Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Wellesley Bancorp, Inc. | |
Entity Central Index Key | 1,526,952 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | WEBK | |
Entity Common Stock, Shares Outstanding | 2,458,533 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 3,068 | $ 2,674 |
Short-term investments | 21,591 | 25,504 |
Total cash and cash equivalents | 24,659 | 28,178 |
Certificates of deposit | 100 | 100 |
Securities available for sale, at fair value | 67,418 | 62,434 |
Federal Home Loan Bank of Boston stock, at cost | 5,639 | 5,524 |
Loans held for sale | 2,217 | 1,131 |
Loans | 553,844 | 512,419 |
Less allowance for loan losses | (5,307) | (5,112) |
Loans, net | 548,537 | 507,307 |
Bank-owned life insurance | 7,246 | 7,073 |
Premises and equipment, net | 3,976 | 3,468 |
Accrued interest receivable | 1,667 | 1,432 |
Net deferred tax asset | 2,216 | 2,479 |
Other assets | 2,604 | 2,056 |
Total assets | 666,279 | 621,182 |
Deposits: | ||
Noninterest-bearing | 81,508 | 64,638 |
Interest-bearing | 414,324 | 399,100 |
Total deposits | 495,832 | 463,738 |
Short-term borrowings | 24,250 | 20,000 |
Long-term debt | 78,106 | 72,860 |
Subordinated debt | 9,761 | 9,734 |
Accrued expenses and other liabilities | 2,959 | 2,672 |
Total liabilities | 610,908 | 569,004 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 14,000,000 shares authorized, 2,458,553 shares issued and outstanding at September 30, 2016 and December 31, 2015 | 25 | 25 |
Additional paid-in capital | 24,470 | 23,992 |
Retained earnings | 31,355 | 29,411 |
Accumulated other comprehensive income | 837 | 162 |
Unearned compensation - ESOP | (1,316) | (1,412) |
Total stockholders' equity | 55,371 | 52,178 |
Total liabilities and stockholders' equity | $ 666,279 | $ 621,182 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 14,000,000 | 14,000,000 |
Common Stock, Shares, Issued | 2,458,553 | 2,458,553 |
Common Stock, Shares, Outstanding | 2,458,553 | 2,458,553 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest and dividend income: | ||||
Interest and fees on loans and loans held for sale | $ 5,838 | $ 5,342 | $ 17,009 | $ 15,160 |
Debt securities: | ||||
Taxable | 355 | 204 | 1,025 | 685 |
Tax-exempt | 54 | 50 | 161 | 143 |
Short-term investments and certificates of deposit | 17 | 8 | 57 | 24 |
FHLB stock | 48 | 36 | 143 | 68 |
Total interest and dividend income | 6,312 | 5,640 | 18,395 | 16,080 |
Interest expense: | ||||
Deposits | 781 | 722 | 2,320 | 2,007 |
Short-term borrowings | 29 | 24 | 69 | 45 |
Long-term debt | 254 | 223 | 760 | 583 |
Subordinated debt | 159 | 0 | 477 | 0 |
Total interest expense | 1,223 | 969 | 3,626 | 2,635 |
Net interest income | 5,089 | 4,671 | 14,769 | 13,445 |
Provision for loan losses | 125 | 150 | 312 | 300 |
Net interest income, after provision for loan losses | 4,964 | 4,521 | 14,457 | 13,145 |
Noninterest income: | ||||
Customer service fees | 16 | 29 | 74 | 92 |
Mortgage banking activities | 71 | 34 | 218 | 133 |
Gain on sale of securities, net | 0 | 28 | 16 | 28 |
Income on bank-owned life insurance | 58 | 58 | 173 | 173 |
Wealth management fees | 260 | 130 | 709 | 339 |
Miscellaneous | 10 | 11 | 80 | 31 |
Total noninterest income | 415 | 290 | 1,270 | 796 |
Noninterest expense: | ||||
Salaries and employee benefits | 2,439 | 2,126 | 7,119 | 6,588 |
Occupancy and equipment | 770 | 703 | 2,239 | 2,018 |
Data processing | 201 | 162 | 574 | 480 |
FDIC insurance | 122 | 93 | 281 | 279 |
Professional fees | 244 | 182 | 713 | 556 |
Other general and administrative | 385 | 410 | 1,208 | 1,188 |
Total noninterest expense | 4,161 | 3,676 | 12,134 | 11,109 |
Income before income taxes | 1,218 | 1,135 | 3,593 | 2,832 |
Provision for income taxes | 463 | 435 | 1,379 | 1,088 |
Net income | 755 | 700 | 2,214 | 1,744 |
Other comprehensive income (loss): | ||||
Net unrealized holding gains (losses) on available-for-sale securities | (214) | 197 | 1,101 | (51) |
Reclassification adjustment for net gain on sale of securities recognized in noninterest income | 0 | (28) | (16) | (28) |
Income tax benefit (expense) | 77 | (65) | (410) | 29 |
Total other comprehensive income (loss) | (137) | 104 | 675 | (50) |
Comprehensive income | $ 618 | $ 804 | $ 2,889 | $ 1,694 |
Earnings per common share: | ||||
Basic | $ 0.32 | $ 0.3 | $ 0.95 | $ 0.76 |
Diluted | $ 0.32 | $ 0.3 | $ 0.94 | $ 0.75 |
Weighted average shares outstanding: | ||||
Basic | 2,325,356 | 2,313,103 | 2,322,147 | 2,309,894 |
Diluted | 2,364,437 | 2,334,529 | 2,352,110 | 2,326,123 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Unearned Compensation ESOP [Member] |
Balance at Dec. 31, 2014 | $ 49,346 | $ 24 | $ 23,419 | $ 27,027 | $ 417 | $ (1,541) |
Balance (in shares) at Dec. 31, 2014 | 2,459,138 | |||||
Comprehensive income | 1,694 | $ 0 | 0 | 1,744 | (50) | 0 |
Dividends paid to common stockholders | (209) | 0 | 0 | (209) | 0 | 0 |
Share-based compensation- equity incentive plan | 372 | 0 | 372 | 0 | 0 | 0 |
Tax benefit from stock based compensation | 2 | 0 | 2 | 0 | 0 | 0 |
ESOP shares committed to be allocated | 185 | 0 | 88 | 0 | 0 | 97 |
Balance at Sep. 30, 2015 | 51,390 | $ 24 | 23,881 | 28,562 | 367 | (1,444) |
Balance (in shares) at Sep. 30, 2015 | 2,459,138 | |||||
Balance at Dec. 31, 2015 | 52,178 | $ 25 | 23,992 | 29,411 | 162 | (1,412) |
Balance (in shares) at Dec. 31, 2015 | 2,458,553 | |||||
Comprehensive income | 2,889 | $ 0 | 0 | 2,214 | 675 | 0 |
Dividends paid to common stockholders | (270) | 0 | 0 | (270) | 0 | 0 |
Share-based compensation- equity incentive plan | 381 | 0 | 381 | 0 | 0 | 0 |
Tax benefit from stock based compensation | 2 | 0 | 2 | 0 | 0 | 0 |
ESOP shares committed to be allocated | 191 | 0 | 95 | 0 | 0 | 96 |
Balance at Sep. 30, 2016 | $ 55,371 | $ 25 | $ 24,470 | $ 31,355 | $ 837 | $ (1,316) |
Balance (in shares) at Sep. 30, 2016 | 2,458,553 |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Parenthetical] | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Dividends paid to common stockholders, per share | $ / shares | $ 0.11 |
ESOP shares committed to be allocated, Shares | shares | 9,629 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 2,214 | $ 1,744 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 312 | 300 |
Depreciation and amortization | 555 | 488 |
Net amortization of securities | 226 | 194 |
Gain on sale of securities, net | (16) | (28) |
Principal amount of loans sold | 21,453 | 18,874 |
Loans originated for sale | (22,539) | (18,471) |
Accretion of net deferred loan fees | (418) | (278) |
Amortization of subordinated debt issuance costs | 27 | 0 |
Income on bank-owned life insurance | (173) | (173) |
Deferred income tax benefit | (147) | (195) |
ESOP expense | 191 | 185 |
Share-based compensation | 381 | 372 |
Net change in other assets and liabilities | (496) | 50 |
Net cash provided by operating activities | 1,570 | 3,062 |
Activity in securities available for sale: | ||
Maturities, prepayments and calls | 12,559 | 16,229 |
Purchases | (17,756) | (15,827) |
Proceeds from sales of securities, net | 1,088 | 1,861 |
Purchase of Federal Home Loan Bank stock | (115) | (1,545) |
Loan originations, net of principal payments | (41,124) | (58,711) |
Additions to premises and equipment | (1,063) | (169) |
Net cash used by investing activities | (46,411) | (58,162) |
Cash flows from financing activities: | ||
Net increase in deposits | 32,094 | 30,472 |
Proceeds from long-term debt | 17,585 | 15,500 |
Repayments of long-term debt | (12,339) | (8,055) |
Increase in short-term borrowings | 4,250 | 14,000 |
Excess tax benefits from share-based compensation | 2 | 2 |
Cash dividends paid on common stock | (270) | (209) |
Net cash provided by financing activities | 41,322 | 51,710 |
Net change in cash and cash equivalents | (3,519) | (3,390) |
Cash and cash equivalents at beginning period | 28,178 | 19,271 |
Cash and cash equivalents at end of period | 24,659 | 15,881 |
Supplementary information: | ||
Interest paid | 3,134 | 2,615 |
Income taxes paid | $ 1,210 | $ 943 |
BASIS OF PRESENTATION AND CONSO
BASIS OF PRESENTATION AND CONSOLIDATION | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting [Text Block] | NOTE 1 BASIS OF PRESENTATION AND CONSOLIDATION The accompanying unaudited interim consolidated financial statements include the accounts of Wellesley Bancorp, Inc. (the “Company”) and its wholly-owned subsidiary, Wellesley Bank (the “Bank”), the principal operating entity, and its wholly-owned subsidiaries: Wellesley Securities Corporation, which engages in the business of buying, selling and dealing in securities exclusively on its own behalf; Wellesley Investment Partners, LLC, formed to provide investment management services for individuals, not-for-profit entities and businesses; and Central Linden, LLC, to hold, manage and sell foreclosed real estate. All significant intercompany balances and transactions have been eliminated in consolidation. Assets under management at Wellesley Investment Partners, LLC are not included in these consolidated financial statements because they are not assets of the Company. These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2015 Annual Report on Form 10-K. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or for any other period. |
