Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 15, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RNDB | ||
Entity Registrant Name | Randolph Bancorp, Inc. | ||
Entity Central Index Key | 1,667,161 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 78,736,498 | ||
Entity Common Stock, Shares Outstanding | 6,029,776 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 3,562 | $ 4,370 |
Interest-bearing deposits | 5,260 | 10,479 |
Total cash and cash equivalents | 8,822 | 14,849 |
Certificates of deposit | 2,940 | 3,675 |
Securities available for sale, at fair value | 61,576 | 68,637 |
Loans held for sale, at fair value | 25,390 | 30,452 |
Loans, net of allowance for loan losses of $3,737 in 2017 and $3,271 in 2016 | 400,373 | 332,991 |
Federal Home Loan Bank of Boston stock, at cost | 3,310 | 2,478 |
Accrued interest receivable | 1,432 | 1,163 |
Mortgage servicing rights | 6,397 | 8,486 |
Premises and equipment, net | 8,670 | 6,280 |
Bank-owned life insurance | 8,037 | 7,884 |
Foreclosed real estate | 193 | |
Other assets | 4,752 | 4,329 |
Total assets | 531,892 | 481,224 |
Deposits: | ||
Noninterest-bearing | 62,130 | 59,646 |
Interest bearing | 304,706 | 291,533 |
Total deposits | 366,836 | 351,179 |
Federal Home Loan Bank of Boston advances | 75,954 | 38,667 |
Mortgagors' escrow accounts | 907 | 1,572 |
Post-employment benefit obligations | 2,750 | 2,886 |
Other liabilities | 3,962 | 3,618 |
Total liabilities | 450,409 | 397,922 |
Commitments and contingencies (Note 17) | ||
Stockholders' Equity: | ||
Preferred stock, no par value; authorized: 1,000,000 shares; issued: none | ||
Common stock, $.01 par value; authorized: 15,000,000 shares; issued and outstanding: 6,034,276 at December 31, 2017 and 5,868,726 shares at December 31, 2016 | 61 | 59 |
Additional paid-in capital | 56,493 | 56,373 |
Retained earnings | 30,415 | 32,661 |
ESOP-Unearned compensation | (4,319) | (4,507) |
Accumulated other comprehensive loss, net of tax | (1,167) | (1,284) |
Total stockholders' equity | 81,483 | 83,302 |
Total liabilities and stockholders' equity | $ 531,892 | $ 481,224 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 3,737 | $ 3,271 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 6,034,276 | 5,868,726 |
Common stock, shares outstanding | 6,034,276 | 5,868,726 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income: | ||
Loans | $ 15,099,000 | $ 12,438,000 |
Securities-taxable | 1,259,000 | 1,260,000 |
Securities-tax exempt | 347,000 | 366,000 |
Interest-bearing deposits and certificates of deposit | 235,000 | 151,000 |
Total interest and dividend income | 16,940,000 | 14,215,000 |
Interest expense: | ||
Deposits | 1,556,000 | 1,345,000 |
Federal Home Loan Bank of Boston advances | 554,000 | 261,000 |
Total interest expense | 2,110,000 | 1,606,000 |
Net interest income | 14,830,000 | 12,609,000 |
Provision for loan losses | 540,000 | 103,000 |
Net interest income after provision for loan losses | 14,290,000 | 12,506,000 |
Non-interest income: | ||
Customer service fees | 1,455,000 | 1,502,000 |
Net gain on sales of mortgage loans | 9,151,000 | 10,381,000 |
Mortgage servicing fees, net | 1,473,000 | 430,000 |
Gain on sales/calls of securities | 162,000 | |
Increase in cash surrender value of life insurance | 153,000 | 172,000 |
Gain on life insurance settlement | 486,000 | |
Bargain purchase gain | 1,276,000 | |
Other | 731,000 | 621,000 |
Total non-interest income | 12,963,000 | 15,030,000 |
Non-interest expenses: | ||
Salaries and employee benefits | 18,731,000 | 15,168,000 |
Occupancy and equipment | 2,655,000 | 2,128,000 |
Data processing | 758,000 | 761,000 |
Professional fees | 1,344,000 | 1,378,000 |
Marketing | 989,000 | 448,000 |
Foreclosed real estate, net | 168,000 | |
FDIC deposit insurance | 145,000 | 246,000 |
Charitable foundation contribution | 2,275,000 | |
Merger and integration costs | 531,000 | 980,000 |
Restructuring charge | 594,000 | |
Other | 4,075,000 | 3,508,000 |
Total non-interest expenses | 29,822,000 | 27,060,000 |
Income (loss) before income taxes | (2,569,000) | 476,000 |
Income tax expense (benefit) | (443,000) | 13,000 |
Net income (loss) | $ (2,126,000) | $ 463,000 |
Weighted average common shares outstanding (basic and diluted) | 5,468,514 | |
Earnings (loss) per common share (basic and diluted) | $ (0.39) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Net income (loss) | $ (2,126) | $ 463 | |
Securities available for sale: | |||
Unrealized holding gains (losses) | 74 | (1,422) | |
Reclassification adjustment for net gains realized in income | [1] | 0 | (162) |
Net unrealized gain (loss) | 74 | (1,584) | |
Related tax effects | 0 | 0 | |
Net-of-tax amount | 74 | (1,584) | |
Related tax effects | 0 | 0 | |
Net-of-tax amount | (77) | 39 | |
Total other comprehensive loss | (3) | (1,545) | |
Comprehensive loss | (2,129) | (1,082) | |
Supplemental Retirement Plan [Member] | |||
Securities available for sale: | |||
Actuarial losses | [2] | 38 | 30 |
Prior service credits recognized | [2] | (89) | (25) |
