Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 08, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Provident Bancorp, Inc. | ||
Entity Central Index Key | 1,635,840 | ||
Trading Symbol | pvbc | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 9,652,448 | ||
Entity Public Float | $ 59 | ||
Document Type | 10-K/A | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 7,939 | $ 7,302 |
Interest-bearing demand deposits with other banks | 2,637 | 12,865 |
Money market mutual funds | 129 | 297 |
Cash and cash equivalents | 10,705 | 20,464 |
Investments in available-for-sale securities (at fair value) | 117,867 | 80,984 |
Investments in held-to-maturity securities (fair value of $46,474 as of December 31, 2015 | 44,623 | |
Federal Home Loan Bank stock, at cost | 2,787 | 3,310 |
Loans, net | 624,425 | 554,929 |
Bank owned life insurance | 19,395 | 18,793 |
Premises and equipment, net | 11,587 | 11,606 |
Accrued interest receivable | 2,320 | 2,251 |
Deferred tax asset, net | 4,913 | 5,056 |
Other assets | 1,544 | 1,381 |
Total assets | 795,543 | 743,397 |
Deposits: | ||
Noninterest-bearing | 158,075 | 153,093 |
Interest-bearing | 469,907 | 424,142 |
Total deposits | 627,982 | 577,235 |
Federal Home Loan Bank advances | 49,858 | 57,423 |
Other liabilities | 8,554 | 7,333 |
Total liabilities | 686,394 | 641,991 |
Shareholders' equity | ||
Preferred stock; authorized 50,000 shares: no shares issued and outstanding | ||
Common stock, no par value: 30,000,000 shares authorized; 9,652,448 and 9,498,722 shares issued and outstanding at December 31, 2016 and 2015, respectively | ||
Additional paid-in capital | 43,393 | 43,159 |
Retained earnings | 66,229 | 59,890 |
Accumulated other comprehensive income | 2,622 | 1,690 |
Unearned compensation - ESOP | (3,095) | (3,333) |
Total shareholders' equity | 109,149 | 101,406 |
Total liabilities and shareholders' equity | $ 795,543 | $ 743,397 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Investments in held-to-maturity securities, fair value (in dollars) | $ 46,474 | |
Preferred stock shares authorized | 50,000 | 50,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 9,652,448 | 9,498,722 |
Common stock, shares outstanding | 9,652,448 | 9,498,722 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 25,549 | $ 22,124 |
Interest and dividends on securities | 3,312 | 3,290 |
Interest on interest-bearing deposits | 33 | 38 |
Total interest and dividend income | 28,894 | 25,452 |
Interest expense: | ||
Interest on deposits | 2,163 | 1,630 |
Interest on Federal Home Loan Bank advances | 622 | 544 |
Total interest expense | 2,785 | 2,174 |
Net interest and dividend income | 26,109 | 23,278 |
Provision for loan losses | 703 | 805 |
Net interest and dividend income after provision for loan losses | 25,406 | 22,473 |
Noninterest income: | ||
Customer service fees on deposit accounts | 1,274 | 1,222 |
Service charges and fees - other | 1,777 | 1,754 |
Gain on sales of securities, net | 690 | 317 |
Other income | 694 | 513 |
Total noninterest income | 4,435 | 3,806 |
Noninterest expense: | ||
Salaries and employee benefits | 12,857 | 11,797 |
Occupancy expense | 1,548 | 1,535 |
Equipment expense | 631 | 528 |
FDIC assessment | 323 | 378 |
Data processing | 662 | 568 |
Marketing expense | 249 | 127 |
Professional fees | 1,088 | 942 |
Charitable Foundation expense | 2,150 | |
Other | 3,119 | 3,068 |
Total noninterest expense | 20,477 | 21,093 |
Income before income tax expense | 9,364 | 5,186 |
Income tax expense | 3,025 | 1,363 |
Net income | 6,339 | 3,823 |
Net income attributable to common shareholders | $ 6,339 | $ 3,656 |
Income per share: | ||
Basic (in dollars per share) | $ 0.69 | |
Diluted (in dollars per share) | $ 0.69 | |
Weighted Average Shares: | ||
Basic (in shares) | 9,176,384 | |
Diluted (in shares) | 9,176,384 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 6,339 | $ 3,823 |
Other comprehensive income: | ||
Change in net unrealized holding (losses) | (80) | (863) |
Reclassification adjustment for realized gains in net income | (690) | (317) |
Net change in unrealized (loss) | (770) | (1,180) |
Income tax effect | 281 | 458 |
Net of tax amount | (489) | (722) |
Change in net unrealized holding gains on securities transferred from held-to-maturity to available-for-sale | 2,239 | |
Income tax effect | (818) | |
Net of tax amount | 1,421 | |
Other comprehensive income (loss) | 932 | (722) |
Total comprehensive income | $ 7,271 | $ 3,101 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Shares of Common Stock | Preferred Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Unearned Compensation ESOP | Total |
Balance at Dec. 31, 2014 | $ 17,145 | $ 275 | $ 55,959 | $ 2,412 | $ 75,791 | ||
Balance (in shares) at Dec. 31, 2014 | 275,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 3,823 | 3,823 | |||||
Net change in other comprehensive income | (722) | (722) | |||||
Redemption of SBLF preferred stock | (17,145) | (17,145) | |||||
Preferred stock dividends | (167) | $ (167) | |||||
Issuance of 5,034,323 shares to the mutual holding company (in shares) | 5,034,323 | 5,034,323 | |||||
Transfer due to stock offering | (275) | 275 | |||||
Transfer due to stock offering (in shares) | (275,000) | ||||||
Issuance of 4,274,425 shares in the initial public offering, net of expenses of $1,547,000 | 41,197 | $ 41,197 | |||||
Issuance of 4,274,425 shares in the initial public offering, net of expenses of $1,547,000 (in shares) | 4,274,425 | 4,274,425 | |||||
Issuance and contribution of 189,974 shares to the Provident Community Charitable Organization | 1,900 | $ 1,900 | |||||
Issuance and contribution of 189,974 shares to the Provident Community Charitable Organization (in shares) | 189,974 | 189,974 | |||||
Purchase of 357,152 shares of common stock by the ESOP | (3,572) | $ (3,572) | |||||
ESOP shares earned | 62 | 239 | 301 | ||||
Balance at Dec. 31, 2015 | 43,159 | 59,890 | 1,690 | (3,333) | 101,406 | ||
Balance (in shares) at Dec. 31, 2015 | 9,498,722 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 6,339 | 6,339 | |||||
Net change in other comprehensive income | 932 | 932 | |||||
Stock-based compensation expense | 113 | 113 | |||||
Restricted stock award grants | 153,726 | ||||||
ESOP shares earned | 121 | 238 | 359 | ||||
Balance at Dec. 31, 2016 | $ 43,393 | $ 66,229 | $ 2,622 | $ (3,095) | $ 109,149 | ||
Balance (in shares) at Dec. 31, 2016 | 9,652,448 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) - USD ($) | Jul. 15, 2015 | Dec. 31, 2015 |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of shares to the mutual holding company | 5,034,323 | |
Number of shares issued | 4,274,425 | 4,274,425 |
Issuance of shares in the initial public offering, expenses | $ 1,500,000 | $ 1,547,000 |
Issuance and contribution of shares to the Provident Community Charitable Organization | 189,974 | |
Purchase of shares of common stock by the ESOP | 357,152 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 6,339 | $ 3,823 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of securities premiums, net of accretion | 849 | 860 |
ESOP expense | 359 | 301 |
Contribution of stock to charitable foundation | 1,900 | |
Gain on sales, calls and donations of securities, net | (690) | (317) |
Change in deferred loan fees, net | 50 | (6) |
Provision for loan losses | 703 | 805 |
Depreciation and amortization | 832 | 713 |
Loss (gain) on disposal of premise and equipment | 60 | (2) |
Increase in accrued interest receivable | (69) | (195) |
(Increase) decrease in taxes receivable | (53) | 146 |
Deferred tax benefit | (394) | (966) |
Share-based compensation expense | 113 | |
Increase in cash surrender value of life insurance | (602) | (452) |
Increase in other assets | (110) | (230) |
Increase in other liabilities | 1,221 | 439 |
Net cash provided by operating activities | 8,608 | 6,819 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (9,835) | (17,841) |
Proceeds from sales of available-for-sale securities | 3,286 | 739 |
Proceeds from pay downs, maturities and calls of available-for-sale securities | 15,379 | 10,913 |
Proceeds from pay downs, maturities and calls of held-to-maturity securities | 220 | 450 |
Redemption of Federal Home Loan Bank Stock | 523 | 332 |
Loan originations and principal collections, net | (55,221) | (61,582) |
Recoveries of loans previously charged off | 26 | 37 |
Loans purchased | (15,054) | |
Additions to premises and equipment | (873) | (1,819) |
Proceeds from sale of premise and equipment | 5 | |
Purchase of bank owned life insurance | (6,197) | |
Net cash used in investing activities | (61,549) | (74,963) |
Cash flows from financing activities: | ||
Net increase in demand deposits, NOW and savings accounts | 84,063 | 40,512 |
Net (decrease) increase in time deposits | (33,316) | 39 |
Proceeds from sale of common stock, net | 41,197 | |
Common stock purchased by ESOP | (3,572) | |
Proceeds from advances from the Federal Home Loan Bank | 5,388 | |
Net change in Federal Home Loan Bank short-term advances | (12,953) | 18,186 |
Redemption of SBLF preferred stock | (17,145) | |
Preferred stock dividends | (167) | |
Net cash provided by financing activities | 43,182 | 79,050 |
Net (decrease) increase in cash and cash equivalents | (9,759) | 10,906 |
Cash and cash equivalents at beginning of year | 20,464 | 9,558 |
Cash and cash equivalents at end of year | 10,705 | 20,464 |
Supplemental disclosures: | ||
Interest paid | 2,777 | 2,162 |
Income taxes paid | 3,078 | $ 2,183 |
Held-to-maturity securities transferred to available-for-sale | $ 44,240 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | N OTE ATURE OF PERATIONS Provident Bancorp, Inc. (the “Company”) is a Massachusetts-chartered corporation organized for the purpose of owning all of the outstanding capital stock of The Provident Bank (the “Bank”). On July 15, 2015, the Company closed its offering and issued 4,274,425 shares of common stock to the public at $10.00 per share, including 357,152 shares purchased by The Provident Bank Employee Stock Ownership Plan. In addition, the Company issued 5,034,323 shares to Provident Bancorp, the Company’s mutual holding company (the “MHC”), and 189,974 shares to The Provident Community Charitable Organization, Inc., a charitable foundation that was formed in connection with the stock offering and is dedicated to supporting charitable organizations operating in the Bank’s local community. Expenses incurred related to the offering were $1.5 million, and have been recorded against offering proceeds. Upon the completion of the stock offering, a special “liquidation account” was established for the benefit of certain depositors of the Bank in an amount equal to the percentage ownership interest in the equity of the Company to be held by persons other than the MHC as of the date of the latest balance sheet contained in the prospectus. Following the completion of the offering, the Company is not permitted to pay dividends on its capital stock if the Company’s shareholders’ equity would be reduced below the amount of the liquidation account. The liquidation account is reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account. The Company is headquartered in Amesbury, Massachusetts. The Bank operates its business from eight banking offices located in Amesbury and Newburyport, Massachusetts and Portsmouth, Exeter, Hampton, Bedford, and Seabrook, New Hampshire. The Bank provides a variety of financial services to individuals and small businesses. Its primary deposit products are checking, savings and term certificate accounts and its primary lending products are commercial mortgages and commercial loans. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | N OTE CCOUNTING OLICIES The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and predominant practices within the banking industry. The consolidated financial statements were prepared using the accrual basis of accounting. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the 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, stock-based compensation expense and deferred income taxes. Basis of Presentation The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation was established to buy, sell, and hold investments for its own account, and 5 Market Street Security Corporation, an inactive corporation, was established to buy, sell, and hold investments for its own account. All material intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks, interest-bearing demand deposits with other banks, money market mutual funds and federal funds sold. Investment Securities Investments in debt securities are adjusted for amortization of premiums and accretion of discounts so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis and are recorded as of the trade date. The Company classifies debt and equity securities into one of three categories: held-to-maturity, available-for-sale or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities must be classified as available-for-sale. • Held-to-maturity securities are measured at amortized cost in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings or as a separate component of shareholders’ equity. • Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, but are reported as a net amount (less expected tax) as a separate component of shareholders’ equity until realized. • Trading securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings. The Company evaluates debt and equity securities within the Company’s available for sale and held to maturity portfolios for other-than-temporary impairment (“OTTI”), at least quarterly. If the fair value of a debt security is below the amortized cost basis of the security, OTTI is required to be recognized if any of the following are met: (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes. In evaluating its marketable equity securities portfolios for OTTI, the Company considers its intent and ability to hold an equity security to recovery of its cost basis in addition to various other factors, including the length of time and the extent to which the fair value has been less than cost and the financial condition and near term prospects of the issuer. Any OTTI on marketable equity securities is recognized immediately through earnings. Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank of Boston (the “FHLB”), the Company 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. FHLB stock is a non-marketable equity security that is carried at cost and evaluated for impairment when deemed necessary. Loans Loan receivables 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 unadvanced 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. Interest income is accrued on the unpaid principal balance. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is recognized as an adjustment of the related loan yield using the interest method. The Company is amortizing these amounts over the contractual life of the related loans. Residential real estate loans are generally placed on non-accrual status when reaching 90 days past due or in process of collection. Past due status is based on the contractual terms of the loan. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on non-accrual 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 and leases which are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on non-accrual 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. Interest income received on non-accrual loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. 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 is 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 uncollectibality 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 size and composition 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. The allowance for loan losses is allocated to loan types using both a formula-based approach (general component) and an analysis of certain individual loans for impairment (allocated component). A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures. The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction and land development, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. These historical loss factors are adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate: Commercial: Residential real estate: Construction and land development: Consumer: The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The Company from time to time, may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modified loan is considered a troubled debt restructuring (“TDR”). All TDRs are initially classified as impaired. An unallocated component can be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Bank-Owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the 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. Premises and Equipment Premises 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. Generally, depreciation on the buildings and equipment is calculated principally on the straight line method, and depreciation and amortization expense is charged against operations over the estimated useful lives of the related assets. Foreclosed and Repossessed Assets Assets acquired through, or in lieu of, loan foreclosure or repossession are held for sale and are initially recorded at the lower of the investment in the loan or fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. Subsequently, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations, changes in the valuation allowance, any direct write-downs and gains or losses on sales are included in other real estate owned expense. Advertising The Company directly expenses costs associated with advertising as they are incurred. Earnings per Common Share Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. At December 31, 2016, there are no common stock equivalents. Employee Stock Ownership Plan Compensation expense for The Provident Bank Employee Stock Ownership Plan (the “ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity on the consolidated balance sheet. The difference between the average fair market value and the cost of the shares by the ESOP is recorded as an adjustment to additional paid-in-capital. Stock-based Compensation Plans The Company measures and recognizes compensation cost relating to stock-based payment transactions based on the grant-date fair value of the equity instruments issued. Stock-based compensation is recognized over the period the employee is required to provide services for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. The fair value of restricted stock is recorded based on the grant date value of the equity instrument issued. 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. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. The Company examines its significant income tax positions annually to determine whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. Fair Values of Financial Instruments GAAP requires that the Company disclose estimated fair values 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: Investments (including government mortgage-backed securities): Loans receivable: Accrued interest receivable: Deposit liabilities: Federal Home Loan Bank advances: Off-balance sheet instruments: Recent Accounting Pronouncements ASU (Accounting Standards Update) No. 2014-09 — Revenue from Contracts with Customers (Topic 606). ASU No. 2014-14, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40) — “Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)”. ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-02, Leases (Topic 842). ASU 2016-09, Compensation Stock — Compensation (Topic 718): “Improvements to Employee Share Based Payment Accounting.” ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” ASU No. 2016-15, Statement of Cash Flows (Topic 230): “Classification of Certain Cash Receipts and Cash Payments.” ASU No. 2016-18, Statement of Cash Flows (Topic 230): “Restricted Cash” |