LOAN POLICIES
LOAN POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Loan Portfolio [Text Block] | NOTE 2 The loan portfolio consists of real estate, commercial and other loans to the Company’s customers in our primary market areas in eastern Massachusetts. The ability of the Company’s debtors to honor their contracts is dependent upon the economy in general and the real estate and construction sectors within our markets. Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred loan origination fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Interest is generally not accrued on loans 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 have occurred. Loan losses are charged against the allowance when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components. General component The general component is based on the following loan segments: residential real estate, commercial real estate, construction, commercial, home equity lines of credit and other consumer. Management considers a rolling average of historical losses for each segment based on a time frame appropriate to capture relevant loss data for each loan segment, generally three and 10 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 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 primarily include speculative construction loans primarily on residential properties for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Residential construction loans in this segment also include loans to build one-to-four family owner-occupied properties which are subject to the same credit quality factors as residential real estate. Commercial Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Home equity lines of credit Loans in this segment are collateralized by one-to-four family residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Other consumer Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the loan or, if the loan is collateral dependent, by the fair value of the collateral, less estimated costs to sell. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify performing individual residential and consumer loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are initially classified as impaired. Unallocated component An unallocated component is maintained to cover additional uncertainties in management’s estimation of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 3 COMPREHENSIVE INCOME Accounting principles generally require that recognized revenue, expenses, and gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income/loss. September 30, December 31, 2016 2015 (In thousands) Unrealized holding gains on securities available for sale $ 1,335 $ 250 Tax effect (498) (88) Net-of tax amount $ 837 $ 162 |
RECENT ACCOUNTING AND REGULATOR
RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 4 RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS In May 2014, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842 In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718). In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326, |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 5 SECURITIES AVAILABLE FOR SALE September 30, 2016 Amortized Gross Gross Fair (In thousands) Residential mortgage-backed securities: Government National Mortgage Association $ 4,055 $ 90 $ (25) $ 4,120 Government-sponsored enterprises 13,619 409 (2) 14,026 SBA and other asset-backed securities 12,834 323 (38) 13,119 State and municipal bonds 8,379 319 (3) 8,695 Government-sponsored enterprise obligations 8,999 3 (9) 8,993 Corporate bonds 18,197 284 (16) 18,465 $ 66,083 $ 1,428 $ (93) $ 67,418 December 31, 2015 Amortized Gross Gross Fair (In thousands) Residential mortgage-backed securities: Government National Mortgage Association $ 4,563 $ 81 $ (20) $ 4,624 Government-sponsored enterprises 11,984 148 (55) 12,077 SBA and other asset-backed securities 11,680 142 (66) 11,756 State and municipal bonds 7,231 186 (8) 7,409 Government-sponsored enterprise obligations 10,002 2 (91) 9,913 Corporate bonds 16,724 13 (82) 16,655 $ 62,184 $ 572 $ (322) $ 62,434 Amortized Fair (In thousands) Within 1 year $ 10,102 $ 10,102 After 1 year to 5 years 13,222 13,458 After 5 years to 10 years 11,309 11,629 After 10 years 942 964 35,575 36,153 Mortgage- and asset-backed securities 30,508 31,265 $ 66,083 $ 67,418 For the three months ended September 30, 2016, proceeds from sales of available-for-sale securities amounted to $ 995 1.1 16 For the three and nine months ended September 30, 2015, proceeds from sales of available-for-sale securities amounted to $ 1.9 37 9 Less Than Twelve Months Over Twelve Months Gross Fair Gross Fair (In thousands) September 30, 2016 Residential mortgage-backed securities: Government National Mortgage Association $ $ $ (25) $ 846 Government-sponsored enterprises (2) 608 SBA and other asset-backed securities (38) 2,493 State and municipal bonds (1) 234 (2) 396 Government-sponsored enterprise obligations (9) 2,990 Corporate bonds (11) 1,018 (5) 992 $ (21) $ 4,242 $ (72) $ 5,335 December 31, 2015 Residential mortgage-backed securities: Government National Mortgage Association $ (6) $ 923 $ (14) $ 857 Government-sponsored enterprises (28) 4,170 (27) 694 SBA and other asset-backed securities (26) 2,622 (40) 768 State and municipal bonds (6) 930 (2) 100 Government-sponsored enterprise obligations (91) 8,162 Corporate bonds (63) 10,292 (19) 1,695 $ (220) $ 27,099 $ (102) $ 4,114 Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluations. At September 30, 2016, various debt securities have unrealized losses with aggregate depreciation of 1.0 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2016 | |
Notes and Loans Payable, Current [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 6 LOANS AND ALLOWANCE FOR LOAN LOSSES September 30, December 31, 2016 2015 (In thousands) Real estate loans: Residential fixed $ 18,221 $ 18,414 Residential variable 248,064 238,056 Commercial 112,790 103,106 Construction 103,250 94,886 482,325 454,462 Commercial loans: Secured 37,475 23,557 Unsecured 223 124 37,698 23,681 Consumer loans: Home equity lines of credit 33,561 34,083 Other 221 256 33,782 34,339 Total loans 553,805 512,482 Less: Allowance for loan losses (5,307) (5,112) Net deferred origination costs (fees) 39 (63) Loans, net $ 548,537 $ 507,307 Residential Commercial Construction Commercial Home Other Unallocated Total (In thousands) Three Months Ended September 30, 2016 Allowance at June 30, 2016 $ 1,373 $ 1,036 $ 1,704 $ 643 $ 249 $ 3 $ 178 $ 5,186 Provision (credit) for loan losses 46 30 (8) 92 3 (38) 125 Loans charged off (4) (4) Allowance at September 30, 2016 $ 1,415 $ 1,066 $ 1,696 $ 735 $ 252 $ 3 $ 140 $ 5,307 Three Months Ended September 30, 2015 Allowance at June 30, 2015 $ 1,557 $ 1,074 $ 1,295 $ 461 $ 223 $ 4 $ 202 $ 4,816 Provision (credit) for loan losses (29) (37) 188 9 (3) (1) 23 150 Allowance at September 30, 2015 $ 1,528 $ 1,037 $ 1,483 $ 470 $ 220 $ 3 $ 225 $ 4,966 Nine Months Ended September 30, 2016 Allowance at December 31, 2015 $ 1,490 $ 1,025 $ 1,684 $ 509 $ 238 $ 2 $ 164 $ 5,112 Provision (credit) for loan losses 31 41 12 226 25 1 (24) 312 Loans charged off (106) (11) (117) Allowance at September 30, 2016 $ 1,415 $ 1,066 $ 1,696 $ 735 $ 252 $ 3 $ 140 $ 5,307 Nine Months Ended September 30, 2015 Allowance at December 31, 2014 $ 1,710 $ 1,056 $ 1,273 $ 428 $ 224 $ 4 $ 43 $ 4,738 Provision (credit) for loan losses (165) 36 210 42 (4) (1) 182 300 Loans charged off (17) (55) (72) Allowance at September 30, 2015 $ 1,528 $ 1,037 $ 1,483 $ 470 $ 220 $ 3 $ 225 $ 4,966 Residential Commercial Construction Commercial Home Other Unallocated Total (In thousands) September 30, 2016 Allowance related to impaired loans $ $ $ $ $ $ $ $ Allowance related to non-impaired loans 1,415 1,066 1,696 735 252 3 140 5,307 Total allowance $ 1,415 $ 1,066 $ 1,696 $ 735 $ 252 $ 3 $ 140 $ 5,307 Impaired loan balances $ 180 $ 601 $ $ 3 $ $ $ $ 784 Non-impaired loan balances 266,105 112,189 103,250 37,695 33,561 221 553,021 Total loans $ 266,285 $ 112,790 $ 103,250 $ 37,698 $ 33,561 $ 221 $ $ 553,805 December 31, 