Settlement cost | [2] | 59 | |
Actuarial losses arising during the year | (26) | (25) | |
Net change in supplemental retirement plan | $ (77) | $ 39 | |
[1] | Amounts are included in gain on sales/calls of securities in the consolidated statements of operations. | ||
[2] | Amounts are included in other non-interest expenses in the consolidated statements of operations. |
Consolidated Statements Changes
Consolidated Statements Changes in Stockholders' Equity - USD ($) | Total | Randolph Savings Charitable Foundation [Member] | Initial Public Offering [Member] | Common Stock [Member] | Common Stock [Member]Randolph Savings Charitable Foundation [Member] | Common Stock [Member]Initial Public Offering [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Randolph Savings Charitable Foundation [Member] | Additional Paid-in Capital [Member]Initial Public Offering [Member] | Unearned Compensation ESOP [Member] |
Beginning balance at Dec. 31, 2015 | $ 32,459,000 | $ 32,198,000 | $ 261,000 | |||||||||
Net income (loss) | 463,000 | 463,000 | ||||||||||
Other comprehensive loss | (1,545,000) | (1,545,000) | ||||||||||
Issuance of common stock for initial public offering, value | $ 1,820,000 | $ 54,543,000 | $ 2,000 | $ 57,000 | $ 1,818,000 | $ 54,486,000 | ||||||
Issuance of common stock for initial public offering, shares | 181,976 | 5,686,750 | ||||||||||
Stock purchased by ESOP | (4,695,000) | $ (4,695,000) | ||||||||||
ESOP shares committed to be released | 257,000 | $ 69,000 | 188,000 | |||||||||
Ending balance at Dec. 31, 2016 | 83,302,000 | $ 59,000 | 32,661,000 | (1,284,000) | 56,373,000 | (4,507,000) | ||||||
Ending balance, shares at Dec. 31, 2016 | 5,868,726 | |||||||||||
Net income (loss) | (2,126,000) | (2,126,000) | ||||||||||
Other comprehensive loss | (3,000) | (3,000) | ||||||||||
Stock repurchased | (160,000) | (160,000) | ||||||||||
Stock repurchased, shares | (10,689) | |||||||||||
Restricted stock awards granted | $ 2,000 | (2,000) | ||||||||||
Restricted stock awards granted, shares | 192,491 | |||||||||||
Restricted stock awards forfeited, shares | (16,252) | |||||||||||
Stock-based compensation | 184,000 | 184,000 | ||||||||||
ESOP shares committed to be released | 286,000 | 98,000 | 188,000 | |||||||||
Adoption impact - ASU 2018-02 | (120,000) | 120,000 | ||||||||||
Ending balance at Dec. 31, 2017 | $ 81,483,000 | $ 61,000 | $ 30,415,000 | $ (1,167,000) | $ 56,493,000 | $ (4,319,000) | ||||||
Ending balance, shares at Dec. 31, 2017 | 6,034,276 |
Consolidated Statements Change7
Consolidated Statements Changes in Stockholders' Equity (Parenthetical) $ in Thousands | Dec. 31, 2016USD ($) |
Initial Public Offering [Member] | |
Common stock issuance costs | $ 2,325 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (2,126,000) | $ 463,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Provision for loan losses | 540,000 | 103,000 |
Bargain purchase gain | (1,276,000) | |
Loans originated for sale | (398,696,000) | (404,555,000) |
Principal balance of loans sold | 403,758,000 | 403,632,000 |
Net amortization of securities | 271,000 | 250,000 |
Net change in deferred loan costs and fees, and purchase premiums | (276,000) | 111,000 |
Gain on sales/calls of securities | (162,000) | |
Depreciation and amortization | 605,000 | 588,000 |
Impairment write-down on property and equipment | 225,000 | |
Impairment write-down on foreclosed real estate | 150,000 | |
Gain on life insurance settlement, net | (486,000) | |
Charitable foundation contribution | 1,820,000 | |
Stock-based compensation | 184,000 | |
ESOP expense | 286,000 | 257,000 |
Increase in cash surrender value of life insurance | (153,000) | (172,000) |
Net decrease (increase) in mortgage servicing rights | 2,089,000 | (297,000) |
Other, net | (797,000) | 488,000 |
Net cash provided by operating activities | 5,910,000 | 914,000 |
Cash flows from investing activities: | ||
Redemption of certificates of deposit | 735,000 | 1,000,000 |
Securities available for sale: | ||
Sales | 2,521,000 | |
Calls/maturities | 2,586,000 | 6,970,000 |
Purchases | (23,405,000) | |
Principal payments on mortgage-backed securities | 4,278,000 | 5,872,000 |
Loan originations, net of principal repayments | (31,614,000) | (12,175,000) |
Loan purchases and participations | (36,032,000) | (4,426,000) |
Redemption (purchases) of Federal Home Loan Bank of Boston stock | (832,000) | 899,000 |
Proceeds from sale of building | 1,231,000 | |
Proceeds from life insurance settlement | 2,157,000 | |
Proceeds from sale of foreclosed real estate | 367,000 | |
Acquisition of First Eastern, net of cash acquired | (11,131,000) | |
Purchases of premises and equipment | (3,177,000) | (1,071,000) |
Net cash used in investing activities | (64,056,000) | (31,191,000) |
Cash flows from financing activities: | ||
Net increase in deposits | 15,657,000 | 194,000 |
Net increase in short-term Federal Home Loan Bank of Boston borrowings | 44,841,000 | 12,497,000 |
Proceeds from long-term Federal Home Loan Bank of Boston advances | 1,449,000 | |
