Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 09, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Melrose Bancorp, Inc. | |
Entity Central Index Key | 1,600,890 | |
Trading Symbol | MELR | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 2,582,424 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 12,742 | $ 8,903 |
Money market funds | 2,570 | 3,963 |
Federal funds sold | 3,667 | 4,737 |
Cash and cash equivalents | 18,979 | 17,603 |
Investments in available-for-sale securities, at fair value | 27,342 | 26,496 |
Federal Home Loan Bank stock, at cost | 2,285 | 1,800 |
Loans, net of allowance for loan losses of $1,358 at September 30, 2018 and $1,134 at December 31, 2017 | 262,265 | 251,317 |
Premises and equipment, net | 2,675 | 1,993 |
Co-operative Central Bank deposit | 891 | 886 |
Bank-owned life insurance | 6,207 | 6,090 |
Accrued interest receivable | 834 | 702 |
Deferred tax asset, net | 539 | 364 |
Other assets | 310 | 275 |
Total assets | 322,327 | 307,526 |
Deposits: | ||
Noninterest-bearing | 18,138 | 16,180 |
Interest-bearing | 222,513 | 216,741 |
Total deposits | 240,651 | 232,921 |
Federal Home Loan Bank advances | 36,000 | 29,000 |
Other liabilities | 668 | 612 |
Total liabilities | 277,319 | 262,533 |
Stockholders' equity: | ||
Common stock, par value $0.01 per share, authorized 15,000,000 shares; issued 2,591,424 shares at September 30, 2018 and 2,600,743 shares at December 31, 2017 | 26 | 26 |
Additional paid-in-capital | 23,454 | 23,496 |
Retained earnings | 24,091 | 23,674 |
Unearned compensation - ESOP (190,526 shares unallocated at September 30, 2018 and 196,184 shares unallocated at December 31, 2017) | (1,905) | (1,961) |
Unearned compensation - restricted stock | (350) | (451) |
Accumulated other comprehensive (loss)/income | (308) | 209 |
Total stockholders' equity | 45,008 | 44,993 |
Total liabilities and stockholders' equity | $ 322,327 | $ 307,526 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 1,358 | $ 1,134 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 2,591,424 | 2,600,743 |
ESOP number of shares unallocated | 190,526 | 196,184 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 2,559 | $ 2,139 | $ 7,327 | $ 6,025 |
Interest and dividends on securities: | ||||
Taxable | 137 | 129 | 396 | 398 |
Tax-exempt | 16 | 18 | 48 | 51 |
Other interest | 100 | 62 | 223 | 112 |
Total interest and dividend income | 2,812 | 2,348 | 7,994 | 6,586 |
Interest expense: | ||||
Interest on deposits | 753 | 479 | 1,863 | 1,339 |
Interest on Federal Home Loan Bank advances | 201 | 112 | 536 | 217 |
Total interest expense | 954 | 591 | 2,399 | 1,556 |
Net interest and dividend income | 1,858 | 1,757 | 5,595 | 5,030 |
Provision for loan losses | 53 | 3 | 224 | 94 |
Net interest and dividend income after provision for loan losses | 1,805 | 1,754 | 5,371 | 4,936 |
Noninterest income: | ||||
Fees and service charges | 19 | 22 | 66 | 62 |
Gain on sales and calls of available-for-sale securities, net | 103 | 388 | 342 | 1,195 |
Income on bank-owned life insurance | 24 | 84 | 77 | 133 |
Other income | 3 | 11 | 4 | |
Total noninterest income | 149 | 494 | 496 | 1,394 |
Noninterest expense: | ||||
Salaries and employee benefits | 827 | 807 | 2,543 | 2,428 |
Occupancy expense | 85 | 155 | 243 | 307 |
Equipment expense | 20 | 11 | 54 | 32 |
Data processing expense | 113 | 100 | 314 | 297 |
Advertising expense | 52 | 45 | 158 | 146 |
Printing and supplies | 11 | 9 | 43 | 38 |
FDIC assessment | 22 | 15 | 66 | 55 |
Audits and examinations | 57 | 50 | 171 | 150 |
Other professional services | 83 | 80 | 243 | 230 |
Other expense | 85 | 45 | 271 | 151 |
Total noninterest expense | 1,355 | 1,317 | 4,106 | 3,834 |
Income before income tax expense | 599 | 931 | 1,761 | 2,496 |
Income tax expense | 157 | 300 | 460 | 917 |
Net income | $ 442 | $ 631 | $ 1,301 | $ 1,579 |
Weighted average common shares outstanding: | ||||
Basic | 2,378,294 | 2,368,989 | 2,377,858 | 2,365,661 |
Diluted | 2,411,000 | 2,380,820 | 2,407,997 | 2,370,063 |
Earnings per share: | ||||
Basic | $ 0.19 | $ 0.27 | $ 0.55 | $ 0.67 |
Diluted | 0.18 | 0.27 | 0.54 | 0.67 |
Dividends per share | $ 0.34 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 442 | $ 631 | $ 1,301 | $ 1,579 |
Other comprehensive loss, net of tax: | ||||
Net unrealized holding (loss) gain on available-for-sale securities | (70) | 48 | (350) | 545 |
Reclassification adjustment for net realized gains included in net income | (103) | (388) | (342) | (1,195) |
Other comprehensive loss before income tax effect | (173) | (340) | (692) | (650) |
Income tax benefit | 44 | 133 | 175 | 285 |
Other comprehensive loss, net of tax | (129) | (207) | (517) | (365) |
Comprehensive income | $ 313 | $ 424 | $ 784 | $ 1,214 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings | Unearned Compensation - ESOP | Unearned Compensation - RSA | Accumulated Other Comprehensive (Loss)/Income |
Beginning balance at Dec. 31, 2016 | $ 43,304 | $ 26 | $ 23,292 | $ 21,912 | $ (2,037) | $ (585) | $ 696 |
Beginning balance, shares at Dec. 31, 2016 | 2,602,079 | ||||||
Net income | 1,579 | 1,579 | |||||
Other comprehensive loss, net of tax | (365) | (365) | |||||
Restricted stock award expense | 101 | 101 | |||||
Stock option expense | 124 | 124 | |||||
Common stock held by ESOP committed to be allocated (7,546 shares annually) | 100 | 43 | 57 | ||||
Shares repurchased for tax withholdings on stock-based compensation | (22) | $ (1,336) | (22) | ||||
Ending balance at Sep. 30, 2017 | 44,821 | $ 26 | 23,437 | 23,491 | (1,980) | (484) | 331 |
Ending balance, shares at Sep. 30, 2017 | 2,600,743 | ||||||
Beginning balance at Dec. 31, 2017 | 44,993 | $ 26 | 23,496 | 23,674 | (1,961) | (451) | 209 |
Beginning balance, shares at Dec. 31, 2017 | 2,600,743 | ||||||
Net income | 1,301 | 1,301 | |||||
Other comprehensive loss, net of tax | (517) | (517) | |||||
Dividends paid | (884) | (884) | |||||
Restricted stock award expense | 101 | 101 | |||||
Stock option expense | 124 | 124 | |||||
Repurchase of common stock | (335) | (335) | |||||
Repurchase of common stock, shares | (17,200) | ||||||
Common stock held by ESOP committed to be allocated (7,546 shares annually) | 112 | 56 | 56 | ||||
Shares repurchased for tax withholdings on stock-based compensation | (24) | (24) | |||||
Shares repurchased for tax withholdings on stock-based compensation, shares | (1,219) | ||||||
Stock options exercised | 137 | 137 | |||||
Stock options exercised, shares | 9,100 | ||||||
Ending balance at Sep. 30, 2018 | $ 45,008 | $ 26 | $ 23,454 | $ 24,091 | $ (1,905) | $ (350) | $ (308) |
Ending balance, shares at Sep. 30, 2018 | 2,591,424 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (Unaudited) - shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock held by ESOP committed to be allocated, shares | 7,546 | 7,546 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 1,301 | $ 1,579 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of securities, net of accretion | 160 | 100 |
Gain on sales and calls of available-for-sale securities, net | (342) | (1,195) |
Provision for loan losses | 224 | 94 |
Change in net deferred loan fees/costs | 44 | 4 |
Change in unamortized premiums | 48 | (74) |
Depreciation | 109 | 160 |
Increase in accrued interest receivable | (132) | (96) |
Increase in other assets | (35) | (93) |
Increase in other liabilities | 56 | 161 |
Income on bank-owned life insurance | (77) | (133) |
ESOP expense | 112 | 100 |
Stock-based compensation expense | 225 | 225 |
Net cash provided by operating activities | 1,693 | 832 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (8,169) | (3,193) |
Proceeds from sales of available-for-sale securities | 602 | 2,264 |
Proceeds from maturities and calls of available-for-sale securities | 6,211 | 3,814 |
Purchases of Federal Home Loan Bank stock | (485) | (716) |
Increase in Cooperative Central Bank deposit | (5) | (5) |
Loan originations and principal collections, net | (11,264) | (9,011) |
Loans purchased | (12,605) | |
Capital expenditures | (791) | (396) |
Premiums paid on bank-owned life insurance | (40) | (41) |
Net cash used in investing activities | (13,941) | (19,889) |
Cash flows from financing activities: | ||
Net increase in demand deposits, NOW and savings accounts | 2,298 | 1,951 |
Net increase in time deposits | 5,432 | 10,427 |
Proceeds from Federal Home Loan Bank advances | 10,000 | 16,000 |
Repayment of Federal Home Loan Bank advances | (3,000) | |
Dividends paid | (884) | |
Repurchase of Melrose Bancorp, Inc. common stock | (335) | |
Shares repurchased for tax withholdings on stock-based compensation | (24) | (22) |
Stock options exercised | 137 | |
Net cash provided by financing activities | 13,624 | 28,356 |
Net (decrease)/increase in cash and cash equivalents | 1,376 | 9,321 |
Cash and cash equivalents at beginning of the period | 17,603 | 13,792 |
Cash and cash equivalents at end of the period | 18,979 | 23,113 |
Supplemental disclosures: | ||
Interest paid | 2,384 | 1,551 |
Income taxes paid | $ 64 | $ 785 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2018 | |
Nature of Operations [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 - NATURE OF OPERATIONS Melrose Bancorp, Inc. (the “Company”) was incorporated in February 2014 under the laws of the State of Maryland. The Company’s activity consists of owning and supervising its subsidiary, Melrose Bank (the “Bank”). The Bank provides financial services to individuals, families and businesses through our full-service banking office. Our primary business activity consists of taking deposits from the general public in our market area and investing those deposits, together with funds generated from operations, in one- to- four family residential real estate loans, home equity loans and lines of credit, commercial real estate loans, construction loans and to a much lesser extent consumer loans. The Bank is a Massachusetts-chartered cooperative bank headquartered in Melrose, Massachusetts. The Bank is subject to the regulations of, and periodic examination by, the Massachusetts Division of Banks (“DOB”) and the Federal Deposit Insurance Corporation (“FDIC”). The Bank’s deposits are insured by the FDIC subject to limitations. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited interim, consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and Rule 10-01 of Regulation S-X. Information included herein as of September 30, 2018 and for the interim periods ended September 30, 2018 and 2017 is unaudited; however, in the opinion of management, all adjustments considered necessary for a fair presentation have been included and were of a normal recurring nature. These statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission on March 16, 2018. The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for future periods, including the year ending December 31, 2018. The significant accounting policies are summarized below to assist the reader in better understanding the condensed consolidated financial statements and other data contained herein. BASIS OF PRESENTATION: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiary, MCBSC, Inc., which is used to hold investment securities. All significant intercompany accounts and transactions have been eliminated in the consolidation. USE OF ESTIMATES: In preparing consolidated financial statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses. CASH AND CASH EQUIVALENTS: For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks, money market funds and federal funds sold. SECURITIES: Investments in debt securities are adjusted for amortization of premiums and accretion of discounts computed so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis. The Company classifies all debt and equity securities as available-for-sale. Available-for-sale securities are carried at fair value in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, but are reported as a net amount (less expected tax) in a separate component of stockholders’ equity until realized. The security classification may be modified after acquisition only under certain specified conditions. For any debt security with a fair value less than its amortized cost basis, the Company will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in other comprehensive loss. Declines in marketable equity securities below their cost that are deemed other-than-temporary are reflected in earnings as realized losses. FEDERAL HOME LOAN BANK STOCK: As a member of the Federal Home Loan Bank of Boston (FHLB), the Bank is required to invest in $100 par value stock of the FHLB. The FHLB capital structure mandates that members must own stock as determined by their Total Stock Investment Requirement which is the sum of a member’s Membership Stock Investment Requirement and Activity-Based Stock Investment Requirement, as defined. Management evaluates the Company’s investment in FHLB stock for other-than-temporary impairment at least on a quarterly basis and more frequently when economic or market conditions warrant such evaluation. Based on its most recent analysis of the FHLB as of September CO-OPERATIVE CENTRAL BANK AND SHARE INSURANCE FUND: All Massachusetts-chartered co-operative banks are required to be members of the Co-operative Central Bank, which maintains the Share Insurance Fund that insures co-operative bank deposits in excess of federal deposit insurance coverage. The Co-operative Central Bank is authorized to charge co-operative banks an annual assessment fee on deposit balances in excess of amounts insured by the FDIC. Assessment rates are based on the institution’s risk category, similar to the method currently used to determine assessments by the FDIC. LOANS: Loans receivable that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for amounts due to borrowers on outstanding home equity lines of credit, commercial lines of credit and construction loans, any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount amortized as an adjustment of the related loan’s yield. The Company is amortizing these amounts over the expected lives of the related loans. Residential real estate loans are generally placed on nonaccrual when reaching 90 days past due or are in the process of foreclosure. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on nonaccrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans which are 90 days or more past due are generally placed on nonaccrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans are recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. ALLOWANCE FOR LOAN LOSSES: The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. PREMISES AND EQUIPMENT: Land is carried at cost. Buildings and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Depreciation and amortization are calculated principally on the straight-line method over the estimated useful lives of the assets. Estimated lives are 15 to 40 years for buildings and 3 to 10 years for furniture and equipment. Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. BANK-OWNED LIFE INSURANCE: The Company has purchased insurance policies on the lives of certain directors, executive officers and employees. Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are not subject to income taxes. ADVERTISING: The Company directly expenses costs associated with advertising as they are incurred. INCOME TAXES: The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. EMPLOYEE STOCK OWNERSHIP PLAN: Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated balance sheets. The difference between the average fair value and the cost of shares allocated by the ESOP is recorded as an adjustment to additional paid-in-capital. STOCK-BASED COMPENSATION: The Company recognizes stock-based compensation based on the grant-date fair value of the award. Forfeitures will be recognized when they occur. The Company values share-based stock option awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. EARNINGS PER SHARE (EPS): Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding adjusted to exclude the weighted average number of unallocated shares held by the ESOP and weighted average shares of unearned restricted stock. Diluted EPS reflects 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 earnings of the entity. For the purposes of computing diluted EPS, the treasury stock method is used. The calculation of basic and diluted EPS (unaudited) is presented below. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (In thousands, except share data) Net income $ 442 $ 631 $ 1,301 $ 1,579 Basic Common Shares: Weighted average common shares outstanding 2,593,648 2,600,743 2,598,234 2,601,485 Weighted average shares - unearned restricted stock (23,885 ) (32,741 ) (26,078 ) (34,925 ) Weighted average unallocated ESOP shares (191,469 ) (199,013 ) (194,298 ) (200,899 ) Basic weighted average shares outstanding 2,378,294 2,368,989 2,377,858 2,365,661 Dilutive effect of unvested restricted stock awards 5,319 8,502 5,724 4,402 Dilutive effect of stock options 27,387 3,329 24,415 - Diluted weighted average shares outstanding 2,411,000 2,380,820 2,407,997 2,370,063 Basic earnings per share $ 0.19 $ 0.27 $ 0.55 $ 0.67 Diluted earnings per share (1) $ 0.18 $ 0.27 $ 0.54 $ 0.67 (1) For the nine months ended September 30, 2017, stock options were not included in the computation of dilutive earnings per share, because the effect is anti-dilutive. FAIR VALUES OF FINANCIAL INSTRUMENTS: Accounting Standards Codification (ASC) 825, “Financial Instruments,” requires that the Company disclose the estimated fair value for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows: Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate fair value. Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Federal Home Loan Bank stock: The carrying amounts reported in the consolidated balance sheets for Federal Home Loan Bank stock approximate fair value. Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Cooperative Central Bank deposits: The carrying amounts reported in the consolidated balance sheets for Cooperative Central Bank deposits approximate fair value. Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value. Deposit liabilities: The fair values for demand deposits (e.g., interest and non-interest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificate accounts are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar certificates to a schedule of aggregated expected monthly maturities on certificate accounts. Federal Home Loan Bank advances: Fair values for Federal Home Loan Bank advances are estimated using a discounted cash flow technique that applies interest rates currently being offered on advances to a schedule of aggregate expected monthly maturities on Federal Home Loan Bank advances. RECENT ACCOUNTING PRONOUNCEMENTS: As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of September 30, 2018, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. The extended transition period for an emerging growth company is five years, and the Company’s emerging growth status will end on December 31, 2019. In May 2014 and August 2015, respectively, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ASU 2014-09 and ASU 2015-14, “Revenue from Contracts with Customers (Topic 606).” The objective of ASU 2014-09 is to clarify principles for recognizing revenue and to develop a common revenue standard for Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under the extended transition period for an emerging growth company, the amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2018 and interim periods within that period. Earlier application is permitted only as of an annual reporting period beginning after December 31, 2016, include interim reporting periods within that reporting period. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. Based on the Company’s preliminary analysis of the effect of the new standard on its recurring revenue streams, the net quantitative impact of these presentation changes to noninterest income and noninterest expense is expected to be immaterial and will not affect net income. The Company is in the process of completing a full evaluation of the impact of the new standard, however, anticipates the adoption of this ASU will not have a material impact on its consolidated financial statements. In January 2016, the FASB issued 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. Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, the entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same manner. 2. Simplify the impairment assessment of equity investments without determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. 3. Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. 4. Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 5. Require an entity to present separately in other comprehensive loss the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. 6. Require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. 7. Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Under the extended transition period for an emerging growth company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of item 5 above is permitted as of the beginning of fiscal years or interim periods for which financial statements have not been issued. Early adoption of all other amendments in this ASU is not permitted. The Company is currently evaluating the amendments of ASU No. 2016-01 to determine the potential impact the new standard will have on the Company’s 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 fiscal years beginning after December 15, 2018, and interim periods therein. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This update will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the amendments of ASU No. 2016-13 to determine the potential impact the new standard will have on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for annual reporting beginning after December 15, 2018, and interim periods therein; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company anticipates the adoption of ASU No. 2017-08 will not have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update is effective for interim and annual periods in fiscal years beginning after December 15, 2019, an entity is permitted to early adopt any removed or modified disclosures upon issuance of the update and delay adoption of these additional disclosures until their effective date. The removed and modified disclosures will be adopted on a retrospective basis, and the new disclosures will be adopted on a prospective basis. The adoption will not have a material effect on the Company’s consolidated financial statements. |
Investments in Available-For-Sa
Investments in Available-For-Sale Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments in Available-For-Sale Securities [Abstract] | |
INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES | NOTE 3 - INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES Debt and equity securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost basis of securities and their approximate fair values are as follows as of September 30, 2018 (unaudited) and December 31, 2017: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) September 30, 2018 U.S. Government and federal agency obligations $ 4,544 $ - $ 114 $ 4,430 Debt securities issued by states of the United States and political subdivisions of the states 2,630 - 68 2,562 Corporate bonds and notes 14,465 4 210 14,259 Preferred stock 2,000 4 50 1,954 Asset-backed securities 1,013 - 53 960 Mortgage-backed securities 1,262 - 52 1,210 Marketable equity securities 1,817 160 10 1,967 $ 27,731 $ 168 $ 557 $ 27,342 December 31, 2017: U.S. Government and federal agency obligations $ 5,390 $ - $ 65 $ 5,325 Debt securities issued by states of the United States and political subdivisions of the states 2,898 12 29 2,881 Corporate bonds and notes 11,364 7 77 11,294 Preferred stock 3,000 13 - 3,013 Mortgage-backed securities 1,495 - 47 1,448 Marketable equity securities 2,046 490 1 2,535 $ 26,193 $ 522 $ 219 $ 26,496 The scheduled maturities of debt securities were as follows as of (unaudited): Fair Value (In Thousands) Due within one year $ 2,483 Due after one year through five years 16,494 Due after five years through ten years 2,069 Due after ten years 1,209 Asset-backed securities 960 Mortgage-backed securities 1,210 $ 24,425 Not included in the maturity table above is preferred stock with no stated maturity of $950,000 at (unaudited). There were no securities of issuers whose aggregate carrying amount exceeded 10% of stockholders’ equity as of (unaudited) and December 31, 2017. During the three and nine months ended September 30, 2018 September 30, 2017 The Company had no pledged securities as of September 30, 2018 (unaudited) and December 31, 2017. The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more, and are not other-than-temporarily impaired, are as follows as of (unaudited) and December 31, 2017: Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) September 30, 2018 U.S. Government and federal agency obligations $ 1,321 $ 43 $ 3,109 $ 71 $ 4,430 $ 114 Debt securities issued by states of the United States and political subdivisions of the states 1,780 41 782 27 2,562 68 Corporate bonds and notes 10,639 137 2,925 73 13,564 210 Preferred stock 950 50 - - 950 50 Asset-backed securities 960 53 - - 960 53 Mortgage-backed securities - - 1,210 52 1,210 52 Marketable equity securities 1,699 10 - - 1,699 10 Total temporarily impaired securities $ 17,349 $ 334 $ 8,026 $ 223 $ 25,375 $ 557 December 31, 2017 U.S. Government and federal agency obligations $ 2,855 $ 20 $ 2,470 $ 45 $ 5,325 $ 65 Debt securities issued by states of the United States and political subdivisions of the states 991 6 535 23 1,526 29 Corporate bonds and notes 4,467 24 3,946 53 8,413 77 Mortgage-backed securities 453 6 995 41 1,448 47 Marketable equity securities 485 1 - - 485 1 Total temporarily impaired securities $ 9,251 $ 57 $ 7,946 $ 162 $ 17,197 $ 219 The Company conducts periodic reviews of investment securities with unrealized losses to evaluate whether the impairment is other-than-temporary. The Company’s review for impairment generally includes a determination of the cause, severity and duration of the impairment; and an analysis of both positive and negative evidence available. The Company also determines if it has the ability and intent to hold the investment for a period of time sufficient to allow for anticipated recovery to cost basis. In regard to corporate debt, the Company also considers the issuer’s current financial condition and its ability to make future scheduled interest and principal payments on a timely basis in assessing other-than-temporary impairment. A summary of the Company’s reviews of investment securities deemed to be temporarily impaired is as follows: Unrealized losses on U.S. Government and federal agency obligations amounted to $114,000 and consisted of nine securities. The unrealized losses on six of these debt securities were individually less than 3.5% of amortized cost basis, with three of these U.S. government and federal agency obligations between 3.5% and 7.0% of amortized cost basis. Unrealized losses on municipal bonds amounted to $68,000 and consisted of seven securities. The unrealized losses on five of these debt securities were individually less than 2.5% of amortized cost basis, with two of these municipal bonds between 5.0% and 6.2% of amortized cost basis. Unrealized losses on corporate bonds amounted to $210,000 and consisted of twenty-four securities. The unrealized losses on twenty-two of these debt securities were individually less than 4.0% of amortized cost basis, with two of these corporate bonds between 4.0% and 5.5% of amortized cost basis. Unrealized losses on preferred stock amounted to $50,000 and consisted of one security, the unrealized loss on this one security was 5.0% of amortized cost basis. Unrealized losses on asset-backed securities amounted to $53,000 and consisted of four securities. Unrealized losses on one of these asset-backed securities was less than 1% of amortized cost basis, with three of these securities having unrealized losses between 5.2% and 6.4% of amortized cost basis. Unrealized losses on mortgage-backed securities amounted to $52,000 and consisted of five securities. The unrealized losses on these debt securities range from 1.8% to 6.5% of amortized cost basis. These unrealized losses relate principally to the effect of interest rate changes on the fair value of debt securities and not to an increase in credit risk of the issuers. As the Company does not intend to sell the securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost basis, which may be at maturity, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2018. Unrealized losses on marketable equity securities amounted to $10,000 and consisted of two securities. The unrealized losses on these marketable equity securities were less than 1.0% of amortized cost basis. These unrealized losses relate principally to the effect of fluctuations in market value and not to an increase in credit risk of the issuers. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2018 | |
Loans [Abstract] | |
