Wellesley Bancorp 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	Wellesley Bancorp, Inc.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Central Index Key	0001526952
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	WEBK
Entity Common Stock, Shares Outstanding		2,569,992
Entity Emerging Growth Company	false
Entity Small Business	true

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 7,305	$ 7,678
Short-term investments	74,048	34,972
Total cash and cash equivalents	81,353	42,650
Certificates of deposit	100	100
Securities available for sale, at fair value	33,793	66,770
Federal Home Loan Bank of Boston stock, at cost	6,162	4,747
Loans held for sale	6,351	0
Loans	832,803	743,770
Less allowance for loan losses	(7,218)	(6,738)
Loans, net	825,585	737,032
Bank-owned life insurance	7,946	7,769
Operating lease, right-of-use asset	6,852	0
Premises and equipment, net	3,785	3,924
Accrued interest receivable	2,769	2,288
Net deferred tax asset	2,717	2,804
Other assets	8,454	3,336
Total assets	985,867	871,420
Deposits:
Non-interest-bearing	133,187	116,926
Interest-bearing	625,558	601,005
Total deposits	758,745	717,931
Short-term borrowings	51,000	15,000
Long-term borrowings	77,533	58,528
Subordinated debt	9,854	9,832
Lease liability	6,907	0
Accrued expenses and other liabilities	10,043	4,999
Total liabilities	914,082	806,290
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value; 1,000,000 shares authorized, none issued		0
Common stock, $0.01 par value; 14,000,000 shares authorized, 2,569,542 and 2,525,611 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	26	25
Additional paid-in capital	27,500	26,462
Retained earnings	44,598	40,203
Accumulated other comprehensive income (loss)	592	(533)
Unearned compensation - ESOP	(931)	(1,027)
Total stockholders' equity	71,785	65,130
Total liabilities and stockholders' equity	$ 985,867	$ 871,420

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	14,000,000	14,000,000
Common Stock, Shares, Issued	2,569,542	2,525,611
Common Stock, Shares, Outstanding	2,569,542	2,525,611

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest and dividend income:
Interest and fees on loans and loans held for sale	$ 9,769	$ 7,941	$ 27,940	$ 22,702
Debt securities:
Taxable	335	364	1,076	1,050
Tax-exempt	76	82	238	246
Short-term investments and certificates of deposit	270	143	577	376
FHLB stock	75	86	213	244
Total interest and dividend income	10,525	8,616	30,044	24,618
Interest expense:
Deposits	2,606	1,668	7,665	4,318
Short-term borrowings	338	244	703	442
Long-term debt	521	273	1,154	1,004
Subordinated debt	157	158	471	474
Total interest expense	3,622	2,343	9,993	6,238
Net interest income	6,903	6,273	20,051	18,380
Provision for loan losses	70	130	480	390
Net interest income, after provision for loan losses	6,833	6,143	19,571	17,990
Non-interest income:
Customer service fees	43	42	131	130
Mortgage banking activities	102	35	181	72
Income on bank-owned life insurance	60	60	177	175
Wealth management fees	402	407	1,228	1,208
Miscellaneous	355	17	809	200
Total non-interest income	962	561	2,526	1,785
Non-interest expense:
Salaries and employee benefits	3,052	2,660	9,214	8,074
Occupancy and equipment	842	782	2,466	2,201
Data processing	325	265	930	734
FDIC insurance	11	150	336	486
Professional fees	191	159	637	572
Other general and administrative	579	566	1,871	1,666
Total non-interest expense	5,000	4,582	15,454	13,733
Income before income taxes	2,795	2,122	6,643	6,042
Provision for income taxes	759	565	1,800	1,628
Net income	2,036	1,557	4,843	4,414
Other comprehensive income:
Net unrealized holding (loss) gains on available-for-sale securities	(92)	(267)	1,509	(1,343)
Income tax benefit (expense)	17	54	(384)	335
Total other comprehensive (loss) gain income	(75)	(213)	1,125	(1,008)
Comprehensive income	$ 1,961	$ 1,344	$ 5,968	$ 3,406
Earnings per common share:
Basic	$ 0.82	$ 0.65	$ 1.97	$ 1.84
Diluted	$ 0.80	$ 0.62	$ 1.91	$ 1.77
Weighted average shares outstanding:
Basic	2,472,267	2,408,091	2,454,103	2,398,671
Diluted	2,554,454	2,511,241	2,545,786	2,499,093

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (loss) [Member]	Unearned Compensation - ESOP [Member]	Total
Balance at Dec. 31, 2017	$ 25	$ 25,601	$ 34,736	$ 39	$ (1,156)	$ 59,245
Balance (in shares) at Dec. 31, 2017	2,506,532
Comprehensive income			1,437	(653)		784
Reclassification related to Tax Cuts and Jobs Act			(7)	7
Dividends paid to common stockholders			(127)			(127)
Share-based compensation- equity incentive plan		107				107
ESOP shares committed to be allocated		61			33	94
Balance at Mar. 31, 2018	$ 25	25,769	36,039	(607)	(1,123)	60,103
Balance (in shares) at Mar. 31, 2018	2,506,532
Balance at Dec. 31, 2017	$ 25	25,601	34,736	39	(1,156)	59,245
Balance (in shares) at Dec. 31, 2017	2,506,532
Comprehensive income						3,406
Balance at Sep. 30, 2018	$ 25	26,278	38,740	(962)	(1,059)	63,022
Balance (in shares) at Sep. 30, 2018	2,525,186
Balance at Mar. 31, 2018	$ 25	25,769	36,039	(607)	(1,123)	60,103
Balance (in shares) at Mar. 31, 2018	2,506,532
Comprehensive income			1,420	(149)		1,271
Dividends paid to common stockholders			(137)			(137)
Restricted stock forfeitures (shares)	(400)
Share-based compensation- equity incentive plan		100				100
ESOP shares committed to be allocated		72			31	103
Balance at Jun. 30, 2018	$ 25	25,941	37,322	(756)	(1,092)	61,440
Balance (in shares) at Jun. 30, 2018	2,506,132
Comprehensive income			1,557	(213)		1,344
Dividends paid to common stockholders			(139)			(139)
Stock options exercised		154				154
Stock options exercised (shares)	19,054
Share-based compensation- equity incentive plan		106				106
ESOP shares committed to be allocated		77			33	110
Balance at Sep. 30, 2018	$ 25	26,278	38,740	(962)	(1,059)	63,022
Balance (in shares) at Sep. 30, 2018	2,525,186
Balance at Dec. 31, 2018	$ 25	26,462	40,203	(533)	(1,027)	65,130
Balance (in shares) at Dec. 31, 2018	2,525,611
Comprehensive income			1,302	643		1,945
Dividends paid to common stockholders			(140)			(140)
Restricted stock forfeitures (shares)	(2,000)
Restricted stock awards grant (in shares)	11,500
Stock options exercised		48				48
Stock options exercised (shares)	2,553
Share-based compensation- equity incentive plan		102				102
ESOP shares committed to be allocated		64			32	96
Balance at Mar. 31, 2019	$ 25	26,676	41,365	110	(995)	67,181
Balance (in shares) at Mar. 31, 2019	2,537,664
Balance at Dec. 31, 2018	$ 25	26,462	40,203	(533)	(1,027)	65,130
Balance (in shares) at Dec. 31, 2018	2,525,611
Comprehensive income						5,968
Balance at Sep. 30, 2019	$ 26	27,500	44,598	592	(931)	71,785
Balance (in shares) at Sep. 30, 2019	2,569,542
Balance at Mar. 31, 2019	$ 25	26,676	41,365	110	(995)	67,181
Balance (in shares) at Mar. 31, 2019	2,537,664
Comprehensive income			1,505	557		2,062
Dividends paid to common stockholders			(153)			(153)
Stock options exercised	$ 1	351				352
Stock options exercised (shares)	21,901
Share-based compensation- equity incentive plan		99				99
ESOP shares committed to be allocated		75			32	107
Balance at Jun. 30, 2019	$ 26	27,201	42,717	667	(963)	69,648
Balance (in shares) at Jun. 30, 2019	2,559,565
Comprehensive income			2,036	(75)		1,961
Dividends paid to common stockholders			(155)			(155)
Restricted stock forfeitures		(36)				(36)
Restricted stock forfeitures (shares)	(4,050)
Restricted stock awards grant (in shares)	3,000
Stock options exercised		169				169
Stock options exercised (shares)	11,027
Share-based compensation- equity incentive plan		97				97
ESOP shares committed to be allocated		69			32	101
Balance at Sep. 30, 2019	$ 26	$ 27,500	$ 44,598	$ 592	$ (931)	$ 71,785
Balance (in shares) at Sep. 30, 2019	2,569,542

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Dividends paid to common stockholders, per share	$ 0.06	$ 0.06	$ 0.055	$ 0.055	$ 0.055	$ 0.05
ESOP shares committed to be allocated, Shares	3,210	3,210	3,209	3,210	3,210	3,209

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 4,843	$ 4,414
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Provision for loan losses	480	390
Depreciation and amortization	611	574
Net amortization of securities	129	117
Gains on sales of securities, net	8	0
Principal balance of loans sold	13,782	5,857
Loans originated for sale	(20,133)	(6,555)
Accretion of net deferred loan fees	(493)	(435)
Amortization of subordinated debt issuance costs	22	23
Income on bank-owned life insurance	(177)	(175)
Deferred income tax provision	(297)	(262)
ESOP expense	304	307
Share-based compensation	262	313
Net change in other assets and liabilities	(467)	(500)
Net cash provided (used) by operating activities	(1,126)	4,068
Cash flows from investing activities:
Maturities, prepayments and calls	5,944	8,289
Purchases	0	(10,914)
Proceeds from sales	28,406	0
Purchase (redemption) of Federal Home Loan Bank stock	(1,415)	471
Net loan originations	(88,540)	(33,703)
Additions to premises and equipment	(534)	(728)
Proceeds on sale of premises and equipment	28	63
Net cash used by investing activities	(56,111)	(36,522)
Cash flows from financing activities:
Net increase in deposits	40,814	53,761
Proceeds from issuance of long-term debt	33,000	36,000
Repayments of long-term debt	(13,995)	(50,817)
Increase (decrease) in short-term borrowings	36,000	(10,500)
Stock options exercised	568	154
Common stock repurchased	1	0
Cash dividends paid on common stock	(448)	(403)
Net cash provided by financing activities	95,940	28,195
Net change in cash and cash equivalents	38,703	(4,259)
Cash and cash equivalents at beginning period	42,650	28,462
Cash and cash equivalents at end of period	81,353	24,203
Supplementary information:
Interest paid	9,762	6,083
Income taxes paid	$ 1,838	$ 2,086

BASIS OF PRESENTATION AND CONSO

BASIS OF PRESENTATION AND CONSOLIDATION	9 Months Ended
	Sep. 30, 2019
BASIS OF PRESENTATION AND CONSOLIDATION
BASIS OF PRESENTATION AND CONSOLIDATION	NOTE 1 – BASIS OF PRESENTATION AND CONSOLIDATION The accompanying unaudited interim consolidated financial statements include the accounts of Wellesley Bancorp, Inc. (the “Company”) and its wholly-owned subsidiary, Wellesley Bank (the “Bank”), the principal operating entity, and its wholly-owned subsidiaries: Wellesley Securities Corporation, which engages in the business of buying, selling and dealing in securities exclusively on its own behalf; Wellesley Investment Partners, LLC, formed to provide investment management services for individuals, not-for-profit entities and businesses; and Central Linden, LLC, to hold, manage and sell foreclosed real estate. All significant intercompany balances and transactions have been eliminated in consolidation. Assets under management at Wellesley Investment Partners, LLC are not included in these consolidated financial statements because they are not assets of the Company. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the instructions to Form 10‑Q and Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2018 Annual Report on Form 10‑K. The results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or for any other period.