Repayments of long-term Federal Home Loan Bank of Boston advances | (7,554,000) | (23,381,000) |
Net decrease in mortgagors' escrow accounts | (665,000) | (448,000) |
Net proceeds from the issuance of common stock | 56,868,000 | |
Acquisition of common stock by ESOP | (4,695,000) | |
Stock offering costs | (2,004,000) | |
Repurchases of common stock | (160,000) | |
Net cash provided by financing activities | 52,119,000 | 40,480,000 |
Net change in cash and cash equivalents | (6,027,000) | 10,203,000 |
Cash and cash equivalents at beginning of year | 14,849,000 | 4,646,000 |
Cash and cash equivalents at end of year | 8,822,000 | 14,849,000 |
Supplemental cash flow information: | ||
Interest paid on deposits and borrowed funds | 2,122,000 | 1,604,000 |
Income taxes paid, net of refunds | 10,000 | $ 74,000 |
Non-cash items: | ||
Leasehold improvements funded by landlord | 646,000 | |
Transfer of loan to foreclosed real estate | 193,000 | |
Transfer of property and equipment to assets held for sale | $ 828,000 |
Conversion
Conversion | 12 Months Ended |
Dec. 31, 2017 | |
Plan Of Conversion [Abstract] | |
Conversion | 1. CONVERSION Randolph Bancorp, a Massachusetts-chartered mutual holding company and the parent company of Envision Bank, formerly Randolph Savings Bank (the “Bank”), adopted a plan of conversion (the “Plan of Conversion”) in January 2016 which was subsequently approved by Randolph Bancorp’s Corporators in May 2016. Under the Plan of Conversion, Randolph Bancorp would convert from a mutual to a stock holding company in a series of transactions in which Randolph Bancorp, Inc. (“Bancorp”) a recently formed subsidiary of Randolph Bancorp, became the surviving entity. On July 1, 2016, the mutual-to-stock transaction was completed and Bancorp sold 5,686,750 shares of its common stock, representing the adjusted maximum of the offering range, at $10.00 per share, for gross proceeds of $56,867,500, including the sale of 469,498 shares to the Bank’s newly formed employee stock ownership plan (“ESOP”). The ESOP’s shares were funded by a loan from Bancorp to be repaid over 25 years with interest at the prime rate. The direct costs of stock offering were deducted from the proceeds of the offering and amounted to $2,325,000. In connection with the Plan of Conversion, Bancorp established The Randolph Savings Charitable Foundation, Inc., subsequently re-named Envision Bank Foundation, Inc. (the “Foundation”). The Foundation was funded with 181,976 shares of Bancorp’s common stock and $455,000 in cash. Bancorp recognized expense of $2,274,700 in 2016 for this contribution. The Bancorp and the Bank are required to restrict their net worth by establishing liquidation accounts (collectively, the “liquidation account”) for the benefit of eligible account holders who continue to maintain deposit accounts at the Bank after the conversion. The liquidation account will be reduced annually to the extent eligible depositors reduce their qualifying deposits and cannot be increased thereafter with additional deposits. In the event of a complete liquidation of the Bank, each eligible account holder would be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. Neither the Bancorp nor the Bank may declare or pay a cash dividend on its common stock if such dividend would cause its regulatory capital to be reduced below the amount required to maintain the liquidation account. |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | 2. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations The Bank, which changed its name from Randolph Savings Bank to Envision Bank on March 12, 2018, provides a variety of financial services to individuals and small businesses through its six branch offices in Massachusetts. The Bank’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential and commercial mortgage loans. The Federal Deposit Insurance Corporation (“FDIC”) provides insurance coverage on all deposits up to $250,000 per depositor. As an FDIC insured institution, the Bank is subject to supervision, examination and regulation by the FDIC. Additionally, as a Massachusetts chartered savings bank, the Bank’s depositors are also insured by the Depositors Insurance Fund (“DIF”), a private industry-sponsored insurance company. The DIF insures bank deposits in excess of the FDIC insurance limits. Bancorp entered into a merger agreement in September 2015 under which it would acquire First Eastern Bankshares Corporation (“Bankshares”) and its wholly-owned subsidiary First Federal Savings Bank of Boston (“First Federal;” and together with Bankshares “First Eastern”) in a transaction accounted for as a business combination. First Eastern was actively engaged in the mortgage banking business as an originator, seller and servicer of residential mortgage loans. On July 1, 2016, the Company completed the acquisition of First Eastern. See Note 3 for additional information. Basis of Presentation The consolidated financial statements include the accounts of