INVESTMENTS IN SECURITIES
INVESTMENTS IN SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN SECURITIES | N OTE NVESTMENTS IN ECURITIES In May 2016, the Company reclassified its $44.2 million held-to-maturity investment portfolio to available-for-sale. Due to its strong outlook for loan growth and falling interest rates, the Company decided to proceed with the reclassification to provide liquidity. The reclassification increased total shareholders’ equity by $1.3 million associated with the recording of the net security gains on the portfolio, net of tax effect, to accumulated other comprehensive income. In accordance with regulatory and accounting requirements, the Company is prohibited from classifying security purchases as held-to-maturity for a period of two years. The following summarizes the amortized cost of investment securities classified as available-for-sale and their approximate fair values at December 31, 2016 and 2015: (In thousands) Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2016 State and municipal $ 49,367 $ 1,281 $ 68 $ 50,580 Corporate debt 1,000 31 — 1,031 Asset-backed securities 8,747 — 69 8,678 Government mortgage-backed securities 41,818 435 339 41,914 Trust preferred securities 1,368 — 400 968 Marketable equity securities 11,492 3,551 218 14,825 113,792 5,298 1,094 117,996 Money market mutual funds included in cash and cash equivalents (129 ) — — (129 ) Total available-for-sale securities $ 113,663 $ 5,298 $ 1,094 $ 117,867 December 31, 2015 U.S. Government and federal agency $ 1,996 $ 37 $ — $ 2,033 State and municipal 3,373 309 — 3,682 Corporate debt 1,000 71 — 1,071 Asset-backed securities 9,656 9 41 9,624 Government mortgage-backed securities 52,515 622 325 52,812 Trust preferred securities 1,368 55 307 1,116 Marketable equity securities 8,638 2,653 348 10,943 78,546 3,756 1,021 81,281 Money market mutual funds included in cash and cash equivalents (297 ) — — (297 ) Total available-for-sale securities $ 78,249 $ 3,756 $ 1,021 $ 80,984 The following summarizes the amortized cost of investment securities classified as held-to-maturity and their approximate fair values at December 31, 2015: (In thousands) Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 State and municipal $ 44,623 $ 1,905 $ 54 $ 46,474 The scheduled maturities of debt securities were as follows at December 31, 2016: Available- for-Sale (In thousands) Fair Value Due within one year $ 1,813 Due after one year through five years 2,326 Due after five years through ten years 7,810 Due after ten years 40,630 Government mortgage-backed securities 41,914 Asset-backed securities 8,678 $ 103,171 During the years ended December 31, 2016 and 2015, gross realized gains on sales, calls and donated securities were $693,000 and $328,000, respectively, and gross losses realized were $3,000 and $11,000, respectively. There were no securities of issuers whose aggregate carrying amount exceeded 10% of equity at December 31, 2016. Securities with carrying amounts of $60.6 million and $61.7 million were pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank at December 31, 2016 and 2015, respectively. 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 temporarily impaired, are as follows at December 31, 2016 and 2015: Less than 12 Months 12 Months or Longer Total (In thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2016 Temporarily impaired securities: State and municipal $ 6,413 $ 63 $ 160 $ 5 $ 6,573 $ 68 Asset-backed securities 8,104 60 574 9 8,678 69 Government mortgage-backed securities 20,868 247 2,770 92 23,638 339 Trust preferred securities 26 18 942 382 968 400 Marketable equity securities 1,942 104 768 114 2,710 218 Total temporarily impaired securities $ 37,353 $ 492 $ 5,214 $ 602 $ 42,567 $ 1,094 December 31, 2015 Temporarily impaired securities: State and municipal $ 3,195 $ 28 $ 729 $ 26 $ 3,924 $ 54 Asset-backed securities 5,062 7 2,005 34 7,067 41 Government mortgage-backed securities 21,108 88 9,156 237 30,264 325 Trust preferred securities — — 1,017 307 1,017 307 Marketable equity securities 1,591 166 529 182 2,120 348 Total temporarily impaired securities $ 30,956 $ 289 $ 13,436 $ 786 $ 44,392 $ 1,075 Government mortgage-backed securities, state and municipal securities and asset-backed securities: Marketable equity securities: Trust preferred securities: Activity related to the credit component recognized in earnings on debt securities held by the Company for which a portion of other-than-temporary impairment was recognized in other comprehensive income for the years ended December 31, 2016 and 2015 is as follows: (In thousands) Trust preferred securities: Balance, December 31, 2014 $ 688 Additions for the credit component on debt securities in which an other-than-temporary impairment was previously recognized — Balance, December 31, 2015 688 Additions for the credit component on debt securities in which an other-than-temporary impairment was previously recognized — Balance, December 31, 2016 $ 688 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
LOANS | N OTE OANS Loans consisted of the following at December 31, 2016 and 2015: (In thousands) 2016 2015 Commercial real estate $ 336,102 $ 285,356 Commercial 166,157 112,073 Residential real estate 76,850 92,392 Construction and land development 48,161 71,535 Consumer 6,172 1,855 633,442 563,211 Allowance for loan losses (8,590 ) (7,905 ) Deferred loan fees, net (427 ) (377 ) Net loans $ 624,425 $ 554,929 The following tables set forth information regarding the allowance for loans and impaired loans by portfolio segment as of and for the years ended December 31, 2016 and 2015: (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total December 31, 2016 Allowance for loan losses: Beginning balance $ 3,827 $ 2,138 $ 412 $ 1,236 $ 119 $ 173 $ 7,905 Charge-offs — — — — (44 ) — (44 ) Recoveries — 1 12 — 13 — 26 Provision (benefit) 676 374 (96 ) (354 ) 191 (88 ) 703 Ending balance $ 4,503 $ 2,513 $ 328 $ 882 $ 279 $ 85 $ 8,590 Ending balance: Individually evaluated for impairment $ — $ 46 $ — $ — $ — $ — $ 46 Ending balance: Collectively evaluated for impairment 4,503 2,467 328 882 279 85 8,544 Total allowance for loan losses ending balance $ 4,503 $ 2,513 $ 328 $ 882 $ 279 $ 85 $ 8,590 Loans: Ending balance: Individually evaluated for impairment $ 1,956 $ 1,660 $ 422 $ — $ — $ — $ 4,038 Ending balance: Collectively evaluated for impairment 334,146 164,497 76,428 48,161 6,172 — 629,404 Total loans ending balance $ 336,102 $ 166,157 $ 76,850 $ 48,161 $ 6,172 $ — $ 633,442 (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total December 31, 2015 Allowance for loan losses: Beginning balance $ 3,500 $ 1,751 $ 560 $ 872 $ 184 $ 357 $ 7,224 Charge-offs — (96 ) — — (65 ) — (161 ) Recoveries — 20 6 — 11 — 37 Provision (benefit) 327 463 (154 ) 364 (11 ) (184 ) 805 Ending balance $ 3,827 $ 2,138 $ 412 $ 1,236 $ 119 $ 173 $ 7,905 Ending balance: Individually evaluated for impairment $ — $ 488 $ — $ — $ — $ — $ 488 Ending balance: Collectively evaluated for impairment 3,827 1,650 412 1,236 119 173 7,417 Total allowance for loan losses ending balance $ 3,827 $ 2,138 $ 412 $ 1,236 $ 119 $ 173 $ 7,905 Loans: Ending balance: Individually evaluated for impairment $ 3,272 $ 1,755 $ 437 $ — $ — $ — $ 5,464 Ending balance: Collectively evaluated for impairment 282,084 110,318 91,955 71,535 1,855 — 557,747 Total loans ending balance $ 285,356 $ 112,073 $ 92,392 $ 71,535 $ 1,855 $ — $ 563,211 At December 31, 2016 and 2015, loans with an aggregate principal balance of $250.7 million and $245.8 million, respectively, were pledged to secure possible borrowings from the Federal Reserve Bank. Certain directors and executive officers of the Company and companies in which they have significant ownership interests were customers of the Bank during 2016. Total loans to such persons and their companies amounted to $7.5 million and $8.5 million at December 31, 2016 and 2015, respectively. During the years ended December 31, 2016 and 2015, $271,000 and $6,000 of advances and principal payments of $1.3 million and $1.2 million were made, respectively. The following tables set forth information regarding non-accrual loans and past-due loans by portfolio segment at December 31, 2016 and 2015: (In thousands) 30 – 59 Days 60 – 89 Days 90 Days or More Past Due Total Past Due Total Current Total Loans 90 Days or More Past Due and Accruing Nonaccrual Loans December 31, 2016 Commercial real estate $ — $ — $ 346 $ 346 $ 335,756 $ 336,102 $ — $ 346 Commercial 29 — — 29 166,128 166,157 — 933 Residential real estate — — — — 76,850 76,850 — 303 Construction and land development — — — — 48,161 48,161 — — Consumer — — — — 6,172 6,172 — — Total $ 29 $ — $ 346 $ 375 $ 633,067 $ 633,442 $ — $ 1,582 December 31, 2015 Commercial real estate $ — $ — $ — $ — $ 285,356 $ 285,356 $ — $ 106 Commercial — — — — 112,073 112,073 — 1,147 Residential real estate 130 173 365 668 91,724 92,392 — 1,031 Construction and land development — — — — 71,535 71,535 — — Consumer 1 1 — 2 1,853 1,855 — — Total $ 131 $ 174 $ 365 $ 670 $ 562,541 $ 563,211 $ — $ 2,284 Information about the Company’s impaired loans by portfolio segment was as follows at December 31, 2016 and 2015: (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2016 With no related allowance recorded: Commercial real estate $ 1,956 $ 1,956 $ — $ 2,744 $ 188 Commercial 799 799 — 794 42 Residential real estate 422 422 — 429 20 Construction and land development — — — — — Consumer — — — — — Total impaired with no related allowance $ 3,177 $ 3,177 $ — $ 3,967 $ 250 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial 861 861 46 886 — Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Total impaired with an allowance recorded $ 861 $ 861 $ 46 $ 886 $ — Total Commercial real estate $ 1,956 $ 1,956 $ — $ 2,744 $ 188 Commercial 1,660 1,660 46 1,680 42 Residential real estate 422 422 — 429 20 Construction and land development — — — — — Consumer — — — — — Total impaired loans $ 4,038 $ 4,038 $ 46 $ 4,853 $ 250 December 31, 2015 With no related allowance recorded: Commercial real estate $ 3,272 $ 3,272 $ — $ 3,788 $ 149 Commercial 661 661 — 611 20 Residential real estate 437 437 — 323 17 Construction and land development — — — — — Consumer — — — — — Total impaired with no related allowance $ 4,370 $ 4,370 $ — $ 4,722 $ 186 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial 1,094 1,094 488 901 2 Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Total impaired with an allowance recorded $ 1,094 $ 1,094 $ 488 $ 901 $ 2 Total Commercial real estate $ 3,272 $ 3,272 $ — $ 3,788 $ 149 Commercial 1,755 1,755 488 1,512 22 Residential real estate 437 437 — 323 17 Construction and land development — — — — — Consumer — — — — — Total impaired loans $ 5,464 $ 5,464 $ 488 $ 5,623 $ 188 The following summarizes troubled debt restructurings entered into during the years ended December 31, 2016 and 2015: (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Year-Ended December 31, 2016 Troubled debt restructurings: Commercial 1 $ 58 $ 58 1 $ 58 $ 58 Year-Ended December 31, 2015 Troubled debt restructurings: Commercial real estate 2 $ 464 $ 464 Commercial 8 1,578 1,578 Residential real estate 2 226 226 12 $ 2,268 $ 2,268 None of the loans modified as troubled debt restructuring during 2016 and 2015 defaulted during the period after modification. In 2016, we approved one troubled debt restructure totaling $58 thousand, with no specific reserve required based on an analysis of the borrower’s repayment ability and/or collateral coverage. This commercial loan was placed on an extended 13-month interest only period with re-amortization to follow based on a five-year term. In 2015, we approved nine troubled debt restructures with no specific reserves required based on an analysis of the borrowers’ repayment ability and/or collateral coverage. Of these, two commercial loans to the same borrower were placed on a 13-month interest only period with re-amortization to follow based on the remaining term. One commercial loan and one owner-occupied commercial real estate mortgage to the same borrower were re-amortized over an extended term and maturity to ease up the borrowers’ cash flow. One investment commercial real estate loan was placed on interest only payments to allow the borrower time to market the property, with principal and interest payments to follow. Two small commercial term loans were re-amortized under forbearance agreements with no reserve required due to 100% SBA guarantees. Finally, two residential real estate mortgages were modified to interest only payments and later were re-amortized over an extended term and maturity. We approved three troubled debt restructures that required a specific reserve consisting of a commercial loan term that was modified to defer principal payments. The Company classified this loan as doubtful and maintains a 50% reserve on the balance of the loan. Two commercial term loans were modified under forbearance agreements and a 15% reserve was applied, consisting of the non-SBA guaranteed portion of the loan balances. At December 31, 2016 and 2015, there were no commitments to lend additional funds to borrowers whose loans were modified in troubled debt restructurings. Credit Quality Information The Company utilizes a seven grade internal loan rating system for commercial real estate, construction and land development, and commercial loans as follows: Loans rated 1 – 3: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 4: Loans rated 5: Loans rated 6: Loans rated 7: On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and land development, 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 rates such loans as pass. Subsequent risk rating downgrades are based upon the borrower’s payment activity. All other residential and consumer loans are not formally rated. The following tables present the Company’s loans by risk rating and portfolio segment at December 31, 2016 and 2015: (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Total December 31, 2016 Grade: Pass $ 319,712 $ 157,306 $ — $ 48,161 $ — $ 525,179 Special mention 4,471 1,668 — — — 6,139 Substandard 11,919 7,183 729 — — 19,831 Not formally rated — — 76,121 — 6,172 82,293 Total $ 336,102 $ 166,157 $ 76,850 $ 48,161 $ 6,172 $ 633,442 December 31, 2015 Grade: Pass $ 265,325 $ 106,677 $ — $ 71,535 $ — $ 443,537 Special mention 15,700 1,403 — — — 17,103 Substandard 4,331 3,083 1,329 — — 8,743 Doubtful — 910 — — — 910 Not formally rated — — 91,063 — 1,855 92,918 Total $ 285,356 $ 112,073 $ 92,392 $ 71,535 $ 1,855 $ 563,211 The Bank has sold mortgage loans with servicing rights retained. The fair value of those servicing rights under GAAP is not material and has not been recognized in the 2016 and 2015 consolidated financial statements. Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $11.2 million and $10.4 million at December 31, 2016 and 2015, respectively. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | N OTE REMISES AND QUIPMENT The following is a summary of premises and equipment at December 31, 2016 and 2015: (In thousands) 2016 2015 Land $ 2,424 $ 2,424 Buildings and leasehold improvements 9,241 9,191 Furniture and equipment 4,499 4,190 Leasehold improvements 4,234 2,911 Construction in progress — 1,251 20,398 19,967 Accumulated depreciation and amortization (8,811 ) (8,361 ) Premises and equipment, net $ 11,587 $ 11,606 Depreciation and amortization expense was $832,000 and $713,000 for the years ended December 31, 2016 and 2015, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
DEPOSITS | N OTE EPOSITS The following is a summary of deposit balances by type at December 31, 2016 and 2015: (In thousands) 2016 2015 NOW and demand $ 280,773 $ 238,462 Regular savings 111,016 106,208 Money market deposits 145,321 108,377 Total non-certificate accounts 537,110 453,047 Term certificates of $100,000 or more 20,227 36,941 Term certificates less than $100,000 70,645 87,247 Total certificate accounts 90,872 124,188 Total deposits $ 627,982 $ 577,235 The aggregate amounts of time deposits in denominations over $250,000 were $3.4 million and $3.4 million at December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, the aggregate amount of brokered time deposits was $49.3 million and $63.8 million respectively. At December 31, 2016 and 2015, $49.3 million and $63.4 million, respectively, of brokered time deposits were included in time deposit accounts in denominations of less than $100,000 above. At December 31, 2016 and 2015, the scheduled maturities for time deposits for each of the following five years are as follows: (In thousands) 2016 2015 2016 $ — $ 81,116 2017 69,775 27,746 2018 17,230 12,737 2019 1,414 679 2020 1,663 1,910 2021 790 — Total $ 90,872 $ 124,188 Deposits from related parties held by the Company at December 31, 2016 and 2015 amounted to $3.6 million and $3.1 million, respectively. |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended |
