Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 08, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Georgetown Bancorp, Inc. | |
Entity Central Index Key | 1,542,299 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 1,836,250 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 2,452 | $ 2,945 |
Short-term investments | 5,701 | 3,184 |
Total cash and cash equivalents | 8,153 | 6,129 |
Securities available for sale, at fair value | 18,847 | 19,772 |
Securities held to maturity, at amortized cost (fair value of $2,453 at March 31, 2017 and $2,490 at December 31, 2016) | 2,462 | 2,503 |
Federal Home Loan Bank stock, at cost | 2,751 | 2,341 |
Bankers Bank Northeast stock, at cost | 60 | 60 |
Loans held for sale | 271 | |
Loans, net of allowance for loan losses of $2,642 at March 31, 2017 and $2,605 at December 31, 2016 | 279,567 | 277,371 |
Premises and equipment, net | 4,035 | 4,133 |
Accrued interest receivable | 826 | 816 |
Bank-owned life insurance | 3,231 | 3,206 |
Other assets | 1,930 | 2,030 |
Total assets | 321,862 | 318,632 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Deposits | 240,530 | 240,508 |
Short-term Federal Home Loan Bank advances | 21,000 | 17,250 |
Long-term Federal Home Loan Bank advances | 23,600 | 24,600 |
Mortgagors' escrow accounts | 1,973 | 1,633 |
Accrued expenses and other liabilities | 2,356 | 2,485 |
Total liabilities | 289,459 | 286,476 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value per share: 50,000,000 shares authorized at March 31, 2017 and December 31, 2016; none outstanding | ||
Common stock, $0.01 par value per share: 100,000,000 shares authorized, 1,836,250 shares issued at March 31, 2017 and 1,840,920 shares issued at December 31, 2016 | 18 | 18 |
Additional paid-in capital | 19,809 | 19,871 |
Retained earnings | 13,825 | 13,635 |
Accumulated other comprehensive loss | (5) | (41) |
Unearned compensation - ESOP (70,595 shares unallocated at March 31, 2017 and 72,405 shares unallocated at December 31, 2016) | (733) | (753) |
Unearned compensation - Restricted stock (30,076 shares non-vested at March 31, 2017 and 46,449 shares non-vested at December 31, 2016) | (511) | (574) |
Total stockholders' equity | 32,403 | 32,156 |
Total liabilities and stockholders' equity | $ 321,862 | $ 318,632 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Securities held to maturity, fair value (in dollars) | $ 2,453 | $ 2,490 |
Loans, allowance for loan losses (in dollars) | $ 2,642 | $ 2,605 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 1,836,250 | 1,840,920 |
Unearned compensation - ESOP shares unallocated | 70,595 | 72,405 |
Unearned compensation - Restricted stock shares non-vested | 30,076 | 46,449 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest and dividend income: | ||
Loans, including fees | $ 3,246 | $ 3,003 |
Securities | 142 | 154 |
Short-term investments | 7 | 6 |
Total interest and dividend income | 3,395 | 3,163 |
Interest expense: | ||
Deposits | 494 | 411 |
Short-term Federal Home Loan Bank advances | 47 | 20 |
Long-term Federal Home Loan Bank advances | 121 | 143 |
Total interest expense | 662 | 574 |
Net interest and dividend income | 2,733 | 2,589 |
Provision for loan losses | 39 | 74 |
Net interest and dividend income, after provision for loan losses | 2,694 | 2,515 |
Non-interest income: | ||
Customer service fees | 165 | 184 |
Mortgage banking income, net | 15 | 9 |
Gain on sale of SBA loans | 15 | |
Income from bank-owned life insurance | 25 | 26 |
Other | 11 | 8 |
Total non-interest income | 216 | 242 |
Non-interest expenses: | ||
Salaries and employee benefits | 1,426 | 1,411 |
Occupancy and equipment expenses | 254 | 265 |
Data processing expenses | 172 | 214 |
Professional fees | 204 | 291 |
Merger related expenses | 96 | |
Advertising expenses | 3 | 87 |
FDIC insurance | 53 | 44 |
ATM service charge expenses | 34 | 32 |
Other general and administrative expenses | 240 | 293 |
Total non-interest expenses | 2,482 | 2,637 |
Income before income taxes | 428 | 120 |
Income tax provision | 150 | 40 |
Net income | $ 278 | $ 80 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 1,767,231 | 1,754,525 |
Diluted (in shares) | 1,805,521 | 1,759,031 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.16 | $ 0.05 |
Diluted (in dollars per share) | 0.15 | 0.05 |
Dividends paid per share (in dollars per share) | $ 0.0500 | $ 0.0475 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 278 | $ 80 |
Net unrealized gain on securities available for sale | 58 | 238 |
Income tax provision | (22) | (84) |
Other comprehensive income, net of tax | 36 | 154 |
Comprehensive income | $ 314 | $ 234 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Unearned Compensation-ESOP | Unearned Compensation-Restricted Stock | Total |
Balance at Dec. 31, 2015 | $ 18 | $ 19,402 | $ 13,788 | $ 46 | $ (835) | $ (511) | $ 31,908 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 80 | 80 | |||||
Other comprehensive loss | 154 | 154 | |||||
Cash dividends paid | (83) | (83) | |||||
Common stock held by ESOP allocated or committed to be allocated | 15 | 20 | 35 | ||||
Restricted stock granted in connection with equity incentive plan | 320 | (320) | |||||
Purchased stock related to vested restricted stock | (74) | (74) | |||||
Share based compensation - options | 27 | 27 | |||||
Share based compensation - restricted stock | 59 | 59 | |||||
Balance at Mar. 31, 2016 | 18 | 19,690 | 13,785 | 200 | (815) | (772) | 32,106 |
Balance at Dec. 31, 2016 | 18 | 19,871 | 13,635 | (41) | (753) | (574) | 32,156 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 278 | 278 | |||||
Other comprehensive loss | 36 | 36 | |||||
Cash dividends paid | (88) | (88) | |||||
Common stock held by ESOP allocated or committed to be allocated | 27 | 20 | 47 | ||||
Purchased stock related to vested restricted stock | (120) | (120) | |||||
Share based compensation - options | 31 | 31 | |||||
Share based compensation - restricted stock | 63 | 63 | |||||
Balance at Mar. 31, 2017 | $ 18 | $ 19,809 | $ 13,825 | $ (5) | $ (733) | $ (511) | $ 32,403 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Dividends paid per share (in dollars per share) | $ 0.0500 | $ 0.0475 |
Common stock held by ESOP allocated or committed to be allocated (in shares) | 1,810 | 1,810 |
Restricted stock granted in connection with equity incentive plan (in shares) | 16,500 | |
Purchased stock related to vested restricted stock (in shares) | 4,670 | 3,818 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 278 | $ 80 |
Adjustments to reconcile net income to net cash provided by (used by) operating activities: | ||
Provision for loan losses | 39 | 74 |
Amortization of securities, net | 41 | 31 |
Net change in deferred loan fees and costs | (56) | (10) |
Depreciation and amortization expense | 106 | 98 |
(Increase) decrease in accrued interest receivable | (10) | 29 |
Income from bank-owned life insurance | (25) | (26) |
Stock-based compensation expense | 141 | 121 |
Excess tax benefit on share-based compensation | (42) | |
Gain on sale of loans | (4) | (15) |
Loans originated for sale | (210) | |
Proceeds from sales of loans | 275 | 225 |
Net change in other assets and liabilities | (9) | (891) |
Net cash provided by (used by) operating activities | 734 | (494) |
Activity in securities available for sale: | ||
Maturities, prepayments and calls | 947 | 577 |
Proceeds from sale of securities | 0 | 0 |
Maturities, prepayments and calls | 36 | 48 |
Purchases | (2,494) | |
Purchase of Federal Home Loan Bank stock | (410) | |
Redemption of Federal Home Loan Bank stock | 511 | |
Loan originations, net | (456) | (5,451) |
Principal balance of loans purchased | (1,723) | (3,131) |
Purchase of premises and equipment | (8) | (358) |
Net cash used by investing activities | (1,614) | (10,298) |
Cash flows from financing activities: | ||
Net change in deposits | 22 | 28,089 |
Net change in Federal Home Loan Bank advances with maturities of three months or less | 4,250 | (15,250) |
Repayments of Federal Home Loan Bank advances with maturities greater than three months | (1,500) | (1,000) |
Net change in mortgagors' escrow accounts | 340 | 390 |
Repurchase of common stock | (120) | (74) |
Cash dividends paid on common stock | (88) | (83) |
Net cash provided by financing activities | 2,904 | 12,072 |
Net change in cash and cash equivalents | 2,024 | 1,280 |
Cash and cash equivalents at beginning of period | 6,129 | 7,758 |
Cash and cash equivalents at end of period | 8,153 | 9,038 |
Supplementary information: | ||
Interest paid on deposit accounts | 495 | 411 |
Interest paid on advances | 163 | 167 |
Income taxes paid | $ 176 | 111 |
Change in due to broker for investment purchases | $ (2,505) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2017 | |
Basis of Presentation | |
Basis of Presentation | (1) The accompanying unaudited financial statements of Georgetown Bancorp, Inc., a Maryland corporation, (the “Company”) were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and with Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with GAAP. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three-month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for future periods, including the entire fiscal year. These financial statements should be read in conjunction with the financial statements and notes thereto included in the December 31, 2016 Consolidated Financial Statements presented in the Annual Report on Form 10-K of the Company filed with the Securities and Exchange Commission on March 30, 2017. The consolidated financial statements include the accounts of Georgetown Bank (the “Bank”) and its wholly owned subsidiary, Georgetown Securities Corporation. All significant inter-company balances and transactions have been eliminated in consolidation. These consolidated financial statements consider events that occurred through the date the consolidated financial statements were issued. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. |
CORPORATE STRUCTURE
CORPORATE STRUCTURE | 3 Months Ended |
Mar. 31, 2017 | |
Corporate Structure | |
Corporate Structure | (2) The Company completed a “second step” conversion to a fully public stock holding company on July 11, 2012. The Bank is a wholly owned subsidiary of the Company. Georgetown Securities Corporation, established in 1995 as a Massachusetts securities corporation for the purpose of buying, selling and holding securities on its own behalf, is a wholly owned subsidiary of the Bank. On October 5, 2016, Salem Five Bancorp, a Massachusetts mutual holding company, Bright Star, Inc., a Maryland corporation and wholly-owned subsidiary of Salem Five Bancorp, and the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Bright Star, Inc. will merge with and into the Company. Shareholders of the Company will receive $26.00 in cash in exchange for each share of Company common stock they own. Salem Five Bancorp has received all regulatory approvals to allow it to proceed with the acquisition of the Company. The transaction is expected to be completed by May 23, 2017. Immediately following this, the Bank will merge with and into Salem Five Bancorp’s wholly-owned subsidiary, Salem Five Cents Savings Bank (“Salem Five Bank”). Immediately following the merger of the two banks, the Company shall dissolve and liquidate into Salem Five Bancorp. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Common Share | |
