0.20% | 0.40% | 0.50% |
Effective tax rates | 37.40% | 34.70% | 33.70% |
Components_of_Net_Deferred_Tax
Components of Net Deferred Tax Asset (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ||||
Employee benefit and deferred compensation plans | $3,035 | $2,766 | ||
Allowance for loan losses | 3,582 | 3,224 | ||
Depreciation | 90 | |||
Accrued rent | 11 | 11 | ||
Interest on non-performing loans | 8 | 8 | ||
Stock options | 272 | 144 | ||
Charitable contribution carryover | 190 | 502 | ||
Unrealized loss on securities available for sale | 48 | 140 | ||
ESOP | 74 | 53 | ||
Gross deferred tax assets | 7,310 | 6,848 | ||
Valuation allowance | -53 | -233 | -233 | |
Deferred tax asset | 7,310 | 6,795 | ||
Mortgage servicing rights | -190 | -164 | ||
Deferred loan origination costs | -934 | -624 | ||
Restricted stock awards | -483 | -651 | ||
Depreciation | -110 | |||
Unrecognized retirement benefit | -34 | -14 | ||
Other | -27 | -86 | ||
Deferred Tax Liabilities, Gross | -1,668 | -1,649 | ||
Net deferred tax asset | $5,642 | $5,146 |
Schedule_of_Valuation_Reserve_
Schedule of Valuation Reserve (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Valuation Allowance [Line Items] | |||
Balance at beginning of year | ($53) | ($233) | ($233) |
Change in valuation allowance | -53 | -180 | |
Balance at ending of year | -53 | -233 | |
Valuation Allowances | |||
Valuation Allowance [Line Items] | |||
Change in valuation allowance | $53 | $180 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax [Line Items] | ||
Retained earnings which federal and state income taxes have not been provided | $3.60 | $3.60 |
Period for recapture in taxable income if no longer qualifies as a bank | 4 years | |
Federal and state tax rate applicable if no longer qualifies as a bank | 40.00% |
Financial_Instruments_Outstand
Financial Instruments Outstanding whose Contract Amounts Represent Credit Risk (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments to Grant Loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | $21,594 | $27,588 |
Unfunded Commitments under Line Of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | 183,512 | 132,825 |
Unfunded Commitments for Construction Loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | 13,466 | 14,066 |
Standby Letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | 177 | 80 |
Loan Purchase Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | $32,883 | $15,383 |
OffBalance_Sheet_Activities_Ad
Off-Balance Sheet Activities - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Letters of credit issued expiration period | 1 year |
Future_Minimum_Rent_Commitment
Future Minimum Rent Commitments under Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases Future Minimum Payments [Line Items] | |
2015 | $427 |
2016 | 413 |
2017 | 322 |
2018 | 276 |
2019 | 281 |
Thereafter | 503 |
Total | $2,222 |
Recovered_Sheet3
Commitments and Contingent Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Total rent expense | $407,000 | $353,000 | $291,000 |
Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Operating lease, optional renewal period | 1 year | ||
Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Operating lease, optional renewal period | 10 years |
Actual_Capital_Amounts_and_Rat
Actual Capital Amounts and Ratios (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Consolidated | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to Risk Weighted Assets, Actual Amount | $145,653 | $138,146 |
Total Capital to Risk Weighted Assets, Actual Ratio | 12.99% | 16.30% |
Total Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Amount | 89,718 | 67,806 |
Total Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier 1 Capital to Risk Weighted Assets, Actual Amount | 136,684 | 130,074 |
Tier 1 Capital to Risk Weighted Assets, Actual Ratio | 12.19% | 15.35% |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Amount | 44,859 | 33,903 |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital to Average Assets, Actual Amount | 136,684 | 130,074 |
Tier 1 Capital to Average Assets, Actual Ratio | 10.05% | 12.59% |
Tier 1 Capital to Average Assets, Minimum For Capital Adequacy Purposes Amount | 54,417 | 41,323 |
Tier 1 Capital to Average Assets, Minimum For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Belmont Savings Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to Risk Weighted Assets, Actual Amount | 137,139 | 117,849 |