2015 Allowance related to impaired loans $ $ $ $ $ $ $ $ Allowance related to non-impaired loans 1,490 1,025 1,684 509 238 2 164 5,112 Total allowance $ 1,490 $ 1,025 $ 1,684 $ 509 $ 238 $ 2 $ 164 $ 5,112 Impaired loan balances $ 959 $ 645 $ $ 11 $ 34 $ $ $ 1,649 Non-impaired loan balances 255,511 102,461 94,886 23,670 34,049 256 510,833 Total loans $ 256,470 $ 103,106 $ 94,886 $ 23,681 $ 34,083 $ 256 $ $ 512,482 30-59 60-89 Days Past Due 90 Total Past Due 90 Non-accrual (In thousands) September 30, 2016 Residential real estate $ 1,015 $ $ $ 1,015 $ $ Commercial real estate 601 601 601 Commercial 3 Home equity lines of credit 93 93 Total $ 1,108 $ $ 601 $ 1,709 $ $ 604 December 31, 2015 Residential real estate $ 101 $ $ 672 $ 773 $ $ 773 Commercial real estate 645 645 645 Commercial 11 Home equity lines of credit 34 Total $ 101 $ $ 1,317 $ 1,418 $ $ 1,463 September 30, 2016 December 31, 2015 Recorded Unpaid Recorded Unpaid (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 180 $ 198 $ 959 $ 976 Commercial real estate 601 656 645 700 Commercial 3 3 11 11 Home equity lines of credit 34 34 Total impaired loans without a valuation allowance 784 857 1,649 1,721 Total impaired loans $ 784 $ 857 $ 1,649 $ 1 ,721 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Average Interest Interest Average Interest Interest (In thousands) Residential real estate $ 285 $ 2 $ $ 394 $ 13 $ 8 Commercial real estate 610 625 Commercial 5 8 Home equity lines of credit 12 19 1 1 Total $ 912 $ 2 $ $ 1,046 $ 14 $ 9 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Average Interest Interest Average Interest Interest (In thousands) Residential real estate $ 1,214 $ 14 $ 11 $ 1,235 $ 52 $ 48 Commercial real estate 2,979 51 28 3,149 141 103 Commercial 16 18 1 1 Home equity lines of credit 118 1 1 135 3 3 Total $ 4,327 $ 66 $ 40 $ 4,537 $ 197 $ 155 No additional funds are committed to be advanced in connection with impaired loans. There were no new TDRs recorded during the three and nine months ended September 30, 2016. The Company recorded TDRs totaling $ 187 There were no TDRs that defaulted during the three and nine months ended September 30, 2016 and 2015, and for which default was within one year of the restructure date. Generally TDR loans are considered to be in default at 90 days past due. 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 or “loss” and of such little value that their continuance as loans is not warranted. Loans rated 9: Loans in this category only include commercial loans under $ 25 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 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. September 30, 2016 December 31, 2015 Commercial Construction Commercial Total Commercial Construction Commercial Total (In thousands) Loans rated 1 -4 $ 107,214 $ 103,250 $ 35,697 $ 246,161 $ 95,603 $ 94,886 $ 22,685 $ 213,174 Loans rated 5 4,975 1,998 6,973 6,858 985 7,843 Loans rated 6 3 3 11 11 Loans rated 7 601 601 645 645 Total $ 112,790 $ 103,250 $ 37,698 $ 253,738 $ 103,106 $ 94,886 $ 23,681 $ 221,673 |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Financial Liabilities Fair Value Disclosure [Abstract] | |
Financial Instruments Disclosure [Text Block] | NOTE 7 FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value hierarchy The Company groups its assets generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 Valuation is based on quoted market prices in active exchange markets for identical assets and liabilities. Valuations are obtained from readily available pricing sources. Level 2 Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities. Valuations are obtained from readily available pricing sources. Level 3 Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as those for which the determination of fair value requires significant management judgment or estimation. Transfers between levels are recognized at the end of a reporting period, if applicable. Determination of fair value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The following methods and assumptions were used by the Company in estimating fair value disclosures: Cash, cash equivalents and certificates of deposit Securities available for sale Federal Home Loan Bank (“FHLB”) stock Loans held for sale Loans, net Deposits Short-term borrowings Long-term debt Subordinated debt Accrued interest Forward loan sale commitments and derivative loan commitments Off-balance sheet instruments Assets measured at fair value on a recurring basis September 30, 2016 Level 1 Level 2 Level 3 Total (In thousands) Assets Securities available for sale $ $ 67,418 $ $ 67,418 Forward loan sale commitments 20 20 Total assets $ $ 67,438 $ $ 67,438 December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets Securities available for sale $ $ 62,434 $ $ 62,434 Derivative loan commitments 2 2 Forward loan sale commitments 23 23 Total assets $ $ 62,459 $ $ 62,459 There were no liabilities measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015. Assets measured at fair value on a non-recurring basis The Company may also be required, from time to time, to measure certain other financial assets at fair value on a non-recurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market (“LOCOM”) accounting or write-downs of individual assets. September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Loans held for sale $ $ $ 2,217 $ $ $ 1,131 Impaired loans 781 185 $ $ $ 2,998 $ $ $ 1,316 Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Loans held for sale $ (18) $ (25) $ (18) $ (25) Impaired loans (4) (118) (72) $ (22) $ (25) $ (136) $ (97) Loans held for sale (“LHFS”) are evaluated for losses associated with the application of LOCOM accounting. At September 30, 2016, a rise in market interest rates above contractual loan rates from the time LHFS were recorded is reflected as a reduction in the carrying value of the asset and a loss is recognized in current period earnings. Losses applicable to certain impaired loans are estimated using the appraised value of the underlying collateral considering discounting factors and adjusted for selling costs. The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the overall adequacy of the allowance for loan losses. Adjustments to the estimated fair value of impaired loans may result in increases or decreases to the provision for loan losses. There are no liabilities measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015 . Summary of fair values of financial instruments The estimated fair values and related carrying amounts of the Company’s financial instruments are outlined in the table below. Certain financial instruments and all nonfinancial instruments are excluded from disclosure requirements. Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In thousands) September 30, 2016 Financial assets: Cash and cash equivalents $ 24,659 $ 24,659 $ $ $ 24,659 Certificates of deposit 100 100 100 Securities available for sale 67,418 67,418 67,418 FHLB stock 5,639 5,639 5,639 Loans held for sale 2,217 2,217 2,217 Loans, net 548,537 557,177 557,177 Accrued interest receivable 1,667 1,667 1,667 Forward loan sale commitments 20 20 20 Financial liabilities: Deposits $ 495,832 $ $ $ 496,729 $ 496,729 FHLB borrowings 102,356 102,900 102,900 Subordinated debt 9,761 9,761 9,761 Accrued interest payable 106 106 106 December 31, 2015 Financial assets: Cash and cash equivalents $ 28,178 $ 28,178 $ $ $ 28,178 Certificates of deposit 100 100 100 Securities available for sale 62,434 62,434 62,434 FHLB stock 5,524 5,524 5,524 Loans held for sale 1,131 1,131 1,131 Loans, net 507,307 503,854 503,854 Accrued interest receivable 1,432 1,432 1,432 Derivative loan commitments 2 2 2 Forward loan sale commitments 23 23 23 Financial liabilities: Deposits $ 463,738 $ $ $ 464,157 $ 464,157 FHLB borrowings 92,860 92,665 92,664 Subordinated debt 9,734 9,734 9,734 Accrued interest payable 93 93 93 |
EMPLOYEE STOCK OWNERSHIP PLAN
EMPLOYEE STOCK OWNERSHIP PLAN | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 8 EMPLOYEE STOCK OWNERSHIP PLAN The Bank maintains an Employee Stock Ownership Plan (the “ESOP”) to provide eligible employees the opportunity to own Company stock. This plan is a tax-qualified retirement plan for the benefit of all Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The Company granted a loan to the ESOP for the purchase shares of the Company’s common stock on the closing date of the Company’s mutual to stock conversion in 2012. As of September 30, 2016, the ESOP held 186,338 7.58 15 3.25 Allocated 45,117 Committed to be allocated 9,629 Unallocated 131,592 186,338 The fair value of unallocated shares was $ 2.9 Total compensation expense recognized in connection with the ESOP for the three and nine month periods ended September 30, 2016 was $ 68 191 |