LOANS | NOTE 4 - LOANS Loans consisted of the following at: September 30, December 31, 2018 2017 (In Thousands) (unaudited) Real estate loans: One-to four-family residential $ 183,860 $ 189,763 Home equity loans and lines of credit 12,453 11,585 Commercial 56,175 34,686 Construction 10,655 15,853 Consumer loans 52 44 Total loans 263,195 251,931 Allowance for loan losses (1,358 ) (1,134 ) Deferred loan (fees)/costs, net (9 ) 35 Unamortized premiums 437 485 Net loans $ 262,265 $ 251,317 The following tables set forth information on loans and the allowance for loan losses at and for the periods ending September 30, 2018 and 2017 (unaudited) and as of December 31, 2017: Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) Three Months Ended September 30, 2018 (unaudited) Allowance for loan losses: Beginning balance $ 476 $ 51 $ 678 $ 71 $ 1 $ 28 $ 1,305 Charge offs - - - - - - - Recoveries - - - - - - - (Benefit)/provision (9 ) 4 106 (48 ) - - 53 Ending balance $ 467 $ 55 $ 784 $ 23 $ 1 $ 28 $ 1,358 Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) Three Months Ended September 30, 2017 (unaudited) Allowance for loan losses: Beginning balance $ 451 $ 52 $ 317 $ 131 $ 1 $ 29 $ 981 Charge offs - - - - - - - Recoveries - - - - - - - (Benefit)/provision 6 3 32 (38 ) - - 3 Ending balance $ 457 $ 55 $ 349 $ 93 $ 1 $ 29 $ 984 Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) Nine Months Ended September 30, 2018 (unaudited) Allowance for loan losses: Beginning balance $ 481 $ 52 $ 472 $ 107 $ 1 $ 21 $ 1,134 Charge offs - - - - - - - Recoveries - - - - - - - (Benefit)/provision (14 ) 3 312 (84 ) - 7 224 Ending balance $ 467 $ 55 $ 784 $ 23 $ 1 $ 28 $ 1,358 Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) Nine Months Ended September 30, 2017 (unaudited) Allowance for loan losses: Beginning balance $ 418 $ 49 $ 276 $ 117 $ 1 $ 29 $ 890 Charge offs - - - - - - - Recoveries - - - - - - - Provision/(benefit) 39 6 73 (24 ) - - 94 Ending balance $ 457 $ 55 $ 349 $ 93 $ 1 $ 29 $ 984 Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) At September 30, 2018 (unaudited) Allowance for loan losses: Ending Balance: Individually evaluated for impairment $ 8 $ - $ - $ - $ - $ - $ 8 Ending balance: Collectively evaluated for impairment 459 55 784 23 1 28 1,350 Total allowance for loan losses ending balance $ 467 $ 55 $ 784 $ 23 $ 1 $ 28 $ 1,358 Loans: Ending balance: Individually evaluated for impairment $ 98 $ - $ - $ - $ - $ - $ 98 Ending balance: Collectively evaluated for impairment 183,762 12,453 56,175 10,655 52 - 263,097 Total loans ending balance $ 183,860 $ 12,453 $ 56,175 $ 10,655 $ 52 $ - $ 263,195 At December 31, 2017 Allowance for loan losses: Ending Balance: Individually evaluated for impairment $ 8 $ - $ - $ - $ - $ - $ 8 Ending balance: Collectively evaluated for impairment 473 52 472 107 1 21 1,126 Total allowance for loan losses ending balance $ 481 $ 52 $ 472 $ 107 $ 1 $ 21 $ 1,134 Loans: Ending balance: Individually evaluated for impairment $ 100 $ - $ - $ - $ - $ - $ 100 Ending balance: Collectively evaluated for impairment 189,663 11,585 34,686 15,853 44 - 251,831 Total loans ending balance $ 189,763 $ 11,585 $ 34,686 $ 15,853 $ 44 $ - $ 251,931 The following tables set forth information regarding nonaccrual loans and past-due loans as of September 30, 2018 (unaudited) and December 31, 2017: 30 - 59 60 - 89 90 Days or More Past Due Total Past Due Total Total 90 Days or More Past Due and Accruing Non- (In Thousands) At September 30, 2018 (unaudited) Real estate loans: One-to four-family residential $ 358 $ - $ 171 $ 529 $ 183,331 $ 183,860 $ - $ 353 Home equity loans and lines of credit - - - - 12,453 12,453 - - Commercial - - - - 56,175 56,175 - - Construction - - - - 10,655 10,655 - - Consumer loans 1 - - 1 51 52 - - Total $ 359 $ - $ 171 $ 530 $ 262,665 $ 263,195 $ - $ 353 At December 31, 2017 Real estate loans: One-to four-family residential $ 295 $ 177 $ - $ 472 $ 189,291 $ 189,763 $ - $ 189 Home equity loans and lines of credit 189 - - 189 11,396 11,585 - - Commercial - - - - 34,686 34,686 - - Construction - - - - 15,853 15,853 - - Consumer loans - - - - 44 44 - - Total $ 484 $ 177 $ - $ 661 $ 251,270 $ 251,931 $ - $ 189 During the nine months ended September 30, 2018 (unaudited) there was one, one- to four-family residential loan, with an outstanding balance of $98,000 as of September 30, 2018, meeting the definition of an impaired loan in ASC 310-10-35. During the nine months ended September 30, 2017 there was one, one- to four-family residential loan, with an outstanding balance of $100,000 as of September 30, 2017, meeting the definition of an impaired loan in ASC 310-10-35. During the three months ended September 30, 2018 (unaudited) there were no one- to four-family residential real estate loans modified that met the definition of a troubled debt restructured loan in ASC 310-40. During the nine months ended September 30, 2018 (unaudited) there was one, one- to four-family residential real estate loan with a recorded balance of $98,000, modified that met the definition of a troubled debt restructured loan in ASC 310-40. The loan has had no defaults on payment, and no commitments to lend additional funds have been approved subsequent to the modification. During the three and nine months ended September 30, 2017 (unaudited), there was one, one- to four-family residential real estate loan with a recorded balance of $100,000, modified that met the definition of a troubled debt restructured loan. As of September 30, 2018 (unaudited) and December 31, 2017, there were no loans in the process of foreclosure. Credit Quality Information The Company has established an 11 point internal loan rating system for commercial real estate, construction and commercial loans. For residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and subsequently monitors these loans based on the borrower’s ability to pay. The risk rating system will assist the Company in better understanding the risk inherent in each loan. The loan ratings are as follows: Loans rated 1: Secured by cash collateral or highly liquid diversified marketable securities. Loans rated 2 – 3: Strongest quality loans in the portfolio not secured by cash. Defined by consistent, solid profits, strong cash flow and are well secured. Very little vulnerability to changing economic conditions and compare favorably to their industry. Loans rated 4 – 5: These loans are pass rated. Borrower will show average to strong cash flow, strong to adequate collateral coverage, and will have a generally sound balance sheet. Inclusive in the 5 rating are all open and closed – end residential and retail loans which are paying as agreed. Loans rated 6: Loans with above average risk but still considered pass. Generally this rating is reserved for projects currently under construction or borrowers with modest cash flow, although still meeting all loan covenants. Loans rated 6W: Contain all the risks of a 6 rated credit but have an inherent weakness that requires close monitoring. This rating also generally includes open and closed-end residential and retail loans which are greater than 30 days past due but display no other inherent weakness. Loans rated 7: Potential weaknesses which warrant management’s close attention. If weaknesses are uncorrected, repayment prospects may be weakened. This is typically a transitional rating. Loans rated 8: Considered substandard. There is a likelihood of loss if the deficiencies are not corrected. Generally, open and closed – end retail loans, as well as automotive and other consumer loans past 90 cumulative days from the contractual due date should be classified as an 8. Loans rated 9: Borrower has a pronounced weakness and all current information indicates collection or liquidation of all debts in full is improbable and highly questionable. Loans rated 10: Uncollectable and a loss will be taken. Open and closed – end loans secured by residential real estate that are beyond 180 days past due will be assessed for value and any outstanding loan balance in excess of said value, less cost to sell, will be classified as a 10. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate and construction loans over $350,000. As of September 30, 2018 (unaudited), there was one, one- to four- family residential real estate loan with a total balance of $98,000 with a risk rating of “7 – special mention.” There were three, one- to four- family residential real estate loans with a total balance of $455,000 with a risk rating of “6W – Pass Watch,” and all other loans outstanding had a risk rating of “1 to 6 - pass.” As of December 31, 2017, there were no one- to four- family residential real estate loans that had a risk rating of “8 – substandard.” There were three, one- to four- family residential real estate loans with a total balance of $472,000 with a risk rating of “6W – Pass Watch,” and one special mention one- to four- family residential real estate loan with a total balance of $99,000. All other outstanding loans had a risk rating of “1 to 6 – pass.” |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Premises and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE 5 - PREMISES AND EQUIPMENT The following is a summary of premises and equipment: September 30, December 31, 2018 2017 (In Thousands) (unaudited) Land $ 393 $ 393 Building 3,305 2,070 Construction in process - 641 Furniture and equipment 642 553 Data processing equipment 468 360 4,808 4,017 Accumulated depreciation (2,133 ) (2,024 ) $ 2,675 $ 1,993 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2018 | |
Deposit [Abstract] | |
DEPOSITS | NOTE 6 - DEPOSITS The aggregate amount of time deposit amounts in denominations that meet or exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit of $250,000 as of September 30, 2018 (unaudited) and December 31, 2017 amounted to $28,945,000 and $27,781,000, respectively. For time deposits as of September 30, 2018 (unaudited) the scheduled maturities for each of the following periods ending September 30 are as follows: (In Thousands) 2019 $ 76,412 2020 41,223 2021 11,088 2022 2,048 2023 782 $ 131,553 Deposits from related parties held by the Bank as of September 30, 2018 (unaudited) and December 31, 2017 amounted to $6,155,000 and $3,603,000, respectively. |
Borrowed Funds
Borrowed Funds | 9 Months Ended |
Sep. 30, 2018 | |
Borroweds Funds [Abstract] | |
BORROWED FUNDS | NOTE 7 - BORROWED FUNDS The Bank is a member of the Federal Home Loan Bank of Boston (FHLB). Borrowings from the FHLB are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one-to-four family properties, certain unencumbered investment securities and other qualified assets. The remaining maximum borrowing capacity with the FHLB at September 30, 2018 (unaudited) was approximately $69.7 million subject to the purchase of additional FHLB stock. The Bank had outstanding FHLB borrowings of $36.0 million at September 30, 2018, (unaudited) consisting of eight advances all with three year terms and interest rates ranging from 1.42% to 2.78%. Additionally, at September 30, 2018, (unaudited) the Bank had the ability to borrow up to $5.0 million on a Federal Funds line of credit with the Co-Operative Central Bank. Maturities of advances from the FHLB for the periods ending after September 30, 2018 (unaudited) are summarized as follows (in thousands): 2019 $ 10,000 2020 16,000 2021 10,000 $ 36,000 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 8 - FINANCIAL INSTRUMENTS The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans and unadvanced funds on loans. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include secured interests in mortgages, accounts receivable, inventory, property, plant and equipment and income-producing properties. Amounts of financial instrument liabilities with off-balance sheet credit risk are as follows as of September 30, 2018 (unaudited) and December 31, 2017: September 30, December 31, 2018 2017 (In Thousands) Commitments to originate loans $ 9,337 $ 2,401 Unused lines of credit 20,510 17,611 Due to borrowers on unadvanced construction loans 2,770 2,320 $ 32,617 $ 22,332 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 9 - FAIR VALUE MEASUREMENTS ASC 820-10, “Fair Value Measurement - Overall,” provides a framework for measuring fair value under generally accepted accounting principles. This guidance also allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. In accordance with ASC 820-10, 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. Level 1 - Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. Level 3 - Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value for September 30, 2018 (unaudited) and December 31, 2017. The Company did not have any significant transfers of assets between levels 1 and 2 of the fair value hierarchy during the nine months ended September 30, 2018 (unaudited) and the year ended December 31, 2017. The Company’s investments in preferred stock and marketable equity securities are generally classified within level 1 of the fair value hierarchy because they are valued using quoted market prices. The Company’s investment in debt securities available-for-sale is generally classified within level 2 of the fair value hierarchy. For these securities, we obtain fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. The following summarizes assets measured at fair value on a recurring basis as of September 30, 2018 (unaudited) and December 31, 2017: Fair Value Measurements at Reporting Date Using: Total Quoted Prices in Significant Significant (In Thousands) September 30, 2018 U.S. Government and federal agency obligations $ 4,430 $ - $ 4,430 $ - Debt securities issued by states of the United States and political subdivisions of the states 2,562 - 2,562 - Corporate bonds and notes 14,259 - 14,259 - Preferred stock 1,954 1,954 - - Asset-backed securities 960 - 960 - Mortgage-backed securities 1,210 - 1,210 - Marketable equity securities 1,967 1,967 - - Totals $ 27,342 $ 3,921 $ 23,421 $ - December 31, 2017: U.S. Government and federal agency obligations $ 5,325 $ - $ 5,325 $ - Debt securities issued by states of the United States and political subdivisions of the states 2,881 - 2,881 - Corporate bonds and notes 11,294 - 11,294 - Preferred stock 3,013 3,013 - - Mortgage-backed securities 1,448 - 1,448 - Marketable equity securities 2,535 2,535 - - Totals $ 26,496 $ 5,548 $ 20,948 $ - Under certain circumstances the Company makes adjustments to fair value for its assets and liabilities although they are not measured at fair value on a recurring basis. At September 30, 2018 (unaudited) and December 31, 2017, there were no assets or liabilities carried on the consolidated balance sheets for which a nonrecurring change in fair value has been recorded. The estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows: September 30, 2018 (unaudited) Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ 18,979 $ 18,979 $ - $ - $ 18,979 Available-for-sale securities 27,342 3,921 23,421 - 27,342 Federal Home Loan Bank stock 2,285 2,285 - - 2,285 Loans, net 262,265 - - 264,112 264,112 Co-operative Central Bank deposit 891 891 - - 891 Accrued interest receivable 834 834 - - 834 Financial liabilities: Deposits 240,651 - 240,784 - 240,784 FHLB advances 36,000 - 34,931 - 34,931 December 31, 2017 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ 17,603 $ 17,603 $ - $ - $ 17,603 Available-for-sale securities 26,496 5,548 20,948 - 26,496 Federal Home Loan Bank stock 1,800 1,800 - - 1,800 Loans, net 251,317 - - 252,792 252,792 Co-operative Central Bank deposit 886 886 - - 886 Accrued interest receivable 702 702 - - 702 Financial liabilities: Deposits 232,921 - 232,899 - 232,899 FHLB advances 29,000 - 28,660 - 28,660 The carrying amounts of financial instruments shown in the above tables are included in the consolidated balance sheets under the indicated captions. Accounting policies related to financial instruments are described in Note 2. |