LOAN POLICIES

LOAN POLICIES	9 Months Ended
	Sep. 30, 2019
LOAN POLICIES
LOAN POLICIES	NOTE 2 – LOAN POLICIES The loan portfolio consists of real estate, commercial and other loans to the Company’s customers in our primary market areas in eastern Massachusetts. The ability of the Company’s debtors to honor their contracts is dependent upon the economy in general and the state of real estate and construction sectors within our markets. Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred loan origination fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Interest is generally not accrued on loans that are identified as impaired or loans which are ninety days or more past due. Past due status is based on the contractual terms of the loan. Interest income previously accrued on such loans is reversed against current period interest income. Interest income on non-accrual loans is recognized only to the extent of interest payments received and is first applied to the outstanding principal balance when collectibility of principal is in doubt. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured through sustained payment performance for at least six months. Allowance for loan losses The allowance for loan losses is established through a provision for loan losses charged to earnings as losses are estimated to occur. Loan losses are charged against the allowance when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries 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. General component The general component is based on the following loan segments: residential real estate, commercial real estate, construction, commercial, home equity lines of credit and other consumer. Management considers a rolling average of historical losses for each segment based on a time frame appropriate to capture relevant loss data for each loan segment, generally three and 10 years. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume, concentrations and terms of loans; level of collateral protection; effects of changes in risk selection and underwriting standards; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no significant changes to the Company’s policies or methodology pertaining to the general component of the allowance during 2019 or 2018. The qualitative factor adjustments 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 – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not originate subprime loans. Most loans in this segment are collateralized by one-to-four family 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 of this segment. Commercial real estate – Loans in this segment are primarily income-producing properties in the Company’s primary market areas in eastern Massachusetts. The underlying cash flows generated by the properties may be 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 typically obtains rent rolls annually and continually monitors the cash flows of these loans. Construction – Loans in this segment include speculative construction loans primarily on residential properties for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Residential construction loans in this segment also include loans to build one-to-four family owner-occupied properties which are subject to the same credit quality factors as residential real estate. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Home equity lines of credit – Loans in this segment are collateralized by one-to-four family 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. Other consumer – Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the loan or, if the loan is collateral dependent, by the fair value of the collateral less estimated costs to sell. An allowance is established when the discounted cash flows or collateral value of the impaired loan are lower than the carrying value of that loan. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify performing individual residential and consumer loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that 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 initially classified as impaired. Unallocated component An unallocated component is maintained to cover additional uncertainties in management’s estimation 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.

COMPREHENSIVE INCOME

COMPREHENSIVE INCOME	9 Months Ended
	Sep. 30, 2019
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME	NOTE 3 – COMPREHENSIVE INCOME Accounting principles generally require that recognized revenue, expenses, and gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income/loss. The components of accumulated other comprehensive income (loss) and related tax effects are as follows: September 30, December 31, 2019 2018 (In thousands) Unrealized holding gains (losses) on securities available for sale $ 777 $ (732) Tax effect (185) 199 Net-of tax amount $ 592 $ (533)

RECENT ACCOUNTING AND REGULATOR

RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2019
RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS
RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS	NOTE 4 – RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842 ), which requires a lessee to record a right-of-use asset and liability representing the obligation to make lease payments for long-term leases. Upon adoption of the ASU, the Company recorded an increase in assets of $7.8 million and an increase in liabilities of $7.8 million on the Consolidated Balance Sheets as a result of recognizing the right-of-use assets and lease liabilities. In September 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. Entities will now use forward-looking information to better form their credit loss estimates. Credit losses on available-for-sale debt securities should be measured in a manner similar to current GAAP; however, recognized credit losses will be presented as an allowance rather than as a write-down. This ASU was scheduled to be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. However, the FASB recently voted to propose delaying the standard by three years for small reporting companies, which includes Wellesley Bank. To date, the Company has implemented a committee led by the Company’s Chief Financial Officer, which includes the Chief Lending Officer, to assist in identifying, implementing and evaluating the impact of the required changes to the loan loss estimation model and processes. The Company has evaluated the portfolio segments and various methodologies and is currently evaluating potential loss modeling processes as well as related controls and procedures. Management will continue to closely monitor legislative developments.

SECURITIES AVAILABLE FOR SALE

SECURITIES AVAILABLE FOR SALE	9 Months Ended
	Sep. 30, 2019
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE	NOTE 5 – SECURITIES AVAILABLE FOR SALE The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) September 30, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ 2,869 $ 79 $ (24) $ 2,924 Government-sponsored enterprises 2,381 63 (9) 2,435 SBA and other asset-backed securities 4,211 176 (2) 4,385 State and municipal bonds 7,459 387 — 7,846 Government-sponsored enterprise obligations 7,000 — (6) 6,994 Corporate bonds 9,096 139 (26) 9,209 $ 33,016 $ 844 $ (67) $ 33,793 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) December 31, 2018 Residential mortgage-backed securities: Government National Mortgage Association $ 3,846 $ 44 $ (43) $ 3,847 Government-sponsored enterprises 11,382 29 (188) 11,223 SBA and other asset-backed securities 11,720 64 (157) 11,627 State and municipal bonds 12,908 111 (111) 12,908 Government-sponsored enterprise obligations 8,000 — (187) 7,813 Corporate bonds 18,151 28 (322) 17,857 U.S. Treasury bills 1,495 — — 1,495 $ 67,502 $ 276 $ (1,008) $ 66,770 For the three and nine months ended September 30, 2019, proceeds from sales of available-for-sale securities amounted to $28.4 million with gross realized gains of $145 thousand and gross realized losses of $137 thousand, which are included in miscellaneous income. There were no sales of available-for-sale securities for the three and nine months ended September 30, 2018. The amortized cost and fair value of debt securities by contractual maturity at September 30, 2019 are as follows: Amortized Fair Cost Value (In thousands) Within 1 year $ 2,349 $ 2,349 After 1 year to 5 years 9,809 9,853 After 5 years to 10 years 7,799 8,108 After 10 years 3,598 3,739 23,555 24,049 Mortgage- and asset-backed securities 9,461 9,744 $ 33,016 $ 33,793 Expected maturities may differ from contractual maturities because the issuer, in certain instances, has the right to call or prepay obligations with or without call or prepayment penalties. Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than Twelve Months Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) September 30, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (24) $ 904 Government-sponsored enterprises — — (9) 367 SBA and other asset-backed securities (2) 305 — — State and municipal bonds — — — — Government-sponsored enterprise obligations (6) 2,994 — — Corporate bonds — — (26) 1,835 $ (8) $ 3,299 $ (59) $ 3,106 Less Than Twelve Months Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) December 31, 2018 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (43) $ 1,755 Government-sponsored enterprises (1) 103 (187) 7,880 SBA and other asset-backed securities — — (157) 5,455 State and municipal bonds (2) 386 (109) 6,257 Government-sponsored enterprise obligations — — (187) 7,813 Corporate bonds (29) 5,705 (293) 11,124 $ (32) $ 6,194 $ (976) $ 40,284 Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluations. At September 30, 2019, various debt securities have unrealized losses with aggregate depreciation of 1.03% from their aggregate amortized cost basis. These unrealized losses relate principally to the effect of interest rate changes on the fair value of debt securities and not an increase in credit risk of the issuers. As the Company does not intend to sell the securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost, which may be maturity, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2019.