Total Capital to Risk Weighted Assets, Actual Ratio | 12.23% | 13.91% |
Total Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Amount | 89,673 | 67,782 |
Total Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 112,092 | 84,728 |
Total Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 Capital to Risk Weighted Assets, Actual Amount | 128,170 | 109,777 |
Tier 1 Capital to Risk Weighted Assets, Actual Ratio | 11.43% | 12.96% |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Amount | 44,837 | 33,891 |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 67,255 | 50,837 |
Tier 1 Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.00% | 6.00% |
Tier 1 Capital to Average Assets, Actual Amount | 128,170 | 109,777 |
Tier 1 Capital to Average Assets, Actual Ratio | 9.42% | 10.62% |
Tier 1 Capital to Average Assets, Minimum For Capital Adequacy Purposes Amount | 54,403 | 41,334 |
Tier 1 Capital to Average Assets, Minimum For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital to Average Assets, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $68,003 | $51,668 |
Tier 1 Capital to Average Assets, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Recovered_Sheet4
Minimum Regulatory Capital Requirements - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 01, 2019 | Jan. 01, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Stock repurchase plan, number of shares repurchased | 0 | 0 | ||
Stock repurchase, value | $6,478 | |||
Stock Repurchase Program, One | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Stock repurchase plan, number of shares repurchased | 476,622 | |||
Stock repurchase, value | $6,478 | |||
Maximum | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Active stock repurchase plan to repurchase | 500,000 | 500,000 | ||
Basel III | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital to risk weighted assets | 4.50% | |||
Total capital to risk weighted assets | 8.00% | |||
Basel III | Subsequent Event | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital conservation buffer to risk weighted assets | 2.50% | 0.63% | ||
Basel III | Minimum | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital to risk weighted assets | 4.00% | |||
Tier 1 leverage ratio | 4.00% | |||
Basel III | Maximum | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital to risk weighted assets | 6.00% |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discount rate used to determine obligation | 4.00% | 5.00% | |||
Projected rate of salary increase | 3.00% | 3.00% | |||
Estimated prior service benefit to be amortized from accumulated other comprehensive loss | $63,000 | ||||
Net periodic cost | 304,000 | 263,000 | |||
Compensation expense recognized | 1,800,000 | 1,400,000 | 1,300,000 | ||
Percentage of eligible compensation of employee | 75.00% | ||||
Contributions by the Company | 757,000 | 729,000 | 635,000 | ||
Percentage of deferred compensation vested | 100.00% | ||||
Expense recognized by the company | 61,000 | 113,000 | 92,000 | ||
Capital Appreciation Plan, Benefits paid | 266,000 | ||||
ESOP, purchase shares | 458,643 | 458,643 | |||
Common stock price per share | $10 | ||||
Loan obtained by the ESOP, payable annually over | 30 years | ||||
Loan Obtained By ESOP Rate Per Annum Equal To Prime Rate | 3.25% | ||||
Fair value of unallocated shares | 7,600,000 | 6,400,000 | |||
Total compensation expense, Connection with ESOP | 268,000 | 209,000 | 185,000 | ||
Minimum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Fully vested participants, years of service to complete | 5 years | ||||
Maximum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Fully vested participants, years of service to complete | 10 years | ||||
Scenario, Forecast | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Estimated net actuarial loss to be amortized from accumulated other comprehensive loss | -8,000 | ||||
Estimated prior service benefit to be amortized from accumulated other comprehensive loss | 6,000 | ||||
Supplemental Employee Retirement Plans, Defined Benefit | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net periodic cost | 688,000 | 405,000 | 507,000 | ||
Deferred Compensation Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Recorded liability | 14,000 | 91,000 | |||