Dec. 31, 2016 | |
Advances from Federal Home Loan Banks [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES | N OTE EDERAL OME OAN ANK DVANCES Advances consist of funds borrowed from the FHLB. Maturities of advances from the FHLB for years ending after December 31, 2016 and 2015 are summarized as follows: (In thousands) 2016 2015 2016 $ — 49,112 2017 35,000 5,000 2018 5,000 — 2020 6,358 3,311 2021 — — Thereafter 3,500 — Total $ 49,858 $ 57,423 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 commercial loans and qualified mortgage-backed government securities. In August of 2015, the Bank modified $3.5 million of its FHLB borrowings and extended the maturity. The Bank incurred a prepayment penalty of $233,000. In accordance with ASC 470, the prepayment penalty is being amortized over the life of the newly modified borrowing. At December 31, 2016, the interest rates on FHLB advances ranged from 0.72% to 3.99%. At December 31, 2016, the weighted average interest rate on FHLB advances was 1.36%. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | N OTE NCOME AXES The components of income tax expense are as follows for the years ended December 31, 2016 and 2015: (In thousands) 2016 2015 Current tax expense (benefit): Federal $ 2,780 $ 2,066 State 653 277 Net operating loss carryforward (14 ) (14 ) 3,419 2,329 Deferred tax expense (benefit): Federal (302 ) (745 ) State (92 ) (221 ) (394 ) (966 ) Net income tax expense $ 3,025 $ 1,363 The following is a summary of the differences between the statutory federal income tax rate and the effective tax rates for the years ended December 31, 2016 and 2015: 2016 2015 Federal income tax at statutory rate 34.0 % 34.0 % Increase (decrease) in tax resulting from: State tax, net of federal tax benefit 4.6 3.5 Tax exempt income and dividends received deduction (4.8 ) (9.5 ) Gain on donated securities (0.1 ) (1.6 ) Other (1.4 ) (0.1 ) Effective tax rate 32.3 % 26.3 % The following is a summary of the Company’s gross deferred tax assets and gross deferred tax liabilities at December 31, 2016 and 2015: (In thousands) 2016 2015 Deferred tax assets: Allowance for loan losses $ 3,431 $ 3,157 Net operating loss carryforward 54 69 Employee benefit plans and share-based compensation plans 2,406 1,940 Deferred loan fees, net 174 154 Writedown of securities 235 242 Reserve for unfunded commitments 54 68 Charitable contribution carryover 297 597 Other 56 16 Gross deferred tax assets 6,707 6,243 Deferred tax liabilities: Depreciation (145 ) (57 ) FHLB restructure fees (67 ) (85 ) Net unrealized holding gain on securities (1,582 ) (1,045 ) Gross deferred tax liabilities (1,794 ) (1,187 ) Net deferred tax asset $ 4,913 $ 5,056 At December 31, 2016, the Company had federal net operating loss carryovers of $160,000. The carryovers were transferred to the Company upon the merger with Amesbury Cooperative Bank during the year ended December 31, 2001. The losses will expire in 2020 and are subject to certain annual limitations which amount to $42,000 per year. The Company reduces the deferred tax asset by a valuation allowance if, based on the weight of the available evidence, it is not “more likely than not” that some portion or all of the deferred tax assets will be realized. The Company assesses the realizability of its deferred tax assets by assessing the likelihood of the Company generating federal and state income tax, as applicable, in future periods in amounts sufficient to offset the deferred tax charges in the periods they are expected to reverse. Based on this assessment, management concluded that a valuation allowance was not required as of December 31, 2016 and 2015. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2016 and 2015, there was no material uncertain tax positions related to federal and state income tax matters. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2013 through December 31, 2015. |
EMPLOYEE BENEFITS & SHARE-BASED
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS | N OTE MPLOYEE ENEFITS HARE ASED OMPENSATION LANS 401(k) Plan The Company sponsors a 401(k) plan. All employees are eligible to join the 401(k) plan. However, participants in the 401(k) plan must complete one year of service to be eligible for safe harbor contributions and employer discretionary contributions. A Safe Harbor Plan was adopted by the Company effective January 1, 2007. Under the Safe Harbor Plan, the Company matches 100% of employee contributions up to 6% of compensation. In addition, the Company may make a discretionary contribution to the 401(k) plan determined on an annual basis. Employees may contribute up to 75% of their salary subject to certain limits based on federal tax laws. The expense recognized under the 401(k) plan was $401,000 and $336,000 for the years ended December 31, 2016 and 2015, respectively. Supplemental Executive Retirement Plans The Company has Supplemental Executive Retirement Agreements with certain executive officers. These agreements are designed to supplement the benefits available through the Company’s retirement plan. The liability for the retirement benefits amounted to $4.4 million and $3.5 million at December 31, 2016 and 2015, respectively, and is included in other liabilities. The expense recognized for these benefits was $947,000 and $895,000 for the years ended December 31, 2016 and 2015, respectively. Employee Stock Ownership Plan The Bank maintains the ESOP to provide eligible employees the opportunity to own Company stock. This plan is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released per year through 2029 is 23,810. The Company contributed funds to a subsidiary to enable it to grant a loan to the ESOP for the purchase of 357,152 shares of the Company’s stock at a price of $10.00 per share. The loan obtained by the ESOP from the Company’s subsidiary to purchase Company stock is payable annually over 15 years at a rate per annum equal to the prime rate (3.75% at December 31, 2016). Loan payments are principally funded by cash contributions from the Company. Shares held by the ESOP include the following: December 31, 2016 December 31, 2015 Allocated 23,810 — Committed to be allocated 23,810 23,810 Unallocated 309,532 333,342 Total 357,152 357,152 Shared-Based Compensation Plan Under the Provident Bancorp, Inc. 2016 Equity Incentive Plan (the “Equity Plan”), the Company may grant options, restricted stock, restricted units or performance awards to its directors, officers and employees. Both incentive stock options and non-qualified stock options may be granted under the Equity Plan, with the total shares reserved for options equaling 446,440. The exercise price of each option equals the market price of the Company’s stock on the date of grant and the maximum term of each option is ten years. The total number of shares reserved for restricted stock or restricted units is 178,575. The value of restricted stock grants is based on the grant date fair value of the related stock. Options and awards vest ratably over five years. The fair value of shares awarded is based on the market price at the date of grant. Stock option awards granted to date under the Equity Plan expire ten years after issue date. Expense related to options and restricted stock granted to directors is recognized as directors’ fees within non-interest expense. Stock Options The fair value of each option is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions: • Volatility is based on peer group volatility because the Company does not have a sufficient trading history. • Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, and the vesting period. • The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. The fair value of options granted in 2016 is based on the following assumptions: Date of Grant November 17, 2016 Options granted 384,268 Vesting period (years) 5 Expiration date November 17, 2026 Expected volatility 20.80% Expected life (years) 7.5 Expected dividend yield 0.00% Risk free interest rate 2.12% Fair value per option $5.03 A summary of the status of the Company’s stock option grants for the year ended December 31, 2016, is presented in the table below: Stock Option Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balance at January 1, 2016 — $ — — $ — Granted 384,268 17.40 9.88 192,134 Balance at December 31, 2016 384,268 $ 17.40 9.88 $ 192,134 Outstanding and expected to vest at December 31, 2016 384,268 $ 17.40 9.88 $ 192,134 Exercisable at December 31, 2016 — — — — Unrecognized compensation cost $ 1,884,000 Weighted average remaining recognition period (years) 4.88 Total expense for the stock options was $47,000 for the year ended December 31, 2016. There was no stock-based compensation expense for the year ended December 31, 2015. Restricted Stock Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company. Any shares not issued because vesting requirements are not met will again be available for issuance under the plan. The fair market value of shares awarded, based on the market prices at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period. The following table presents the activity in restricted stock awards under the Equity Plan for the year ended December 31, 2016: Outstanding Restricted Stock Awards Weighted Average Grant Price Restricted stock awards at January 1, 2016 — $ — Granted 153,726 17.40 Restricted stock awards at Decemer 31, 2016 153,726 $ 17.40 Unrecognized compensation cost $ 2,609,000 Weighted average remaining recognition period (years) 4.88 Total expense for the restricted stock awards was $66,000 for the year ended December 31, 2016. There was no stock-based compensation expense for the year ended December 31, 2015. Long-Term Incentive Plan The Bank awards compensation through a plan called The Provident Bank Long-Term Incentive Plan. The purpose of the plan is to provide deferred compensation to officers of the Bank and to provide performance incentives for such persons. Such deferred compensation is based upon the award of phantom stock, the value of which is based on the Bank’s ability to grow earnings and capital. Compensation under the Plan is accrued over the vesting period. The liability for the plan amounted to $1.4 million and $1.3 million at December 31, 2016 and 2015, respectively, and is included in other liabilities. Expenses relating to the plan amounted to $485,000 and $480,000 for the years ended December 31, 2016 and 2015, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | N OTE ARNINGS ER HARE Earnings per share consisted of the following components for the year ended December 31, 2016. The Company was not publicly traded for all of 2015 and, as a result, earnings per share is not presented for 2015. (Dollars in thousands) Year Ended Net Income attributable to common shareholders $ 6,339 Average number of common shares outstanding 9,498,722 Less: unallocated ESOP shares (322,338 ) Average number of common shares outstanding to calculate basic earnings per common share 9,176,384 Effect of dilutive unvested restricted stock and stock option awards — Average number of common shares outstanding to calculate diluted earnings per common share 9,176,384 For the year ended December 31, 2016, 537,994 of stock grants were anti-dilutive and therefore excluded from the earnings per share calculation. Anti-dilutive shares are common stock equivalents with weighted average exercise prices in excess of the weighted average market value for the periods presented. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | Note 11 — R EGULATORY ATTERS 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 Company’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 FDIC, which implement the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The new regulations require a new 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 new prompt corrective action regulations, in order to be considered “well capitalized,” the Bank must maintain a CET1 capital ratio of 6.5% and a Tier 1 ratio of 8.0%, a total risk based capital ratio of 10% and a Tier 1 leverage ratio of 5.0%. In addition, the regulations establish a capital conservation buffer above the required capital ratios that started phasing in on 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. Beginning January 1, 2016, 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. The new regulations implemented changes to what is included in regulatory capital. Certain instruments no longer constitute qualifying capital, subject to phase-out periods. In addition, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of CET1 must be deducted from capital. The Bank has elected to permanently opt-out of the inclusion of accumulated other comprehensive income in capital calculations, as permitted by the regulations. This opt-out will reduce the impact of market volatility on the Bank’s regulatory capital ratios. The new regulations also changed the risk weights of certain assets, including an increase in the risk weight of certain high volatility commercial real estate acquisition, development and construction loans and non-residential mortgage loans that are 90 days past due or on non-accrual status to 150% from 100%, a credit conversion factor for the unused portion of commitments with maturities of less than one year that are not cancellable to 20% from 0%, an increase in the risk weight for mortgage servicing rights and deferred tax assets that are not deducted from capital to 250% from 100%, and an increase in the risk weight for equity exposures to 600% from 0%. As of December 31, 2016 and 2015, the Bank met the conditions to be classified as well capitalized under the regulatory framework for prompt corrective action. The Bank’s actual capital amounts and ratios at December 31, 2016 and 2015 are summarized as follows: Actual Capital For Capital To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to Risk Weighted Assets) $ 107,731 15.88 % $ 54,272 ≥ 8.0 % $ 67,840 ≥ 10.0 % Tier 1 Capital (to Risk Weighted Assets) 97,750 14.41 40,704 ≥ 6.0 54,272 ≥ 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 97,750 14.41 30,528 ≥ 4.5 44,096 ≥ 6.5 Tier 1 Capital (to Average Assets) 97,750 12.59 31,058 ≥ 4.0 38,822 ≥ 5.0 December 31, 2015 Total Capital (to Risk Weighted Assets) $ 104,032 17.06 % $ 48,780 ≥ 8.0 % $ 60,975 ≥ 10.0 % Tier 1 Capital (to Risk Weighted Assets) 95,370 15.64 36,585 ≥ 6.0 48,780 ≥ 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 95,370 15.64 27,439 ≥ 4.5 39,634 ≥ 6.5 Tier 1 Capital (to Average Assets) 95,370 13.42 28,435 ≥ 4.0 35,544 ≥ 5.0 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | N OTE OMMITMENTS AND ONTINGENT IABILITIES At December 31, 2016, the Company was obligated under non-cancelable operating leases for bank premises and equipment. The total minimum rental due in future periods under these existing agreements is as follows at December 31, 2016: (In thousands) 2017 $ 302 2018 302 2019 293 2020 245 2021 252 Years thereafter 2,110 Total minimum lease payments $ 3,504 The total rental expense amounted to $322,000 and $279,000 for the years ended December 31, 2016 and 2015, respectively. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | N OTE INANCIAL NSTRUMENTS 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, standby letters of credit and unadvanced funds on loans. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. 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 and standby letters of credit 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. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. 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 real property, accounts receivable, inventory, property, plant and equipment and income producing properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. At December 31, 2016 and 2015, the maximum potential amount of the Company’s obligation was $5,164,000 and $5,474,000, respectively, for financial and standby letters of credit. The Company’s outstanding letters of credit generally have a term of less than one year. If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit. Notional amounts of financial instrument with off-balance sheet credit risk are as follows at December 31, 2016 and 2015: (In thousands) 2016 2015 Commitments to originate loans $ 25,363 $ 15,592 Letters of credit 5,164 5,474 Unadvanced portions of loans 202,032 191,598 $ 232,559 $ 212,664 |
SIGNIFICANT GROUP CONCENTRATION
