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 |