Wellesley Bancorp 10-Q 6 Aug 19 2019 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 01, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Registrant Name	Wellesley Bancorp, Inc.
Entity Current Reporting Status	Yes
Entity Central Index Key	0001526952
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Trading Symbol	WEBK
Entity Common Stock, Shares Outstanding		2,560,065
Entity Emerging Growth Company	false
Entity Small Business	true

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 5,747	$ 7,678
Short-term investments	26,581	34,972
Total cash and cash equivalents	32,328	42,650
Certificates of deposit	100	100
Securities available for sale, at fair value	63,348	66,770
Federal Home Loan Bank of Boston stock, at cost	6,162	4,747
Loans held for sale	2,170	0
Loans	828,285	743,770
Less allowance for loan losses	(7,148)	(6,738)
Loans, net	821,137	737,032
Bank-owned life insurance	7,886	7,769
Operating lease, right-of-use asset	7,229	0
Premises and equipment, net	3,778	3,924
Accrued interest receivable	2,815	2,288
Net deferred tax asset	2,498	2,804
Other assets	7,097	3,336
Total assets	956,548	871,420
Deposits:
Non-interest-bearing	130,560	116,926
Interest-bearing	599,680	601,005
Total deposits	730,240	717,931
Short-term borrowings	54,000	15,000
Long-term borrowings	77,866	58,528
Subordinated debt	9,847	9,832
Lease liability	7,267	0
Accrued expenses and other liabilities	7,680	4,999
Total liabilities	886,900	806,290
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, 2,559,565 and 2,525,611 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively	26	25
Additional paid-in capital	27,201	26,462
Retained earnings	42,717	40,203
Accumulated other comprehensive income (loss)	667	(533)
Unearned compensation - ESOP	(963)	(1,027)
Total stockholders' equity	69,648	65,130
Total liabilities and stockholders' equity	$ 956,548	$ 871,420

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	14,000,000	14,000,000
Common Stock, Shares, Issued	2,559,565	2,525,611
Common Stock, Shares, Outstanding	2,559,565	2,525,611

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest and dividend income:
Interest and fees on loans and loans held for sale	$ 9,444	$ 7,534	$ 18,171	$ 14,761
Debt securities:
Taxable	363	345	741	686
Tax-exempt	80	82	162	164
Short-term investments and certificates of deposit	143	120	307	233
FHLB stock	59	82	138	158
Total interest and dividend income	10,089	8,163	19,519	16,002
Interest expense:
Deposits	2,570	1,457	5,059	2,650
Short-term borrowings	255	75	365	198
Long-term debt	390	388	633	731
Subordinated debt	157	158	314	316
Total interest expense	3,372	2,078	6,371	3,895
Net interest income	6,717	6,085	13,148	12,107
Provision for loan losses	170	195	410	260
Net interest income, after provision for loan losses	6,547	5,890	12,738	11,847
Non-interest income:
Customer service fees	49	45	88	88
Mortgage banking activities	51	28	79	37
Income on bank-owned life insurance	59	58	117	115
Wealth management fees	392	417	826	801
Miscellaneous	331	98	454	183
Total non-interest income	882	646	1,564	1,224
Non-interest expense:
Salaries and employee benefits	3,122	2,693	6,162	5,414
Occupancy and equipment	820	701	1,624	1,419
Data processing	308	235	605	469
FDIC insurance	190	168	325	336
Professional fees	256	215	446	413
Other general and administrative	663	581	1,292	1,100
Total non-interest expense	5,359	4,593	10,454	9,151
Income before income taxes	2,070	1,943	3,848	3,920
Provision for income taxes	565	523	1,041	1,063
Net income	1,505	1,420	2,807	2,857
Other comprehensive income:
Net unrealized holding (loss) gains on available-for-sale securities	743	(204)	1,601	(1,076)
Income tax benefit (expense)	(186)	55	(401)	274
Total other comprehensive (loss) gain income	557	(149)	1,200	(802)
Comprehensive income	$ 2,062	$ 1,271	$ 4,007	$ 2,055
Earnings per common share:
Basic	$ 0.61	$ 0.59	$ 1.15	$ 1.19
Diluted	$ 0.59	$ 0.57	$ 1.11	$ 1.15
Weighted average shares outstanding:
Basic	2,454,617	2,395,635	2,444,897	2,394,113
Diluted	2,554,895	2,501,122	2,541,328	2,493,172

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (loss) [Member]	Unearned Compensation - ESOP [Member]	Total
Balance at Dec. 31, 2017	$ 25	$ 25,601	$ 34,736	$ 39	$ (1,156)	$ 59,245
Balance (in shares) at Dec. 31, 2017	2,506,532
Comprehensive income			1,437	(653)		784
Reclassification related to Tax Cuts and Jobs Act			(7)	7
Dividends paid to common stockholders			(127)			(127)
Share-based compensation- equity incentive plan		107				107
ESOP shares committed to be allocated		61			33	94
Balance at Mar. 31, 2018	$ 25	25,769	36,039	(607)	(1,123)	60,103
Balance (in shares) at Mar. 31, 2018	2,506,532
Balance at Dec. 31, 2017	$ 25	25,601	34,736	39	(1,156)	59,245
Balance (in shares) at Dec. 31, 2017	2,506,532
Comprehensive income						2,055
Balance at Jun. 30, 2018	$ 25	25,941	37,322	(756)	(1,092)	61,440
Balance (in shares) at Jun. 30, 2018	2,506,132
Balance at Mar. 31, 2018	$ 25	25,769	36,039	(607)	(1,123)	60,103
Balance (in shares) at Mar. 31, 2018	2,506,532
Comprehensive income			1,420	(149)		1,271
Dividends paid to common stockholders			(137)			(137)
Restricted stock forfeitures (shares)	(400)
Share-based compensation- equity incentive plan		100				100
ESOP shares committed to be allocated		72			31	103
Balance at Jun. 30, 2018	$ 25	25,941	37,322	(756)	(1,092)	61,440
Balance (in shares) at Jun. 30, 2018	2,506,132
Balance at Dec. 31, 2018	$ 25	26,462	40,203	(533)	(1,027)	65,130
Balance (in shares) at Dec. 31, 2018	2,525,611
Comprehensive income			1,302	643		1,945
Dividends paid to common stockholders			(140)			(140)
Restricted stock forfeitures (shares)	(2,000)
Restricted stock awards grant (in shares)	11,500
Stock options exercised		48				48
Stock options exercised (shares)	2,553
Share-based compensation- equity incentive plan		102				102
ESOP shares committed to be allocated		64			32	96
Balance at Mar. 31, 2019	$ 25	26,676	41,365	110	(995)	67,181
Balance (in shares) at Mar. 31, 2019	2,537,664
Balance at Dec. 31, 2018	$ 25	26,462	40,203	(533)	(1,027)	65,130
Balance (in shares) at Dec. 31, 2018	2,525,611
Comprehensive income						4,007
Balance at Jun. 30, 2019	$ 26	27,201	42,717	667	(963)	69,648
Balance (in shares) at Jun. 30, 2019	2,559,565
Balance at Mar. 31, 2019	$ 25	26,676	41,365	110	(995)	67,181
Balance (in shares) at Mar. 31, 2019	2,537,664
Comprehensive income			1,505	557		2,062
Dividends paid to common stockholders			(153)			(153)
Stock options exercised	$ 1	351				352
Stock options exercised (shares)	21,901
Share-based compensation- equity incentive plan		99				99
ESOP shares committed to be allocated		75			32	107
Balance at Jun. 30, 2019	$ 26	$ 27,201	$ 42,717	$ 667	$ (963)	$ 69,648
Balance (in shares) at Jun. 30, 2019	2,559,565

CONSOLIDATED STATEMENTS OF CH_2

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

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 2,807	$ 2,857
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Provision for loan losses	410	260
Depreciation and amortization	391	392
Net amortization of securities	91	82
Principal balance of loans sold	6,259	2,532
Loans originated for sale	(8,429)	(3,128)
Accretion of net deferred loan fees	(335)	(308)
Amortization of subordinated debt issuance costs	15	15
Income on bank-owned life insurance	(117)	(115)
Deferred income tax provision	(96)	(55)
ESOP expense	203	197
Share-based compensation	201	207
Net change in other assets and liabilities	(1,560)	(1,346)
Net cash provided (used) by operating activities	(160)	1,590
Cash flows from investing activities:
Maturities, prepayments and calls	4,933	5,557
Purchases		(7,480)
Redemption (purchase) of Federal Home Loan Bank stock	(1,415)	(5)
Net loan originations	(84,180)	(18,141)
Additions to premises and equipment	(260)	(329)
Proceeds on sale of premises and equipment	6	63
Net cash used by investing activities	(80,916)	(20,335)
Cash flows from financing activities:
Net increase in deposits	12,309	26,444
Proceeds from issuance of long-term debt	33,000	36,000
Repayments of long-term debt	(13,662)	(30,492)
Increase (decrease) in short-term borrowings	39,000	(8,000)
Stock options exercised	399
Common stock repurchased	1
Cash dividends paid on common stock	(293)	(264)
Net cash provided by financing activities	70,754	23,688
Net change in cash and cash equivalents	(10,322)	4,943
Cash and cash equivalents at beginning period	42,650	28,462
Cash and cash equivalents at end of period	32,328	33,405
Supplementary information:
Interest paid	5,853	3,756
Income taxes paid	$ 1,677	$ 1,954

BASIS OF PRESENTATION AND CONSO

BASIS OF PRESENTATION AND CONSOLIDATION	6 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION AND CONSOLIDATION
BASIS OF PRESENTATION AND CONSOLIDATION	NOTE 1 – BASIS OF PRESENTATION AND CONSOLIDATION The accompanying unaudited interim consolidated financial statements include the accounts of Wellesley Bancorp, Inc. (the “Company”) and its wholly-owned subsidiary, Wellesley Bank (the “Bank”), the principal operating entity, and its wholly-owned subsidiaries: Wellesley Securities Corporation, which engages in the business of buying, selling and dealing in securities exclusively on its own behalf; Wellesley Investment Partners, LLC, formed to provide investment management services for individuals, not-for-profit entities and businesses; and Central Linden, LLC, to hold, manage and sell foreclosed real estate. All significant intercompany balances and transactions have been eliminated in consolidation. Assets under management at Wellesley Investment Partners, LLC are not included in these consolidated financial statements because they are not assets of the Company. These financial statements have been prepared in accordance with 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 2018 Annual Report on Form 10‑K. The results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or for any other period.