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | N OTE IGNIFICANT ROUP ONCENTRATIONS OF REDIT ISK Most of the Company’s business activity is with customers located within Massachusetts and New Hampshire. There are no concentrations of credit to borrowers that have similar economic characteristics. The majority of the Company’s loan portfolio is comprised of loans collateralized by real estate located in Massachusetts and New Hampshire. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | N OTE AIR ALUE EASUREMENTS The Company reports certain assets at fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value in accordance with generally accepted accounting principles. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Basis of Fair Value Measurements • Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 — Observable inputs other than level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; • Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). 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. Fair Values of Financial Instruments Measured on a Recurring Basis The Company’s investments in U.S. Government and federal agency, state and municipal, corporate debt, asset-backed and government mortgage-backed securities available-for-sale is generally classified within Level 2 of the fair value hierarchy. For these investments, 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 Company classifies its investments in trust preferred securities as Level 3 securities. The Company classified its investments in marketable equity securities as Level 1 securities. The following summarizes financial instruments measured at fair value on a recurring basis at December 31, 2016 and 2015: Fair Value Measurements at Reporting Date Using (In thousands) Total Quoted Prices in Significant Significant December 31, 2016 State and municipal $ 50,580 $ — $ 50,580 $ — Corporate debt 1,031 — 1,031 — Asset-backed securities 8,678 — 8,678 — Mortgage-backed securities 41,914 — 41,914 — Trust preferred securities 968 — — 968 Marketable equity securities 14,696 14,696 — — Totals $ 117,867 $ 14,696 $ 102,203 $ 968 December 31, 2015 U.S. Government and federal agency $ 2,033 $ — $ 2,033 $ — State and municipal 3,682 — 3,682 — Corporate debt 1,071 — 1,071 — Asset-backed securities 9,624 — 9,624 — Government mortgage-backed securities 52,812 — 52,812 — Trust preferred securities 1,116 — — 1,116 Marketable equity securities 10,646 10,646 — — Totals $ 80,984 $ 10,646 $ 69,222 $ 1,116 The Company did not have any transfers of financial instruments measured at fair value on a recurring basis between Levels 1 and 2 of the fair value hierarchy during the years ended December 31, 2016 and 2015. The following is a summary of activity for Level 3 financial instruments measured at fair value on a recurring basis at December 31, 2016 and 2015: (In thousands) Available for Balance beginning January 1, 2015 $ 1,122 Total gains or (losses) (realized/unrealized) Included in earnings — Included in other comprehensive income 128 Paydowns (134 ) Ending balance, December 31, 2015 $ 1,116 Balance beginning January 1, 2016 $ 1,116 Total gains or (losses) (realized/unrealized) Included in earnings — Included in other comprehensive income (148 ) Paydowns — Ending balance, December 31, 2016 $ 968 Fair Values of Financial Instruments Measured on a Nonrecurring Basis The Company’s impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 2 inputs based upon appraisals of similar properties obtained from a third party. For Level 3 inputs, fair value is based upon management estimates of the value of the underlying collateral or the present value of the expected cash flows. The following summarizes financial instruments measured at fair value on a nonrecurring basis at December 31, 2016 and 2015: Fair Value Measurements at Reporting Date Using: (In thousands) Total Quoted Prices in Significant Significant December 31, 2016 Impaired loans $ 815 $ — $ — $ 815 December 31, 2015 Impaired loans $ 606 $ — $ — $ 606 The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at December 31, 2016 and 2015: (In thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2016 Impaired loans $ 815 Real estate appraisals Discount for dated appraisals 6 – 10 % December 31, 2015 Impaired loans $ 606 Real estate appraisals Discount for dated appraisals 6 – 10 % |
DISCLOSURES ABOUT FAIR VALUES O
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Of Financial Instrument [Abstract] | |
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS | N OTE ISCLOSURES BOUT AIR ALUES OF INANCIAL NSTRUMENTS GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Certain financial instruments and all nonfinancial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows at December 31, 2016 and 2015: Carrying Fair Value (In thousands) Level 1 Level 2 Level 3 Total December 31, 2016 Financial assets: Cash and cash equivalents $ 10,705 $ 10,705 $ — $ — $ 10,705 Available-for-sale securities 117,867 14,696 102,203 968 117,867 Federal Home Loan Bank of Boston stock 2,787 2,787 — — 2,787 Loans, net 624,425 — — 632,278 632,278 Accrued interest receivable 2,320 — 2,320 — 2,320 Financial liabilities: Deposits 627,982 — — 628,060 628,060 Federal Home Loan Bank advances 49,858 — 49,901 — 49,901 December 31, 2015 Financial assets: Cash and cash equivalents $ 20,464 $ 20,464 $ — $ — $ 20,464 Available-for-sale securities 80,984 10,646 69,222 1,116 80,984 Held-to-maturity securities 44,623 — 46,474 — 46,474 Federal Home Loan Bank of Boston stock 3,310 3,310 — — 3,310 Loans, net 554,929 — — 561,937 561,937 Accrued interest receivable 2,251 — 2,251 — 2,251 Financial liabilities: Deposits 577,235 — — 577,316 577,316 Federal Home Loan Bank advances 57,423 — 57,774 — 57,774 The carrying amounts of financial instruments shown above are included in the consolidated balance sheets under the indicated captions. Accounting policies related to financial instruments are described in Note 2. |
SMALL BUSINESS LENDING FUND
SMALL BUSINESS LENDING FUND | 12 Months Ended |
Dec. 31, 2016 | |
Small Business Lending Fund [Abstract] | |
SMALL BUSINESS LENDING FUND | N OTE MALL USINESS ENDING UND On September 13, 2011, as part of the Small Business Lending Fund Program (“SBLF”) of the U. S. Treasury (“Treasury”), the Company issued and sold to the Treasury 17,145 shares of the Company’s Non-Cumulative Perpetual Preferred Stock, Series A, no par value, having liquidation preference of $1,000 per preferred share (the “Series A Preferred Stock”). The initial rate payable on SBLF capital is, at most, five percent, and the rate falls to one percent if a bank’s small business lending increases by ten percent or more. Banks that increase their lending by less than ten percent pay rates between two percent and four percent. If a bank’s lending does not increase in the first two years, however, the rate increases to seven percent, and after 4.5 years total, the rate for all banks increases to nine percent (if the bank has not already repaid the SBLF funding). The dividend will be paid only when declared by the Company’s Board of Directors. The Series A Preferred Stock has no maturity date and ranks senior to Common Stock with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Company. The Company’s dividend rate on SBLF capital at December 31, 2015 was 1.0%. SBLF dividends paid for the year ended December 31, 2015 amounted to $167,000. On December 21, 2015, the Company redeemed the 17,145 shares of Series A Preferred Stock issued to the Treasury under the SBLF preferred stock program with a payment to the Treasury of $17.1 million plus accrued dividends. |
RECLASSIFICATION
RECLASSIFICATION | 12 Months Ended |
Dec. 31, 2016 | |
Reclassification [Abstract] | |
RECLASSIFICATION | N OTE ECLASSIFICATION Certain amounts in the prior year have been reclassified to be consistent with the current year’s consolidated financial statement presentation, and had no effect on the net income reported in the consolidated income statement. |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY | N OTE ONDENSED INANCIAL TATEMENTS OF ARENT NLY Financial information pertaining only to Provident Bancorp, Inc. is as follows: Provident Bancorp, Inc. — Parent Only Balance Sheet (In thousands) 2016 2015 Assets Cash and due from banks $ 5,659 $ 961 Investment in common stock of The Provident Bank 100,426 97,128 Other assets 3,138 3,338 Total assets $ 109,223 $ 101,427 Liabilities and Shareholders’ Equity Accrued expenses $ 73 $ 21 Shareholders’ equity 109,150 101,406 Total liabilities and shareholders’ equity $ 109,223 $ 101,427 Provident Bancorp, Inc. — Parent Only Income Statement Year Ended (In thousands) 2016 2015 Total income $ 4,549 $ 54 Operating expenses 95 9 Income before income taxes and equity in undistributed net income of The Provident Bank 4,454 45 Applicable income tax provision 8 — Income before equity in income of subsidiaries 4,446 — Equity in undistributed net income of The Provident Bank 1,893 3,778 Net income $ 6,339 $ 3,823 Provident Bancorp, Inc. — Parent Only Statement of Cash Flows Twelve Months Ended (In thousands) 2016 2015 Cash flows from operating activities: Net income $ 6,339 $ 3,823 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsidiaries (1,893 ) (3,778 ) Contribution of stock to charitable foundation — 1,900 Decrease (increase) in other assets 200 (3,338 ) Increase (decrease) in other liabilities 52 (22 ) Net cash provided by (used in) operating activities 4,698 (1,415 ) Cash flows from investing activities: Investment in The Provident Bank — (18,078 ) Net cash used in investing activities — (18,078 ) Cash flows from financing activities: Proceeds from sale of common stock, net — 37,625 Redemption of SBLF preferred stock — (17,145 ) Preferred stock dividends — (167 ) Net cash provided by (used) in financing activities — 20,313 Net increase in cash and cash equivalents 4,698 820 Cash and cash equivalents at beginning of year 961 141 Cash and cash equivalents at end of year $ 5,659 $ 961 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | N OTE ELECTED UARTERLY INANCIAL ATA UNAUDITED First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands) 2016 2015 2016 2015 2016 2015 2016 2015 Interest and dividend income $ 6,980 $ 6,074 $ 7,026 $ 6,252 $ 7,426 $ 6,448 $ 7,462 $ 6,678 Interest expense 697 547 681 550 713 567 694 510 Net interest and dividend income 6,283 5,527 6,345 5,702 6,713 5,881 6,768 6,168 Provision for loan losses 111 278 210 193 163 174 219 160 Gain on sale of securities, net 20 81 17 21 438 215 215 — Other income 915 743 950 838 925 945 955 963 Total noninterest income 935 824 967 859 1,363 1,160 1,170 963 Total noninterest expense 4,924 4,667 5,080 4,680 5,212 6,871 5,261 4,875 Income tax expense (benefit) 696 393 659 459 940 (134 ) 730 645 Net income $ 1,487 $ 1,013 $ 1,363 $ 1,229 $ 1,761 $ 130 $ 1,728 $ 1,451 Income (loss) per share: Basic $ 0.16 N/A $ 0.15 N/A $ 0.19 N/A $ 0.19 N/A Diluted $ 0.16 N/A $ 0.15 N/A $ 0.19 N/A $ 0.19 N/A Weighted Average Shares: Basic 9,167,364 N/A 9,173,317 N/A 9,179,269 N/A 9,185,285 N/A Diluted 9,167,364 N/A 9,173,317 N/A 9,179,269 N/A 9,185,285 N/A |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the 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, stock-based compensation expense and deferred income taxes. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation was established to buy, sell, and hold investments for its own account, and 5 Market Street Security Corporation, an inactive corporation, was established to buy, sell, and hold investments for its own account. All material intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks, interest-bearing demand deposits with other banks, money market mutual funds and federal funds sold. |
Investment Securities | Investment Securities Investments in debt securities are adjusted for amortization of premiums and accretion of discounts so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis and are recorded as of the trade date. The Company classifies debt and equity securities into one of three categories: held-to-maturity, available-for-sale or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities must be classified as available-for-sale. • Held-to-maturity securities are measured at amortized cost in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings or as a separate component of shareholders’ equity. • Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, but are reported as a net amount (less expected tax) as a separate component of shareholders’ equity until realized. • Trading securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings. The Company evaluates debt and equity securities within the Company’s available for sale and held to maturity portfolios for other-than-temporary impairment (“OTTI”), at least quarterly. If the fair value of a debt security is below the amortized cost basis of the security, OTTI is required to be recognized if any of the following are met: (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes. In evaluating its marketable equity securities portfolios for OTTI, the Company considers its intent and ability to hold an equity security to recovery of its cost basis in addition to various other factors, including the length of time and the extent to which the fair value has been less than cost and the financial condition and near term prospects of the issuer. Any OTTI on marketable equity securities is recognized immediately through earnings. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank of Boston (the “FHLB”), the Company 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. FHLB stock is a non-marketable equity security that is carried at cost and evaluated for impairment when deemed necessary. |
Loans | Loans Loan receivables 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 unadvanced 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. Interest income is accrued on the unpaid principal balance. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is recognized as an adjustment of the related loan yield using the interest method. The Company is amortizing these amounts over the contractual life of the related loans. Residential real estate loans are generally placed on non-accrual status when reaching 90 days past due or in process of collection. Past due status is based on the contractual terms of the loan. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on non-accrual 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 and leases which are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on non-accrual 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. Interest income received on non-accrual loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. 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 is 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 uncollectibality 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 size and composition 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. The allowance for loan losses is allocated to loan types using both a formula-based approach (general component) and an analysis of certain individual loans for impairment (allocated component). A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures. The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction and land development, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. These historical loss factors are adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate: Commercial: Residential real estate: Construction and land development: Consumer: The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The Company from time to time, may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modified loan is considered a troubled debt restructuring (“TDR”). All TDRs are initially classified as impaired. An unallocated component can be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the 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. |
Premises and Equipment | Premises and Equipment Premises 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. Generally, depreciation on the buildings and equipment is calculated principally on the straight line method, and depreciation and amortization expense is charged against operations over the estimated useful lives of the related assets. |
Foreclosed and Repossessed Assets | Foreclosed and Repossessed Assets Assets acquired through, or in lieu of, loan foreclosure or repossession are held for sale and are initially recorded at the lower of the investment in the loan or fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. Subsequently, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations, changes in the valuation allowance, any direct write-downs and gains or losses on sales are included in other real estate owned expense. |
Advertising | Advertising The Company directly expenses costs associated with advertising as they are incurred. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. At December 31, 2016, there are no common stock equivalents. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Compensation expense for The Provident Bank Employee Stock Ownership Plan (the “ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity on the consolidated balance sheet. The difference between the average fair market value and the cost of the shares by the ESOP is recorded as an adjustment to additional paid-in-capital. |
Stock-based Compensation Plans | Stock-based Compensation Plans The Company measures and recognizes compensation cost relating to stock-based payment transactions based on the grant-date fair value of the equity instruments issued. Stock-based compensation is recognized over the period the employee is required to provide services for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. The fair value of restricted stock is recorded based on the grant date value of the equity instrument issued. |
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. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. The Company examines its significant income tax positions annually to determine whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments GAAP requires that the Company disclose estimated fair values 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: Investments (including government mortgage-backed securities): Loans receivable: Accrued interest receivable: Deposit liabilities: Federal Home Loan Bank advances: Off-balance sheet instruments: |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU (Accounting Standards Update) No. 2014-09 — Revenue from Contracts with Customers (Topic 606). ASU No. 2014-14, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40) — “Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)”. ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-02, Leases (Topic 842). ASU 2016-09, Compensation Stock — Compensation (Topic 718): “Improvements to Employee Share Based Payment Accounting.” ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” ASU No. 2016-15, Statement of Cash Flows (Topic 230): “Classification of Certain Cash Receipts and Cash Payments.” ASU No. 2016-18, Statement of Cash Flows (Topic 230): “Restricted Cash” |
INVESTMENTS IN SECURITIES (Tabl