Randolph Bancorp, Inc. and its wholly-owned subsidiary, Envision Bank (together, the “Company”). The Bank has subsidiaries involved in owning investment securities and real estate properties and a subsidiary which provides loan closing services. All intercompany accounts and transactions have been eliminated in consolidation. The following significant accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (“GAAP”) and are used in preparing and presenting these consolidated financial statements. Use of estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses, mortgage servicing rights, deferred tax assets and fair value measurements. Cash and cash equivalents Cash equivalents include amounts due from banks, federal funds sold on a daily basis and interest-bearing deposits with original maturities of ninety days or less. Certificates of deposit Certificates of deposit have original maturities ranging from one to five years and are carried at cost. Fair value hierarchy The Company groups its assets and liabilities that are measured at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Valuations are obtained from readily available pricing sources. Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include those for which the value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Transfers between levels are recognized at the end of a reporting period, if applicable. Securities All securities are classified as available for sale and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income/loss. Purchase premiums and discounts are recognized in interest income using the level yield method over the terms of the securities. Anticipated prepayments on mortgage-backed securities are used in applying this method. Gains and losses on the sale of securities are recorded on the trade date and are determined using the weighted average cost method for mutual funds and the specific identification method for other securities. On a quarterly basis, the Company evaluates all securities with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other than temporary (“OTTI”). OTTI is required to be recognized (1) if the Company intends to sell the security; (2) if 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) for debt securities, if 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 decline in fair value is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income/loss, net of applicable taxes. Because the Company’s assessments are based on available factual information as well as subjective information, the determination as to whether an OTTI exists and, if so, the amount of impairment, is subjective and, therefore, the timing and amount of OTTI constitute material estimates that are subject to significant change. Federal Home Loan Bank stock The Bank, as a member of the Federal Home Loan Bank of Boston (“FHLBB”), is required to maintain an investment in capital stock of the FHLBB. Based on redemption provisions of the FHLBB, the stock has no quoted market value and is carried at cost. The Company periodically evaluates for impairment based on ultimate recovery of its cost basis in the FHLBB stock. Loans held for sale The origination of residential mortgage loans is an integral part of the Company’s business. The Company generally sells its originations of such loans in the secondary market to either government-sponsored enterprises (“GSEs”) or other financial institutions. The servicing of loans sold to GSEs is initially retained while loans sold to other financial institutions are done so on a servicing released basis. From time-to-time, the rights to service loans for the GSEs are sold on a bulk basis. Gains and losses on the sales of these loans are determined using the specific identification method. In determining the amount of the gain or loss the Company takes into consideration the direct costs of originating the loan. Also included in the net gain on sales of mortgage loans as presented in the accompanying statements of operations are fair value adjustments for mortgage banking derivatives (interest rate lock commitments with borrowers and forward loan sale commitments with investors) and loans held for sale. Effective July 1, 2016, the Bank elected to utilize the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments” for its residential mortgage loans being held for sale in the secondary market. Fair value is determined based on either commitments in effect from investors or prevailing market price and include the value of mortgage servicing rights. The Bank elected the fair value option to better match changes in the fair value of the loans with changes in the fair value of the forward loan sale commitments which are used to economically hedge them against changes in interest rates between the time an interest rate lock agreement is entered into with the borrower and the time the loan is sold. Derivative financial instruments Derivative loan commitments Mortgage loan commitments (interest rate locks) qualify