LOAN POLICIES

LOAN POLICIES	6 Months Ended
	Jun. 30, 2019
LOAN POLICIES
LOAN POLICIES	NOTE 2 – LOAN POLICIES The loan portfolio consists of real estate, commercial and other loans to the Company’s customers in our primary market areas in eastern Massachusetts. The ability of the Company’s debtors to honor their contracts is dependent upon the economy in general and the state of real estate and construction sectors within our markets. Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred loan origination fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Interest is generally not accrued on loans that are identified as impaired or loans which are ninety days or more past due. Past due status is based on the contractual terms of the loan. Interest income previously accrued on such loans is reversed against current period interest income. Interest income on non-accrual loans is recognized only to the extent of interest payments received and is first applied to the outstanding principal balance when collectibility of principal is in doubt. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured through sustained payment performance for at least six months. Allowance for loan losses The allowance for loan losses is established through a provision for loan losses charged to earnings as losses are estimated to occur. Loan losses are charged against the allowance when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components. General component The general component is based on the following loan segments: residential real estate, commercial real estate, construction, commercial, home equity lines of credit and other consumer. Management considers a rolling average of historical losses for each segment based on a time frame appropriate to capture relevant loss data for each loan segment, generally three and 10 years. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume, concentrations and terms of loans; level of collateral protection; effects of changes in risk selection and underwriting standards; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no significant changes to the Company’s policies or methodology pertaining to the general component of the allowance during 2019 or 2018. The qualitative factor adjustments are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not originate subprime loans. Most loans in this segment are collateralized by one-to-four family residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality of this segment. Commercial real estate – Loans in this segment are primarily income-producing properties in the Company’s primary market areas in eastern Massachusetts. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which, in turn, will have an effect on the credit quality in this segment. Management typically obtains rent rolls annually and continually monitors the cash flows of these loans. Construction – Loans in this segment include speculative construction loans primarily on residential properties for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Residential construction loans in this segment also include loans to build one-to-four family owner-occupied properties which are subject to the same credit quality factors as residential real estate. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Home equity lines of credit – Loans in this segment are collateralized by one-to-four family residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Other consumer – Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the loan or, if the loan is collateral dependent, by the fair value of the collateral less estimated costs to sell. An allowance is established when the discounted cash flows or collateral value of the impaired loan are lower than the carrying value of that loan. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify performing individual residential and consumer loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are initially classified as impaired. Unallocated component An unallocated component is maintained to cover additional uncertainties in management’s estimation of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.

COMPREHENSIVE INCOME

COMPREHENSIVE INCOME	6 Months Ended
	Jun. 30, 2019
COMPREHENSIVE INCOME
- COMPREHENSIVE INCOME	NOTE 3 – COMPREHENSIVE INCOME Accounting principles generally require that recognized revenue, expenses, and gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income/loss. The components of accumulated other comprehensive income (loss) and related tax effects are as follows: June 30, December 31, 2019 2018 (In thousands) Unrealized holding gains (losses) on securities available for sale $ 869 $ (732) Tax effect (202) 199 Net-of tax amount $ 667 $ (533)

RECENT ACCOUNTING AND REGULATOR

RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2019
RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS
RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS	NOTE 4 – RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842 ), which requires a lessee to record a right-of-use asset and liability representing the obligation to make lease payments for long-term leases. Upon adoption of the ASU, the Company recorded an increase in assets of $7.8 million and an increase in liabilities of $7.8 million on the Consolidated Balance Sheets as a result of recognizing the right-of-use assets and lease liabilities. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. Entities will now use forward-looking information to better form their credit loss estimates. Credit losses on available-for-sale debt securities should be measured in a manner similar to current GAAP; however, recognized credit losses will be presented as an allowance rather than as a write-down. This ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has implemented a committee led by the Company’s Chief Financial Officer, which includes the Chief Lending Officer, to assist in identifying, implementing and evaluating the impact of the required changes to the loan loss estimation model and processes. The Company has evaluated the portfolio segments and various methodologies and is currently evaluating potential loss modeling processes as well as related controls and procedures. Management will continue to closely monitor developments and additional guidance to determine the potential impact on the Company's consolidated financial statements.

SECURITIES AVAILABLE FOR SALE

SECURITIES AVAILABLE FOR SALE	6 Months Ended
	Jun. 30, 2019
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE	NOTE 5 – SECURITIES AVAILABLE FOR SALE The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) June 30, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ 3,647 $ 79 $ (18) $ 3,708 Government-sponsored enterprises 10,656 132 (34) 10,754 SBA and other asset-backed securities 10,684 242 (14) 10,912 State and municipal bonds 12,348 465 (1) 12,812 Government-sponsored enterprise obligations 8,000 — (11) 7,989 Corporate bonds 17,144 82 (53) 17,173 $ 62,479 $ 1,000 $ (131) $ 63,348 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) December 31, 2018 Residential mortgage-backed securities: Government National Mortgage Association $ 3,846 $ 44 $ (43) $ 3,847 Government-sponsored enterprises 11,382 29 (188) 11,223 SBA and other asset-backed securities 11,720 64 (157) 11,627 State and municipal bonds 12,908 111 (111) 12,908 Government-sponsored enterprise obligations 8,000 — (187) 7,813 Corporate bonds 18,151 28 (322) 17,857 U.S. Treasury bills 1,495 — — 1,495 $ 67,502 $ 276 $ (1,008) $ 66,770 There were no sales of available-for-sale securities for the three and six months ended June 30, 2019 and 2018, respectively. The amortized cost and fair value of debt securities by contractual maturity at June 30, 2019 are as follows: Amortized Fair Cost Value (In thousands) Within 1 year $ 5,248 $ 5,255 After 1 year to 5 years 16,096 16,169 After 5 years to 10 years 6,565 6,616 After 10 years 9,583 9,934 37,492 37,974 Mortgage- and asset-backed securities 24,987 25,374 $ 62,479 $ 63,348 Expected maturities may differ from contractual maturities because the issuer, in certain instances, has the right to call or prepay obligations with or without call or prepayment penalties. Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than Twelve Months Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) June 30, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (18) $ 1,596 Government-sponsored enterprises — — (34) 2,838 SBA and other asset-backed securities (1) 320 (13) 2,062 State and municipal bonds — — (1) 330 Government-sponsored enterprise obligations (3) 997 (8) 4,992 Corporate bonds (11) 3,988 (42) 5,332 $ (15) $ 5,305 $ (116) $ 17,150 Less Than Twelve Months Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) December 31, 2018 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (43) $ 1,755 Government-sponsored enterprises (1) 103 (187) 7,880 SBA and other asset-backed securities — — (157) 5,455 State and municipal bonds (2) 386 (109) 6,257 Government-sponsored enterprise obligations — — (187) 7,813 Corporate bonds (29) 5,705 (293) 11,124 $ (32) $ 6,194 $ (976) $ 40,284 Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluations. At June 30, 2019, various debt securities have unrealized losses with aggregate depreciation of 0.6% from their aggregate amortized cost basis. These unrealized losses relate principally to the effect of interest rate changes on the fair value of debt securities and not an increase in credit risk of the issuers. As the Company does not intend to sell the securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost, which may be maturity, the Company does not consider these securities to be other-than-temporarily impaired at June 30, 2019.