Earnings Per Common Share | (3) The Company has adopted the Earnings Per Share (“EPS”) guidance included in Accounting Standards Codification (“ASC”) 260-10. As presented below, basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For purposes of computing diluted EPS, the treasury stock method is used. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Earnings per common share have been computed based on the following: Three Months Ended March 31, 2017 2016 (In thousands, except share and per share data) Net income available to common stockholders $ 278 $ 80 Basic common shares: Weighted average shares outstanding 1,799,280 1,788,005 Less: Weighted average unallocated ESOP shares (71,769) (79,009) Add: Weighted average unvested restricted stock shares with non-forfeitable dividend rights 39,720 45,529 Basic weighted average common shares outstanding 1,767,231 1,754,525 Dilutive potential common shares 38,290 4,506 Diluted weighted average common shares outstanding 1,805,521 1,759,031 Basic earnings per share $ 0.16 $ 0.05 Diluted earnings per share $ 0.15 $ 0.05 Options to purchase 122,775 shares, representing all outstanding options, were included in the computation of diluted earnings per share for the three months ended March 31, 2017 and 2016. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2017 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Recent Accounting Pronouncements | (4) In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in this ASU address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments and makes targeted improvements to GAAP as follows: 1. 2. 3. 4. 5. 6. 7. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption of item 5 above is permitted as of the fiscal years or interim periods for which financial statements have not yet been issued. Early adoption of all other amendments in this ASU is not permitted. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU was issued to increase transparency and comparability among organizations by requiring reporting entities to recognize all leases, including operating, as lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The amendments in this ASU are effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. Under this ASU, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. The guidance also eliminates the requirement that excess tax benefits be realized before companies can recognize them. In addition, the guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. The guidance will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance will also require an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows (current guidance did not specify how these cash flows should be classified) and permit companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. The Company realized a $42,000 tax benefit during the three months ended March 31, 2017 related to share based compensation. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU includes provisions intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by the entity. In order to achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted in interim and annual reporting periods beginning after December 15, 2018. Any increase in the allowance for loan losses or expenses incurred to determine the appropriate level of allowance for loan losses may have a material adverse effect on the Company’s financial condition and results of operations. The Company is currently evaluating the provisions of ASU 2016-13 to determine the potential impact the new standard will have on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This ASU amends the amortization period for certain callable debt securities held at a premium. The amendment shortens the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles, the premium is generally amortized as an adjustment of yield over the contractual life of the instrument. The amendments in this ASU are effective for public entities for fiscal years beginning after December 31, 2018, including interim periods within those fiscal years. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2017 | |
Securities | |
Securities | (5) A summary of securities is as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) At March 31, 2017 Securities available for sale State and municipal $ 2,350 $ 48 $ (3) $ 2,395 Residential mortgage-backed securities 16,501 71 (120) 16,452 Total securities available for sale $ 18,851 $ 119 $ (123) $ 18,847 Securities held to maturity State and municipal $ 569 $ — $ (5) $ 564 Residential mortgage-backed securities 1,893 2 (6) 1,889 Total securities held to maturity $ 2,462 $ 2 $ (11) $ 2,453 At December 31, 2016 Securities available for sale State and municipal $ 2,362 $ 27 $ (4) $ 2,385 Residential mortgage-backed securities 17,472 57 (142) 17,387 Total securities available for sale $ 19,834 $ 84 $ (146) $ 19,772 Securities held to maturity State and municipal $ 570 $ — $ (5) $ 565 Residential mortgage-backed securities 1,933 3 (11) 1,925 Total securities held to maturity $ 2,503 $ 3 $ (16) $ 2,490 All residential mortgage-backed securities have been issued by government-sponsored enterprises. The amortized cost and estimated fair value of debt securities by contractual maturity at March 31, 2017 is as follows. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value (In thousands) After five years through ten years $ 525 $ 537 $ — $ — Over ten years 1,825 1,858 569 564 2,350 2,395 569 564 Residential mortgage-backed securities 16,501 16,452 1,893 1,889 $ 18,851 $ 18,847 $ 2,462 $ 2,453 There were no sales of securities for the three months ended March 31, 2017 and 2016. Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous loss position, is as follows: Less Than Twelve Months Twelve Months Or Longer Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) At March 31, 2017 Securities available for sale State and municipal $ (3) $ 239 $ — $ — Residential mortgage-backed securities (120) 8,245 — — Total securities available for sale (123) 8,484 — — Securities held to maturity State and municipal (5) 564 — — Residential mortgage-backed securities (6) 1,869 — — Total securities held to maturity (11) 2,433 — — Total temporarily impaired securities $ (134) $ 10,917 $ — $ — At December 31, 2016 Securities available for sale State and municipal $ (4) $ 512 $ — $ — Residential mortgage-backed securities (142) 8,718 — — Total securities available for sale (146) 9,230 — — Securities held to maturity State and municipal (5) 565 — — Residential mortgage-backed securities (11) 1,898 — — Total securities held to maturity (16) 2,463 — — Total temporarily impaired securities $ (162) $ 11,693 $ — $ — Each reporting period, the Company evaluates all securities classified as available for sale or held to maturity with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary. The Company believes that the unrealized losses on ten securities at March 31, 2017 in the table above were primarily caused by changes in interest rates and not by credit quality. Seven of the investments are guaranteed by the U.S. Government or its agencies and the three remaining municipal securities were issued by the city of New York, and the school districts of Circleville and Fremont, Ohio. Management has not decided to sell these securities, nor is it likely that the Company will be required to sell the securities; as such no declines are deemed to be other-than-temporary. |
LOANS AND SERVICING
LOANS AND SERVICING | 3 Months Ended |
Mar. 31, 2017 | |
Loans and Servicing | |
Loans and Servicing | (6) Loans A summary of loans is as follows: At At March 31, December 31, 2017 2016 Amount Percent Amount Percent (Dollars in thousands) Residential loans: One- to four-family $ 92,869 % $ 90,190 % Home equity loans and lines of credit 15,468 15,879 Total residential mortgage loans 108,337 106,069 Commercial loans: One- to four-family investment property 14,400 13,081 Multi-family real estate 30,214 30,748 Commercial real estate 83,390 83,583 Commercial business 23,851 20,675 Total commercial loans 151,855 148,087 Construction loans: One- to four-family 9,368 12,599 Multi-family 4,505 5,725 Non-residential 7,454 6,830 Total construction loans 21,327 25,154 Consumer 150 182 Total loans 281,669 % 279,492 % Other items: Net deferred loan costs 540 484 Allowance for loan losses (2,642) (2,605) Total loans, net $ 279,567 $ 277,371 An analysis of the allowance for loan losses for the three months ended March 31, 2017 and 2016 and at March 31, 2017 and December 31, 2016 is below. For additional information please refer to Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations. Residential Commercial Construction One‑ to four‑ Home equity family One‑ to four‑ loans and investment Multi‑family Commercial Commercial One‑ to four‑ Non- family lines of credit property real estate real estate business family Multi‑family residential Consumer Unallocated Total (In thousands) Allowance for loan losses Three Months Ended March 31, 2017 Beginning Balance $ 171 $ 238 $ 79 $ 234 $ 1,262 $ 364 $ 104 $ 47 $ 104 $ 2 $ — $ 2,605 Charge-offs — — — — — — — — — (3) — (3) Recoveries — 1 — — — — — — — — — 1 Provision (benefit) 5 (7) 7 (4) (3) 55 (22) (10) 10 2 6 39 Ending Balance $ 176 $ 232 $ 86 $ 230 $ 1,259 $ 419 $ 82 $ 37 $ 114 $ 1 $ 6 $ 2,642 Three Months Ended March 31, 2016 Beginning Balance $ 197 $ 276 $ 90 $ 233 $ 1,021 $ 305 $ 113 $ 12 $ 91 $ 2 $ 68 $ 2,408 Charge-offs — — — — — — — — — — — — Recoveries — 1 — — — — — — — — — 1 (Benefit) provision (17) (17) (7) (7) 105 33 26 2 6 — (50) 74 Ending Balance $ 180 $ 260 $ 83 $ 226 $ 1,126 $ 338 $ 139 $ 14 $ 97 $ 2 $ 18 $ 2,483 At March 31, 2017 Allowance for loan losses Individually evaluated for impairment $ — $ — $ 7 $ — $ — $ — $ — $ — $ — $ — $ — $ 7 Collectively evaluated for impairment 176 232 79 230 1,259 419 82 37 114 1 6 2,635 $ 176 $ 232 $ 86 $ 230 $ 1,259 $ 419 $ 82 $ 37 $ 114 $ 1 $ 6 $ 2,642 Loans Individually evaluated for impairment $ 1,529 $ 296 $ 85 $ — $ 278 $ — $ — $ — $ — $ — $ — $ 2,188 Collectively evaluated for impairment 91,340 15,172 14,315 30,214 83,112 23,851 9,368 4,505 7,454 150 — 279,481 $ 92,869 $ 15,468 $ 14,400 $ 30,214 $ 83,390 $ 23,851 $ 9,368 $ 4,505 $ 7,454 $ 150 $ — $ 281,669 At December 31, 2016 Allowance for loan losses Individually evaluated for impairment $ — $ — $ 7 $ — $ — $ — $ — $ — $ — $ — $ — $ 7 Collectively evaluated for impairment 171 238 72 234 1,262 364 104 47 104 2 — 2,598 $ 171 $ 238 $ 79 $ 234 $ 1,262 $ 364 $ 104 $ 47 $ 104 $ 2 $ — $ 2,605 Loans Individually evaluated for impairment $ 1,543 $ 143 $ 85 $ — $ 281 $ — $ — $ — $ — $ — $ — $ 2,052 Collectively evaluated for impairment 88,647 15,736 12,996 30,748 83,302 20,675 12,599 5,725 6,830 182 — 277,440 $ 90,190 $ 15,879 $ 13,081 $ 30,748 $ 83,583 $ 20,675 $ 12,599 $ 5,725 $ 6,830 $ 182 $ — $ 279,492 The following is a summary of past-due and non-accrual loans at March 31, 2017 and December 31, 2016. For additional information please refer to Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations. Loans delinquent for: 90 days 90 days Total Total Total or more Non-accrual 30 - 59 Days 60 - 89 Days or more Past Due Current Loans and accruing Loans (In thousands) At March 31, 2017 Residential loans: One- to four-family $ — $ — $ 742 $ 742 $ 92,127 $ 92,869 $ — $ 742 Home equity loans and lines of credit 40 157 — 197 15,271 15,468 — 195 Commercial loans: One- to four-family investment property — — — — 14,400 14,400 — — Multi-family real estate — — — — 30,214 30,214 — — Commercial real estate — — — — 83,390 83,390 — — Commercial business — — — — 23,851 23,851 — — Construction loans: One- to four-family — — — — 9,368 9,368 — — Multi-family — — — — 4,505 4,505 — — Non-residential — — — — 7,454 7,454 — — Consumer — — — — 150 150 — — Total $ 40 $ 157 $ 742 $ 939 $ 280,730 $ 281,669 $ — $ 937 Loans delinquent for: 90 days 90 days Total Total Total or more Non-accrual 30 - 59 Days 60 - 89 Days or more Past Due Current Loans and accruing Loans (In thousands) At December 31, 2016 Residential loans: One- to four-family $ — $ — $ 755 $ 755 $ 89,435 $ 90,190 $ — $ 755 Home equity loans and lines of credit 191 20 41 252 15,627 15,879 — 198 Commercial loans: One- to four-family investment property — — — — 13,081 13,081 — — Multi-family real estate — — — — 30,748 30,748 — — Commercial real estate — — — — 83,583 83,583 — — Commercial business — — — — 20,675 20,675 — — Construction loans: One- to four-family — — — — 12,599 12,599 — — Multi-family — — — — 5,725 5,725 — — Non-residential — — — — 6,830 6,830 — — Consumer 7 3 — 10 172 182 — — Total $ 198 $ 23 $ 796 $ 1,017 $ 278,475 $ 279,492 $ — $ 953 The following is a summary of impaired loans at March 31, 2017 and December 31, 2016, and for the threee months and year then ended, respectively. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) At March 31, 2017 Impaired loans without a valuation allowance Residential loans: One- to four-family $ 1,529 $ 1,549 $ — $ 1,536 $ 14 Home equity loans and lines of credit 296 296 — 220 1 Commercial loans: One- to four-family investment property — — — — — Multi-family real estate — — — — — Commercial real estate 278 278 — 280 4 Commercial business — — — — — Construction loans: One- to four-family — — — — — Multi-family — — — — — Non-residential — — — — — Consumer — — — — — Total impaired with no related allowance $ 2,103 $ 2,123 $ — $ 2,036 $ 19 Impaired loans with a valuation allowance Residential loans: One- to four-family $ — $ — $ — $ — $ — Home equity loans and lines of credit — — — — — Commercial loans: One- to four-family investment property 85 85 7 85 1 Multi-family real estate — — — — — Commercial real estate — — — — — Commercial business — — — — — Construction loans: One- to four-family — — — — — Multi-family — — — — — Non-residential — — — — — Consumer — — — — — Total with an allowance recorded $ 85 $ 85 $ 7 $ 85 $ 1 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) At December 31, 2016 Impaired loans without a valuation allowance Residential loans: One- to four-family $ 1,543 $ 1,555 $ — $ 1,560 $ 42 Home equity loans and lines of credit 143 143 — 109 5 Commercial loans: One- to four-family investment property — — — — — Multi-family real estate — — — — — Commercial real estate 281 281 — 284 17 Commercial business — — — — — Construction loans: One- to four-family — — — — — Multi-family — — — — — Non-residential — — — — — Consumer — — — — — Total impaired with no related allowance $ 1,967 $ 1,979 $ — $ 1,953 $ 64 Impaired loans with a valuation allowance Residential loans: One- to four-family $ — $ — $ — $ — $ — Home equity loans and lines of credit — — — — — Commercial loans: One- to four-family investment property 85 85 7 87 4 Multi-family real estate — — — — — Commercial real estate — — — — — Commercial business — — — — — Construction loans: One- to four-family — — — — — Multi-family — — — — — Non-residential — — — — — Consumer — — — — — Total with an allowance recorded $ 85 $ 85 $ 7 $ 87 $ 4 The Company made no loan modifications that resulted in a troubled debt restructuring (“TDR”) during the three months ended March 31, 2017 and 2016. At March 31, 2017, there were no commitments to lend additional funds to borrowers whose loans were previously modified in TDRs. At March 31, 2017 and December 31, 2016, there were no TDR loans in default of their modified terms. The Company has one residential loan in the process of foreclosure with a recorded balance of $157,000 at March 31, 2017. The following table represents the Company’s loans by risk rating at March 31, 2017 and December 31, 2016. For additional information please refer to Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations. Residential Commercial Construction One ‑ to four ‑ Home equity family One ‑ to four ‑ loans and lines investment Multi ‑ family Commercial Commercial One ‑ to four ‑ Non- family of credit property real estate real estate business family Multi ‑ family residential Consumer Total (In thousands) At March 31, 2017 Classification: Not formally rated $ $ 15,193 $ — $ — $ — $ — $ — $ — $ — $ 150 $ 106,559 Pass — — 14,315 30,214 82,360 23,467 9,368 4,505 7,454 — 171,683 Special mention — — — — — — — — — — — Substandard 275 85 — 1,030 384 — — — — 3,427 Doubtful — — — — — — — — — — — Loss — — — — — — — — — — — Total loans $ $ $ $ $ $ $ $ $ $ $ At December 31, 2016 Classification: Not formally rated $ $ 15,601 $ — $ — $ — $ — $ — $ — $ — $ 182 $ 104,305 Pass — — 12,996 30,748 82,873 20,526 12,599 5,725 6,830 — 172,297 Special mention — — — — — — — — — — — Substandard 278 85 — 710 149 — — — — 2,890 Doubtful — — — — — — — — — — — Loss — — — — — — — — — — — Total loans $ $ $ $ $ $ $ $ $ $ $ Credit Quality Information The Bank utilizes a nine grade internal loan rating system for all commercial and construction loans as follows: Loans rated 1 - 5: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 6: Loans in this category are considered “special mention.” These loans have risk profiles that are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 7: Loans in this category are considered “substandard.” These loans have a well defined weakness that jeopardizes the liquidation of the debt and is inadequately protected by the current sound worth and paying capacity of the borrower or pledged collateral. There is a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans rated 8: 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 9: Loans in this category are considered a “loss.” The loan has been determined to be uncollectible and the chance of loss is inevitable. Loans in this category will be charged-off. On an annual basis, or more often if needed, the Bank formally reviews the ratings on all commercial and construction loans with a one-obligor exposure greater than $350,000. In addition, a complete financial review is performed for any commercial relationship (regardless of one-obligor exposure) reporting a revolving line of credit facility greater than $150,000. More frequent reviews shall be performed depending on the quality rating of the relationship. For commercial relationships which report a current one-obligor exposure equal to or less than $350,000, and have a “Pass” risk rating, the annual review shall be more limited in scope. Loans serviced for others and mortgage servicing rights Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $80.9 million and $83.2 million at March 31, 2017 and December 31, 2016, respectively. The risks inherent in the mortgage servicing assets relate primarily to changes in prepayments that result from shifts in mortgage interest rates. The fair value of servicing rights was $580,000 and $601,000 at March 31, 2017 and December 31, 2016, respectively, and was determined using the moving average 10-year, U.S. Treasury rate plus 5.0%, adjusted to reflect the current credit spreads and conditions in the market as a discount rate. Prepayment assumptions, which are impacted by loan rates and terms, are calculated using a moving average of prepayment data published by the Securities Industry and Financial Markets Association and an independent third party proprietary analysis of prepayment rates embedded in liquid mortgage securities markets and modeled against the serviced loan portfolio by the independent third party valuation specialist. The following summarizes mortgage servicing rights capitalized and amortized, along with the aggregate activity related to valuation allowances. Three Months Ended March 31, 2017 2016 (In thousands) Mortgage servicing rights: Balance at beginning of period $ 242 $ 523 Additions — — Amortization (53) (78) Balance at end of period 189 445 Valuation allowance: Balance at beginning of period 6 4 Additions 1 12 Reductions — — Balance at end of period 7 16 Mortgage servicing rights, net $ 182 $ 429 Fair value of mortgage servicing rights $ 580 $ 799 |
SECURED BORROWINGS AND COLLATER
SECURED BORROWINGS AND COLLATERAL | 3 Months Ended |
Mar. 31, 2017 | |
Secured Borrowings and Collateral | |
Secured Borrowings and Collateral | (7) Federal Home Loan Bank advances At March 31, 2017, all Federal Home Loan Bank of Boston (“FHLB”) advances were secured by a blanket security agreement on qualified collateral, principally first mortgage loans on owner-occupied residential property of $79.4 million, commercial real estate loans in the amount of $23.8 million and mortgage-backed securities with a fair value of $18.3 million. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | (8) The Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: Level l - Valuation is based on quoted prices in active markets for identical assets or liabilities. Level l assets and liabilities generally include debt and equity securities that are traded in an active exchange market. At March 31, 2017, the Company had no assets or liabilities valued using Level 1 measurements. Level 2 - Valuation is based on observable inputs other than Level l prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 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 or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. All of the Company’s securities that are measured at fair value are included in Level 2 and are based on pricing models from independent, third party pricing services that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. There are no liabilities measured at fair value. All of the Company’s impaired loans that are measured at fair value are included in Level 3 and are based on the appraised value of the underlying collateral considering discounting factors, if deemed appropriate, and adjusted for selling costs. These appraised values may be discounted based on management’s historical knowledge, expertise or changes in market conditions from time of valuation. The Company did not have any significant transfers of assets or liabilities to or from Levels 1 and 2 of the fair value hierarchy during the three-month period ended March 31, 2017. Assets and liabilities measured at fair value on a recurring basis at March 31, 2017 and December 31, 2016 are summarized below. Total Assets Level 1 Level 2 Level 3 at Fair Value (In thousands) At March 31, 2017 Assets Securities available for sale State and municipal $ — $ 2,395 $ — $ 2,395 Residential mortgage-backed securities — 16,452 — 16,452 Total securities available for sale $ — $ 18,847 $ — $ 18,847 At December 31, 2016 Assets Securities available for sale State and municipal $ — $ 2,385 $ — $ 2,385 Residential mortgage-backed securities — 17,387 — 17,387 Total securities available for sale $ — $ 19,772 $ — $ 19,772 The Company may also be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. Assets measured at fair value on a non-recurring basis at March 31, 2017 and December 31, 2016 are summarized below. The fair value adjustments relate to the amount of write-down recorded or related allowance recorded as of March 31, 2017 and December 31, 2016. Assets Adjustments Level 1 Level 2 Level 3 at Fair Value to Fair Value (In thousands) At March 31, 2017 Impaired loans $ — $ — $ 78 $ 78 $ (7) Assets Adjustments Level 1 Level 2 Level 3 At Fair Value to Fair Value (In thousands) At December 31, 2016 Impaired loans $ — $ — $ 78 $ 78 $ (7) The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments. Cash and cash equivalents : The carrying amounts of cash and short-term investments approximate fair values. Securities : Fair values for the Company’s debt securities are based on pricing 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. FHLB and Bankers Bank Northeast (BBN) stock : Fair value is based on redemption provisions of the FHLB and BBN. The FHLB and BBN stock have no quoted market value. Loans : For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans are estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for impaired loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Capitalized mortgage servicing rights : Fair value is based on a quarterly, independent third-party valuation model that calculates the present value of estimated future net servicing income. The model utilizes a variety of assumptions, the most significant of which are loan prepayment assumptions and the discount rate used to discount future cash flows. Prepayment assumptions, which are impacted by loan rates and terms, are calculated using a moving average of prepayment data published by the Securities Industry and Financial Markets Association and a third party proprietary analysis of prepayment rates embedded in liquid mortgage securities markets and modeled against the serviced loan portfolio by the independent third party valuation specialist. The discount rate is the moving average 10-year, U.S. Treasury rate plus 5.0% adjusted to reflect the current credit spreads and conditions in the market. Other assumptions include delinquency rates, foreclosure rates, servicing cost inflation, and annual unit loan cost. All assumptions are adjusted periodically to reflect current circumstances and all are obtained from independent market sources. Deposits : The fair values for non-certificate accounts are, by definition, equal to the amount payable on demand at the reporting date which is the carrying amount. Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Short-term FHLB advances : The fair value of short-term FHLB advances approximates carrying value, as they generally mature within 90 days. Long-term FHLB advances : The fair value for long-term FHLB advances is estimated using discounted cash flow analyses based on current market borrowing rates for similar types of borrowing arrangements. Mortgagors’ escrow accounts : The fair value of mortgagors’ escrow accounts approximates carrying value. Accrued interest : The carrying amounts of accrued interest approximate fair value. Off-balance-sheet instruments : The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portion of loans, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date. At March 31, 2017 and December 31, 2016, the fair value of commitments outstanding is not significant since fees charged are not material. The estimated fair values and related carrying amounts of the Company’s financial instruments at March 31, 2017 and December 31, 2016 are as follows. March 31, 2017 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Cash and cash equivalents $ 8,153 $ 8,153 $ — $ — $ 8,153 Securities available for sale 18,847 — 18,847 — 18,847 Securities held to maturity 2,462 — 2,453 — 2,453 FHLB stock 2,751 2,751 — — 2,751 BBN stock 60 60 — — 60 Loans, net 279,567 — — 277,713 277,713 Accrued interest receivable 826 826 — — 826 Capitalized mortgage servicing rights 182 — 580 — 580 Financial liabilities: Deposits $ 240,530 $ — $ 241,273 $ — $ 241,273 Short-term FHLB advances 21,000 21,000 — — 21,000 Long-term FHLB advances 23,600 — 23,679 — 23,679 Mortgagors’ escrow accounts 1,973 1,973 — — 1,973 Accrued interest payable 62 62 — — 62 December 31, 2016 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Cash and cash equivalents $ 6,129 $ 6,129 $ — $ — $ 6,129 Securities available for sale 19,772 — 19,772 — 19,772 Securities held to maturity 2,503 — 2,490 — 2,490 FHLB stock 2,341 2,341 — — 2,341 BBN stock 60 60 — — 60 Loans held for sale 271 275 — — 275 Loans, net 277,371 — — 275,824 275,824 Accrued interest receivable 816 816 — — 816 Capitalized mortgage servicing rights 236 — 601 — 601 Financial liabilities: Deposits $ 240,508 $ — $ 241,264 $ — $ 241,264 Short-term FHLB advances 17,250 17,250 — — 17,250 Long-term FHLB advances 24,600 — 24,699 — 24,699 Mortgagors’ escrow accounts 1,633 1,633 — — 1,633 Accrued interest payable 58 58 — — 58 |
EQUITY INCENTIVE PLANS
EQUITY INCENTIVE PLANS | 3 Months Ended |
Mar. 31, 2017 | |
Equity Incentive Plans | |
Equity Incentive Plans | (9) At March 31, 2017, the Company had two equity incentive plans, the 2009 Equity Plan and the 2014 Equity Plan. Both plans were described more fully in Note 12 of the consolidated financial statements for the year ended December 31, 2016. The following tables present the activity for the 2009 and 2014 Equity Plans as of and for the three months ended March 31, 2017. Stock Options 2017 Weighted Average Number of Exercise Shares Price Outstanding at beginning of year 122,775 $ 15.49 Outstanding at end of period 122,775 $ 15.49 Exercisable at end of period 74,477 Aggregate intrinsic value of outstanding options at end of period $ 1,278,000 Options Outstanding Options Exercisable Number Weighted-Average Weighted Number Weighted Outstanding Remaining Average Exercisable Average as of 3/31/2017 Contractual Life Exercise Price as of 3/31/2017 Exercise Price 8,712 2.90 Years $ 8,712 $ 9,683 3.90 Years $ 9,683 $ 8,570 4.90 Years $ 8,570 $ 15,200 5.90 Years $ 12,850 $ 17,110 6.90 Years $ 12,446 $ 30,000 7.90 Years $ 14,400 $ 33,500 8.90 Years $ 7,816 $ 122,775 6.91 Years $ 74,477 $ Non-vested Restricted Stock 2017 Weighted Average Number of Grant Date Shares Value Outstanding at beginning of year 46,449 $ 17.00 Vested (16,373) $ 15.99 Outstanding at end of period 30,076 $ 17.56 As of March 31, 2017, unrecognized share-based compensation expense related to non-vested options amounted to $278,000 and the unrecognized share-based compensation expense related to non-vested restricted stock amounted to $511,000. The unrecognized expense related to the non-vested options and non-vested restricted stock will be recognized over a weighted average period of 3.0 and 2.8 years, respectively. For the three months ended March 31, 2017, the Company recognized compensation expense for stock options of $31,000 with a related tax benefit of $4,000. The related tax benefit applies only to non-qualified stock options. For the three months ended March 31, 2017, the Company recognized compensation expense for restricted stock awards of $63,000 with a related tax benefit of $25,000. The Company declared a quarterly cash dividend of $0.05 per share of common stock on April 24, 2017. The dividend will be paid on or about May 22, 2017, to stockholders of record as of the close of business on May 8, 2017. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. |
EARNINS PER COMMON SHARE (Table
EARNINS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Common Share | |
Schedule of basis of computation of earnings per common share | Three Months Ended March 31, 2017 2016 (In thousands, except share and per share data) Net income available to common stockholders $ 278 $ 80 Basic common shares: Weighted average shares outstanding 1,799,280 1,788,005 Less: Weighted average unallocated ESOP shares (71,769) (79,009) Add: Weighted average unvested restricted stock shares with non-forfeitable dividend rights 39,720 45,529 Basic weighted average common shares outstanding 1,767,231 1,754,525 Dilutive potential common shares 38,290 4,506 Diluted weighted average common shares outstanding 1,805,521 1,759,031 Basic earnings per share $ 0.16 $ 0.05 Diluted earnings per share $ 0.15 $ 0.05 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Securities | |
Summary of securities | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) At March 31, 2017 Securities available for sale State and municipal $ 2,350 $ 48 $ (3) $ 2,395 Residential mortgage-backed securities 16,501 71 (120) 16,452 Total securities available for sale $ 18,851 $ 119 $ (123) $ 18,847 Securities held to maturity State and municipal $ 569 $ — $ (5) $ 564 Residential mortgage-backed securities 1,893 2 (6) 1,889 Total securities held to maturity $ 2,462 $ 2 $ (11) $ 2,453 At December 31, 2016 Securities available for sale State and municipal $ 2,362 $ 27 $ (4) $ 2,385 Residential mortgage-backed securities 17,472 57 (142) 17,387 Total securities available for sale $ 19,834 $ 84 $ (146) $ 19,772 Securities held to maturity State and municipal $ 570 $ — $ (5) $ 565 Residential mortgage-backed securities 1,933 3 (11) 1,925 Total securities held to maturity $ 2,503 $ 3 $ (16) $ 2,490 |
Schedule of maturities of debt securities | Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value (In thousands) After five years through ten years $ 525 $ 537 $ — $ — Over ten years 1,825 1,858 569 564 2,350 2,395 569 564 Residential mortgage-backed securities 16,501 16,452 1,893 1,889 $ 18,851 $ 18,847 $ 2,462 $ 2,453 |
Schedule of securities with gross unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous loss position | Less Than Twelve Months Twelve Months Or Longer Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (In thousands) At March 31, 2017 Securities available for sale State and municipal $ (3) $ 239 $ — $ — Residential mortgage-backed securities (120) 8,245 — — Total securities available for sale (123) 8,484 — — Securities held to maturity State and municipal (5) 564 — — Residential mortgage-backed securities (6) 1,869 — — Total securities held to maturity (11) 2,433 — — Total temporarily impaired securities $ (134) $ 10,917 $ — $ — At December 31, 2016 Securities available for sale State and municipal $ (4) $ 512 $ — $ — Residential mortgage-backed securities (142) 8,718 — — Total securities available for sale (146) 9,230 — — Securities held to maturity State and municipal (5) 565 — — Residential mortgage-backed securities (11) 1,898 — — Total securities held to maturity (16) 2,463 — — Total temporarily impaired securities $ (162) $ 11,693 $ — $ — |
LOANS AND SERVICING (Tables)
LOANS AND SERVICING (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loans and Servicing | |
Summary of loans | At At March 31, December 31, 2017 2016 Amount Percent Amount Percent (Dollars in thousands) Residential loans: One- to four-family $ 92,869 % $ 90,190 % Home equity loans and lines of credit 15,468 15,879 Total residential mortgage loans 108,337 106,069 Commercial loans: One- to four-family investment property 14,400 13,081 Multi-family real estate 30,214 30,748 Commercial real estate 83,390 83,583 Commercial business 23,851 20,675 Total commercial loans 151,855 148,087 Construction loans: One- to four-family 9,368 12,599 Multi-family 4,505 5,725 Non-residential 7,454 6,830 Total construction loans 21,327 25,154 Consumer 150 182 Total loans 281,669 % 279,492 % Other items: Net deferred loan costs 540 484 Allowance for loan losses (2,642) (2,605) Total loans, net $ 279,567 $ 277,371 |
Schedule of information pertaining to the allowance for loan losses | Residential Commercial Construction One‑ to four‑ Home equity family One‑ to four‑ loans and investment Multi‑family Commercial Commercial One‑ to four‑ Non- family lines of credit property real estate real estate business family Multi‑family residential Consumer Unallocated Total (In thousands) Allowance for loan losses Three Months Ended March 31, 2017 Beginning Balance $ 171 $ 238 $ 79 $ 234 $ 1,262 $ 364 $ 104 $ 47 $ 104 $ 2 $ — $ 2,605 Charge-offs — — — — — — — — — (3) — (3) Recoveries — 1 — — — — — — — — — 1 Provision (benefit) 5 (7) 7 (4) (3) 55 (22) (10) 10 2 6 39 Ending Balance $ 176 $ 232 $ 86 $ 230 $ 1,259 $ 419 $ 82 $ 37 $ 114 $ 1 $ 6 $ 2,642 Three Months Ended March 31, 2016 Beginning Balance $ 197 $ 276 $ 90 $ 233 $ 1,021 $ 305 $ 113 $ 12 $ 91 $ 2 $ 68 $ 2,408 Charge-offs — — — — — — — — — — — — Recoveries — 1 — — — — — — — — — 1 (Benefit) provision (17) (17) (7) (7) 105 33 26 2 6 — (50) 74 Ending Balance $ 180 $ 260 $ 83 $ 226 $ 1,126 $ 338 $ 139 $ 14 $ 97 $ 2 $ 18 $ 2,483 At March 31, 2017 Allowance for loan losses Individually evaluated for impairment $ — $ — $ 7 $ — $ — $ — $ — $ — $ — $ — $ — $ 7 Collectively evaluated for impairment 176 232 79 230 1,259 419 82 37 114 1 6 2,635 $ 176 $ 232 $ 86 $ 230 $ 1,259 $ 419 $ 82 $ 37 $ 114 $ 1 $ 6 $ 2,642 Loans Individually evaluated for impairment $ 1,529 $ 296 $ 85 $ — $ 278 $ — $ — $ — $ — $ — $ — $ 2,188 Collectively evaluated for impairment 91,340 15,172 14,315 30,214 83,112 23,851 9,368 4,505 7,454 150 — 279,481 $ 92,869 $ 15,468 $ 14,400 $ 30,214 $ 83,390 $ 23,851 $ 9,368 $ 4,505 $ 7,454 $ 150 $ — $ 281,669 At December 31, 2016 Allowance for loan losses Individually evaluated for impairment $ — $ — $ 7 $ — $ — $ — $ — $ — $ — $ — $ — $ 7 Collectively evaluated for impairment 171 238 72 234 1,262 364 104 47 104 2 — 2,598 $ 171 $ 238 $ 79 $ 234 $ 1,262 $ 364 $ 104 $ 47 $ 104 $ 2 $ — $ 2,605 Loans Individually evaluated for impairment $ 1,543 $ 143 $ 85 $ — $ 281 $ — $ — $ — $ — $ — $ — $ 2,052 Collectively evaluated for impairment 88,647 15,736 12,996 30,748 83,302 20,675 12,599 5,725 6,830 182 — 277,440 $ 90,190 $ 15,879 $ 13,081 $ 30,748 $ 83,583 $ 20,675 $ 12,599 $ 5,725 $ 6,830 $ 182 $ — $ 279,492 |