INVESTMENTS IN SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost of investment securities classified as available-for-sale and their approximate fair values | (In thousands) Amortized Gross Gross Fair December 31, 2016 State and municipal $ 49,367 $ 1,281 $ 68 $ 50,580 Corporate debt 1,000 31 — 1,031 Asset-backed securities 8,747 — 69 8,678 Government mortgage-backed securities 41,818 435 339 41,914 Trust preferred securities 1,368 — 400 968 Marketable equity securities 11,492 3,551 218 14,825 113,792 5,298 1,094 117,996 Money market mutual funds included in cash and cash equivalents (129 ) — — (129 ) Total available-for-sale securities $ 113,663 $ 5,298 $ 1,094 $ 117,867 December 31, 2015 U.S. Government and federal agency $ 1,996 $ 37 $ — $ 2,033 State and municipal 3,373 309 — 3,682 Corporate debt 1,000 71 — 1,071 Asset-backed securities 9,656 9 41 9,624 Government mortgage-backed securities 52,515 622 325 52,812 Trust preferred securities 1,368 55 307 1,116 Marketable equity securities 8,638 2,653 348 10,943 78,546 3,756 1,021 81,281 Money market mutual funds included in cash and cash equivalents (297 ) — — (297 ) Total available-for-sale securities $ 78,249 $ 3,756 $ 1,021 $ 80,984 |
Schedule of amortized cost of investment securities classified as held-to-maturity and their approximate fair values | (In thousands) Amortized Gross Gross Fair December 31, 2015 State and municipal $ 44,623 $ 1,905 $ 54 $ 46,474 |
Schedule of maturities of debt securities | Available- (In thousands) Fair Value Due within one year $ 1,813 Due after one year through five years 2,326 Due after five years through ten years 7,810 Due after ten years 40,630 Government mortgage-backed securities 41,914 Asset-backed securities 8,678 $ 103,171 |
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 (In thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Temporarily impaired securities: State and municipal $ 6,413 $ 63 $ 160 $ 5 $ 6,573 $ 68 Asset-backed securities 8,104 60 574 9 8,678 69 Government mortgage-backed securities 20,868 247 2,770 92 23,638 339 Trust preferred securities 26 18 942 382 968 400 Marketable equity securities 1,942 104 768 114 2,710 218 Total temporarily impaired securities $ 37,353 $ 492 $ 5,214 $ 602 $ 42,567 $ 1,094 December 31, 2015 Temporarily impaired securities: State and municipal $ 3,195 $ 28 $ 729 $ 26 $ 3,924 $ 54 Asset-backed securities 5,062 7 2,005 34 7,067 41 Government mortgage-backed securities 21,108 88 9,156 237 30,264 325 Trust preferred securities — — 1,017 307 1,017 307 Marketable equity securities 1,591 166 529 182 2,120 348 Total temporarily impaired securities $ 30,956 $ 289 $ 13,436 $ 786 $ 44,392 $ 1,075 |
Schedule of credit component on debt securities of other-than-temporary impairment | (In thousands) Trust preferred securities: Balance, December 31, 2014 $ 688 Additions for the credit component on debt securities in which an other-than-temporary impairment was previously recognized — Balance, December 31, 2015 688 Additions for the credit component on debt securities in which an other-than-temporary impairment was previously recognized — Balance, December 31, 2016 $ 688 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of summary of loans | (In thousands) 2016 2015 Commercial real estate $ 336,102 $ 285,356 Commercial 166,157 112,073 Residential real estate 76,850 92,392 Construction and land development 48,161 71,535 Consumer 6,172 1,855 633,442 563,211 Allowance for loan losses (8,590 ) (7,905 ) Deferred loan fees, net (427 ) (377 ) Net loans $ 624,425 $ 554,929 |
Schedule of allowance for loan losses by portfolio segment | (In thousands) Commercial Commercial Residential Construction Consumer Unallocated Total December 31, 2016 Allowance for loan losses: Beginning balance $ 3,827 $ 2,138 $ 412 $ 1,236 $ 119 $ 173 $ 7,905 Charge-offs — — — — (44 ) — (44 ) Recoveries — 1 12 — 13 — 26 Provision (benefit) 676 374 (96 ) (354 ) 191 (88 ) 703 Ending balance $ 4,503 $ 2,513 $ 328 $ 882 $ 279 $ 85 $ 8,590 Ending balance: Individually evaluated for impairment $ — $ 46 $ — $ — $ — $ — $ 46 Ending balance: Collectively evaluated for impairment 4,503 2,467 328 882 279 85 8,544 Total allowance for loan losses ending balance $ 4,503 $ 2,513 $ 328 $ 882 $ 279 $ 85 $ 8,590 Loans: Ending balance: Individually evaluated for impairment $ 1,956 $ 1,660 $ 422 $ — $ — $ — $ 4,038 Ending balance: Collectively evaluated for impairment 334,146 164,497 76,428 48,161 6,172 — 629,404 Total loans ending balance $ 336,102 $ 166,157 $ 76,850 $ 48,161 $ 6,172 $ — $ 633,442 (In thousands) Commercial Commercial Residential Construction Consumer Unallocated Total December 31, 2015 Allowance for loan losses: Beginning balance $ 3,500 $ 1,751 $ 560 $ 872 $ 184 $ 357 $ 7,224 Charge-offs — (96 ) — — (65 ) — (161 ) Recoveries — 20 6 — 11 — 37 Provision (benefit) 327 463 (154 ) 364 (11 ) (184 ) 805 Ending balance $ 3,827 $ 2,138 $ 412 $ 1,236 $ 119 $ 173 $ 7,905 Ending balance: Individually evaluated for impairment $ — $ 488 $ — $ — $ — $ — $ 488 Ending balance: Collectively evaluated for impairment 3,827 1,650 412 1,236 119 173 7,417 Total allowance for loan losses ending balance $ 3,827 $ 2,138 $ 412 $ 1,236 $ 119 $ 173 $ 7,905 Loans: Ending balance: Individually evaluated for impairment $ 3,272 $ 1,755 $ 437 $ — $ — $ — $ 5,464 Ending balance: Collectively evaluated for impairment 282,084 110,318 91,955 71,535 1,855 — 557,747 Total loans ending balance $ 285,356 $ 112,073 $ 92,392 $ 71,535 $ 1,855 $ — $ 563,211 |
Schedule of non accrual loans and past-due loans by portfolio segment | (In thousands) 30 – 59 60 – 89 90 Days Total Total Total 90 Days Nonaccrual December 31, 2016 Commercial real estate $ — $ — $ 346 $ 346 $ 335,756 $ 336,102 $ — $ 346 Commercial 29 — — 29 166,128 166,157 — 933 Residential real estate — — — — 76,850 76,850 — 303 Construction and land development — — — — 48,161 48,161 — — Consumer — — — — 6,172 6,172 — — Total $ 29 $ — $ 346 $ 375 $ 633,067 $ 633,442 $ — $ 1,582 December 31, 2015 Commercial real estate $ — $ — $ — $ — $ 285,356 $ 285,356 $ — $ 106 Commercial — — — — 112,073 112,073 — 1,147 Residential real estate 130 173 365 668 91,724 92,392 1,031 Construction and land development — — — — 71,535 71,535 — — Consumer 1 1 — 2 1,853 1,855 — — Total $ 131 $ 174 $ 365 $ 670 $ 562,541 $ 563,211 $ — $ 2,284 |
Schedule of impaired loans by portfolio segment | (In thousands) Recorded Unpaid Related Average Interest December 31, 2016 With no related allowance recorded: Commercial real estate $ 1,956 $ 1,956 $ — $ 2,744 $ 188 Commercial 799 799 — 794 42 Residential real estate 422 422 — 429 20 Construction and land development — — — — — Consumer — — — — — Total impaired with no related allowance $ 3,177 $ 3,177 $ — $ 3,967 $ 250 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial 861 861 46 886 — Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Total impaired with an allowance recorded $ 861 $ 861 $ 46 $ 886 $ — Total Commercial real estate $ 1,956 $ 1,956 $ — $ 2,744 $ 188 Commercial 1,660 1,660 46 1,680 42 Residential real estate 422 422 — 429 20 Construction and land development — — — — — Consumer — — — — — Total impaired loans $ 4,038 $ 4,038 $ 46 $ 4,853 $ 250 December 31, 2015 With no related allowance recorded: Commercial real estate $ 3,272 $ 3,272 $ — $ 3,788 $ 149 Commercial 661 661 — 611 20 Residential real estate 437 437 — 323 17 Construction and land development — — — — — Consumer — — — — — Total impaired with no related allowance $ 4,370 $ 4,370 $ — $ 4,722 $ 186 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial 1,094 1,094 488 901 2 Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Total impaired with an allowance recorded $ 1,094 $ 1,094 $ 488 $ 901 $ 2 Total Commercial real estate $ 3,272 $ 3,272 $ — $ 3,788 $ 149 Commercial 1,755 1,755 488 1,512 22 Residential real estate 437 437 — 323 17 Construction and land development — — — — — Consumer — — — — — Total impaired loans $ 5,464 $ 5,464 $ 488 $ 5,623 $ 188 |
Schedule of troubled debt restructurings | (Dollars in thousands) Number of Pre-Modification Post-Modification Year-Ended December 31, 2016 Troubled debt restructurings: Commercial 1 $ 58 $ 58 1 $ 58 $ 58 Year-Ended December 31, 2015 Troubled debt restructurings: Commercial real estate 2 $ 464 $ 464 Commercial 8 1,578 1,578 Residential real estate 2 226 226 12 $ 2,268 $ 2,268 |
Schedule of loans by risk rating and portfolio segment | (In thousands) Commercial Commercial Residential Construction Consumer Total December 31, 2016 Grade: Pass $ 319,712 $ 157,306 $ — $ 48,161 $ — $ 525,179 Special mention 4,471 1,668 — — — 6,139 Substandard 11,919 7,183 729 — — 19,831 Not formally rated — — 76,121 — 6,172 82,293 Total $ 336,102 $ 166,157 $ 76,850 $ 48,161 $ 6,172 $ 633,442 December 31, 2015 Grade: Pass $ 265,325 $ 106,677 $ — $ 71,535 $ — $ 443,537 Special mention 15,700 1,403 — — — 17,103 Substandard 4,331 3,083 1,329 — — 8,743 Doubtful — 910 — — — 910 Not formally rated — — 91,063 — 1,855 92,918 Total $ 285,356 $ 112,073 $ 92,392 $ 71,535 $ 1,855 $ 563,211 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of summary of premises and equipment | (In thousands) 2016 2015 Land $ 2,424 $ 2,424 Buildings and leasehold improvements 9,241 9,191 Furniture and equipment 4,499 4,190 Leasehold improvements 4,234 2,911 Construction in progress — 1,251 20,398 19,967 Accumulated depreciation and amortization (8,811 ) (8,361 ) Premises and equipment, net $ 11,587 $ 11,606 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Schedule of deposit liabilities disclosures | (In thousands) 2016 2015 NOW and demand $ 280,773 $ 238,462 Regular savings 111,016 106,208 Money market deposits 145,321 108,377 Total non-certificate accounts 537,110 453,047 Term certificates of $100,000 or more 20,227 36,941 Term certificates less than $100,000 70,645 87,247 Total certificate accounts 90,872 124,188 Total deposits $ 627,982 $ 577,235 |
Schedule of maturities of time deposits | (In thousands) 2016 2015 2016 $ — $ 81,116 2017 69,775 27,746 2018 17,230 12,737 2019 1,414 679 2020 1,663 1,910 2021 790 — Total $ 90,872 $ 124,188 |
FEDERAL HOME LOAN BANK ADVANC34
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of maturities of advances from the FHLB | (In thousands) 2016 2015 2016 $ — 49,112 2017 35,000 5,000 2018 5,000 — 2020 6,358 3,311 2021 — — Thereafter 3,500 — Total $ 49,858 $ 57,423 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of components for income taxes | (In thousands) 2016 2015 Current tax expense (benefit): Federal $ 2,780 $ 2,066 State 653 277 Net operating loss carryforward (14 ) (14 ) 3,419 2,329 Deferred tax expense (benefit): Federal (302 ) (745 ) State (92 ) (221 ) (394 ) (966 ) Net income tax expense $ 3,025 $ 1,363 |
Schedule of income tax expense computed at the statutory federal corporate tax rate | 2016 2015 Federal income tax at statutory rate 34.0 % 34.0 % Increase (decrease) in tax resulting from: State tax, net of federal tax benefit 4.6 3.5 Tax exempt income and dividends received deduction (4.8 ) (9.5 ) Gain on donated securities (0.1 ) (1.6 ) Other (1.4 ) (0.1 ) Effective tax rate 32.3 % 26.3 % |
Schedule of deferred income taxes | (In thousands) 2016 2015 Deferred tax assets: Allowance for loan losses $ 3,431 $ 3,157 Net operating loss carryforward 54 69 Employee benefit plans and share-based compensation plans 2,406 1,940 Deferred loan fees, net 174 154 Writedown of securities 235 242 Reserve for unfunded commitments 54 68 Charitable contribution carryover 297 597 Other 56 16 Gross deferred tax assets 6,707 6,243 Deferred tax liabilities: Depreciation (145 ) (57 ) FHLB restructure fees (67 ) (85 ) Net unrealized holding gain on securities (1,582 ) (1,045 ) Gross deferred tax liabilities (1,794 ) (1,187 ) Net deferred tax asset $ 4,913 $ 5,056 |
EMPLOYEE BENEFITS & SHARE-BAS36
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of employee stock ownership plan | December 31, 2016 December 31, 2015 Allocated 23,810 — Committed to be allocated 23,810 23,810 Unallocated 309,532 333,342 Total 357,152 357,152 |
Schedule of fair value of stock options granted | Date of Grant November 17, 2016 Options granted 384,268 Vesting period (years) 5 Expiration date November 17, 2026 Expected volatility 20.80% Expected life (years) 7.5 Expected dividend yield 0.00% Risk free interest rate 2.12% Fair value per option $5.03 |
Schedule of stock option activity | Stock Option Weighted Weighted Average Aggregate Balance at January 1, 2016 — $ — — $ — Granted 384,268 17.40 9.88 192,134 Balance at December 31, 2016 384,268 $ 17.40 9.88 $ 192,134 Outstanding and expected to vest at December 31, 384,268 $ 17.40 9.88 $ 192,134 Exercisable at December 31, 2016 — — — — Unrecognized compensation cost $ 1,884,000 Weighted average remaining recognition period (years) 4.88 |
Schedule of activity in restricted stock awards under the Equity Plan | Outstanding Restricted Weighted Average Restricted stock awards at January 1, 2016 — $ — Granted 153,726 17.40 Restricted stock awards at Decemer 31, 2016 153,726 $ 17.40 Unrecognized compensation cost $ 2,609,000 Weighted average remaining recognition period (years) 4.88 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earning per share | (Dollars in thousands) Year Ended Net Income attributable to common shareholders $ 6,339 Average number of common shares outstanding 9,498,722 Less: unallocated ESOP shares (322,338 ) Average number of common shares outstanding to calculate basic earnings per common share 9,176,384 Effect of dilutive unvested restricted stock and stock option awards — Average number of common shares outstanding to calculate diluted earnings per common share 9,176,384 |
REGULATORY MATTERS (Table)
REGULATORY MATTERS (Table) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital [Abstract] | |
Schedule of actual capital amounts and ratios | Actual Capital For Capital To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to Risk Weighted Assets) $ 107,731 15.88 % $ 54,272 ≥ 8.0 % $ 67,840 ≥ 10.0 % Tier 1 Capital (to Risk Weighted Assets) 97,750 14.41 40,704 ≥ 6.0 54,272 ≥ 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 97,750 14.41 30,528 ≥ 4.5 44,096 ≥ 6.5 Tier 1 Capital (to Average Assets) 97,750 12.59 31,058 ≥ 4.0 38,822 ≥ 5.0 December 31, 2015 Total Capital (to Risk Weighted Assets) $ 104,032 17.06 % $ 48,780 ≥ 8.0 % $ 60,975 ≥ 10.0 % Tier 1 Capital (to Risk Weighted Assets) 95,370 15.64 36,585 ≥ 6.0 48,780 ≥ 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 95,370 15.64 27,439 ≥ 4.5 39,634 ≥ 6.5 Tier 1 Capital (to Average Assets) 95,370 13.42 28,435 ≥ 4.0 35,544 ≥ 5.0 |
COMMITMENTS AND CONTINGENT LI39
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum rental due in future periods | (In thousands) 2017 $ 302 2018 302 2019 293 2020 245 2021 252 Years thereafter 2,110 Total minimum lease payments $ 3,504 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments [Abstract] | |
Schedule of financial instrument with off-balance sheet credit risk | (In thousands) 2016 2015 Commitments to originate loans $ 25,363 $ 15,592 Letters of credit 5,164 5,474 Unadvanced portions of loans 202,032 191,598 $ 232,559 $ 212,664 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments measured at fair value on a recurring basis | Fair Value Measurements at Reporting Date Using (In thousands) Total Quoted Prices in Significant Significant December 31, 2016 State and municipal $ 50,580 $ — $ 50,580 $ — Corporate debt 1,031 — 1,031 — Asset-backed securities 8,678 — 8,678 — Mortgage-backed securities 41,914 — 41,914 — Trust preferred securities 968 — — 968 Marketable equity securities 14,696 14,696 — — Totals $ 117,867 $ 14,696 $ 102,203 $ 968 December 31, 2015 U.S. Government and federal agency $ 2,033 $ — $ 2,033 $ — State and municipal 3,682 — 3,682 — Corporate debt 1,071 — 1,071 — Asset-backed securities 9,624 — 9,624 — Government mortgage-backed securities 52,812 — 52,812 — Trust preferred securities 1,116 — — 1,116 Marketable equity securities 10,646 10,646 — — Totals $ 80,984 $ 10,646 $ 69,222 $ 1,116 |
Schedule of summary of activity for Level 3 financial instruments measured at fair value on a recurring basis | (In thousands) Available for Balance beginning January 1, 2015 $ 1,122 Total gains or (losses) (realized/unrealized) Included in earnings — Included in other comprehensive income 128 Paydowns (134 ) Ending balance, December 31, 2015 $ 1,116 Balance beginning January 1, 2016 $ 1,116 Total gains or (losses) (realized/unrealized) Included in earnings — Included in other comprehensive income (148 ) Paydowns — Ending balance, December 31, 2016 $ 968 |
Schedule of financial instruments measured at fair value on a nonrecurring basis | Fair Value Measurements at Reporting Date Using: (In thousands) Total Quoted Prices in Significant Significant December 31, 2016 Impaired loans $ 815 $ — $ — $ 815 December 31, 2015 Impaired loans $ 606 $ — $ — $ 606 |
Schedule of summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis | (In thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2016 Impaired loans $ 815 Real estate appraisals Discount for dated appraisals 6 – 10 % December 31, 2015 Impaired loans $ 606 Real estate appraisals Discount for dated appraisals 6 – 10 % |
DISCLOSURES ABOUT FAIR VALUES42
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Of Financial Instrument [Abstract] | |
Schedule of carrying amounts and estimated fair values of financial instruments, held or issued for purposes other than trading | Carrying Fair Value (In thousands) Level 1 Level 2 Level 3 Total December 31, 2016 Financial assets: Cash and cash equivalents $ 10,705 $ 10,705 $ — $ — $ 10,705 Available-for-sale securities 117,867 14,696 102,203 968 117,867 Federal Home Loan Bank of Boston stock 2,787 2,787 — — 2,787 Loans, net 624,425 — — 632,278 632,278 Accrued interest receivable 2,320 — 2,320 — 2,320 Financial liabilities: Deposits 627,982 — — 628,060 628,060 Federal Home Loan Bank advances 49,858 — 49,901 — 49,901 December 31, 2015 Financial assets: Cash and cash equivalents $ 20,464 $ 20,464 $ — $ — $ 20,464 Available-for-sale securities 80,984 10,646 69,222 1,116 80,984 Held-to-maturity securities 44,623 — 46,474 — 46,474 Federal Home Loan Bank of Boston stock 3,310 3,310 — — 3,310 Loans, net 554,929 — — 561,937 561,937 Accrued interest receivable 2,251 — 2,251 — 2,251 Financial liabilities: Deposits 577,235 — — 577,316 577,316 Federal Home Loan Bank advances 57,423 — 57,774 — 57,774 |
CONDENSED FINANCIAL STATEMENT43