Other Comprehensive Loss
Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Other Comprehensive Loss [Abstract] | |
OTHER COMPREHENSIVE LOSS | NOTE 10 - OTHER COMPREHENSIVE LOSS Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. The components of other comprehensive loss, included in stockholders’ equity, are as follows: Three months ended Nine months ended 2018 2017 2018 2017 (In thousands) (unaudited) Net unrealized holding (loss)/gain on available-for-sale securities $ (70 ) $ 48 $ (350 ) $ 545 Reclassification adjustment for net realized gains included in net income (1) (103 ) (388 ) (342 ) (1,195 ) Other comprehensive loss before income tax effect (173 ) (340 ) (692 ) (650 ) Income tax benefit 44 133 175 285 Other comprehensive loss, net of tax $ (129 ) $ (207 ) $ (517 ) $ (365 ) (1) Reclassification adjustments include net realized securities gains. Realized gains have been reclassified out of accumulated other comprehensive loss and affect certain captions in the consolidated statements of income as follows: pre-tax amount for the three and nine months ended September 30, 2018, is reflected as gain on sales and calls of available-for-sale securities, net of $103,000 and $342,000, respectively. The tax effect, included in income tax expense for the three and nine months ended September 30, 2018, was $27,000 and $88,000, respectively. Pre-tax amount for the three and nine months ended September 30, 2017 is reflected as a gain on sales and calls of available-for-sale securities, net of $388,000 and $1.2 million, respectively. The tax effect, included in income tax expense for the three and nine months ended September 30, 2017 was $136,000 and $420,000, respectively. The after tax amounts are included in net income. Accumulated other comprehensive (loss)/income as of September 30, 2018 (unaudited) and December 31, 2017 consists of net unrealized holding (losses)/gains on available-for-sale securities, net of taxes. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Matters [Abstract] | |
REGULATORY MATTERS | NOTE 11 - REGULATORY MATTERS The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Effective January 1, 2015, (with a phase-in period of two to four years for certain components), the Bank became subject to capital regulations adopted by the Board of Governors of the Federal Reserve System (“FRB”) and the FDIC, which implement the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The regulations require a common equity Tier 1 (“CET1”) capital ratio of 4.5%, a minimum Tier 1 capital to risk-weighted assets ratio of 6.0%, a minimum total capital to risk-weighted assets ratio of 8.0% and a minimum Tier 1 leverage ratio of 4.0%. CET1 generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. Under prompt corrective action regulations, in order to be considered “well capitalized,” the Bank must maintain a CET1 capital ratio of 6.5%, a Tier 1 risk based capital ratio of 8.0%, a total risk based capital ratio of 10.0%, and a Tier 1 leverage ratio of 5.0%. In addition, the regulations establish a capital conservation buffer above the required capital ratios that began phasing in January 1, 2016 at 0.625% of risk-weighted assets and increases each year by 0.625% until it is fully phased in at 2.5% effective January 1, 2019. Failure to maintain the capital conservation buffer will limit the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses. At September, 30, 2018 (unaudited), the Bank exceeded the fully phased in regulatory requirement for the capital conservation buffer. Management believes, as of September 30, 2018 (unaudited), that the Bank meets all capital adequacy requirements to which it is subject. As of September 30, 2018, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum Common Equity Tier 1 risk-based, total risk-based, Tier 1 risk-based and Tier 1 leverage capital ratios as set forth in the following table. There were no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios as of September 30, 2018 (unaudited) and December 31, 2017 are presented in the following table. Actual For Capital To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars In Thousands) At September 30, 2018 (unaudited): Total Capital (to Risk Weighted Assets) $ 38,713 17.27 % $ 17,931 8.0 % $ 22,414 10.0 % Tier 1 Capital (to Risk Weighted Assets) 37,286 16.64 13,448 6.0 17,931 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 37,286 16.64 10,086 4.5 14,569 6.5 Tier 1 Capital (to Average Assets) 37,286 12.07 12,353 4.0 15,441 5.0 As of December 31, 2017: Total Capital (to Risk Weighted Assets) $ 35,297 19.80 % $ 15,007 8.0 % $ 18,759 10.0 % Tier 1 Capital (to Risk Weighted Assets) 36,314 19.08 11,255 6.0 15,007 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 36,314 19.08 8,441 4.5 12,193 6.5 Tier 1 Capital (to Average Assets) 36,314 12.59 11,373 4.0 14,216 5.0 |
Common Stock Repurchases
Common Stock Repurchases | 9 Months Ended |
Sep. 30, 2018 | |
Common Stock Repurchases [Abstract] | |
COMMON STOCK REPURCHASES | NOTE 12 – COMMON STOCK REPURCHASES From time to time, our board of directors authorizes stock repurchase plans. In general, stock repurchase plans allow us to proactively manage our capital position and return excess capital to shareholders. Shares purchased under such plans also provide us with shares of common stock necessary to satisfy obligations related to stock compensation awards. On September 14, 2017, the board of directors of the Company authorized an increase in the number of shares that may be repurchased pursuant to the Company’s stock repurchase plan that was previously announced on November 12, 2015. Under the expanded repurchase plan, the Company is authorized to repurchase an additional 130,037 shares, representing approximately 5.0% of the Company’s issued and outstanding shares of common stock as of September 14, 2017. As of September 14, 2017, the Company had 11,200 shares remaining to be purchased under its previously announced share repurchase plan of 283,000. The actual amount and timing of future share repurchases, if any, will depend on market conditions, applicable SEC rules and various other factors. As of September 30, 2018, the Company had 124,037 shares remaining to be repurchased pursuant to its repurchase plans. During the nine months ended September 30, 2018 (unaudited), the Company repurchased 17,200 shares of common stock at an average cost of $19.42 per share. Common stock repurchases for the three months ended September 30, 2018 are presented in the following table. Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs July 1, 2018 to July 31, 2018 5,000 19.50 5,000 126,237 August 1, 2018 to August 31, 2018 - - - 126,237 September 1, 2018 to September 30, 2018 2,200 19.75 2,200 124,037 During the nine months ended September 30, 2018, 1,219 shares of common stock were repurchased, as a result of net settlements in connection with the second annual installment of stock awards vesting. During the nine months ended September 30, 2017, 1,336 shares of common stock were repurchased, as a result of net settlements in connection with the first annual installment of stock awards vesting. These net settlements were not part of the Company’s repurchase plan; the Company was required to purchase these shares for the payment of incomes taxes withheld on unvested restricted stock awards. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Stock Based Compensation [Abstract] | |
STOCK BASED COMPENSATION | NOTE 13 – STOCK BASED COMPENSATION Melrose Bancorp, Inc. adopted the Melrose Bancorp, Inc. 2015 Equity Incentive Plan (the “2015 Equity Incentive Plan”) to provide directors, officers, and employees of the Company and the Bank with additional incentives to promote growth and performance of the Company and the Bank. The 2015 Equity Incentive Plan authorizes the issuance or delivery to participants of up to 396,140 shares of Melrose Bancorp, Inc. common stock pursuant to grants of incentive and non-statutory stock options, restricted stock awards, and restricted stock units. Of this number, the maximum number of shares of Melrose Bancorp, Inc. common stock that may be issued under the 2015 Equity Incentive Plan pursuant to the exercise of stock options is 282,957 shares, and the maximum number of shares of Melrose Bancorp, Inc. common stock that may be issued as restricted stock awards or restricted stock units is 113,183 shares. The 2015 Equity Incentive Plan was effective upon approval by stockholders at the November 23, 2015 annual meeting. On May 12, 2016, the Company issued 44,300 shares of common stock restricted stock awards. The restricted stock award expense is based on the grant date fair value of $15.13 per share, and shares vest over 5 years commencing one year from the grant date. The total expense recognized for the three and nine months ended September 30, 2018, in connection with the restricted stock awards was $34,000 and $101,000, respectively (unaudited), and the recognized tax benefit was $9,000 and $26,000, respectively (unaudited). There were no forfeitures during the three and nine month period ending September 30, 2018. During the three and nine month period ending September 30, 2017, the expense was $34,000 and $101,000, respectively (unaudited), and the recognized tax benefit was $12,000 and $35,000, respectively (unaudited). There were no forfeitures during the three and nine month period ending September 30, 2017. On May 12, 2016, the Company granted 224,200 stock options. The stock options have an exercise price of $15.13 per share, and vest ratably over 5 years commencing one year from the date of the grant. The stock option expense is equal to the number of options expected to vest each year times the grant date fair value of the shares as determined using the Black-Scholes option pricing model. The Company completed an analysis of seven peer banks to determine the expected volatility of 20.24%. The exercise price used in the pricing model was $15.13, the closing price of the stock on the grant date. The expected life was estimated to be 6.5 years and the 7 year treasury rate of 1.54% was used as the annual risk free interest rate. The expected forfeiture rate is 0%. Using these variables, the estimated fair value is $3.71 per share. The aggregate intrinsic value of outstanding stock options is $1.0 million as of September 30, 2018. The total expense recognized for the three and nine months ended September 30, 2018, in connection with the stock options was $41,000 and $124,000, respectively (unaudited), and the recognized tax benefit was $3,000 and $10,000, respectively (unaudited). There were no forfeitures during the three and nine month period ending September 30, 2018. There were no stock options exercised during the three months ended September 30, 2018. During the nine months ended September 30, 2018, there were 9,100 options exercised. During the three and nine month period ending September 30, 2017 the stock option expense was $42,000 and $124,000, respectively (unaudited), and the recognized tax benefit was $4,000 and $13,000 (unaudited). There were no forfeitures or options exercised during the three and nine month period ending September 30, 2017. At September 30, 2018 (unaudited), the unrecognized share based compensation expense related to the 26,580 unvested restricted stock awards amounted to $350,000. The unrecognized expense will be recognized over a weighted average period of 2.6 years. At September 30, 2018 (unaudited), 80,580 of the 215,100 stock options outstanding are exercisable, and the remaining contractual life is 7.6 years. The unrecognized expense related to the unvested options is $435,000 and will be recognized over a weighted average period of 2.6 years. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Event [Abstract] | |
SUBSEQUENT EVENT | NOTE 14 – SUBSEQUENT EVENT In October of 2018, a total of 9,000 shares of common stock were repurchased at an average cost of $19.75 per share. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiary, MCBSC, Inc., which is used to hold investment securities. All significant intercompany accounts and transactions have been eliminated in the consolidation. |
USE OF ESTIMATES | USE OF ESTIMATES: In preparing consolidated financial statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS: For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks, money market funds and federal funds sold. |
SECURITIES | SECURITIES: Investments in debt securities are adjusted for amortization of premiums and accretion of discounts computed so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis. The Company classifies all debt and equity securities as available-for-sale. Available-for-sale securities are carried at fair value in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, but are reported as a net amount (less expected tax) in a separate component of stockholders’ equity until realized. The security classification may be modified after acquisition only under certain specified conditions. For any debt security with a fair value less than its amortized cost basis, the Company will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in other comprehensive loss. Declines in marketable equity securities below their cost that are deemed other-than-temporary are reflected in earnings as realized losses. |
FEDERAL HOME LOAN BANK STOCK | FEDERAL HOME LOAN BANK STOCK: As a member of the Federal Home Loan Bank of Boston (FHLB), the Bank is required to invest in $100 par value stock of the FHLB. The FHLB capital structure mandates that members must own stock as determined by their Total Stock Investment Requirement which is the sum of a member’s Membership Stock Investment Requirement and Activity-Based Stock Investment Requirement, as defined. Management evaluates the Company’s investment in FHLB stock for other-than-temporary impairment at least on a quarterly basis and more frequently when economic or market conditions warrant such evaluation. Based on its most recent analysis of the FHLB as of September |
CO-OPERATIVE CENTRAL BANK AND SHARE INSURANCE FUND | CO-OPERATIVE CENTRAL BANK AND SHARE INSURANCE FUND: All Massachusetts-chartered co-operative banks are required to be members of the Co-operative Central Bank, which maintains the Share Insurance Fund that insures co-operative bank deposits in excess of federal deposit insurance coverage. The Co-operative Central Bank is authorized to charge co-operative banks an annual assessment fee on deposit balances in excess of amounts insured by the FDIC. Assessment rates are based on the institution’s risk category, similar to the method currently used to determine assessments by the FDIC. |