EQUITY INCENTIVE PLANS
EQUITY INCENTIVE PLANS | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 9 EQUITY INCENTIVE PLANS Under the Company’s 2016 Equity Incentive Plan (the “2016 Equity Incentive Plan”), effective July 27, 2016, the Company may grant restricted stock awards to its employees and directors for up to 75,000 . On October 1, 2016, the Board of Directors granted stock awards of 26,000 to certain management, employees, and directors. The fair value of the stock awards, based on the market price on October 3, 2016, will be recorded as unearned compensation, and will be amortized over the vesting period. Under the Company’s 2012 Equity Incentive Plan (the “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 10 20 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 Options Number of Weighted Weighted Aggregate (In thousands) (In years) (In thousands) Outstanding at January 1, 2016 225 $ 16.01 7.16 $ 968 Granted Exercised Forfeited Outstanding at September 30, 2016 225 $ 16.01 6.41 $ 1,332 Options exercisable at September 30, 2016 119 $ 15.55 6.11 $ 758 For the three months ended September 30, 2016 and 2015, compensation expense applicable to the stock options was $ 53 51 10 For the nine months ended September 30, 2016 and 2015, compensation expense applicable to the stock options was $ 159 149 28 Unrecognized compensation expense for non-vested stock options totaled $ 292 1.41 Stock Awards There was no activity in non-vested restricted stock awards under the 2016 Equity Incentive Plan or the 2012 Equity Incentive Plan for the nine months ended September 30, 2016. For the three months ended September 30, 2016 and 2015, compensation expense applicable to the stock awards was $ 74 71 30 28 For the nine months ended September 30, 2016 and 2015, compensation expense applicable to the stock awards was $ 222 223 89 Unrecognized compensation expense for non-vested restricted stock totaled $ 421 1.64 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 10 EARNINGS PER COMMON 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 reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Under the Company’s 2012 and 2016 Equity Incentive Plans, stock awards contain non-forfeitable dividend rights. Accordingly, these shares are considered outstanding for computation of basic earnings per share. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (Dollars in thousands, except per share data) Net income applicable to common stock $ 755 $ 700 $ 2,214 $ 1,744 Average number of common shares issued 2,458,553 2,459,138 2,458,553 2,459,138 Less: Average unallocated ESOP shares (133,197) (146,035) (136,406) (149,244) Average number of common shares outstanding used to calculate basic earnings per common share 2,325,356 2,313,103 2,322,147 2,309,894 Effect of dilutive stock options 39,081 21,426 29,963 16,229 Average number of common shares outstanding used to calculate diluted earnings per share 2,364,437 2,334,529 2,352,110 2,326,123 Earnings per common share: Basic $ 0.32 $ 0.30 $ 0.95 $ 0.76 Diluted $ 0.32 $ 0.30 $ 0.94 $ 0.75 Options for 37,000 31,400 |
DIVIDENDS DECLARED
DIVIDENDS DECLARED | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Dividend Disclosure [Text Block] | NOTE 11 DIVIDENDS DECLARED On August 17, 2016 0.04 September 7, 2016 |
LOAN POLICIES (Policies)
LOAN POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | LOAN POLICIES The loan portfolio consists of real estate, commercial and other loans to the Company’s customers in our primary market areas in eastern Massachusetts. The ability of the Company’s debtors to honor their contracts is dependent upon the economy in general and the real estate and construction sectors within our markets. Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred loan origination fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Interest is generally not accrued on loans 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 have occurred. Loan losses are charged against the allowance when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components. General component The general component is based on the following loan segments: residential real estate, commercial real estate, construction, commercial, home equity lines of credit and other consumer. Management considers a rolling average of historical losses for each segment based on a time frame appropriate to capture relevant loss data for each loan segment, generally three and 10 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 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 primarily include speculative construction loans primarily on residential properties for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Residential construction loans in this segment also include loans to build one-to-four family owner-occupied properties which are subject to the same credit quality factors as residential real estate. Commercial Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Home equity lines of credit Loans in this segment are collateralized by one-to-four family residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Other consumer Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the loan or, if the loan is collateral dependent, by the fair value of the collateral, less estimated costs to sell. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify performing individual residential and consumer loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are initially classified as impaired. Unallocated component An unallocated component is maintained to cover additional uncertainties in management’s estimation of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive income and related tax effects are as follows: September 30, December 31, 2016 2015 (In thousands) Unrealized holding gains on securities available for sale $ 1,335 $ 250 Tax effect (498) (88) Net-of tax amount $ 837 $ 162 |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities [Table Text Block] | The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows: September 30, 2016 Amortized Gross Gross Fair (In thousands) Residential mortgage-backed securities: Government National Mortgage Association $ 4,055 $ 90 $ (25) $ 4,120 Government-sponsored enterprises 13,619 409 (2) 14,026 SBA and other asset-backed securities 12,834 323 (38) 13,119 State and municipal bonds 8,379 319 (3) 8,695 Government-sponsored enterprise obligations 8,999 3 (9) 8,993 Corporate bonds 18,197 284 (16) 18,465 $ 66,083 $ 1,428 $ (93) $ 67,418 December 31, 2015 Amortized Gross Gross Fair (In thousands) Residential mortgage-backed securities: Government National Mortgage Association $ 4,563 $ 81 $ (20) $ 4,624 Government-sponsored enterprises 11,984 148 (55) 12,077 SBA and other asset-backed securities 11,680 142 (66) 11,756 State and municipal bonds 7,231 186 (8) 7,409 Government-sponsored enterprise obligations 10,002 2 (91) 9,913 Corporate bonds 16,724 13 (82) 16,655 $ 62,184 $ 572 $ (322) $ 62,434 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of debt securities by contractual maturity at September 30, 2016 are as follows. Expected maturities may differ from contractual maturities because the issuer, in certain instances, has the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair (In thousands) Within 1 year $ 10,102 $ 10,102 After 1 year to 5 years 13,222 13,458 After 5 years to 10 years 11,309 11,629 After 10 years 942 964 35,575 36,153 Mortgage- and asset-backed securities 30,508 31,265 $ 66,083 $ 67,418 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than Twelve Months Over Twelve Months Gross Fair Gross Fair (In thousands) September 30, 2016 Residential mortgage-backed securities: Government National Mortgage Association $ $ $ (25) $ 846 Government-sponsored enterprises (2) 608 SBA and other asset-backed securities (38) 2,493 State and municipal bonds (1) 234 (2) 396 Government-sponsored enterprise obligations (9) 2,990 Corporate bonds (11) 1,018 (5) 992 $ (21) $ 4,242 $ (72) $ 5,335 December 31, 2015 Residential mortgage-backed securities: Government National Mortgage Association $ (6) $ 923 $ (14) $ 857 Government-sponsored enterprises (28) 4,170 (27) 694 SBA and other asset-backed securities (26) 2,622 (40) 768 State and municipal bonds (6) 930 (2) 100 Government-sponsored enterprise obligations (91) 8,162 Corporate bonds (63) 10,292 (19) 1,695 $ (220) $ 27,099 $ (102) $ 4,114 |
LOANS AND ALLOWANCE FOR LOAN 22