Summary of past-due and non-accrual loans | Loans delinquent for: 90 days 90 days Total Total Total or more Non-accrual 30 - 59 Days 60 - 89 Days or more Past Due Current Loans and accruing Loans (In thousands) At March 31, 2017 Residential loans: One- to four-family $ — $ — $ 742 $ 742 $ 92,127 $ 92,869 $ — $ 742 Home equity loans and lines of credit 40 157 — 197 15,271 15,468 — 195 Commercial loans: One- to four-family investment property — — — — 14,400 14,400 — — Multi-family real estate — — — — 30,214 30,214 — — Commercial real estate — — — — 83,390 83,390 — — Commercial business — — — — 23,851 23,851 — — Construction loans: One- to four-family — — — — 9,368 9,368 — — Multi-family — — — — 4,505 4,505 — — Non-residential — — — — 7,454 7,454 — — Consumer — — — — 150 150 — — Total $ 40 $ 157 $ 742 $ 939 $ 280,730 $ 281,669 $ — $ 937 Loans delinquent for: 90 days 90 days Total Total Total or more Non-accrual 30 - 59 Days 60 - 89 Days or more Past Due Current Loans and accruing Loans (In thousands) At December 31, 2016 Residential loans: One- to four-family $ — $ — $ 755 $ 755 $ 89,435 $ 90,190 $ — $ 755 Home equity loans and lines of credit 191 20 41 252 15,627 15,879 — 198 Commercial loans: One- to four-family investment property — — — — 13,081 13,081 — — Multi-family real estate — — — — 30,748 30,748 — — Commercial real estate — — — — 83,583 83,583 — — Commercial business — — — — 20,675 20,675 — — Construction loans: One- to four-family — — — — 12,599 12,599 — — Multi-family — — — — 5,725 5,725 — — Non-residential — — — — 6,830 6,830 — — Consumer 7 3 — 10 172 182 — — Total $ 198 $ 23 $ 796 $ 1,017 $ 278,475 $ 279,492 $ — $ 953 |
Schedule of analysis of impaired loans | Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) At March 31, 2017 Impaired loans without a valuation allowance Residential loans: One- to four-family $ 1,529 $ 1,549 $ — $ 1,536 $ 14 Home equity loans and lines of credit 296 296 — 220 1 Commercial loans: One- to four-family investment property — — — — — Multi-family real estate — — — — — Commercial real estate 278 278 — 280 4 Commercial business — — — — — Construction loans: One- to four-family — — — — — Multi-family — — — — — Non-residential — — — — — Consumer — — — — — Total impaired with no related allowance $ 2,103 $ 2,123 $ — $ 2,036 $ 19 Impaired loans with a valuation allowance Residential loans: One- to four-family $ — $ — $ — $ — $ — Home equity loans and lines of credit — — — — — Commercial loans: One- to four-family investment property 85 85 7 85 1 Multi-family real estate — — — — — Commercial real estate — — — — — Commercial business — — — — — Construction loans: One- to four-family — — — — — Multi-family — — — — — Non-residential — — — — — Consumer — — — — — Total with an allowance recorded $ 85 $ 85 $ 7 $ 85 $ 1 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) At December 31, 2016 Impaired loans without a valuation allowance Residential loans: One- to four-family $ 1,543 $ 1,555 $ — $ 1,560 $ 42 Home equity loans and lines of credit 143 143 — 109 5 Commercial loans: One- to four-family investment property — — — — — Multi-family real estate — — — — — Commercial real estate 281 281 — 284 17 Commercial business — — — — — Construction loans: One- to four-family — — — — — Multi-family — — — — — Non-residential — — — — — Consumer — — — — — Total impaired with no related allowance $ 1,967 $ 1,979 $ — $ 1,953 $ 64 Impaired loans with a valuation allowance Residential loans: One- to four-family $ — $ — $ — $ — $ — Home equity loans and lines of credit — — — — — Commercial loans: One- to four-family investment property 85 85 7 87 4 Multi-family real estate — — — — — Commercial real estate — — — — — Commercial business — — — — — Construction loans: One- to four-family — — — — — Multi-family — — — — — Non-residential — — — — — Consumer — — — — — Total with an allowance recorded $ 85 $ 85 $ 7 $ 87 $ 4 |
Schedule of loans by risk rating | Residential Commercial Construction One ‑ to four ‑ Home equity family One ‑ to four ‑ loans and lines investment Multi ‑ family Commercial Commercial One ‑ to four ‑ Non- family of credit property real estate real estate business family Multi ‑ family residential Consumer Total (In thousands) At March 31, 2017 Classification: Not formally rated $ $ 15,193 $ — $ — $ — $ — $ — $ — $ — $ 150 $ 106,559 Pass — — 14,315 30,214 82,360 23,467 9,368 4,505 7,454 — 171,683 Special mention — — — — — — — — — — — Substandard 275 85 — 1,030 384 — — — — 3,427 Doubtful — — — — — — — — — — — Loss — — — — — — — — — — — Total loans $ $ $ $ $ $ $ $ $ $ $ At December 31, 2016 Classification: Not formally rated $ $ 15,601 $ — $ — $ — $ — $ — $ — $ — $ 182 $ 104,305 Pass — — 12,996 30,748 82,873 20,526 12,599 5,725 6,830 — 172,297 Special mention — — — — — — — — — — — Substandard 278 85 — 710 149 — — — — 2,890 Doubtful — — — — — — — — — — — Loss — — — — — — — — — — — Total loans $ $ $ $ $ $ $ $ $ $ $ |
Schedule of mortgage servicing rights capitalized and amortized | Three Months Ended March 31, 2017 2016 (In thousands) Mortgage servicing rights: Balance at beginning of period $ 242 $ 523 Additions — — Amortization (53) (78) Balance at end of period 189 445 Valuation allowance: Balance at beginning of period 6 4 Additions 1 12 Reductions — — Balance at end of period 7 16 Mortgage servicing rights, net $ 182 $ 429 Fair value of mortgage servicing rights $ 580 $ 799 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements | |
Summary of assets and liabilities measured at fair value on a recurring basis | Total Assets Level 1 Level 2 Level 3 at Fair Value (In thousands) At March 31, 2017 Assets Securities available for sale State and municipal $ — $ 2,395 $ — $ 2,395 Residential mortgage-backed securities — 16,452 — 16,452 Total securities available for sale $ — $ 18,847 $ — $ 18,847 At December 31, 2016 Assets Securities available for sale State and municipal $ — $ 2,385 $ — $ 2,385 Residential mortgage-backed securities — 17,387 — 17,387 Total securities available for sale $ — $ 19,772 $ — $ 19,772 |
Schedule of assets measured at fair value on a non-recurring basis | Assets Adjustments Level 1 Level 2 Level 3 at Fair Value to Fair Value (In thousands) At March 31, 2017 Impaired loans $ — $ — $ 78 $ 78 $ (7) Assets Adjustments Level 1 Level 2 Level 3 At Fair Value to Fair Value (In thousands) At December 31, 2016 Impaired loans $ — $ — $ 78 $ 78 $ (7) |
Schedule of estimated fair values and related carrying amounts of the Company's financial instruments | March 31, 2017 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Cash and cash equivalents $ 8,153 $ 8,153 $ — $ — $ 8,153 Securities available for sale 18,847 — 18,847 — 18,847 Securities held to maturity 2,462 — 2,453 — 2,453 FHLB stock 2,751 2,751 — — 2,751 BBN stock 60 60 — — 60 Loans, net 279,567 — — 277,713 277,713 Accrued interest receivable 826 826 — — 826 Capitalized mortgage servicing rights 182 — 580 — 580 Financial liabilities: Deposits $ 240,530 $ — $ 241,273 $ — $ 241,273 Short-term FHLB advances 21,000 21,000 — — 21,000 Long-term FHLB advances 23,600 — 23,679 — 23,679 Mortgagors’ escrow accounts 1,973 1,973 — — 1,973 Accrued interest payable 62 62 — — 62 December 31, 2016 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Cash and cash equivalents $ 6,129 $ 6,129 $ — $ — $ 6,129 Securities available for sale 19,772 — 19,772 — 19,772 Securities held to maturity 2,503 — 2,490 — 2,490 FHLB stock 2,341 2,341 — — 2,341 BBN stock 60 60 — — 60 Loans held for sale 271 275 — — 275 Loans, net 277,371 — — 275,824 275,824 Accrued interest receivable 816 816 — — 816 Capitalized mortgage servicing rights 236 — 601 — 601 Financial liabilities: Deposits $ 240,508 $ — $ 241,264 $ — $ 241,264 Short-term FHLB advances 17,250 17,250 — — 17,250 Long-term FHLB advances 24,600 — 24,699 — 24,699 Mortgagors’ escrow accounts 1,633 1,633 — — 1,633 Accrued interest payable 58 58 — — 58 |
EQUITY INCENTIVE PLANS (Tables)
EQUITY INCENTIVE PLANS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Incentive Plans | |
Schedule of activity for stock options | Stock Options 2017 Weighted Average Number of Exercise Shares Price Outstanding at beginning of year 122,775 $ 15.49 Outstanding at end of period 122,775 $ 15.49 Exercisable at end of period 74,477 Aggregate intrinsic value of outstanding options at end of period $ 1,278,000 |
Schedule of options outstanding and exercisable | Options Outstanding Options Exercisable Number Weighted-Average Weighted Number Weighted Outstanding Remaining Average Exercisable Average as of 3/31/2017 Contractual Life Exercise Price as of 3/31/2017 Exercise Price 8,712 2.90 Years $ 8,712 $ 9,683 3.90 Years $ 9,683 $ 8,570 4.90 Years $ 8,570 $ 15,200 5.90 Years $ 12,850 $ 17,110 6.90 Years $ 12,446 $ 30,000 7.90 Years $ 14,400 $ 33,500 8.90 Years $ 7,816 $ 122,775 6.91 Years $ 74,477 $ |
Schedule of activity for non-vested restricted stock | Non-vested Restricted Stock 2017 Weighted Average Number of Grant Date Shares Value Outstanding at beginning of year 46,449 $ 17.00 Vested (16,373) $ 15.99 Outstanding at end of period 30,076 $ 17.56 |
CORPORATE STRUCTURE (Details)
CORPORATE STRUCTURE (Details) | Oct. 05, 2016item$ / shares |
Conversion and reorganization to stock holding company | |
Number of banks prior to the merger | item | 2 |
Bright Star Inc. | |
Conversion and reorganization to stock holding company | |
Share price | $ / shares | $ 26 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Common Share | ||
Net income available to common stockholders | $ 278 | $ 80 |
Basic common shares: | ||
Weighted average shares outstanding | 1,799,280 | 1,788,005 |
Less: Weighted average unallocated ESOP shares | (71,769) | (79,009) |
Add: Weighted average unvested restricted stock shares with non-forfeitable dividend rights | 39,720 | 45,529 |
Basic weighted average common shares outstanding | 1,767,231 | 1,754,525 |
Dilutive potential common shares | 38,290 | 4,506 |
Diluted weighted average common shares outstanding | 1,805,521 | 1,759,031 |
Basic earnings per share (in dollars per share) | $ 0.16 | $ 0.05 |
Diluted earnings per share (in dollars per share) | $ 0.15 | $ 0.05 |
Options to purchase shares included in the computation of diluted earnings per share (in shares) | 122,775 | 122,775 |
RECENT ACCOUNTING PRONOUNCEME26
RECENT ACCOUNTING PRONOUNCEMENTS (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accounting Standards Update 2016-09 | |
New Accounting Pronouncements or Change in Accounting Principle | |
Impact due to accounting change | $ 42,000 |
SECURITIES - AFS and HTM (Detai
SECURITIES - AFS and HTM (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Securities available for sale | |||
Amortized Cost | $ 18,851 | $ 19,834 | |
Gross Unrealized Gains | 119 | 84 | |
Gross Unrealized Losses | (123) | (146) | |
Securities available for sale | 18,847 | 19,772 | |
Securities held to maturity | |||
Held-to-maturity Securities | 2,462 | ||
Gross Unrealized Gains | 2 | ||
Gross Unrealized Losses | (11) | ||
Fair Value | 2,453 | 2,490 | |
State and municipal | |||
Securities available for sale | |||
Amortized Cost | 2,350 | 2,362 | |
Gross Unrealized Gains | 48 | 27 | |
Gross Unrealized Losses | (3) | (4) | |
Securities available for sale | 2,395 | 2,385 | |
Securities held to maturity | |||
Held-to-maturity Securities | 569 | $ 570 | |
Gross Unrealized Losses | (5) | (5) | |
Fair Value | 564 | 565 | |
Residential mortgage-backed securities | |||
Securities available for sale | |||
Amortized Cost | 16,501 | 17,472 | |
Gross Unrealized Gains | 71 | 57 | |
Gross Unrealized Losses | (120) | (142) | |
Securities available for sale | 16,452 | 17,387 | |
Securities held to maturity | |||
Held-to-maturity Securities | 1,893 | 2,503 | 1,933 |
Gross Unrealized Gains | 2 | 3 | 3 |
Gross Unrealized Losses | (6) | (16) | (11) |
Fair Value | $ 1,889 | $ 2,490 | $ 1,925 |
SECURITIES - AFS and HTM - Amor
SECURITIES - AFS and HTM - Amortized Cost and FV (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Available for Sale, Amortized cost | |||
After five years through ten years | $ 525 | ||
Over ten years | 1,825 | ||
Total | 2,350 | ||
Amortized Cost | 18,851 | ||
Available-for-sale Securities, Amortized Cost Basis | 18,851 | $ 19,834 | |
Available for Sale, Fair Value | |||
After five years through ten years | 537 | ||
Over ten years | 1,858 | ||