LOANS | LOANS: Loans receivable that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for amounts due to borrowers on outstanding home equity lines of credit, commercial lines of credit and construction loans, any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount amortized as an adjustment of the related loan’s yield. The Company is amortizing these amounts over the expected lives of the related loans. Residential real estate loans are generally placed on nonaccrual when reaching 90 days past due or are in the process of foreclosure. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on nonaccrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans which are 90 days or more past due are generally placed on nonaccrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans are recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES: The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT: Land is carried at cost. Buildings and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Depreciation and amortization are calculated principally on the straight-line method over the estimated useful lives of the assets. Estimated lives are 15 to 40 years for buildings and 3 to 10 years for furniture and equipment. Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. |
BANK-OWNED LIFE INSURANCE | BANK-OWNED LIFE INSURANCE: The Company has purchased insurance policies on the lives of certain directors, executive officers and employees. Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are not subject to income taxes. |
ADVERTISING | ADVERTISING: The Company directly expenses costs associated with advertising as they are incurred. |
INCOME TAXES | INCOME TAXES: The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. |
EMPLOYEE STOCK OWNERSHIP PLAN | EMPLOYEE STOCK OWNERSHIP PLAN: Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated balance sheets. The difference between the average fair value and the cost of shares allocated by the ESOP is recorded as an adjustment to additional paid-in-capital. |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION: The Company recognizes stock-based compensation based on the grant-date fair value of the award. Forfeitures will be recognized when they occur. The Company values share-based stock option awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for its awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. |
EARNINGS PER SHARE (EPS) | EARNINGS PER SHARE (EPS): Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding adjusted to exclude the weighted average number of unallocated shares held by the ESOP and weighted average shares of unearned restricted stock. Diluted EPS reflects 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 earnings of the entity. For the purposes of computing diluted EPS, the treasury stock method is used. The calculation of basic and diluted EPS (unaudited) is presented below. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (In thousands, except share data) Net income $ 442 $ 631 $ 1,301 $ 1,579 Basic Common Shares: Weighted average common shares outstanding 2,593,648 2,600,743 2,598,234 2,601,485 Weighted average shares - unearned restricted stock (23,885 ) (32,741 ) (26,078 ) (34,925 ) Weighted average unallocated ESOP shares (191,469 ) (199,013 ) (194,298 ) (200,899 ) Basic weighted average shares outstanding 2,378,294 2,368,989 2,377,858 2,365,661 Dilutive effect of unvested restricted stock awards 5,319 8,502 5,724 4,402 Dilutive effect of stock options 27,387 3,329 24,415 - Diluted weighted average shares outstanding 2,411,000 2,380,820 2,407,997 2,370,063 Basic earnings per share $ 0.19 $ 0.27 $ 0.55 $ 0.67 Diluted earnings per share (1) $ 0.18 $ 0.27 $ 0.54 $ 0.67 (1) For the nine months ended September 30, 2017, stock options were not included in the computation of dilutive earnings per share, because the effect is anti-dilutive. |
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS: Accounting Standards Codification (ASC) 825, “Financial Instruments,” requires that the Company disclose the estimated fair value for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows: Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate fair value. Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Federal Home Loan Bank stock: The carrying amounts reported in the consolidated balance sheets for Federal Home Loan Bank stock approximate fair value. Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Cooperative Central Bank deposits: The carrying amounts reported in the consolidated balance sheets for Cooperative Central Bank deposits approximate fair value. Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value. Deposit liabilities: The fair values for demand deposits (e.g., interest and non-interest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificate accounts are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar certificates to a schedule of aggregated expected monthly maturities on certificate accounts. Federal Home Loan Bank advances: Fair values for Federal Home Loan Bank advances are estimated using a discounted cash flow technique that applies interest rates currently being offered on advances to a schedule of aggregate expected monthly maturities on Federal Home Loan Bank advances. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS: As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of September 30, 2018, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. The extended transition period for an emerging growth company is five years, and the Company’s emerging growth status will end on December 31, 2019. In May 2014 and August 2015, respectively, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ASU 2014-09 and ASU 2015-14, “Revenue from Contracts with Customers (Topic 606).” The objective of ASU 2014-09 is to clarify principles for recognizing revenue and to develop a common revenue standard for Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under the extended transition period for an emerging growth company, the amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2018 and interim periods within that period. Earlier application is permitted only as of an annual reporting period beginning after December 31, 2016, include interim reporting periods within that reporting period. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. Based on the Company’s preliminary analysis of the effect of the new standard on its recurring revenue streams, the net quantitative impact of these presentation changes to noninterest income and noninterest expense is expected to be immaterial and will not affect net income. The Company is in the process of completing a full evaluation of the impact of the new standard, however, anticipates the adoption of this ASU will not have a material impact on its consolidated financial statements. In January 2016, the FASB issued 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. Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, the entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same manner. 2. Simplify the impairment assessment of equity investments without determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. 3. Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. 4. Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 5. Require an entity to present separately in other comprehensive loss the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. 6. Require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. 7. Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Under the extended transition period for an emerging growth company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of item 5 above is permitted as of the beginning of fiscal years or interim periods for which financial statements have not been issued. Early adoption of all other amendments in this ASU is not permitted. The Company is currently evaluating the amendments of ASU No. 2016-01 to determine the potential impact the new standard will have on the Company’s 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 fiscal years beginning after December 15, 2018, and interim periods therein. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This update will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the amendments of ASU No. 2016-13 to determine the potential impact the new standard will have on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for annual reporting beginning after December 15, 2018, and interim periods therein; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company anticipates the adoption of ASU No. 2017-08 will not have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update is effective for interim and annual periods in fiscal years beginning after December 15, 2019, an entity is permitted to early adopt any removed or modified disclosures upon issuance of the update and delay adoption of these additional disclosures until their effective date. The removed and modified disclosures will be adopted on a retrospective basis, and the new disclosures will be adopted on a prospective basis. The adoption will not have a material effect on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of calculation of basic and diluted EPS | Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (In thousands, except share data) Net income $ 442 $ 631 $ 1,301 $ 1,579 Basic Common Shares: Weighted average common shares outstanding 2,593,648 2,600,743 2,598,234 2,601,485 Weighted average shares - unearned restricted stock (23,885 ) (32,741 ) (26,078 ) (34,925 ) Weighted average unallocated ESOP shares (191,469 ) (199,013 ) (194,298 ) (200,899 ) Basic weighted average shares outstanding 2,378,294 2,368,989 2,377,858 2,365,661 Dilutive effect of unvested restricted stock awards 5,319 8,502 5,724 4,402 Dilutive effect of stock options 27,387 3,329 24,415 - Diluted weighted average shares outstanding 2,411,000 2,380,820 2,407,997 2,370,063 Basic earnings per share $ 0.19 $ 0.27 $ 0.55 $ 0.67 Diluted earnings per share (1) $ 0.18 $ 0.27 $ 0.54 $ 0.67 (1) For the nine months ended September 30, 2017, stock options were not included in the computation of dilutive earnings per share, because the effect is anti-dilutive. |
Investments in Available-For-_2
Investments in Available-For-Sale Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments in Available-For-Sale Securities [Abstract] | |
Schedule of amortized cost basis of securities and their approximate fair values | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) September 30, 2018 U.S. Government and federal agency obligations $ 4,544 $ - $ 114 $ 4,430 Debt securities issued by states of the United States and political subdivisions of the states 2,630 - 68 2,562 Corporate bonds and notes 14,465 4 210 14,259 Preferred stock 2,000 4 50 1,954 Asset-backed securities 1,013 - 53 960 Mortgage-backed securities 1,262 - 52 1,210 Marketable equity securities 1,817 160 10 1,967 $ 27,731 $ 168 $ 557 $ 27,342 December 31, 2017: U.S. Government and federal agency obligations $ 5,390 $ - $ 65 $ 5,325 Debt securities issued by states of the United States and political subdivisions of the states 2,898 12 29 2,881 Corporate bonds and notes 11,364 7 77 11,294 Preferred stock 3,000 13 - 3,013 Mortgage-backed securities 1,495 - 47 1,448 Marketable equity securities 2,046 490 1 2,535 $ 26,193 $ 522 $ 219 $ 26,496 |
Schedule maturities of debt securities | Fair (In Thousands) Due within one year $ 2,483 Due after one year through five years 16,494 Due after five years through ten years 2,069 Due after ten years 1,209 Asset-backed securities 960 Mortgage-backed securities 1,210 $ 24,425 |
Schedule of aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position | Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) September 30, 2018 U.S. Government and federal agency obligations $ 1,321 $ 43 $ 3,109 $ 71 $ 4,430 $ 114 Debt securities issued by states of the United States and political subdivisions of the states 1,780 41 782 27 2,562 68 Corporate bonds and notes 10,639 137 2,925 73 13,564 210 Preferred stock 950 50 - - 950 50 Asset-backed securities 960 53 - - 960 53 Mortgage-backed securities - - 1,210 52 1,210 52 Marketable equity securities 1,699 10 - - 1,699 10 Total temporarily impaired securities $ 17,349 $ 334 $ 8,026 $ 223 $ 25,375 $ 557 December 31, 2017 U.S. Government and federal agency obligations $ 2,855 $ 20 $ 2,470 $ 45 $ 5,325 $ 65 Debt securities issued by states of the United States and political subdivisions of the states 991 6 535 23 1,526 29 Corporate bonds and notes 4,467 24 3,946 53 8,413 77 Mortgage-backed securities 453 6 995 41 1,448 47 Marketable equity securities 485 1 - - 485 1 Total temporarily impaired securities $ 9,251 $ 57 $ 7,946 $ 162 $ 17,197 $ 219 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans [Abstract] | |
Schedule of loans | September 30, December 31, 2018 2017 (In Thousands) (unaudited) Real estate loans: One-to four-family residential $ 183,860 $ 189,763 Home equity loans and lines of credit 12,453 11,585 Commercial 56,175 34,686 Construction 10,655 15,853 Consumer loans 52 44 Total loans 263,195 251,931 Allowance for loan losses (1,358 ) (1,134 ) Deferred loan (fees)/costs, net (9 ) 35 Unamortized premiums 437 485 Net loans $ 262,265 $ 251,317 |
Schedule of loans and allowance for loan losses | Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) Three Months Ended September 30, 2018 (unaudited) Allowance for loan losses: Beginning balance $ 476 $ 51 $ 678 $ 71 $ 1 $ 28 $ 1,305 Charge offs - - - - - - - Recoveries - - - - - - - (Benefit)/provision (9 ) 4 106 (48 ) - - 53 Ending balance $ 467 $ 55 $ 784 $ 23 $ 1 $ 28 $ 1,358 Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) Three Months Ended September 30, 2017 (unaudited) Allowance for loan losses: Beginning balance $ 451 $ 52 $ 317 $ 131 $ 1 $ 29 $ 981 Charge offs - - - - - - - Recoveries - - - - - - - (Benefit)/provision 6 3 32 (38 ) - - 3 Ending balance $ 457 $ 55 $ 349 $ 93 $ 1 $ 29 $ 984 Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) Nine Months Ended September 30, 2018 (unaudited) Allowance for loan losses: Beginning balance $ 481 $ 52 $ 472 $ 107 $ 1 $ 21 $ 1,134 Charge offs - - - - - - - Recoveries - - - - - - - (Benefit)/provision (14 ) 3 312 (84 ) - 7 224 Ending balance $ 467 $ 55 $ 784 $ 23 $ 1 $ 28 $ 1,358 Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) Nine Months Ended September 30, 2017 (unaudited) Allowance for loan losses: Beginning balance $ 418 $ 49 $ 276 $ 117 $ 1 $ 29 $ 890 Charge offs - - - - - - - Recoveries - - - - - - - Provision/(benefit) 39 6 73 (24 ) - - 94 Ending balance $ 457 $ 55 $ 349 $ 93 $ 1 $ 29 $ 984 Real Estate: One- to four- family Residential Home Equity Loans and Lines of Credit Commercial Construction Consumer Loans Unallocated Total (In Thousands) At September 30, 2018 (unaudited) Allowance for loan losses: Ending Balance: Individually evaluated for impairment $ 8 $ - $ - $ - $ - $ - $ 8 Ending balance: Collectively evaluated for impairment 459 55 784 23 1 28 1,350 Total allowance for loan losses ending balance $ 467 $ 55 $ 784 $ 23 $ 1 $ 28 $ 1,358 Loans: Ending balance: Individually evaluated for impairment $ 98 $ - $ - $ - $ - $ - $ 98 Ending balance: Collectively evaluated for impairment 183,762 12,453 56,175 10,655 52 - 263,097 Total loans ending balance $ 183,860 $ 12,453 $ 56,175 $ 10,655 $ 52 $ - $ 263,195 At December 31, 2017 Allowance for loan losses: Ending Balance: Individually evaluated for impairment $ 8 $ - $ - $ - $ - $ - $ 8 Ending balance: Collectively evaluated for impairment 473 52 472 107 1 21 1,126 Total allowance for loan losses ending balance $ 481 $ 52 $ 472 $ 107 $ 1 $ 21 $ 1,134 Loans: Ending balance: Individually evaluated for impairment $ 100 $ - $ - $ - $ - $ - $ 100 Ending balance: Collectively evaluated for impairment 189,663 11,585 34,686 15,853 44 - 251,831 Total loans ending balance $ 189,763 $ 11,585 $ 34,686 $ 15,853 $ 44 $ - $ 251,931 |