Deferred Compensation Plan | Rabbi Trust | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Recorded liability | 2,300,000 | 2,200,000 | |||
Directors | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Estimated liability | 648,000 | 553,000 | |||
Discount rate used to determine obligation | 4.00% | 5.00% | |||
Executive Officers | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Benefit upon termination of employment at or after age | 55 | ||||
Reduced benefits available prior to attaining age | 55 | ||||
Estimated liability | $1,800,000 | $1,500,000 | |||
Discount rate used to determine obligation | 4.00% | 5.00% | |||
Projected rate of salary increase | 3.00% | 3.00% | |||
Executive Officers | Minimum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of years of service to complete | 10 years | ||||
Executive Officers | Maximum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of years of service to complete | 10 years |
Information_Pertaining_to_Acti
Information Pertaining to Activity in Plan (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation at beginning of year | $729 | $538 |
Service cost | 258 | 242 |
Interest cost | 40 | 21 |
Establish prior service cost base | 63 | |
Actuarial gain | -105 | -72 |
Benefit obligation at end of year | 985 | 729 |
Funded status at end of year | -985 | -729 |
Accrued pension benefit | -1,069 | -765 |
Accumulated benefit obligation | $857 | $670 |
Assumption_used_to_Determine_B
Assumption used to Determine Benefit Obligation (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.00% | 5.00% |
Rate of compensation increase | 3.00% | 3.00% |
Components_of_Net_Periodic_Pen
Components of Net Periodic Pension Cost (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $258 | $242 |
Interest cost | 40 | 21 |
Amortization of prior service cost | 6 | |
Net periodic cost | $304 | $263 |
Changes_in_Benefit_Obligations
Changes in Benefit Obligations Recognized in Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Establish prior service cost base | $63 | |
Amortization of prior service cost | -6 | |
Net actuarial gain | -105 | -72 |
Total recognized in other comprehensive income | ($48) | ($72) |
Assumptions_Used_to_Determine_
Assumptions Used to Determine Net Periodic Pension Cost (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 5.00% | 4.00% |
Rate of compensation increase | 3.00% | 3.00% |
Amounts_Recognized_in_Accumula
Amounts Recognized in Accumulated Other Comprehensive Loss, before Tax Effect (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | $57 | |
Unrecognized net gain | -141 | -36 |
Total defined-benefit post-retirement benefit plans, Pre-Tax Amount | ($84) | ($36) |
Estimated_Future_Benefit_Payme
Estimated Future Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $0 |
2016 | 0 |
2017 | 101 |
2018 | 101 |
2019 | 101 |
Years 2020-2024 | $1,298 |
Remaining_Principal_Balance_on
Remaining Principal Balance on Employee Stock Ownership Plan Debt (Detail) (Employee Stock Ownership Plan, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |
2015 | $102 |
2016 | 105 |
2017 | 109 |
2018 | 113 |
2019 | 116 |
Thereafter | 3,730 |
Total | $4,275 |
Shares_Held_by_Employee_Stock_
Shares Held by Employee Stock Ownership Plan ESOP (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Unallocated | 408,955 | 424,271 |
Allocated | 47,295 | 34,372 |
Total | 456,250 | 458,643 |
Cumulatively_Granted_Stock_Opt
Cumulatively Granted Stock Options and Restricted Stock Awards Net of Forfeitures (Detail) | 0 Months Ended | 12 Months Ended | ||
Oct. 08, 2014 | 1-May-14 | Jan. 08, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized Stock Awards | 1,284,200 | |||
Stock Option Awards | 10,414 | 10,000 | 23,760 | |
Outstanding Total | 1,249,610 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized Stock Awards | 917,286 | |||
Stock Option Awards | 886,040 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized Stock Awards | 366,914 | |||
Restricted Stock Awards | 363,570 |
PreTax_Expense_Associated_with
Pre-Tax Expense Associated with Stock Option and Restricted Stock Awards and Related Tax Benefits Recognized (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock based compensation expense | |||
Stock options | $847 | $778 | |