Total | 2,395 | ||
Fair Value | 18,847 | 19,772 | |
Held to maturity, Amortized Cost | |||
Over 10 years | 569 | ||
Total | 569 | ||
Total | 2,462 | ||
Held to Maturity, Fair Value | |||
Over 10 years | 564 | ||
Total | 564 | ||
Fair Value | 2,453 | 2,490 | |
Available for sale securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position | |||
Less Than Twelve Months, Gross Unrealized Losses | 123 | 146 | |
Less Than Twelve Months, Fair Value | 8,484 | 9,230 | |
Held to maturity securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position | |||
Less than 12 months, Gross Unrealized Loss | 11 | 16 | |
Less than 12 months, Fair Value | 2,433 | 2,463 | |
Total temporarily impaired securities, Less than 12 months, Gross Unrealized Loss | 134 | 162 | |
Total temporarily impaired securities, Less than 12 months, Fair Value | 10,917 | 11,693 | |
Additional disclosures | |||
Proceeds from sale of securities | 0 | $ 0 | |
State and municipal | |||
Available for Sale, Amortized cost | |||
Available-for-sale Securities, Amortized Cost Basis | 2,350 | 2,362 | |
Available for Sale, Fair Value | |||
Fair Value | 2,395 | 2,385 | |
Held to maturity, Amortized Cost | |||
Total | 569 | 570 | |
Held to Maturity, Fair Value | |||
Fair Value | 564 | 565 | |
Available for sale securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position | |||
Less Than Twelve Months, Gross Unrealized Losses | 3 | 4 | |
Less Than Twelve Months, Fair Value | 239 | 512 | |
Held to maturity securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position | |||
Less than 12 months, Gross Unrealized Loss | 5 | 5 | |
Less than 12 months, Fair Value | 564 | 565 | |
Residential mortgage-backed securities | |||
Available for Sale, Amortized cost | |||
Securities without single maturity date | 16,501 | ||
Available-for-sale Securities, Amortized Cost Basis | 16,501 | 17,472 | |
Available for Sale, Fair Value | |||
Securities without single maturity date | 16,452 | ||
Fair Value | 16,452 | 17,387 | |
Held to maturity, Amortized Cost | |||
Securities without single maturity date | 1,893 | ||
Total | 1,893 | 1,933 | 2,503 |
Held to Maturity, Fair Value | |||
Securities without single maturity date | 1,889 | ||
Fair Value | 1,889 | $ 1,925 | 2,490 |
Available for sale securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position | |||
Less Than Twelve Months, Gross Unrealized Losses | 120 | 142 | |
Less Than Twelve Months, Fair Value | 8,245 | 8,718 | |
Held to maturity securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position | |||
Less than 12 months, Gross Unrealized Loss | 6 | 11 | |
Less than 12 months, Fair Value | $ 1,869 | $ 1,898 |
LOANS AND SERVICING - Summary o
LOANS AND SERVICING - Summary of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Summary of loans: | ||||
Loans receivable | $ 281,669 | $ 279,492 | ||
Total loans (as a percent) | 100.00% | 100.00% | ||
Other items: | ||||
Net deferred loan costs | $ 540 | $ 484 | ||
Allowance for loan losses | (2,642) | (2,605) | $ (2,483) | $ (2,408) |
Total loans, net | 279,567 | 277,371 | ||
Residential loans: | ||||
Summary of loans: | ||||
Loans receivable | $ 108,337 | $ 106,069 | ||
Total loans (as a percent) | 38.46% | 37.95% | ||
One- to four- family, residential loans | ||||
Summary of loans: | ||||
Loans receivable | $ 92,869 | $ 90,190 | ||
Total loans (as a percent) | 32.97% | 32.27% | ||
Other items: | ||||
Allowance for loan losses | $ (176) | $ (171) | (180) | (197) |
Home equity loans and lines of credit | ||||
Summary of loans: | ||||
Loans receivable | $ 15,468 | $ 15,879 | ||
Total loans (as a percent) | 5.49% | 5.68% | ||
Other items: | ||||
Allowance for loan losses | $ (232) | $ (238) | (260) | (276) |
Commercial loans: | ||||
Summary of loans: | ||||
Loans receivable | $ 151,855 | $ 148,087 | ||
Total loans (as a percent) | 53.91% | 52.98% | ||
One-to-four family investment property | ||||
Summary of loans: | ||||
Loans receivable | $ 14,400 | $ 13,081 | ||
Total loans (as a percent) | 5.11% | 4.68% | ||
Other items: | ||||
Allowance for loan losses | $ (86) | $ (79) | (83) | (90) |
Multi-family real estate | ||||
Summary of loans: | ||||
Loans receivable | $ 30,214 | $ 30,748 | ||
Total loans (as a percent) | 10.73% | 11.00% | ||
Other items: | ||||
Allowance for loan losses | $ (230) | $ (234) | (226) | (233) |
Commercial real estate | ||||
Summary of loans: | ||||
Loans receivable | $ 83,390 | $ 83,583 | ||
Total loans (as a percent) | 29.60% | 29.90% | ||
Other items: | ||||
Allowance for loan losses | $ (1,259) | $ (1,262) | (1,126) | (1,021) |
Commercial business loan | ||||
Summary of loans: | ||||
Loans receivable | $ 23,851 | $ 20,675 | ||
Total loans (as a percent) | 8.47% | 7.40% | ||
Other items: | ||||
Allowance for loan losses | $ (419) | $ (364) | (338) | (305) |
Construction loans | ||||
Summary of loans: | ||||
Loans receivable | $ 21,327 | $ 25,154 | ||
Total loans (as a percent) | 7.58% | 9.00% | ||
One-to-four family, construction loans | ||||
Summary of loans: | ||||
Loans receivable | $ 9,368 | $ 12,599 | ||
Total loans (as a percent) | 3.33% | 4.51% | ||
Other items: | ||||
Allowance for loan losses | $ (82) | $ (104) | (139) | (113) |
Multi-family | ||||
Summary of loans: | ||||
Loans receivable | $ 4,505 | $ 5,725 | ||
Total loans (as a percent) | 1.60% | 2.05% | ||
Other items: | ||||
Allowance for loan losses | $ (37) | $ (47) | (14) | (12) |
Non-residential | ||||
Summary of loans: | ||||
Loans receivable | $ 7,454 | $ 6,830 | ||
Total loans (as a percent) | 2.65% | 2.44% | ||
Other items: | ||||
Allowance for loan losses | $ (114) | $ (104) | (97) | (91) |
Consumer | ||||
Summary of loans: | ||||
Loans receivable | $ 150 | $ 182 | ||
Total loans (as a percent) | 0.05% | 0.07% | ||
Other items: | ||||
Allowance for loan losses | $ (1) | $ (2) | $ (2) | $ (2) |
LOANS AND SERVICING - Allowance
LOANS AND SERVICING - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Allowance for loan losses | |||
Beginning Balance | $ 2,605 | $ 2,408 | |
Charge-offs | (3) | ||
Recoveries | 1 | 1 | |
(Benefit) provision | 39 | 74 | |
Ending Balance | 2,642 | 2,483 | |
Ending balance: Individually evaluated for impairment | 7 | $ 7 | |
Ending balance: Collectively evaluated for impairment | 2,635 | 2,598 | |
Loans | |||
Ending Balance: Individually evaluated for impairment | 2,188 | 2,052 | |
Ending Balance: Collectively evaluated for impairment | 279,481 | 277,440 | |
Total Loans | 281,669 | 279,492 | |
Residential loans: | |||
Loans | |||
Total Loans | 108,337 | 106,069 | |
One- to four- family, residential loans | |||
Allowance for loan losses | |||
Beginning Balance | 171 | 197 | |
(Benefit) provision | 5 | (17) | |
Ending Balance | 176 | 180 | |
Ending balance: Collectively evaluated for impairment | 176 | 171 | |
Loans | |||
Ending Balance: Individually evaluated for impairment | 1,529 | 1,543 | |
Ending Balance: Collectively evaluated for impairment | 91,340 | 88,647 | |
Total Loans | 92,869 | 90,190 | |
Home equity loans and lines of credit | |||
Allowance for loan losses | |||
Beginning Balance | 238 | 276 | |
Recoveries | 1 | 1 | |
(Benefit) provision | (7) | (17) | |
Ending Balance | 232 | 260 | |
Ending balance: Collectively evaluated for impairment | 232 | 238 | |
Loans | |||
Ending Balance: Individually evaluated for impairment | 296 | 143 | |
Ending Balance: Collectively evaluated for impairment | 15,172 | 15,736 | |
Total Loans | 15,468 | 15,879 | |
Commercial loans: | |||
Loans | |||
Total Loans | 151,855 | 148,087 | |
One-to-four family investment property | |||
Allowance for loan losses | |||
Beginning Balance | 79 | 90 | |
(Benefit) provision | 7 | (7) | |
Ending Balance | 86 | 83 | |
Ending balance: Individually evaluated for impairment | 7 | 7 | |
Ending balance: Collectively evaluated for impairment | 79 | 72 | |
Loans | |||
Ending Balance: Individually evaluated for impairment | 85 | 85 | |
Ending Balance: Collectively evaluated for impairment | 14,315 | 12,996 | |
Total Loans | 14,400 | 13,081 | |
Multi-family real estate | |||
Allowance for loan losses | |||
Beginning Balance | 234 | 233 | |
(Benefit) provision | (4) | (7) | |
Ending Balance | 230 | 226 | |
Ending balance: Collectively evaluated for impairment | 230 | 234 | |
Loans | |||
Ending Balance: Collectively evaluated for impairment | 30,214 | 30,748 | |
Total Loans | 30,214 | 30,748 | |
Commercial real estate | |||
Allowance for loan losses | |||
Beginning Balance | 1,262 | 1,021 | |
(Benefit) provision | (3) | 105 | |
Ending Balance | 1,259 | 1,126 | |
Ending balance: Collectively evaluated for impairment | 1,259 | 1,262 | |
Loans | |||
Ending Balance: Individually evaluated for impairment | 278 | 281 | |
Ending Balance: Collectively evaluated for impairment | 83,112 | 83,302 | |
Total Loans | 83,390 | 83,583 | |
Commercial business loan | |||
Allowance for loan losses | |||
Beginning Balance | 364 | 305 | |
(Benefit) provision | 55 | 33 | |
Ending Balance | 419 | 338 | |
Ending balance: Collectively evaluated for impairment | 419 | 364 | |
Loans | |||
Ending Balance: Collectively evaluated for impairment | 23,851 | 20,675 | |
Total Loans | 23,851 | 20,675 | |
Construction loans | |||
Loans | |||
Total Loans | 21,327 | 25,154 | |
One-to-four family, construction loans | |||
Allowance for loan losses | |||
Beginning Balance | 104 | 113 | |
(Benefit) provision | (22) | 26 | |
Ending Balance | 82 | 139 | |
Ending balance: Collectively evaluated for impairment | 82 | 104 | |
Loans | |||
Ending Balance: Collectively evaluated for impairment | 9,368 | 12,599 | |
Total Loans | 9,368 | 12,599 | |
Multi-family | |||
Allowance for loan losses | |||
Beginning Balance | 47 | 12 | |
(Benefit) provision | (10) | 2 | |
Ending Balance | 37 | 14 | |
Ending balance: Collectively evaluated for impairment | 37 | 47 | |
Loans | |||
Ending Balance: Collectively evaluated for impairment | 4,505 | 5,725 | |
Total Loans | 4,505 | 5,725 | |
Non-residential | |||
Allowance for loan losses | |||
Beginning Balance | 104 | 91 | |
(Benefit) provision | 10 | 6 | |
Ending Balance | 114 | 97 | |
Ending balance: Collectively evaluated for impairment | 114 | 104 | |
Loans | |||
Ending Balance: Collectively evaluated for impairment | 7,454 | 6,830 | |
Total Loans | 7,454 | 6,830 | |
Consumer | |||
Allowance for loan losses | |||
Beginning Balance | 2 | 2 | |
Charge-offs | (3) | ||
(Benefit) provision | 2 | ||
Ending Balance | 1 | 2 | |
Ending balance: Collectively evaluated for impairment | 1 | 2 | |
Loans | |||
Ending Balance: Collectively evaluated for impairment | 150 | 182 | |
Total Loans | 150 | $ 182 | |
Unallocated | |||
Allowance for loan losses | |||
Beginning Balance | 68 | ||
(Benefit) provision | 6 | (50) | |
Ending Balance | 6 | $ 18 | |
Ending balance: Collectively evaluated for impairment | $ 6 |
LOANS AND SERVICING - Past-due
LOANS AND SERVICING - Past-due and non-accrual loans (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Past-due and non-accrual loans | ||
Past due loans | $ 939 | $ 1,017 |
Total Current | 280,730 | 278,475 |
Total Loans | 281,669 | 279,492 |
Non-accrual Loans | 937 | 953 |
Loans delinquent for: 30 - 59 Days | ||
Past-due and non-accrual loans | ||
Past due loans | 40 | 198 |
Loans delinquent for: 60 - 89 Days | ||
Past-due and non-accrual loans | ||
Past due loans | 157 | 23 |
Loans delinquent for: 90 days or more | ||
Past-due and non-accrual loans | ||
Past due loans | 742 | 796 |
Residential loans: | ||
Past-due and non-accrual loans | ||
Total Loans | 108,337 | 106,069 |
One- to four- family, residential loans | ||
Past-due and non-accrual loans | ||
Past due loans | 742 | 755 |
Total Current | 92,127 | 89,435 |
Total Loans | 92,869 | 90,190 |
Non-accrual Loans | 742 | 755 |
One- to four- family, residential loans | Loans delinquent for: 90 days or more | ||
Past-due and non-accrual loans | ||
Past due loans | 742 | 755 |
Home equity loans and lines of credit | ||
Past-due and non-accrual loans | ||
Past due loans | 197 | 252 |
Total Current | 15,271 | 15,627 |
Total Loans | 15,468 | 15,879 |