Schedule of information regarding nonaccrual loans and past-due loans | 30 - 59 60 - 89 90 Days or More Past Due Total Past Due Total Total 90 Days or More Past Due and Accruing Non- (In Thousands) At September 30, 2018 (unaudited) Real estate loans: One-to four-family residential $ 358 $ - $ 171 $ 529 $ 183,331 $ 183,860 $ - $ 353 Home equity loans and lines of credit - - - - 12,453 12,453 - - Commercial - - - - 56,175 56,175 - - Construction - - - - 10,655 10,655 - - Consumer loans 1 - - 1 51 52 - - Total $ 359 $ - $ 171 $ 530 $ 262,665 $ 263,195 $ - $ 353 At December 31, 2017 Real estate loans: One-to four-family residential $ 295 $ 177 $ - $ 472 $ 189,291 $ 189,763 $ - $ 189 Home equity loans and lines of credit 189 - - 189 11,396 11,585 - - Commercial - - - - 34,686 34,686 - - Construction - - - - 15,853 15,853 - - Consumer loans - - - - 44 44 - - Total $ 484 $ 177 $ - $ 661 $ 251,270 $ 251,931 $ - $ 189 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Premises and Equipment [Abstract] | |
Schedule of premises and equipment | September 30, December 31, 2018 2017 (In Thousands) (unaudited) Land $ 393 $ 393 Building 3,305 2,070 Construction in process - 641 Furniture and equipment 642 553 Data processing equipment 468 360 4,808 4,017 Accumulated depreciation (2,133 ) (2,024 ) $ 2,675 $ 1,993 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deposit [Abstract] | |
Schedule of maturities | (In Thousands) 2019 $ 76,412 2020 41,223 2021 11,088 2022 2,048 2023 782 $ 131,553 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Borrowed Funds [Abstract] | |
Schedule of maturities of advances from the FHLB | 2019 $ 10,000 2020 16,000 2021 10,000 $ 36,000 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Financial Instruments [Abstract] | |
Schedule of financial instrument liabilities with off-balance sheet credit risk | September 30, December 31, 2018 2017 (In Thousands) Commitments to originate loans $ 9,337 $ 2,401 Unused lines of credit 20,510 17,611 Due to borrowers on unadvanced construction loans 2,770 2,320 $ 32,617 $ 22,332 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurements at Reporting Date Using: Total Quoted Prices in Significant Significant (In Thousands) September 30, 2018 U.S. Government and federal agency obligations $ 4,430 $ - $ 4,430 $ - Debt securities issued by states of the United States and political subdivisions of the states 2,562 - 2,562 - Corporate bonds and notes 14,259 - 14,259 - Preferred stock 1,954 1,954 - - Asset-backed securities 960 - 960 - Mortgage-backed securities 1,210 - 1,210 - Marketable equity securities 1,967 1,967 - - Totals $ 27,342 $ 3,921 $ 23,421 $ - December 31, 2017: U.S. Government and federal agency obligations $ 5,325 $ - $ 5,325 $ - Debt securities issued by states of the United States and political subdivisions of the states 2,881 - 2,881 - Corporate bonds and notes 11,294 - 11,294 - Preferred stock 3,013 3,013 - - Mortgage-backed securities 1,448 - 1,448 - Marketable equity securities 2,535 2,535 - - Totals $ 26,496 $ 5,548 $ 20,948 $ - |
Schedule of financial instruments held or issued for purposes other than trading | September 30, 2018 (unaudited) Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ 18,979 $ 18,979 $ - $ - $ 18,979 Available-for-sale securities 27,342 3,921 23,421 - 27,342 Federal Home Loan Bank stock 2,285 2,285 - - 2,285 Loans, net 262,265 - - 264,112 264,112 Co-operative Central Bank deposit 891 891 - - 891 Accrued interest receivable 834 834 - - 834 Financial liabilities: Deposits 240,651 - 240,784 - 240,784 FHLB advances 36,000 - 34,931 - 34,931 December 31, 2017 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ 17,603 $ 17,603 $ - $ - $ 17,603 Available-for-sale securities 26,496 5,548 20,948 - 26,496 Federal Home Loan Bank stock 1,800 1,800 - - 1,800 Loans, net 251,317 - - 252,792 252,792 Co-operative Central Bank deposit 886 886 - - 886 Accrued interest receivable 702 702 - - 702 Financial liabilities: Deposits 232,921 - 232,899 - 232,899 FHLB advances 29,000 - 28,660 - 28,660 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Comprehensive Loss [Abstract] | |
Schedule of components of other comprehensive loss included in stockholders' equity | Three months ended Nine months ended 2018 2017 2018 2017 (In thousands) (unaudited) Net unrealized holding (loss)/gain on available-for-sale securities $ (70 ) $ 48 $ (350 ) $ 545 Reclassification adjustment for net realized gains included in net income (1) (103 ) (388 ) (342 ) (1,195 ) Other comprehensive loss before income tax effect (173 ) (340 ) (692 ) (650 ) Income tax benefit 44 133 175 285 Other comprehensive loss, net of tax $ (129 ) $ (207 ) $ (517 ) $ (365 ) (1) Reclassification adjustments include net realized securities gains. Realized gains have been reclassified out of accumulated other comprehensive loss and affect certain captions in the consolidated statements of income as follows: pre-tax amount for the three and nine months ended September 30, 2018, is reflected as gain on sales and calls of available-for-sale securities, net of $103,000 and $342,000, respectively. The tax effect, included in income tax expense for the three and nine months ended September 30, 2018, was $27,000 and $88,000, respectively. Pre-tax amount for the three and nine months ended September 30, 2017 is reflected as a gain on sales and calls of available-for-sale securities, net of $388,000 and $1.2 million, respectively. The tax effect, included in income tax expense for the three and nine months ended September 30, 2017 was $136,000 and $420,000, respectively. The after tax amounts are included in net income. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Matters [Abstract] | |
Schedule of bank's actual capital amounts and ratios | Actual For Capital To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars In Thousands) At September 30, 2018 (unaudited): Total Capital (to Risk Weighted Assets) $ 38,713 17.27 % $ 17,931 8.0 % $ 22,414 10.0 % Tier 1 Capital (to Risk Weighted Assets) 37,286 16.64 13,448 6.0 17,931 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 37,286 16.64 10,086 4.5 14,569 6.5 Tier 1 Capital (to Average Assets) 37,286 12.07 12,353 4.0 15,441 5.0 As of December 31, 2017: Total Capital (to Risk Weighted Assets) $ 35,297 19.80 % $ 15,007 8.0 % $ 18,759 10.0 % Tier 1 Capital (to Risk Weighted Assets) 36,314 19.08 11,255 6.0 15,007 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 36,314 19.08 8,441 4.5 12,193 6.5 Tier 1 Capital (to Average Assets) 36,314 12.59 11,373 4.0 14,216 5.0 |
Common Stock Repurchases (Table
Common Stock Repurchases (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Common Stock Repurchases [Abstract] | |
Schedule of common stock repurchases | Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs July 1, 2018 to July 31, 2018 5,000 19.50 5,000 126,237 August 1, 2018 to August 31, 2018 - - - 126,237 September 1, 2018 to September 30, 2018 2,200 19.75 2,200 124,037 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | ||||
Net income | $ 442 | $ 631 | $ 1,301 | $ 1,579 |
Basic Common Shares: | ||||
Weighted average common shares outstanding | 2,593,648 | 2,600,743 | 2,598,234 | 2,601,485 |
Weighted average shares - unearned restricted stock | (23,885) | (32,741) | (26,078) | (34,925) |
Weighted average unallocated ESOP shares | (191,469) | (199,013) | (194,298) | (200,899) |
Basic weighted average shares outstanding | 2,378,294 | 2,368,989 | 2,377,858 | 2,365,661 |
Dilutive effect of unvested restricted stock awards | 5,319 | 8,502 | 5,724 | 4,402 |
Dilutive effect of stock options | 27,387 | 3,329 | 24,415 | |
Diluted weighted average shares outstanding | 2,411,000 | 2,380,820 | 2,407,997 | 2,370,063 |
Basic earnings per share | $ 0.19 | $ 0.27 | $ 0.55 | $ 0.67 |
Diluted earnings per share | $ 0.18 | $ 0.27 | $ 0.54 | $ 0.67 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies (Textual) | ||
Par value stock | $ 0.01 | $ 0.01 |
Building [Member] | Minimum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Estimated useful lives | 15 years | |
Building [Member] | Maximum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Estimated useful lives | 40 years | |
Furniture and equipment [Member] | Minimum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Estimated useful lives | 3 years | |
Furniture and equipment [Member] | Maximum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Estimated useful lives | 10 years | |
Federal Home Loan Bank of Boston [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Par value stock | $ 100 |
Investments in Available-For-_3
Investments in Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | $ 27,731 | $ 26,193 |
Gross Unrealized Gains | 168 | 522 |
Gross Unrealized Losses | 557 | 219 |
Fair Value | 27,342 | 26,496 |
U.S. Government and federal agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 4,544 | 5,390 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 114 | 65 |
Fair Value | 4,430 | 5,325 |
Debt securities issued by states of the United States and political subdivisions of the states [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 2,630 | 2,898 |
Gross Unrealized Gains | 12 | |
Gross Unrealized Losses | 68 | 29 |
Fair Value | 2,562 | 2,881 |
Corporate bonds and notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 14,465 | 11,364 |
Gross Unrealized Gains | 4 | 7 |
Gross Unrealized Losses | 210 | 77 |
Fair Value | 14,259 | 11,294 |
Preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 2,000 | 3,000 |
Gross Unrealized Gains | 4 | 13 |
Gross Unrealized Losses | 50 | |
Fair Value | 1,954 | 3,013 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 1,013 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 53 | |
Fair Value | 960 | |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 1,262 | 1,495 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 52 | 47 |
Fair Value | 1,210 | 1,448 |
Marketable equity securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 1,817 | 2,046 |
Gross Unrealized Gains | 160 | 490 |
Gross Unrealized Losses | 10 | 1 |
Fair Value | $ 1,967 | $ 2,535 |
Investments in Available-For-_4
Investments in Available-For-Sale Securities (Details 1) $ in Thousands | Sep. 30, 2018USD ($) |
Fair Value | |
Due within one year | $ 2,483 |
Due after one year through five years | 16,494 |
Due after five years through ten years | 2,069 |
Due after ten years | 1,209 |
Asset-backed securities | 960 |
Mortgage-backed securities | 1,210 |
Total | $ 24,425 |
Investments in Available-For-_5
Investments in Available-For-Sale Securities (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 17,349 | $ 9,251 |
Less than 12 Months, Unrealized Losses | 334 | 57 |
12 Months or Longer, Fair Value | 8,026 | 7,946 |
12 Months or Longer, Unrealized Losses | 223 | 162 |
Total, Fair Value | 25,375 | 17,197 |
Total, Unrealized Losses | 557 | 219 |
U.S. Government and federal agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 1,321 | 2,855 |
Less than 12 Months, Unrealized Losses | 43 | 20 |
12 Months or Longer, Fair Value | 3,109 | 2,470 |
12 Months or Longer, Unrealized Losses | 71 | 45 |
Total, Fair Value | 4,430 | 5,325 |
Total, Unrealized Losses | 114 | 65 |
Debt securities issued by states of the United States and political subdivisions of the states [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 1,780 | 991 |
Less than 12 Months, Unrealized Losses | 41 | 6 |
12 Months or Longer, Fair Value | 782 | 535 |
12 Months or Longer, Unrealized Losses | 27 | 23 |
Total, Fair Value | 2,562 | 1,526 |
Total, Unrealized Losses | 68 | 29 |
Corporate bonds and notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 10,639 | 4,467 |
Less than 12 Months, Unrealized Losses | 137 | 24 |
12 Months or Longer, Fair Value | 2,925 | 3,946 |
12 Months or Longer, Unrealized Losses | 73 | 53 |
Total, Fair Value | 13,564 | 8,413 |
Total, Unrealized Losses | 210 | 77 |
Preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 950 | |
Less than 12 Months, Unrealized Losses | 50 | |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | 950 | |
Total, Unrealized Losses | 50 | |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 960 | |
Less than 12 Months, Unrealized Losses | 53 | |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | 960 | |
Total, Unrealized Losses | 53 | |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 453 | |
Less than 12 Months, Unrealized Losses | 6 | |
12 Months or Longer, Fair Value | 1,210 | 995 |
12 Months or Longer, Unrealized Losses | 52 | 41 |
Total, Fair Value | 1,210 | 1,448 |
Total, Unrealized Losses | 52 | 47 |
Marketable equity securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 1,699 | 485 |
Less than 12 Months, Unrealized Losses | 10 | 1 |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | 1,699 | 485 |
Total, Unrealized Losses | $ 10 | $ 1 |
Investments in Available-For-_6
Investments in Available-For-Sale Securities (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)Securities | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Securities | Sep. 30, 2017USD ($) | |
Investments in Available for Sale Securities (Textual) | ||||
Preferred stock, no stated maturity | $ 950,000 | $ 950,000 | ||
Proceeds from sales of available-for-sale securities | 175,000 | $ 718,000 | 602,000 | $ 2,264,000 |
Gross realized gains on sales of available-for-sale securities | 103,000 | 388,000 | 357,000 | 1,200,000 |
Tax expense applicable to net realized gain | 27,000 | 136,000 | 88,000 | 420,000 |
Realized losses on available for sale securities | $ 0 | $ 0 | $ 15,000 | $ 0 |
Preferred stock [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Unrealized losses, securities | Securities | 1 | 1 | ||
Percentage of unrealized losses of debt securities with amortized cost | 5.00% | 5.00% | ||
Unrealized losses | $ 50,000 | $ 50,000 | ||
Municipal Bonds [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Unrealized losses, securities | Securities | 7 | 7 | ||
Percentage of unrealized losses of debt securities with amortized cost | 2.50% | 2.50% | ||
Unrealized losses | $ 68,000 | $ 68,000 | ||
Municipal Bonds [Member] | Maximum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 6.20% | 6.20% | ||
Municipal Bonds [Member] | Minimum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 5.00% | 5.00% | ||
Corporate Bond Securities [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Unrealized losses, securities | Securities | 24 | 24 | ||
