Wellesley Bancorp 10-K 27 Mar 20 2019 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Mar. 16, 2020	Jun. 30, 2019
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
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
Entity Shell Company	false
Trading Symbol	WEBK
Entity Common Stock, Shares Outstanding		2,599,845
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 64,061,367

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 7,886	$ 7,678
Short-term investments	34,208	34,972
Total cash and cash equivalents	42,094	42,650
Certificates of deposit	100	100
Securities available for sale, at fair value	29,815	66,770
Federal Home Loan Bank of Boston stock, at cost	4,906	4,747
Loans held for sale	3,354	0
Loans	842,113	743,770
Less allowance for loan losses	(7,653)	(6,738)
Loans, net	834,460	737,032
Bank-owned life insurance	8,005	7,769
Premises and equipment, net	3,508	3,924
Operating lease, right-of-use asset	6,473	0
Accrued interest receivable	2,525	2,288
Net deferred tax asset	2,713	2,804
Other assets	7,265	3,336
Total assets	945,218	871,420
Deposits:
Noninterest-bearing	139,969	116,926
Interest-bearing	612,498	601,005
Total deposits	752,467	717,931
Short-term borrowings	20,000	15,000
Long-term debt	74,196	58,528
Subordinated debentures	9,861	9,832
Lease liability	6,543	0
Accrued expenses and other liabilities	8,700	4,999
Total liabilities	871,767	806,290
Commitments and contingencies (Notes 13 and 14)
Stockholders' equity:
Preferred stock, $0.01 par value; 1,000,000 shares authorized, none issued
Common stock, $0.01 par value; 14,000,000 shares authorized, 2,599,105 and 2,525,611 shares issued and outstanding in 2019 and 2018, respectively	26	25
Additional paid-in capital	28,169	26,462
Retained earnings	45,625	40,203
Accumulated other comprehensive income (loss)	530	(533)
Unearned compensation - ESOP	(899)	(1,027)
Total stockholders' equity	73,451	65,130
Total liabilities and stockholders' equity	$ 945,218	$ 871,420

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheets
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	2,599,105	2,525,611
Common Stock, Shares, Outstanding	2,599,105	2,525,611

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Interest and dividend income:
Interest and fees on loans and loans held for sale	$ 37,670	$ 31,028
Interest on debt securities:
Taxable	1,270	1,441
Tax-exempt	291	327
Interest on short-term investments and certificates of deposit	757	509
Dividends on FHLB stock	302	333
Total interest and dividend income	40,290	33,638
Interest expense:
Deposits	10,069	6,442
Short-term borrowings	865	580
Long-term debt	1,642	1,256
Subordinated debentures	628	631
Total interest expense	13,204	8,909
Net interest income	27,086	24,729
Provision for loan losses	915	585
Net interest income, after provision for loan losses	26,171	24,144
Noninterest income:
Customer service fees	184	176
Mortgage banking activities	211	99
Income on bank-owned life insurance	236	234
Wealth management fees	1,675	1,616
Miscellaneous	803	461
Total noninterest income	3,109	2,586
Noninterest expenses:
Salaries and employee benefits	12,261	10,842
Occupancy and equipment	3,288	3,004
Data processing	1,272	990
FDIC insurance	576	626
Professional fees	1,349	766
Advertising and marketing	240	323
Other general and administrative	2,192	2,012
Total noninterest expenses	21,178	18,563
Income before income taxes	8,102	8,167
Provision for income taxes	2,102	2,176
Net income	6,000	5,991
Other comprehensive income (loss):
Net unrealized gains (losses) on available-for-sale securities	1,436	(776)
Reclassification adjustment for gains recognized in noninterest income	(8)
Deferred income tax (provision) benefit	(365)	197
Total other comprehensive income (loss), net of tax	1,063	(579)
Comprehensive income	$ 7,063	$ 5,412
Earnings per common share:
Basic	$ 2.44	$ 2.49
Diluted	$ 2.36	$ 2.40
Weighted average shares outstanding:
Basic	2,461,527	2,404,371
Diluted	2,553,805	2,502,784

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	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	$ 25,000	$ 25,601,000	$ 34,736,000	$ 39,000	$ (1,156,000)	$ 59,245,000
Balance (in shares) at Dec. 31, 2017	2,506,532
Comprehensive income	$ 0	0	5,991,000	(579,000)	0	5,412,000
Reclassification related to Tax Cuts and Jobs Act (Note 13)	0	0	(7,000)	7,000	0	0
Dividends paid to common stockholders	$ 0	0	(517,000)	0	0	(517,000)
Share-based compensation- equity incentive plan		379,000				379,000
Restricted stock forfeitures (shares)	(400)
Restricted stock awards grant (in shares)	3,000
Stock options exercised	$ 0	292,000	0	0	0	292,000
Stock options exercised (shares)	19,054
Common stock repurchased in connection with restricted stock awards		(87,000)				(87,000)
Common stock repurchased in connection with restricted stock awards (in shares)	(2,575)
ESOP shares committed to be allocated	$ 0	277,000	0	0	129,000	406,000
Balance at Dec. 31, 2018	$ 25,000	26,462,000	40,203,000	(533,000)	(1,027,000)	65,130,000
Balance (in shares) at Dec. 31, 2018	2,525,611
Comprehensive income	$ 0	0	6,000,000	1,063,000	0	7,063,000
Dividends paid to common stockholders	0	0	(578,000)	0	0	(578,000)
Share-based compensation- equity incentive plan	0	345,000	0	0	0	345,000
Restricted stock forfeitures	$ 0	0	0	0	0	0
Restricted stock forfeitures (shares)	(6,050)
Restricted stock awards grant	$ 0	0	0	0	0	0
Restricted stock awards grant (in shares)	14,500
Stock options exercised	$ 1,000	1,092,000	0	0	0	1,093,000
Stock options exercised (shares)	65,685
Common stock repurchased in connection with restricted stock awards		(20,000)				(20,000)
Common stock repurchased in connection with restricted stock awards (in shares)	(641)
ESOP shares committed to be allocated	$ 0	290,000	0	0	128,000	418,000
Balance at Dec. 31, 2019	$ 26,000	$ 28,169,000	$ 45,625,000	$ 530,000	$ (899,000)	$ 73,451,000
Balance (in shares) at Dec. 31, 2019	2,599,105

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Changes in Stockholders' Equity
Dividends paid to common stockholders, per share	$ 0.235
ESOP shares committed to be allocated, Shares	(12,838)	(12,838)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 6,000,000	$ 5,991,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	915,000	585,000
Depreciation and amortization	829,000	767,000
Net amortization of securities premiums and discounts	144,000	143,000
Gains on sales of securities, net	(8,000)
Principal balance of loans sold	25,083,000	8,544,000
Loans originated for sale	(28,437,000)	(8,544,000)
Accretion of net deferred loan fees	(638,000)	(611,000)
Income on bank-owned life insurance	(236,000)	(234,000)
Amortization of subordinated debt issuance costs	29,000	30,000
Deferred income tax provision (benefit)	(274,000)	(255,000)
ESOP expense	418,000	406,000
Share-based compensation	345,000	379,000
Net change in other assets and liabilities	(240,000)	(348,000)
Net cash provided by operating activities	3,930,000	6,853,000
Cash flows from investing activities:
Maturities, prepayments and calls	9,826,000	11,710,000
Purchases		(12,914,000)
Sales	28,422,000	0
Redemption (purchase) of Federal Home Loan Bank stock	(159,000)	1,190,000
Loan originations, net of principal payments	(97,705,000)	(50,704,000)
Additions to premises and equipment	(629,000)	(1,241,000)
Proceeds from sale of premises and equipment	60,000	63,000
Net cash used by investing activities	(60,185,000)	(51,896,000)
Cash flows from financing activities:
Net increase in deposits	34,536,000	101,189,000
Proceeds from issuance of long-term debt	33,000,000	36,000,000
Repayments of long-term debt	(17,332,000)	(54,646,000)
(Decrease) increase in short-term borrowings	5,000,000	(23,000,000)
Stock options exercised	1,093,000	292,000
Common stock repurchased	20,000	87,000
Cash dividends paid	(578,000)	(517,000)
Net cash provided by financing activities	55,699,000	59,231,000
Net change in cash and cash equivalents	(556,000)	14,188,000
Cash and cash equivalents at beginning of year	42,650,000	28,462,000
Cash and cash equivalents at end of year	42,094,000	42,650,000
Supplementary information:
Interest paid	12,998,000	8,709,000
Income taxes paid	$ 2,563,000	$ 2,782,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Pending Merger with Cambridge Bancorp On December 5, 2019, Cambridge Bancorp (“Cambridge”) and the Company issued a joint press release announcing that Cambridge and the Company have entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which the Company will merge with and into Cambridge, with Cambridge as the surviving entity (the “Merger”). Under the terms of the Merger Agreement, which has been approved by the boards of directors and stockholders of both companies, stockholders of the Company will receive 0.580 shares of Cambridge common stock for each share of Wellesley common stock. The transaction is subject to customary closing conditions and is expected to close during the second quarter of 2020. Basis of presentation and consolidation The consolidated financial statements include the accounts of the 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, formed 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. Business and operating segments The Company provides a variety of financial services to individuals, non-profit organizations, small businesses and other entities within eastern Massachusetts. Its primary deposit products are checking, savings, money market deposits, and term certificate accounts and its primary lending products are residential and commercial real estate loans, construction loans, commercial loans, and consumer loans. Management evaluates the Company’s performance and allocates resources based on a single segment concept. Use of estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses. Significant group concentrations of credit risk Most of the Company’s lending activities are with customers located within the New England region of the country. The Company does not have any significant concentrations to any one industry or customer. Cash equivalents Cash equivalents include amounts due from banks and short-term investments with original maturities of three months or less, primarily balances held at the Federal Reserve Bank of Boston. The Company maintains cash balances in excess of federally insured limits. Certificates of deposit Certificates of deposit are carried at cost, which approximates fair value. Fair value hierarchy The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the 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 or 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 and liabilities include those 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. Securities available for sale Securities classified as available for sale are carried at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income/loss. Purchase premiums and discounts are amortized to earnings by methods which do not differ materially from the interest method. Discounts and non-callable security premiums are amortized over contractual lives of the securities. Callable security premiums are amortized over the earlier of the contractual lives or the earliest call date of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Each reporting period, the Company evaluates all debt securities with a fair value below amortized cost to determine whether other-than-temporary impairment (“OTTI”) exists. OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes. Federal Home Loan Bank stock The Bank, as a member of the Federal Home Loan Bank (“FHLB”) of Boston, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLB may declare dividends on the stock. The Bank reviews for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. As of December 31, 2019 and 2018, no impairment has been recognized. Loans held for sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans The loan portfolio consists of real estate, commercial and other loans to the Company’s customers in its 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 real estate and construction economic 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 which 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 3 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 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, may have an adverse 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, may have an effect on the credit quality of 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 uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Premises and equipment Land is carried at cost. Buildings, leasehold improvements and equipment are stated at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Bank-owned life insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in cash surrender value are reflected in noninterest income, and are not subject to income taxes. Transfers of financial assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company; (2) the transferee obtains the right to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. Derivative financial instruments Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheets and measured at fair value. 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. Loan commitments that are derivatives are recognized at fair value, including servicing values, on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded in miscellaneous income. Fair values of the loan commitments are recognized based on changes in the fair value of the underlying mortgage due to interest rate changes, changes in the probability the derivative loan commitment will be exercised, and the passage of time. In estimating fair value, the Company assigns a probability to a loan commitment based on the expectation that it will be exercised and the loan will be funded. 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. Forward loan sale commitments are recognized at fair value on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded in miscellaneous income. Fair values for forward loan sale commitments are based on changes in the fair values of the underlying loans. Interest Rate Swap Agreements The Company has entered into financial instruments in the normal course of business to manage exposure to fluctuations in interest rates for its commercial customers. Instruments related to commercial loan swaps are considered derivatives. These derivatives are recognized on the consolidated balance sheet in other assets and other liabilities and measured at fair value with changes in their fair value recorded in miscellaneous income. Advertising costs Advertising costs are expensed as incurred. Income taxes Deferred tax assets and liabilities relate to temporary differences between the book and tax bases of certain assets and liabilities, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company does not have any uncertain tax positions at December 31, 2019 or 2018 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2019 and 2018. Share-based compensation plans The Company measures and recognizes compensation cost relating to share-based payment transactions based on the grant date fair value of the equity instruments issued. Share-based compensation is recognized over the period the employee is required to provide services for the award. Reductions in compensation expense associated with forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted annually based on actual forfeiture experience. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. Employee stock ownership plan Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based on the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated balance sheet. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to stockholders’ equity. Comprehensive income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, 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: December 31, 2019 2018 (In thousands) Net unrealized gains (losses) on securities available for sale $ 696 $ (732) Tax effect (166) 199 Net-of- tax amount $ 530 $ (533) Earnings per share Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects 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 determined using the treasury stock method. Earnings per common share have been computed based on the following: Years Ended December 31, 2019 2018 (In thousands, except per share data) Net income applicable to common stock $ 6,000 $ 5,991 Average number of common shares issued 2,558 2,513 Less: Average unallocated ESOP shares (96) (109) Average number of common shares outstanding used to calculate basic earnings per common share 2,462 2,404 Effect of dilutive stock options 92 99 Average number of common shares outstanding used to calculate diluted earnings per common share 2,554 2,503 Earnings per common share: Basic $ 2.44 $ 2.49 Diluted $ 2.36 $ 2.40 There were no anti-dilutive options that were excluded from the computation of diluted earnings per share for the years ended December 31, 2019 and 2018. Anti-dilutive shares are common stock equivalents with exercise prices less than the average market value of the Company’s stock for the periods presented. Recent accounting pronouncements Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Account Standards Update (“ASU”) 2016-02, Leases (Topic 842) , which requires a lessee to record a right-to-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 liabilities. In June 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 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 included Wellesley Bank. The Board of Directors voted to delay implementation of the standard.