Non-accrual Loans | 195 | 198 |
Home equity loans and lines of credit | Loans delinquent for: 30 - 59 Days | ||
Past-due and non-accrual loans | ||
Past due loans | 40 | 191 |
Home equity loans and lines of credit | Loans delinquent for: 60 - 89 Days | ||
Past-due and non-accrual loans | ||
Past due loans | 157 | 20 |
Home equity loans and lines of credit | Loans delinquent for: 90 days or more | ||
Past-due and non-accrual loans | ||
Past due loans | 41 | |
Commercial loans: | ||
Past-due and non-accrual loans | ||
Total Loans | 151,855 | 148,087 |
One-to-four family investment property | ||
Past-due and non-accrual loans | ||
Total Current | 14,400 | 13,081 |
Total Loans | 14,400 | 13,081 |
Multi-family real estate | ||
Past-due and non-accrual loans | ||
Total Current | 30,214 | 30,748 |
Total Loans | 30,214 | 30,748 |
Commercial real estate | ||
Past-due and non-accrual loans | ||
Total Current | 83,390 | 83,583 |
Total Loans | 83,390 | 83,583 |
Commercial business loan | ||
Past-due and non-accrual loans | ||
Total Current | 23,851 | 20,675 |
Total Loans | 23,851 | 20,675 |
Construction loans | ||
Past-due and non-accrual loans | ||
Total Loans | 21,327 | 25,154 |
One-to-four family, construction loans | ||
Past-due and non-accrual loans | ||
Total Current | 9,368 | 12,599 |
Total Loans | 9,368 | 12,599 |
Multi-family | ||
Past-due and non-accrual loans | ||
Total Current | 4,505 | 5,725 |
Total Loans | 4,505 | 5,725 |
Non-residential | ||
Past-due and non-accrual loans | ||
Total Current | 7,454 | 6,830 |
Total Loans | 7,454 | 6,830 |
Consumer | ||
Past-due and non-accrual loans | ||
Past due loans | 10 | |
Total Current | 150 | 172 |
Total Loans | $ 150 | 182 |
Consumer | Loans delinquent for: 30 - 59 Days | ||
Past-due and non-accrual loans | ||
Past due loans | 7 | |
Consumer | Loans delinquent for: 60 - 89 Days | ||
Past-due and non-accrual loans | ||
Past due loans | $ 3 |
LOANS AND SERVICING - Analysis
LOANS AND SERVICING - Analysis of impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Recorded Investment | ||
Impaired loans without a valuation allowance | $ 2,103 | $ 1,967 |
Impaired loans with a valuation allowance | 85 | 85 |
Unpaid Principal Balance | ||
Impaired loans without a valuation allowance | 2,123 | 1,979 |
Impaired loans with a valuation allowance | 85 | 85 |
Related Allowance | ||
Impaired loans with a valuation allowance | 7 | 7 |
Average Recorded Investment | ||
Impaired loans without a valuation allowance | 2,036 | 1,953 |
Impaired loans with a valuation allowance | 85 | 87 |
Interest Income Recognized | ||
Impaired loans without a valuation allowance | 19 | 64 |
Impaired loans with a valuation allowance | 1 | 4 |
One- to four- family, residential loans | ||
Recorded Investment | ||
Impaired loans without a valuation allowance | 1,529 | 1,543 |
Unpaid Principal Balance | ||
Impaired loans without a valuation allowance | 1,549 | 1,555 |
Average Recorded Investment | ||
Impaired loans without a valuation allowance | 1,536 | 1,560 |
Interest Income Recognized | ||
Impaired loans without a valuation allowance | 14 | 42 |
Home equity loans and lines of credit | ||
Recorded Investment | ||
Impaired loans without a valuation allowance | 296 | 143 |
Unpaid Principal Balance | ||
Impaired loans without a valuation allowance | 296 | 143 |
Average Recorded Investment | ||
Impaired loans without a valuation allowance | 220 | 109 |
Interest Income Recognized | ||
Impaired loans without a valuation allowance | 1 | 5 |
Commercial real estate | ||
Recorded Investment | ||
Impaired loans without a valuation allowance | 278 | 281 |
Unpaid Principal Balance | ||
Impaired loans without a valuation allowance | 278 | 281 |
Average Recorded Investment | ||
Impaired loans without a valuation allowance | 280 | 284 |
Interest Income Recognized | ||
Impaired loans without a valuation allowance | 4 | 17 |
One-to-four family investment property | ||
Recorded Investment | ||
Impaired loans with a valuation allowance | 85 | 85 |
Unpaid Principal Balance | ||
Impaired loans with a valuation allowance | 85 | 85 |
Related Allowance | ||
Impaired loans with a valuation allowance | 7 | 7 |
Average Recorded Investment | ||
Impaired loans with a valuation allowance | 85 | 87 |
Interest Income Recognized | ||
Impaired loans with a valuation allowance | $ 1 | $ 4 |
LOANS AND SERVICING - Loans mod
LOANS AND SERVICING - Loans modified and classified as troubled debt restructures (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)item | Dec. 31, 2016USD ($)item | |
Loans modified and classified as troubled debt restructures | ||
Non-accrual Loans | $ 937,000 | $ 953,000 |
Loans receivable | $ 281,669,000 | $ 279,492,000 |
Number of loan modifications that resulted in the classification of TDR | item | 0 | |
Number of TDRs in default of their modified terms | item | 0 | 0 |
Commitments to lend additional funds to borrowers with modified loans | $ 0 | |
Residential loans: | ||
Loans modified and classified as troubled debt restructures | ||
Loan modifications | $ 157,000 | |
Number of loans | item | 1 | |
Loans receivable | $ 108,337,000 | $ 106,069,000 |
One- to four- family, residential loans | ||
Loans modified and classified as troubled debt restructures | ||
Non-accrual Loans | 742,000 | 755,000 |
Loans receivable | 92,869,000 | 90,190,000 |
Home equity loans and lines of credit | ||
Loans modified and classified as troubled debt restructures | ||
Non-accrual Loans | 195,000 | 198,000 |
Loans receivable | 15,468,000 | 15,879,000 |
Commercial loans: | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | 151,855,000 | 148,087,000 |
One-to-four family investment property | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | 14,400,000 | 13,081,000 |
Multi-family real estate | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | 30,214,000 | 30,748,000 |
Commercial real estate | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | 83,390,000 | 83,583,000 |
Commercial business loan | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | 23,851,000 | 20,675,000 |
Construction loans | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | 21,327,000 | 25,154,000 |
One-to-four family, construction loans | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | 9,368,000 | 12,599,000 |
Multi-family | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | 4,505,000 | 5,725,000 |
Non-residential | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | 7,454,000 | 6,830,000 |
Consumer | ||
Loans modified and classified as troubled debt restructures | ||
Loans receivable | $ 150,000 | $ 182,000 |
LOANS AND SERVICING - Internal
LOANS AND SERVICING - Internal Credit Assessment (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)gradeperson | Dec. 31, 2016USD ($) | |
Loans by risk rating | ||
Loans receivable | $ 281,669,000 | $ 279,492,000 |
Internal Loan Rating System | ||
Number of grades in internal loan rating system | grade | 9 | |
Number of people bound by the contract | person | 1 | |
Not formally rated | ||
Loans by risk rating | ||
Loans receivable | $ 106,559,000 | 104,305,000 |
Pass | ||
Loans by risk rating | ||
Loans receivable | $ 171,683,000 | 172,297,000 |
Pass | Minimum | ||
Internal Loan Rating System | ||
Grade assigned in internal loan rating system | grade | 1 | |
Pass | Maximum | ||
Internal Loan Rating System | ||
Grade assigned in internal loan rating system | grade | 5 | |
Special mention | ||
Internal Loan Rating System | ||
Grade assigned in internal loan rating system | grade | 6 | |
Substandard | ||
Loans by risk rating | ||
Loans receivable | $ 3,427,000 | 2,890,000 |
Internal Loan Rating System | ||
Grade assigned in internal loan rating system | grade | 7 | |
Doubtful | ||
Internal Loan Rating System | ||
Grade assigned in internal loan rating system | grade | 8 | |
Loss | ||
Loans by risk rating | ||
Loans receivable | $ 281,669,000 | 279,492,000 |
Internal Loan Rating System | ||
Grade assigned in internal loan rating system | grade | 9 | |
Residential loans: | ||
Loans by risk rating | ||
Loans receivable | $ 108,337,000 | 106,069,000 |
One- to four- family, residential loans | ||
Loans by risk rating | ||
Loans receivable | 92,869,000 | 90,190,000 |
One- to four- family, residential loans | Not formally rated | ||
Loans by risk rating | ||
Loans receivable | 91,216,000 | 88,522,000 |
One- to four- family, residential loans | Substandard | ||
Loans by risk rating | ||
Loans receivable | 1,653,000 | 1,668,000 |
One- to four- family, residential loans | Loss | ||
Loans by risk rating | ||
Loans receivable | 92,869,000 | 90,190,000 |
Home equity loans and lines of credit | ||
Loans by risk rating | ||
Loans receivable | 15,468,000 | 15,879,000 |
Home equity loans and lines of credit | Not formally rated | ||
Loans by risk rating | ||
Loans receivable | 15,193,000 | 15,601,000 |
Home equity loans and lines of credit | Substandard | ||
Loans by risk rating | ||
Loans receivable | 275,000 | 278,000 |
Home equity loans and lines of credit | Loss | ||
Loans by risk rating | ||
Loans receivable | 15,468,000 | 15,879,000 |
Commercial loans: | ||
Loans by risk rating | ||
Loans receivable | 151,855,000 | 148,087,000 |
Commercial loans: | Minimum | ||
Loans by risk rating | ||
Loans receivable | 150,000 | |
Internal Loan Rating System | ||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | 350,000 | |
Commercial loans: | Pass | Maximum | ||
Internal Loan Rating System | ||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | 350,000 | |
One-to-four family investment property | ||
Loans by risk rating | ||
Loans receivable | 14,400,000 | 13,081,000 |
One-to-four family investment property | Pass | ||
Loans by risk rating | ||
Loans receivable | 14,315,000 | 12,996,000 |
One-to-four family investment property | Substandard | ||
Loans by risk rating | ||
Loans receivable | 85,000 | 85,000 |
One-to-four family investment property | Loss | ||
Loans by risk rating | ||
Loans receivable | 14,400,000 | 13,081,000 |
Multi-family real estate | ||
Loans by risk rating | ||
Loans receivable | 30,214,000 | 30,748,000 |
Multi-family real estate | Pass | ||
Loans by risk rating | ||
Loans receivable | 30,214,000 | 30,748,000 |
Multi-family real estate | Loss | ||
Loans by risk rating | ||
Loans receivable | 30,214,000 | 30,748,000 |
Commercial real estate | ||
Loans by risk rating | ||
Loans receivable | 83,390,000 | 83,583,000 |
Commercial real estate | Pass | ||
Loans by risk rating | ||
Loans receivable | 82,360,000 | 82,873,000 |
Commercial real estate | Substandard | ||
Loans by risk rating | ||
Loans receivable | 1,030,000 | 710,000 |
Commercial real estate | Loss | ||
Loans by risk rating | ||
Loans receivable | 83,390,000 | 83,583,000 |
Commercial business loan | ||
Loans by risk rating | ||
Loans receivable | 23,851,000 | 20,675,000 |
Commercial business loan | Pass | ||
Loans by risk rating | ||
Loans receivable | 23,467,000 | 20,526,000 |
Commercial business loan | Substandard | ||
Loans by risk rating | ||
Loans receivable | 384,000 | 149,000 |
Commercial business loan | Loss | ||
Loans by risk rating | ||
Loans receivable | 23,851,000 | 20,675,000 |
Construction loans | ||
Loans by risk rating | ||
Loans receivable | 21,327,000 | 25,154,000 |
Construction loans | Minimum | ||
Internal Loan Rating System | ||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | 350,000 | |
One-to-four family, construction loans | ||
Loans by risk rating | ||
Loans receivable | 9,368,000 | 12,599,000 |
One-to-four family, construction loans | Pass | ||
Loans by risk rating | ||
Loans receivable | 9,368,000 | 12,599,000 |
One-to-four family, construction loans | Loss | ||
Loans by risk rating | ||
Loans receivable | 9,368,000 | 12,599,000 |
Multi-family | ||
Loans by risk rating | ||
Loans receivable | 4,505,000 | 5,725,000 |
Multi-family | Pass | ||
Loans by risk rating | ||
Loans receivable | 4,505,000 | 5,725,000 |
Multi-family | Loss | ||
Loans by risk rating | ||
Loans receivable | 4,505,000 | 5,725,000 |
Non-residential | ||
Loans by risk rating | ||