Percentage of unrealized losses of debt securities with amortized cost | 4.00% | 4.00% | ||
Unrealized losses | $ 210,000 | $ 210,000 | ||
Corporate Bond Securities [Member] | Maximum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 5.50% | 5.50% | ||
Corporate Bond Securities [Member] | Minimum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 4.00% | 4.00% | ||
U.S. Government and federal agency obligations [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Unrealized losses, securities | Securities | 9 | 9 | ||
Percentage of unrealized losses of debt securities with amortized cost | 3.50% | 3.50% | ||
Unrealized losses | $ 114,000 | $ 114,000 | ||
U.S. Government and federal agency obligations [Member] | Maximum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 7.00% | 7.00% | ||
U.S. Government and federal agency obligations [Member] | Minimum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 3.50% | 3.50% | ||
Asset-backed securities [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Unrealized losses, securities | Securities | 4 | 4 | ||
Percentage of unrealized losses of debt securities with amortized cost | 1.00% | 1.00% | ||
Unrealized losses | $ 53,000 | $ 53,000 | ||
Asset-backed securities [Member] | Maximum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 6.40% | 6.40% | ||
Asset-backed securities [Member] | Minimum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 5.20% | 5.20% | ||
Mortgage-backed securities [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Unrealized losses, securities | Securities | 5 | 5 | ||
Unrealized losses | $ 52,000 | $ 52,000 | ||
Mortgage-backed securities [Member] | Maximum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 6.50% | 6.50% | ||
Mortgage-backed securities [Member] | Minimum [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Percentage of unrealized losses of debt securities with amortized cost | 1.80% | 1.80% | ||
Marketable Equity Securities [Member] | ||||
Investments in Available for Sale Securities (Textual) | ||||
Unrealized losses, securities | Securities | 2 | 2 | ||
Percentage of unrealized losses of debt securities with amortized cost | 1.00% | 1.00% | ||
Unrealized losses | $ 10,000 | $ 10,000 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 263,195 | $ 251,931 | ||||
Allowance for loan losses | (1,358) | $ (1,305) | (1,134) | $ (984) | $ (981) | $ (890) |
Deferred loan (fees)/costs, net | (9) | 35 | ||||
Unamortized premiums | 437 | 485 | ||||
Net loans | 262,265 | 251,317 | ||||
One-to four-family residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 183,860 | 189,763 | ||||
Allowance for loan losses | (467) | (476) | (481) | (457) | (451) | (418) |
Home equity loans and lines of credit [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 12,453 | 11,585 | ||||
Allowance for loan losses | (55) | (51) | (52) | (55) | (52) | (49) |
Commercial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 56,175 | 34,686 | ||||
Allowance for loan losses | (784) | (678) | (472) | (349) | (317) | (276) |
Construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 10,655 | 15,853 | ||||
Allowance for loan losses | (23) | (71) | (107) | (93) | (131) | (117) |
Consumer loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 52 | 44 | ||||
Allowance for loan losses | $ (1) | $ (1) | $ (1) | $ (1) | $ (1) | $ (1) |
Loans (Details 1)
Loans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule of Allowance for Loan Losses [Line Items] | |||||
Beginning balance | $ 1,305 | $ 981 | $ 1,134 | $ 890 | |
Charge offs | |||||
Recoveries | |||||
(Benefit)/provision | 53 | 3 | 224 | 94 | |
Ending balance | 1,358 | 984 | 1,358 | 984 | |
Individually evaluated for impairment | 8 | 8 | $ 8 | ||
Collectively evaluated for impairment | 1,350 | 1,350 | 1,126 | ||
Total allowance for loan losses ending balance | 1,358 | 1,358 | 1,134 | ||
Individually evaluated for impairment | 98 | 98 | 100 | ||
Collectively evaluated for impairment | 263,097 | 263,097 | 251,831 | ||
Total loans ending balance | 263,195 | 263,195 | 251,931 | ||
One-to four-family residential [Member] | |||||
Schedule of Allowance for Loan Losses [Line Items] | |||||
Beginning balance | 476 | 451 | 481 | 418 | |
Charge offs | |||||
Recoveries | |||||
(Benefit)/provision | (9) | 6 | (14) | 39 | |
Ending balance | 467 | 457 | 467 | 457 | |
Individually evaluated for impairment | 8 | 8 | 8 | ||
Collectively evaluated for impairment | 459 | 459 | 473 | ||
Total allowance for loan losses ending balance | 467 | 467 | 481 | ||
Individually evaluated for impairment | 98 | 98 | 100 | ||
Collectively evaluated for impairment | 183,762 | 183,762 | 189,663 | ||
Total loans ending balance | 183,860 | 183,860 | 189,763 | ||
Home Equity Loans and Lines of Credit [Member] | |||||
Schedule of Allowance for Loan Losses [Line Items] | |||||
Beginning balance | 51 | 52 | 52 | 49 | |
Charge offs | |||||
Recoveries | |||||
(Benefit)/provision | 4 | 3 | 3 | 6 | |
Ending balance | 55 | 55 | 55 | 55 | |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 55 | 55 | 52 | ||
Total allowance for loan losses ending balance | 55 | 55 | 52 | ||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 12,453 | 12,453 | 11,585 | ||
Total loans ending balance | 12,453 | 12,453 | 11,585 | ||
Commercial [Member] | |||||
Schedule of Allowance for Loan Losses [Line Items] | |||||
Beginning balance | 678 | 317 | 472 | 276 | |
Charge offs | |||||
Recoveries | |||||
(Benefit)/provision | 106 | 32 | 312 | 73 | |
Ending balance | 784 | 349 | 784 | 349 | |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 784 | 784 | 472 | ||
Total allowance for loan losses ending balance | 784 | 784 | 472 | ||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 56,175 | 56,175 | 34,686 | ||
Total loans ending balance | 56,175 | 56,175 | 34,686 | ||
Construction [Member] | |||||
Schedule of Allowance for Loan Losses [Line Items] | |||||
Beginning balance | 71 | 131 | 107 | 117 | |
Charge offs | |||||
Recoveries | |||||
(Benefit)/provision | (48) | (38) | (84) | (24) | |
Ending balance | 23 | 93 | 23 | 93 | |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 23 | 23 | 107 | ||
Total allowance for loan losses ending balance | 23 | 23 | 107 | ||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 10,655 | 10,655 | 15,853 | ||
Total loans ending balance | 10,655 | 10,655 | 15,853 | ||
Consumer Loans [Member] | |||||
Schedule of Allowance for Loan Losses [Line Items] | |||||
Beginning balance | 1 | 1 | 1 | 1 | |
Charge offs | |||||
Recoveries | |||||
(Benefit)/provision | |||||
Ending balance | 1 | 1 | 1 | 1 | |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 1 | 1 | 1 | ||
Total allowance for loan losses ending balance | 1 | 1 | 1 | ||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 52 | 52 | 44 | ||
Total loans ending balance | 52 | 52 | 44 | ||
Unallocated [Member] | |||||
Schedule of Allowance for Loan Losses [Line Items] | |||||
Beginning balance | 28 | 29 | 21 | 29 | |
Charge offs | |||||
Recoveries | |||||
(Benefit)/provision | 7 | ||||
Ending balance | 28 | $ 29 | 28 | $ 29 | |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 28 | 28 | 21 | ||
Total allowance for loan losses ending balance | 28 | 28 | 21 | ||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | |||||
Total loans ending balance |
Loans (Details 2)
Loans (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 530 | $ 661 |
Total Current | 262,665 | 251,270 |
Total | 263,195 | 251,931 |
90 Days or More Past Due and Accruing | ||
Non-Accrual | 353 | 189 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 359 | 484 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 177 | |
90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 171 | |
One-to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 529 | 472 |
Total Current | 183,331 | 189,291 |
Total | 183,860 | 189,763 |
90 Days or More Past Due and Accruing | ||
Non-Accrual | 353 | 189 |
One-to four-family residential [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 358 | 295 |
One-to four-family residential [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 177 | |
One-to four-family residential [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 171 | |
Home equity loans and lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 189 | |
Total Current | 12,453 | 11,396 |
Total | 12,453 | 11,585 |
90 Days or More Past Due and Accruing | ||
Non-Accrual | ||
Home equity loans and lines of credit [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 189 | |
Home equity loans and lines of credit [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Home equity loans and lines of credit [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Total Current | 56,175 | 34,686 |
Total | 56,175 | 34,686 |
90 Days or More Past Due and Accruing | ||
Non-Accrual | ||
Commercial [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Total Current | 10,655 | 15,853 |
Total | 10,655 | 15,853 |
90 Days or More Past Due and Accruing | ||
Non-Accrual | ||
Construction [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Construction [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Construction [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Consumer loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | |
Total Current | 51 | 44 |
Total | 52 | 44 |
90 Days or More Past Due and Accruing | ||
Non-Accrual | ||
Consumer loans [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | |
Consumer loans [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Consumer loans [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due |
Loans (Details Textual)
Loans (Details Textual) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($)Advance | Sep. 30, 2017USD ($)Advance | Dec. 31, 2017USD ($)Advance | |
Loans (Textual) | |||
Amount of consumer mortgage loan in foreclosure process | $ | $ 0 | ||
Number of consumer mortgage loans in foreclosure process | 0 | ||
Credit quality information requirement description | On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate and construction loans over $350,000. | ||
One- to Four-Family Residential Loan [Member] | |||
Loans (Textual) | |||
Number of Impaired loan | 1 | 1 | |
Impaired loan | $ | $ 98,000 | $ 100,000 | |
One-to-Four-Family Residential Real Estate Loans [Member] | |||
Loans (Textual) | |||
Troubled debt restructured, Number of loan | 1 | 1 | |
Troubled debt restructured loan | $ | $ 98,000 | $ 100,000 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | One-to-Four-Family Residential Real Estate Loans [Member] | Risk Rate 7 [Member] | |||
Loans (Textual) | |||
Total balance | $ | $ 98,000 | ||
Number of loans | 1 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | One-to-Four-Family Residential Real Estate Loans [Member] | Special Mention [Member] | |||
Loans (Textual) | |||
Total balance | $ | $ 99,000 | ||
Number of loans | 1 | ||
One-to four-family residential [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | 8 - substandard [Member] | |||
Loans (Textual) | |||
Number of loans | 0 | ||
One-to four-family residential [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Risk Rating 6 W - Pass Watch [Member] | |||
Loans (Textual) | |||
Total balance | $ | $ 455,000 | $ 472,000 | |
Number of loans | 3 | 3 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,808 | $ 4,017 |
Accumulated depreciation | (2,133) | (2,024) |
Premises and equipment, net | 2,675 | 1,993 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 393 | 393 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 3,305 | 2,070 |
Construction in process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 641 | |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 642 | 553 |
Data processing equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 468 | $ 360 |
Deposits (Details)
Deposits (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Deposit [Abstract] | |
2,019 | $ 76,412 |
2,020 | 41,223 |
2,021 | 11,088 |
2,022 | 2,048 |
2,023 | 782 |
Total | $ 131,553 |
Deposits (Details Textual)
Deposits (Details Textual) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Deposit [Abstract] | ||
FDIC insurance limit | $ 250,000 | $ 250,000 |
Aggregate amount of time deposit | 28,945,000 | 27,781,000 |
Deposits from related parties held by bank | $ 6,155,000 | $ 3,603,000 |
Borrowed Funds (Details)
Borrowed Funds (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Borroweds Funds [Abstract] | ||
2,019 | $ 10,000 | |
2,020 | 16,000 | |
2,021 | 10,000 | |
Total | $ 36,000 | $ 29,000 |
Borrowed Funds (Details Textual
Borrowed Funds (Details Textual) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)Advance | Dec. 31, 2017USD ($) | |
Borrowed Funds (Textual) | ||
FHLB Borrowings | $ 36,000 | $ 29,000 |
Co-Operative Central Bank [Member] | ||
Borrowed Funds (Textual) | ||
Maximum borrowing capacity | 5,000 | |
Federal Home Loan Bank of Boston [Member] | ||
Borrowed Funds (Textual) | ||
Federal Home Loan Bank, remaining maximum borrowing capacity | 69,700 | |
FHLB Borrowings | $ 36,000 | |
Number of FHLB advances | Advance | 8 | |
FHLB advances, maturity period | 3 years | |
Federal home loan bank, description | Borrowings from the FHLB are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one-to-four family properties. | |
Federal Home Loan Bank of Boston [Member] | Minimum [Member] | ||
Borrowed Funds (Textual) | ||
Interest rates on FHLB advances | 1.42% | |
Federal Home Loan Bank of Boston [Member] | Maximum [Member] | ||
Borrowed Funds (Textual) | ||
Interest rates on FHLB advances | 2.78% |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument liabilities with off-balance sheet credit risk | $ 32,617 | $ 22,332 |
Commitments to originate loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument liabilities with off-balance sheet credit risk | 9,337 | 2,401 |
Unused lines of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument liabilities with off-balance sheet credit risk | 20,510 | 17,611 |
Due to borrowers on unadvanced construction loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument liabilities with off-balance sheet credit risk | $ 2,770 | $ 2,320 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | $ 27,342 | $ 26,496 |
U.S. Government and federal agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 4,430 | 5,325 |
Debt securities issued by states of the United States and political subdivisions of the states [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 2,562 | 2,881 |
Corporate bonds and notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 14,259 | 11,294 |
Preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 1,954 | 3,013 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 960 | |
Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 1,210 | 1,448 |
Marketable equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 1,967 | 2,535 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 3,921 | 5,548 |