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	9 Months Ended
	Sep. 30, 2019
LOANS AND ALLOWANCE FOR LOAN LOSSES
LOANS AND ALLOWANCE FOR LOAN LOSSES	NOTE 6 – LOANS AND ALLOWANCE FOR LOAN LOSSES A summary of the ending balances of loans is as follows: September 30, December 31, 2019 2018 (In thousands) Real estate loans: Residential – fixed $ 71,834 $ 64,218 Residential – variable 319,236 318,292 Commercial 166,193 148,006 Construction 150,732 106,723 707,995 637,239 Commercial loans: Secured 82,784 61,563 Unsecured 5,144 5,327 87,928 66,890 Consumer loans: Home equity lines of credit 36,955 39,486 Other 165 163 37,120 39,649 Total loans 833,043 743,778 Net deferred originations costs (240) (8) Total loans, net of deferred fees 832,803 743,770 Less: Allowance for loan losses (7,218) (6,738) Loans, net $ 825,585 $ 737,032 The following table summarizes the changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2019 and 2018: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) Three Months Ended September 30, 2019 Allowance at June 30, 2019 $ 2,151 $ 1,522 $ 1,626 $ 1,352 $ 262 $ 3 $ 232 $ 7,148 Provision (credit) for loan losses (35) (34) 211 30 (25) — (77) 70 Allowance at September 30, 2019 $ 2,116 $ 1,488 $ 1,837 $ 1,382 $ 237 $ 3 $ 155 $ 7,218 Three Months Ended September 30, 2018 Allowance at June 30, 2018 $ 1,999 $ 1,615 $ 1,459 $ 962 $ 257 $ 4 $ 117 $ 6,413 Provision (credit) for loan losses 108 4 5 (10) (6) (1) 30 130 Allowance at September 30, 2018 $ 2,107 $ 1,619 $ 1,464 $ 952 $ 251 $ 3 $ 147 $ 6,543 Nine Months Ended September 30, 2019 Allowance at December 31, 2018 $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Provision (credit) for loan losses (100) (114) 375 258 (20) — 81 480 Allowance at September 30, 2019 $ 2,116 $ 1,488 $ 1,837 $ 1,382 $ 237 $ 3 $ 155 $ 7,218 Nine Months Ended September 30, 2018 Allowance at December 31, 2017 $ 1,722 $ 1,520 $ 1,661 $ 917 $ 237 $ 2 $ 94 $ 6,153 Provision (credit) for loan losses 385 99 (197) 35 14 1 53 390 Allowance at September 30, 2018 $ 2,107 $ 1,619 $ 1,464 $ 952 $ 251 $ 3 $ 147 $ 6,543 Further information pertaining to the allowance for loan losses is as follows: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) September 30, 2019 Allowance related to impaired loans $ — $ — $ — $ — $ — $ — $ — $ — Allowance related to non-impaired loans 2,116 1,488 1,837 1,382 237 3 155 7,218 Total allowance $ 2,116 $ 1,488 $ 1,837 $ 1,382 $ 237 $ 3 $ 155 $ 7,218 Impaired loan balances $ 728 $ 2,635 $ — $ 796 $ 500 $ — $ — $ 4,659 Non-impaired loan balances 390,342 163,558 150,732 87,132 36,455 165 — 828,384 Total loans $ 391,070 $ 166,193 $ 150,732 $ 87,928 $ 36,955 $ 165 $ — $ 833,043 December 31, 2018 Allowance related to impaired loans $ — $ — $ — $ — $ — $ — $ — $ — Allowance related to non-impaired loans 2,216 1,602 1,462 1,124 257 3 74 6,738 Total allowance $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Impaired loan balances $ 746 $ 2,846 $ — $ — $ — $ — $ — $ 3,592 Non-impaired loan balances 381,764 145,160 106,723 66,890 39,486 163 — 740,186 Total loans $ 382,510 $ 148,006 $ 106,723 $ 66,890 $ 39,486 $ 163 $ — $ 743,778 The following is a summary of past due and non-accrual loans at September 30, 2019 and December 31, 2018: Past Due 90 30‑59 Past Due 90 Days or More Days 60‑89 Days Days or Total and Still Non-accrual Past Due Past Due More Past Due Accruing Loans (In thousands) September 30, 2019 Residential real estate $ 568 $ — $ — $ 568 $ — $ 568 Commercial real estate — — 548 548 — 548 Consumer loans — 500 — 500 — 500 Total $ 568 $ 500 $ 548 $ 1,616 $ — $ 1,616 December 31, 2018 Residential real estate $ 1,551 $ — $ — $ 1,551 $ — $ 581 Commercial real estate — — 556 556 — 556 Total $ 1,551 $ — $ 556 $ 2,107 $ — $ 1,137 The following is a summary of impaired loans: September 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 728 $ 745 $ 746 $ 764 Commercial real estate 2,635 2,760 2,846 2,974 Commercial loans 796 796 — — Consumer loans 500 500 — — Total impaired loans $ 4,659 $ 4,801 $ 3,592 $ 3,738 Further information pertaining to impaired loans follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (In thousands) Residential real estate $ 731 $ 8 $ 6 $ 738 $ 23 $ 18 Commercial real estate 2,669 24 — 2,739 84 11 Commercial loans 790 14 519 31 Consumer loans 125 — 42 — Total $ 4,315 $ 46 $ 6 $ 4,038 $ 138 $ 29 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (In thousands) Residential real estate $ 821 $ 13 $ 2 $ 421 $ 25 $ 5 Commercial real estate 2,949 32 6 1,627 61 34 Total $ 3,770 $ 45 $ 8 $ 2,048 $ 86 $ 39 New TDRs were recorded totaling $2.6 million, which included a new commitment of $500 thousand, in the three and nine months ended September 30, 2019 as a working capital, line of credit was granted to an existing impaired commercial loan relationship, consisting of two commercial real estate loans. There were no new troubled debt restructurings recorded during the three and nine months ended September 30, 2018. There were no TDRs that defaulted, generally considered 90 days past due or longer, during the three and nine months ended September 30, 2019 and 2018, and for which default was within one year of the restructure date. TDRs did not have a material impact on the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018. Credit Quality Information The Company utilizes an eleven-grade internal loan rating system for commercial real estate, construction and commercial loans. Loans rated 1‑4: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 5: 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 6: 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 7: 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 8: Loans in this category are considered uncollectible “loss” and of such little value that their continuance as loans is not warranted. Loans rated 9: Loans in this category only include commercial loans under $25 thousand with no other outstandings or relationships with the Company. Loans rated 10: Loans in this category include loans which otherwise require rating but which have not been rated, or loans for which the Company’s loan policy does not require rating. Loans rated 11: Loans in this category include credit commitments/relationships that cannot be rated due to a lack of financial information or inaccurate financial information. If within 60 days of the assignment of an 11 rating, information is still not available to allow a standard rating, the credit will be rated 6. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. During each calendar year, 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 monthly basis, the Company reviews the residential real estate and consumer loan portfolio for credit quality primarily through the use of delinquency reports. The following table presents the Company’s loans by risk rating: September 30, 2019 December 31, 2018 Commercial Commercial Real Estate Construction Commercial Total Real Estate Construction Commercial Total (In thousands) Loans rated 1‑4 $ 162,523 $ 150,732 $ 86,211 $ 399,466 $ 144,243 $ 106,723 $ 65,245 $ 316,211 Loans rated 5 885 — 1,049 1,934 917 — 1,645 2,562 Loans rated 6 2,237 — 668 2,905 2,290 — — 2,290 Loans rated 7 548 — — 548 556 — — 556 Total $ 166,193 $ 150,732 $ 87,928 $ 404,853 $ 148,006 $ 106,723 $ 66,890 $ 321,619

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2019
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	NOTE 7 - DERIVATIVE INSTRUMENTS Certain derivative instruments do not meet the requirements to be accounted for as hedging instruments. These undesignated derivative instruments are recognized on the consolidated balance sheet at fair value, with changes in the fair value recorded in miscellaneous income. Derivative Loan Commitments Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market. Outstanding derivative loan commitments expose the Company to the potential for changes in the fair value of the underlying loans as interest rates change, along with the value of the loan commitment. If interest rates increase, the value of these loan commitments will decrease. Conversely, if interest rates decrease, the value of these loan commitments will increase. The notional amount of undesignated derivative loan commitments was $1.8 million at September 30, 2019. The fair value of these commitments was an asset of $5 thousand. There were no outstanding derivative loan commitments at December 31, 2018. Forward Loan Sale Commitments To protect against the price risk inherent in derivative loan commitments, the Company utilizes “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. With a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded. The Company expects that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. The notional amount of undesignated forward loan sale commitments was $8.9 million at September 30, 2019. The fair value of these commitments was an asset of $3 thousand. There were no undesignated forward loan sale commitments at December 31, 2018. Interest Rate Swap Agreements The Company has entered into derivative financial instruments in the normal course of business to manage exposure to fluctuations in interest rates for its commercial customers. Typically these agreements have generally been limited to loan level interest rate swap agreements, which are entered into with borrowers and a third party. Typically, the Company enters into a floating-rate loan and a fixed-rate swap directly with a loan customer. The Company offsets the fixed-rate interest rate risk with an identical offsetting swap with a swap dealer. This is referred to as a “back-to-back” swap structure. As this structure has equal and offsetting interest rate contracts, fair value gains and losses recorded each month are offsetting. The notional amounts are amounts on which calculations, payments, and the value of the derivatives are based. Notional amounts do not represent direct credit exposures. The fair value of the derivative instruments is reflected on the Company’s consolidated balance sheet as other assets and other liabilities as appropriate. Changes in fair values are recorded in miscellaneous income in the consolidated statements of comprehensive income. A deposit account totaling $3.0 million is currently pledged to secure the Company’s liability for the offsetting interest rate swaps. A summary of the interest rate swaps is as follows: With commercial With third-party loan borrowers financial institutions September 30, December 31, September 30, December 31, 2019 2018 2019 2018 (dollars in thousands) Notional amount $ 66,098 $ 28,320 $ 66,098 $ 28,320 Receive (pay) fixed rate weighted average 4.68 % 5.09 % (4.68) % (5.09) % Receive (pay) variable rate weighted average (4.23) % (5.06) % 4.23 % 5.06 % Weighted average remaining years years 12.8 years years 12.8 years Unrealized fair value gain (loss) $ 4,832 $ 264 $ (4,832) $ (264)