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of parent only statement of balance sheet | Provident Bancorp, Inc. — Parent Only Balance Sheet (In thousands) 2016 2015 Assets Cash and due from banks $ 5,659 $ 961 Investment in common stock of The Provident Bank 100,426 97,128 Other assets 3,138 3,338 Total assets $ 109,223 $ 101,427 Liabilities and Shareholders’ Equity Accrued expenses $ 73 $ 21 Shareholders’ equity 109,150 101,406 Total liabilities and shareholders’ equity $ 109,223 $ 101,427 |
Schedule of parent only income statement | Provident Bancorp, Inc. — Parent Only Income Statement Year Ended (In thousands) 2016 2015 Total income $ 4,549 $ 54 Operating expenses 95 9 Income before income taxes and equity in undistributed net income of The Provident Bank 4,454 45 Applicable income tax provision 8 — Income before equity in income of subsidiaries 4,446 — Equity in undistributed net income of The Provident Bank 1,893 3,778 Net income $ 6,339 $ 3,823 |
Schedule of parent only statement of cash flows | Provident Bancorp, Inc. — Parent Only Statement of Cash Flows Twelve Months Ended (In thousands) 2016 2015 Cash flows from operating activities: Net income $ 6,339 $ 3,823 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsidiaries (1,893 ) (3,778 ) Contribution of stock to charitable foundation — 1,900 Decrease (increase) in other assets 200 (3,338 ) Increase (decrease) in other liabilities 52 (22 ) Net cash provided by (used in) operating activities 4,698 (1,415 ) Cash flows from investing activities: Investment in The Provident Bank — (18,078 ) Net cash used in investing activities — (18,078 ) Cash flows from financing activities: Proceeds from sale of common stock, net — 37,625 Redemption of SBLF preferred stock — (17,145 ) Preferred stock dividends — (167 ) Net cash provided by (used) in financing activities — 20,313 Net increase in cash and cash equivalents 4,698 820 Cash and cash equivalents at beginning of year 961 141 Cash and cash equivalents at end of year $ 5,659 $ 961 |
SELECTED QUARTERLY FINANCIAL 44
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands) 2016 2015 2016 2015 2016 2015 2016 2015 Interest and dividend income $ 6,980 $ 6,074 $ 7,026 $ 6,252 $ 7,426 $ 6,448 $ 7,462 $ 6,678 Interest expense 697 547 681 550 713 567 694 510 Net interest and dividend income 6,283 5,527 6,345 5,702 6,713 5,881 6,768 6,168 Provision for loan losses 111 278 210 193 163 174 219 160 Gain on sale of securities, net 20 81 17 21 438 215 215 — Other income 915 743 950 838 925 945 955 963 Total noninterest income 935 824 967 859 1,363 1,160 1,170 963 Total noninterest expense 4,924 4,667 5,080 4,680 5,212 6,871 5,261 4,875 Income tax expense (benefit) 696 393 659 459 940 (134 ) 730 645 Net income $ 1,487 $ 1,013 $ 1,363 $ 1,229 $ 1,761 $ 130 $ 1,728 $ 1,451 Income (loss) per share: Basic $ 0.16 N/A $ 0.15 N/A $ 0.19 N/A $ 0.19 N/A Diluted $ 0.16 N/A $ 0.15 N/A $ 0.19 N/A $ 0.19 N/A Weighted Average Shares: Basic 9,167,364 N/A 9,173,317 N/A 9,179,269 N/A 9,185,285 N/A Diluted 9,167,364 N/A 9,173,317 N/A 9,179,269 N/A 9,185,285 N/A |
NATURE OF OPERATIONS (Detail Te
NATURE OF OPERATIONS (Detail Textuals) - USD ($) | Jul. 15, 2015 | Dec. 31, 2015 |
Nature Of Operations [Line Items] | ||
Number of shares issued | 4,274,425 | 4,274,425 |
Common stock issue to public per share (In dollars per share) | $ 10 | |
Purchase of shares of common stock by the ESOP | 357,152 | |
Issuance of shares in the initial public offering, expenses | $ 1,500,000 | $ 1,547,000 |
Provident Bank Employee Stock Ownership Plan | ||
Nature Of Operations [Line Items] | ||
Purchase of shares of common stock by the ESOP | 357,152 | |
Provident Bancorp Inc | ||
Nature Of Operations [Line Items] | ||
Number of shares issued | 5,034,323 | |
Provident Community Charitable Organization, Inc. | ||
Nature Of Operations [Line Items] | ||
Number of shares issued | 189,974 |
ACCOUNTING POLICIES (Detail Tex
ACCOUNTING POLICIES (Detail Textuals) | 12 Months Ended |
Dec. 31, 2016$ / shares | |
Accounting Policies [Abstract] | |
Par value of stock bought from and sold to the federal home loan bank (in dollars per share) | $ 100 |
INVESTMENTS IN SECURITIES - Amo
INVESTMENTS IN SECURITIES - Amortized cost of investment securities classified as available-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | $ 113,663 | $ 78,249 |
Gross Unrealized Gains | 5,298 | 3,756 |
Gross Unrealized Losses | 1,094 | 1,021 |
Fair Value | 117,867 | 80,984 |
U.S. Government and federal agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 1,996 | |
Gross Unrealized Gains | 37 | |
Gross Unrealized Losses | ||
Fair Value | 2,033 | |
State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 49,367 | 3,373 |
Gross Unrealized Gains | 1,281 | 309 |
Gross Unrealized Losses | 68 | |
Fair Value | 50,580 | 3,682 |
Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 1,000 | 1,000 |
Gross Unrealized Gains | 31 | 71 |
Gross Unrealized Losses | ||
Fair Value | 1,031 | 1,071 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 8,747 | 9,656 |
Gross Unrealized Gains | 9 | |
Gross Unrealized Losses | 69 | 41 |
Fair Value | 8,678 | 9,624 |
Government mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 41,818 | 52,515 |
Gross Unrealized Gains | 435 | 622 |
Gross Unrealized Losses | 339 | 325 |
Fair Value | 41,914 | 52,812 |
Trust preferred securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 1,368 | 1,368 |
Gross Unrealized Gains | 55 | |
Gross Unrealized Losses | 400 | 307 |
Fair Value | 968 | 1,116 |
Marketable equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 11,492 | 8,638 |
Gross Unrealized Gains | 3,551 | 2,653 |
Gross Unrealized Losses | 218 | 348 |
Fair Value | 14,825 | 10,943 |
Available for sale securities excluded Money market mutual funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 113,792 | 78,546 |
Gross Unrealized Gains | 5,298 | 3,756 |
Gross Unrealized Losses | 1,094 | 1,021 |
Fair Value | 117,996 | 81,281 |
Money market mutual funds included in cash and cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | (129) | (297) |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ (129) | $ (297) |
INVESTMENTS IN SECURITIES - A48
INVESTMENTS IN SECURITIES - Amortized cost of investment securities classified as held-to-maturity (Details 1) $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |
Fair Value | $ 46,474 |
State and municipal | |
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized Cost Basis | 44,623 |
Gross Unrealized Gains | 1,905 |
Gross Unrealized Losses | $ 54 |
INVESTMENTS IN SECURITIES - Mat
INVESTMENTS IN SECURITIES - Maturities of debt securities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-Sale Fair Value | ||
Fair Value | $ 117,867 | $ 80,984 |
Available-for-Sale | ||
Available-for-Sale Fair Value | ||
Due within one year | 1,813 | |
Due after one year through five years | 2,326 | |
Due after five years through ten years | 7,810 | |
Due after ten years | 40,630 | |
Government mortgage-backed securities | 41,914 | |
Asset-backed securities | 8,678 | |
Fair Value | $ 103,171 |
INVESTMENTS IN SECURITIES - Agg
INVESTMENTS IN SECURITIES - Aggregate fair value and unrealized losses of securities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | $ 37,353 | $ 30,956 |
Unrealized Loss, Less than 12 Months | 492 | 289 |
Fair Value, 12 Months or Longer | 5,214 | 13,436 |
Unrealized Loss, 12 Months or Longer | 602 | 786 |
Fair Value, Total | 42,567 | 44,392 |
Unrealized Loss, Total | 1,094 | 1,075 |
State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | 6,413 | 3,195 |
Unrealized Loss, Less than 12 Months | 63 | 28 |
Fair Value, 12 Months or Longer | 160 | 729 |
Unrealized Loss, 12 Months or Longer | 5 | 26 |
Fair Value, Total | 6,573 | 3,924 |
Unrealized Loss, Total | 68 | 54 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | 8,104 | 5,062 |
Unrealized Loss, Less than 12 Months | 60 | 7 |
Fair Value, 12 Months or Longer | 574 | 2,005 |
Unrealized Loss, 12 Months or Longer | 9 | 34 |
Fair Value, Total | 8,678 | 7,067 |
Unrealized Loss, Total | 69 | 41 |
Government mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | 20,868 | 21,108 |
Unrealized Loss, Less than 12 Months | 247 | 88 |
Fair Value, 12 Months or Longer | 2,770 | 9,156 |
Unrealized Loss, 12 Months or Longer | 92 | 237 |
Fair Value, Total | 23,638 | 30,264 |
Unrealized Loss, Total | 339 | 325 |
Trust preferred securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | 26 | |
Unrealized Loss, Less than 12 Months | 18 | |
Fair Value, 12 Months or Longer | 942 | 1,017 |
Unrealized Loss, 12 Months or Longer | 382 | 307 |
Fair Value, Total | 968 | 1,017 |
Unrealized Loss, Total | 400 | 307 |
Marketable equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | 1,942 | 1,591 |
Unrealized Loss, Less than 12 Months | 104 | 166 |
Fair Value, 12 Months or Longer | 768 | 529 |
Unrealized Loss, 12 Months or Longer | 114 | 182 |
Fair Value, Total | 2,710 | 2,120 |
Unrealized Loss, Total | $ 218 | $ 348 |
INVESTMENTS IN SECURITIES - Act
INVESTMENTS IN SECURITIES - Activity related to credit component recognized in earnings (Details 4) - Trust preferred securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance | $ 688 | $ 688 |
Additions for the credit component on debt securities in which an other-than-temporary impairment was previously recognized | ||
Balance | $ 688 | $ 688 |
INVESTMENTS IN SECURITIES (Deta
INVESTMENTS IN SECURITIES (Detail Textuals) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Held-to-maturity securities transferred to available-for-sale | $ 44,200,000 | $ 44,240,000 | |
Net security gains on portfolio, net of tax | $ 1,300,000 | 1,421,000 | |
Gross realized gains on sales, calls and donated securities | 693,000 | $ 328,000 | |
Gross losses realized | $ 3,000 | 11,000 | |
Percentage of securities exceeded aggregate carrying amount | 10.00% | ||
Securities pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank | $ 60,600,000 | $ 61,700,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans | $ 633,442 | $ 563,211 | |
Allowance for loan losses | (8,590) | (7,905) | $ (7,224) |
Deferred loan fees, net | (427) | (377) | |
Net loans | 624,425 | 554,929 | |
Real estate | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans | 336,102 | 285,356 | |
Allowance for loan losses | (4,503) | (3,827) | (3,500) |
Real estate | Residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans | 76,850 | 92,392 | |
Allowance for loan losses | (328) | (412) | (560) |
Real estate | Construction and land development | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans | 48,161 | 71,535 | |
Allowance for loan losses | (882) | (1,236) | (872) |
Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans | 166,157 | 112,073 | |
Allowance for loan losses | (2,513) | (2,138) | (1,751) |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans | 6,172 | 1,855 | |
Allowance for loan losses | $ (279) | $ (119) | $ (184) |
LOANS - Information regarding a
LOANS - Information regarding allowance for loans and impaired loans by portfolio segment (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | $ 7,905 | $ 7,224 | $ 7,905 | $ 7,224 | ||||||
Charge-offs | (44) | (161) | ||||||||
Recoveries | 26 | 37 | ||||||||
Provision (benefit) | $ 219 | $ 163 | $ 210 | 111 | $ 160 | $ 174 | $ 193 | 278 | 703 | 805 |
Total allowance for loan losses ending balance | 8,590 | 7,905 | 8,590 | 7,905 | ||||||
Ending balance: | ||||||||||
Individually evaluated for impairment | 46 | 488 | 46 | 488 | ||||||
Collectively evaluated for impairment | 8,544 | 7,417 | 8,544 | 7,417 | ||||||
Total allowance for loan losses ending balance | 8,590 | 7,905 | 8,590 | 7,905 | ||||||
Loans: | ||||||||||
Individually evaluated for impairment | 4,038 | 5,464 | 4,038 | 5,464 | ||||||
Collectively evaluated for impairment | 629,404 | 557,747 | 629,404 | 557,747 | ||||||
Total loans ending balance | 633,442 | 563,211 | 633,442 | 563,211 | ||||||
Real estate | Commercial | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 3,827 | 3,500 | 3,827 | 3,500 | ||||||
Charge-offs | ||||||||||
Recoveries | ||||||||||
Provision (benefit) | 676 | 327 | ||||||||
Total allowance for loan losses ending balance | 4,503 | 3,827 | 4,503 | 3,827 | ||||||
Ending balance: | ||||||||||
Individually evaluated for impairment | ||||||||||
Collectively evaluated for impairment | 4,503 | 3,827 | 4,503 | 3,827 | ||||||
Total allowance for loan losses ending balance | 4,503 | 3,827 | 4,503 | 3,827 | ||||||
Loans: | ||||||||||
Individually evaluated for impairment | 1,956 | 3,272 | 1,956 | 3,272 | ||||||
Collectively evaluated for impairment | 334,146 | 282,084 | 334,146 | 282,084 | ||||||
Total loans ending balance | 336,102 | 285,356 | 336,102 | 285,356 | ||||||
Real estate | Residential | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 412 | 560 | 412 | 560 | ||||||
Charge-offs | ||||||||||
Recoveries | 12 | 6 | ||||||||
Provision (benefit) | (96) | (154) | ||||||||
Total allowance for loan losses ending balance | 328 | 412 | 328 | 412 | ||||||
Ending balance: | ||||||||||
Individually evaluated for impairment | ||||||||||
Collectively evaluated for impairment | 328 | 412 | 328 | 412 | ||||||
Total allowance for loan losses ending balance | 328 | 412 | 328 | 412 | ||||||
Loans: | ||||||||||
Individually evaluated for impairment | 422 | 437 | 422 | 437 | ||||||
Collectively evaluated for impairment | 76,428 | 91,955 | 76,428 | 91,955 | ||||||
Total loans ending balance | 76,850 | 92,392 | 76,850 | 92,392 | ||||||
Real estate | Construction and land development | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 1,236 | 872 | 1,236 | 872 | ||||||
Charge-offs | ||||||||||
Recoveries | ||||||||||
Provision (benefit) | (354) | 364 | ||||||||
Total allowance for loan losses ending balance | 882 | 1,236 | 882 | 1,236 | ||||||
Ending balance: | ||||||||||
Individually evaluated for impairment | ||||||||||
Collectively evaluated for impairment | 882 | 1,236 | 882 | 1,236 | ||||||
Total allowance for loan losses ending balance | 882 | 1,236 | 882 | 1,236 | ||||||
Loans: | ||||||||||
Individually evaluated for impairment | ||||||||||
Collectively evaluated for impairment | 48,161 | 71,535 | 48,161 | 71,535 | ||||||
Total loans ending balance | 48,161 | 71,535 | 48,161 | 71,535 | ||||||
Commercial | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 2,138 | 1,751 | 2,138 | 1,751 | ||||||
Charge-offs | (96) | |||||||||
Recoveries | 1 | 20 | ||||||||
Provision (benefit) | 374 | 463 | ||||||||
Total allowance for loan losses ending balance | 2,513 | 2,138 | 2,513 | 2,138 | ||||||
Ending balance: | ||||||||||
Individually evaluated for impairment | 46 | 488 | 46 | 488 | ||||||
Collectively evaluated for impairment | 2,467 | 1,650 | 2,467 | 1,650 | ||||||
Total allowance for loan losses ending balance | 2,513 | 2,138 | 2,513 | 2,138 | ||||||
Loans: | ||||||||||
Individually evaluated for impairment | 1,660 | 1,755 | 1,660 | 1,755 | ||||||
Collectively evaluated for impairment | 164,497 | 110,318 | 164,497 | 110,318 | ||||||
Total loans ending balance | 166,157 | 112,073 | 166,157 | 112,073 | ||||||
Consumer | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 119 | 184 | 119 | 184 | ||||||
Charge-offs | (44) | (65) | ||||||||
Recoveries | 13 | 11 | ||||||||
Provision (benefit) | 191 | (11) | ||||||||
Total allowance for loan losses ending balance | 279 | 119 | 279 | 119 | ||||||
Ending balance: | ||||||||||
Individually evaluated for impairment | ||||||||||
Collectively evaluated for impairment | 279 | 119 | 279 | 119 | ||||||
Total allowance for loan losses ending balance | 279 | 119 | 279 | 119 | ||||||
Loans: | ||||||||||
Individually evaluated for impairment | ||||||||||
Collectively evaluated for impairment | 6,172 | 1,855 | 6,172 | 1,855 | ||||||
Total loans ending balance | 6,172 | 1,855 | 6,172 | 1,855 | ||||||
Unallocated | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | $ 173 | $ 357 | 173 | 357 | ||||||
Charge-offs | ||||||||||
Recoveries | ||||||||||
Provision (benefit) | (88) | (184) | ||||||||
Total allowance for loan losses ending balance | 85 | 173 | 85 | 173 | ||||||
Ending balance: | ||||||||||
Individually evaluated for impairment | ||||||||||
Collectively evaluated for impairment | 85 | 173 | 85 | 173 | ||||||
Total allowance for loan losses ending balance | 85 | 173 | 85 | 173 | ||||||
Loans: | ||||||||||
Individually evaluated for impairment | ||||||||||
Collectively evaluated for impairment | ||||||||||
Total loans ending balance |
LOANS - Nonaccrual loans and pa
LOANS - Nonaccrual loans and past-due loans by portfolio segment (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 375 | $ 670 |
Total Current | 633,067 | 562,541 |
Total Loans | 633,442 | 563,211 |
90 Days or More Past Due and Accruing | ||
Nonaccrual Loans | 1,582 | 2,284 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 29 | 131 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 174 | |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 346 | 365 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 346 | |
Total Current | 335,756 | 285,356 |
Total Loans | 336,102 | 285,356 |
90 Days or More Past Due and Accruing | ||
Nonaccrual Loans | 346 | 106 |
Real estate | Commercial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Real estate | Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Real estate | Commercial | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 346 | |
Real estate | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 668 | |
Total Current | 76,850 | 91,724 |
Total Loans | 76,850 | 92,392 |
90 Days or More Past Due and Accruing | ||
Nonaccrual Loans | 303 | 1,031 |
Real estate | Residential | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 130 | |
Real estate | Residential | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 173 | |
Real estate | Residential | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 365 | |
Real estate | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Total Current | 48,161 | 71,535 |
Total Loans | 48,161 | 71,535 |
90 Days or More Past Due and Accruing | ||
Nonaccrual Loans | ||
Real estate | Construction and land development | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Real estate | Construction and land development | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Real estate | Construction and land development | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 29 | |