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2019
LOANS AND ALLOWANCE FOR LOAN LOSSES
LOANS AND ALLOWANCE FOR LOAN LOSSES	NOTE 6 – LOANS AND ALLOWANCE FOR LOAN LOSSES A summary of the ending balances of loans is as follows: June 30, December 31, 2019 2018 (In thousands) Real estate loans: Residential – fixed $ 74,748 $ 64,218 Residential – variable 324,486 318,292 Commercial 170,554 148,006 Construction 132,945 106,723 702,733 637,239 Commercial loans: Secured 80,380 61,563 Unsecured 4,910 5,327 85,290 66,890 Consumer loans: Home equity lines of credit 40,304 39,486 Other 165 163 40,469 39,649 Total loans 828,492 743,778 Less: Allowance for loan losses (7,148) (6,738) Net deferred origination costs (207) (8) Loans, net $ 821,137 $ 737,032 The following table summarizes the changes in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2019 and 2018: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) Three Months Ended June 30, 2019 Allowance at March 31, 2019 $ 2,202 1,361 $ 1,809 $ 1,281 $ 262 $ 3 $ 60 $ 6,978 Provision (credit) for loan losses (51) 161 (183) 71 — — 172 170 Allowance at June 30, 2019 $ 2,151 $ 1,522 $ 1,626 $ 1,352 $ 262 $ 3 $ 232 $ 7,148 Three Months Ended June 30, 2018 Allowance at March 31, 2018 $ 1,925 $ 1,545 $ 1,433 $ 995 $ 248 $ 3 $ 69 $ 6,218 Provision (credit) for loan losses 74 70 26 (33) 9 1 48 195 Allowance at June 30, 2018 $ 1,999 $ 1,615 $ 1,459 $ 962 $ 257 $ 4 $ 117 $ 6,413 Six Months Ended June 30, 2019 Allowance at December 31, 2018 $ 2,216 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Provision (credit) for loan losses (65) (80) 164 228 5 — 158 410 Allowance at June 30, 2019 $ 2,151 $ 1,522 $ 1,626 $ 1,352 $ 262 $ 3 $ 232 $ 7,148 Six Months Ended June 30, 2018 Allowance at December 31, 2017 $ 1,722 $ 1,520 $ 1,661 $ 917 $ 237 $ 2 $ 94 $ 6,153 Provision (credit) for loan losses 277 95 (202) 45 20 2 23 260 Allowance at June 30, 2018 $ 1,999 $ 1,615 $ 1,459 $ 962 $ 257 $ 4 $ 117 $ 6,413 Further information pertaining to the allowance for loan losses is as follows: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) June 30, 2019 Allowance related to impaired loans $ — $ — $ — $ — $ — $ — $ — $ — Allowance related to non-impaired loans 2,151 1,522 1,626 1,352 262 3 232 7,148 Total allowance $ 2,151 $ 1,522 $ 1,626 $ 1,352 $ 262 $ 3 $ 232 $ 7,148 Impaired loan balances $ 734 $ 2,703 $ — $ — $ — $ — $ — $ 3,437 Non-impaired loan balances 398,500 167,851 132,945 85,290 40,304 165 — 825,055 Total loans $ 399,234 $ 170,554 $ 132,945 $ 85,290 $ 40,304 $ 165 $ — $ 828,492 December 31, 2018 Allowance related to impaired loans $ — $ — $ — $ — $ — $ — $ — $ — Allowance related to non-impaired loans 2,216 1,602 1,462 1,124 257 3 74 6,738 Total allowance $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Impaired loan balances $ 746 2,846 $ — $ — $ — $ — $ — $ 3,592 Non-impaired loan balances 381,764 145,160 106,723 66,890 39,486 163 — 740,186 Total loans $ 382,510 $ 148,006 $ 106,723 $ 66,890 $ 39,486 $ 163 $ — $ 743,778 The following is a summary of past due and non-accrual loans at June 30, 2019 and December 31, 2018: Past Due 90 30‑59 Past Due 90 Days or More Days 60‑89 Days Days or Total and Still Non-accrual Past Due Past Due More Past Due Accruing Loans (In thousands) June 30, 2019 Residential real estate $ 572 $ — $ — $ 572 $ — $ 572 Commercial real estate — — 548 548 — 548 Consumer loans 100 — — 100 — — Total $ 672 $ — $ 548 $ 1,220 $ — $ 1,120 December 31, 2018 Residential real estate $ 1,551 $ — $ — $ 1,551 $ — $ 581 Commercial real estate — — 556 556 — 556 Total $ 1,551 $ — $ 556 $ 2,107 $ — $ 1,137 The following is a summary of impaired loans: June 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 734 $ 751 $ 746 $ 764 Commercial real estate 2,703 2,829 2,846 2,974 Total impaired loans $ 3,437 $ 3,580 $ 3,592 $ 3,738 Further information pertaining to impaired loans follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (In thousands) Residential real estate $ 738 $ 10 $ 8 $ 741 $ 15 $ 12 Commercial real estate 2,738 27 3 2,774 60 11 Total $ 3,476 $ 37 $ 11 $ 3,515 $ 75 $ 23 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (In thousands) Residential real estate $ 333 $ 10 $ — $ 209 $ 11 $ 8 Commercial real estate 564 8 8 567 28 28 Total $ 897 $ 18 $ 8 $ 776 $ 39 $ 36 No additional funds are committed to be advanced in connection with impaired loans. There were no new troubled debt restructurings recorded during the three months ended June 30, 2019 and 2018. There were no TDRs that defaulted, generally considered 90 days past due or longer, during the three and six months ended June 30, 2019 and 2018, and for which default was within one year of the restructure date. TDRs did not have a material impact on the allowance for loan losses for the three and six months ended June 30, 2019 and 2018. Credit Quality Information The Company utilizes an eleven-grade internal loan rating system for commercial real estate, construction and commercial loans. Loans rated 1‑4: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 5: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 6: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 7: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 8: Loans in this category are considered uncollectible “loss” and of such little value that their continuance as loans is not warranted. Loans rated 9: Loans in this category only include commercial loans under $25 thousand with no other outstandings or relationships with the Company. Loans rated 10: Loans in this category include loans which otherwise require rating but which have not been rated, or loans for which the Company’s loan policy does not require rating. Loans rated 11: Loans in this category include credit commitments/relationships that cannot be rated due to a lack of financial information or inaccurate financial information. If within 60 days of the assignment of an 11 rating, information is still not available to allow a standard rating, the credit will be rated 6. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. During each calendar year, the Company engages an independent third party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. On a monthly basis, the Company reviews the residential real estate and consumer loan portfolio for credit quality primarily through the use of delinquency reports. The following table presents the Company’s loans by risk rating: June 30, 2019 December 31, 2018 Commercial Commercial Real Estate Construction Commercial Total Real Estate Construction Commercial Total (In thousands) Loans rated 1‑4 $ 166,954 $ 132,945 $ 83,511 $ 383,410 $ 144,243 $ 106,723 $ 65,245 $ 316,211 Loans rated 5 897 — 1,053 1,950 917 — 1,645 2,562 Loans rated 6 2,155 — 726 2,881 2,290 — — 2,290 Loans rated 7 548 — — 548 556 — — 556 Total $ 170,554 $ 132,945 $ 85,290 $ 388,789 $ 148,006 $ 106,723 $ 66,890 $ 321,619

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Jun. 30, 2019
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	NOTE 7 - DERIVATIVE INSTRUMENTS Certain derivative instruments do not meet the requirements to be accounted for as hedging instruments. These undesignated derivative instruments are recognized on the consolidated balance sheet at fair value, with changes in the fair value recorded in miscellaneous income. Derivative Loan Commitments Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market. Outstanding derivative loan commitments expose the Company to the potential for changes in the fair value of the underlying loans as interest rates change, along with the value of the loan commitment. If interest rates increase, the value of these loan commitments will decrease. Conversely, if interest rates decrease, the value of these loan commitments will increase. The notional amount of undesignated derivative loan commitments was $650 thousand at June 30, 2019. The fair value of these commitments was a liability of $3 thousand. There were no outstanding derivative loan commitments at December 31, 2018. Forward Loan Sale Commitments To protect against the price risk inherent in derivative loan commitments, the Company utilizes “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. With a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded. The Company expects that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. The notional amount of undesignated forward loan sale commitments was $2.2 million at June 30, 2019. The fair value of these commitments was an asset of $1 thousand. There were no undesignated forward loan sale commitments at December 31, 2018. Interest Rate Swap Agreements The Company has entered into derivative financial instruments in the normal course of business to manage exposure to fluctuations in interest rates for its commercial customers. Typically these agreements have generally been limited to loan level interest rate swap agreements, which are entered into with borrowers and a third party. Typically, the Company enters into a floating-rate loan and a fixed-rate swap directly with a loan customer. The Company offsets the fixed-rate interest rate risk with an identical offsetting swap with a swap dealer. This is referred to as a “back-to-back” swap structure. As this structure has equal and offsetting interest rate contracts, fair value gains and losses recorded each month are offsetting. The notional amounts are amounts on which calculations, payments, and the value of the derivatives are based. Notional amounts do not represent direct credit exposures. The fair value of the derivative instruments is reflected on the Company’s consolidated balance sheet as other assets and other liabilities as appropriate. Changes in fair values are recorded in miscellaneous income in the consolidated statements of comprehensive income. A deposit account totaling $3.0 million is currently pledged to secure the Company’s liability for the offsetting interest rate swaps. A summary of the interest rate swaps is as follows: With commercial With third-party loan borrowers financial institutions June 30, December 31, June 30, December 31, 2019 2018 2019 2018 (dollars in thousands) Notional amount $ 50,401 $ 28,320 $ 50,401 $ 28,320 Receive (pay) fixed rate weighted average 4.83 % 5.09 % (4.83) % (5.09) % Receive (pay) variable rate weighted average (4.58) % (5.06) % 4.58 % 5.06 % Weighted average remaining years 11.2 years 12.8 years 11.2 years 12.8 years Unrealized fair value gain (loss) $ 3,064 $ 264 $ (3,064) $ (264)

FAIR VALUES OF FINANCIAL INSTRU

FAIR VALUES OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2019
FAIR VALUES OF FINANCIAL INSTRUMENTS
FAIR VALUES OF FINANCIAL INSTRUMENTS	NOTE 8 – FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value hierarchy The Company groups its assets measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted market prices in active exchange markets for identical assets and liabilities. Valuations are obtained from readily available pricing sources. Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities. Valuations are obtained from readily available pricing sources. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as those for which the determination of fair value requires significant management judgment or estimation. Transfers between levels are recognized at the end of a reporting period, if applicable. Determination of fair value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the assets and liabilities. Assets and liabilities measured at fair value on a recurring basis Assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 are summarized below. Total Level 1 Level 2 Level 3 Fair Value (In thousands) June 30, 2019 Assets Securities available for sale $ — $ 63,348 $ — $ 63,348 Interest rate swap agreements — 3,064 — 3,064 Forward loan sale commitments — 1 — 1 $ — $ 66,434 $ — $ 66,434 Liabilities Interest rate swap agreements $ — $ 3,064 $ — $ 3,064 Derivative loan commitments — 3 — 3 $ — $ 3,067 $ — $ 3,067 December 31, 2018 Assets Securities available for sale $ — $ 66,770 $ — $ 66,770 Interest rate swap agreements — 264 — 264 $ — $ 67,034 $ — $ 67,034 Liabilities Interest rate swap agreements $ — $ 264 $ — $ 264 Fair value measurements for securities available for sale are obtained from a third-party pricing service and are not adjusted by management. All securities are measured at fair value in Level 2 based on valuation models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. The fair values of interest rate swap agreements are based on a valuation model that uses primarily observable inputs, such as benchmark yield curves and interest rates and also the value associated with the counterparty risk. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposure and remaining contractual life. The fair value of forward loan sale commitments and derivative loan commitments are based on fair values of the underlying mortgage loans, including servicing values as applicable. The fair value of derivative loan commitments also considers the probability of such commitments being exercised. Assets measured at fair value on a non-recurring basis The Company may also be required, from time to time, to measure certain other financial assets at fair value on a non-recurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market (“LOCOM”) accounting or write-downs of individual assets. Fair values for loans held for sale are based on commitments in effect from investors or prevailing market rates. June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Loans held for sale $ — $ — $ 2,170 $ — $ — $ — There were no liabilities measured at fair value on a non-recurring basis at June 30, 2019 and December 31, 2018. Summary of fair values of financial instruments The estimated fair values and related carrying amounts of the Company’s financial instruments are outlined in the table below. Certain financial instruments and all nonfinancial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. Fair Value Carrying Amount Level 1 Level 2 Level 3 Total (In thousands) June 30, 2019 Financial assets: Cash and cash equivalents $ 32,328 $ 32,328 $ — $ — $ 32,328 Certificates of deposit 100 100 — — 100 Securities available for sale 63,348 — 63,348 — 63,348 FHLB stock 6,162 — — 6,162 6,162 Loans held for sale 2,170 — — 2,170 2,170 Loans, net 821,137 — — 830,413 830,413 Accrued interest receivable 2,815 — — 2,815 2,815 Interest rate swap agreements 3,064 — 3,064 — 3,064 Forward loan sale commitments 1 — 1 — 1 Financial liabilities: Deposits $ 730,240 $ — $ — $ 730,275 $ 730,275 Short-term borrowings 54,000 — 54,000 — 54,000 Long-term debt 77,866 — 78,008 — 78,008 Subordinated debt 9,847 — — 9,741 9,741 Accrued interest payable 1,004 — — 1,004 1,004 Interest rate swap agreements 3,064 — 3,064 — 3,064 Derivative loan commitments 3 — 3 — 3 December 31, 2018 Financial assets: Cash and cash equivalents $ 42,650 $ 42,650 $ — $ — $ 42,650 Certificates of deposit 100 100 — — 100 Securities available for sale 66,770 — 66,770 — 66,770 FHLB stock 4,747 — — 4,747 4,747 Loans, net 737,032 — — 732,427 732,427 Accrued interest receivable 2,288 — — 2,288 2,288 Interest rate swap agreements 264 — 264 — 264 Financial liabilities: Deposits $ 717,931 $ — $ — $ 716,685 $ 716,685 Short-term borrowings 15,000 — 15,000 — 15,000 Long-term debt 58,528 — 58,192 — 58,192 Subordinated debt 9,832 — — 9,691 9,691 Accrued interest payable 487 — — 487 487 Interest rate swap agreements 264 — 264 — 264