RESTRICTIONS ON CASH AND AMOUNT

RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS	12 Months Ended
	Dec. 31, 2019
RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS
RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS	2. The Bank is required to maintain average balances on hand or with the Federal Reserve Bank. The reserve balance amounted to $6.2 million and $5.1 million at December 31, 2019 and 2018, respectively.

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS	12 Months Ended
	Dec. 31, 2019
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS	3. Short-term investments are comprised of the following: December 31, 2019 2018 (In thousands) Federal Reserve Bank deposits $ 24,104 $ 29,856 Federal Home Loan Bank deposits 2 263 Money market accounts 10,102 4,853 $ 34,208 $ 34,972

CERTIFICATES OF DEPOSIT

CERTIFICATES OF DEPOSIT	12 Months Ended
	Dec. 31, 2019
CERTIFICATES OF DEPOSIT
CERTIFICATES OF DEPOSIT	4. Certificates of deposit held by the Bank amounted to $100 thousand, mature within one year and have a weighted average rate of 1.73% at December 31, 2019 and 2.48% at December 31, 2018.

SECURITIES AVAILABLE FOR SALE

SECURITIES AVAILABLE FOR SALE	12 Months Ended
	Dec. 31, 2019
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE	5. 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) December 31, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ 2,770 $ 61 $ (16) $ 2,815 Government-sponsored enterprises 2,224 51 (9) 2,266 SBA and other asset-backed securities 4,082 112 (2) 4,192 State and municipal bonds 7,446 375 — 7,821 Government-sponsored enterprise obligations 4,000 — (6) 3,994 Corporate bonds 8,597 139 (9) 8,727 $ 29,119 $ 738 $ (42) $ 29,815 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 bonds 1,495 — — 1,495 $ 67,502 $ 276 $ (1,008) $ 66,770 For the year ended December 31, 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. For the years ended December 31, 2018 there were no sales of securities. The amortized cost and fair value of debt securities by contractual maturity at December 31, 2019 are as follows below. Expected maturities may differ from contractual maturities because the issuers, in certain instances, have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In thousands) Within 1 year $ 1,850 $ 1,850 After 1 year to 5 years 7,810 7,874 After 5 years to 10 years 8,029 8,352 After 10 years 2,354 2,466 20,043 20,542 Mortgage- and asset-backed securities 9,076 9,273 $ 29,119 $ 29,815 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 Twelve Months or Greater Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) December 31, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (16) $ 908 Government-sponsored enterprises — — (9) 342 SBA and other asset-backed securities — — (2) 290 Government-sponsored enterprise obligations (6) 2,994 — — Corporate bonds — — (9) 1,000 $ (6) $ 2,994 $ (36) $ 2,540 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 December 31, 2019, various debt securities have unrealized losses with aggregate depreciation of 0.75% 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 to 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 December 31, 2019.

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	12 Months Ended
	Dec. 31, 2019
LOANS AND ALLOWANCE FOR LOAN LOSSES
LOANS AND ALLOWANCE FOR LOAN LOSSES	6. A summary of the balances of loans is as follows: December 31, 2019 2018 (In thousands) Real estate loans: Residential – fixed $ 77,679 $ 64,218 Residential – variable 310,646 318,292 Commercial 181,928 148,006 Construction 138,007 106,723 708,260 637,239 Commercial loans: Secured 92,347 61,563 Unsecured 4,934 5,327 97,281 66,890 Consumer loans: Home equity lines of credit 36,693 39,486 Other 171 163 36,864 39,649 Total loans 842,405 743,778 Net deferred originations costs (292) (8) Total loans, net of deferred fees 842,113 743,770 Less: Allowance for loan losses (7,653) (6,738) Loans, net $ 834,460 $ 737,032 The Company has transferred a portion of its originated residential and commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying consolidated balance sheets. The Company and participating lenders share ratably in any gains or losses that may result from the borrower’s lack of compliance with contractual terms of the loans. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments (net of servicing fees) to participating lenders and disburses required escrow funds to relevant parties. At December 31, 2019 and 2018, the Company was servicing commercial real estate loans for participants aggregating $287 thousand and $5.3 million, respectively. At December 31, 2019 and 2018, the Company was servicing residential real estate loans for participants aggregating $8.1 million and $9.5 million, respectively. Whole mortgage loans sold and serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others was $2.4 million and $2.7 million at December 31, 2019 and 2018, respectively. The Company has pledged certain residential and commercial real estate loans to secure FHLB advances and available lines of credit. (See Notes 10 and 11.) The following table summarizes the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2019 and 2018: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) Years Ended December 31, 2019 Allowance at December 31, 2018 $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Provision (credit) for loan losses (116) 24 361 740 (22) 1 (73) 915 Allowance at December 31, 2019 $ 2,100 $ 1,626 $ 1,823 $ 1,864 $ 235 $ 4 $ 1 $ 7,653 Years Ended December 31, 2018 Allowance at December 31, 2017 $ 1,722 $ 1,520 $ 1,661 $ 917 $ 237 $ 2 $ 94 $ 6,153 Provision (credit) for loan losses 494 82 (199) 207 20 1 (20) 585 Allowance at December 31, 2018 $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Further information pertaining to the allowance for loan losses and impaired loans at December 31, 2019 and 2018 is as follows: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) December 31, 2019 Allowance related to impaired loans $ — $ — $ — $ 350 $ — $ — $ — $ 350 Allowance related to non-impaired loans 2,100 1,626 1,823 1,514 235 4 1 7,303 Total allowance $ 2,100 $ 1,626 $ 1,823 $ 1,864 $ 235 $ 4 $ 1 $ 7,653 Impaired loan balances $ 721 2,565 $ — $ 1,993 $ 500 $ — $ — $ 5,779 Non-impaired loan balances 387,604 179,363 138,007 95,288 36,193 171 — 836,626 Total loans $ 388,325 $ 181,928 $ 138,007 $ 97,281 $ 36,693 $ 171 $ — $ 842,405 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 December 31, 2019 and 2018: Past Due 90 30‑59 60‑89 Past Due 90 Days or More Non- Days Days Days or Total and Still accrual Past Due Past Due More Past Due Accruing Loans (In thousands) December 31, 2019 Residential real estate $ — $ — $ — $ — $ — $ 562 Commercial real estate — — 548 548 — 548 Commercial loans — — — — 883 Home equity lines of credit — — 500 500 — 500 Total $ — $ — $ 1,048 $ 1,048 $ — $ 2,493 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 at December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 721 $ 738 $ — $ 746 $ 764 $ — Commercial real estate 2,565 2,691 — 2,846 2,974 — Commercial loans 1,110 1,110 — — — — Home equity lines of credit 500 500 — — — — Total 4,896 5,039 — 3,592 3,738 — Impaired loans with a valuation allowance: Commercial loans 883 883 350 — — — Total impaired loans $ 5,779 $ 5,922 $ 350 $ 3,592 $ 3,738 $ — Further information pertaining to impaired loans follows: Years Ended December 31, 2019 Years Ended December 31, 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 $ 734 $ 34 $ 26 $ 819 $ 34 $ 28 Commercial real estate 2,704 107 11 2,920 89 36 Commercial loans 717 50 — — — — Home equity lines of credit 167 -- 5 — — — Total $ 4,322 $ 191 $ 42 $ 3,739 $ 123 $ 64 One commercial loan relationship with a line of credit has $145 thousand availability at December 31, 2019. TDRs, which are included in impaired loans, totaled $3.2 million at December 31, 2019 and $721 thousand at December 31, 2018. There was one TDR, totaling $548 thousand and $556 thousand, on non-accrual status at December 31, 2019 and 2018, respectively. The following is a summary of troubled debt restructurings recorded for the year ended December 31, 2019: Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial real estate 3 $ 2,155 $ 2,155 During the year ended December 31, 2019, the Company recorded a TDR for one commercial loan relationship to provide working capital line of credit during the sale of the collateral property. The loan relationship subsequently paid off in 2020. There were no TDRs recorded during the year ended December 31, 2018. There were no TDRs that defaulted (90 days or more past due) during the years ended December 31, 2019 and 2018, and for which default was within one year of the restructure date. 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 are not rated and 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: December 31, 2019 December 31, 2018 Commercial Commercial Real Estate Construction Commercial Total Real Estate Construction Commercial Total (In thousands) Loans rated 1‑4 $ 178,488 $ 138,007 $ 95,287 $ 411,782 $ 144,243 $ 106,723 $ 65,245 $ 316,211 Loans rated 5 875 — — 875 917 — 1,645 2,562 Loans rated 6 2,017 — 1,994 4,011 2,290 — — 2,290 Loans rated 7 548 — — 548 556 — — 556 Total $ 181,928 $ 138,007 $ 97,281 $ 417,216 $ 148,006 $ 106,723 $ 66,890 $ 321,619

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2019
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT	7. A summary of the cost and accumulated depreciation and amortization of premises and equipment is as follows: Estimated December 31, Useful Lives In 2019 2018 Years (In thousands) Premises: Land $ 50 $ 50 Buildings 821 701 35‑40 Leasehold improvements 3,695 3,924 5‑15 Equipment 3,845 3,704 3‑5 8,411 8,379 Less accumulated depreciation and amortization (4,903) (4,455) Premises and equipment, net $ 3,508 $ 3,924 Total depreciation and amortization expense for the years ended December 31, 2019 and 2018 amounted to $829 thousand and $767 thousand, respectively.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2019
LEASES
LEASES	8. 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 twelve months ended December 31, 2019 was $1.6 million. The table below summarizes other information related to our operating leases as of December 31, 2019: Cash flows from operating leases, in thousands, for the year 2019 $ 1,596 Weighted average remaining lease term, in years 5.2 Weighted average discount rate 3.13 % The ROU asset and liability at December 31, 2019 amounted to $6.5 million. The table below summarizes the maturity of the operating lease liabilities as of December 31, 2019: (In thousands) 2020 $ 1,633 2021 1,483 2022 1,182 2023 1,101 2024 893 Thereafter 1,019 Total lease payments 7,311 Less imputed interest (768) Present value of lease liabilities $ 6,543 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 will increase the Bank’s ROU assets by $1.3 million. The leases contain options to extend for up to ten years. The cost of such options is not included above. Total rent expense amounted to $1.6 million and $1.4 million for the years ended December 31, 2019 and 2018, respectively.

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2019
DEPOSITS
DEPOSITS	9. A summary of deposit balances, by type, is as follows: Years Ended December 31, 2019 2018 (In thousands) Demand $ 139,969 $ 116,926 NOW 38,876 36,944 Money market 278,953 203,578 Regular and other savings 77,979 82,218 Total non-certificate accounts 535,777 439,666 Term certificates of $250 thousand and greater 90,781 106,052 Term certificates less than $250 thousand 125,909 172,213 Total term certificates 216,690 278,265 Total deposits $ 752,467 $ 717,931 Term certificates include brokered deposits amounting to $47.0 million and $82.5 million at December 31, 2019 and 2018, respectively. A summary of term certificates by maturity is as follows: December 31, 2019 December 31, 2018 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands) Within 1 year $ 169,600 2.18 % $ 228,449 2.01 % Over 1 year to 2 years 35,296 1.96 43,237 2.23 Over 2 years to 3 years 6,604 2.03 2,666 1.60 Over 3 years to 4 years 5,190 1.95 3,913 2.09 $ 216,690 2.13 % $ 278,265 2.04 %

SHORT-TERM BORROWINGS AND AVAIL

SHORT-TERM BORROWINGS AND AVAILABLE LINES OF CREDIT	12 Months Ended
	Dec. 31, 2019
SHORT-TERM BORROWINGS AND AVAILABLE LINES OF CREDIT
SHORT-TERM BORROWINGS AND AVAILABLE LINES OF CREDIT	10. At December 31, 2019 and 2018, short-term borrowings consisted entirely of fixed-rate advances from the FHLB with original maturities of less than one year. The weighted average interest rate on advances outstanding at December 31, 2019 and 2018 was 2.50% and 2.44%, respectively. All borrowings from the FHLB are secured by a blanket lien on qualified collateral. (See Notes 6 and 11.) Borrowings available under an available FHLB variable-rate line of credit amounted to $1.3 million as of December 31, 2019 and 2018, respectively. No advances were outstanding under the line of credit at December 31, 2019 or 2018. At December 31, 2019 and 2018, the Company has pledged commercial real estate loans of $21.8 million and $16.8 million, respectively, to access the Federal Reserve Bank discount window. At December 31, 2019 and 2018, the available line amounted to $9.2 million and $6.9 million, respectively. No advances were outstanding at December 31, 2019 or 2018. The Company has $5.0 million of unsecured borrowing capacity with the Co-operative Central Bank, none of which was outstanding at December 31, 2019 and 2018. The Company also has a $5.0 million unsecured line of credit with a correspondent bank. No advances were outstanding at December 31, 2019 or 2018.

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2019
LONG-TERM DEBT
LONG-TERM DEBT	11. Long-term debt, and related maturities, at December 31, 2019 and 2018 consists of fixed-rate FHLB advances, as follows: Amount Weighted Average Rates 2019 2018 2019 2018 (In thousands) 2019 $ — $ 10,000 — % 1.60 % 2020 47,000 20,000 2.29 2.03 2021 8,000 8,000 2.48 2.48 2022* 961 1,320 1.84 1.84 2023** 18,235 19,208 3.54 0.91 $ 74,196 $ 58,528 2.50 % 1.65 % *At December 31, 2019 and 2018, includes an amortizing advance totaling $960 thousand and $1.3 million, respectively, requiring monthly principal and interest of $32 thousand. **At December 31, 2019, includes an amortizing advance amounting to $3.2 million requiring monthly principal and interest of $88 thousand. At December 31, 2019, includes a $15 million advance callable in 2020. All borrowings from the FHLB are secured by a blanket lien on qualified collateral, defined principally as 75% of the carrying value of first mortgage loans on owner-occupied residential property. (See Note 6.)