Restricted stock awards | 906 | 869 | |
Total stock based award expense | 1,753 | 1,647 | 143 |
Related tax benefits recognized in earnings | $511 | $481 |
Compensation_Cost_Related_to_N
Compensation Cost Related to Non-Vested Awards not Yet Recognized and Weighted Average Recognition Period (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total | $4,508 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, amount | 2,195 |
Restricted stock, weighted average period | 3 years |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock, amount | $2,313 |
Restricted stock, weighted average period | 2 years 10 months 24 days |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) | 0 Months Ended | 12 Months Ended | |||
Oct. 08, 2014 | 1-May-14 | Jan. 08, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Option Awards | 10,414 | 10,000 | 23,760 | ||
Annualized estimated forfeitures, percentage | 7.00% | 7.00% |
Fair_Value_of_Stock_Options_Gr
Fair Value of Stock Options Granted Estimate on Date of Grant Using Black-Scholes Option-Pricing Model (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Date of grant 2014-08-01 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Date of grant | 1-Aug-14 | |
Exercise price | $15.26 | |
Vesting period | 5 years | [1] |
Expiration date | 1-Aug-14 | |
Expected volatility | 15.64% | |
Expected term | 6 years 6 months | |
Expected dividend yield | 0.00% | |
Risk free interest rate | 2.27% | |
Fair value | $3.44 | |
Date of grant 2014-05-01 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Date of grant | 1-May-14 | |
Exercise price | $17.43 | |
Vesting period | 5 years | [1] |
Expiration date | 1-May-14 | |
Expected volatility | 15.98% | |
Expected term | 6 years 6 months | |
Expected dividend yield | 0.00% | |
Risk free interest rate | 2.07% | |
Fair value | $3.87 | |
Date of grant 2014-10-08 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Date of grant | 8-Oct-14 | |
Exercise price | $18.31 | |
Vesting period | 5 years | [1] |
Expiration date | 8-Oct-14 | |
Expected volatility | 15.69% | |
Expected term | 6 years 6 months | |
Expected dividend yield | 0.00% | |
Risk free interest rate | 1.91% | |
Fair value | $3.93 | |
[1] | Vesting period begins on the date of grant |
Summary_of_Stock_Option_and_Re
Summary of Stock Option and Restricted Stock Grants (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Non-vested restricted stock awards | ||
Non-vested Stock option awards, Beginning balance | 162,370 | |
Stock option awards, exercised | -23,076 | |
Stock option awards, vested | 144,248 | |
Forfeited | -917 | |
Balance at December 31, 2014 | 282,625 | 162,370 |
Weighted Average Exercise Price | ||
Weighted average exercise price, Beginning Balance | $12.04 | |
Weighted average exercise price, Granted | $0 | |
Weighted average exercise price, exercised | $12.16 | |
Weighted average exercise price, Vested | $12.12 | |
Weighted average exercise price, Forfeited | $12.04 | |
Weighted average exercise price, Ending balance | $12.08 | $12.04 |
Weighted average remaining contractual term | ||
Weighted average remaining contractual term, Forfeited | 7 years 11 months 1 day | |
Weighted average remaining contractual term, Ending balance | 8 years 5 months 1 day | 8 years 10 months 28 days |
Weighted average remaining contractual term, exercised | 7 years 11 months 19 days | |
Weighted average remaining contractual term, Vested | 7 years 11 months 12 days | |
Weighted remaining contractual term, Ending balance | 8 years 5 months 1 day | 8 years 10 months 28 days |
Non-vested restricted stock awards | ||
Non-vested restricted stock awards, Beginning balance | 287,648 | |
Granted | 4,000 | |
Non-vested restricted stock awards, Vested | -74,554 | |
Non-vested restricted stock awards, Ending balance | 217,094 | 287,648 |
Nonvested Stock Option | ||
Non-vested restricted stock awards | ||
Non-vested Stock option awards, Beginning balance | 690,663 | |
Non-vested Stock option awards, Granted | 44,174 | |
Stock option awards, vested | -144,248 | |
Forfeited | -10,250 | |
Balance at December 31, 2014 | 580,339 | |
Weighted average grant date fair value | ||
Weighted average grant date fair value, Beginning balance | $4.71 | |
Weighted average grant date fair value, Granted | $3.65 | |
Weighted average grant date fair value, exercised | $0 | |