EMPLOYEE STOCK OWNERSHIP PLAN

EMPLOYEE STOCK OWNERSHIP PLAN	6 Months Ended
	Jun. 30, 2019
EMPLOYEE STOCK OWNERSHIP PLAN
EMPLOYEE STOCK OWNERSHIP PLAN	NOTE 9 – EMPLOYEE STOCK OWNERSHIP PLAN The Bank maintains an Employee Stock Ownership Plan (the “ESOP”) to provide eligible employees the opportunity to own Company stock. This plan is a tax-qualified retirement plan for the benefit of all Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The Company granted a loan to the ESOP to purchase shares of the Company’s common stock on the closing date of the Company’s mutual-to-stock conversion in 2012. As of June 30, 2019, the ESOP held 177,380 shares or 6.9% of the common stock outstanding on that date. The loan is payable annually over 15 years at the rate of 3.25% per annum. The loan can be prepaid without penalty. Loan payments are expected to be funded by cash contributions from the Bank. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. Cash dividends paid on allocated shares are reinvested into shares to participants and cash dividends paid on unallocated shares will be used to repay the outstanding debt of the ESOP. Shares used as collateral to secure the loan are released and available for allocation to eligible employees as the principal and interest on the loan is paid. Shares held by the ESOP at June 30, 2019 include the following: Allocated 74,674 Committed to be allocated 6,419 Unallocated 96,287 177,380 The fair value of unallocated shares was $3.1 million at June 30, 2019. Total compensation expense recognized in connection with the ESOP for the three months ended June 30, 2019 and 2018 was $107 thousand and $103 thousand, respectively. ESOP-related compensation expense was $203 thousand and $197 thousand for the six months ended June 30, 2019 and 2018, respectively.

EQUITY INCENTIVE PLANS

EQUITY INCENTIVE PLANS	6 Months Ended
	Jun. 30, 2019
EQUITY INCENTIVE PLANS
EQUITY INCENTIVE PLANS	NOTE 10 – EQUITY INCENTIVE PLANS Under the Company’s 2016 Equity Incentive Plan, the Company may grant restricted stock awards to its employees and directors for up to 75,000 shares of its common stock. A restricted stock award (the “award”) is a grant of shares of Company common stock for no consideration, subject to a vesting schedule or the satisfaction of market conditions or performance criteria. Awarded shares are held in reserve for each grantee by the Company’s transfer agent, and will be issued from previously authorized but unissued shares upon vesting. The fair value of the stock awards, based on the market price at the grant date, will be recognized over the five-year vesting period. At June 30, 2019,there remain 19,500 shares available to award under the Plan. Under the Company’s 2012 Equity Incentive Plan the Company granted stock options to its employees and directors in the form of incentive stock options and non-qualified stock options totaling 231,894 shares of its common stock. The exercise price of each stock option was not less than the fair market value of the Company’s common stock on the date of grant, and the maximum term of each option is 10 years from the date of each award. The vesting period was five years from the date of grant, with vesting at 20% per year. Under the 2012 Equity Incentive Plan, the Company also granted stock awards to management, employees and directors. Awarded shares are held in reserve for each grantee by the Company’s transfer agent, and were issued from previously authorized but unissued shares upon vesting. The fair value of the stock awards, based on the market price at the grant date, is recognized over the five-year vesting period. The Company’s 2012 Equity Incentive Plan was terminated upon approval of the 2016 Equity Incentive Plan. Stock Options A summary of option activity under the 2012 Equity Incentive Plan for the six months ended June 30, 2019 is presented below: Outstanding Non-vested Weighted Weighted Average Average Weighted Remaining Aggregate Grant Average Contractual Intrinsic Date Fair Shares Exercise Price Term Value Shares Value (In thousands) (In years) (In thousands) (In thousands) Balance at January 1, 2019 193 $ 16.11 10 $ 4.13 Forfeited (3) 19.07 (3) 4.01 Exercised (24) 15.31 — — Balance at June 30, 2019 166 $ 16.03 3.67 $ 2,747 7 $ 4.18 Exercisable at June 30, 2019 159 $ 15.33 3.63 $ 2,584 — — For the three months ended June 30, 2019 and 2018, compensation expense applicable to the stock options was $6 thousand and $9 thousand, respectively. There was no recognized tax benefit related to this expense for the period ended June 30, 2019 and June 30, 2018, respectively. For the six months ended June 30, 2019 and 2018, compensation expense applicable to the stock options was $13 thousand and $19 thousand, respectively. There was no recognized tax benefit related to this expense for the period ended June 30, 2019 and June 30, 2018, respectively. Unrecognized compensation expense for non-vested stock options totaled $12 thousand as of June 30, 2019, which will be recognized over the remaining weighted average vesting period of 0.70 years. Stock Awards For the six months ended June 30, 2019, there were 11,500 restricted stock awards granted with a weighted average grant date fair value of $28.25. The following table presents the activity in non-vested stock awards under the equity incentive plans for the six months ended June 30, 2019: Number of Grant-date Shares Fair Value (In thousands) Non-vested stock awards at beginning of year 27 $ 23.97 Restricted shares granted 12 28.25 Restricted shares forfeited (2) 20.78 Non-vested stock awards at end of quarter 37 $ 25.47 There was no activity in non-vested restricted stock awards under the 2016 or the 2012 Equity Incentive Plan for the three and six months ended June 30, 2018. For the three months ended June 30, 2019 and 2018, compensation expense applicable to the stock awards was $93 thousand and $90 thousand, respectively, and the recognized tax benefit related to this expense was $26 thousand and $25 thousand, respectively. For the six months ended June 30, 2019 and 2018, compensation expense applicable to the stock awards was $188 thousand and $188 thousand, respectively, and the recognized tax benefit related to this expense was $53 thousand, in each six month period 2019 and 2018. Unrecognized compensation expense for non-vested restricted stock totaled $700 thousand as of June 30, 2019, which will be recognized over the remaining weighted average vesting period of 3.10 years.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2019
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE	NOTE 11 – EARNINGS PER COMMON SHARE Basic earnings per share represents net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Under the Company’s 2012 and 2016 Equity Incentive Plans, stock awards contain non-forfeitable dividend rights. Accordingly, these shares are considered outstanding for computation of basic earnings per share. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands, except earnings per share amounts) Net income applicable to common stock $ 1,505 $ 1,420 $ 2,807 $ 2,857 Average number of common shares issued 2,553 2,506 2,544 2,506 Less: Average unallocated ESOP shares (98) (111) (99) (112) Average number of common shares outstanding used to calculate basic earnings per common share 2,455 2,396 2,445 2,394 Effect of dilutive stock options 100 105 96 99 Average number of common shares outstanding used to calculate diluted earnings per share 2,555 2,501 2,541 2,493 Earnings per common share: Basic $ 0.61 $ 0.59 $ 1.15 $ 1.19 Diluted $ 0.59 $ 0.57 $ 1.11 $ 1.15 There were no anti-dilutive options that would have been excluded from the computations of diluted earnings per share for the three and six months ended June 30, 2019 and 2018. Anti-dilutive shares are common stock equivalents with exercise prices in excess of the average market value of the Company’s stock for the periods presented.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2019
LEASES
LEASES	NOTE 12 – LEASES Effective January 1, 2019, operating leases are included in operating lease right-of-use (“ROU”) asset and liabilities in our consolidated balance sheet. These operating leases provide the physical facilities for our sales and service locations, administration and operations offices, and ATMs. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities were recognized at the adoption date based on the present value of lease payments over the remaining lease term. As our leases do not provide an implicit rate, we use the Federal Home Loan Bank borrowing rates that best align with the lease term in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease, which we include when it is reasonably certain that we will exercise that option. For operating leases, the lease expense is recognized on a straight-line basis over the lease term. The operating lease expense for the three and six months ended June 30, 2019 was $416 thousand and $832 thousand, respectively. The table below summarizes other information related to our operating leases as of June 30, 2019: Cash flows from operating leases, in thousands, year to date 2019 $ 795 Weighted average remaining lease term, in years 5.6 Weighted average discount rate 3.12 % The table below summarizes the maturity of the operating lease liabilities as of June 30, 2019: (In thousands) 2019 $ 801 2020 1,632 2021 1,483 2022 1,182 2023 1,101 Thereafter 1,912 Total lease payments 8,111 Less imputed interest (844) Present value of lease liabilities $ 7,267 The Bank is under agreement to take possession of an additional 4,431 square feet of office space in 2020 for a term of 74 months that is expected to increase the Bank’s ROU assets by $1.3 million.