SUBORDINATED DEBT

SUBORDINATED DEBT	12 Months Ended
	Dec. 31, 2019
SUBORDINATED DEBT
SUBORDINATED DEBT	12. On December 17, 2015, the Company closed its private offering of $10.0 million, 6.00% fixed-to-floating rate Subordinated Notes due December 30, 2025 (the “Notes”). The Notes were offered to institutional accredited investors at par. The Company is using the proceeds for general corporate purposes. Interest on the Notes is payable semi-annually in arrears on June 30 and December 30 of each year. The Company recorded issuance costs of $266 thousand, which are being amortized over the period to maturity on an effective interest method. The carrying value, net of issuance costs, totaled $9.9 million at both December 31, 2019 and 2018. These Notes bear a fixed rate of interest of 6.00% for the first five years at which time, and at any interest payment date thereafter, the Notes may be called at par at the Company’s option. Subsequent to the initial call date, the Notes bear a floating rate of interest that reprices and is payable quarterly at the 3-month LIBOR rate plus 435.5 basis points.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2019
INCOME TAXES
INCOME TAXES	13. Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2019 2018 (In thousands) Current tax provision: Federal $ 1,592 $ 1,669 State 784 762 2,376 2,431 Deferred tax provision (benefit): Federal (186) (170) State (88) (85) (274) (255) Total tax provision $ 2,102 $ 2,176 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: Years Ended December 31, 2019 2018 (In thousands) Statutory tax rate $ 1,701 $ 1,715 Increase (decrease) resulting from: State taxes, net of federal tax benefit 550 535 Income on bank-owned life insurance (50) (49) Tax exempt bond income (77) (86) Share-based compensation (19) (4) Other, net (3) 65 Effective tax $ 2,102 $ 2,176 Effective tax rates 26.0 % 26.6 % The tax effects of each item that gives rise to deferred tax assets (liabilities) are as follows: December 31, 2019 2018 (In thousands) Deferred tax assets: Allowance for loan losses $ 2,151 $ 1,894 Employee benefit plans 1,001 916 Partnerships and other investments 16 5 Net unrealized loss on securities available for sale — 199 Other, net 35 17 3,203 3,031 Deferred tax liabilities: Depreciation and amortization (299) (198) Net unrealized gain on securities available for sale (166) -- Mortgage servicing rights (23) (27) Deferred loan fees (2) (2) (490) (227) Net deferred tax asset $ 2,713 $ 2,804 The federal income tax reserve for loan losses at the Company’s base year amounted to $820 thousand. If any portion of the reserve is used for purposes other than to absorb loan losses for which established, approximately 150% of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve only to absorb loan losses, a deferred income tax liability of $231 thousand has not been provided. On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (the "Act"). The Act includes a number of changes in existing tax law impacting businesses including, among other things, a reduction in the corporate income tax rate from 34% to 21%, effective on January 1, 2018. As a result of this rate reduction, the Company revalued its net deferred tax asset as of December 22, 2017, resulting in a reduction in the value of the net deferred tax asset of $979 thousand, which was recorded as additional income tax provision in the Company's consolidated statements of comprehensive income in 2017. The $979 thousand, in 2017, in income tax provision includes a tax provision of $7 thousand relating to the impact of the rate change on deferred tax items originally recorded through other comprehensive income. This accounting treatment effectively stranded $7 thousand of deferred tax items in accumulated other comprehensive income ("AOCI"). In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from AOCI to retained earnings to eliminate the stranded tax effects resulting from the Act. As permitted, the Company early adopted the ASU and recorded a $7 thousand decrease in retained earnings and a corresponding increase in AOCI as of January 1, 2018. The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2016 through 2020. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2016 are open.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	12 Months Ended
	Dec. 31, 2019
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	14. 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 $350 thousand at December 31, 2019. The fair value of these commitments was a liability of $1 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 $3.7 million at December 31, 2019. The fair value of these commitments was a liability of $4 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 contacts, 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 primary risk associated with these transactions is the ability of the counter parties to meet the terms of the contract. The fair value of the derivative instruments is reflected on the Company’s consolidated balance sheet as other assets and other liabilities as appropriate. At December 31, 2019, cash in the amount of $5.8 million is pledged as collateral by the Company to its third-party financial institution counter-party. Changes in fair values are recorded in miscellaneous income in the consolidated statements of income. There is no credit valuation adjustment at December 31, 2019 or 2018. The table below presents the interest rate swaps outstanding at December 31, 2019 and 2018: With commercial With third-party loan borrowers financial institutions December 31, December 31, 2019 2018 2019 2018 (dollars in thousands) Notional amount $ 71,941 $ 28,320 $ 71,941 $ 28,320 Receive (pay) fixed rate (weighted average) 4.43 % 5.09 % (4.43) % (5.09) % Receive (pay) variable rate (weighted average) (3.79) % (5.06) % 3.79 % 5.06 % Weighted average remaining years 11.0 years 12.8 years 11.0 years 12.8 years Unrealized fair value gain (loss) $ 3,472 $ 264 $ (3,472) $ (264)

OTHER COMMITMENTS AND CONTINGEN

OTHER COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2019
OTHER COMMITMENTS AND CONTINGENCIES
OTHER COMMITMENTS AND CONTINGENCIES	15. Credit-related financial instruments The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit which involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the accompanying consolidated balance sheets. At December 31, 2019 and 2018, the following financial instruments were outstanding whose contract amounts represent credit risk: December 31, 2019 2018 (In thousands) Commitments to grant loans $ 39,922 $ 9,417 Unadvanced funds on home equity lines of credit 41,837 41,769 Unadvanced funds on commercial lines of credit 36,736 32,511 Unadvanced funds on construction loans 71,468 65,542 Standby letters of credit 1,427 1,427 Overdraft lines of credit 473 486 Commitments to grant loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for home equity and commercial lines of credit may expire without being drawn upon, therefore, the total commitment amounts do not necessarily represent future cash requirements. Home equity and certain commercial lines of credit are generally collateralized by real estate or business assets. Commitments to grant loans and unadvanced funds on construction loans are also secured by real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. All letters of credit have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company collateralizes those commitments for which collateral is deemed necessary. Employment agreements The Company has entered into employment agreements with certain executives for periods up to three years. The agreements generally provide for specified minimum levels of annual compensation and benefits. In addition, the agreements provide for specified lump sum payments and the continuation of benefits upon certain events of termination, as defined, including a change in control of the Company. Contingencies Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the consolidated financial position of the Company.

MINIMUM REGULATORY CAPITAL REQU

MINIMUM REGULATORY CAPITAL REQUIREMENTS	12 Months Ended
	Dec. 31, 2019
MINIMUM REGULATORY CAPITAL REQUIREMENTS
MINIMUM REGULATORY CAPITAL REQUIREMENTS	16. The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Federal banking regulations require a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6%, a minimum ratio of total capital to risk-weighted assets of 8% and a minimum leverage ratio of 4% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets above adequately capitalized levels to avoid being subject to limitations on capital distributions and discretionary bonuses. Management believes that the Company’s capital levels will remain as “well-capitalized”, and above the buffer-enhanced levels. As of December 31, 2019, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum Total risk-based, Common Equity Tier 1 risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the recent notification that management believes have changed the Bank’s well capitalized designation. The Bank’s capital amounts and ratios as of December 31, 2019 and 2018 are presented in the following tables: Minimum to be Minimum to be Well Adequately Capitalized Capitalized Under under Prompt Corrective Prompt Corrective Actual Action Provisions Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 Total capital to risk-weighted assets $ 87,146 11.6 % $ 60,027 8.0 % $ 75,034 10.0 % Common equity Tier 1 capital to risk-weighted assets 79,493 10.6 33,765 4.5 48,772 6.5 Tier 1 capital to risk-weighted assets 79,493 10.6 45,020 6.0 60,027 8.0 Tier 1 capital to average assets 79,493 8.4 38,014 4.0 47,517 5.0 December 31, 2018 Total capital to risk-weighted assets $ 79,222 12.3 % $ 51,474 8.0 % $ 64,342 10.0 % Common equity Tier 1 capital to risk-weighted assets 72,484 11.3 28,954 4.5 41,822 6.5 Tier 1 capital to risk-weighted assets 72,484 11.3 38,605 6.0 51,474 8.0 Tier 1 capital to average assets 72,484 8.4 34,347 4.0 42,934 5.0

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2019
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	17. 401(k) plan The Company has a 401(k) plan which provides for voluntary contributions by participating employees subject to IRS limitations. In 2019 and 2018, the Company matched the employee’s voluntary contribution at a level of 100% of the employee’s contributions up to the first 7% of the employee’s compensation. Total plan expense for the years ended December 31, 2019 and 2018 amounted to $365 thousand and $338 thousand, respectively. Supplemental retirement agreement The Company has entered into a supplemental retirement agreement with a current officer, which provides for payments upon attaining the retirement age specified in the agreement. The present value of these future payments is accrued over the remaining service term and at December 31, 2019 and 2018, amounted to $2.0 million and $1.6 million, respectively. Supplemental retirement benefits generally vest as they are accrued, however a termination of employment subsequent to a change in control of the Company will result in the vesting of all benefits that would have accrued to the officer’s normal retirement date. Total supplemental retirement expense for the years ended December 31, 2019 and 2018 amounted to $465 thousand and $242 thousand, respectively. Endorsement split-dollar life insurance arrangements The Company is the sole owner of life insurance policies pertaining to certain of the Company’s executives. The Company has entered into agreements with these executives whereby the Company has agreed to maintain a life insurance policy in effect during the executives’ retirement, which will pay to the executives’ estates or beneficiaries a portion of the death benefit that the Company will receive as beneficiary of such policies. Total split-dollar insurance expense totaled $2 thousand for the years ended December 31, 2019 and 2018, respectively. Employee bonus program The Company has established an employee bonus program whereby approximately 10% to 20% of the Company’s consolidated income, before income taxes and incentive compensation expense, is allocated for distribution to eligible employees. Total related bonus expense for the years ended December 31, 2019 and 2018 amounted to $1.5 million and $1.4 million, respectively. Equity incentive plan 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. During 2019, the Board of Directors granted stock awards of 14,500 to certain directors and executive officers. The fair value of the stock awards, based on the market price of the stock on the grant dates, was recorded as unearned compensation, and is being amortized over the vesting period. 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 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, 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 year ended December 31, 2019 is presented below: Outstanding Non-vested Weighted Weighted Weighted Average Average Average Remaining Aggregate Grant Exercise Contractual Intrinsic Date Fair Shares Price Term Value Shares Value (In thousands) (In years) (In thousands) (In thousands) Balance at January 1, 2019 193 $ 16.11 10 $ 4.13 Vested — -- (6) 4.33 Exercised (66) 16.63 — — Forfeited (3) 19.07 (3) 4.01 Balance at December 31, 2019 124 $ 16.09 $ 3,671 1 $ 4.13 Exercisable at December 31, 2019 123 $ 15.74 $ 3,630 For the years ended December 31, 2019 and 2018, share-based compensation expense applicable to the stock options was $18 thousand and $36 thousand, respectively. There was no recognized tax benefit related to this expense for the years ended December 31, 2019 and 2018, respectively. Unrecognized compensation expense for non-vested stock options totaled $4 thousand as of December 31, 2019, which will be recognized over the remaining vesting period of 0.75 years. Stock Awards For the years ended December 31, 2019 and 2018, respectively, 14,500 and 3,000 restricted stock awards were granted with weighted average grant date fair values of $28.88 and $34.00. The following table presents the activity in non-vested stock awards under the equity incentive plans for the year ended December 31, 2019: Number of Grant-date Shares Fair Value (In thousands) Non-vested stock awards at beginning of year 28 $ 23.97 Restricted shares granted 14 28.88 Shares vested (8) 22.43 Shares forfeited (6) 24.39 Non-vested stock awards at end of year 28 $ 23.97 For the year ended December 31, 2019 and 2018, compensation expense applicable to the stock awards was $326 thousand and $343 thousand, respectively, and the recognized tax benefit related to this expense was $92 thousand and $97 thousand, respectively. Unrecognized compensation expense for non-vested restricted stock totaled $544 thousand as of December 31, 2019, which will be recognized over the remaining weighted average vesting period of 2.17 years. Employee stock ownership plan The Company maintains an Employee Stock Ownership Plan (“ESOP”) to provide eligible employees the opportunity to own Company stock. The ESOP 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 for the purchase of shares of the Company’s common stock on the closing date of the Company’s mutual-to-stock conversion in 2012. As of December 31, 2019, the ESOP holds 176,275 shares or 6.8% of the common stock outstanding on that date. The loan obtained by the ESOP from the Company to purchase common stock 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 will be distributed 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. At December 31, 2019, the remaining principal balance on the ESOP debt is payable as follows: Year Ending December 31, Amount (In thousands) 2020 $ 131 2021 135 2022 140 2023 144 2024 149 Thereafter 312 $ 1,011 Shares held by the ESOP include the following: December 31, 2019 2018 Allocated 86,407 75,193 Unallocated 89,868 102,706 176,275 177,899 The fair value of unallocated shares was $4.1 million and $2.8 million at December 31, 2019 and 2018, respectively. Total compensation expense recognized in connection with the ESOP for the years ended December 31, 2019 and 2018 was $418 thousand and $406 thousand, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	18. Information pertaining to loans to directors, executive officers and their affiliates (exclusive of loans to any such persons which in the aggregate do not exceed $60 thousand) is as follows: Years Ended December 31, 2019 2018 (In thousands) Balance at beginning of year $ 7,873 $ 3,460 Principal additions (1) 163 5,820 Principal reductions (2) (1,103) (1,407) Balance at end of year $ 6,933 $ 7,873 (1) In 2018, includes $5.7 million of loans associated with a newly appointed director during the year, which represent the outstanding loan balances at the effective date of appointment. (2) Includes amounts associated with individuals no longer considered to be an insider as of December 31, 2019 and 2018. Such loans are made in the ordinary course of business at the Company’s normal credit terms, except for certain loans, which were granted with an interest rate discount of 0.50% under the Company’s Mortgage Discount Program. This program applies only to fixed- or adjustable-rate mortgage loans that are held in the Company’s portfolio. The program is offered to all full- and part-time employees of the Company and to all members of its Board of Directors. Deposits from related parties held by the Bank amounted to $4.6 million and $7.8 million at December 31, 2019 and 2018, respectively.