Weighted average grant date fair value, vested | $4.71 | |
Weighted average grant date fair value, Forfeited | $3.93 | |
Weighted average grant date fair value, Ending balance | $4.65 | |
Weighted average remaining contractual term | ||
Weighted average remaining contractual term, Beginning balance | 8 years 11 months 12 days | |
Weighted average remaining contractual term, Granted | 9 years 3 months 11 days | |
Weighted average remaining contractual term, exercised | 0 years | |
Weighted average remaining contractual term, Vested | 7 years 11 months 12 days | |
Weighted average remaining contractual term, Forfeited | 9 years 9 months 11 days | |
Weighted average remaining contractual term, Ending balance | 8 years 9 months 22 days | |
Weighted remaining contractual term, Ending balance | 8 years 9 months 22 days |
Earning_Per_Share_Detail
Earning Per Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Computation Of Earnings Per Share Line Items | |||
Net income | $4,291 | $1,960 | $1,401 |
Undistributed earnings attributable to participating securities | -139 | -79 | -5 |
Net income available to common stockholders | $4,152 | $1,881 | $1,396 |
Weighted average shares outstanding, basic | 8,361,880 | 8,419,437 | 8,727,615 |
Effect of dilutive shares | 91,547 | ||
Weighted average shares outstanding, assuming dilution | 8,453,427 | 8,419,437 | 8,727,615 |
Basic EPS | $0.50 | $0.22 | $0.16 |
Effect of dilutive shares | ($0.01) | ||
Diluted EPS | $0.49 | $0.22 | $0.16 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Computation Of Earnings Per Share Line Items | |||
Antidilutive securities excluded from computation of earnings per share | 19,368 | 850,180 | 79,446 |
Recovered_Sheet5
Restrictions on Dividends Loans and Advances - Additional Information (Detail) | Dec. 31, 2014 |
Restrictions on Dividends, Loans and Advances [Line Items] | |
Loans or advances as a percentage of capital stock and surplus | 10.00% |
Summary_of_Financial_Assets_Me
Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | $24,415 | $24,155 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 22,079 | 21,921 |
Rabbi Trust | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,336 | 2,234 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 2,336 | 2,181 |
Level 1 | Rabbi Trust | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,336 | 2,181 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 22,079 | 21,974 |
Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 22,079 | 21,921 |
Level 2 | Rabbi Trust | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $53 |
Loans_Remeasured_and_Reported_
Loans Remeasured and Reported at Fair Value (Detail) (Fair Value, Measurements, Nonrecurring, Level 3, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $1,951 | $3,199 |
Totals | $1,951 | $3,199 |
Assets_Remeasured_and_Reported
Assets Remeasured and Reported at Lower of Cost or Fair Value (Detail) (Level 3, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $476 | $411 |
Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $476 | $411 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $51,767,000 | $38,042,000 | $52,712,000 | $22,795,000 |
Interest-bearing time deposits with other banks | 49,492,000 | 35,839,000 | ||
Held-to-maturity securities | 118,528,000 | 119,776,000 | ||
Federal Home Loan Bank stock | 13,712,000 | 7,712,000 | ||
Loans, net | 1,179,399,000 | 839,013,000 | ||
Accrued interest receivable | 2,977,000 | 2,241,000 | ||
Deposits | 984,562,000 | 764,753,000 | ||
Federal Home Loan Bank advances | 285,100,000 | 142,100,000 | ||
Securities sold under agreements to repurchase | 1,392,000 | 2,127,000 | ||
Other borrowed funds | 1,067,000 | 1,113,000 | ||
Accrued interest payable | 961,000 | 683,000 | ||
Mortgagor's escrow accounts | 9,707,000 | 8,107,000 | ||
Cash and cash equivalents | 51,767,000 | 38,042,000 | ||
Interest-bearing time deposits with other banks | 132,000 | 119,000 | ||
Held-to-maturity securities | 119,447,000 | 118,981,000 | ||
Federal Home Loan Bank stock | 13,712,000 | 7,712,000 | ||
Loans, net | 1,170,663,000 | 833,423,000 | ||
Accrued interest receivable | 2,977,000 | 2,241,000 | ||
Deposits | 987,353,000 | 767,494,000 | ||
Federal Home Loan Bank advances | 285,266,000 | 141,960,000 | ||
Securities sold under agreements to repurchase | 1,392,000 | 2,127,000 | ||