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes and Loans Payable, Current [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | A summary of the ending balances of loans is as follows: September 30, December 31, 2016 2015 (In thousands) Real estate loans: Residential fixed $ 18,221 $ 18,414 Residential variable 248,064 238,056 Commercial 112,790 103,106 Construction 103,250 94,886 482,325 454,462 Commercial loans: Secured 37,475 23,557 Unsecured 223 124 37,698 23,681 Consumer loans: Home equity lines of credit 33,561 34,083 Other 221 256 33,782 34,339 Total loans 553,805 512,482 Less: Allowance for loan losses (5,307) (5,112) Net deferred origination costs (fees) 39 (63) Loans, net $ 548,537 $ 507,307 |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block] | The following table summarizes the changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2016 and 2015: Residential Commercial Construction Commercial Home Other Unallocated Total (In thousands) Three Months Ended September 30, 2016 Allowance at June 30, 2016 $ 1,373 $ 1,036 $ 1,704 $ 643 $ 249 $ 3 $ 178 $ 5,186 Provision (credit) for loan losses 46 30 (8) 92 3 (38) 125 Loans charged off (4) (4) Allowance at September 30, 2016 $ 1,415 $ 1,066 $ 1,696 $ 735 $ 252 $ 3 $ 140 $ 5,307 Three Months Ended September 30, 2015 Allowance at June 30, 2015 $ 1,557 $ 1,074 $ 1,295 $ 461 $ 223 $ 4 $ 202 $ 4,816 Provision (credit) for loan losses (29) (37) 188 9 (3) (1) 23 150 Allowance at September 30, 2015 $ 1,528 $ 1,037 $ 1,483 $ 470 $ 220 $ 3 $ 225 $ 4,966 Nine Months Ended September 30, 2016 Allowance at December 31, 2015 $ 1,490 $ 1,025 $ 1,684 $ 509 $ 238 $ 2 $ 164 $ 5,112 Provision (credit) for loan losses 31 41 12 226 25 1 (24) 312 Loans charged off (106) (11) (117) Allowance at September 30, 2016 $ 1,415 $ 1,066 $ 1,696 $ 735 $ 252 $ 3 $ 140 $ 5,307 Nine Months Ended September 30, 2015 Allowance at December 31, 2014 $ 1,710 $ 1,056 $ 1,273 $ 428 $ 224 $ 4 $ 43 $ 4,738 Provision (credit) for loan losses (165) 36 210 42 (4) (1) 182 300 Loans charged off (17) (55) (72) Allowance at September 30, 2015 $ 1,528 $ 1,037 $ 1,483 $ 470 $ 220 $ 3 $ 225 $ 4,966 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Additional information pertaining to the allowance for loan losses at September 30, 2016 and December 31, 2015 is as follows: Residential Commercial Construction Commercial Home Other Unallocated Total (In thousands) September 30, 2016 Allowance related to impaired loans $ $ $ $ $ $ $ $ Allowance related to non-impaired loans 1,415 1,066 1,696 735 252 3 140 5,307 Total allowance $ 1,415 $ 1,066 $ 1,696 $ 735 $ 252 $ 3 $ 140 $ 5,307 Impaired loan balances $ 180 $ 601 $ $ 3 $ $ $ $ 784 Non-impaired loan balances 266,105 112,189 103,250 37,695 33,561 221 553,021 Total loans $ 266,285 $ 112,790 $ 103,250 $ 37,698 $ 33,561 $ 221 $ $ 553,805 December 31, 2015 Allowance related to impaired loans $ $ $ $ $ $ $ $ Allowance related to non-impaired loans 1,490 1,025 1,684 509 238 2 164 5,112 Total allowance $ 1,490 $ 1,025 $ 1,684 $ 509 $ 238 $ 2 $ 164 $ 5,112 Impaired loan balances $ 959 $ 645 $ $ 11 $ 34 $ $ $ 1,649 Non-impaired loan balances 255,511 102,461 94,886 23,670 34,049 256 510,833 Total loans $ 256,470 $ 103,106 $ 94,886 $ 23,681 $ 34,083 $ 256 $ $ 512,482 |
Past Due Financing Receivables [Table Text Block] | The following is a summary of past due and non-accrual loans at September 30, 2016 and December 31, 2015: 30-59 60-89 Days Past Due 90 Total Past Due 90 Non-accrual (In thousands) September 30, 2016 Residential real estate $ 1,015 $ $ $ 1,015 $ $ Commercial real estate 601 601 601 Commercial 3 Home equity lines of credit 93 93 Total $ 1,108 $ $ 601 $ 1,709 $ $ 604 December 31, 2015 Residential real estate $ 101 $ $ 672 $ 773 $ $ 773 Commercial real estate 645 645 645 Commercial 11 Home equity lines of credit 34 Total $ 101 $ $ 1,317 $ 1,418 $ $ 1,463 |
Impaired Financing Receivables [Table Text Block] | The following is a summary of impaired loans at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Recorded Unpaid Recorded Unpaid (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 180 $ 198 $ 959 $ 976 Commercial real estate 601 656 645 700 Commercial 3 3 11 11 Home equity lines of credit 34 34 Total impaired loans without a valuation allowance 784 857 1,649 1,721 Total impaired loans $ 784 $ 857 $ 1,649 $ 1 ,721 |
Impaired Financing Receivables By Class Of Loans [Table Text Block] | Additional information pertaining to impaired loans follows: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Average Interest Interest Average Interest Interest (In thousands) Residential real estate $ 285 $ 2 $ $ 394 $ 13 $ 8 Commercial real estate 610 625 Commercial 5 8 Home equity lines of credit 12 19 1 1 Total $ 912 $ 2 $ $ 1,046 $ 14 $ 9 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Average Interest Interest Average Interest Interest (In thousands) Residential real estate $ 1,214 $ 14 $ 11 $ 1,235 $ 52 $ 48 Commercial real estate 2,979 51 28 3,149 141 103 Commercial 16 18 1 1 Home equity lines of credit 118 1 1 135 3 3 Total $ 4,327 $ 66 $ 40 $ 4,537 $ 197 $ 155 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table presents the Company’s loans by risk rating: September 30, 2016 December 31, 2015 Commercial Construction Commercial Total Commercial Construction Commercial Total (In thousands) Loans rated 1 -4 $ 107,214 $ 103,250 $ 35,697 $ 246,161 $ 95,603 $ 94,886 $ 22,685 $ 213,174 Loans rated 5 4,975 1,998 6,973 6,858 985 7,843 Loans rated 6 3 3 11 11 Loans rated 7 601 601 645 645 Total $ 112,790 $ 103,250 $ 37,698 $ 253,738 $ 103,106 $ 94,886 $ 23,681 $ 221,673 |
FAIR VALUES OF FINANCIAL INST23
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Financial Liabilities Fair Value Disclosure [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015 are summarized below. September 30, 2016 Level 1 Level 2 Level 3 Total (In thousands) Assets Securities available for sale $ $ 67,418 $ $ 67,418 Forward loan sale commitments 20 20 Total assets $ $ 67,438 $ $ 67,438 December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets Securities available for sale $ $ 62,434 $ $ 62,434 Derivative loan commitments 2 2 Forward loan sale commitments 23 23 Total assets $ $ 62,459 $ $ 62,459 |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Loans held for sale $ $ $ 2,217 $ $ $ 1,131 Impaired loans 781 185 $ $ $ 2,998 $ $ $ 1,316 |
Gain Loss On Assets And Liabilities Measured At Fair Value On Nonrecurring Basis [Table Text Block] | The following table presents the total losses on loans held for sale and impaired loans for the three and nine month periods ended September 30, 2016 and 2015. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Loans held for sale $ (18) $ (25) $ (18) $ (25) Impaired loans (4) (118) (72) $ (22) $ (25) $ (136) $ (97) |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In thousands) September 30, 2016 Financial assets: Cash and cash equivalents $ 24,659 $ 24,659 $ $ $ 24,659 Certificates of deposit 100 100 100 Securities available for sale 67,418 67,418 67,418 FHLB stock 5,639 5,639 5,639 Loans held for sale 2,217 2,217 2,217 Loans, net 548,537 557,177 557,177 Accrued interest receivable 1,667 1,667 1,667 Forward loan sale commitments 20 20 20 Financial liabilities: Deposits $ 495,832 $ $ $ 496,729 $ 496,729 FHLB borrowings 102,356 102,900 102,900 Subordinated debt 9,761 9,761 9,761 Accrued interest payable 106 106 106 December 31, 2015 Financial assets: Cash and cash equivalents $ 28,178 $ 28,178 $ $ $ 28,178 Certificates of deposit 100 100 100 Securities available for sale 62,434 62,434 62,434 FHLB stock 5,524 5,524 5,524 Loans held for sale 1,131 1,131 1,131 Loans, net 507,307 503,854 503,854 Accrued interest receivable 1,432 1,432 1,432 Derivative loan commitments 2 2 2 Forward loan sale commitments 23 23 23 Financial liabilities: Deposits $ 463,738 $ $ $ 464,157 $ 464,157 FHLB borrowings 92,860 92,665 92,664 Subordinated debt 9,734 9,734 9,734 Accrued interest payable 93 93 93 |
EMPLOYEE STOCK OWNERSHIP PLAN (
EMPLOYEE STOCK OWNERSHIP PLAN (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Ownership Plan ESOP Status Of Entity Shares Held [Table Text Block] | Shares held by the ESOP at September 30, 2016 include the following: Allocated 45,117 Committed to be allocated 9,629 Unallocated 131,592 186,338 |
EQUITY INCENTIVE PLANS (Tables)