LOAN POLICIES (Policies)

LOAN POLICIES (Policies)	6 Months Ended
	Jun. 30, 2019
LOAN POLICIES
Allowance for loan losses	Allowance for loan losses The allowance for loan losses is established through a provision for loan losses charged to earnings as losses are estimated to occur. Loan losses are charged against the allowance when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components. General component The general component is based on the following loan segments: residential real estate, commercial real estate, construction, commercial, home equity lines of credit and other consumer. Management considers a rolling average of historical losses for each segment based on a time frame appropriate to capture relevant loss data for each loan segment, generally three and 10 years. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume, concentrations and terms of loans; level of collateral protection; effects of changes in risk selection and underwriting standards; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no significant changes to the Company’s policies or methodology pertaining to the general component of the allowance during 2019 or 2018. The qualitative factor adjustments are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not originate subprime loans. Most loans in this segment are collateralized by one-to-four family residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality of this segment. Commercial real estate – Loans in this segment are primarily income-producing properties in the Company’s primary market areas in eastern Massachusetts. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which, in turn, will have an effect on the credit quality in this segment. Management typically obtains rent rolls annually and continually monitors the cash flows of these loans. Construction – Loans in this segment include speculative construction loans primarily on residential properties for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Residential construction loans in this segment also include loans to build one-to-four family owner-occupied properties which are subject to the same credit quality factors as residential real estate. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Home equity lines of credit – Loans in this segment are collateralized by one-to-four family residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Other consumer – Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the loan or, if the loan is collateral dependent, by the fair value of the collateral less estimated costs to sell. An allowance is established when the discounted cash flows or collateral value of the impaired loan are lower than the carrying value of that loan. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify performing individual residential and consumer loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are initially classified as impaired. Unallocated component An unallocated component is maintained to cover additional uncertainties in management’s estimation of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.

COMPREHENSIVE INCOME (Tables)

COMPREHENSIVE INCOME (Tables)	6 Months Ended
	Jun. 30, 2019
COMPREHENSIVE INCOME
Schedule of accumulated other comprehensive income (loss)	The components of accumulated other comprehensive income (loss) and related tax effects are as follows: June 30, December 31, 2019 2018 (In thousands) Unrealized holding gains (losses) on securities available for sale $ 869 $ (732) Tax effect (202) 199 Net-of tax amount $ 667 $ (533)

SECURITIES AVAILABLE FOR SALE (

SECURITIES AVAILABLE FOR SALE (Tables)	6 Months Ended
	Jun. 30, 2019
SECURITIES AVAILABLE FOR SALE
Available-for-sale securities	The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) June 30, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ 3,647 $ 79 $ (18) $ 3,708 Government-sponsored enterprises 10,656 132 (34) 10,754 SBA and other asset-backed securities 10,684 242 (14) 10,912 State and municipal bonds 12,348 465 (1) 12,812 Government-sponsored enterprise obligations 8,000 — (11) 7,989 Corporate bonds 17,144 82 (53) 17,173 $ 62,479 $ 1,000 $ (131) $ 63,348 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) December 31, 2018 Residential mortgage-backed securities: Government National Mortgage Association $ 3,846 $ 44 $ (43) $ 3,847 Government-sponsored enterprises 11,382 29 (188) 11,223 SBA and other asset-backed securities 11,720 64 (157) 11,627 State and municipal bonds 12,908 111 (111) 12,908 Government-sponsored enterprise obligations 8,000 — (187) 7,813 Corporate bonds 18,151 28 (322) 17,857 U.S. Treasury bills 1,495 — — 1,495 $ 67,502 $ 276 $ (1,008) $ 66,770
Schedule of investments classified by contractual maturity date	The amortized cost and fair value of debt securities by contractual maturity at June 30, 2019 are as follows: Amortized Fair Cost Value (In thousands) Within 1 year $ 5,248 $ 5,255 After 1 year to 5 years 16,096 16,169 After 5 years to 10 years 6,565 6,616 After 10 years 9,583 9,934 37,492 37,974 Mortgage- and asset-backed securities 24,987 25,374 $ 62,479 $ 63,348
Available-for-sale securities, continuous unrealized loss position, fair value	Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than Twelve Months Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) June 30, 2019 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (18) $ 1,596 Government-sponsored enterprises — — (34) 2,838 SBA and other asset-backed securities (1) 320 (13) 2,062 State and municipal bonds — — (1) 330 Government-sponsored enterprise obligations (3) 997 (8) 4,992 Corporate bonds (11) 3,988 (42) 5,332 $ (15) $ 5,305 $ (116) $ 17,150 Less Than Twelve Months Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) December 31, 2018 Residential mortgage-backed securities: Government National Mortgage Association $ — $ — $ (43) $ 1,755 Government-sponsored enterprises (1) 103 (187) 7,880 SBA and other asset-backed securities — — (157) 5,455 State and municipal bonds (2) 386 (109) 6,257 Government-sponsored enterprise obligations — — (187) 7,813 Corporate bonds (29) 5,705 (293) 11,124 $ (32) $ 6,194 $ (976) $ 40,284

LOANS AND ALLOWANCE FOR LOAN _2

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2019
LOANS AND ALLOWANCE FOR LOAN LOSSES
Schedule of summary of the ending balances	A summary of the ending balances of loans is as follows: June 30, December 31, 2019 2018 (In thousands) Real estate loans: Residential – fixed $ 74,748 $ 64,218 Residential – variable 324,486 318,292 Commercial 170,554 148,006 Construction 132,945 106,723 702,733 637,239 Commercial loans: Secured 80,380 61,563 Unsecured 4,910 5,327 85,290 66,890 Consumer loans: Home equity lines of credit 40,304 39,486 Other 165 163 40,469 39,649 Total loans 828,492 743,778 Less: Allowance for loan losses (7,148) (6,738) Net deferred origination costs (207) (8) Loans, net $ 821,137 $ 737,032
Schedule of summarizes the changes in the allowance for loan losses by portfolio segment	The following table summarizes the changes in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2019 and 2018: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) Three Months Ended June 30, 2019 Allowance at March 31, 2019 $ 2,202 1,361 $ 1,809 $ 1,281 $ 262 $ 3 $ 60 $ 6,978 Provision (credit) for loan losses (51) 161 (183) 71 — — 172 170 Allowance at June 30, 2019 $ 2,151 $ 1,522 $ 1,626 $ 1,352 $ 262 $ 3 $ 232 $ 7,148 Three Months Ended June 30, 2018 Allowance at March 31, 2018 $ 1,925 $ 1,545 $ 1,433 $ 995 $ 248 $ 3 $ 69 $ 6,218 Provision (credit) for loan losses 74 70 26 (33) 9 1 48 195 Allowance at June 30, 2018 $ 1,999 $ 1,615 $ 1,459 $ 962 $ 257 $ 4 $ 117 $ 6,413 Six Months Ended June 30, 2019 Allowance at December 31, 2018 $ 2,216 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Provision (credit) for loan losses (65) (80) 164 228 5 — 158 410 Allowance at June 30, 2019 $ 2,151 $ 1,522 $ 1,626 $ 1,352 $ 262 $ 3 $ 232 $ 7,148 Six Months Ended June 30, 2018 Allowance at December 31, 2017 $ 1,722 $ 1,520 $ 1,661 $ 917 $ 237 $ 2 $ 94 $ 6,153 Provision (credit) for loan losses 277 95 (202) 45 20 2 23 260 Allowance at June 30, 2018 $ 1,999 $ 1,615 $ 1,459 $ 962 $ 257 $ 4 $ 117 $ 6,413
Schedule of information pertaining to the allowance for loan losses	Further information pertaining to the allowance for loan losses is as follows: Residential Commercial Home Other Real Estate Real Estate Construction Commercial Equity Consumer Unallocated Total (In thousands) June 30, 2019 Allowance related to impaired loans $ — $ — $ — $ — $ — $ — $ — $ — Allowance related to non-impaired loans 2,151 1,522 1,626 1,352 262 3 232 7,148 Total allowance $ 2,151 $ 1,522 $ 1,626 $ 1,352 $ 262 $ 3 $ 232 $ 7,148 Impaired loan balances $ 734 $ 2,703 $ — $ — $ — $ — $ — $ 3,437 Non-impaired loan balances 398,500 167,851 132,945 85,290 40,304 165 — 825,055 Total loans $ 399,234 $ 170,554 $ 132,945 $ 85,290 $ 40,304 $ 165 $ — $ 828,492 December 31, 2018 Allowance related to impaired loans $ — $ — $ — $ — $ — $ — $ — $ — Allowance related to non-impaired loans 2,216 1,602 1,462 1,124 257 3 74 6,738 Total allowance $ 2,216 $ 1,602 $ 1,462 $ 1,124 $ 257 $ 3 $ 74 $ 6,738 Impaired loan balances $ 746 2,846 $ — $ — $ — $ — $ — $ 3,592 Non-impaired loan balances 381,764 145,160 106,723 66,890 39,486 163 — 740,186 Total loans $ 382,510 $ 148,006 $ 106,723 $ 66,890 $ 39,486 $ 163 $ — $ 743,778
Schedule of summary of past due and non-accrual loans	The following is a summary of past due and non-accrual loans at June 30, 2019 and December 31, 2018: Past Due 90 30‑59 Past Due 90 Days or More Days 60‑89 Days Days or Total and Still Non-accrual Past Due Past Due More Past Due Accruing Loans (In thousands) June 30, 2019 Residential real estate $ 572 $ — $ — $ 572 $ — $ 572 Commercial real estate — — 548 548 — 548 Consumer loans 100 — — 100 — — Total $ 672 $ — $ 548 $ 1,220 $ — $ 1,120 December 31, 2018 Residential real estate $ 1,551 $ — $ — $ 1,551 $ — $ 581 Commercial real estate — — 556 556 — 556 Total $ 1,551 $ — $ 556 $ 2,107 $ — $ 1,137
Schedule of summary of impaired loans	The following is a summary of impaired loans: June 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 734 $ 751 $ 746 $ 764 Commercial real estate 2,703 2,829 2,846 2,974 Total impaired loans $ 3,437 $ 3,580 $ 3,592 $ 3,738
Schedule of information pertaining to impaired loans	Further information pertaining to impaired loans follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (In thousands) Residential real estate $ 738 $ 10 $ 8 $ 741 $ 15 $ 12 Commercial real estate 2,738 27 3 2,774 60 11 Total $ 3,476 $ 37 $ 11 $ 3,515 $ 75 $ 23 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (In thousands) Residential real estate $ 333 $ 10 $ — $ 209 $ 11 $ 8 Commercial real estate 564 8 8 567 28 28 Total $ 897 $ 18 $ 8 $ 776 $ 39 $ 36
Schedule of company loans by risk rating	The following table presents the Company’s loans by risk rating: June 30, 2019 December 31, 2018 Commercial Commercial Real Estate Construction Commercial Total Real Estate Construction Commercial Total (In thousands) Loans rated 1‑4 $ 166,954 $ 132,945 $ 83,511 $ 383,410 $ 144,243 $ 106,723 $ 65,245 $ 316,211 Loans rated 5 897 — 1,053 1,950 917 — 1,645 2,562 Loans rated 6 2,155 — 726 2,881 2,290 — — 2,290 Loans rated 7 548 — — 548 556 — — 556 Total $ 170,554 $ 132,945 $ 85,290 $ 388,789 $ 148,006 $ 106,723 $ 66,890 $ 321,619