Other borrowed funds | 1,056,000 | 1,113,000 | ||
Accrued interest payable | 961,000 | 683,000 | ||
Mortgagor's escrow accounts | 1,726,000 | 1,054,000 | ||
Carrying Amount | ||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 51,767,000 | 38,042,000 | ||
Interest-bearing time deposits with other banks | 131,000 | 119,000 | ||
Held-to-maturity securities | 118,528,000 | 119,776,000 | ||
Federal Home Loan Bank stock | 13,712,000 | 7,712,000 | ||
Loans, net | 1,179,399,000 | 839,013,000 | ||
Accrued interest receivable | 2,977,000 | 2,241,000 | ||
Deposits | 984,562,000 | 764,753,000 | ||
Federal Home Loan Bank advances | 285,100,000 | 142,100,000 | ||
Securities sold under agreements to repurchase | 1,392,000 | 2,127,000 | ||
Other borrowed funds | 1,067,000 | 1,113,000 | ||
Accrued interest payable | 961,000 | 683,000 | ||
Mortgagor's escrow accounts | 1,726,000 | 1,054,000 | ||
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 51,767,000 | 38,042,000 | ||
Accrued interest receivable | 2,977,000 | 2,241,000 | ||
Deposits | 758,349,000 | 618,570,000 | ||
Accrued interest payable | 961,000 | 683,000 | ||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||||
Interest-bearing time deposits with other banks | 132,000 | 119,000 | ||
Held-to-maturity securities | 119,447,000 | 118,981,000 | ||
Federal Home Loan Bank stock | 13,712,000 | 7,712,000 | ||
Deposits | 229,004,000 | 148,924,000 | ||
Federal Home Loan Bank advances | 285,266,000 | 141,960,000 | ||
Securities sold under agreements to repurchase | 1,392,000 | 2,127,000 | ||
Other borrowed funds | 1,056,000 | 1,113,000 | ||
Mortgagor's escrow accounts | 1,726,000 | 1,054,000 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||||
Loans, net | $1,170,663,000 | $833,423,000 |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Schedule of Other Comprehensive Income (Loss) [Line Items] | ||||
Change in unrealized gain/loss during the period, Pre-Tax Amount | $230,000 | ($454,000) | $138,000 | |
Reclassification adjustment for net (gains) losses included in net income | -34,000 | |||
Total defined-benefit post-retirement benefit plans, Pre-Tax Amount | 84 | 36 | ||
Total other comprehensive income, Pre-Tax Amount | 278,000 | -416,000 | 110,000 | |
Total other comprehensive income, Tax (Expense) Benefit | 112,000 | -160,000 | 37,000 | |
Total defined-benefit post-retirement benefit plans, After Tax Amount | 48,000 | 72,000 | ||
Other comprehensive income (loss), net of tax | 166,000 | -256,000 | 73,000 | |
After Tax | ||||
Schedule of Other Comprehensive Income (Loss) [Line Items] | ||||
Change in unrealized gain/loss during the period, After Tax Amount | 138,000 | -281,000 | 91,000 | |
Reclassification adjustment for net (gains) losses included in net income, After Tax Amount | -20,000 | [1] | ||
Total securities available for sale, After Tax Amount | 138,000 | -301,000 | 91,000 | |
Change in unrecognized pension plan benefit, After Tax Amount | 28,000 | |||
Change in the net actuarial gain/loss, After Tax Amount | 45,000 | -18,000 | ||
Total defined-benefit post-retirement benefit plans, After Tax Amount | 28,000 | 45,000 | -18,000 | |
Other comprehensive income (loss), net of tax | 166,000 | -256,000 | 73,000 | |
Income Tax Benefit | ||||
Schedule of Other Comprehensive Income (Loss) [Line Items] | ||||
Change in unrealized gain/loss during the period, Tax (Expense) Benefit | -92,000 | 173,000 | -47,000 | |
Reclassification adjustment for net (gains) losses included in net income, Tax (Expense) Benefit | 14,000 | [1] | ||
Total securities available for sale, Tax (Expense) Benefit | -92,000 | 187,000 | -47,000 | |
Change in unrecognized pension plan benefit, Tax (Expense) Benefit | -20,000 | |||
Change in the net actuarial gain/loss, Tax (Expense) Benefit | -27,000 | 10,000 | ||
Total defined-benefit post-retirement benefit plans, Tax (Expense) Benefit | -20,000 | -27,000 | 10,000 | |
Total other comprehensive income, Tax (Expense) Benefit | -112,000 | 160,000 | -37,000 | |
Pre Tax | ||||
Schedule of Other Comprehensive Income (Loss) [Line Items] | ||||
Change in unrealized gain/loss during the period, Pre-Tax Amount | 230,000 | -454,000 | 138,000 | |
Reclassification adjustment for net (gains) losses included in net income | -34,000 | [1] | ||