EQUITY INCENTIVE PLANS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of option activity under the 2012 Equity Incentive Plan for the nine months ended September 30, 2016 is presented below: Options Number of Weighted Weighted Aggregate (In thousands) (In years) (In thousands) Outstanding at January 1, 2016 225 $ 16.01 7.16 $ 968 Granted Exercised Forfeited Outstanding at September 30, 2016 225 $ 16.01 6.41 $ 1,332 Options exercisable at September 30, 2016 119 $ 15.55 6.11 $ 758 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per common share have been computed as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (Dollars in thousands, except per share data) Net income applicable to common stock $ 755 $ 700 $ 2,214 $ 1,744 Average number of common shares issued 2,458,553 2,459,138 2,458,553 2,459,138 Less: Average unallocated ESOP shares (133,197) (146,035) (136,406) (149,244) Average number of common shares outstanding used to calculate basic earnings per common share 2,325,356 2,313,103 2,322,147 2,309,894 Effect of dilutive stock options 39,081 21,426 29,963 16,229 Average number of common shares outstanding used to calculate diluted earnings per share 2,364,437 2,334,529 2,352,110 2,326,123 Earnings per common share: Basic $ 0.32 $ 0.30 $ 0.95 $ 0.76 Diluted $ 0.32 $ 0.30 $ 0.94 $ 0.75 |
LOAN POLICIES (Details Textual)
LOAN POLICIES (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loan Payments Delinquency Period Beyond Which Loan Is Considered Non Accruals | 90 days |
Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Time Period To Capture Relevant Loan Loss Data | 3 years |
Maximum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Time Period To Capture Relevant Loan Loss Data | 10 years |
Residential Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loan To Value Ratio | 80.00% |
COMPREHENSIVE INCOME (Details)
COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized holding gains on securities available for sale | $ 1,335 | $ 250 |
Tax effect | (498) | (88) |
Net-of tax amount | $ 837 | $ 162 |
SECURITIES AVAILABLE FOR SALE29
SECURITIES AVAILABLE FOR SALE (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 66,083 | $ 62,184 |
Gross Unrealized Gains | 1,428 | 572 |
Gross Unrealized Losses | (93) | (322) |
Fair Value | 67,418 | 62,434 |
SBA and other asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,834 | 11,680 |
Gross Unrealized Gains | 323 | 142 |
Gross Unrealized Losses | (38) | (66) |
Fair Value | 13,119 | 11,756 |
State and municipal bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,379 | 7,231 |
Gross Unrealized Gains | 319 | 186 |
Gross Unrealized Losses | (3) | (8) |
Fair Value | 8,695 | 7,409 |
Government-sponsored enterprise obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,999 | 10,002 |
Gross Unrealized Gains | 3 | 2 |
Gross Unrealized Losses | (9) | (91) |
Fair Value | 8,993 | 9,913 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,197 | 16,724 |
Gross Unrealized Gains | 284 | 13 |
Gross Unrealized Losses | (16) | (82) |
Fair Value | 18,465 | 16,655 |
Residential mortgage-backed securities [Member] | Government National Mortgage Association [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,055 | 4,563 |
Gross Unrealized Gains | 90 | 81 |
Gross Unrealized Losses | (25) | (20) |
Fair Value | 4,120 | 4,624 |
Residential mortgage-backed securities [Member] | Government-sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,619 | 11,984 |
Gross Unrealized Gains | 409 | 148 |
Gross Unrealized Losses | (2) | (55) |
Fair Value | $ 14,026 | $ 12,077 |
SECURITIES AVAILABLE FOR SALE30
SECURITIES AVAILABLE FOR SALE (Details 1) $ in Thousands | Sep. 30, 2016USD ($) |
Available-for-sale Securities, Debt Maturities, Amortized Cost | |
Within 1 year | $ 10,102 |
After 1 year to 5 years | 13,222 |
After 5 years to 10 years | 11,309 |
After 10 years | 942 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 35,575 |
Mortgage- and asset-backed securities | 30,508 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 66,083 |
Available-for-sale Securities, Debt Maturities, Fair Value | |
Within 1 year | 10,102 |
After 1 year to 5 years | 13,458 |
After 5 years to 10 years | 11,629 |
After 10 years | 964 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value Total | 36,153 |
Mortgage- and asset-backed securities | 31,265 |
Available-for-sale Securities, Debt Securities, Fair Value Total | $ 67,418 |
SECURITIES AVAILABLE FOR SALE31
SECURITIES AVAILABLE FOR SALE (Details 2) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months Gross Unrealized Losses | $ (21) | $ (220) |
Less Than Twelve Months Fair Value | 4,242 | 27,099 |
Over Twelve Months Gross Unrealized Losses | (72) | (102) |
Over Twelve Months Fair Value | 5,335 | 4,114 |
SBA and other asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months Gross Unrealized Losses | 0 | (26) |
Less Than Twelve Months Fair Value | 0 | 2,622 |
Over Twelve Months Gross Unrealized Losses | (38) | (40) |
Over Twelve Months Fair Value | 2,493 | 768 |
State and municipal bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months Gross Unrealized Losses | (1) | (6) |
Less Than Twelve Months Fair Value | 234 | 930 |
Over Twelve Months Gross Unrealized Losses | (2) | (2) |
Over Twelve Months Fair Value | 396 | 100 |
Government-sponsored enterprise obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months Gross Unrealized Losses | (9) | (91) |
Less Than Twelve Months Fair Value | 2,990 | 8,162 |
Over Twelve Months Gross Unrealized Losses | 0 | 0 |
Over Twelve Months Fair Value | 0 | 0 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months Gross Unrealized Losses | (11) | (63) |
Less Than Twelve Months Fair Value | 1,018 | 10,292 |
Over Twelve Months Gross Unrealized Losses | (5) | (19) |
Over Twelve Months Fair Value | 992 | 1,695 |
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 | (6) |
Less Than Twelve Months Fair Value | 0 | 923 |
Over Twelve Months Gross Unrealized Losses | (25) | (14) |
Over Twelve Months Fair Value | 846 | 857 |
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 | (28) |
Less Than Twelve Months Fair Value | 0 | 4,170 |
Over Twelve Months Gross Unrealized Losses | (2) | (27) |
Over Twelve Months Fair Value | $ 608 | $ 694 |
SECURITIES AVAILABLE FOR SALE32
SECURITIES AVAILABLE FOR SALE (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Unrealized Losses Debt Securities Aggregate Depreciation Percentage | 1.00% | 1.00% | ||
Proceeds from Sale of Available-for-sale Securities | $ 995 | $ 1,900 | $ 1,088 | $ 1,861 |
Available-for-sale Securities, Gross Realized Gains | 37 | 37 | ||
Available-for-sale Securities, Gross Realized Losses | $ 9 | $ 16 | $ 9 |
LOANS AND ALLOWANCE FOR LOAN 33
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Total loans | $ 553,805 | $ 512,482 |
Allowance for loan losses | (5,307) | (5,112) |
Net deferred origination costs (fees) | 39 | (63) |
Loans, net | 548,537 | 507,307 |
Commercial Loan [Member] | ||
Total loans | 37,698 | 23,681 |
Consumer Loan [Member] | ||
Total loans | 33,782 | 34,339 |
Residential - fixed [Member] | ||
Total loans | 18,221 | 18,414 |
Residential - variable [Member] | ||
Total loans | 248,064 | 238,056 |
Commercial Real Estate [Member] | ||
Total loans | 112,790 | 103,106 |
Construction [Member] | ||
Total loans | 103,250 | 94,886 |
Secured [Member] | ||
Total loans | 37,475 | 23,557 |
Unsecured [Member] | ||
Total loans | 223 | 124 |
Home equity lines of credit [Member] | ||
Total loans | 33,561 | 34,083 |
Other Consumer [Member] | ||
Total loans | 221 | 256 |
Real estate loans [Member] | ||
Total loans | $ 482,325 | $ 454,462 |
LOANS AND ALLOWANCE FOR LOAN 34
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance Beginning Balance | $ 5,186 | $ 4,816 | $ 5,112 | $ 4,738 |
Provision (credit) for loan losses | 125 | 150 | 312 | 300 |
Loans charged off | (4) | (117) | (72) | |
Allowance Ending Balance | 5,307 | 4,966 | 5,307 | 4,966 |
Commercial [Member] | ||||
Allowance Beginning Balance | 643 | 461 | 509 | 428 |
Provision (credit) for loan losses | 92 | 9 | 226 | 42 |
Loans charged off | 0 | 0 | 0 | |
Allowance Ending Balance | 735 | 470 | 735 | 470 |
Residential Real Estate [Member] | ||||
Allowance Beginning Balance | 1,373 | 1,557 | 1,490 | 1,710 |
Provision (credit) for loan losses | 46 | (29) | 31 | (165) |
Loans charged off | (4) | (106) | (17) | |
Allowance Ending Balance | 1,415 | 1,528 | 1,415 | 1,528 |
Commercial Real Estate [Member] | ||||
Allowance Beginning Balance | 1,036 | 1,074 | 1,025 | 1,056 |
Provision (credit) for loan losses | 30 | (37) | 41 | 36 |
Loans charged off | 0 | (55) | ||
Allowance Ending Balance | 1,066 | 1,037 | 1,066 | 1,037 |
Construction [Member] | ||||
Allowance Beginning Balance | 1,704 | 1,295 | 1,684 | 1,273 |
Provision (credit) for loan losses | (8) | 188 | 12 | 210 |
Loans charged off | 0 | 0 | 0 | |
Allowance Ending Balance | 1,696 | 1,483 | 1,696 | 1,483 |
Home equity lines of credit [Member] | ||||
Allowance Beginning Balance | 249 | 223 | 238 | 224 |
Provision (credit) for loan losses | 3 | (3) | 25 | (4) |
Loans charged off | 0 | (11) | 0 | |