Loans receivable | 7,454,000 | 6,830,000 |
Non-residential | Pass | ||
Loans by risk rating | ||
Loans receivable | 7,454,000 | 6,830,000 |
Non-residential | Loss | ||
Loans by risk rating | ||
Loans receivable | 7,454,000 | 6,830,000 |
Consumer | ||
Loans by risk rating | ||
Loans receivable | 150,000 | 182,000 |
Consumer | Not formally rated | ||
Loans by risk rating | ||
Loans receivable | 150,000 | 182,000 |
Consumer | Loss | ||
Loans by risk rating | ||
Loans receivable | $ 150,000 | $ 182,000 |
LOANS AND SERVICING - Servicing
LOANS AND SERVICING - Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Loans serviced for others | |||
Unpaid principal balances of mortgage loans serviced for others not included in the accompanying consolidated balance sheets | $ 80,900 | $ 83,200 | |
Moving average term of U.S. Treasury rate used to estimate the discount rate in order to determine the fair value of servicing rights (in years) | 10 years | 10 years | |
Percentage added to the moving average 10-year U.S. Treasury rate to estimate the discount rate used to determine the fair value of servicing rights | 5.00% | 5.00% | |
Mortgage servicing rights capitalized and amortized | |||
Balance at beginning of period | $ 242 | $ 523 | $ 523 |
Amortization | (53) | (78) | |
Balance at end of period | 189 | 445 | 242 |
Valuation allowances: | |||
Balance at beginning of period | 6 | 4 | 4 |
Additions | 1 | 12 | |
Balance at end of period | 7 | 16 | $ 6 |
Mortgage servicing assets, net | 182 | 429 | |
Fair value of mortgage servicing assets | $ 580 | $ 799 |
SECURED BORROWINGS AND COLLAT36
SECURED BORROWINGS AND COLLATERAL (Details) $ in Millions | Mar. 31, 2017USD ($) |
Residential loans: | |
Federal Home Loan Bank advances | |
Amount of qualified collateral pledged on FHLB advances | $ 79.4 |
Mortgage-backed securities | |
Federal Home Loan Bank advances | |
Amount of qualified collateral pledged on FHLB advances | 18.3 |
Commercial real estate | |
Federal Home Loan Bank advances | |
Amount of qualified collateral pledged on FHLB advances | $ 23.8 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Non-recurring basis - Impaired Loans - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair value measurements | ||
Adjustments to Fair Value | $ (7) | $ (7) |
Level 3 | ||
Fair value measurements | ||
Assets at Fair Value | 78 | 78 |
Total Assets at Fair Value | ||
Fair value measurements | ||
Assets at Fair Value | $ 78 | $ 78 |
FAIR VALUE MEASUREMENTS - Ass38
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Capitalized mortgage servicing rights | ||
Moving average term of U.S. Treasury rate used to estimate the discount rate in order to determine the fair value of servicing rights (in years) | 10 years | 10 years |
Servicing Assets at Fair Value Assumptions Used to Estimate Fair Value Discount Rate Basis Spread on Variable Rate | 5.00% | 5.00% |
Short-term FHLB advances | ||
Maturity period of short-term FHLB advances | 90 days | |
Securities available for sale | $ 18,847 | $ 19,772 |
Residential mortgage-backed securities | ||
Short-term FHLB advances | ||
Securities available for sale | 16,452 | 17,387 |
State and municipal | ||
Short-term FHLB advances | ||
Securities available for sale | 2,395 | 2,385 |
Level 2 | ||
Short-term FHLB advances | ||
Securities available for sale | 18,847 | 19,772 |
Recurring basis | Total Assets at Fair Value | ||
Short-term FHLB advances | ||
Securities available for sale | 18,847 | 19,772 |
Recurring basis | Total Assets at Fair Value | Residential mortgage-backed securities | ||
Short-term FHLB advances | ||
Securities available for sale | 16,452 | 17,387 |
Recurring basis | Total Assets at Fair Value | State and municipal | ||
Short-term FHLB advances | ||
Securities available for sale | 2,395 | 2,385 |
Recurring basis | Level 2 | ||
Short-term FHLB advances | ||
Securities available for sale | 18,847 | 19,772 |
Recurring basis | Level 2 | Residential mortgage-backed securities | ||
Short-term FHLB advances | ||
Securities available for sale | 16,452 | 17,387 |
Recurring basis | Level 2 | State and municipal | ||
Short-term FHLB advances | ||
Securities available for sale | $ 2,395 | $ 2,385 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Cash and cash equivalents | $ 8,153 | $ 6,129 |
Securities available for sale | 18,847 | 19,772 |
Fair Value | 2,453 | 2,490 |
FHLB stock | 2,751 | 2,341 |
Bankers Bank Northeast stock | 60 | 60 |
Loans held for sale | 275 | |
Loans, net | 277,713 | 275,824 |
Accrued interest receivable | 826 | 816 |
Capitalized mortgage servicing rights | 580 | 601 |
Financial liabilities: | ||
Deposits | 241,273 | 241,264 |
Short-term FHLB advances | 21,000 | 17,250 |
Long-term FHLB advances | 23,679 | 24,699 |
Mortgagor's escrow accounts | 1,973 | 1,633 |
Accrued interest payable | 62 | 58 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 8,153 | 6,129 |
Securities available for sale | 18,847 | 19,772 |
Fair Value | 2,462 | 2,503 |
FHLB stock | 2,751 | 2,341 |
Bankers Bank Northeast stock | 60 | 60 |
Loans held for sale | 271 | |
Loans, net | 279,567 | 277,371 |
Accrued interest receivable | 826 | 816 |
Capitalized mortgage servicing rights | 182 | 236 |
Financial liabilities: | ||
Deposits | 240,530 | 240,508 |
Short-term FHLB advances | 21,000 | 17,250 |
Long-term FHLB advances | 23,600 | 24,600 |
Mortgagor's escrow accounts | 1,973 | 1,633 |
Accrued interest payable | 62 | 58 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 8,153 | 6,129 |
FHLB stock | 2,751 | 2,341 |
Bankers Bank Northeast stock | 60 | 60 |
Loans held for sale | 275 | |
Accrued interest receivable | 826 | 816 |
Financial liabilities: | ||
Short-term FHLB advances | 21,000 | 17,250 |
Mortgagor's escrow accounts | 1,973 | 1,633 |
Accrued interest payable | 62 | 58 |
Level 2 | ||
Financial assets: | ||
Securities available for sale | 18,847 | 19,772 |
Fair Value | 2,453 | 2,490 |
Capitalized mortgage servicing rights | 580 | 601 |
Financial liabilities: | ||
Deposits | 241,273 | 241,264 |
Long-term FHLB advances | 23,679 | 24,699 |
Level 3 | ||
Financial assets: | ||
Loans, net | $ 277,713 | $ 275,824 |
EQUITY INCENTIVE PLANS - Option
EQUITY INCENTIVE PLANS - Options (Details) - 2009 and 2014 Equity Plan - Stock Options - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Number of Shares | ||
Outstanding at beginning of year (in shares) | 122,775 | 122,775 |
Outstanding at end of period (in shares) | 122,775 | 122,775 |
Exercisable at end of period (in shares) | 74,477 | |
Aggregate intrinsic value of outstanding options at end of period (in shares) | $ 1,278,000 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of year (in dollars per share) | $ 15.49 | $ 15.49 |
Outstanding at end of period (in dollars per share) | $ 15.49 | $ 15.49 |
EQUITY INCENTIVE PLANS - Opti41
EQUITY INCENTIVE PLANS - Options Outstanding and Exercisable (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
2009 and 2014 Equity Plan | |
Options Outstanding | |
Number Outstanding at the end of the period (in shares) | shares | 122,775 |
Weighted-Average Remaining Contractual Life | 6 years 10 months 28 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 15.49 |
Options Exercisable | |
Number Exercisable at the end of the period (in shares) | shares | 74,477 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 13.78 |
Weighted Average Exercise Price - $9.33 | 2009 and 2014 Equity Plan | |
Options Outstanding | |
Number Outstanding at the end of the period (in shares) | shares | 8,712 |
Weighted-Average Remaining Contractual Life | 2 years 10 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 9.33 |
Options Exercisable | |
Number Exercisable at the end of the period (in shares) | shares | 8,712 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 9.33 |
Weighted Average Exercise Price - $9.55 | 2009 and 2014 Equity Plan | |
Options Outstanding | |
Number Outstanding at the end of the period (in shares) | shares | 9,683 |
Weighted-Average Remaining Contractual Life | 3 years 10 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 9.55 |
Options Exercisable | |
Number Exercisable at the end of the period (in shares) | shares | 9,683 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 9.55 |
Weighted Average Exercise Price - $9.58 | 2009 and 2014 Equity Plan | |
Options Outstanding | |
Number Outstanding at the end of the period (in shares) | shares | 8,570 |
Weighted-Average Remaining Contractual Life | 4 years 10 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 9.58 |
Options Exercisable | |
Number Exercisable at the end of the period (in shares) | shares | 8,570 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 9.58 |
Weighted Average Exercise Price - $14.00 | 2009 and 2014 Equity Plan | |
Options Outstanding | |
Number Outstanding at the end of the period (in shares) | shares | 15,200 |
Weighted-Average Remaining Contractual Life | 5 years 10 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 14 |
Options Exercisable | |
Number Exercisable at the end of the period (in shares) | shares | 12,850 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 14 |
Weighted Average Exercise Price - $14.98 | 2009 and 2014 Equity Plan | |
Options Outstanding | |
Number Outstanding at the end of the period (in shares) | shares | 17,110 |
Weighted-Average Remaining Contractual Life | 6 years 10 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 14.98 |
Options Exercisable | |
Number Exercisable at the end of the period (in shares) | shares | 12,446 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 14.98 |
Weighted Average Exercise Price - $17.55 | |
Options Outstanding | |
Number Outstanding at the end of the period (in shares) | shares | 30,000 |
Weighted-Average Remaining Contractual Life | 7 years 10 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 17.55 |
Options Exercisable | |
Number Exercisable at the end of the period (in shares) | shares | 14,400 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 17.55 |
Weighted Average Exercise Price - $19.40 | |
Options Outstanding | |
Number Outstanding at the end of the period (in shares) | shares | 33,500 |
Weighted-Average Remaining Contractual Life | 8 years 10 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 19.40 |
Options Exercisable | |
Number Exercisable at the end of the period (in shares) | shares | 7,816 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 19.40 |
EQUITY INCENTIVE PLANS - Restri
EQUITY INCENTIVE PLANS - Restricted Stock and Additional Disclosures (Details) | Apr. 24, 2017$ / shares | Mar. 31, 2017USD ($)item$ / sharesshares | Mar. 31, 2016 |
Number of Shares | |||
Outstanding at beginning of year (in shares) | shares | 46,449 | ||
Outstanding at end of period (in shares) | shares | 30,076 | ||
Additional Disclosures | |||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.05 | ||
Number of equity incentive plans | item | 2 | ||
Stock Options | |||
Additional Disclosures | |||
Unrecognized share-based compensation expense related to non-vested options (in dollars) | $ 278,000 | ||
Weighted average period for recognition of share-based compensation | 3 years | 2 years 9 months 18 days | |
Share-based compensation expense recognized (in dollars) | $ 31,000 | ||
Tax benefit from recognized compensation expense (in dollars) | $ 4,000 | ||
Restricted stock award | |||
Number of Shares | |||
Outstanding at beginning of year (in shares) | shares | 46,449 | ||
Vested (in shares) | shares | (16,373) | ||
Outstanding at end of period (in shares) | shares | 30,076 | ||
Weighted Average Grant Date Value | |||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 17 | ||
Vested (in dollars per share) | $ / shares | 15.99 | ||
Outstanding at end of period (in dollars per share) | $ / shares | $ 17.56 | ||
Additional Disclosures | |||
Unrecognized share-based compensation expense related to non-vested restricted stock (in dollars) | $ 511,000 | ||
Share-based compensation expense recognized (in dollars) | 63,000 | ||
Tax benefit from recognized compensation expense (in dollars) | $ 25,000 |