FAIR VALUES OF FINANCIAL INSTRU

FAIR VALUES OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2019
FAIR VALUES OF FINANCIAL INSTRUMENTS
FAIR VALUES OF FINANCIAL INSTRUMENTS	NOTE 8 – FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value hierarchy The Company groups its assets measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted market prices in active exchange markets for identical assets and liabilities. Valuations are obtained from readily available pricing sources. Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities. Valuations are obtained from readily available pricing sources. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as those for which the determination of fair value requires significant management judgment or estimation. Transfers between levels are recognized at the end of a reporting period, if applicable. Determination of fair value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances there are no quoted market prices for 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 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 assets and liabilities. Assets and liabilities measured at fair value on a recurring basis Assets and liabilities measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018 are summarized below. Total Level 1 Level 2 Level 3 Fair Value (In thousands) September 30, 2019 Assets Securities available for sale $ — $ 33,793 $ — $ 33,793 Interest rate swap agreements — 4,832 — 4,832 Derivative loan commitments — — 5 5 Forward loan sale commitments — — 3 3 $ — $ 38,625 $ 8 $ 38,633 Liabilities Interest rate swap agreements $ — $ 4,832 $ — $ 4,832 December 31, 2018 Assets Securities available for sale $ — $ 66,770 $ — $ 66,770 Interest rate swap agreements — 264 — 264 $ — $ 67,034 $ — $ 67,034 Liabilities Interest rate swap agreements $ — $ 264 $ — $ 264 Fair value measurements for securities available for sale are obtained from a third-party pricing service and are not adjusted by management. All securities are measured at fair value in Level 2 based on valuation models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. The fair values of interest rate swap agreements are based on a valuation model that uses primarily observable inputs, such as benchmark yield curves and interest rates and also the value associated with the counterparty risk. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposure and remaining contractual life. The fair value of forward loan sale commitments and derivative loan commitments are based on fair values of the underlying mortgage loans, including servicing values as applicable. The fair value of derivative loan commitments also considers the probability of such commitments being exercised. Assets measured at fair value on a non-recurring basis The Company may also be required, from time to time, to measure certain other financial assets at fair value on a non-recurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market (“LOCOM”) accounting or write-downs of individual assets. Fair values for loans held for sale are based on commitments in effect from investors or prevailing market rates. September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Loans held for sale $ — $ — $ 6,351 $ — $ — $ — There were no liabilities measured at fair value on a non-recurring basis at September 30, 2019 and December 31, 2018. Summary of fair values of financial instruments The estimated fair values and related carrying amounts of the Company’s financial instruments are outlined in the table below. Certain financial instruments and all nonfinancial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. Fair Value Carrying Amount Level 1 Level 2 Level 3 Total (In thousands) September 30, 2019 Financial assets: Cash and cash equivalents $ 81,353 $ 81,353 $ — $ — $ 81,353 Certificates of deposit 100 100 — — 100 Securities available for sale 33,793 — 33,793 — 33,793 FHLB stock 6,162 — — 6,162 6,162 Loans held for sale 6,351 — — 6,351 6,351 Loans, net 825,585 — — 833,926 833,926 Accrued interest receivable 2,769 — — 2,769 2,769 Interest rate swap agreements 4,832 — 4,832 — 4,832 Derivative loan commitments 5 — — 5 5 Forward loan sale commitments 3 — — 3 3 Financial liabilities: Deposits $ 758,745 $ — $ — $ 758,924 $ 758,924 Short-term borrowings 51,000 — 51,000 — 51,000 Long-term debt 77,533 — 77,702 — 77,702 Subordinated debt 9,854 — — 9,765 9,765 Accrued interest payable 716 — — 716 716 Interest rate swap agreements 4,832 — 4,832 — 4,832 December 31, 2018 Financial assets: Cash and cash equivalents $ 42,650 $ 42,650 $ — $ — $ 42,650 Certificates of deposit 100 100 — — 100 Securities available for sale 66,770 — 66,770 — 66,770 FHLB stock 4,747 — — 4,747 4,747 Loans, net 737,032 — — 732,427 732,427 Accrued interest receivable 2,288 — — 2,288 2,288 Interest rate swap agreements 264 — 264 — 264 Financial liabilities: Deposits $ 717,931 $ — $ — $ 716,685 $ 716,685 Short-term borrowings 15,000 — 15,000 — 15,000 Long-term debt 58,528 — 58,192 — 58,192 Subordinated debt 9,832 — — 9,691 9,691 Accrued interest payable 487 — — 487 487 Interest rate swap agreements 264 — 264 — 264

EMPLOYEE STOCK OWNERSHIP PLAN

EMPLOYEE STOCK OWNERSHIP PLAN	9 Months Ended
	Sep. 30, 2019
EMPLOYEE STOCK OWNERSHIP PLAN
EMPLOYEE STOCK OWNERSHIP PLAN	NOTE 9 – EMPLOYEE STOCK OWNERSHIP PLAN The Bank maintains an Employee Stock Ownership Plan (the “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 limits. The Company granted a loan to the ESOP to purchase shares of the Company’s common stock on the closing date of the Company’s mutual-to-stock conversion in 2012. As of September 30, 2019, the ESOP held 176,177 shares or 6.9% of the common stock outstanding on that date. The loan is payable annually over 15 years at the rate of 3.25% per annum. The loan can be prepaid without penalty. Loan payments are expected to be funded by cash contributions from the Bank. 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 reinvested into shares to participants and cash dividends paid on unallocated shares will be 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. Shares held by the ESOP at September 30, 2019 include the following: Allocated 73,471 Committed to be allocated 9,629 Unallocated 93,077 176,177 The fair value of unallocated shares was $2.9 million at September 30, 2019. Total compensation expense recognized in connection with the ESOP for the three months ended September 30, 2019 and 2018 was $101 thousand and $109 thousand, respectively. ESOP-related compensation expense was $304 thousand and $307 thousand for the nine months ended September 30, 2019 and 2018, respectively.

EQUITY INCENTIVE PLANS

EQUITY INCENTIVE PLANS	9 Months Ended
	Sep. 30, 2019
EQUITY INCENTIVE PLANS
EQUITY INCENTIVE PLANS	NOTE 10 – EQUITY INCENTIVE PLANS Under the Company’s 2016 Equity Incentive Plan, the Company may grant restricted stock awards to its employees and directors for up to 75,000 shares of its common stock. A restricted stock award (the “award”) is a grant of shares of Company common stock for no consideration, subject to a vesting schedule or the satisfaction of market conditions or performance criteria. Awarded shares are held in reserve for each grantee by the Company’s transfer agent, and will be issued from previously authorized but unissued shares upon vesting. The fair value of the stock awards, based on the market price at the grant date, will be recognized over the five-year vesting period. At September 30, 2019,there remain 20,550 shares available to award under the Plan. Under the Company’s 2012 Equity Incentive Plan the Company granted stock options to its employees and directors in the form of incentive stock options and non-qualified stock options totaling 231,894 shares of its common stock. The exercise price of each stock option was not less than the fair market value of the Company’s common stock on the date of grant, and the maximum term of each option is 10 years from the date of each award. The vesting period was five years from the date of grant, with vesting at 20% per year. Under the 2012 Equity Incentive Plan, the Company also granted stock awards to management, employees and directors. Awarded shares are held in reserve for each grantee by the Company’s transfer agent, and were issued from previously authorized but unissued shares upon vesting. The fair value of the stock awards, based on the market price at the grant date, is recognized over the five-year vesting period. The Company’s 2012 Equity Incentive Plan was terminated upon approval of the 2016 Equity Incentive Plan. Stock Options A summary of option activity under the 2012 Equity Incentive Plan for the nine months ended September 30, 2019 is presented below: Outstanding Non-vested Weighted Weighted Average Average Weighted Remaining Aggregate Grant Average Contractual Intrinsic Date Fair Shares Exercise Price Term Value Shares Value (In thousands) (In years) (In thousands) (In thousands) Balance at January 1, 2019 193 $ 16.11 10 $ 4.13 Forfeited (3) 19.07 (3) 4.01 Exercised (35) 16.01 — — Balance at September 30, 2019 155 $ 16.09 $ 2,339 7 $ 4.18 Exercisable at September 30, 2019 148 $ 15.33 $ 2,193 — — For the three months ended September 30, 2019 and 2018, compensation expense applicable to the stock options was $4 thousand and $9 thousand, respectively. There was no recognized tax benefit related to this expense for the period ended September 30, 2019 and September 30, 2018, respectively. For the nine months ended September 30, 2019 and 2018, compensation expense applicable to the stock options was $17 thousand and $28 thousand, respectively. There was no recognized tax benefit related to this expense for the period ended September 30, 2019 and September 30, 2018, respectively. Unrecognized compensation expense for non-vested stock options totaled $6 thousand as of September 30, 2019, which will be recognized over the remaining weighted average vesting period of 0.4 years. Stock Awards For the nine months ended September 30, 2019, there were 14,500 restricted stock awards granted with a weighted average grant date fair value of $28.88. The following table presents the activity in non-vested stock awards under the equity incentive plans for the nine months ended September 30, 2019: Number of Grant-date Shares Fair Value (In thousands) Balance at January 1, 2019 27 $ 23.97 Restricted shares granted 15 28.88 Restricted shares forfeited (6) 24.39 Balance at September 30, 2019 36 $ 25.83 There was no activity in non-vested restricted stock awards under the 2016 or the 2012 Equity Incentive Plan for the three and nine months ended September 30, 2018. For the three months ended September 30, 2019 and 2018, compensation expense applicable to the stock awards was $56 thousand and $97 thousand, respectively, and the recognized tax benefit related to this expense was $16 thousand and $27 thousand, respectively. For the nine months ended September 30, 2019 and 2018, compensation expense applicable to the stock awards was $245 thousand and $285 thousand, respectively, and the recognized tax benefit related to this expense was $69 thousand and $80 thousand, respectively. Unrecognized compensation expense for non-vested restricted stock totaled $626 thousand as of September 30, 2019, which will be recognized over the remaining weighted average vesting period of 2.27 years.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2019
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE	NOTE 11 – EARNINGS PER COMMON SHARE Basic earnings per share represents net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Under the Company’s 2012 and 2016 Equity Incentive Plans, stock awards contain non-forfeitable dividend rights. Accordingly, these shares are considered outstanding for computation of basic earnings per share. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (In thousands, except earnings per share amounts) Net income applicable to common stock $ 2,036 $ 1,557 $ 4,843 $ 4,414 Average number of common shares issued 2,567 2,516 2,552 2,509 Less: Average unallocated ESOP shares (95) (108) (98) (111) Average number of common shares outstanding used to calculate basic earnings per common share 2,472 2,408 2,454 2,398 Effect of dilutive stock options 82 103 92 101 Average number of common shares outstanding used to calculate diluted earnings per share 2,554 2,511 2,546 2,499 Earnings per common share: Basic $ 0.82 $ 0.65 $ 1.97 $ 1.84 Diluted $ 0.80 $ 0.62 $ 1.91 $ 1.77 There were no anti-dilutive options that would have been excluded from the computations of diluted earnings per share for the three and nine months ended September 30, 2019 and 2018. Anti-dilutive shares are common stock equivalents with exercise prices in excess of the average market value of the Company’s stock for the periods presented.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2019
LEASES
LEASES	NOTE 12 – LEASES Effective January 1, 2019, operating leases are included in operating lease right-of-use (“ROU”) asset and liabilities in our consolidated balance sheet. These operating leases provide the physical facilities for our sales and service locations, administration and operations offices, and ATMs. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities were recognized at the accounting adoption date based on the present value of lease payments over the remaining lease term. As our leases do not provide an implicit rate, we use the Federal Home Loan Bank borrowing rates that best align with the lease term in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease, which we include when it is reasonably certain that we will exercise that option. For operating leases, the lease expense is recognized on a straight-line basis over the lease term. The operating lease expense for the three and nine months ended September 30, 2019 was $403 thousand and $1.2 million, respectively. The table below summarizes other information related to our operating leases as of September 30, 2019: Cash flows from operating leases, in thousands, year to date 2019 $ 1,194 Weighted average remaining lease term, in years Weighted average discount rate 3.13 % The table below summarizes the maturity of the operating lease liabilities as of September 30, 2019: (In thousands) 2019 $ 402 2020 1,632 2021 1,483 2022 1,182 2023 1,101 Thereafter 1,912 Total lease payments 7,712 Less imputed interest (805) Present value of lease liabilities $ 6,907 The Bank is under agreement to take possession of an additional 4,431 square feet of office space in 2020 for a term of 74 months that is expected to increase the Bank’s ROU assets by $1.3 million.