Total Current | 166,128 | 112,073 |
Total Loans | 166,157 | 112,073 |
90 Days or More Past Due and Accruing | ||
Nonaccrual Loans | 933 | 1,147 |
Commercial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 29 | |
Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | |
Total Current | 6,172 | 1,853 |
Total Loans | 6,172 | 1,855 |
90 Days or More Past Due and Accruing | ||
Nonaccrual Loans | ||
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | |
Consumer | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due |
LOANS - Impaired loans by portf
LOANS - Impaired loans by portfolio segment (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
With no related allowance recorded: | ||
Recorded Investment | $ 3,177 | $ 4,370 |
Unpaid Principal Balance | 3,177 | 4,370 |
Average Recorded Investment | 3,967 | 4,722 |
Interest Income Recognized | 250 | 186 |
With an allowance recorded: | ||
Recorded Investment | 861 | 1,094 |
Unpaid Principal Balance | 861 | 1,094 |
Related Allowance | 46 | 488 |
Average Recorded Investment | 886 | 901 |
Interest Income Recognized | 2 | |
Loans With And Without Specific Valuation Allowance [Abstract] | ||
Recorded Investment | 4,038 | 5,464 |
Unpaid Principal Balance | 4,038 | 5,464 |
Related Allowance | 46 | 488 |
Average Recorded Investment | 4,853 | 5,623 |
Interest Income Recognized | 250 | 188 |
Real estate | Commercial | ||
With no related allowance recorded: | ||
Recorded Investment | 1,956 | 3,272 |
Unpaid Principal Balance | 1,956 | 3,272 |
Average Recorded Investment | 2,744 | 3,788 |
Interest Income Recognized | 188 | 149 |
With an allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Loans With And Without Specific Valuation Allowance [Abstract] | ||
Recorded Investment | 1,956 | 3,272 |
Unpaid Principal Balance | 1,956 | 3,272 |
Related Allowance | ||
Average Recorded Investment | 2,744 | 3,788 |
Interest Income Recognized | 188 | 149 |
Real estate | Residential | ||
With no related allowance recorded: | ||
Recorded Investment | 422 | 437 |
Unpaid Principal Balance | 422 | 437 |
Average Recorded Investment | 429 | 323 |
Interest Income Recognized | 20 | 17 |
With an allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Loans With And Without Specific Valuation Allowance [Abstract] | ||
Recorded Investment | 422 | 437 |
Unpaid Principal Balance | 422 | 437 |
Related Allowance | ||
Average Recorded Investment | 429 | 323 |
Interest Income Recognized | 20 | 17 |
Real estate | Construction and land development | ||
With no related allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
With an allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Loans With And Without Specific Valuation Allowance [Abstract] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Commercial | ||
With no related allowance recorded: | ||
Recorded Investment | 799 | 661 |
Unpaid Principal Balance | 799 | 661 |
Average Recorded Investment | 794 | 611 |
Interest Income Recognized | 42 | 20 |
With an allowance recorded: | ||
Recorded Investment | 861 | 1,094 |
Unpaid Principal Balance | 861 | 1,094 |
Related Allowance | 46 | 488 |
Average Recorded Investment | 886 | 901 |
Interest Income Recognized | 2 | |
Loans With And Without Specific Valuation Allowance [Abstract] | ||
Recorded Investment | 1,660 | 1,755 |
Unpaid Principal Balance | 1,660 | 1,755 |
Related Allowance | 46 | 488 |
Average Recorded Investment | 1,680 | 1,512 |
Interest Income Recognized | 42 | 22 |
Consumer | ||
With no related allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
With an allowance recorded: | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Loans With And Without Specific Valuation Allowance [Abstract] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized |
LOANS - Troubled debt restructu
LOANS - Troubled debt restructurings (Details 4) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Debt | Dec. 31, 2015USD ($)Debt | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Debt | 1 | 12 |
Pre- Modification Outstanding Recorded Investment | $ 58 | $ 2,268 |
Post-Modification Outstanding Recorded Investment | $ 58 | $ 2,268 |
Real estate | Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Debt | 2 | |
Pre- Modification Outstanding Recorded Investment | $ 464 | |
Post-Modification Outstanding Recorded Investment | $ 464 | |
Real estate | Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Debt | 2 | |
Pre- Modification Outstanding Recorded Investment | $ 226 | |
Post-Modification Outstanding Recorded Investment | $ 226 | |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Debt | 1 | 8 |
Pre- Modification Outstanding Recorded Investment | $ 58 | $ 1,578 |
Post-Modification Outstanding Recorded Investment | $ 58 | $ 1,578 |
LOANS - Loans by risk rating an
LOANS - Loans by risk rating and portfolio segment (Details 5) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 633,442 | $ 563,211 |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 525,179 | 443,537 |
Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 6,139 | 17,103 |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 19,831 | 8,743 |
Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 910 | |
Not formally rated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 82,293 | 92,918 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 336,102 | 285,356 |
Real estate | Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 319,712 | 265,325 |
Real estate | Commercial | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 4,471 | 15,700 |
Real estate | Commercial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 11,919 | 4,331 |
Real estate | Commercial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Real estate | Commercial | Not formally rated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Real estate | Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 76,850 | 92,392 |
Real estate | Residential | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Real estate | Residential | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Real estate | Residential | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 729 | 1,329 |
Real estate | Residential | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Real estate | Residential | Not formally rated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 76,121 | 91,063 |
Real estate | Construction and land development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 48,161 | 71,535 |
Real estate | Construction and land development | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 48,161 | 71,535 |
Real estate | Construction and land development | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Real estate | Construction and land development | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Real estate | Construction and land development | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Real estate | Construction and land development | Not formally rated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 166,157 | 112,073 |
Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 157,306 | 106,677 |
Commercial | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 1,668 | 1,403 |
Commercial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 7,183 | 3,083 |
Commercial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 910 | |
Commercial | Not formally rated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 6,172 | 1,855 |
Consumer | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Consumer | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Consumer | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Consumer | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | ||
Consumer | Not formally rated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 6,172 | $ 1,855 |
LOANS (Details Textuals)
LOANS (Details Textuals) | 12 Months Ended | |
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Aggregate principal balance pledged to secure possible borrowings | $ 250,700,000 | $ 245,800,000 |
Due from trustees and executive officers | 7,500,000 | 8,500,000 |
Advances | 271,000 | 6,000 |
Principal payments | $ 1,300,000 | $ 1,200,000 |
Number of troubled debt restructures approved | Loan | 1 | 9 |
Troubled debt restructuring, total | $ 58,000 | |
Re-amortization term of commercial loan | 5 years | |
Unpaid principal balance | $ 4,038,000 | $ 5,464,000 |
Real estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructures with reamortization based on extended term | Loan | 1 | |
Unpaid principal balance | $ 1,956,000 | 3,272,000 |
Real estate | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan modified to interest only payments | Loan | 2 | |
Unpaid principal balance | $ 422,000 | 437,000 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructures with reamortization based on remaining term | Loan | 2 | |
Number of troubled debt restructures loan modified | Loan | 2 | |
Reserve on balance loan | 15.00% | |
Unpaid principal balance | $ 1,660,000 | 1,755,000 |
Commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of troubled debt restructures loan modified | Loan | 2 | |
Reserve on balance loan | 50.00% | |
Mortgage and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 11,200,000 | $ 10,400,000 |
PREMISES AND EQUIPMENT - Summar
PREMISES AND EQUIPMENT - Summary of premises and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 20,398 | $ 19,967 |
Accumulated depreciation and amortization | (8,811) | (8,361) |
Premises and equipment, net | 11,587 | 11,606 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,424 | 2,424 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 9,241 | 9,191 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,499 | 4,190 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,234 | 2,911 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,251 |
PREMISES AND EQUIPMENT (Detail
PREMISES AND EQUIPMENT (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 832 | $ 713 |
DEPOSITS - Summary of deposit b
DEPOSITS - Summary of deposit balances by type (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
NOW and demand | $ 280,773 | $ 238,462 |
Regular savings | 111,016 | 106,208 |
Money market deposits | 145,321 | 108,377 |
Total non-certificate accounts | 537,110 | 453,047 |
Term certificates of $100,000 or more | 20,227 | 36,941 |
Term certificates less than $100,000 | 70,645 | 87,247 |
Total certificate accounts | 90,872 | 124,188 |
Total deposits | $ 627,982 | $ 577,235 |
DEPOSITS - Scheduled maturities
DEPOSITS - Scheduled maturities for time deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
2,016 | $ 81,116 | |
2,017 | $ 69,775 | 27,746 |
2,018 | 17,230 | 12,737 |
2,019 | 1,414 | 679 |
2,020 | 1,663 | 1,910 |
2,021 | 790 | |
Total certificate accounts | $ 90,872 | $ 124,188 |
DEPOSITS (Detail Textuals)
DEPOSITS (Detail Textuals) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Time deposits, $250,000 or more | $ 3.4 | $ 3.4 |
Brokered time deposits | 49.3 | 63.8 |
Brokered time deposits, less than $100,000 | 49.3 | 63.4 |
Deposits from related parties held | $ 3.6 | $ 3.1 |
FEDERAL HOME LOAN BANK ADVANC65
FEDERAL HOME LOAN BANK ADVANCES - Maturities of advances from FHLB (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Advances from Federal Home Loan Banks [Abstract] | ||
2,016 | $ 49,112 | |
2,017 | $ 35,000 | 5,000 |
2,018 | 5,000 | |
2,020 | 6,358 | 3,311 |
2,021 | ||
Thereafter | 3,500 | |
Total | $ 49,858 | $ 57,423 |
FEDERAL HOME LOAN BANK ADVANC66
FEDERAL HOME LOAN BANK ADVANCES (Detail Textuals) - Federal Home Loan Bank Advances - USD ($) | Dec. 31, 2016 | Aug. 31, 2015 |
Federal Home Loan Bank, Advances [Line Items] | ||
Modified FHLB borrowings | $ 3,500,000 | |
Prepayment penalty | $ 233,000 | |
Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rates on FHLB advances ranged from | 0.72% | |
Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rates on FHLB advances ranged from | 3.99% | |
Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rates on FHLB advances ranged from | 1.36% |
INCOME TAXES - Components of in
INCOME TAXES - Components of income tax expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax expense (benefit): | ||||||||||
Federal | $ 2,780 | $ 2,066 | ||||||||
State | 653 | 277 | ||||||||
Net operating loss carryforward | (14) | (14) | ||||||||
Current tax expense (benefit), total | 3,419 | 2,329 | ||||||||
Deferred tax expense (benefit): | ||||||||||
Federal | (302) | (745) | ||||||||
State | (92) | (221) | ||||||||
Deferred tax expense (benefit), total | (394) | (966) | ||||||||
Net income tax expense | $ 730 | $ 940 | $ 659 | $ 696 | $ 645 | $ (134) | $ 459 | $ 393 | $ 3,025 | $ 1,363 |
INCOME TAXES - Differences betw
INCOME TAXES - Differences between statutory federal income tax rate and effective tax rates (Details 1) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax at statutory rate | 34.00% | 34.00% |
Increase (decrease) in tax resulting from: | ||
State tax, net of federal tax benefit | 4.60% | 3.50% |
Tax exempt income and dividends received deduction | (4.80%) | (9.50%) |
Gain on donated securities | (0.10%) | (1.60%) |
Other | (1.40%) | (0.10%) |
Effective tax rate | 32.30% | 26.30% |
INCOME TAXES - Gross deferred t
INCOME TAXES - Gross deferred tax assets and gross deferred tax liabilities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,431 | $ 3,157 |
Net operating loss carryforward | 54 | 69 |
Employee benefit plans and share-based compensation plans | 2,406 | 1,940 |
Deferred loan fees, net | 174 | 154 |
Writedown of securities | 235 | 242 |
Reserve for unfunded commitments | 54 | 68 |
Charitable contribution carryover | 297 | 597 |
Other | 56 | 16 |
Gross deferred tax assets | 6,707 | 6,243 |
Deferred tax liabilities: | ||
Depreciation | (145) | (57) |
FHLB restructure fees | (67) | (85) |
Net unrealized holding gain on securities | (1,582) | (1,045) |
Gross deferred tax liabilities | (1,794) | (1,187) |
Net deferred tax asset | $ 4,913 | $ 5,056 |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Federal net operating loss carryovers | $ 160,000 |
Annual operating loss carryforwards | $ 42,000 |
EMPLOYEE BENEFITS & SHARE-BAS71
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS - Shares held by ESOP (Details) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Shares held by the ESOP include the following: | ||
Allocated | 23,810 | |
Committed to be allocated | 23,810 | 23,810 |
Unallocated | 309,532 | 333,342 |
Total | 357,152 | 357,152 |
EMPLOYEE BENEFITS & SHARE-BAS72
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Details 1) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Date of Grant | Nov. 17, 2016 |
Options granted | shares | 384,268 |
Vesting period (years) | 5 years |
Expiration date | Nov. 17, 2016 |
Expected volatility | 20.80% |
Expected life (years) | 7 years 6 months |
Expected dividend yield | 0.00% |
Risk free interest rate | 2.12% |
Fair value per option | $ / shares | $ 5.03 |
EMPLOYEE BENEFITS & SHARE-BAS73
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Details 2) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Stock Option Awards | |
Granted | shares | 384,268 |
Stock option | |
Stock Option Awards | |
Balance at January 1, 2016 | shares | |
Granted | shares | 384,268 |
Balance at December 31, 2016 | shares | 384,268 |
Outstanding and expected to vest at December 31, 2016 | shares | 384,268 |
Exercisable at December 31, 2016 | shares | |
Unrecognized compensation cost | $ | $ 1,884,000 |
Weighted average remaining recognition period (years) | 4 years 10 months 17 days |
Weighted Average Exercise Price | |
Balance at January 1, 2016 | $ / shares | |
Granted | $ / shares | 17.40 |
Balance at December 31, 2016 | $ / shares | 17.40 |
Outstanding and expected to vest at December 31, 2016 | $ / shares | 17.40 |
Exercisable at December 31, 2016 | $ / shares | |
Weighted Average Remaining Contractual Term (years) | |
Granted | 9 years 10 months 17 days |
Balance at December 31, 2016 | 9 years 10 months 17 days |
Outstanding and expected to vest at December 31, 2016 | 9 years 10 months 17 days |
Aggregate Intrinsic Value | |
Balance at January 1, 2016 | $ | |
Granted | $ | 192,134 |
Balance at December 31, 2016 | $ | 192,134 |
Outstanding and expected to vest at December 31, 2016 | $ | 192,134 |
Exercisable at December 31, 2016 | $ |
EMPLOYEE BENEFITS & SHARE-BAS74
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Details 3) - Restricted stock $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Restricted stock awards at January 1, 2016 | shares | |
Granted | shares | 153,726 |
Restricted stock awards at Decemer 31, 2016 | shares | 153,726 |
Unrecognized compensation cost | $ | $ 2,609,000 |
Weighted average remaining recognition period (years) | 4 years 10 months 17 days |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Restricted stock awards at January 1, 2016 | $ / shares | |
Granted | $ / shares | 17.40 |
Restricted stock awards at Decemer 31, 2016 | $ / shares | $ 17.40 |
EMPLOYEE BENEFITS & SHARE-BAS75
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Vesting period (years) | 5 years | |
Options expiration period | 10 years | |
Number of shares purchased | 357,152 | 357,152 |
Number of shares committed to be released per year through 2029 | 23,810 | |
Share price | $ 10 | |
Restricted stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Shares reserved for future issuance | 178,575 | |
Share based compensation expenses | $ 66,000 | |
Stock option | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Shares reserved for future issuance | 446,440 | |
Share based compensation expenses | $ 47,000 | |
Supplemental Executive Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Liability for retirement benefits | 4,400,000 | $ 3,500,000 |
Expense recognized for benefits | 947,000 | 895,000 |
Long-Term Incentive Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Liability for retirement benefits | 1,400,000 | 1,300,000 |
Expense recognized for benefits | $ 485,000 | $ 480,000 |
401(k) Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer matching contribution, percent of match | 100.00% | |
Employee contributions | 6.00% | |