Total securities available for sale, Pre-Tax Amount | 230,000 | -488,000 | 138,000 | |
Change in unrecognized pension plan benefit, Pre-Tax Amount | 48,000 | |||
Change in the net actuarial gain/loss, Pre-Tax Amount | 72,000 | -28,000 | ||
Total defined-benefit post-retirement benefit plans, Pre-Tax Amount | 48,000 | 72,000 | -28,000 | |
Total other comprehensive income, Pre-Tax Amount | $278,000 | ($416,000) | $110,000 | |
[1] | Reclassification adjustments are comprised of realized security gains and losses. The gains and losses have been reclassified out of accumulated other comprehensive loss and have affected certain lines in the consolidated statements of operations as follows; the pre-tax amount is included in net gain on sales and calls of securities, the tax expense amount is included in income tax expense and the after tax amount is included in net income. |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income (loss) included in Stockholders' Equity (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | ($22) | ($188) |
Accumulated Other Comprehensive (Loss) Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net unrealized holding loss on available-for-sale securities, net of tax | -72 | -210 |
Unrecognized benefit pertaining to defined benefit plan, net of tax | 50 | 22 |
Accumulated other comprehensive loss | ($22) | ($188) |
Condensed_Balance_Sheets_of_Pa
Condensed Balance Sheets of Parent Company (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
ASSETS | ||||
Cash and cash equivalents held at Belmont Savings Bank | $51,767,000 | $38,042,000 | $52,712,000 | $22,795,000 |
Investments | 118,528,000 | 119,776,000 | ||
Deferred tax asset | 7,310,000 | 6,795,000 | ||
Other assets | 4,040,000 | 3,997,000 | ||
Total assets | 1,425,550,000 | 1,054,619,000 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other liabilities | 9,707,000 | 8,107,000 | ||
Total liabilities | 1,288,540,000 | 924,198,000 | ||
Stockholders' equity | 137,010,000 | 130,421,000 | 133,308,000 | 131,506,000 |
Total liabilities and stockholders' equity | 1,425,550,000 | 1,054,619,000 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents held at Belmont Savings Bank | 2,754,000 | 14,967,000 | 41,624,000 | 41,850,000 |
Deferred tax asset | 190,000 | 500,000 | ||
Other assets | 761,000 | 336,000 | ||
Total assets | 137,067,000 | 130,476,000 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accrued expenses | 41,000 | 55,000 | ||
Other liabilities | 16,000 | |||
Total liabilities | 57,000 | 55,000 | ||
Stockholders' equity | 137,010,000 | 130,421,000 | ||
Total liabilities and stockholders' equity | 137,067,000 | 130,476,000 | ||
Parent Company | Belmont Savings Bank | ||||
ASSETS | ||||
Investments | 128,495,000 | 109,890,000 | ||
Parent Company | Belmont Savings Bank Funding Corporation | ||||
ASSETS | ||||
Investments | $4,867,000 | $4,783,000 |
Condensed_Statements_of_Operat
Condensed Statements of Operations of Parent Company (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and dividend income: | |||
Interest on cash equivalents | $35,296 | $28,407 | $24,568 |
Dividends from subsidiaries | 143 | 28 | 47 |
Total interest and dividend income | 38,655 | 30,972 | 26,824 |
Interest expense: | 7,051 | 4,987 | 5,133 |
Net interest and dividend income | 31,604 | 25,985 | 21,691 |
Non-interest income | 3,291 | 3,606 | 4,705 |
Non-interest expense | 26,490 | 25,091 | 21,546 |
Income tax (benefit) provision | 2,562 | 1,042 | 713 |
Net income | 4,291 | 1,960 | 1,401 |
Parent Company | |||
Interest and dividend income: | |||
Interest on cash equivalents | 11 | 27 | 42 |
Dividends from subsidiaries | 0 | 0 | 0 |
Total interest and dividend income | 11 | 27 | 42 |
Interest expense: | 0 | 0 | 0 |
Net interest and dividend income | 11 | 27 | 42 |
Non-interest income | 0 | 0 | 0 |
Non-interest expense | 269 | 248 | 303 |
Loss before income taxes and equity in undistributed earnings of subsidiaries | -258 | -221 | -261 |
Income tax (benefit) provision | -156 | -268 | -105 |
(Loss) income before equity in income of subsidiaries | -102 | 47 | -156 |
Net income | 4,291 | 1,960 | 1,401 |
Parent Company | Belmont Savings Bank | |||
Interest and dividend income: | |||
Equity in undistributed income | 4,308 | 1,826 | 1,469 |
Parent Company | Belmont Savings Bank Funding Corporation | |||