LOAN POLICIES (Policies)

LOAN POLICIES (Policies)	9 Months Ended
	Sep. 30, 2019
LOAN POLICIES
Allowance for loan losses	Allowance for loan losses The allowance for loan losses is established through a provision for loan losses charged to earnings as losses are estimated to occur. Loan losses are charged against the allowance when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries 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. General component The general component is based on the following loan segments: residential real estate, commercial real estate, construction, commercial, home equity lines of credit and other consumer. Management considers a rolling average of historical losses for each segment based on a time frame appropriate to capture relevant loss data for each loan segment, generally three and 10 years. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume, concentrations and terms of loans; level of collateral protection; effects of changes in risk selection and underwriting standards; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no significant changes to the Company’s policies or methodology pertaining to the general component of the allowance during 2019 or 2018. The qualitative factor adjustments 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 – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not originate subprime loans. Most loans in this segment are collateralized by one-to-four family 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 of this segment. Commercial real estate – Loans in this segment are primarily income-producing properties in the Company’s primary market areas in eastern Massachusetts. The underlying cash flows generated by the properties may be 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 typically obtains rent rolls annually and continually monitors the cash flows of these loans. Construction – Loans in this segment include speculative construction loans primarily on residential properties for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Residential construction loans in this segment also include loans to build one-to-four family owner-occupied properties which are subject to the same credit quality factors as residential real estate. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Home equity lines of credit – Loans in this segment are collateralized by one-to-four family 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. Other consumer – Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the loan or, if the loan is collateral dependent, by the fair value of the collateral less estimated costs to sell. An allowance is established when the discounted cash flows or collateral value of the impaired loan are lower than the carrying value of that loan. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify performing individual residential and consumer loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that 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 initially classified as impaired. Unallocated component An unallocated component is maintained to cover additional uncertainties in management’s estimation 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.

COMPREHENSIVE INCOME (Tables)

COMPREHENSIVE INCOME (Tables)	9 Months Ended
	Sep. 30, 2019
COMPREHENSIVE INCOME
Schedule of accumulated other comprehensive income (loss)	The components of accumulated other comprehensive income (loss) and related tax effects are as follows: September 30, December 31, 2019 2018 (In thousands) Unrealized holding gains (losses) on securities available for sale $ 777 $ (732) Tax effect (185) 199 Net-of tax amount $ 592 $ (533)

SECURITIES AVAILABLE FOR SALE (

SECURITIES AVAILABLE FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2019
SECURITIES AVAILABLE FOR SALE
Available-for-sale securities	The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) September 30, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ 2,869 $ 79 $ (24) $ 2,924 Government-sponsored enterprises 2,381 63 (9) 2,435 SBA and other asset-backed securities 4,211 176 (2) 4,385 State and municipal bonds 7,459 387 — 7,846 Government-sponsored enterprise obligations 7,000 — (6) 6,994 Corporate bonds 9,096 139 (26) 9,209 $ 33,016 $ 844 $ (67) $ 33,793 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) December 31, 2018 Residential mortgage-backed securities: Government National Mortgage Association $ 3,846 $ 44 $ (43) $ 3,847 Government-sponsored enterprises 11,382 29 (188) 11,223 SBA and other asset-backed securities 11,720 64 (157) 11,627 State and municipal bonds 12,908 111 (111) 12,908 Government-sponsored enterprise obligations 8,000 — (187) 7,813 Corporate bonds 18,151 28 (322) 17,857 U.S. Treasury bills 1,495 — — 1,495 $ 67,502 $ 276 $ (1,008) $ 66,770
Schedule of investments classified by contractual maturity date	The amortized cost and fair value of debt securities by contractual maturity at September 30, 2019 are as follows: Amortized Fair Cost Value (In thousands) Within 1 year $ 2,349 $ 2,349 After 1 year to 5 years 9,809 9,853 After 5 years to 10 years 7,799 8,108 After 10 years 3,598 3,739 23,555 24,049 Mortgage- and asset-backed securities 9,461 9,744 $ 33,016 $ 33,793
Available-for-sale securities, continuous unrealized loss position, fair value	Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than Twelve Months Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) September 30, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (24) $ 904 Government-sponsored enterprises — — (9) 367 SBA and other asset-backed securities (2) 305 — — State and municipal bonds — — — — Government-sponsored enterprise obligations (6) 2,994 — — Corporate bonds — — (26) 1,835 $ (8) $ 3,299 $ (59) $ 3,106 Less Than Twelve Months Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) December 31, 2018 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (43) $ 1,755 Government-sponsored enterprises (1) 103 (187) 7,880 SBA and other asset-backed securities — — (157) 5,455 State and municipal bonds (2) 386 (109) 6,257 Government-sponsored enterprise obligations — — (187) 7,813 Corporate bonds (29) 5,705 (293) 11,124 $ (32) $ 6,194 $ (976) $ 40,284

LOANS AND ALLOWANCE FOR LOAN _2

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	9 Months Ended
	Sep. 30, 2019
LOANS AND ALLOWANCE FOR LOAN LOSSES
Summary of the ending balances of loans	A summary of the ending balances of loans is as follows: September 30, December 31, 2019 2018 (In thousands) Real estate loans: Residential – fixed $ 71,834 $ 64,218 Residential – variable 319,236 318,292 Commercial 166,193 148,006 Construction 150,732 106,723 707,995 637,239 Commercial loans: Secured 82,784 61,563 Unsecured 5,144 5,327 87,928 66,890 Consumer loans: Home equity lines of credit 36,955 39,486 Other 165 163 37,120 39,649 Total loans 833,043 743,778 Net deferred originations costs (240) (8) Total loans, net of deferred fees 832,803 743,770 Less: Allowance for loan losses (7,218) (6,738) Loans, net $ 825,585 $ 737,032
Summary of changes in the allowance for loan losses by portfolio segment	The following table summarizes the changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2019 and 2018: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) Three Months Ended September 30, 2019 Allowance at June 30, 2019 $ 2,151 $ 1,522 $ 1,626 $ 1,352 $ 262 $ 3 $ 232 $ 7,148 Provision (credit) for loan losses (35) (34) 211 30 (25) — (77) 70 Allowance at September 30, 2019 $ 2,116 $ 1,488 $ 1,837 $ 1,382 $ 237 $ 3 $ 155 $ 7,218 Three Months Ended September 30, 2018 Allowance at June 30, 2018 $ 1,999 $ 1,615 $ 1,459 $ 962 $ 257 $ 4 $ 117 $ 6,413 Provision (credit) for loan losses 108 4 5 (10) (6) (1) 30 130 Allowance at September 30, 2018 $ 2,107 $ 1,619 $ 1,464 $ 952 $ 251 $ 3 $ 147 $ 6,543 Nine Months Ended September 30, 2019 Allowance at December 31, 2018 $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Provision (credit) for loan losses (100) (114) 375 258 (20) — 81 480 Allowance at September 30, 2019 $ 2,116 $ 1,488 $ 1,837 $ 1,382 $ 237 $ 3 $ 155 $ 7,218 Nine Months Ended September 30, 2018 Allowance at December 31, 2017 $ 1,722 $ 1,520 $ 1,661 $ 917 $ 237 $ 2 $ 94 $ 6,153 Provision (credit) for loan losses 385 99 (197) 35 14 1 53 390 Allowance at September 30, 2018 $ 2,107 $ 1,619 $ 1,464 $ 952 $ 251 $ 3 $ 147 $ 6,543
Schedule of information pertaining to the allowance for loan losses	Further information pertaining to the allowance for loan losses is as follows: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) September 30, 2019 Allowance related to impaired loans $ — $ — $ — $ — $ — $ — $ — $ — Allowance related to non-impaired loans 2,116 1,488 1,837 1,382 237 3 155 7,218 Total allowance $ 2,116 $ 1,488 $ 1,837 $ 1,382 $ 237 $ 3 $ 155 $ 7,218 Impaired loan balances $ 728 $ 2,635 $ — $ 796 $ 500 $ — $ — $ 4,659 Non-impaired loan balances 390,342 163,558 150,732 87,132 36,455 165 — 828,384 Total loans $ 391,070 $ 166,193 $ 150,732 $ 87,928 $ 36,955 $ 165 $ — $ 833,043 December 31, 2018 Allowance related to impaired loans $ — $ — $ — $ — $ — $ — $ — $ — Allowance related to non-impaired loans 2,216 1,602 1,462 1,124 257 3 74 6,738 Total allowance $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Impaired loan balances $ 746 $ 2,846 $ — $ — $ — $ — $ — $ 3,592 Non-impaired loan balances 381,764 145,160 106,723 66,890 39,486 163 — 740,186 Total loans $ 382,510 $ 148,006 $ 106,723 $ 66,890 $ 39,486 $ 163 $ — $ 743,778
Summary of past due and non-accrual loans	The following is a summary of past due and non-accrual loans at September 30, 2019 and December 31, 2018: Past Due 90 30‑59 Past Due 90 Days or More Days 60‑89 Days Days or Total and Still Non-accrual Past Due Past Due More Past Due Accruing Loans (In thousands) September 30, 2019 Residential real estate $ 568 $ — $ — $ 568 $ — $ 568 Commercial real estate — — 548 548 — 548 Consumer loans — 500 — 500 — 500 Total $ 568 $ 500 $ 548 $ 1,616 $ — $ 1,616 December 31, 2018 Residential real estate $ 1,551 $ — $ — $ 1,551 $ — $ 581 Commercial real estate — — 556 556 — 556 Total $ 1,551 $ — $ 556 $ 2,107 $ — $ 1,137
Summary of impaired loans	The following is a summary of impaired loans: September 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 728 $ 745 $ 746 $ 764 Commercial real estate 2,635 2,760 2,846 2,974 Commercial loans 796 796 — — Consumer loans 500 500 — — Total impaired loans $ 4,659 $ 4,801 $ 3,592 $ 3,738
Schedule of information pertaining to impaired loans	Further information pertaining to impaired loans follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (In thousands) Residential real estate $ 731 $ 8 $ 6 $ 738 $ 23 $ 18 Commercial real estate 2,669 24 — 2,739 84 11 Commercial loans 790 14 519 31 Consumer loans 125 — 42 — Total $ 4,315 $ 46 $ 6 $ 4,038 $ 138 $ 29 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (In thousands) Residential real estate $ 821 $ 13 $ 2 $ 421 $ 25 $ 5 Commercial real estate 2,949 32 6 1,627 61 34 Total $ 3,770 $ 45 $ 8 $ 2,048 $ 86 $ 39
Schedule of Company's loans by risk rating	The following table presents the Company’s loans by risk rating: September 30, 2019 December 31, 2018 Commercial Commercial Real Estate Construction Commercial Total Real Estate Construction Commercial Total (In thousands) Loans rated 1‑4 $ 162,523 $ 150,732 $ 86,211 $ 399,466 $ 144,243 $ 106,723 $ 65,245 $ 316,211 Loans rated 5 885 — 1,049 1,934 917 — 1,645 2,562 Loans rated 6 2,237 — 668 2,905 2,290 — — 2,290 Loans rated 7 548 — — 548 556 — — 556 Total $ 166,193 $ 150,732 $ 87,928 $ 404,853 $ 148,006 $ 106,723 $ 66,890 $ 321,619