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
DERIVATIVE INSTRUMENTS
Schedule of summary of the interest rate swaps	A summary of the interest rate swaps is as follows: With commercial With third-party loan borrowers financial institutions June 30, December 31, June 30, December 31, 2019 2018 2019 2018 (dollars in thousands) Notional amount $ 50,401 $ 28,320 $ 50,401 $ 28,320 Receive (pay) fixed rate weighted average 4.83 % 5.09 % (4.83) % (5.09) % Receive (pay) variable rate weighted average (4.58) % (5.06) % 4.58 % 5.06 % Weighted average remaining years 11.2 years 12.8 years 11.2 years 12.8 years Unrealized fair value gain (loss) $ 3,064 $ 264 $ (3,064) $ (264)

FAIR VALUES OF FINANCIAL INST_2

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
FAIR VALUES OF FINANCIAL INSTRUMENTS
Schedule of fair value, assets and liabilities measured on recurring basis	Assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 are summarized below. Total Level 1 Level 2 Level 3 Fair Value (In thousands) June 30, 2019 Assets Securities available for sale $ — $ 63,348 $ — $ 63,348 Interest rate swap agreements — 3,064 — 3,064 Forward loan sale commitments — 1 — 1 $ — $ 66,434 $ — $ 66,434 Liabilities Interest rate swap agreements $ — $ 3,064 $ — $ 3,064 Derivative loan commitments — 3 — 3 $ — $ 3,067 $ — $ 3,067 December 31, 2018 Assets Securities available for sale $ — $ 66,770 $ — $ 66,770 Interest rate swap agreements — 264 — 264 $ — $ 67,034 $ — $ 67,034 Liabilities Interest rate swap agreements $ — $ 264 $ — $ 264
Schedule of fair value measurements, nonrecurring	June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Loans held for sale $ — $ — $ 2,170 $ — $ — $ —
Schedule of fair value, by balance sheet grouping	The estimated fair values and related carrying amounts of the Company’s financial instruments are outlined in the table below. Certain financial instruments and all nonfinancial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. Fair Value Carrying Amount Level 1 Level 2 Level 3 Total (In thousands) June 30, 2019 Financial assets: Cash and cash equivalents $ 32,328 $ 32,328 $ — $ — $ 32,328 Certificates of deposit 100 100 — — 100 Securities available for sale 63,348 — 63,348 — 63,348 FHLB stock 6,162 — — 6,162 6,162 Loans held for sale 2,170 — — 2,170 2,170 Loans, net 821,137 — — 830,413 830,413 Accrued interest receivable 2,815 — — 2,815 2,815 Interest rate swap agreements 3,064 — 3,064 — 3,064 Forward loan sale commitments 1 — 1 — 1 Financial liabilities: Deposits $ 730,240 $ — $ — $ 730,275 $ 730,275 Short-term borrowings 54,000 — 54,000 — 54,000 Long-term debt 77,866 — 78,008 — 78,008 Subordinated debt 9,847 — — 9,741 9,741 Accrued interest payable 1,004 — — 1,004 1,004 Interest rate swap agreements 3,064 — 3,064 — 3,064 Derivative loan commitments 3 — 3 — 3 December 31, 2018 Financial assets: Cash and cash equivalents $ 42,650 $ 42,650 $ — $ — $ 42,650 Certificates of deposit 100 100 — — 100 Securities available for sale 66,770 — 66,770 — 66,770 FHLB stock 4,747 — — 4,747 4,747 Loans, net 737,032 — — 732,427 732,427 Accrued interest receivable 2,288 — — 2,288 2,288 Interest rate swap agreements 264 — 264 — 264 Financial liabilities: Deposits $ 717,931 $ — $ — $ 716,685 $ 716,685 Short-term borrowings 15,000 — 15,000 — 15,000 Long-term debt 58,528 — 58,192 — 58,192 Subordinated debt 9,832 — — 9,691 9,691 Accrued interest payable 487 — — 487 487 Interest rate swap agreements 264 — 264 — 264

EMPLOYEE STOCK OWNERSHIP PLAN (

EMPLOYEE STOCK OWNERSHIP PLAN (Tables)	6 Months Ended
	Jun. 30, 2019
EMPLOYEE STOCK OWNERSHIP PLAN
Schedule of shares held by ESOP	Shares held by the ESOP at June 30, 2019 include the following: Allocated 74,674 Committed to be allocated 6,419 Unallocated 96,287 177,380

EQUITY INCENTIVE PLANS (Tables)

EQUITY INCENTIVE PLANS (Tables)	6 Months Ended
	Jun. 30, 2019
EQUITY INCENTIVE PLANS
Summary of stock option activity	A summary of option activity under the 2012 Equity Incentive Plan for the six months ended June 30, 2019 is presented below: Outstanding Non-vested Weighted Weighted Average Average Weighted Remaining Aggregate Grant Average Contractual Intrinsic Date Fair Shares Exercise Price Term Value Shares Value (In thousands) (In years) (In thousands) (In thousands) Balance at January 1, 2019 193 $ 16.11 10 $ 4.13 Forfeited (3) 19.07 (3) 4.01 Exercised (24) 15.31 — — Balance at June 30, 2019 166 $ 16.03 3.67 $ 2,747 7 $ 4.18 Exercisable at June 30, 2019 159 $ 15.33 3.63 $ 2,584 — —
Schedule of non-vested stock awards	The following table presents the activity in non-vested stock awards under the equity incentive plans for the six months ended June 30, 2019: Number of Grant-date Shares Fair Value (In thousands) Non-vested stock awards at beginning of year 27 $ 23.97 Restricted shares granted 12 28.25 Restricted shares forfeited (2) 20.78 Non-vested stock awards at end of quarter 37 $ 25.47

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2019
EARNINGS PER COMMON SHARE
Schedule of earnings per share, basic and diluted	Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands, except earnings per share amounts) Net income applicable to common stock $ 1,505 $ 1,420 $ 2,807 $ 2,857 Average number of common shares issued 2,553 2,506 2,544 2,506 Less: Average unallocated ESOP shares (98) (111) (99) (112) Average number of common shares outstanding used to calculate basic earnings per common share 2,455 2,396 2,445 2,394 Effect of dilutive stock options 100 105 96 99 Average number of common shares outstanding used to calculate diluted earnings per share 2,555 2,501 2,541 2,493 Earnings per common share: Basic $ 0.61 $ 0.59 $ 1.15 $ 1.19 Diluted $ 0.59 $ 0.57 $ 1.11 $ 1.15

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
LEASES
Summary of other information related to our operating leases	The table below summarizes other information related to our operating leases as of June 30, 2019: Cash flows from operating leases, in thousands, year to date 2019 $ 795 Weighted average remaining lease term, in years 5.6 Weighted average discount rate 3.12 %
Summary of maturity of the operating lease liabilities	The table below summarizes the maturity of the operating lease liabilities as of June 30, 2019: (In thousands) 2019 $ 801 2020 1,632 2021 1,483 2022 1,182 2023 1,101 Thereafter 1,912 Total lease payments 8,111 Less imputed interest (844) Present value of lease liabilities $ 7,267

LOAN POLICIES (Details)

LOAN POLICIES (Details)	6 Months Ended
	Jun. 30, 2019
Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Time Period To Capture Relevant Loan Loss Data	10 years
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan To Value Ratio	80.00%

COMPREHENSIVE INCOME (Details)

COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
COMPREHENSIVE INCOME
Unrealized holding gains (losses) on securities available for sale	$ 869	$ (732)
Tax effect	(202)	199
Net-of tax amount	$ 667	$ (533)

RECENT ACCOUNTING AND REGULAT_2

RECENT ACCOUNTING AND REGULATORY PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Operating Lease, Right-of-Use Asset	$ 7,229	$ 0
Operating Lease, Liability	7,267	$ 0
Accounting Standards Update 2018-02 [Member]
Operating Lease, Right-of-Use Asset	7,800
Operating Lease, Liability	$ 7,800

SECURITIES AVAILABLE FOR SALE_2

SECURITIES AVAILABLE FOR SALE (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 62,479	$ 67,502
Gross Unrealized Gains	1,000	276
Gross Unrealized Losses	(131)	(1,008)
Fair Value	63,348	66,770
SBA and other asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,684	11,720
Gross Unrealized Gains	242	64
Gross Unrealized Losses	(14)	(157)
Fair Value	10,912	11,627
State and municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	12,348	12,908
Gross Unrealized Gains	465	111
Gross Unrealized Losses	(1)	(111)
Fair Value	12,812	12,908
Government-sponsored enterprise obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,000	8,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(11)	(187)
Fair Value	7,989	7,813
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	17,144	18,151
Gross Unrealized Gains	82	28
Gross Unrealized Losses	(53)	(322)
Fair Value	17,173	17,857
US Treasury Bill Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,495
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		1,495
Residential mortgage-backed securities [Member] | Government National Mortgage Association [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,647	3,846
Gross Unrealized Gains	79	44
Gross Unrealized Losses	(18)	(43)
Fair Value	3,708	3,847
Residential mortgage-backed securities [Member] | Government-sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,656	11,382
Gross Unrealized Gains	132	29
Gross Unrealized Losses	(34)	(188)
Fair Value	$ 10,754	$ 11,223