Level 1 [Member] | U.S. Government and federal agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 1 [Member] | Debt securities issued by states of the United States and political subdivisions of the states [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 1 [Member] | Corporate bonds and notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 1 [Member] | Preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 1,954 | 3,013 |
Level 1 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 1 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 1 [Member] | Marketable equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 1,967 | 2,535 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 23,421 | 20,948 |
Level 2 [Member] | U.S. Government and federal agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 4,430 | 5,325 |
Level 2 [Member] | Debt securities issued by states of the United States and political subdivisions of the states [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 2,562 | 2,881 |
Level 2 [Member] | Corporate bonds and notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 14,259 | 11,294 |
Level 2 [Member] | Preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 2 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 960 | |
Level 2 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | 1,210 | 1,448 |
Level 2 [Member] | Marketable equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 3 [Member] | U.S. Government and federal agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 3 [Member] | Debt securities issued by states of the United States and political subdivisions of the states [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 3 [Member] | Corporate bonds and notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 3 [Member] | Preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 3 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 3 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis | ||
Level 3 [Member] | Marketable equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value on a recurring basis |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Cash and cash equivalents | $ 18,979 | $ 17,603 |
Available-for-sale securities | 27,342 | 26,496 |
Federal Home Loan Bank stock | 2,285 | 1,800 |
Loans, net | 262,265 | 251,317 |
Co-operative Central Bank deposit | 891 | 886 |
Accrued interest receivable | 834 | 702 |
Financial liabilities: | ||
Deposits | 240,651 | 232,921 |
FHLB advances | 36,000 | 29,000 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 18,979 | 17,603 |
Available-for-sale securities | 27,342 | 26,496 |
Federal Home Loan Bank stock | 2,285 | 1,800 |
Loans, net | 262,265 | 251,317 |
Co-operative Central Bank deposit | 891 | 886 |
Accrued interest receivable | 834 | 702 |
Financial liabilities: | ||
Deposits | 240,651 | 232,921 |
FHLB advances | 36,000 | 29,000 |
Estimate of Fair Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 18,979 | 17,603 |
Available-for-sale securities | 27,342 | 26,496 |
Federal Home Loan Bank stock | 2,285 | 1,800 |
Loans, net | 264,112 | 252,792 |
Co-operative Central Bank deposit | 891 | 886 |
Accrued interest receivable | 834 | 702 |
Financial liabilities: | ||
Deposits | 240,784 | 232,899 |
FHLB advances | 34,931 | 28,660 |
Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 18,979 | 17,603 |
Available-for-sale securities | 3,921 | 5,548 |
Federal Home Loan Bank stock | 2,285 | 1,800 |
Loans, net | ||
Co-operative Central Bank deposit | 891 | 886 |
Accrued interest receivable | 834 | 702 |
Financial liabilities: | ||
Deposits | ||
FHLB advances | ||
Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Available-for-sale securities | 23,421 | 20,948 |
Federal Home Loan Bank stock | ||
Loans, net | ||
Co-operative Central Bank deposit | ||
Accrued interest receivable | ||
Financial liabilities: | ||
Deposits | 240,784 | 232,899 |
FHLB advances | 34,931 | 28,660 |
Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Available-for-sale securities | ||
Federal Home Loan Bank stock | ||
Loans, net | 264,112 | 252,792 |
Co-operative Central Bank deposit | ||
Accrued interest receivable | ||
Financial liabilities: | ||
Deposits | ||
FHLB advances |
Other Comprehensive Loss (Detai
Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net unrealized holding (loss)/gain on available-for-sale securities | $ (70) | $ 48 | $ (350) | $ 545 | |
Reclassification adjustment for net realized gains included in net income | [1] | (103) | (388) | (342) | (1,195) |
Other comprehensive loss before income tax effect | (173) | (340) | (692) | (650) | |
Income tax benefit | 44 | 133 | 175 | 285 | |
Other comprehensive loss, net of tax | $ (129) | $ (207) | $ (517) | $ (365) | |
[1] | Reclassification adjustments include net realized securities gains. Realized gains have been reclassified out of accumulated other comprehensive loss and affect certain captions in the consolidated statements of income as follows: pre-tax amount for the three and nine months ended September 30, 2018, is reflected as gain on sales and calls of available-for-sale securities, net of $103,000 and $342,000, respectively. The tax effect, included in income tax expense for the three and nine months ended September 30, 2018, was $27,000 and $88,000, respectively. Pre-tax amount for the three and nine months ended September 30, 2017 is reflected as a gain on sales and calls of available-for-sale securities, net of $388,000 and $1.2 million, respectively. The tax effect, included in income tax expense for the three and nine months ended September 30, 2017 was $136,000 and $420,000, respectively. The after tax amounts are included in net income. |
Other Comprehensive Loss (Det_2
Other Comprehensive Loss (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Other Comprehensive Loss (Textual) | |||||
Reclassification adjustment for net realized gains in net income | [1] | $ 103,000 | $ 388,000 | $ 342,000 | $ 1,195,000 |
Reclassified out of accumulated other comprehensive income (Loss) [Member] | |||||
Other Comprehensive Loss (Textual) | |||||
Tax benefit, included in income tax expense | $ 27,000 | $ 136,000 | $ 88,000 | $ 420,000 | |
[1] | Reclassification adjustments include net realized securities gains. Realized gains have been reclassified out of accumulated other comprehensive loss and affect certain captions in the consolidated statements of income as follows: pre-tax amount for the three and nine months ended September 30, 2018, is reflected as gain on sales and calls of available-for-sale securities, net of $103,000 and $342,000, respectively. The tax effect, included in income tax expense for the three and nine months ended September 30, 2018, was $27,000 and $88,000, respectively. Pre-tax amount for the three and nine months ended September 30, 2017 is reflected as a gain on sales and calls of available-for-sale securities, net of $388,000 and $1.2 million, respectively. The tax effect, included in income tax expense for the three and nine months ended September 30, 2017 was $136,000 and $420,000, respectively. The after tax amounts are included in net income. |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Regulatory Matters [Abstract] | ||
Total Capital (to Risk Weighted Assets), Actual Amount | $ 38,713 | $ 35,297 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 37,286 | 36,314 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 37,286 | 36,314 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 37,286 | $ 36,314 |
Total Capital (to Risk Weighted Assets), Actual Ratio | 17.27% | 19.80% |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 16.64% | 19.08% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 16.64% | 19.08% |
Tier 1 Capital (to Average Assets), Actual Ratio | 12.07% | 12.59% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 17,931 | $ 15,007 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | 13,448 | 11,255 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | 10,086 | 8,441 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Amount | $ 12,353 | $ 11,373 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purpose, Ratio | 4.50% | 4.50% |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purpose, Ratio | 4.00% | 4.00% |
Total Capital (to Risk Weighted Assets), Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 22,414 | $ 18,759 |
Tier 1 Capital (to Risk Weighted Assets), Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 17,931 | 15,007 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 14,569 | 12,193 |
Tier 1 Capital (to Average Assets), Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 15,441 | $ 14,216 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Regulatory Matters (Details Tex
Regulatory Matters (Details Textual) | Jan. 01, 2015 | Sep. 30, 2018 | Dec. 31, 2017 |
Regulatory Matters (Textual) | |||
Common equity tier 1 capital ratio | 4.50% | 4.50% | |
Minimum tier 1 capital to risk-weighted assets ratio | 6.00% | 6.00% | |
Tier 1 leverage ratio, minimum capital requirement ratio | 4.00% | 4.00% | |
Common equity tier 1 capital, minimum to be well capitalized ratio | 6.50% | 6.50% | |
Tier 1 capital to risk weighted assets, minimum to be well capitalized ratio | 8.00% | 8.00% | |
Total capital to risk weighted assets, minimum to be well capitalized ratio | 10.00% | 10.00% | |
Tier 1 leverage ratio, minimum to be well capitalized ratio | 5.00% | 5.00% | |
Minimum [Member] | |||
Regulatory Matters (Textual) | |||
Phase in period term | 2 years | ||
Maximum [Member] | |||
Regulatory Matters (Textual) | |||
Phase in period term | 4 years | ||
Capital Regulations [Member] | |||
Regulatory Matters (Textual) | |||
Common equity tier 1 capital ratio | 4.50% | ||
Minimum tier 1 capital to risk-weighted assets ratio | 6.00% | ||
Total capital to risk weighted assets, minimum capital requirement ratio | 8.00% | ||
Tier 1 leverage ratio, minimum capital requirement ratio | 4.00% | ||
Common equity tier 1 capital, minimum to be well capitalized ratio | 6.50% | ||
Tier 1 capital to risk weighted assets, minimum to be well capitalized ratio | 8.00% | ||
Total capital to risk weighted assets, minimum to be well capitalized ratio | 10.00% | ||
Tier 1 leverage ratio, minimum to be well capitalized ratio | 5.00% | ||
Regulatory requirements capital ratios, description | The regulations establish a capital conservation buffer above the required capital ratios that began phasing in January 1, 2016 at 0.625% of risk-weighted assets and increases each year by 0.625% until it is fully phased in at 2.5% effective January 1, 2019. |
Common Stock Repurchases (Detai
Common Stock Repurchases (Details) | 3 Months Ended |
Sep. 30, 2018$ / sharesshares | |
July 1, 2018 to July 31, 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Number of Shares Purchased | 5,000 |
Average Price Paid Per Share | $ / shares | $ 19.50 |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 5,000 |
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | 126,237 |
August 1, 2018 to August 31, 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Number of Shares Purchased | |
Average Price Paid Per Share | $ / shares | |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | |
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | 126,237 |
September 1, 2018 to September 30, 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Number of Shares Purchased | 2,200 |
Average Price Paid Per Share | $ / shares | $ 19.75 |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 2,200 |
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | 124,037 |
Common Stock Repurchases (Det_2
Common Stock Repurchases (Details Textual) - $ / shares | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 14, 2017 | |
Common Stock Repurchases (Textual) | |||
Number of shares authorized to be repurchased | 283,000 | ||
Additional number of shares authorized for repurchase | 130,037 | ||
Additional number of shares authorized for repurchase, percentage | 5.00% | ||
Remaining number of shares authorized to be repurchased | 124,037 | 11,200 | |
Repurchased shares of common stock | 1,219 | 1,336 | |
Common Stock [Member] | |||
Common Stock Repurchases (Textual) | |||
Average cost of stocks repurchased | $ 19.42 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | May 12, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Stock Based Compensation (Textual) | |||||
Stock options granted, exercise price | $ 15.13 | ||||
Employee Stock Option [Member] | |||||
Stock Based Compensation (Textual) | |||||
Exercised, shares | 9,100 | 9,100 | |||
2015 Equity Incentive Plan [Member] | |||||
Stock Based Compensation (Textual) | |||||
Number of shares authorized under plan | 396,140 | 396,140 | |||
2015 Equity Incentive Plan [Member] | Employee Stock Option [Member] | |||||
Stock Based Compensation (Textual) | |||||
Number of shares authorized under plan | 282,957 | 282,957 | |||
Award vesting period | 5 years | ||||
Minimum vesting period from date of grant | 1 year | ||||
Total expense recognized | $ 41,000 | $ 42,000 | $ 124,000 | $ 124,000 | |
Recognized tax benefit | 3,000 | 4,000 | 10,000 | $ 13,000 | |
Number of shares granted | 224,200 | ||||
Stock options granted, exercise price | $ 15.13 | ||||
Expected volatility | 20.24% | ||||
Expected option life | 6 years 6 months | ||||
Period of U.S. Treasury rate | 7 years | ||||
Annual risk free interest rate | 1.54% | ||||
Estimated fair value of award determined by Black-Scholes option pricing model | $ 3.71 | ||||
Expected forfeiture rate | 0.00% | ||||
Aggregate intrinsic value of outstanding stock options | $ 1,000,000 | $ 1,000,000 | |||
Forfeitures, shares | |||||
Exercised, shares | |||||
Unrecognized compensation costs, weighted-average recognition period | 2 years 7 months 6 days | ||||
Number of shares outstanding | 215,100 | 215,100 | |||
Number of shares exercisable | 80,580 | 80,580 | |||
Weighted average remaining contractual terms, Exercisable | 7 years 7 months 6 days | ||||
Unrecognized compensation costs | $ 476,000 | $ 476,000 | |||
2015 Equity Incentive Plan [Member] | Restricted stock awards and restricted stock units [Member] | |||||
Stock Based Compensation (Textual) | |||||
Number of shares authorized under plan | 113,183 | 113,183 | |||
2015 Equity Incentive Plan [Member] | Restricted stock [Member] | |||||
Stock Based Compensation (Textual) | |||||
Number of shares awarded | 44,300 | ||||
Restricted stock award expense grant date fair value | $ 15.13 | ||||
Award vesting period | 5 years | ||||
Minimum vesting period from date of grant | 1 year | ||||
Total expense recognized | $ 34,000 | 34,000 | $ 101,000 | $ 101,000 | |
Recognized tax benefit | 9,000 | $ 12,000 | $ 26,000 | $ 35,000 | |
Shares, forfeitures | |||||
Unrecognized share based compensation expense | $ 350,000 | $ 350,000 | |||
Unrecognized compensation costs, weighted-average recognition period | 2 years 7 months 6 days | ||||
Number of unvested restricted stock awarded | 26,580 | 26,580 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] | Oct. 31, 2018$ / sharesshares |
Subsequent Event (Textual) | |
Total shares of common stock | shares | 9,000 |
Average cost of stocks repurchased | $ / shares | $ 19.75 |