RESTRICTIONS ON BANK DIVIDENDS,

RESTRICTIONS ON BANK DIVIDENDS, LOANS AND ADVANCES	12 Months Ended
	Dec. 31, 2019
RESTRICTIONS ON BANK DIVIDENDS, LOANS AND ADVANCES
RESTRICTIONS ON BANK DIVIDENDS, LOANS AND ADVANCES	19. Federal and state banking regulations place certain restrictions on dividends paid and loans or advances made by the Bank to the Company. The total amount of dividends, which may be paid in any calendar year, cannot exceed the Bank’s net income for the current year, plus the Bank’s net income retained for the previous two years, without regulatory approval. Loans or advances are limited to 10% of the Bank’s capital stock and surplus on a secured basis.

FAIR VALUES OF ASSETS AND LIABI

FAIR VALUES OF ASSETS AND LIABILITIES	12 Months Ended
	Dec. 31, 2019
FAIR VALUES OF ASSETS AND LIABILITIES
FAIR VALUES OF ASSETS AND LIABILITIES	20. 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. The following methods and assumptions were used by the Company in estimating fair value disclosures: Cash, cash equivalents and certificates of deposit : The carrying amounts approximate fair values based on the short-term nature of the assets. Securities available for sale : Fair value measurements 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. Federal Home Loan Bank stock : The carrying value of FHLB stock is deemed to approximate fair value, based on the redemption provisions of the FHLB of Boston. Loans held for sale : Fair values are based on commitments in effect from investors or prevailing market prices. Loans, net : For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans are estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for impaired loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Deposits : The fair values disclosed for non-certificate deposit accounts are, by definition, equal to the amount payable on demand at the reporting date ( i.e. , their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Short-term borrowings : The carrying amount of short-term borrowings approximates fair value, based on the short-term nature of the liabilities. Long-term debt : The fair values of long-term debt are estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements. Subordinated debt : The fair values reported for subordinated debentures are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar terms and maturities. Accrued interest : The carrying amounts of accrued interest approximate fair value Forward loan sale commitments and derivative loan commitments : 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. Interest rate swap agreements : 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. Off-balance sheet instruments : Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair values of these instruments are considered immaterial. Assets and liabilities measured at fair value on a recurring basis Assets and liabilities measured at fair value on a recurring basis at December 31, 2019 and 2018 are summarized below: Total Level 1 Level 2 Level 3 Fair Value (In thousands) December 31, 2019 Assets Securities available for sale $ — $ 28,293 $ 1,522 $ 29,815 Interest rate swap agreements — 3,472 — 3,472 $ — $ 31,765 $ 1,522 $ 33,287 Liabilites Derivative loan commitments $ — $ — $ 1 $ 1 Forward loan sale commitments — — 4 4 Interest rate swap agreements — 3,472 — 3,472 $ — $ 3,472 $ 5 $ 3,477 December 31, 2018 Assets Securities available for sale $ — $ 65,261 $ 1,509 $ 66,770 Interest rate swap agreements — 264 — 264 $ — $ 65,525 $ 1,509 $ 67,034 Liabilites Interest rate swap agreements $ — $ 264 $ — $ 264 Assets and liabilities measured at fair value on a non-recurring basis The Company may also be required, from time to time, to measure certain other 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. December 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Loans held for sale $ — $ — $ 3,354 $ — $ — $ — There are no liabilities at December 31, 2019 and 2018 measured at fair value on a non-recurring basis. 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 tables below. Certain financial instruments and all nonfinancial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company. Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In thousands) December 31, 2019 Financial assets: Cash and cash equivalents $ 42,094 $ 42,094 $ — $ — $ 42,094 Certificates of deposit 100 100 — — 100 Securities available for sale 29,815 — 28,293 1,522 29,815 FHLB stock 4,906 — — 4,906 4,906 Loans held for sale 3,354 — — 3,354 3,354 Loans, net 834,460 — — 839,084 839,084 Accrued interest receivable 2,525 — — 2,525 2,525 Interest rate swap agreements 3,472 — 3,472 — 3,472 Financial liabilities: Deposits $ 752,467 $ — $ — $ 752,699 $ 752,699 Short-term borrowings 20,000 — 20,000 — 20,000 Long-term debt 74,196 — 75,256 — 75,256 Subordinated debt 9,861 — — 9,788 9,788 Accrued interest payable 692 — — 692 692 Interest rate swap agreements 3,472 — 3,472 — 3,472 Derivative loan commitments 1 — — 1 1 Forward loan sale commitments 4 — — 4 4 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 — 65,261 1,509 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

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and consolidation	Basis of presentation and consolidation The consolidated financial statements include the accounts of the 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, formed 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.
Business and operating segments	Business and operating segments The Company provides a variety of financial services to individuals, non-profit organizations, small businesses and other entities within eastern Massachusetts. Its primary deposit products are checking, savings, money market deposits, and term certificate accounts and its primary lending products are residential and commercial real estate loans, construction loans, commercial loans, and consumer loans. Management evaluates the Company’s performance and allocates resources based on a single segment concept.
Use of estimates	Use of estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses.
Significant group concentrations of credit risk	Significant group concentrations of credit risk Most of the Company’s lending activities are with customers located within the New England region of the country. The Company does not have any significant concentrations to any one industry or customer.
Cash equivalents	Cash equivalents Cash equivalents include amounts due from banks and short-term investments with original maturities of three months or less, primarily balances held at the Federal Reserve Bank of Boston. The Company maintains cash balances in excess of federally insured limits.
Certificates of deposit	Certificates of deposit Certificates of deposit are carried at cost, which approximates fair value.
Fair value hierarchy	Fair value hierarchy The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the 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 or 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 and liabilities include those 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.
Securities available for sale	Securities available for sale Securities classified as available for sale are carried at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income/loss. Purchase premiums and discounts are amortized to earnings by methods which do not differ materially from the interest method. Discounts and non-callable security premiums are amortized over contractual lives of the securities. Callable security premiums are amortized over the earlier of the contractual lives or the earliest call date of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Each reporting period, the Company evaluates all debt securities with a fair value below amortized cost to determine whether other-than-temporary impairment (“OTTI”) exists. OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes.
Federal Home Loan Bank stock	Federal Home Loan Bank stock The Bank, as a member of the Federal Home Loan Bank (“FHLB”) of Boston, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLB may declare dividends on the stock. The Bank reviews for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. As of December 31, 2019 and 2018, no impairment has been recognized.
Loans held for sale	Loans held for sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.
Loans	Loans The loan portfolio consists of real estate, commercial and other loans to the Company’s customers in its 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 real estate and construction economic 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 which 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	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 3 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 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, may have an adverse 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, may have an effect on the credit quality of 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 uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.
Premises and equipment	Premises and equipment Land is carried at cost. Buildings, leasehold improvements and equipment are stated at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured.
Bank-owned life insurance	Bank-owned life insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in cash surrender value are reflected in noninterest income, and are not subject to income taxes.
Transfers of financial assets	Transfers of financial assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company; (2) the transferee obtains the right to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan.
Derivative financial instruments	Derivative financial instruments Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheets and measured at fair value. 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. Loan commitments that are derivatives are recognized at fair value, including servicing values, on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded in miscellaneous income. Fair values of the loan commitments are recognized based on changes in the fair value of the underlying mortgage due to interest rate changes, changes in the probability the derivative loan commitment will be exercised, and the passage of time. In estimating fair value, the Company assigns a probability to a loan commitment based on the expectation that it will be exercised and the loan will be funded. 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. Forward loan sale commitments are recognized at fair value on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded in miscellaneous income. Fair values for forward loan sale commitments are based on changes in the fair values of the underlying loans. Interest Rate Swap Agreements The Company has entered into financial instruments in the normal course of business to manage exposure to fluctuations in interest rates for its commercial customers. Instruments related to commercial loan swaps are considered derivatives. These derivatives are recognized on the consolidated balance sheet in other assets and other liabilities and measured at fair value with changes in their fair value recorded in miscellaneous income.
Advertising costs	Advertising costs Advertising costs are expensed as incurred.
Income taxes	Income taxes Deferred tax assets and liabilities relate to temporary differences between the book and tax bases of certain assets and liabilities, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company does not have any uncertain tax positions at December 31, 2019 or 2018 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2019 and 2018.
Share-based compensation plans	Share-based compensation plans The Company measures and recognizes compensation cost relating to share-based payment transactions based on the grant date fair value of the equity instruments issued. Share-based compensation is recognized over the period the employee is required to provide services for the award. Reductions in compensation expense associated with forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted annually based on actual forfeiture experience. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted.
Employee stock ownership plan	Employee stock ownership plan Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based on the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated balance sheet. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to stockholders’ equity.
Comprehensive income	Comprehensive income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, 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: December 31, 2019 2018 (In thousands) Net unrealized gains (losses) on securities available for sale $ 696 $ (732) Tax effect (166) 199 Net-of- tax amount $ 530 $ (533)
Earnings per share	Earnings per share Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects 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 determined using the treasury stock method. Earnings per common share have been computed based on the following: Years Ended December 31, 2019 2018 (In thousands, except per share data) Net income applicable to common stock $ 6,000 $ 5,991 Average number of common shares issued 2,558 2,513 Less: Average unallocated ESOP shares (96) (109) Average number of common shares outstanding used to calculate basic earnings per common share 2,462 2,404 Effect of dilutive stock options 92 99 Average number of common shares outstanding used to calculate diluted earnings per common share 2,554 2,503 Earnings per common share: Basic $ 2.44 $ 2.49 Diluted $ 2.36 $ 2.40 There were no anti-dilutive options that were excluded from the computation of diluted earnings per share for the years ended December 31, 2019 and 2018. Anti-dilutive shares are common stock equivalents with exercise prices less than the average market value of the Company’s stock for the periods presented.
Recent accounting pronouncements	Recent accounting pronouncements Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Account Standards Update (“ASU”) 2016-02, Leases (Topic 842) , which requires a lessee to record a right-to-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 liabilities. In June 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 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 included Wellesley Bank. The Board of Directors voted to delay implementation of the standard.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of accumulated other comprehensive income (loss)	December 31, 2019 2018 (In thousands) Net unrealized gains (losses) on securities available for sale $ 696 $ (732) Tax effect (166) 199 Net-of- tax amount $ 530 $ (533)
Schedule of earnings per share, basic and diluted	Years Ended December 31, 2019 2018 (In thousands, except per share data) Net income applicable to common stock $ 6,000 $ 5,991 Average number of common shares issued 2,558 2,513 Less: Average unallocated ESOP shares (96) (109) Average number of common shares outstanding used to calculate basic earnings per common share 2,462 2,404 Effect of dilutive stock options 92 99 Average number of common shares outstanding used to calculate diluted earnings per common share 2,554 2,503 Earnings per common share: Basic $ 2.44 $ 2.49 Diluted $ 2.36 $ 2.40

SHORT-TERM INVESTMENTS (Tables)

SHORT-TERM INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
SHORT-TERM INVESTMENTS
Schedule of short-term investments	December 31, 2019 2018 (In thousands) Federal Reserve Bank deposits $ 24,104 $ 29,856 Federal Home Loan Bank deposits 2 263 Money market accounts 10,102 4,853 $ 34,208 $ 34,972