SECURITIES AVAILABLE FOR SALE -

SECURITIES AVAILABLE FOR SALE - Schedule of debt securities by contractual maturity (Details) $ in Thousands	Jun. 30, 2019USD ($)
Available-for-sale Securities, Debt Maturities, Amortized Cost
Within 1 year	$ 5,248
After 1 year to 5 years	16,096
After 5 years to 10 years	6,565
After 10 years	9,583
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total	37,492
Mortgage- and asset-backed securities	24,987
Available-for-sale Debt Securities, Amortized Cost Basis, Total	62,479
Available-for-sale Securities, Debt Maturities, Fair Value
Within 1 year	5,255
After 1 year to 5 years	16,169
After 5 years to 10 years	6,616
After 10 years	9,934
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value Total	37,974
Mortgage- and asset-backed securities	25,374
Available-for-sale Securities, Debt Securities, Fair Value Total	$ 63,348

SECURITIES AVAILABLE FOR SALE_3

SECURITIES AVAILABLE FOR SALE - Information pertaining to investment category (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	$ (15)	$ (32)
Less Than Twelve Months Fair Value	5,305	6,194
Over Twelve Months Gross Unrealized Losses	(116)	(976)
Over Twelve Months Fair Value	17,150	40,284
SBA and other asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	(1)	0
Less Than Twelve Months Fair Value	320	0
Over Twelve Months Gross Unrealized Losses	(13)	(157)
Over Twelve Months Fair Value	2,062	5,455
State and municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	0	(2)
Less Than Twelve Months Fair Value	0	386
Over Twelve Months Gross Unrealized Losses	(1)	(109)
Over Twelve Months Fair Value	330	6,257
Government-sponsored enterprise obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	(3)	0
Less Than Twelve Months Fair Value	997	0
Over Twelve Months Gross Unrealized Losses	(8)	(187)
Over Twelve Months Fair Value	4,992	7,813
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	(11)	(29)
Less Than Twelve Months Fair Value	3,988	5,705
Over Twelve Months Gross Unrealized Losses	(42)	(293)
Over Twelve Months Fair Value	5,332	11,124
Residential mortgage-backed securities [Member] | Government National Mortgage Association [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	0	0
Less Than Twelve Months Fair Value	0	0
Over Twelve Months Gross Unrealized Losses	(18)	(43)
Over Twelve Months Fair Value	1,596	1,755
Residential mortgage-backed securities [Member] | Government-sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months Gross Unrealized Losses	0	(1)
Less Than Twelve Months Fair Value	0	103
Over Twelve Months Gross Unrealized Losses	(34)	(187)
Over Twelve Months Fair Value	$ 2,838	$ 7,880

SECURITIES AVAILABLE FOR SALE_4

SECURITIES AVAILABLE FOR SALE - Additional information (Details)	Jun. 30, 2019
SECURITIES AVAILABLE FOR SALE
Unrealized Losses Debt Securities Aggregate Depreciation Percentage	0.60%

LOANS AND ALLOWANCE FOR LOAN _3

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total loans	$ 828,492	$ 743,778
Less: Allowance for loan losses	(7,148)	(6,738)
Net deferred origination costs	(207)	(8)
Loans, net	821,137	737,032
Commercial loans [Member]
Total loans	85,290	66,890
Consumer loans [Member]
Total loans	40,469	39,649
Commercial Real Estate [Member]
Total loans	170,554	148,006
Construction [Member]
Total loans	132,945	106,723
Secured [Member] | Commercial loans [Member]
Total loans	80,380	61,563
Unsecured [Member] | Commercial loans [Member]
Total loans	4,910	5,327
Home equity lines of credit [Member]
Total loans	40,304	39,486
Home equity lines of credit [Member] | Consumer loans [Member]
Total loans	40,304	39,486
Other Consumer [Member]
Total loans	165	163
Other Consumer [Member] | Consumer loans [Member]
Total loans	165	163
Real estate loans [Member]
Total loans	702,733	637,239
Real estate loans [Member] | Residential - fixed [Member]
Total loans	74,748	64,218
Real estate loans [Member] | Residential - variable [Member]
Total loans	324,486	318,292
Real estate loans [Member] | Commercial Real Estate [Member]
Total loans	170,554	148,006
Real estate loans [Member] | Construction [Member]
Total loans	$ 132,945	$ 106,723

LOANS AND ALLOWANCE FOR LOAN _4

LOANS AND ALLOWANCE FOR LOAN LOSSES - Changes in the allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Allowance Beginning Balance	$ 6,978	$ 6,218	$ 6,738	$ 6,153
Provision (credit) for loan losses	170	195	410	260
Allowance Ending Balance	7,148	6,413	7,148	6,413
Commercial loans [Member]
Allowance Beginning Balance	1,281	995	1,124	917
Provision (credit) for loan losses	71	(33)	228	45
Allowance Ending Balance	1,352	962	1,352	962
Residential Real Estate [Member]
Allowance Beginning Balance	2,202	1,925	2,216	1,722
Provision (credit) for loan losses	(51)	74	(65)	277
Allowance Ending Balance	2,151	1,999	2,151	1,999
Commercial Real Estate [Member]
Allowance Beginning Balance	1,361	1,545	1,602	1,520
Provision (credit) for loan losses	161	70	(80)	95
Allowance Ending Balance	1,522	1,615	1,522	1,615
Construction [Member]
Allowance Beginning Balance	1,809	1,433	1,462	1,661
Provision (credit) for loan losses	(183)	26	164	(202)
Allowance Ending Balance	1,626	1,459	1,626	1,459
Home equity lines of credit [Member]
Allowance Beginning Balance	262	248	257	237
Provision (credit) for loan losses		9	5	20
Allowance Ending Balance	262	257	262	257
Other Consumer [Member]
Allowance Beginning Balance	3	3	3	2
Provision (credit) for loan losses		1		2
Allowance Ending Balance	3	4	3	4
Unallocated [Member]
Allowance Beginning Balance	60	69	74	94
Provision (credit) for loan losses	172	48	158	23
Allowance Ending Balance	$ 232	$ 117	$ 232	$ 117

LOANS AND ALLOWANCE FOR LOAN _5

LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Allowance related to non-impaired loans	$ 7,148		$ 6,738
Total allowance	7,148	$ 6,978	6,738	$ 6,413	$ 6,218	$ 6,153
Impaired loan balances	3,437		3,592
Non-impaired loan balances	825,055		740,186
Total loans	828,492		743,778
Commercial loans [Member]
Allowance related to non-impaired loans	1,352		1,124
Total allowance	1,352	1,281	1,124	962	995	917
Non-impaired loan balances	85,290		66,890
Total loans	85,290		66,890
Residential Real Estate [Member]
Allowance related to non-impaired loans	2,151		2,216
Total allowance	2,151	2,202	2,216	1,999	1,925	1,722
Impaired loan balances	734		746
Non-impaired loan balances	398,500		381,764
Total loans	399,234		382,510
Commercial Real Estate [Member]
Allowance related to non-impaired loans	1,522		1,602
Total allowance	1,522	1,361	1,602	1,615	1,545	1,520
Impaired loan balances	2,703		2,846
Non-impaired loan balances	167,851		145,160
Total loans	170,554		148,006
Construction [Member]
Allowance related to non-impaired loans	1,626		1,462
Total allowance	1,626	1,809	1,462	1,459	1,433	1,661
Non-impaired loan balances	132,945		106,723
Total loans	132,945		106,723
Home equity lines of credit [Member]
Allowance related to non-impaired loans	262		257
Total allowance	262	262	257	257	248	237
Non-impaired loan balances	40,304		39,486
Total loans	40,304		39,486
Other Consumer [Member]
Allowance related to non-impaired loans	3		3
Total allowance	3	3	3	4	3	2
Non-impaired loan balances	165		163
Total loans	165		163
Unallocated [Member]
Allowance related to non-impaired loans	232		74
Total allowance	$ 232	$ 60	$ 74	$ 117	$ 69	$ 94

LOANS AND ALLOWANCE FOR LOAN _6

LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of past due and non-accrual loans (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total Past Due	$ 1,220	$ 2,107
Non-accrual Loans	1,120	1,137
Consumer loans [Member]
Total Past Due	100
Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	672	1,551
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer loans [Member]
Total Past Due	100
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	548	556
Residential Real Estate [Member]
Total Past Due	572	1,551
Non-accrual Loans	572	581
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	572	1,551
Commercial Real Estate [Member]
Total Past Due	548	556
Non-accrual Loans	548	556
Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	$ 548	$ 556

LOANS AND ALLOWANCE FOR LOAN _7

LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired financing receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total impaired loans Recorded Investment	$ 3,437	$ 3,592
Total impaired loans Unpaid Principal Balance	3,580	3,738
Residential Real Estate [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	734	746
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	751	764
Commercial Real Estate [Member]
Impaired loans Recorded Investment, Without a Valuation Allowance	2,703	2,846
Impaired loans Unpaid Principal Balance, Without a Valuation Allowance	$ 2,829	$ 2,974

LOANS AND ALLOWANCE FOR LOAN _8

LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired financing receivables by class of loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Average Recorded Investment	$ 3,476	$ 897	$ 3,515	$ 776
Interest Income Recognized	37	18	75	39
Interest Income Recognized on Cash Basis	11	8	23	36
Residential Real Estate [Member]
Average Recorded Investment	738	333	741	209
Interest Income Recognized	10	10	15	11
Interest Income Recognized on Cash Basis	8		12	8
Commercial Real Estate [Member]
Average Recorded Investment	2,738	564	2,774	567
Interest Income Recognized	27	8	60	28
Interest Income Recognized on Cash Basis	$ 3	$ 8	$ 11	$ 28

LOANS AND ALLOWANCE FOR LOAN _9

LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit quality information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Loans	$ 388,789	$ 321,619
Loans rated 1-4 [Member]
Loans	383,410	316,211
Loans rated 5 [Member]
Loans	1,950	2,562
Loans rated 6 [Member]
Loans	2,881	2,290
Loans rated 7 [Member]
Loans	548	556
Commercial Real Estate [Member]
Loans	170,554	148,006
Commercial Real Estate [Member] | Loans rated 1-4 [Member]
Loans	166,954	144,243
Commercial Real Estate [Member] | Loans rated 5 [Member]
Loans	897	917
Commercial Real Estate [Member] | Loans rated 6 [Member]
Loans	2,155	2,290
Commercial Real Estate [Member] | Loans rated 7 [Member]
Loans	548	556
Construction [Member]
Loans	132,945	106,723
Construction [Member] | Loans rated 1-4 [Member]
Loans	132,945	106,723
Commercial loans [Member]
Loans	85,290	66,890
Commercial loans [Member] | Loans rated 1-4 [Member]
Loans	83,511	65,245
Commercial loans [Member] | Loans rated 5 [Member]
Loans	1,053	$ 1,645
Commercial loans [Member] | Loans rated 6 [Member]
Loans	$ 726