Interest and dividend income: | |||
Equity in undistributed income | $85 | $87 | $88 |
Condensed_Statement_of_Cash_Fl
Condensed Statement of Cash Flows of Parent Company (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $4,291 | $1,960 | $1,401 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Deferred income tax expense | -608 | -961 | 253 |
Cash flows from investing activities: | |||
Net cash used in investing activities | -369,922 | -240,238 | -174,664 |
Cash flows from financing activities: | |||
Repurchase of common stock | -6,478 | ||
Proceeds from exercise of stock options, net of cash paid | 45 | ||
Restricted stock awards issued, net of awards surrendered | 43 | ||
Net increase (decrease) in cash and cash equivalents | 13,725 | -14,670 | 29,917 |
Cash and cash equivalents at beginning of period | 38,042 | 52,712 | 22,795 |
Cash and cash equivalents at end of period | 51,767 | 38,042 | 52,712 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 4,291 | 1,960 | 1,401 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Deferred income tax expense | 363 | 193 | 52 |
Change in deferred tax valuation allowance | -53 | -180 | |
Other, net | -423 | -239 | -122 |
Net cash used in operating activities | -215 | -179 | -226 |
Cash flows from investing activities: | |||
Net cash used in investing activities | -12,000 | -20,000 | |
Cash flows from financing activities: | |||
Repurchase of common stock | -6,478 | ||
Proceeds from exercise of stock options, net of cash paid | 45 | ||
Restricted stock awards issued, net of awards surrendered | -43 | ||
Net cash provided by (used in) financing activities | 2 | -6,478 | |
Net increase (decrease) in cash and cash equivalents | -12,213 | -26,657 | -226 |
Cash and cash equivalents at beginning of period | 14,967 | 41,624 | 41,850 |
Cash and cash equivalents at end of period | 2,754 | 14,967 | 41,624 |
Parent Company | Belmont Savings Bank | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||
Equity in undistributed earnings | -4,308 | -1,826 | -1,469 |
Cash flows from investing activities: | |||
Investments | -12,000 | -20,000 | |
Parent Company | Belmont Savings Bank Funding Corporation | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||
Equity in undistributed earnings | ($85) | ($87) | ($88) |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Detail) (USD $) | 12 Months Ended | 3 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Quarterly Financial Information [Line Items] | |||||||||||
Interest and dividend income | $38,655 | $30,972 | $26,824 | ||||||||
Interest expense | 7,051 | 4,987 | 5,133 | ||||||||
Net interest income | 31,604 | 25,985 | 21,691 | ||||||||
Provision for loan losses | 1,552 | 1,498 | 2,736 | ||||||||
Net interest income, after provision for loan losses | 30,052 | 24,487 | 18,955 | ||||||||
Non-interest income | 3,291 | 3,606 | 4,705 | ||||||||
Non-interest expense | 26,490 | 25,091 | 21,546 | ||||||||
Income before taxes | 6,853 | 3,002 | 2,114 | ||||||||
Income tax expense | 2,562 | 1,042 | 713 | ||||||||
Net income | 4,291 | 1,960 | 1,401 | ||||||||
Earnings per common share | |||||||||||
Basic | $0.50 | $0.22 | $0.16 | ||||||||
Diluted | $0.49 | $0.22 | $0.16 | ||||||||
Parent | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Interest and dividend income | 10,600 | 10,036 | 9,268 | 8,751 | 8,875 | 7,995 | 7,136 | 7,005 | |||
Interest expense | 2,068 | 1,896 | 1,659 | 1,428 | 1,316 | 1,223 | 1,222 | 1,226 | |||
Net interest income | 8,532 | 8,140 | 7,609 | 7,323 | 7,559 | 6,772 | 5,914 | 5,779 | |||
Provision for loan losses | 565 | 292 | 307 | 388 | 632 | 438 | 100 | 327 | |||
Net interest income, after provision for loan losses | 7,967 | 7,848 | 7,302 | 6,935 | 6,927 | 6,334 | 5,814 | 5,452 | |||
Non-interest income | 920 | 792 | 857 | 722 | 802 | 890 | 908 | 1,006 | |||
Non-interest expense | 6,657 | 6,656 | 6,504 | 6,673 | 6,797 | 6,373 | 6,161 | 5,800 | |||
Income before taxes | 2,230 | 1,984 | 1,655 | 984 | 932 | 851 | 561 | 658 | |||
Income tax expense | 862 | 782 | 614 | 304 | 287 | 313 | 200 | 242 | |||
Net income | $1,368 | $1,202 | $1,041 | $680 | $645 | $538 | $361 | $416 | |||
Earnings per common share | |||||||||||
Basic | $0.16 | $0.14 | $0.12 | $0.08 | $0.07 | $0.06 | $0.04 | $0.05 | |||
Diluted | $0.16 | $0.14 | $0.12 | $0.08 | $0.07 | $0.06 | $0.04 | $0.05 |