SECURITIES AVAILABLE FOR SALE (

SECURITIES AVAILABLE FOR SALE (Tables)	12 Months Ended
	Dec. 31, 2019
SECURITIES AVAILABLE FOR SALE
Available-for-sale securities	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) December 31, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ 2,770 $ 61 $ (16) $ 2,815 Government-sponsored enterprises 2,224 51 (9) 2,266 SBA and other asset-backed securities 4,082 112 (2) 4,192 State and municipal bonds 7,446 375 — 7,821 Government-sponsored enterprise obligations 4,000 — (6) 3,994 Corporate bonds 8,597 139 (9) 8,727 $ 29,119 $ 738 $ (42) $ 29,815 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 bonds 1,495 — — 1,495 $ 67,502 $ 276 $ (1,008) $ 66,770
Schedule of investments classified by contractual maturity date	Amortized Fair Cost Value (In thousands) Within 1 year $ 1,850 $ 1,850 After 1 year to 5 years 7,810 7,874 After 5 years to 10 years 8,029 8,352 After 10 years 2,354 2,466 20,043 20,542 Mortgage- and asset-backed securities 9,076 9,273 $ 29,119 $ 29,815
Available-for-sale securities, continuous unrealized loss position, fair value	Less Than Twelve Months Twelve Months or Greater Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) December 31, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (16) $ 908 Government-sponsored enterprises — — (9) 342 SBA and other asset-backed securities — — (2) 290 Government-sponsored enterprise obligations (6) 2,994 — — Corporate bonds — — (9) 1,000 $ (6) $ 2,994 $ (36) $ 2,540 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)	12 Months Ended
	Dec. 31, 2019
LOANS AND ALLOWANCE FOR LOAN LOSSES
Summary of the ending balances of loans	A summary of the balances of loans is as follows: December 31, 2019 2018 (In thousands) Real estate loans: Residential – fixed $ 77,679 $ 64,218 Residential – variable 310,646 318,292 Commercial 181,928 148,006 Construction 138,007 106,723 708,260 637,239 Commercial loans: Secured 92,347 61,563 Unsecured 4,934 5,327 97,281 66,890 Consumer loans: Home equity lines of credit 36,693 39,486 Other 171 163 36,864 39,649 Total loans 842,405 743,778 Net deferred originations costs (292) (8) Total loans, net of deferred fees 842,113 743,770 Less: Allowance for loan losses (7,653) (6,738) Loans, net $ 834,460 $ 737,032
Summary of changes in the allowance for loan losses by portfolio segment	The following table summarizes the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2019 and 2018: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) Years Ended December 31, 2019 Allowance at December 31, 2018 $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Provision (credit) for loan losses (116) 24 361 740 (22) 1 (73) 915 Allowance at December 31, 2019 $ 2,100 $ 1,626 $ 1,823 $ 1,864 $ 235 $ 4 $ 1 $ 7,653 Years Ended December 31, 2018 Allowance at December 31, 2017 $ 1,722 $ 1,520 $ 1,661 $ 917 $ 237 $ 2 $ 94 $ 6,153 Provision (credit) for loan losses 494 82 (199) 207 20 1 (20) 585 Allowance at December 31, 2018 $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738
Schedule of information pertaining to the allowance for loan losses	Further information pertaining to the allowance for loan losses and impaired loans at December 31, 2019 and 2018 is as follows: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) December 31, 2019 Allowance related to impaired loans $ — $ — $ — $ 350 $ — $ — $ — $ 350 Allowance related to non-impaired loans 2,100 1,626 1,823 1,514 235 4 1 7,303 Total allowance $ 2,100 $ 1,626 $ 1,823 $ 1,864 $ 235 $ 4 $ 1 $ 7,653 Impaired loan balances $ 721 2,565 $ — $ 1,993 $ 500 $ — $ — $ 5,779 Non-impaired loan balances 387,604 179,363 138,007 95,288 36,193 171 — 836,626 Total loans $ 388,325 $ 181,928 $ 138,007 $ 97,281 $ 36,693 $ 171 $ — $ 842,405 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 December 31, 2019 and 2018: Past Due 90 30‑59 60‑89 Past Due 90 Days or More Non- Days Days Days or Total and Still accrual Past Due Past Due More Past Due Accruing Loans (In thousands) December 31, 2019 Residential real estate $ — $ — $ — $ — $ — $ 562 Commercial real estate — — 548 548 — 548 Commercial loans — — — — 883 Home equity lines of credit — — 500 500 — 500 Total $ — $ — $ 1,048 $ 1,048 $ — $ 2,493 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 at December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 721 $ 738 $ — $ 746 $ 764 $ — Commercial real estate 2,565 2,691 — 2,846 2,974 — Commercial loans 1,110 1,110 — — — — Home equity lines of credit 500 500 — — — — Total 4,896 5,039 — 3,592 3,738 — Impaired loans with a valuation allowance: Commercial loans 883 883 350 — — — Total impaired loans $ 5,779 $ 5,922 $ 350 $ 3,592 $ 3,738 $ —
Schedule of information pertaining to impaired loans	Further information pertaining to impaired loans follows: Years Ended December 31, 2019 Years Ended December 31, 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 $ 734 $ 34 $ 26 $ 819 $ 34 $ 28 Commercial real estate 2,704 107 11 2,920 89 36 Commercial loans 717 50 — — — — Home equity lines of credit 167 -- 5 — — — Total $ 4,322 $ 191 $ 42 $ 3,739 $ 123 $ 64
Troubled Debt Restructurings on Financing Receivables [Table Text Block]	The following is a summary of troubled debt restructurings recorded for the year ended December 31, 2019: Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial real estate 3 $ 2,155 $ 2,155
Schedule of Company's loans by risk rating	The following table presents the Company’s loans by risk rating: December 31, 2019 December 31, 2018 Commercial Commercial Real Estate Construction Commercial Total Real Estate Construction Commercial Total (In thousands) Loans rated 1‑4 $ 178,488 $ 138,007 $ 95,287 $ 411,782 $ 144,243 $ 106,723 $ 65,245 $ 316,211 Loans rated 5 875 — — 875 917 — 1,645 2,562 Loans rated 6 2,017 — 1,994 4,011 2,290 — — 2,290 Loans rated 7 548 — — 548 556 — — 556 Total $ 181,928 $ 138,007 $ 97,281 $ 417,216 $ 148,006 $ 106,723 $ 66,890 $ 321,619

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2019
PREMISES AND EQUIPMENT
Schedule of cost and accumulated depreciation and amortization of premises and equipment	A summary of the cost and accumulated depreciation and amortization of premises and equipment is as follows: Estimated December 31, Useful Lives In 2019 2018 Years (In thousands) Premises: Land $ 50 $ 50 Buildings 821 701 35‑40 Leasehold improvements 3,695 3,924 5‑15 Equipment 3,845 3,704 3‑5 8,411 8,379 Less accumulated depreciation and amortization (4,903) (4,455) Premises and equipment, net $ 3,508 $ 3,924
Summary of maturity of the operating lease liabilities	(In thousands) 2020 $ 1,633 2021 1,483 2022 1,182 2023 1,101 2024 893 Thereafter 1,019 Total lease payments 7,311 Less imputed interest (768) Present value of lease liabilities $ 6,543

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2019
LEASES
Summary of other information related to our operating leases	Cash flows from operating leases, in thousands, for the year 2019 $ 1,596 Weighted average remaining lease term, in years 5.2 Weighted average discount rate 3.13 %
Summary of maturity of the operating lease liabilities	(In thousands) 2020 $ 1,633 2021 1,483 2022 1,182 2023 1,101 2024 893 Thereafter 1,019 Total lease payments 7,311 Less imputed interest (768) Present value of lease liabilities $ 6,543

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2019
DEPOSITS
Schedule of deposit balances, by type	Years Ended December 31, 2019 2018 (In thousands) Demand $ 139,969 $ 116,926 NOW 38,876 36,944 Money market 278,953 203,578 Regular and other savings 77,979 82,218 Total non-certificate accounts 535,777 439,666 Term certificates of $250 thousand and greater 90,781 106,052 Term certificates less than $250 thousand 125,909 172,213 Total term certificates 216,690 278,265 Total deposits $ 752,467 $ 717,931
Schedule of term certificates by maturity	December 31, 2019 December 31, 2018 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands) Within 1 year $ 169,600 2.18 % $ 228,449 2.01 % Over 1 year to 2 years 35,296 1.96 43,237 2.23 Over 2 years to 3 years 6,604 2.03 2,666 1.60 Over 3 years to 4 years 5,190 1.95 3,913 2.09 $ 216,690 2.13 % $ 278,265 2.04 %

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2019
LONG-TERM DEBT
Schedule of long term debt	Long-term debt, and related maturities, at December 31, 2019 and 2018 consists of fixed-rate FHLB advances, as follows: Amount Weighted Average Rates 2019 2018 2019 2018 (In thousands) 2019 $ — $ 10,000 — % 1.60 % 2020 47,000 20,000 2.29 2.03 2021 8,000 8,000 2.48 2.48 2022* 961 1,320 1.84 1.84 2023** 18,235 19,208 3.54 0.91 $ 74,196 $ 58,528 2.50 % 1.65 % *At December 31, 2019 and 2018, includes an amortizing advance totaling $960 thousand and $1.3 million, respectively, requiring monthly principal and interest of $32 thousand. **At December 31, 2019, includes an amortizing advance amounting to $3.2 million requiring monthly principal and interest of $88 thousand. At December 31, 2019, includes a $15 million advance callable in 2020.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2019
INCOME TAXES
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2019 2018 (In thousands) Current tax provision: Federal $ 1,592 $ 1,669 State 784 762 2,376 2,431 Deferred tax provision (benefit): Federal (186) (170) State (88) (85) (274) (255) Total tax provision $ 2,102 $ 2,176
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: Years Ended December 31, 2019 2018 (In thousands) Statutory tax rate $ 1,701 $ 1,715 Increase (decrease) resulting from: State taxes, net of federal tax benefit 550 535 Income on bank-owned life insurance (50) (49) Tax exempt bond income (77) (86) Share-based compensation (19) (4) Other, net (3) 65 Effective tax $ 2,102 $ 2,176 Effective tax rates 26.0 % 26.6 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	The tax effects of each item that gives rise to deferred tax assets (liabilities) are as follows: December 31, 2019 2018 (In thousands) Deferred tax assets: Allowance for loan losses $ 2,151 $ 1,894 Employee benefit plans 1,001 916 Partnerships and other investments 16 5 Net unrealized loss on securities available for sale — 199 Other, net 35 17 3,203 3,031 Deferred tax liabilities: Depreciation and amortization (299) (198) Net unrealized gain on securities available for sale (166) -- Mortgage servicing rights (23) (27) Deferred loan fees (2) (2) (490) (227) Net deferred tax asset $ 2,713 $ 2,804

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
DERIVATIVE INSTRUMENTS
Schedule of summary of the interest rate swaps	The table below presents the interest rate swaps outstanding at December 31, 2019 and 2018: With commercial With third-party loan borrowers financial institutions December 31, December 31, 2019 2018 2019 2018 (dollars in thousands) Notional amount $ 71,941 $ 28,320 $ 71,941 $ 28,320 Receive (pay) fixed rate (weighted average) 4.43 % 5.09 % (4.43) % (5.09) % Receive (pay) variable rate (weighted average) (3.79) % (5.06) % 3.79 % 5.06 % Weighted average remaining years 11.0 years 12.8 years 11.0 years 12.8 years Unrealized fair value gain (loss) $ 3,472 $ 264 $ (3,472) $ (264)

OTHER COMMITMENTS AND CONTING_2

OTHER COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2019
OTHER COMMITMENTS AND CONTINGENCIES
Schedule of credit risk	At December 31, 2019 and 2018, the following financial instruments were outstanding whose contract amounts represent credit risk: December 31, 2019 2018 (In thousands) Commitments to grant loans $ 39,922 $ 9,417 Unadvanced funds on home equity lines of credit 41,837 41,769 Unadvanced funds on commercial lines of credit 36,736 32,511 Unadvanced funds on construction loans 71,468 65,542 Standby letters of credit 1,427 1,427 Overdraft lines of credit 473 486

MINIMUM REGULATORY CAPITAL RE_2

MINIMUM REGULATORY CAPITAL REQUIREMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
MINIMUM REGULATORY CAPITAL REQUIREMENTS
Schedule of bank capital amount and ratios	The Bank’s capital amounts and ratios as of December 31, 2019 and 2018 are presented in the following tables: Minimum to be Minimum to be Well Adequately Capitalized Capitalized Under under Prompt Corrective Prompt Corrective Actual Action Provisions Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 Total capital to risk-weighted assets $ 87,146 11.6 % $ 60,027 8.0 % $ 75,034 10.0 % Common equity Tier 1 capital to risk-weighted assets 79,493 10.6 33,765 4.5 48,772 6.5 Tier 1 capital to risk-weighted assets 79,493 10.6 45,020 6.0 60,027 8.0 Tier 1 capital to average assets 79,493 8.4 38,014 4.0 47,517 5.0 December 31, 2018 Total capital to risk-weighted assets $ 79,222 12.3 % $ 51,474 8.0 % $ 64,342 10.0 % Common equity Tier 1 capital to risk-weighted assets 72,484 11.3 28,954 4.5 41,822 6.5 Tier 1 capital to risk-weighted assets 72,484 11.3 38,605 6.0 51,474 8.0 Tier 1 capital to average assets 72,484 8.4 34,347 4.0 42,934 5.0

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2019
EMPLOYEE BENEFIT PLANS
Summary of stock option activity	A summary of option activity under the 2012 Equity Incentive Plan for the year ended December 31, 2019 is presented below: Outstanding Non-vested Weighted Weighted Weighted Average Average Average Remaining Aggregate Grant Exercise Contractual Intrinsic Date Fair Shares Price Term Value Shares Value (In thousands) (In years) (In thousands) (In thousands) Balance at January 1, 2019 193 $ 16.11 10 $ 4.13 Vested — -- (6) 4.33 Exercised (66) 16.63 — — Forfeited (3) 19.07 (3) 4.01 Balance at December 31, 2019 124 $ 16.09 $ 3,671 1 $ 4.13 Exercisable at December 31, 2019 123 $ 15.74 $ 3,630
Schedule of non-vested stock awards	The following table presents the activity in non-vested stock awards under the equity incentive plans for the year ended December 31, 2019: Number of Grant-date Shares Fair Value (In thousands) Non-vested stock awards at beginning of year 28 $ 23.97 Restricted shares granted 14 28.88 Shares vested (8) 22.43 Shares forfeited (6) 24.39 Non-vested stock awards at end of year 28 $ 23.97
Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block]	At December 31, 2019, the remaining principal balance on the ESOP debt is payable as follows: Year Ending December 31, Amount (In thousands) 2020 $ 131 2021 135 2022 140 2023 144 2024 149 Thereafter 312 $ 1,011
Schedule of shares held by ESOP	Shares held by the ESOP include the following: December 31, 2019 2018 Allocated 86,407 75,193 Unallocated 89,868 102,706 176,275 177,899

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Schedule of information pertaining to loans	Years Ended December 31, 2019 2018 (In thousands) Balance at beginning of year $ 7,873 $ 3,460 Principal additions (1) 163 5,820 Principal reductions (2) (1,103) (1,407) Balance at end of year $ 6,933 $ 7,873 (1) In 2018, includes $5.7 million of loans associated with a newly appointed director during the year, which represent the outstanding loan balances at the effective date of appointment. (2) Includes amounts associated with individuals no longer considered to be an insider as of December 31, 2019 and 2018.