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2019
DERIVATIVE INSTRUMENTS
Schedule of summary of the interest rate swaps	A summary of the interest rate swaps is as follows: With commercial With third-party loan borrowers financial institutions September 30, December 31, September 30, December 31, 2019 2018 2019 2018 (dollars in thousands) Notional amount $ 66,098 $ 28,320 $ 66,098 $ 28,320 Receive (pay) fixed rate weighted average 4.68 % 5.09 % (4.68) % (5.09) % Receive (pay) variable rate weighted average (4.23) % (5.06) % 4.23 % 5.06 % Weighted average remaining years years 12.8 years years 12.8 years Unrealized fair value gain (loss) $ 4,832 $ 264 $ (4,832) $ (264)

FAIR VALUES OF FINANCIAL INST_2

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2019
FAIR VALUES OF FINANCIAL INSTRUMENTS
Schedule of fair value, assets and liabilities measured on recurring basis	Assets and liabilities measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018 are summarized below. Total Level 1 Level 2 Level 3 Fair Value (In thousands) September 30, 2019 Assets Securities available for sale $ — $ 33,793 $ — $ 33,793 Interest rate swap agreements — 4,832 — 4,832 Derivative loan commitments — — 5 5 Forward loan sale commitments — — 3 3 $ — $ 38,625 $ 8 $ 38,633 Liabilities Interest rate swap agreements $ — $ 4,832 $ — $ 4,832 December 31, 2018 Assets Securities available for sale $ — $ 66,770 $ — $ 66,770 Interest rate swap agreements — 264 — 264 $ — $ 67,034 $ — $ 67,034 Liabilities Interest rate swap agreements $ — $ 264 $ — $ 264
Schedule of fair value measurements, nonrecurring	September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Loans held for sale $ — $ — $ 6,351 $ — $ — $ —
Schedule of fair value, by balance sheet grouping	The estimated fair values and related carrying amounts of the Company’s financial instruments are outlined in the table below. Certain financial instruments and all nonfinancial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. Fair Value Carrying Amount Level 1 Level 2 Level 3 Total (In thousands) September 30, 2019 Financial assets: Cash and cash equivalents $ 81,353 $ 81,353 $ — $ — $ 81,353 Certificates of deposit 100 100 — — 100 Securities available for sale 33,793 — 33,793 — 33,793 FHLB stock 6,162 — — 6,162 6,162 Loans held for sale 6,351 — — 6,351 6,351 Loans, net 825,585 — — 833,926 833,926 Accrued interest receivable 2,769 — — 2,769 2,769 Interest rate swap agreements 4,832 — 4,832 — 4,832 Derivative loan commitments 5 — — 5 5 Forward loan sale commitments 3 — — 3 3 Financial liabilities: Deposits $ 758,745 $ — $ — $ 758,924 $ 758,924 Short-term borrowings 51,000 — 51,000 — 51,000 Long-term debt 77,533 — 77,702 — 77,702 Subordinated debt 9,854 — — 9,765 9,765 Accrued interest payable 716 — — 716 716 Interest rate swap agreements 4,832 — 4,832 — 4,832 December 31, 2018 Financial assets: Cash and cash equivalents $ 42,650 $ 42,650 $ — $ — $ 42,650 Certificates of deposit 100 100 — — 100 Securities available for sale 66,770 — 66,770 — 66,770 FHLB stock 4,747 — — 4,747 4,747 Loans, net 737,032 — — 732,427 732,427 Accrued interest receivable 2,288 — — 2,288 2,288 Interest rate swap agreements 264 — 264 — 264 Financial liabilities: Deposits $ 717,931 $ — $ — $ 716,685 $ 716,685 Short-term borrowings 15,000 — 15,000 — 15,000 Long-term debt 58,528 — 58,192 — 58,192 Subordinated debt 9,832 — — 9,691 9,691 Accrued interest payable 487 — — 487 487 Interest rate swap agreements 264 — 264 — 264

EMPLOYEE STOCK OWNERSHIP PLAN (

EMPLOYEE STOCK OWNERSHIP PLAN (Tables)	9 Months Ended
	Sep. 30, 2019
EMPLOYEE STOCK OWNERSHIP PLAN
Schedule of shares held by ESOP	Shares held by the ESOP at September 30, 2019 include the following: Allocated 73,471 Committed to be allocated 9,629 Unallocated 93,077 176,177

EQUITY INCENTIVE PLANS (Tables)

EQUITY INCENTIVE PLANS (Tables)	9 Months Ended
	Sep. 30, 2019
EQUITY INCENTIVE PLANS
Summary of stock option activity	A summary of option activity under the 2012 Equity Incentive Plan for the nine months ended September 30, 2019 is presented below: Outstanding Non-vested Weighted Weighted Average Average Weighted Remaining Aggregate Grant Average Contractual Intrinsic Date Fair Shares Exercise Price Term Value Shares Value (In thousands) (In years) (In thousands) (In thousands) Balance at January 1, 2019 193 $ 16.11 10 $ 4.13 Forfeited (3) 19.07 (3) 4.01 Exercised (35) 16.01 — — Balance at September 30, 2019 155 $ 16.09 $ 2,339 7 $ 4.18 Exercisable at September 30, 2019 148 $ 15.33 $ 2,193 — —
Schedule of non-vested stock awards	The following table presents the activity in non-vested stock awards under the equity incentive plans for the nine months ended September 30, 2019: Number of Grant-date Shares Fair Value (In thousands) Balance at January 1, 2019 27 $ 23.97 Restricted shares granted 15 28.88 Restricted shares forfeited (6) 24.39 Balance at September 30, 2019 36 $ 25.83

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2019
EARNINGS PER COMMON SHARE
Schedule of earnings per share, basic and diluted	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (In thousands, except earnings per share amounts) Net income applicable to common stock $ 2,036 $ 1,557 $ 4,843 $ 4,414 Average number of common shares issued 2,567 2,516 2,552 2,509 Less: Average unallocated ESOP shares (95) (108) (98) (111) Average number of common shares outstanding used to calculate basic earnings per common share 2,472 2,408 2,454 2,398 Effect of dilutive stock options 82 103 92 101 Average number of common shares outstanding used to calculate diluted earnings per share 2,554 2,511 2,546 2,499 Earnings per common share: Basic $ 0.82 $ 0.65 $ 1.97 $ 1.84 Diluted $ 0.80 $ 0.62 $ 1.91 $ 1.77

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
LEASES
Summary of other information related to our operating leases	The table below summarizes other information related to our operating leases as of September 30, 2019: Cash flows from operating leases, in thousands, year to date 2019 $ 1,194 Weighted average remaining lease term, in years Weighted average discount rate 3.13 %
Summary of maturity of the operating lease liabilities	The table below summarizes the maturity of the operating lease liabilities as of September 30, 2019: (In thousands) 2019 $ 402 2020 1,632 2021 1,483 2022 1,182 2023 1,101 Thereafter 1,912 Total lease payments 7,712 Less imputed interest (805) Present value of lease liabilities $ 6,907

LOAN POLICIES (Details)

LOAN POLICIES (Details)	9 Months Ended
	Sep. 30, 2019
Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Time Period To Capture Relevant Loan Loss Data	10 years
Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan To Value Ratio	80.00%

COMPREHENSIVE INCOME (Details)

COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
COMPREHENSIVE INCOME
Unrealized holding gains (losses) on securities available for sale	$ 777	$ (732)
Tax effect	(185)	199
Net-of tax amount	$ 592	$ (533)

RECENT ACCOUNTING AND REGULAT_2

RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Operating Lease, Right-of-Use Asset	$ 6,852	$ 0
Operating Lease, Liability	6,907	$ 0
Accounting Standards Update 2018-02 [Member]
Operating Lease, Right-of-Use Asset	7,800
Operating Lease, Liability	$ 7,800

SECURITIES AVAILABLE FOR SALE_2

SECURITIES AVAILABLE FOR SALE (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 33,016	$ 67,502
Gross Unrealized Gains	844	276
Gross Unrealized Losses	(67)	(1,008)
Fair Value	33,793	66,770
SBA and other asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,211	11,720
Gross Unrealized Gains	176	64
Gross Unrealized Losses	(2)	(157)
Fair Value	4,385	11,627
State and municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,459	12,908
Gross Unrealized Gains	387	111
Gross Unrealized Losses	0	(111)
Fair Value	7,846	12,908
Government-sponsored enterprise obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,000	8,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(6)	(187)
Fair Value	6,994	7,813
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	9,096	18,151
Gross Unrealized Gains	139	28
Gross Unrealized Losses	(26)	(322)
Fair Value	9,209	17,857
US Treasury Bill Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,495
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		1,495
Residential mortgage-backed securities [Member] | Government National Mortgage Association [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,869	3,846
Gross Unrealized Gains	79	44
Gross Unrealized Losses	(24)	(43)
Fair Value	2,924	3,847
Residential mortgage-backed securities [Member] | Government-sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,381	11,382
Gross Unrealized Gains	63	29
Gross Unrealized Losses	(9)	(188)
Fair Value	$ 2,435	$ 11,223

SECURITIES AVAILABLE FOR SALE -

SECURITIES AVAILABLE FOR SALE - Schedule of debt securities by contractual maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available-for-sale Securities, Debt Maturities, Amortized Cost
Within 1 year	$ 2,349
After 1 year to 5 years	9,809
After 5 years to 10 years	7,799
After 10 years	3,598
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total	23,555
Mortgage- and asset-backed securities	9,461
Available-for-sale Debt Securities, Amortized Cost Basis, Total	33,016	$ 67,502
Available-for-sale Securities, Debt Maturities, Fair Value
Within 1 year	2,349
After 1 year to 5 years	9,853
After 5 years to 10 years	8,108
After 10 years	3,739
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value Total	24,049
Mortgage- and asset-backed securities	9,744
Available-for-sale Securities, Debt Securities, Fair Value Total	$ 33,793	$ 66,770