Percent of Employees' Gross Pay contribution | 75.00% | |
Expense recognized | $ 401,000 | |
Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of shares purchased | 357,152 | |
ESOP payable term | 15 years | |
ESOP prime rate percentage | 3.75% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||||||
Net Income attributable to common shareholders | $ 6,339 | $ 3,656 | ||||
Average number of common shares outstanding | 9,498,722 | |||||
Less: unallocated ESOP shares | (322,338) | |||||
Average number of common shares outstanding to calculate basic earnings per common share | 9,185,285 | 9,179,269 | 9,173,317 | 9,167,364 | 9,176,384 | |
Effect of dilutive unvested restricted stock and stock option awards | ||||||
Average number of common shares outstanding to calculate diluted earnings per common share | 9,185,285 | 9,179,269 | 9,173,317 | 9,167,364 | 9,176,384 |
EARNINGS PER SHARE (Detail Text
EARNINGS PER SHARE (Detail Textuals) | 12 Months Ended |
Dec. 31, 2016shares | |
Earnings Per Share [Abstract] | |
Antidilutive shares excluded from the earnings per share calculation | 537,994 |
REGULATORY MATTERS - Bank's act
REGULATORY MATTERS - Bank's actual capital amounts and ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 107,731 | $ 104,032 |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 15.88% | 17.06% |
Total Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 54,272 | $ 48,780 |
Total Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 67,840 | $ 60,975 |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 97,750 | $ 95,370 |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 14.41% | 15.64% |
Tier I Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 40,704 | $ 36,585 |
Tier I Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier I Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 54,272 | $ 48,780 |
Tier I Capital to Risk-Weighted AssetsTo be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 97,750 | $ 95,370 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Ratio | 14.41% | 15.64% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 30,528 | $ 27,439 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 44,096 | $ 39,634 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier I Capital to Average Assets, Actual Capital, Amount | $ 97,750 | $ 95,370 |
Tier I Capital to Average Assets, Actual Capital, Ratio | 12.59% | 13.42% |
Tier I Capital to Average Assets, For Capital Adequacy Purposes, Amount | $ 31,058 | $ 28,435 |
Tier I Capital to Average Assets, For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 38,822 | $ 35,544 |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
REGULATORY MATTERS (Detail Text
REGULATORY MATTERS (Detail Textuals) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Banking and Thrift [Abstract] | ||
Common equity Tier 1 ("CETI") capital ratio | 4.50% | 4.50% |
Minimum Tier 1 capital to risk-weighted assets ratio | 6.00% | 6.00% |
Minimum total capital to risk-weighted assets ratio | 8.00% | 8.00% |
Minimum Tier 1 leverage ratio | 4.00% | 4.00% |
CETI capital ratio | 6.50% | 6.50% |
Tier 1 ratio | 8.00% | 8.00% |
Total risk based capital ratio | 10.00% | 10.00% |
Tier 1 leverage ratio | 5.00% | 5.00% |
Capital conservation buffer above required capital ratios in beginning January 1, 2016 | 0.625% | |
Capital conservation buffer fully phased | 2.50% | |
90 days past due or on non-accrual status | 150.00% | 100.00% |
Non cancellable credit conversion factor for unused portion of commitments | 20.00% | 0.00% |
Risk weight for mortgage servicing rights and deferred tax assets | 250.00% | 100.00% |
Risk weight for equity exposures | 600.00% | 0.00% |
COMMITMENTS AND CONTINGENT LI80
COMMITMENTS AND CONTINGENT LIABILITIES - Total minimum rental due in future periods (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 302 |
2,018 | 302 |
2,019 | 293 |
2,020 | 245 |
2,021 | 252 |
Years thereafter | 2,110 |
Total minimum lease payments | $ 3,504 |
COMMITMENTS AND CONTINGENT LI81
COMMITMENTS AND CONTINGENT LIABILITIES (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expense | $ 322,000 | $ 279,000 |
FINANCIAL INSTRUMENTS - Notiona
FINANCIAL INSTRUMENTS - Notional amounts of financial instrument with off-balance sheet credit risk (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | $ 232,559 | $ 212,664 |
Commitments to originate loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | 25,363 | 15,592 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | 5,164 | 5,474 |
Unadvanced portions of loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | $ 202,032 | $ 191,598 |
FINANCIAL INSTRUMENTS (Detail T
FINANCIAL INSTRUMENTS (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financial and standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Maximum potential amount of obligation | $ 5.2 | $ 5.5 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial instruments measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | $ 117,867 | $ 80,984 |
U.S. Government and federal agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 2,033 | |
State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 50,580 | 3,682 |
Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 1,031 | 1,071 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 8,678 | 9,624 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 41,914 | 52,812 |
Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 968 | 1,116 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 14,696 | 10,646 |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 102,203 | 69,222 |
Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 968 | 1,116 |
Recurring basis | U.S. Government and federal agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 2,033 | |
Recurring basis | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 50,580 | 3,682 |
Recurring basis | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 1,031 | 1,071 |
Recurring basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 8,678 | 9,624 |
Recurring basis | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 41,914 | 52,812 |
Recurring basis | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 968 | 1,116 |
Recurring basis | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 14,696 | 10,646 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 14,696 | 10,646 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | U.S. Government and federal agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 14,696 | 10,646 |
Recurring basis | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 102,203 | 69,222 |
Recurring basis | Significant Other Observable Inputs Level 2 | U.S. Government and federal agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 2,033 | |
Recurring basis | Significant Other Observable Inputs Level 2 | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 50,580 | 3,682 |
Recurring basis | Significant Other Observable Inputs Level 2 | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 1,031 | 1,071 |
Recurring basis | Significant Other Observable Inputs Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 8,678 | 9,624 |
Recurring basis | Significant Other Observable Inputs Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 41,914 | 52,812 |
Recurring basis | Significant Other Observable Inputs Level 2 | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Significant Other Observable Inputs Level 2 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 968 | 1,116 |
Recurring basis | Significant Unobservable Inputs Level 3 | U.S. Government and federal agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Significant Unobservable Inputs Level 3 | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 968 | 1,116 |
Recurring basis | Significant Unobservable Inputs Level 3 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals |
FAIR VALUE MEASUREMENTS - Activ
FAIR VALUE MEASUREMENTS - Activity for Level 3 financial instruments measured at fair value on recurring basis (Details 1) - Recurring basis - Fair Value Level 3 - Available-for-Sale Securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance beginning | $ 1,116 | $ 1,122 |
Total gains or (losses) (realized/unrealized) | ||
Included in earnings | ||
Included in other comprehensive income | (148) | 128 |
Paydowns | (134) | |
Ending balance | $ 968 | $ 1,116 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values of Financial Instruments Measured on Nonrecurring Basis (Details 2) - Nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 815 | $ 606 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 815 | $ 606 |
FAIR VALUE MEASUREMENTS - Valua
FAIR VALUE MEASUREMENTS - Valuation methodology and unobservable inputs for Level 3 assets (Details 3) - Nonrecurring basis - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans, Fair Value | $ 815 | $ 606 |
Fair Value Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans, Fair Value | $ 815 | $ 606 |
Valuation Technique | Real estate appraisals | Real estate appraisals |
Unobservable Input | Discount for dated appraisals | Discount for dated appraisals |
Minimum | Fair Value Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 6.00% | 6.00% |
Maximum | Fair Value Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 10.00% | 10.00% |
DISCLOSURES ABOUT FAIR VALUES88
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS - Carrying amounts and estimated fair values (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | |||
Cash and cash equivalents | $ 10,705 | $ 20,464 | $ 9,558 |
Available-for-sale securities | 117,867 | 80,984 | |
Held-to-maturity securities | 46,474 | ||
Federal Home Loan Bank of Boston stock | 2,787 | 3,310 | |
Loans, net | 632,278 | 561,937 | |
Accrued interest receivable | 2,320 | 2,251 | |
Financial liabilities: | |||
Deposits | 628,060 | 577,316 | |
Federal Home Loan Bank advances | 49,901 | 57,774 | |
Fair Value Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 10,705 | 20,464 | |
Available-for-sale securities | 14,696 | 10,646 | |
Held-to-maturity securities | |||
Federal Home Loan Bank of Boston stock | 2,787 | 3,310 | |
Loans, net | |||
Accrued interest receivable | |||
Financial liabilities: | |||
Deposits | |||
Federal Home Loan Bank advances | |||
Fair Value Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | |||
Available-for-sale securities | 102,203 | 69,222 | |
Held-to-maturity securities | 46,474 | ||
Federal Home Loan Bank of Boston stock | |||
Loans, net | |||
Accrued interest receivable | 2,320 | 2,251 | |
Financial liabilities: | |||
Deposits | |||
Federal Home Loan Bank advances | 49,901 | 57,774 | |
Fair Value Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | |||
Available-for-sale securities | 968 | 1,116 | |
Held-to-maturity securities | |||
Federal Home Loan Bank of Boston stock | |||
Loans, net | 632,278 | 561,937 | |
Accrued interest receivable | |||
Financial liabilities: | |||
Deposits | 628,060 | 577,316 | |
Federal Home Loan Bank advances | |||
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 10,705 | 20,464 | |
Available-for-sale securities | 117,867 | 80,984 | |
Held-to-maturity securities | 44,623 | ||
Federal Home Loan Bank of Boston stock | 2,787 | 3,310 | |
Loans, net | 624,425 | 554,929 | |
Accrued interest receivable | 2,320 | 2,251 | |
Financial liabilities: | |||
Deposits | 627,982 | 577,235 | |
Federal Home Loan Bank advances | $ 49,858 | $ 57,423 |
SMALL BUSINESS LENDING FUND (De
SMALL BUSINESS LENDING FUND (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 13, 2011 | |
Small Business Lending Fund [Abstract] | |||
Treasury stock, shares | 17,145 | ||
Series A Preferred Stock, liquidation per preferred share | $ 1,000 | ||
Lending rate, Description | The initial rate payable on SBLF capital is, at most, five percent, and the rate falls to one percent if a bank's small business lending increases by ten percent or more. Banks that increase their lending by less than ten percent pay rates between two percent and four percent. If a bank's lending does not increase in the first two years, however, the rate increases to seven percent, and after 4.5 years total, the rate for all banks increases to nine percent (if the bank has not already repaid the SBLF funding). | ||
Dividend rate on SBLF capital | 1.00% | ||
SBLF dividends paid | $ 167 | ||
Redemption of SBLF preferred stock, shares | 17,145 | ||
Redemption of SBLF preferred stock | $ 17,145 |
CONDENSED FINANCIAL STATEMENT90
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY - Parent Only Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | |||
Cash and due from banks | $ 7,939 | $ 7,302 | |
Other assets | 1,544 | 1,381 | |
Total assets | 795,543 | 743,397 | |
Liabilities and Shareholders' Equity | |||
Shareholders' equity | 109,149 | 101,406 | $ 75,791 |
Total liabilities and shareholders' equity | 795,543 | 743,397 | |
Provident Bancorp, Inc. | |||
Assets | |||
Cash and due from banks | 5,659 | 961 | |
Investment in common stock of The Provident Bank | 100,426 | 97,128 | |
Other assets | 3,138 | 3,338 | |
Total assets | 109,223 | 101,427 | |
Liabilities and Shareholders' Equity | |||
Accrued expenses | 73 | 21 | |
Shareholders' equity | 109,150 | 101,406 | |
Total liabilities and shareholders' equity | $ 109,223 | $ 101,427 |
CONDENSED FINANCIAL STATEMENT91
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY - Parent Only Income Statement (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Income Statements, Captions [Line Items] | ||||||||||
Total income | $ 33 | $ 38 | ||||||||
Applicable income tax provision | $ 730 | $ 940 | $ 659 | $ 696 | $ 645 | $ (134) | $ 459 | $ 393 | 3,025 | 1,363 |
Net income | $ 1,728 | $ 1,761 | $ 1,363 | $ 1,487 | $ 1,451 | $ 130 | $ 1,229 | $ 1,013 | 6,339 | 3,823 |
Provident Bancorp, Inc. | ||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||
Total income | 4,549 | 54 | ||||||||
Operating expenses | 95 | 9 | ||||||||
Income before income taxes and equity in undistributed net income of The Provident Bank | 4,454 | 45 | ||||||||
Applicable income tax provision | 8 | |||||||||
Income before equity in income of subsidiaries | 4,446 | |||||||||
Equity in undistributed net income of The Provident Bank | 1,893 | 3,778 | ||||||||
Net income | $ 6,339 | $ 3,823 |
CONDENSED FINANCIAL STATEMENT92
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY - Parent Only Statement of Cash Flows (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||||||||||
Net income | $ 1,728 | $ 1,761 | $ 1,363 | $ 1,487 | $ 1,451 | $ 130 | $ 1,229 | $ 1,013 | $ 6,339 | $ 3,823 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||
Contribution of stock to charitable foundation | 1,900 | |||||||||
Decrease (increase) in other assets | 110 | 230 | ||||||||
Increase (decrease) in other liabilities | 1,221 | 439 | ||||||||
Net cash provided by (used in) operating activities | 8,608 | 6,819 | ||||||||
Cash flows from investing activities: | ||||||||||
Net cash used in investing activities | (61,549) | (74,963) | ||||||||
Cash flows from financing activities: | ||||||||||
Proceeds from sale of common stock, net | 41,197 | |||||||||
Redemption of SBLF preferred stock | (17,145) | |||||||||
Preferred stock dividends | (167) | |||||||||
Net cash provided by (used) in financing activities | 43,182 | 79,050 | ||||||||
Net increase in cash and cash equivalents | (9,759) | 10,906 | ||||||||
Cash and cash equivalents at beginning of year | 20,464 | 9,558 | 20,464 | 9,558 | ||||||
Cash and cash equivalents at end of year | 10,705 | 20,464 | 10,705 | 20,464 | ||||||
Provident Bancorp, Inc. | ||||||||||
Cash flows from operating activities: | ||||||||||
Net income | 6,339 | 3,823 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||
Equity in undistributed earnings of subsidiaries | (1,893) | (3,778) | ||||||||
Contribution of stock to charitable foundation | 1,900 | |||||||||
Decrease (increase) in other assets | 200 | (3,338) | ||||||||
Increase (decrease) in other liabilities | 52 | (22) | ||||||||
Net cash provided by (used in) operating activities | 4,698 | (1,415) | ||||||||
Cash flows from investing activities: | ||||||||||
Investment in The Provident Bank | (18,078) | |||||||||
Net cash used in investing activities | (18,078) | |||||||||
Cash flows from financing activities: | ||||||||||
Proceeds from sale of common stock, net | 37,625 | |||||||||
Redemption of SBLF preferred stock | (17,145) | |||||||||
Preferred stock dividends | (167) | |||||||||
Net cash provided by (used) in financing activities | 20,313 | |||||||||
Net increase in cash and cash equivalents | 4,698 | 820 | ||||||||
Cash and cash equivalents at beginning of year | $ 961 | $ 141 | 961 | 141 | ||||||
Cash and cash equivalents at end of year | $ 5,659 | $ 961 | $ 5,659 | $ 961 |
SELECTED QUARTERLY FINANCIAL 93
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Interest and dividend income | $ 7,462 | $ 7,426 | $ 7,026 | $ 6,980 | $ 6,678 | $ 6,448 | $ 6,252 | $ 6,074 | $ 28,894 | $ 25,452 |
Interest expense | 694 | 713 | 681 | 697 | 510 | 567 | 550 | 547 | 2,785 | 2,174 |
Net interest and dividend income | 6,768 | 6,713 | 6,345 | 6,283 | 6,168 | 5,881 | 5,702 | 5,527 | 26,109 | 23,278 |
Provision for loan losses | 219 | 163 | 210 | 111 | 160 | 174 | 193 | 278 | 703 | 805 |
Gain on sales of securities, net | 215 | 438 | 17 | 20 | 215 | 21 | 81 | 690 | 317 | |
Other income | 955 | 925 | 950 | 915 | 963 | 945 | 838 | 743 | 694 | 513 |
Total noninterest income | 1,170 | 1,363 | 967 | 935 | 963 | 1,160 | 859 | 824 | 4,435 | 3,806 |
Total noninterest expense | 5,261 | 5,212 | 5,080 | 4,924 | 4,875 | 6,871 | 4,680 | 4,667 | 20,477 | 21,093 |
Income tax (benefit) expense | 730 | 940 | 659 | 696 | 645 | (134) | 459 | 393 | 3,025 | 1,363 |
Net income | $ 1,728 | $ 1,761 | $ 1,363 | $ 1,487 | $ 1,451 | $ 130 | $ 1,229 | $ 1,013 | $ 6,339 | $ 3,823 |
Income (loss) per share: | ||||||||||
Basic (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 0.69 | |||||
Diluted (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 0.69 | |||||
Weighted Average Shares: | ||||||||||
Basic (in shares) | 9,185,285 | 9,179,269 | 9,173,317 | 9,167,364 | 9,176,384 | |||||
Diluted (in shares) | 9,185,285 | 9,179,269 | 9,173,317 | 9,167,364 | 9,176,384 |