FAIR VALUES OF FINANCIAL INSTRU

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
FAIR VALUES OF ASSETS AND LIABILITIES
Schedule of fair value, assets and liabilities measured on recurring basis	Assets and liabilities measured at fair value on a recurring basis at December 31, 2019 and 2018 are summarized below: Total Level 1 Level 2 Level 3 Fair Value (In thousands) December 31, 2019 Assets Securities available for sale $ — $ 28,293 $ 1,522 $ 29,815 Interest rate swap agreements — 3,472 — 3,472 $ — $ 31,765 $ 1,522 $ 33,287 Liabilites Derivative loan commitments $ — $ — $ 1 $ 1 Forward loan sale commitments — — 4 4 Interest rate swap agreements — 3,472 — 3,472 $ — $ 3,472 $ 5 $ 3,477 December 31, 2018 Assets Securities available for sale $ — $ 65,261 $ 1,509 $ 66,770 Interest rate swap agreements — 264 — 264 $ — $ 65,525 $ 1,509 $ 67,034 Liabilites Interest rate swap agreements $ — $ 264 $ — $ 264
Schedule of fair value measurements, nonrecurring	December 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Loans held for sale $ — $ — $ 3,354 $ — $ — $ —
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 tables below. Certain financial instruments and all nonfinancial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company. Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In thousands) December 31, 2019 Financial assets: Cash and cash equivalents $ 42,094 $ 42,094 $ — $ — $ 42,094 Certificates of deposit 100 100 — — 100 Securities available for sale 29,815 — 28,293 1,522 29,815 FHLB stock 4,906 — — 4,906 4,906 Loans held for sale 3,354 — — 3,354 3,354 Loans, net 834,460 — — 839,084 839,084 Accrued interest receivable 2,525 — — 2,525 2,525 Interest rate swap agreements 3,472 — 3,472 — 3,472 Financial liabilities: Deposits $ 752,467 $ — $ — $ 752,699 $ 752,699 Short-term borrowings 20,000 — 20,000 — 20,000 Long-term debt 74,196 — 75,256 — 75,256 Subordinated debt 9,861 — — 9,788 9,788 Accrued interest payable 692 — — 692 692 Interest rate swap agreements 3,472 — 3,472 — 3,472 Derivative loan commitments 1 — — 1 1 Forward loan sale commitments 4 — — 4 4 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 — 65,261 1,509 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

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accumulated other comprehensive income (loss) and related tax effects (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Net unrealized gains (losses) on securities available for sale	$ 696	$ (732)
Tax effect	(166)	199
Net-of tax amount	$ 530	(533)
Stranded effect of tax rate change (Note 12)		$ 0	$ (7)

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings per common share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Net income applicable to common stock	$ 6,000	$ 5,991
Average number of common shares issued	2,558,000	2,513,000
Less: Average unallocated ESOP shares	(96,000)	(109,000)
Average number of common shares outstanding used to calculate basic earnings per common share	2,461,527	2,404,371
Effect of dilutive stock options	92,000	99,000
Average number of common shares outstanding used to calculate diluted earnings per share	2,553,805	2,502,784
Earnings per common share:
Basic	$ 2.44	$ 2.49
Diluted	$ 2.36	$ 2.40

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Thousands	Dec. 05, 2019	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Shares of common stock to be received for each share of Entity's common stock under merger	0.580
Operating Lease, Right-of-Use Asset		$ 6,473		$ 0
Operating Lease, Liability		$ 6,543		$ 0
Accounting Standards Update 2016-02 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Operating Lease, Right-of-Use Asset			$ 7,800
Operating Lease, Liability			$ 7,800
Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan To Value Ratio		80.00%
Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Time Period To Capture Relevant Loan Loss Data		10 years
Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Time Period To Capture Relevant Loan Loss Data		3 years

RESTRICTIONS ON CASH AND AMOU_2

RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS
Cash and Securities Segregated under Federal and Other Regulations	$ 6.2	$ 5.1

SHORT-TERM INVESTMENTS (Details

SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Schedule of Investments [Line Items]
Interest-bearing Deposits in Banks and Other Financial Institutions	$ 34,208	$ 34,972
Federal Reserve Bank deposits [Member]
Schedule of Investments [Line Items]
Interest-bearing Deposits in Banks and Other Financial Institutions	24,104	29,856
Federal Home Loan Bank deposits [Member]
Schedule of Investments [Line Items]
Interest-bearing Deposits in Banks and Other Financial Institutions	2	263
Money market accounts [Member]
Schedule of Investments [Line Items]
Interest-bearing Deposits in Banks and Other Financial Institutions	$ 10,102	$ 4,853

CERTIFICATES OF DEPOSIT - Addit

CERTIFICATES OF DEPOSIT - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CERTIFICATES OF DEPOSIT
Percentage Of Return On Investment	1.73%	2.48%
Certificates of Deposit, at Carrying Value	$ 100	$ 100

SECURITIES AVAILABLE FOR SALE_2

SECURITIES AVAILABLE FOR SALE (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 29,119	$ 67,502
Gross Unrealized Gains	738	276
Gross Unrealized Losses	(42)	(1,008)
Fair Value	29,815	66,770
SBA and other asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,082	11,720
Gross Unrealized Gains	112	64
Gross Unrealized Losses	(2)	(157)
Fair Value	4,192	11,627
State and municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,446	12,908
Gross Unrealized Gains	375	111
Gross Unrealized Losses	0	(111)
Fair Value	7,821	12,908
Government-sponsored enterprise obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,000	8,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(6)	(187)
Fair Value	3,994	7,813
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,597	18,151
Gross Unrealized Gains	139	28
Gross Unrealized Losses	(9)	(322)
Fair Value	8,727	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	2,770	3,846
Gross Unrealized Gains	61	44
Gross Unrealized Losses	(16)	(43)
Fair Value	2,815	3,847
Residential mortgage-backed securities [Member] | Government-sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,224	11,382
Gross Unrealized Gains	51	29
Gross Unrealized Losses	(9)	(188)
Fair Value	$ 2,266	$ 11,223

SECURITIES AVAILABLE FOR SALE -

SECURITIES AVAILABLE FOR SALE - Schedule of debt securities by contractual maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale Securities, Debt Maturities, Amortized Cost
Within 1 year	$ 1,850
After 1 year to 5 years	7,810
After 5 years to 10 years	8,029
After 10 years	2,354
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total	20,043
Mortgage- and asset-backed securities	9,076
Available-for-sale Debt Securities, Amortized Cost Basis, Total	29,119	$ 67,502
Available-for-sale Securities, Debt Maturities, Fair Value
Within 1 year	1,850
After 1 year to 5 years	7,874
After 5 years to 10 years	8,352
After 10 years	2,466
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value Total	20,542
Mortgage- and asset-backed securities	9,273
Available-for-sale Securities, Debt Securities, Fair Value Total	$ 29,815	$ 66,770

SECURITIES AVAILABLE FOR SALE_3

SECURITIES AVAILABLE FOR SALE - Information pertaining to investment category (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	$ (6)	$ (32)
Less Than Twelve Months Fair Value	2,994	6,194
Over Twelve Months Gross Unrealized Losses	(36)	(976)
Over Twelve Months Fair Value	2,540	40,284
SBA and other asset-backed securities [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	(2)	(157)
Over Twelve Months Fair Value	290	5,455
State and municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses		(2)
Less Than Twelve Months Fair Value		386
Over Twelve Months Gross Unrealized Losses		(109)
Over Twelve Months Fair Value		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	(9)	(293)
Over Twelve Months Fair Value	1,000	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	(16)	(43)
Over Twelve Months Fair Value	908	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	$ 342	$ 7,880

SECURITIES AVAILABLE FOR SALE_4

SECURITIES AVAILABLE FOR SALE - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
SECURITIES AVAILABLE FOR SALE
Unrealized Losses Debt Securities Aggregate Depreciation Percentage	0.75%
Proceeds from Sale of Available-for-sale Securities	$ 28,422,000	$ 0
Gross Realized Gains	145,000
Gross Realized Losses	$ 137,000

LOANS AND ALLOWANCE FOR LOAN _3

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Total loans	$ 842,405	$ 743,778
Net deferred origination costs	(292)	(8)
Total loans, net of deferred fees	842,113	743,770
Less: Allowance for loan losses	(7,653)	(6,738)
Loans, net	834,460	737,032
Commercial loan [Member]
Total loans	97,281	66,890
Consumer loan [Member]
Total loans	36,864	39,649
Commercial real estate [Member]
Total loans	181,928	148,006
Construction [Member]
Total loans	138,007	106,723
Secured [Member] | Commercial loan [Member]
Total loans	92,347	61,563
Unsecured [Member] | Commercial loan [Member]
Total loans	4,934	5,327
Home equity lines of credit [Member]
Total loans	36,693	39,486
Home equity lines of credit [Member] | Consumer loan [Member]
Total loans	36,693	39,486
Other Consumer [Member]
Total loans	171	163
Other Consumer [Member] | Consumer loan [Member]
Total loans	171	163
Real estate loans [Member]
Total loans	708,260	637,239
Real estate loans [Member] | Residential - fixed [Member]
Total loans	77,679	64,218
Real estate loans [Member] | Residential - variable [Member]
Total loans	310,646	318,292
Real estate loans [Member] | Commercial real estate [Member]
Total loans	181,928	148,006
Real estate loans [Member] | Construction [Member]
Total loans	$ 138,007	$ 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	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Allowance Beginning Balance	$ 6,738	$ 6,153
Provision (credit) for loan losses	915	585
Allowance Ending Balance	7,653	6,738
Commercial loan [Member]
Allowance Beginning Balance	1,124	917
Provision (credit) for loan losses	740	207
Allowance Ending Balance	1,864	1,124
Residential real estate [Member]
Allowance Beginning Balance	2,216	1,722
Provision (credit) for loan losses	(116)	494
Allowance Ending Balance	2,100	2,216
Commercial real estate [Member]
Allowance Beginning Balance	1,602	1,520
Provision (credit) for loan losses	24	82
Allowance Ending Balance	1,626	1,602
Construction [Member]
Allowance Beginning Balance	1,462	1,661
Provision (credit) for loan losses	361	(199)
Allowance Ending Balance	1,823	1,462
Home equity lines of credit [Member]
Allowance Beginning Balance	257	237
Provision (credit) for loan losses	(22)	20
Allowance Ending Balance	235	257
Other Consumer [Member]
Allowance Beginning Balance	3	2
Provision (credit) for loan losses	1	1
Allowance Ending Balance	4	3
Unallocated [Member]
Allowance Beginning Balance	74	94
Provision (credit) for loan losses	(73)	(20)
Allowance Ending Balance	$ 1	$ 74

LOANS AND ALLOWANCE FOR LOAN _5

LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance related to impaired loans	$ 350	$ 0
Allowance related to non-impaired loans	7,303	6,738
Total allowance	7,653	6,738	$ 6,153
Impaired loan balances	5,779	3,592
Non-impaired loan balances	836,626	740,186
Total loans	842,405	743,778
Commercial loan [Member]
Allowance related to impaired loans	350	0
Allowance related to non-impaired loans	1,514	1,124
Total allowance	1,864	1,124	917
Impaired loan balances	1,993	0
Non-impaired loan balances	95,288	66,890
Total loans	97,281	66,890
Residential real estate [Member]
Allowance related to impaired loans	0	0
Allowance related to non-impaired loans	2,100	2,216
Total allowance	2,100	2,216	1,722
Impaired loan balances	721	746
Non-impaired loan balances	387,604	381,764
Total loans	388,325	382,510
Commercial real estate [Member]
Allowance related to impaired loans	0	0
Allowance related to non-impaired loans	1,626	1,602
Total allowance	1,626	1,602	1,520
Impaired loan balances	2,565	2,846
Non-impaired loan balances	179,363	145,160
Total loans	181,928	148,006
Construction [Member]
Allowance related to impaired loans	0	0
Allowance related to non-impaired loans	1,823	1,462
Total allowance	1,823	1,462	1,661
Impaired loan balances	0	0
Non-impaired loan balances	138,007	106,723
Total loans	138,007	106,723
Home equity lines of credit [Member]
Allowance related to impaired loans	0	0
Allowance related to non-impaired loans	235	257
Total allowance	235	257	237
Impaired loan balances	500	0
Non-impaired loan balances	36,193	39,486
Total loans	36,693	39,486
Other Consumer [Member]
Allowance related to impaired loans	0	0
Allowance related to non-impaired loans	4	3
Total allowance	4	3	2
Impaired loan balances	0	0
Non-impaired loan balances	171	163
Total loans	171	163
Unallocated [Member]
Allowance related to impaired loans	0	0
Allowance related to non-impaired loans	1	74
Total allowance	1	74	$ 94
Impaired loan balances	0	0
Non-impaired loan balances	0	0
Total loans	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN _6

LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of past due and non-accrual loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Total Past Due	$ 1,048	$ 2,107
Past Due 90 Days or More and Still Accruing	0	0
Non-accrual Loans	2,493	1,137
Commercial loan [Member]
Total Past Due	0
Past Due 90 Days or More and Still Accruing	0
Non-accrual Loans	883
Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	0	1,551
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial loan [Member]
Total Past Due	0
Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial loan [Member]
Total Past Due	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	1,048	556
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial loan [Member]
Total Past Due	0
Residential real estate [Member]
Total Past Due	0	1,551
Past Due 90 Days or More and Still Accruing	0	0
Non-accrual Loans	562	581
Residential real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	0	1,551
Residential real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	0	0
Residential real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	0	0
Commercial real estate [Member]
Total Past Due	548	556
Past Due 90 Days or More and Still Accruing	0	0
Non-accrual Loans	548	556
Commercial real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	0	0
Commercial real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	0	0
Commercial real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	548	$ 556
Home equity lines of credit [Member]
Total Past Due	500
Past Due 90 Days or More and Still Accruing	0
Non-accrual Loans	500
Home equity lines of credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	0
Home equity lines of credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	0
Home equity lines of credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	$ 500

LOANS AND ALLOWANCE FOR LOAN _7

LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired financing receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Impaired loans Recorded Investment, Without a Valuation Allowance	$ 4,896	$ 3,592
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	5,039	3,738
Impaired loans Related allowance , Without a Valuation allowance	350	0
Total impaired loans Recorded Investment	5,779	3,592
Total impaired loans Unpaid Principal Balance	5,922	3,738
Residential Real Estate [Member] | Others [Member]
Total impaired loans Unpaid Principal Balance	2,400	2,700
Residential Real Estate [Member] | Participants [Member]
Total impaired loans Unpaid Principal Balance	8,100	9,500
Commercial loan [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	1,110	0
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	1,110	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	883
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	883
Impaired loans Related allowance , Without a Valuation allowance	350	0
Residential real estate [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	721	746
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	738	764
Impaired loans Related allowance , Without a Valuation allowance	0	0
Commercial real estate [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	2,565	2,846
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	2,691	2,974
Impaired loans Related allowance , Without a Valuation allowance	0	0
Home equity lines of credit [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	500	0
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	500	0
Impaired loans Related allowance , Without a Valuation allowance	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN _8

LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired financing receivables by class of loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Average Recorded Investment	$ 4,322	$ 3,739
Interest Income Recognized	191	123
Interest Income Recognized on Cash Basis	42	64
Residential real estate [Member]
Average Recorded Investment	734	819
Interest Income Recognized	34	34
Interest Income Recognized on Cash Basis	26	28
Commercial real estate [Member]
Average Recorded Investment	2,704	2,920
Interest Income Recognized	107	89
Interest Income Recognized on Cash Basis	11	$ 36
Home equity lines of credit [Member]
Average Recorded Investment	167
Interest Income Recognized on Cash Basis	5
Commercial loan [Member]
Average Recorded Investment	717
Interest Income Recognized	$ 50

LOANS AND ALLOWANCE FOR LOAN _9

LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of troubled debt restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)contract
LOANS AND ALLOWANCE FOR LOAN LOSSES
Number of Contracts | contract	3
Pre-Modification Outstanding Recorded Investment	$ 2,155
Post-Modification Outstanding Recorded Investment	$ 2,155

LOANS AND ALLOWANCE FOR LOAN_10

LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit quality information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loans	$ 417,216	$ 321,619
Loans rated 1-4 [Member]
Loans	411,782	316,211
Loans rated 5 [Member]
Loans	875	2,562
Loans rated 6 [Member]
Loans	4,011	2,290
Loans rated 7 [Member]
Loans	548	556
Commercial real estate [Member]
Loans	181,928	148,006
Commercial real estate [Member] | Loans rated 1-4 [Member]
Loans	178,488	144,243
Commercial real estate [Member] | Loans rated 5 [Member]
Loans	875	917
Commercial real estate [Member] | Loans rated 6 [Member]
Loans	2,017	2,290
Commercial real estate [Member] | Loans rated 7 [Member]
Loans	548	556
Construction [Member]
Loans	138,007	106,723
Construction [Member] | Loans rated 1-4 [Member]
Loans	138,007	106,723
Construction [Member] | Loans rated 5 [Member]
Loans	0	0
Construction [Member] | Loans rated 6 [Member]
Loans	0	0
Construction [Member] | Loans rated 7 [Member]
Loans	0	0
Commercial loan [Member]
Loans	97,281	66,890
Commercial loan [Member] | Loans rated 1-4 [Member]
Loans	95,287	65,245
Commercial loan [Member] | Loans rated 5 [Member]
Loans	0	1,645
Commercial loan [Member] | Loans rated 6 [Member]
Loans	1,994	0
Commercial loan [Member] | Loans rated 7 [Member]
Loans	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN_11

LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable, Gross	$ 842,405	$ 743,778
Financing Receivable, Modifications, Recorded Investment		721
Servicing Asset	287	5,300
Troubled Debt Restructuring [Member]
Financing Receivable, Modifications, Recorded Investment	3,200
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	548	556
Commercial loan [Member]
Loans and Leases Receivable, Gross	97,281	$ 66,890
Line of credit availability	145
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

PREMISES AND EQUIPMENT (Details

PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Land	$ 50	$ 50
Buildings	821	701
Leasehold improvements	3,695	3,924
Equipment	3,845	3,704
Property, Plant and Equipment, Gross, Total	8,411	8,379
Less accumulated depreciation and amortization	(4,903)	(4,455)
Property, Plant and Equipment, Net, Total	$ 3,508	$ 3,924
Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Lives	0 years
Buildings [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Lives	35 years
Buildings [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Lives	40 years
Leasehold improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Lives	5 years
Leasehold improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Lives	15 years
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Lives	3 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Lives	5 years

PREMISES AND EQUIPMENT - Additi

PREMISES AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
PREMISES AND EQUIPMENT
Depreciation, Depletion and Amortization, Nonproduction	$ 829	$ 767
Operating Lease, Expense	$ 1,600	$ 1,400

LEASES - Other information rela

LEASES - Other information related to our operating leases (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
LEASES
Operating cash flows from operating leases, in thousands	$ 1,596
Weighted average remaining lease term -operating leases, in years	5 years 2 months 12 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	Dec. 31, 2019	Dec. 31, 2018
LEASES
2020	$ 1,633
2021	1,483
2022	1,182
2023	1,101
2024	893
Thereafter	1,019
Operating Leases, Future Minimum Payments Due, Total	7,311
Less imputed interest	(768)
Present value of lease liabilities	$ 6,543	$ 0

LEASES - Additional information

LEASES - Additional information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)ft²	Dec. 31, 2018USD ($)
LEASES
Operating Lease, Expense	$ 1,600	$ 1,400
Land Subject to Ground Leases | ft²	4,431
Lessee, Operating Lease, Term of Contract	74 months
Increase in bank's ROU	$ 1,300
Operating Lease, Right-of-Use Asset	6,473	0
Operating Lease, Liability	$ 6,543	$ 0
Operating lease extension term	10 years

DEPOSITS - Schedule of deposit

DEPOSITS - Schedule of deposit balances by type (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
DEPOSITS
Demand	$ 139,969	$ 116,926
NOW	38,876	36,944
Money market	278,953	203,578
Regular and other savings	77,979	82,218
Total non-certificate accounts	535,777	439,666
Term certificates of $250 thousand and greater	90,781	106,052
Term certificates less than $250 thousand	125,909	172,213
Total term certificates	216,690	278,265
Total deposits	$ 752,467	$ 717,931

DEPOSITS - Schedule of term cer

DEPOSITS - Schedule of term certificates by maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amount
Within 1 year	$ 169,600	$ 228,449
Over 1 year to 2 years	35,296	43,237
Over 2 years to 3 years	6,604	2,666
Over 3 years to 4 years	5,190	3,913
Total term certificates	$ 216,690	$ 278,265
Weighted Average Rate
Within 1 year	2.18%	2.01%
Over 1 year to 2 years	1.96%	2.23%
Over 2 years to 3 years	2.03%	1.60%
Over 3 years to 4 years	1.95%	2.09%
Time Deposits Weighted Average Interest Rate	2.13%	2.04%

DEPOSITS - Additional Informati

DEPOSITS - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deposits [Member]
Time Deposits [Line Items]
Deposits Received for Securities Loaned, at Carrying Value	$ 47	$ 82.5

SHORT-TERM BORROWINGS AND AVA_2

SHORT-TERM BORROWINGS AND AVAILABLE LINES OF CREDIT - Additional Information (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Secured borrowing, weighted average interest rate	2.50%	2.44%
Commercial real estate loans pledged to access federal reserve bank discount window	$ 21,800,000	$ 16,800,000
Co-operative Central Bank [Member]
Short-term Debt [Line Items]
Unsecured line of credit, outstanding	0	0
Debt Instrument, Unused Borrowing Capacity, Amount	5,000,000	5,000,000
Federal Reserve Bank Advances [Member]
Short-term Debt [Line Items]
Borrowings available under line of credit	1,300,000	1,300,000
Line of Credit [Member]
Short-term Debt [Line Items]
Borrowings available under line of credit	5,000,000	5,000,000
Federal Reserve Discount Window [Member]
Short-term Debt [Line Items]
Unsecured line of credit, outstanding	$ 9,200,000	$ 6,900,000

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Advances from Federal Home Loan Banks, Amount	$ 74,196	$ 58,528
Weighted Average Rate	2.50%	1.65%
FHLB Maturity Year, 2019 [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Advances from Federal Home Loan Banks, Amount	$ 0	$ 10,000
Weighted Average Rate	0.00%	1.60%
FHLB Maturity Year, 2020 [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Advances from Federal Home Loan Banks, Amount	$ 47,000	$ 20,000
Weighted Average Rate	2.29%	2.03%
FHLB Maturity Year, 2021 [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Advances from Federal Home Loan Banks, Amount	$ 8,000	$ 8,000
Weighted Average Rate	2.48%	2.48%
FHLB Maturity Year, 2022 [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Advances from Federal Home Loan Banks, Amount	$ 961	$ 1,320
Weighted Average Rate	1.84%	1.84%
FHLB Maturity Year, 2023 [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Advances from Federal Home Loan Banks, Amount	$ 18,235	$ 19,208
Weighted Average Rate	3.54%	0.91%

LONG-TERM DEBT - Additional Inf

LONG-TERM DEBT - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Percentage of carry value of first mortgage loan on owners occupied property	75.00%
FHLB Maturity Year, 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment	$ 32	$ 32
Amortization of Advances from Federal Home Loan Banks	960	$ 1,300
FHLB Maturity Year, 2023 [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment	88
Amortization of Advances from Federal Home Loan Banks	3,200
Amortization of Advances from Federal Home Loan Banks	$ 15,000

SUBORDINATED DEBT - Additional

SUBORDINATED DEBT - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 17, 2015	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Subordinated Long-term Debt, Noncurrent		$ 9,788	$ 9,691
Subordinated Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 10,000
Debt Instrument, Interest Rate, Stated Percentage	6.00%	6.00%
Debt Instrument, Maturity Date	Dec. 30, 2025
Subordinated Long-term Debt, Noncurrent		$ 9,900	$ 9,900
Unamortized Debt Issuance Expense		$ 266
Debt Instrument, Interest Rate Terms		3-month LIBOR rate plus 435.5 basis points

INCOME TAXES - Allocation of fe

INCOME TAXES - Allocation of federal and state income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current tax provision:
Federal	$ 1,592	$ 1,669
State	784	762
Current Income Tax Expense (Benefit), Total	2,376	2,431
Deferred tax provision (benefit):
Federal	(186)	(170)
State	(88)	(85)
Effect of federal tax rate change		0	$ 979
Deferred Income Tax Expense (Benefit), Total	(274)	(255)
Income Tax Expense (Benefit), Total	$ 2,102	$ 2,176

INCOME TAXES - Reasons for diff

INCOME TAXES - Reasons for differences between the statutory federal income tax rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
INCOME TAXES
Statutory tax rate	$ 1,701	$ 1,715
Statutory tax rate		21.00%	34.00%
Increase (decrease) resulting from:
State taxes, net of federal tax benefit	550	$ 535
Income on bank-owned life insurance	(50)	(49)
Tax exempt bond income	(77)	(86)
Share-based compensation	(19)	(4)
Other, net	(3)	65
Income Tax Expense (Benefit), Total	$ 2,102	$ 2,176
Effective tax rates	26.00%	26.60%

INCOME TAXES - Tax effects of i

INCOME TAXES - Tax effects of items that gives rise to deferred tax assets (liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Allowance for loan losses	$ 2,151	$ 1,894
Employee benefit plans	1,001	916
Partnerships and other investments	16	5
Net unrealized gain/loss on securities available for sale	0	199
Other, net	35	17
Deferred Tax Assets, Net of Valuation Allowance, Total	3,203	3,031
Deferred tax liabilities:
Depreciation and amortization	(299)	(198)
Net unrealized gain on securities available for sale	(166)	0
Mortgage servicing rights	(23)	(27)
Deferred loan fees	(2)	(2)
Deferred Tax Liabilities, Net, Total	(490)	(227)
Deferred Tax Assets, Net, Total	$ 2,713	$ 2,804

INCOME TAXES- Additional Inform

INCOME TAXES- Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Provision for Loan Losses	$ 2,151	$ 1,894
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21.00%	34.00%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount		$ 0	$ 979
Available for sale Securities Change In Tax Rate		$ 0	$ 7
Accounting Standards Update 2018-02 [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets				$ 7
Earliest Year Open To Audit [Member]
Years open to audit	2016
Latest Year Open To Audit [Member]
Years open to audit	2020
Domestic Tax Authority [Member]
Deferred Tax Liability Not Recognized Temporary Difference Percentage Taxable If Certain Events Occur	150.00%
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Provision for Loan Losses	$ 820
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Policyholders' Surplus	$ 231

DERIVATIVE INSTRUMENTS - Summar

DERIVATIVE INSTRUMENTS - Summary of the interest rate swaps (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Commercial Borrower [Member]
Notional amount	$ 71,941	$ 28,320
Receive(pay) fixed rate (weighted average)	4.43%	5.09%
Receive (pay) variable rate (weighted average)	(3.79%)	(5.06%)
Weighted average remaining years	11 years	12 years 9 months 18 days
Unrealized fair value gain (loss)	$ 3,472	$ 264
Third Party Financial Institutions [Member]
Notional amount	$ 71,941	$ 28,320
Receive(pay) fixed rate (weighted average)	(4.43%)	(5.09%)
Receive (pay) variable rate (weighted average)	3.79%	5.06%
Weighted average remaining years	11 years	12 years 9 months 18 days
Unrealized fair value gain (loss)	$ (3,472)	$ (264)

DERIVATIVE INSTRUMENTS - Additi

DERIVATIVE INSTRUMENTS - Additional information (Details) $ in Thousands	Dec. 31, 2019USD ($)
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Liability	$ 4
Interest Rate Swap [Member]
Derivative [Line Items]
Loans Pledged as Collateral	5,800
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivative [Line Items]
Derivative Liability, Notional Amount	350
Derivative Asset, Fair Value, Gross Liability	1
Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Liability	4
Derivative Asset, Notional Amount	$ 3,700

OTHER COMMITMENTS AND CONTING_3

OTHER COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letters of Credit, Expiration Period	1 year
Construction [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	$ 71,468	$ 65,542
Standby letters of credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	1,427	1,427
Commercial real estate [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	36,736	32,511
Unadvanced funds on home equity lines of credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	41,837	41,769
Overdraft lines of credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	473	486
Commitments to grant loans [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	$ 39,922	$ 9,417