SECURITIES AVAILABLE FOR SALE_3

SECURITIES AVAILABLE FOR SALE - Information pertaining to investment category (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	$ (8)	$ (32)
Less Than Twelve Months Fair Value	3,299	6,194
Over Twelve Months Gross Unrealized Losses	(59)	(976)
Over Twelve Months Fair Value	3,106	40,284
SBA and other asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	(2)	0
Less Than Twelve Months Fair Value	305	0
Over Twelve Months Gross Unrealized Losses	0	(157)
Over Twelve Months Fair Value	0	5,455
State and municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	0	(2)
Less Than Twelve Months Fair Value	0	386
Over Twelve Months Gross Unrealized Losses	0	(109)
Over Twelve Months Fair Value	0	6,257
Government-sponsored enterprise obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	(6)	0
Less Than Twelve Months Fair Value	2,994	0
Over Twelve Months Gross Unrealized Losses	0	(187)
Over Twelve Months Fair Value	0	7,813
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	0	(29)
Less Than Twelve Months Fair Value	0	5,705
Over Twelve Months Gross Unrealized Losses	(26)	(293)
Over Twelve Months Fair Value	1,835	11,124
Residential mortgage-backed securities [Member] | Government National Mortgage Association [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	0	0
Less Than Twelve Months Fair Value	0	0
Over Twelve Months Gross Unrealized Losses	(24)	(43)
Over Twelve Months Fair Value	904	1,755
Residential mortgage-backed securities [Member] | Government-sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	0	(1)
Less Than Twelve Months Fair Value	0	103
Over Twelve Months Gross Unrealized Losses	(9)	(187)
Over Twelve Months Fair Value	$ 367	$ 7,880

SECURITIES AVAILABLE FOR SALE_4

SECURITIES AVAILABLE FOR SALE - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
SECURITIES AVAILABLE FOR SALE
Unrealized Losses Debt Securities Aggregate Depreciation Percentage	1.03%		1.03%
Proceeds from sales of available-for-sale securities	$ 28,400	$ 0	$ 28,406	$ 0
Gross Realized Gains	145		145
Gross Realized Losses	$ 137		$ 137

LOANS AND ALLOWANCE FOR LOAN _3

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Total loans	$ 833,043	$ 743,778
Net deferred origination costs	(240)	(8)
Total loans, net of deferred fees	832,803	743,770
Less: Allowance for loan losses	(7,218)	(6,738)
Loans, net	825,585	737,032
Commercial loan [Member]
Total loans	87,928	66,890
Consumer loan [Member]
Total loans	37,120	39,649
Commercial real estate [Member]
Total loans	166,193	148,006
Construction [Member]
Total loans	150,732	106,723
Secured [Member] | Commercial loan [Member]
Total loans	82,784	61,563
Unsecured [Member] | Commercial loan [Member]
Total loans	5,144	5,327
Home equity lines of credit [Member]
Total loans	36,955	39,486
Home equity lines of credit [Member] | Consumer loan [Member]
Total loans	36,955	39,486
Other Consumer [Member]
Total loans	165	163
Other Consumer [Member] | Consumer loan [Member]
Total loans	165	163
Real estate loans [Member]
Total loans	707,995	637,239
Real estate loans [Member] | Residential - fixed [Member]
Total loans	71,834	64,218
Real estate loans [Member] | Residential - variable [Member]
Total loans	319,236	318,292
Real estate loans [Member] | Commercial real estate [Member]
Total loans	166,193	148,006
Real estate loans [Member] | Construction [Member]
Total loans	$ 150,732	$ 106,723

LOANS AND ALLOWANCE FOR LOAN _4

LOANS AND ALLOWANCE FOR LOAN LOSSES - Changes in the allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Allowance Beginning Balance	$ 7,148	$ 6,413	$ 6,738	$ 6,153
Provision (credit) for loan losses	70	130	480	390
Allowance Ending Balance	7,218	6,543	7,218	6,543
Commercial loan [Member]
Allowance Beginning Balance	1,352	962	1,124	917
Provision (credit) for loan losses	30	(10)	258	35
Allowance Ending Balance	1,382	952	1,382	952
Residential real estate [Member]
Allowance Beginning Balance	2,151	1,999	2,216	1,722
Provision (credit) for loan losses	(35)	108	(100)	385
Allowance Ending Balance	2,116	2,107	2,116	2,107
Commercial real estate [Member]
Allowance Beginning Balance	1,522	1,615	1,602	1,520
Provision (credit) for loan losses	(34)	4	(114)	99
Allowance Ending Balance	1,488	1,619	1,488	1,619
Construction [Member]
Allowance Beginning Balance	1,626	1,459	1,462	1,661
Provision (credit) for loan losses	211	5	375	(197)
Allowance Ending Balance	1,837	1,464	1,837	1,464
Home equity lines of credit [Member]
Allowance Beginning Balance	262	257	257	237
Provision (credit) for loan losses	(25)	(6)	(20)	14
Allowance Ending Balance	237	251	237	251
Other Consumer [Member]
Allowance Beginning Balance	3	4	3	2
Provision (credit) for loan losses		(1)		1
Allowance Ending Balance	3	3	3	3
Unallocated [Member]
Allowance Beginning Balance	232	117	74	94
Provision (credit) for loan losses	(77)	30	81	53
Allowance Ending Balance	$ 155	$ 147	$ 155	$ 147

LOANS AND ALLOWANCE FOR LOAN _5

LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Allowance related to non-impaired loans	$ 7,218		$ 6,738
Total allowance	7,218	$ 7,148	6,738	$ 6,543	$ 6,413	$ 6,153
Impaired loan balances	4,659		3,592
Non-impaired loan balances	828,384		740,186
Total loans	833,043		743,778
Commercial loan [Member]
Allowance related to non-impaired loans	1,382		1,124
Total allowance	1,382	1,352	1,124	952	962	917
Impaired loan balances	796
Non-impaired loan balances	87,132		66,890
Total loans	87,928		66,890
Residential real estate [Member]
Allowance related to non-impaired loans	2,116		2,216
Total allowance	2,116	2,151	2,216	2,107	1,999	1,722
Impaired loan balances	728		746
Non-impaired loan balances	390,342		381,764
Total loans	391,070		382,510
Commercial real estate [Member]
Allowance related to non-impaired loans	1,488		1,602
Total allowance	1,488	1,522	1,602	1,619	1,615	1,520
Impaired loan balances	2,635		2,846
Non-impaired loan balances	163,558		145,160
Total loans	166,193		148,006
Construction [Member]
Allowance related to non-impaired loans	1,837		1,462
Total allowance	1,837	1,626	1,462	1,464	1,459	1,661
Non-impaired loan balances	150,732		106,723
Total loans	150,732		106,723
Home equity lines of credit [Member]
Allowance related to non-impaired loans	237		257
Total allowance	237	262	257	251	257	237
Impaired loan balances	500
Non-impaired loan balances	36,455		39,486
Total loans	36,955		39,486
Other Consumer [Member]
Allowance related to non-impaired loans	3		3
Total allowance	3	3	3	3	4	2
Non-impaired loan balances	165		163
Total loans	165		163
Unallocated [Member]
Allowance related to non-impaired loans	155		74
Total allowance	$ 155	$ 232	$ 74	$ 147	$ 117	$ 94

LOANS AND ALLOWANCE FOR LOAN _6

LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of past due and non-accrual loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Total Past Due	$ 1,616	$ 2,107
Non-accrual Loans	1,616	1,137
Consumer loan [Member]
Total Past Due	500
Non-accrual Loans	500
Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	568	1,551
Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	500
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer loan [Member]
Total Past Due	500
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	548	556
Residential real estate [Member]
Total Past Due	568	1,551
Non-accrual Loans	568	581
Residential real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	568	1,551
Commercial real estate [Member]
Total Past Due	548	556
Non-accrual Loans	548	556
Commercial real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	$ 548	$ 556

LOANS AND ALLOWANCE FOR LOAN _7

LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired financing receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Total impaired loans Recorded Investment	$ 4,659	$ 3,592
Total impaired loans Unpaid Principal Balance	4,801	3,738
Commercial loan [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	796
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	796
Consumer loan [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	500
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	500
Residential real estate [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	728	746
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	745	764
Commercial real estate [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	2,635	2,846
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	$ 2,760	$ 2,974

LOANS AND ALLOWANCE FOR LOAN _8

LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired financing receivables by class of loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Average Recorded Investment	$ 4,315	$ 3,770	$ 4,038	$ 2,048
Interest Income Recognized	46	45	138	86
Interest Income Recognized on Cash Basis	6	8	29	39
Residential real estate [Member]
Average Recorded Investment	731	821	738	421
Interest Income Recognized	8	13	23	25
Interest Income Recognized on Cash Basis	6	2	18	5
Commercial real estate [Member]
Average Recorded Investment	2,669	2,949	2,739	1,627
Interest Income Recognized	24	32	84	61
Interest Income Recognized on Cash Basis		$ 6	11	$ 34
Commercial loan [Member]
Average Recorded Investment	790		519
Interest Income Recognized	14		31
Consumer loan [Member]
Average Recorded Investment	$ 125		$ 42

LOANS AND ALLOWANCE FOR LOAN _9

LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit quality information (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans	$ 404,853	$ 321,619
Loans rated 1-4 [Member]
Loans	399,466	316,211
Loans rated 5 [Member]
Loans	1,934	2,562
Loans rated 6 [Member]
Loans	2,905	2,290
Loans rated 7 [Member]
Loans	548	556
Commercial real estate [Member]
Loans	166,193	148,006
Commercial real estate [Member] | Loans rated 1-4 [Member]
Loans	162,523	144,243
Commercial real estate [Member] | Loans rated 5 [Member]
Loans	885	917
Commercial real estate [Member] | Loans rated 6 [Member]
Loans	2,237	2,290
Commercial real estate [Member] | Loans rated 7 [Member]
Loans	548	556
Construction [Member]
Loans	150,732	106,723
Construction [Member] | Loans rated 1-4 [Member]
Loans	150,732	106,723
Commercial loan [Member]
Loans	87,928	66,890
Commercial loan [Member] | Loans rated 1-4 [Member]
Loans	86,211	65,245
Commercial loan [Member] | Loans rated 5 [Member]
Loans	1,049	$ 1,645
Commercial loan [Member] | Loans rated 6 [Member]
Loans	$ 668