Allowance Ending Balance | 252 | 220 | 252 | 220 |
Other Consumer [Member] | ||||
Allowance Beginning Balance | 3 | 4 | 2 | 4 |
Provision (credit) for loan losses | 0 | (1) | 1 | (1) |
Loans charged off | 0 | 0 | 0 | |
Allowance Ending Balance | 3 | 3 | 3 | 3 |
Unallocated [Member] | ||||
Allowance Beginning Balance | 178 | 202 | 164 | 43 |
Provision (credit) for loan losses | (38) | 23 | (24) | 182 |
Loans charged off | 0 | 0 | 0 | |
Allowance Ending Balance | $ 140 | $ 225 | $ 140 | $ 225 |
LOANS AND ALLOWANCE FOR LOAN 35
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance related to impaired loans | $ 0 | $ 0 | ||||
Allowance related to non-impaired loans | 5,307 | 5,112 | ||||
Total allowance | 5,307 | $ 5,186 | 5,112 | $ 4,966 | $ 4,816 | $ 4,738 |
Impaired loan balances | 784 | 1,649 | ||||
Non-impaired loan balances | 553,021 | 510,833 | ||||
Total loans | 553,805 | 512,482 | ||||
Commercial [Member] | ||||||
Allowance related to impaired loans | 0 | 0 | ||||
Allowance related to non-impaired loans | 735 | 509 | ||||
Total allowance | 735 | 643 | 509 | 470 | 461 | 428 |
Impaired loan balances | 3 | 11 | ||||
Non-impaired loan balances | 37,695 | 23,670 | ||||
Total loans | 37,698 | 23,681 | ||||
Residential Real Estate [Member] | ||||||
Allowance related to impaired loans | 0 | 0 | ||||
Allowance related to non-impaired loans | 1,415 | 1,490 | ||||
Total allowance | 1,415 | 1,373 | 1,490 | 1,528 | 1,557 | 1,710 |
Impaired loan balances | 180 | 959 | ||||
Non-impaired loan balances | 266,105 | 255,511 | ||||
Total loans | 266,285 | 256,470 | ||||
Commercial Real Estate [Member] | ||||||
Allowance related to impaired loans | 0 | 0 | ||||
Allowance related to non-impaired loans | 1,066 | 1,025 | ||||
Total allowance | 1,066 | 1,036 | 1,025 | 1,037 | 1,074 | 1,056 |
Impaired loan balances | 601 | 645 | ||||
Non-impaired loan balances | 112,189 | 102,461 | ||||
Total loans | 112,790 | 103,106 | ||||
Construction [Member] | ||||||
Allowance related to impaired loans | 0 | 0 | ||||
Allowance related to non-impaired loans | 1,696 | 1,684 | ||||
Total allowance | 1,696 | 1,704 | 1,684 | 1,483 | 1,295 | 1,273 |
Impaired loan balances | 0 | 0 | ||||
Non-impaired loan balances | 103,250 | 94,886 | ||||
Total loans | 103,250 | 94,886 | ||||
Home equity lines of credit [Member] | ||||||
Allowance related to impaired loans | 0 | 0 | ||||
Allowance related to non-impaired loans | 252 | 238 | ||||
Total allowance | 252 | 249 | 238 | 220 | 223 | 224 |
Impaired loan balances | 0 | 34 | ||||
Non-impaired loan balances | 33,561 | 34,049 | ||||
Total loans | 33,561 | 34,083 | ||||
Other Consumer [Member] | ||||||
Allowance related to impaired loans | 0 | 0 | ||||
Allowance related to non-impaired loans | 3 | 2 | ||||
Total allowance | 3 | 3 | 2 | 3 | 4 | 4 |
Impaired loan balances | 0 | 0 | ||||
Non-impaired loan balances | 221 | 256 | ||||
Total loans | 221 | 256 | ||||
Unallocated [Member] | ||||||
Allowance related to impaired loans | 0 | 0 | ||||
Allowance related to non-impaired loans | 140 | 164 | ||||
Total allowance | 140 | $ 178 | 164 | $ 225 | $ 202 | $ 43 |
Impaired loan balances | 0 | 0 | ||||
Non-impaired loan balances | 0 | 0 | ||||
Total loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 36
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Total Past Due | $ 1,709 | $ 1,418 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Non-accrual Loans | 604 | 1,463 |
Commercial [Member] | ||
Total Past Due | 0 | 0 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Non-accrual Loans | 3 | 11 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | 1,108 | 101 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial [Member] | ||
Total Past Due | 0 | 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 [Member] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due | 601 | 1,317 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial [Member] | ||
Total Past Due | 0 | 0 |
Residential Real Estate [Member] | ||
Total Past Due | 1,015 | 773 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Non-accrual Loans | 0 | 773 |
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | 1,015 | 101 |
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 | 672 |
Commercial Real Estate [Member] | ||
Total Past Due | 601 | 645 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Non-accrual Loans | 601 | 645 |
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 | 601 | 645 |
Home equity lines of credit [Member] | ||
Total Past Due | 93 | 0 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Non-accrual Loans | 0 | 34 |
Home equity lines of credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | 93 | 0 |
Home equity lines of credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | 0 | 0 |
Home equity lines of credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 37
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Impaired loans Recorded Investment, Without a Valuation Allowance | $ 784 | $ 1,649 |
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance | 857 | 1,721 |
Total impaired loans Recorded Investment | 784 | 1,649 |
Total impaired loans Unpaid Principal Balance | 857 | 1,721 |
Residential Real Estate [Member] | ||
Impaired loans Recorded Investment, Without a Valuation Allowance | 180 | 959 |
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance | 198 | 976 |
Commercial Real Estate [Member] | ||
Impaired loans Recorded Investment, Without a Valuation Allowance | 601 | 645 |
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance | 656 | 700 |
Home equity lines of credit [Member] | ||
Impaired loans Recorded Investment, Without a Valuation Allowance | 0 | 34 |
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance | 0 | 34 |
Commercial [Member] | ||
Impaired loans Recorded Investment, Without a Valuation Allowance | 3 | 11 |
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance | $ 3 | $ 11 |
LOANS AND ALLOWANCE FOR LOAN 38
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Average Recorded Investment | $ 912 | $ 4,327 | $ 1,046 | $ 4,537 |
Interest Income Recognized | 2 | 66 | 14 | 197 |
Interest Income Recognized on Cash Basis | 0 | 40 | 9 | 155 |
Commercial [Member] | ||||
Average Recorded Investment | 5 | 16 | 8 | 18 |
Interest Income Recognized | 0 | 0 | 0 | 1 |
Interest Income Recognized on Cash Basis | 0 | 0 | 0 | 1 |
Residential real estate [Member] | ||||
Average Recorded Investment | 285 | 1,214 | 394 | 1,235 |
Interest Income Recognized | 2 | 14 | 13 | 52 |
Interest Income Recognized on Cash Basis | 0 | 11 | 8 | 48 |
Commercial real estate [Member] | ||||
Average Recorded Investment | 610 | 2,979 | 625 | 3,149 |
Interest Income Recognized | 0 | 51 | 0 | 141 |
Interest Income Recognized on Cash Basis | 0 | 28 | 0 | 103 |
Home equity lines of credit [Member] | ||||
Average Recorded Investment | 12 | 118 | 19 | 135 |
Interest Income Recognized | 0 | 1 | 1 | 3 |
Interest Income Recognized on Cash Basis | $ 0 | $ 1 | $ 1 | $ 3 |
LOANS AND ALLOWANCE FOR LOAN 39
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans | $ 253,738 | $ 221,673 |
Loans rated 1-4 [Member] | ||
Loans | 246,161 | 213,174 |
Loans rated 5 [Member] | ||
Loans | 6,973 | 7,843 |
Loans rated 6 [Member] | ||
Loans | 3 | 11 |
Loans rated 7 [Member] | ||
Loans | 601 | 645 |
Commercial Real Estate [Member] | ||
Loans | 112,790 | 103,106 |
Commercial Real Estate [Member] | Loans rated 1-4 [Member] | ||
Loans | 107,214 | 95,603 |
Commercial Real Estate [Member] | Loans rated 5 [Member] | ||
Loans | 4,975 | 6,858 |
Commercial Real Estate [Member] | Loans rated 6 [Member] | ||
Loans | 0 | 0 |
Commercial Real Estate [Member] | Loans rated 7 [Member] | ||
Loans | 601 | 645 |
Construction [Member] | ||
Loans | 103,250 | 94,886 |
Construction [Member] | Loans rated 1-4 [Member] | ||
Loans | 103,250 | 94,886 |
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 [Member] | ||
Loans | 37,698 | 23,681 |
Commercial [Member] | Loans rated 1-4 [Member] | ||
Loans | 35,697 | 22,685 |
Commercial [Member] | Loans rated 5 [Member] | ||
Loans | 1,998 | 985 |
Commercial [Member] | Loans rated 6 [Member] | ||
Loans | 3 | 11 |
Commercial [Member] | Loans rated 7 [Member] | ||
Loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 40
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Loans and Leases Receivable, Gross | $ 553,805 | $ 512,482 | ||
Financing Receivable, Troubled Debt Restructurings, Total | $ 187 | $ 187 | ||
Loan rated 9 [Member] | Maximum [Member] | Commercial [Member] | ||||
Loans and Leases Receivable, Gross | $ 25 | |||
Credit Rating Eleven [Member] | Maximum [Member] | ||||
Period After Credit Rating Assignment | 60 days |
FAIR VALUES OF FINANCIAL INST41
FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 67,438 | $ 62,459 |
Derivative loan commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 2 | |
Forward loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 20 | 23 |
Securities available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 67,418 | 62,434 |
Fair Value, Inputs, Level 1 [Member] | ||
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 assets | 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 assets | 0 | 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 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 67,438 | 62,459 |
Fair Value, Inputs, Level 2 [Member] | Derivative loan commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 2 | |
Fair Value, Inputs, Level 2 [Member] | Forward loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 20 | 23 |
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 | 67,418 | 62,434 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Derivative loan commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 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 assets | 0 | 0 |
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 | $ 0 | $ 0 |
FAIR VALUES OF FINANCIAL INST42
FAIR VALUES OF FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans held for sale | $ 2,217 | $ 1,131 |
Fair Value, Inputs, Level 1 [Member] | ||
Loans held for sale | 0 | 0 |
Impaired loans | 0 | 0 |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Loans held for sale | 0 | 0 |
Impaired loans | 0 | 0 |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Loans held for sale | 2,217 | 1,131 |
Impaired loans | 781 | 185 |
Assets, Fair Value Disclosure, Nonrecurring | $ 2,998 | $ 1,316 |
FAIR VALUES OF FINANCIAL INST43
FAIR VALUES OF FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Non Recurring Basis [Line Items] | ||||
Total gain (Loss) | $ (22) | $ (25) | $ (136) | $ (97) |
Loans Held For Sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Non Recurring Basis [Line Items] | ||||
Total gain (Loss) | (18) | (25) | (18) | (25) |
Impaired Loans [Member] | ||||
Fair Value, Assets and Liabilities Measured on Non Recurring Basis [Line Items] | ||||
Total gain (Loss) | $ (4) | $ 0 | $ (118) | $ (72) |
FAIR VALUES OF FINANCIAL INST44
FAIR VALUES OF FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Cash and cash equivalents | $ 24,659 | $ 28,178 |
Certificates of deposit | 100 | 100 |
Securities available for sale | 67,418 | 62,434 |
FHLB stock | 5,639 | 5,524 |
Loans held for sale | 2,217 | 1,131 |
Loans, net | 557,177 | 503,854 |
Accrued interest receivable | 1,667 | 1,432 |
Derivative loan commitments | 2 | |
Forward loan sale commitments | 20 | 23 |
Financial liabilities: | ||
Deposits | 496,729 | 464,157 |
FHLB borrowings | 102,900 | 92,664 |
Subordinated debt | 9,761 | 9,734 |
Accrued interest payable | 106 | 93 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 24,659 | 28,178 |
Certificates of deposit | 100 | 100 |
Securities available for sale | 0 | 0 |
FHLB stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative loan commitments | 0 | |
Forward loan sale commitments | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit | 0 | 0 |
Securities available for sale | 67,418 | 62,434 |
FHLB stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative loan commitments | 2 | |
Forward loan sale commitments | 20 | 23 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB borrowings | 102,900 | 92,665 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit | 0 | 0 |
Securities available for sale | 0 | 0 |
FHLB stock | 5,639 | 5,524 |
Loans held for sale | 2,217 | 1,131 |
Loans, net | 557,177 | 503,854 |
Accrued interest receivable | 1,667 | 1,432 |
Derivative loan commitments | 0 | |
Forward loan sale commitments | 0 | 0 |
Financial liabilities: | ||
Deposits | 496,729 | 464,157 |
FHLB borrowings | 0 | 0 |
Subordinated debt | 9,761 | 9,734 |
Accrued interest payable | 106 | 93 |
Reported Carrying Amount Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 24,659 | 28,178 |
Certificates of deposit | 100 | 100 |
Securities available for sale | 67,418 | 62,434 |
FHLB stock | 5,639 | 5,524 |
Loans held for sale | 2,217 | 1,131 |
Loans, net | 548,537 | 507,307 |
Accrued interest receivable | 1,667 | 1,432 |
Derivative loan commitments | 2 | |
Forward loan sale commitments | 20 | 23 |
Financial liabilities: | ||
Deposits | 495,832 | 463,738 |
FHLB borrowings | 102,356 | 92,860 |
Subordinated debt | 9,761 | 9,734 |
Accrued interest payable | $ 106 | $ 93 |
EMPLOYEE STOCK OWNERSHIP PLAN45
EMPLOYEE STOCK OWNERSHIP PLAN (Details) - shares | Sep. 30, 2016 | Sep. 30, 2015 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Allocated | 45,117 | |
Committed to be allocated | 9,629 | 9,629 |
Unallocated | 131,592 | |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 186,338 |
EMPLOYEE STOCK OWNERSHIP PLAN46
EMPLOYEE STOCK OWNERSHIP PLAN (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Stock Ownership Plan ESOP Percent Of Shares Authorized To Be Purchased | 7.58% | ||
Employee Stock Ownership Plan ESOP Debt Structure Direct Loan Term | 15 years | ||
Employee Stock Ownership Plan ESOP Debt Structure Direct Loan Interest Rate | 3.25% | ||
Employee Stock Ownership Plan ESOP Cost Of Committed To Be Released Shares | $ 2,900 | ||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 186,338 | 186,338 | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 68 | $ 191 | $ 185 |
EQUITY INCENTIVE PLANS (Details
EQUITY INCENTIVE PLANS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Options | ||
Outstanding at January 1, 2016 | 225 | |
Granted | 0 | |
Exercised | 0 | |
Forfeited | 0 | |
Outstanding at September 30, 2016 | 225 | 225 |
Options exercisable at September 30, 2016 | 119 | |
Weighted Average Exercise Price | ||
Outstanding at January 1, 2016 | $ 16.01 | |
Granted | 0 | |
Exercised | 0 | |
Forfeited | 0 | |
Outstanding at September 30, 2016 | 16.01 | $ 16.01 |
Options exercisable at September 30, 2016 | $ 15.55 | |
Weighted Average Remaining Contractual Term | ||
Outstanding at end of period | 6 years 4 months 28 days | 7 years 1 month 28 days |
Options exercisable at September 30, 2016 | 6 years 1 month 10 days | |
Aggregate intrinsic value | ||
Aggregate intrinsic value | $ 1,332 | $ 968 |
Options exercisable at September 30, 2016 | $ 758 |
EQUITY INCENTIVE PLANS (Detai48
EQUITY INCENTIVE PLANS (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense for non-vested stock options | $ 292 | $ 292 | ||
Unrecognized compensation expense, recognition period | 1 year 4 months 28 days | |||
Compensation expense for stock award plan | 74 | $ 71 | $ 222 | $ 223 |
Recognize tax Benefit | 30 | 28 | $ 89 | 89 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense, recognition period | 1 year 7 months 20 days | |||
Unrecognized compensation expense for non-vested restricted stock | 421 | $ 421 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognize tax Benefit | 10 | 10 | 28 | 28 |
Share base compensation expenses applicable to stock option plan | $ 53 | $ 51 | $ 159 | $ 149 |
2012 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Incentive Plan, options granted | 231,894 | 231,894 | ||
Stock options term | 10 years | |||
Rate for Vesting Period | 20.00% | |||
Equity Incentive Plan 2016 [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity awards, vesting period | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 75,000 | 75,000 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Net income applicable to common stock | $ 755 | $ 700 | $ 2,214 | $ 1,744 |
Average number of common shares issued | 2,458,553 | 2,459,138 | 2,458,553 | 2,459,138 |
Less: Average unallocated ESOP shares | (133,197) | (146,035) | (136,406) | (149,244) |
Average number of common shares outstanding used to calculate basic earnings per common share | 2,325,356 | 2,313,103 | 2,322,147 | 2,309,894 |
Effect of dilutive stock options | 39,081 | 21,426 | 29,963 | 16,229 |
Average number of common shares outstanding used to calculate diluted earnings per share | 2,364,437 | 2,334,529 | 2,352,110 | 2,326,123 |
Earnings per common share: | ||||
Basic | $ 0.32 | $ 0.3 | $ 0.95 | $ 0.76 |
Diluted | $ 0.32 | $ 0.3 | $ 0.94 | $ 0.75 |
EARNINGS PER COMMON SHARE (De50
EARNINGS PER COMMON SHARE (Details Textual) - shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 37,000 | 31,400 |
DIVIDENDS DECLARED (Details Tex
DIVIDENDS DECLARED (Details Textual) | 1 Months Ended |
Aug. 17, 2016$ / shares | |
Dividends Payable [Line Items] | |
Cash dividend declared | $ 0.04 |
Dividend declared date | Aug. 17, 2016 |
Dividend payable, date of record | Sep. 7, 2016 |