MINIMUM REGULATORY CAPITAL RE_3

MINIMUM REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
MINIMUM REGULATORY CAPITAL REQUIREMENTS
Total Capital to Risk-Weighted Assets, Actual Amount	$ 87,146	$ 79,222
Total Capital to Risk-Weighted Assets, Actual Ratio	11.60%	12.30%
Total Capital to Risk-Weighted Assets, Minimum Capital Requirements Amount	$ 60,027	$ 51,474
Total Capital to Risk-Weighted Assets, Minimum Capital Requirements Ratio	8.00%	8.00%
Total Capital to Risk-Weighted Assets, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 75,034	$ 64,342
Total Capital to Risk-Weighted Assets, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions Ratio	10.00%	10.00%
Common Equity Tier 1 Capital to Risk-Weighted Assets Actual Amount	$ 79,493	$ 72,484
Common Equity Tier 1 Capital to Risk-Weighted Assets Actual Ratio	10.60%	11.30%
Common Equity Tier 1 Capital to Risk-Weighted Assets Minimum Capital Requirements	$ 33,765	$ 28,954
Common Equity Tier 1 Capital to Risk-Weighted Assets Minimum Capital Requirements Ratio	4.50%	4.50%
Common Equity Tier 1 Capital to Risk-Weighted Assets Minimum to be Well Capitalized Under Prompt Corrective Action Provisions	$ 48,772	$ 41,822
Common Equity Tier 1 Capital to Risk-Weighted Assets Minimum to be Well Capitalized Under Prompt Corrective Action Provisions Ratio	6.50%	6.50%
Tier I Capital to Risk-Weighted Assets, Actual Amount	$ 79,493	$ 72,484
Tier I Capital to Risk-Weighted Assets, Actual Ratio	10.60%	11.30%
Tier I Capital to Risk-weighted Assets, Minimum Capital Requirements Amount	$ 45,020	$ 38,605
Tier I Capital to Risk-weighted Assets, Minimum Capital Requirements Ratio	6.00%	6.00%
Tier I Capital to Risk-Weighted Assets, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 60,027	$ 51,474
Tier I Capital to Risk-Weighted Assets, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions Ratio	8.00%	8.00%
Tier I Capital to average assets, Actual Amount	$ 79,493	$ 72,484
Tier I Capital to average assets, Actual Ratio	8.40%	8.40%
Tier I Capital to average assets, Minimum Capital Requirements Amount	$ 38,014	$ 34,347
Tier I Capital to average assets, Minimum Capital Requirements Ratio	4.00%	4.00%
Tier I Capital to average assets, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 47,517	$ 42,934
Tier I Capital to average assets, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions Ratio	5.00%	5.00%

MINIMUM REGULATORY CAPITAL RE_4

MINIMUM REGULATORY CAPITAL REQUIREMENTS - Additional Information (Details)	Dec. 31, 2019	Dec. 31, 2018
Tier One Risk Based Capital to Risk Weighted Assets	10.60%	11.30%
Tier One Leverage Capital to Average Assets	8.40%	8.40%
Required Capital Conservation buffer Rate	2.50%
Maximum [Member]
Tier One Risk Based Capital to Risk Weighted Assets	6.00%
Tier One Leverage Capital to Average Assets	8.00%
Minimum [Member]
Tier One Leverage Capital to Average Assets	4.00%
Common Stock [Member]
Tier One Risk Based Capital to Risk Weighted Assets	4.50%

EMPLOYEE BENEFIT PLANS - Summar

EMPLOYEE BENEFIT PLANS - Summary of option activity (Details) - 2016 Equity Incentive Plan $ / shares in Units, shares in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)$ / sharesshares
Shares
Outstanding at beginning of period	193
Vested	0
Forfeited	(3)
Exercised	(66)
Outstanding at end of period	124
Options exercisable at end of period	123
Weighted Average Exercise Price
Outstanding at beginning of period | $ / shares	$ 16.11
Forfeited | $ / shares	19.07
Exercised | $ / shares	$ 16.63
Sharebased Compensation Arrangement by Sharebased Payment Award Options Vested in Period Weighted Average Exercise Price | $	$ 0
Outstanding at end of period | $ / shares	$ 16.09
Options exercisable at end of period | $ / shares	$ 15.74
Weighted Average Remaining Contractual Term
Outstanding at end of period	3 years 2 months 27 days
Options exercisable at end of period	3 years 2 months 16 days
Aggregate intrinsic value
Outstanding | $	$ 3,671,000
Options exercisable at end of period | $	$ 3,630,000
Shares, Non-vested
Outstanding at beginning of period	10
Forfeited	(3)
Exercised	0
Outstanding at end of period	1
Weighted Average Grant Date Fair value, Non-vested
Outstanding at beginning of period | $ / shares	$ 4.13
Forfeited | $ / shares	4.01
Exercised | $ / shares	0
Outstanding at end of period | $ / shares	$ 4.13
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	6

EMPLOYEE BENEFIT PLANS - Non-ve

EMPLOYEE BENEFIT PLANS - Non-vested awards (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Restricted Stock [Member]
Number of Shares
Outstanding at beginning of period	28,000
Restricted shares granted	14,000	3,000
Shares vested	(8,000)
Restricted shares forfeited	(6,000)
Outstanding at end of period	28,000	28,000
Grant-date Fair Value
Outstanding at beginning of period	$ 23.97
Restricted shares granted	28.88
Shares vested	22.43
Restricted shares forfeited	24.39
Outstanding at end of period	23.97	$ 23.97
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 28.88	$ 34
2016 Equity Incentive Plan
Number of Shares
Outstanding at beginning of period	10,000
Shares vested	(6,000)
Restricted shares forfeited	(3,000)
Outstanding at end of period	1,000	10,000
Grant-date Fair Value
Outstanding at beginning of period	$ 4.13
Shares vested	4.33
Restricted shares forfeited	4.01
Outstanding at end of period	$ 4.13	$ 4.13

EMPLOYEE BENEFIT PLANS - Remain

EMPLOYEE BENEFIT PLANS - Remaining principal balance on the ESOP (Details) $ in Thousands	Dec. 31, 2019USD ($)
Retirement Benefits [Abstract]
2020	$ 131
2021	135
2022	140
2023	144
2024	149
Thereafter	312
Employee Stock Ownership Plan (ESOP), Debt Structure, Indirect Loan, Amount	$ 1,011

EMPLOYEE BENEFIT PLANS - Shares

EMPLOYEE BENEFIT PLANS - Shares held by ESOP (Details) - shares	Dec. 31, 2019	Dec. 31, 2018
EMPLOYEE BENEFIT PLANS
Allocated	86,407	75,193
Unallocated	89,868	102,706
Total	176,275	177,899

EMPLOYEE BENEFIT PLANS - Additi

EMPLOYEE BENEFIT PLANS - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Employee Stock Ownership Plan (ESOP), Shares in ESOP	176,275	177,899
Employee Stock Ownership Plan ESOP Percent Of Shares Authorized To Be Purchased	6.80%
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	$ 4,100	$ 2,800
Employee Stock Ownership Plan (ESOP), Compensation Expense	418	406
Incentive Compensation Expenses	$ 1,500	1,400
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	7.00%
Defined Benefit Plan, Other Cost (Credit)		2
Defined Contribution Plan, Cost	$ 365	338
Unrecognized compensation expense for non-vested stock options	$ 4
Unrecognized compensation expense, recognition period	9 months
Equity Incentive Plan, options granted	75,000
Share base compensation expenses applicable to stock option plan	$ 18	36
Employee Stock Option [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Unrecognized compensation expense for non-vested stock options	$ 544
Unrecognized compensation expense, recognition period	2 years 2 months 1 day
Stock Award [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Recognize tax Benefit	$ 92	97
Share base compensation expenses applicable to stock option plan	$ 326	343
Restricted Stock [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	14,500
Minimum [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage Of Income Before Income Taxes And Certain Compensation Available For Profit Sharing Plan	10.00%
Maximum [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage Of Income Before Income Taxes And Certain Compensation Available For Profit Sharing Plan	20.00%
2012 Equity Incentive Plan [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Equity Incentive Plan, options granted	231,894
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	20.00%
2016 Equity Incentive Plan [Member] | Restricted Stock [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	14,500
Supplemental Employee Retirement Plan [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	$ 465	242
Liability, Defined Benefit Plan	$ 2,000	$ 1,600

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
Balance at beginning of year	$ 7,873	$ 3,460
Principal additions	163	5,820
Principal payments	(1,103)	(1,407)
Balance at end of year	$ 6,933	$ 7,873

RELATED PARTY TRANSACTIONS - Ad

RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans and Leases Receivable, Related Parties	$ 6,933	$ 7,873	$ 3,460
Related Party Transaction, Rate	0.50%
Related Party Deposit Liabilities	$ 4,600	7,800
Director [Member]
Loans and Leases Receivable, Related Parties		$ 5,700
Maximum [Member]
Loans and Leases Receivable, Related Parties	$ 60

RESTRICTIONS ON BANK DIVIDEND_2

RESTRICTIONS ON BANK DIVIDENDS, LOANS AND ADVANCES - Additional Information (Details)	Dec. 31, 2019
RESTRICTIONS ON BANK DIVIDENDS, LOANS AND ADVANCES
Federal Home Loan Bank Advances As Percentage Of Total Assets	10.00%

FAIR VALUES OF ASSETS AND LIA_2

FAIR VALUES OF ASSETS AND LIABILITIES (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 33,287	$ 67,034
Total liabilities	3,477
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	3,472	264
Total liabilities	3,472	264
Forward loan sale commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	4
Securities available for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	29,815	66,770
Derivative loan commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	1
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Total liabilities	0
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 1 [Member] | Forward loan sale commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	0
Fair Value, Inputs, Level 1 [Member] | Securities available for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Fair Value, Inputs, Level 1 [Member] | Derivative loan commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	31,765	65,525
Total liabilities	3,472
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	3,472	264
Total liabilities	3,472	264
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	28,293	65,261
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	1,522	1,509
Total liabilities	5
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 3 [Member] | Forward loan sale commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	4
Fair Value, Inputs, Level 3 [Member] | Securities available for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	1,522	$ 1,509
Fair Value, Inputs, Level 3 [Member] | Derivative loan commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	$ 1

FAIR VALUES OF ASSETS AND LIA_3

FAIR VALUES OF ASSETS AND LIABILITIES - Assets and liabilities measured at fair value on a non-recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	$ 3,354
Non-recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities measured at fair value	0	$ 0
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	0
Fair Value, Inputs, Level 1 [Member] | Non-recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	0
Fair Value, Inputs, Level 2 [Member] | Non-recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	3,354
Fair Value, Inputs, Level 3 [Member] | Non-recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	$ 3,354	$ 0

FAIR VALUES OF ASSETS AND LIA_4

FAIR VALUES OF ASSETS AND LIABILITIES - Fair values of financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial assets:
Cash and cash equivalents	$ 42,094	$ 42,650
Certificates of deposit	100	100
Securities available for sale	29,815	66,770
FHLB stock	4,906	4,747
Loans held for sale	3,354
Loans, net	839,084	732,427
Accrued interest receivable	2,525	2,288
Interest rate swap agreements	3,472	264
Financial liabilities:
Deposits	752,699	716,685
Short-term borrowings	20,000	15,000
Long-term debt	75,256	58,192
Subordinated debt	9,788	9,691
Accrued interest payable	692	487
Interest rate swap agreements	3,472	264
Derivative loan commitments	1
Derivative Asset, Fair Value, Gross Liability	4
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and cash equivalents	42,094	42,650
Certificates of deposit	100	100
Securities available for sale	0	0
FHLB stock	0	0
Loans held for sale	0
Loans, net	0	0
Accrued interest receivable	0	0
Interest rate swap agreements	0	0
Financial liabilities:
Deposits	0	0
Short-term borrowings	0	0
Long-term debt	0	0
Subordinated debt	0	0
Accrued interest payable	0	0
Interest rate swap agreements	0	0
Derivative loan commitments	0
Derivative Asset, Fair Value, Gross Liability	0
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Cash and cash equivalents	0	0
Certificates of deposit	0	0
Securities available for sale	28,293	65,261
FHLB stock	0	0
Loans held for sale	0
Loans, net	0	0
Accrued interest receivable	0	0
Interest rate swap agreements	3,472	264
Financial liabilities:
Deposits	0	0
Short-term borrowings	20,000	15,000
Long-term debt	75,256	58,192
Subordinated debt	0	0
Accrued interest payable	0	0
Interest rate swap agreements	3,472	264
Derivative loan commitments	0
Derivative Asset, Fair Value, Gross Liability	0
Fair Value, Inputs, Level 3 [Member]
Financial assets:
Cash and cash equivalents	0	0
Certificates of deposit	0	0
Securities available for sale	1,522	1,509
FHLB stock	4,906	4,747
Loans held for sale	3,354
Loans, net	839,084	732,427
Accrued interest receivable	2,525	2,288
Interest rate swap agreements	0	0
Financial liabilities:
Deposits	752,699	716,685
Short-term borrowings	0	0
Long-term debt	0	0
Subordinated debt	9,788	9,691
Accrued interest payable	692	487
Interest rate swap agreements	0	0
Derivative loan commitments	1
Derivative Asset, Fair Value, Gross Liability	4
Reported Value Measurement [Member]
Financial assets:
Cash and cash equivalents	42,094	42,650
Certificates of deposit	100	100
Securities available for sale	29,815	66,770
FHLB stock	4,906	4,747
Loans held for sale	3,354
Loans, net	834,460	737,032
Accrued interest receivable	2,525	2,288
Interest rate swap agreements	3,472	264
Financial liabilities:
Deposits	752,467	717,931
Short-term borrowings	20,000	15,000
Long-term debt	74,196	58,528
Subordinated debt	9,861	9,832
Accrued interest payable	692	487
Interest rate swap agreements	3,472	$ 264
Derivative loan commitments	1
Derivative Asset, Fair Value, Gross Liability	$ 4