LOANS AND ALLOWANCE FOR LOAN_10

LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Loans and Leases Receivable, Gross	$ 833,043	$ 743,778
Financing Receivable, Modifications, Recorded Investment	2,600
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	500
Commercial loan [Member]
Loans and Leases Receivable, Gross	87,928	$ 66,890
Loan rated 9 [Member] | Maximum [Member] | Commercial loan [Member]
Loans and Leases Receivable, Gross	$ 25
Credit Rating Eleven [Member] | Maximum [Member]
Period After Credit Rating Assignment	60 days

DERIVATIVE INSTRUMENTS - Summar

DERIVATIVE INSTRUMENTS - Summary of the interest rate swaps (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Commercial Borrower [Member]
Derivative, Notional Amount	$ 66,098	$ 28,320
Receive(pay) fixed rate (weighted average)	4.68%	5.09%
Receive (pay) variable rate (weighted average)	(4.23%)	(5.06%)
Weighted average remaining years	10 years 8 months 12 days	12 years 9 months 18 days
Unrealized fair value gain (loss)	$ 4,832	$ 264
Third Party Financial Institutions [Member]
Derivative, Notional Amount	$ 66,098	$ 28,320
Receive(pay) fixed rate (weighted average)	(4.68%)	(5.09%)
Receive (pay) variable rate (weighted average)	4.23%	5.06%
Weighted average remaining years	10 years 8 months 12 days	12 years 9 months 18 days
Unrealized fair value gain (loss)	$ (4,832)	$ (264)

DERIVATIVE INSTRUMENTS - Additi

DERIVATIVE INSTRUMENTS - Additional information (Details) $ in Thousands	Sep. 30, 2019USD ($)
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 3
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Liability, Fair Value of Collateral	3,000
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	3
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivative [Line Items]
Derivative Liability, Notional Amount	1,800
Derivative Asset, Notional Amount	5
Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 8,900

FAIR VALUES OF FINANCIAL INST_3

FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 38,633	$ 67,034
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	4,832	264
Total liabilities	4,832
Forward loan sale commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	3
Securities available for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	33,793	66,770
Total liabilities		264
Derivative loan commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	5
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	38,625	67,034
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	4,832	264
Total liabilities	4,832
Fair Value, Inputs, Level 2 [Member] | Securities available for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	33,793	66,770
Total liabilities		$ 264
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	8
Fair Value, Inputs, Level 3 [Member] | Forward loan sale commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	3
Fair Value, Inputs, Level 3 [Member] | Derivative loan commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 5

FAIR VALUES OF FINANCIAL INST_4

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair value on a non-recurring basis (Details) $ in Thousands	Sep. 30, 2019USD ($)
Loans held for sale	$ 6,351
Fair Value, Inputs, Level 3 [Member]
Loans held for sale	$ 6,351

FAIR VALUES OF FINANCIAL INST_5

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair values of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financial assets:
Cash and cash equivalents	$ 81,353	$ 42,650
Certificates of deposit	100	100
Securities available for sale	33,793	66,770
FHLB stock	6,162	4,747
Loans held for sale	6,351
Loans, net	833,926	732,427
Accrued interest receivable	2,769	2,288
Interest rate swap agreements	4,832	264
Forward loan sale	3
Derivative loan commitments	5
Financial liabilities:
Deposits	758,924	716,685
Short-term borrowings	51,000	15,000
Long-term debt	77,702	58,192
Subordinated debt	9,765	9,691
Accrued interest payable	716	487
Interest rate swap agreements	4,832	264
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and cash equivalents	81,353	42,650
Certificates of deposit	100	100
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Securities available for sale	33,793	66,770
Interest rate swap agreements	4,832	264
Financial liabilities:
Short-term borrowings	51,000	15,000
Long-term debt	77,702	58,192
Interest rate swap agreements	4,832	264
Fair Value, Inputs, Level 3 [Member]
Financial assets:
FHLB stock	6,162	4,747
Loans held for sale	6,351
Loans, net	833,926	732,427
Accrued interest receivable	2,769	2,288
Forward loan sale	3
Derivative loan commitments	5
Financial liabilities:
Deposits	758,924	716,685
Subordinated debt	9,765	9,691
Accrued interest payable	716	487
Reported Value Measurement [Member]
Financial assets:
Cash and cash equivalents	81,353	42,650
Certificates of deposit	100	100
Securities available for sale	33,793	66,770
FHLB stock	6,162	4,747
Loans held for sale	6,351
Loans, net	825,585	737,032
Accrued interest receivable	2,769	2,288
Interest rate swap agreements	4,832	264
Forward loan sale	3
Derivative loan commitments	5
Financial liabilities:
Deposits	758,745	717,931
Short-term borrowings	51,000	15,000
Long-term debt	77,533	58,528
Subordinated debt	9,854	9,832
Accrued interest payable	716	487
Interest rate swap agreements	$ 4,832	$ 264

EMPLOYEE STOCK OWNERSHIP PLAN -

EMPLOYEE STOCK OWNERSHIP PLAN - Shares held by ESOP (Details)	Sep. 30, 2019shares
EMPLOYEE STOCK OWNERSHIP PLAN
Allocated	73,471
Committed to be allocated	9,629
Unallocated	93,077
Total	176,177

EMPLOYEE STOCK OWNERSHIP PLAN_2

EMPLOYEE STOCK OWNERSHIP PLAN - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
EMPLOYEE STOCK OWNERSHIP PLAN
Employee Stock Ownership Plan (ESOP), Shares in ESOP	176,177		176,177
Employee Stock Ownership Plan ESOP Percent Of Shares Authorized To Be Purchased			6.90%
Employee Stock Ownership Plan ESOP Debt Structure Direct Loan Term			15 years
Employee Stock Ownership Plan ESOP Debt Structure Direct Loan Interest Rate			3.25%
Employee Stock Ownership Plan ESOP Cost Of Committed To Be Released Shares			$ 2,900
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 101	$ 109	$ 304	$ 307

EQUITY INCENTIVE PLANS - Summar

EQUITY INCENTIVE PLANS - Summary of option activity (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2019
Shares
Outstanding at beginning of period	193
Forfeited	(3)
Exercised	(35)
Outstanding at end of period	155
Options exercisable at end of period	148
Weighted Average Exercise Price
Outstanding at beginning of period	$ 16.11
Forfeited	19.07
Exercised	16.01
Outstanding at end of period	16.09
Options exercisable at end of period	$ 15.33
Weighted Average Remaining Contractual Term
Outstanding at end of period	3 years 5 months 12 days
Options exercisable at end of period	3 years 1 month 28 days
Aggregate intrinsic value
Outstanding	$ 2,339
Options exercisable at end of period	$ 2,193
Shares, Non-vested
Outstanding at beginning of period	10
Forfeited	(3)
Outstanding at end of period	7
Weighted Average Grant Date Fair value, Non-vested
Outstanding at beginning of period	$ 4.13
Forfeited	4.01
Outstanding at end of period	$ 4.18

EQUITY INCENTIVE PLANS - Non-ve

EQUITY INCENTIVE PLANS - Non-vested awards (Details) - Restricted Stock [Member] shares in Thousands	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Number of Shares
Outstanding at beginning of period | shares	27
Restricted shares granted | shares	15
Restricted shares forfeited | shares	(6)
Outstanding at end of period | shares	36
Grant-date Fair Value
Outstanding at beginning of period | $ / shares	$ 23.97
Restricted shares granted | $ / shares	28.88
Restricted shares forfeited | $ / shares	24.39
Outstanding at end of period | $ / shares	$ 25.83

EQUITY INCENTIVE PLANS - Additi

EQUITY INCENTIVE PLANS - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense for non-vested stock options	$ 626		$ 626
Unrecognized compensation expense, recognition period			2 years 3 months 7 days
Stock Issued During Period, Shares, Restricted Stock Award, Gross			14,500
Compensation expense for stock award plan	56	$ 97	$ 245	$ 285
Recognize tax Benefit	16	27	69	80
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense for non-vested stock options	6		$ 6
Unrecognized compensation expense, recognition period			4 months 24 days
Recognize tax Benefit			$ 0	0
Share base compensation expenses applicable to stock option plan	$ 4	$ 9	$ 17	$ 28
2012 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity Incentive Plan, options granted	231,894		231,894
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Vesting period (in years)			5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			20.00%
2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity Incentive Plan, options granted	75,000		75,000
Vesting period (in years)			5 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	20,550		20,550

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
EARNINGS PER COMMON SHARE
Net income applicable to common stock	$ 2,036	$ 1,557	$ 4,843	$ 4,414
Average number of common shares issued	2,567,000	2,516,000	2,552,000	2,509,000
Less: Average unallocated ESOP shares	(95,000)	(108,000)	(98,000)	(111,000)
Average number of common shares outstanding used to calculate basic earnings per common share	2,472,267	2,408,091	2,454,103	2,398,671
Effect of dilutive stock options	82,000	103,000	92,000	101,000
Average number of common shares outstanding used to calculate diluted earnings per share	2,554,454	2,511,241	2,545,786	2,499,093
Earnings per common share:
Basic	$ 0.82	$ 0.65	$ 1.97	$ 1.84
Diluted	$ 0.80	$ 0.62	$ 1.91	$ 1.77

LEASES - Other information rela

LEASES - Other information related to our operating leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
LEASES
Operating cash flows from operating leases, in thousands	$ 1,194
Weighted average remaining lease term -operating leases, in years	5 years 4 months 24 days
Weighted average discount rate-operating leases	3.13%

LEASES - Maturity of the operat

LEASES - Maturity of the operating lease liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
LEASES
2019	$ 402
2020	1,632
2021	1,483
2022	1,182
2023	1,101
Thereafter	1,912
Operating Leases, Future Minimum Payments Due, Total	7,712
Less imputed interest	(805)
Present value of lease liabilities	$ 6,907	$ 0

LEASES - Additional information

LEASES - Additional information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)ft²	Sep. 30, 2019USD ($)ft²
LEASES
Operating Lease, Expense	$ 403	$ 1,200
Land Subject to Ground Leases | ft²	4,431	4,431
Lessee, Operating Lease, Term of Contract	74 months	74 months
Increase in bank's ROU		$ 1,300