LOANS AND ALLOWANCE FOR LOAN_10

LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Loans and Leases Receivable, Gross	$ 828,492	$ 743,778
Commercial loans [Member]
Loans and Leases Receivable, Gross	85,290	$ 66,890
Loan rated 9 [Member] | Maximum [Member] | Commercial loans [Member]
Loans and Leases Receivable, Gross	$ 25
Credit Rating Eleven [Member] | Maximum [Member]
Period After Credit Rating Assignment	60 days

DERIVATIVE INSTRUMENTS - Summar

DERIVATIVE INSTRUMENTS - Summary of the interest rate swaps (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Commercial Borrower [Member]
Derivative, Notional Amount	$ 50,401	$ 28,320
Receive(pay) fixed rate (weighted average)	4.83%	5.09%
Receive (pay) variable rate (weighted average)	(4.58%)	(5.06%)
Weighted average remaining years	11 years 2 months 12 days	12 years 9 months 18 days
Unrealized fair value gain (loss)	$ 3,064	$ 264
Third Party Financial Institutions [Member]
Derivative, Notional Amount	$ 50,401	$ 28,320
Receive(pay) fixed rate (weighted average)	(4.83%)	(5.09%)
Receive (pay) variable rate (weighted average)	4.58%	5.06%
Weighted average remaining years	11 years 2 months 12 days	12 years 9 months 18 days
Unrealized fair value gain (loss)	$ (3,064)	$ (264)

DERIVATIVE INSTRUMENTS - Additi

DERIVATIVE INSTRUMENTS - Additional information (Details) $ in Thousands	Jun. 30, 2019USD ($)
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 1
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Liability, Fair Value of Collateral	3,000
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	1
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivative [Line Items]
Derivative Liability, Notional Amount	650
Derivative Asset, Notional Amount	3
Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 2,200

FAIR VALUES OF FINANCIAL INST_3

FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 66,434	$ 67,034
Total liabilities	3,067
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	3,064	264
Total liabilities	3,064
Forward loan sale commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	1
Securities available for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	63,348	66,770
Total liabilities		264
Derivative loan commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	3
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	66,434	67,034
Total liabilities	3,067
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	3,064	264
Total liabilities	3,064
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	1
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	63,348	66,770
Total liabilities		$ 264
Fair Value, Inputs, Level 2 [Member] | Derivative loan commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	$ 3

FAIR VALUES OF FINANCIAL INST_4

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair value on a non-recurring basis (Details) $ in Thousands	Jun. 30, 2019USD ($)
Loans held for sale	$ 2,170
Fair Value, Inputs, Level 3 [Member]
Loans held for sale	$ 2,170

FAIR VALUES OF FINANCIAL INST_5

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair values of financial instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financial assets:
Cash and cash equivalents	$ 32,328	$ 42,650
Certificates of deposit	100	100
Securities available for sale	63,348	66,770
FHLB stock	6,162	4,747
Loans held for sale	2,170
Loans, net	830,413	732,427
Accrued interest receivable	2,815	2,288
Interest rate swap agreements	3,064	264
Forward loan sale	1
Financial liabilities:
Deposits	730,275	716,685
Short-term borrowings	54,000	15,000
Long-term debt	78,008	58,192
Subordinated debt	9,741	9,691
Accrued interest payable	1,004	487
Interest rate swap agreements	3,064	264
Derivative loan commitments	3
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and cash equivalents	32,328	42,650
Certificates of deposit	100	100
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Securities available for sale	63,348	66,770
Interest rate swap agreements	3,064	264
Forward loan sale	1
Financial liabilities:
Short-term borrowings	54,000	15,000
Long-term debt	78,008	58,192
Interest rate swap agreements	3,064	264
Derivative loan commitments	3
Fair Value, Inputs, Level 3 [Member]
Financial assets:
FHLB stock	6,162	4,747
Loans held for sale	2,170
Loans, net	830,413	732,427
Accrued interest receivable	2,815	2,288
Financial liabilities:
Deposits	730,275	716,685
Subordinated debt	9,741	9,691
Accrued interest payable	1,004	487
Reported Value Measurement [Member]
Financial assets:
Cash and cash equivalents	32,328	42,650
Certificates of deposit	100	100
Securities available for sale	63,348	66,770
FHLB stock	6,162	4,747
Loans held for sale	2,170
Loans, net	821,137	737,032
Accrued interest receivable	2,815	2,288
Interest rate swap agreements	3,064	264
Forward loan sale	1
Financial liabilities:
Deposits	730,240	717,931
Short-term borrowings	54,000	15,000
Long-term debt	77,866	58,528
Subordinated debt	9,847	9,832
Accrued interest payable	1,004	487
Interest rate swap agreements	3,064	$ 264
Derivative loan commitments	$ 3

EMPLOYEE STOCK OWNERSHIP PLAN -

EMPLOYEE STOCK OWNERSHIP PLAN - Shares held by ESOP (Details)	Jun. 30, 2019shares
EMPLOYEE STOCK OWNERSHIP PLAN
Allocated	74,674
Committed to be allocated	6,419
Unallocated	96,287
Total	177,380

EMPLOYEE STOCK OWNERSHIP PLAN_2

EMPLOYEE STOCK OWNERSHIP PLAN - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
EMPLOYEE STOCK OWNERSHIP PLAN
Employee Stock Ownership Plan ESOP Percent Of Shares Authorized To Be Purchased			6.90%
Employee Stock Ownership Plan ESOP Debt Structure Direct Loan Term			15 years
Employee Stock Ownership Plan ESOP Debt Structure Direct Loan Interest Rate			3.25%
Employee Stock Ownership Plan ESOP Cost Of Committed To Be Released Shares			$ 3,100
Employee Stock Ownership Plan (ESOP), Shares in ESOP	177,380		177,380
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 107	$ 103	$ 203	$ 197

EQUITY INCENTIVE PLANS - Summar

EQUITY INCENTIVE PLANS - Summary of option activity (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2019
Shares
Outstanding at beginning of period	193
Forfeited	(3)
Exercised	(24)
Outstanding at end of period	166
Options exercisable at end of period	159
Weighted Average Exercise Price
Outstanding at beginning of period	$ 16.11
Forfeited	19.07
Exercised	15.31
Outstanding at end of period	16.03
Options exercisable at end of period	$ 15.33
Weighted Average Remaining Contractual Term
Outstanding at end of period	3 years 8 months 1 day
Options exercisable at end of period	3 years 7 months 17 days
Aggregate intrinsic value
Outstanding	$ 2,747
Options exercisable at end of period	$ 2,584
Shares, Non-vested
Outstanding at beginning of period	10
Forfeited	(3)
Outstanding at end of period	7
Weighted Average Grant Date Fair value, Non-vested
Outstanding at beginning of period	$ 4.13
Forfeited	4.01
Outstanding at end of period	$ 4.18

EQUITY INCENTIVE PLANS - Non-ve

EQUITY INCENTIVE PLANS - Non-vested awards (Details) - Restricted Stock [Member] shares in Thousands	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Number of Shares
Outstanding at beginning of period | shares	27
Restricted shares granted | shares	12
Restricted shares forfeited | shares	(2)
Outstanding at end of period | shares	37
Grant-date Fair Value
Outstanding at beginning of period | $ / shares	$ 23.97
Restricted shares granted | $ / shares	28.25
Restricted shares forfeited | $ / shares	20.78
Outstanding at end of period | $ / shares	$ 25.47

EQUITY INCENTIVE PLANS - Additi

EQUITY INCENTIVE PLANS - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense for non-vested stock options	$ 700		$ 700
Unrecognized compensation expense, recognition period			3 years 1 month 6 days
Stock Issued During Period, Shares, Restricted Stock Award, Gross			11,500
Compensation expense for stock award plan	93	$ 90	$ 188	$ 188
Recognize tax Benefit	26	25	53	53
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense for non-vested stock options	12		$ 12
Unrecognized compensation expense, recognition period			8 months 12 days
Recognize tax Benefit	0	0	$ 0	0
Share base compensation expenses applicable to stock option plan	$ 6	$ 9	$ 13	$ 19
2012 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity Incentive Plan, options granted	231,894		231,894
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			20.00%
2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity Incentive Plan, options granted	75,000		75,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	19,500		19,500

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
EARNINGS PER COMMON SHARE
Net income applicable to common stock	$ 1,505	$ 1,420	$ 2,807	$ 2,857
Average number of common shares issued	2,553,000	2,506,000	2,544,000	2,506,000
Less: Average unallocated ESOP shares	(98,000)	(111,000)	(99,000)	(112,000)
Average number of common shares outstanding used to calculate basic earnings per common share	2,454,617	2,395,635	2,444,897	2,394,113
Effect of dilutive stock options	100,000	105,000	96,000	99,000
Average number of common shares outstanding used to calculate diluted earnings per share	2,554,895	2,501,122	2,541,328	2,493,172
Earnings per common share:
Basic	$ 0.61	$ 0.59	$ 1.15	$ 1.19
Diluted	$ 0.59	$ 0.57	$ 1.11	$ 1.15

LEASES - Other information rela

LEASES - Other information related to our operating leases (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
LEASES
Operating cash flows from operating leases, in thousands	$ 795
Weighted average remaining lease term -operating leases, in years	5 years 7 months 6 days
Weighted average discount rate-operating leases	3.12%

LEASES - Maturity of the operat

LEASES - Maturity of the operating lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
LEASES
2019	$ 801
2020	1,632
2021	1,483
2022	1,182
2023	1,101
Thereafter	1,912
Total lease payments	8,111
Less imputed interest	(844)
Present value of lease liabilities	$ 7,267	$ 0

LEASES - Additional information

LEASES - Additional information (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019USD ($)ft²	Jun. 30, 2019USD ($)ft²
LEASES
Operating Lease, Expense	$ 416	$ 832
Land Subject to Ground Leases | ft²	4,431	4,431
Lessee, Operating Lease, Term of Contract	74 months	74 months
Increase in bank's ROU		$ 1,300