as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value, including the value of mortgage servicing rights on the consolidated balance sheets in other assets and other liabilities with changes in fair value recorded in the net gain on sale of mortgage loans. In estimating fair value, the Company assigns a probability to a loan commitment becoming a closed loan based on historical experience. Changes in the fair values of the loan commitments are recognized based on changes in the fair value of the underlying mortgage loan due to interest rate changes, changes in the probability the derivative loan commitment will be exercised, and the passage of time. Forward loan sale commitments The Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery forward loan sale commitments are accounted for as derivative instruments, and are recognized at fair value on the consolidated balance sheets in other assets and other liabilities with changes in fair value recorded in the net gain on sale of mortgage loans. Fair values for forward loan sale commitments are based on changes in the fair values of the underlying loans. Loans The Company grants residential real estate, commercial real estate, construction, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans in eastern Massachusetts and Rhode Island. The ability of the Company’s borrowers to honor their contracts is affected by real estate values and general economic conditions in these markets. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and net deferred loan origination fees and costs and purchase premiums. Interest income is accrued on the unpaid principal balance. Certain direct loan origination costs and purchase premiums, net of origination fees, are deferred and recognized in interest income using the level yield method without anticipating prepayments. Interest is not accrued on loans which are ninety days or more past due, or when, in the judgment of management, the collectability of the principal or interest becomes doubtful. Past due status is based on contractual terms of the loan. Interest income previously accrued on such loans is reversed against current period earnings. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for loan losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility 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 and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as either additional information becomes available or circumstances change. The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans (general component) and an analysis of certain individual loans for impairment (allocated component). General component The general component of the allowance for loan losses covers loans that are collectively evaluated for impairment and is based on historical loss experience adjusted for qualitative factors stratified by loan segments. Management uses a rolling average of historical losses based on a trailing 48 month time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is supplemented by 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; national and local economic trends and conditions, regulatory and legal factors; and risk rating concentrations. 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: Residential one-to-four family real estate – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent. All loans in this segment are collateralized by one-to-four family owner, and non-owner-occupied, residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Second mortgages and home equity lines of credit (HELOC) – Loans in this segment are primarily secured by second-position liens, and the Company may or may not also have a first-position lien. Regardless of which creditor is in first position, the Company does not originate loans with a combined loan-to-value ratio greater than 80 percent. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate – Loans in this segment consist of owner-occupied and non-owner-occupied property throughout Massachusetts and Rhode Island. The underlying cash flows generated by the operating entities of owner-occupied real estate support the associated debt. Rental cash flows, for which management obtains periodic rent rolls, support the debt associated with non-owner-occupied real estate and can be negatively impacted by increased vacancy rates. Construction – Loans in this segment primarily include residential real estate development loans for which payment is derived from sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial and Industrial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, would have an effect on the credit quality in this segment. Consumer – Loans in this segment primarily include personal unsecured loans, refinanced student loans and auto loans purchased from third party lenders. Repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component of the allowance for loan losses relates to loans that are individually classified as impaired. Residential real estate, commercial and industrial, commercial real estate and construction loans are evaluated for impairment on a loan-by-loan basis. Impairment is measured 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 are lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans or second mortgages and HELOCs for impairment disclosures, unless such loans are 90 days past due or are classified as a troubled debt restructuring. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired. Bank-owned life insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at their cash surrender value net of charges or other amounts that are probable at settlement. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income in the consolidated statements of operations and are not subject to income taxes, unless such policies are surrendered prior to the death of the insured individuals. Mortgage servicing rights The Company services mortgage loans for others. Mortgage servicing rights are recognized as separate assets at fair value when rights are acquired through purchase or through sale of financial assets. Capitalized servicing rights are amortized into mortgage servicing income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income, using market-based assumptions. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. Changes in the valuation allowance, if any, are reported in mortgage servicing income. Premises and equipment Land is carried at cost. Buildings, equipment and leasehold improvements are stated at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Premises and equipment held for sale are stated at the lower of amortized cost or fair value less costs to sell. Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan. In order to be eligible for sales treatment, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties, and no loan holder can have the right to pledge or exchange the entire loan. In certain cases, the Company may have an obligation to repurchase mortgage loans sold to third parties and to refund fees to the purchaser if a payment default or prepayment occurs, in each case within a prescribed time period not exceeding four months after the sale date, or in the case of a violation of its representations and warranties under the provisions of its loan sale agreements. The Company evaluates its obligations under these provisions and recognizes a liability for the fair value of its recourse obligations. At December 31, 2017 and 2016, the Company determined that its obligations in connection with the recourse provisions of its loan sale agreements were insignificant. Foreclosed assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations, changes in the valuation allowance and any direct write-downs are included in foreclosed real estate expense. Supplemental retirement plan The Company accounts for its supplemental retirement plan using an actuarial model that allocates cost over the service period of participants in the plan. The Company accounts for the over-funded or under-funded status of the plan as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income/loss. Employee Stock Ownership Plan Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is computed based on the number of shares allocated to participants during the period multiplied by the average fair market value of the Company’s shares. This expense is recognized ratably throughout the year based on the expected allocation of shares for the year. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity. The difference between the average fair market value and cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. Stock-based Compensation The fair value of restricted stock and stock options is determined on the date of grant and amortized to compensation expense with a corresponding increase to additional paid-in capital over the required service period, but in no event beyond the date of an employee’s or director’s date of termination. Forfeitures of unvested awards and grants are recorded as incurred. Advertising costs Advertising costs are expensed as incurred. Income taxes Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. A valuation allowance is established against deferred tax assets when, based upon available evidence including historical and projected taxable income, that some or all of the deferred tax assets will not be realized. A tax position is recognized as a benefit if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company does not have any uncertain tax positions at December 31, 2017 and 2016 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2017 and 2016. Comprehensive income (loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities are reported as a separate component of equity, such items, along with net income (loss), are components of comprehensive income (loss). The components of accumulated other comprehensive loss (“AOCI”), included in stockholders’ equity, are as follows: December 31, December 31, 2017 2016 (In thousands) Securities available for sale: Net unrealized loss $ (624 ) $ (698 ) Tax effect (313 ) (423 ) Net-of-tax amount (937 ) (1,121 ) Supplemental retirement plan Unrecognized net actuarial loss (667 ) (679 ) Unrecognized net prior service credit 484 573 (183 ) (106 ) Tax effect (47 ) (57 ) Net-of-tax amount (230 ) (163 ) Accumulated other comprehensive loss $ (1,167 ) $ (1,284 ) In 2018, the Company expects to recognize $89,000 in prior service credits and $41,000 in net actuarial losses as components of cost for the supplemental retirement plan. These amounts are included in accumulated other comprehensive income (loss) at December 31, 2017. Prior service credits and net actuarial gains and losses are amortized to periodic pension cost over varying periods based on the plan participants to whom they relate. Segment reporting While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a company-wide basis. Discrete financial information is not available other than on a company-wide basis. Therefore, Company management has determined there to be a single segment for financial reporting purposes at December 31, 2017 and 2016. Earnings (Loss) Per Share Basic earnings (loss) per share represents income (loss) available to common stockholders divided by the weighted average of common shares outstanding during the period. Unvested restricted shares of common stock having dividend rights are treated as “participating securities” and, accordingly, are considered outstanding in computing basic earnings (loss) per share. Unallocated ESOP shares are not considered outstanding in computing earnings (loss) per share. Earnings per share is not presented herein for the year ended December 31, 2016 as common stock was not outstanding for the entire year. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential shares had been issued. Stock options represent potential dilutive shares with the number of such shares computed using the treasury method. No potential dilutive shares were considered in the computation of loss per share in 2017 as the impact would be anti-dilutive. Business combinations We account for business combinations under the acquisition method of accounting. The application of this method of accounting requires the use of significant estimates and assumptions in the determination of the fair value of tangible and identified intangible assets acquired and liabilities assumed in order to properly allocate purchase price consideration between assets from those that are recorded as goodwill. Our estimates of the fair values of assets acquired and liabilities assumed are based upon assumptions that we believe to be reasonable, and whenever necessary, include assistance from independent third-party appraisal and valuation firms. Costs incurred to consummate a business combination are expensed as incurred. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers In February 2016, FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses In April 2017, the FASB issued ASU 2017-08 Receivables – Non-refundable Fees and Other Costs In February 2018, the FASB issued ASU 2018-02 Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Reclassifications Certain reclassifications have been made to the 2016 consolidated financial statements in order to conform to the presentations used in the 2017 consolidated financial statements. Such reclassifications had no impact on net income as presented in such financial statements . |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | 3. ACQUISITION On July 1, 2016, the Company acquired all of the outstanding common stock of Bankshares for cash of $14.1 million. First Eastern operated eight residential loan production offices in eastern Massachusetts and New Hampshire and a retail banking branch in downtown Boston. As a result of the transaction, Bankshares merged into Randolph Bancorp, Inc. and First Federal merged into Envision Bank. This business combination significantly increases the Company’s mortgage banking operations. The results of First Eastern’s operations are included in the Company’s consolidated statement of operations from the date of acquisition. First Eastern’s assets and liabilities were recorded at their fair value as of the date of acquisition based on management’s estimates using currently available information. Cash consideration paid, and fair values of First Eastern’s assets acquired and liabilities assumed, along with the resulting bargain purchase gain, are summarized in the following table (in thousands): Fair Value As Acquired Adjustments As Recorded (In thousands) Cash and cash equivalents $ 2,951 $ — $ 2,951 Loans held for sale 26,209 450 (a) 26,659 Loans 30,824 482 (b) 31,306 Mortgage servicing rights 4,396 1,820 (c) 6,216 Premises and equipment 1,566 1,534 (d) 3,100 Core deposit intangible — 118 (e) 118 Goodwill 789 (789 ) (f) — Other assets 2,046 (55 ) (g) 1,991 Deposits (41,737 ) (53 ) (h) (41,790 ) Federal Home Loan Bank of Boston advances (13,128 ) (60 ) (h) (13,188 ) Other liabilities (1,917 ) (88 ) (i) (2,005 ) Total identifiable net assets $ 11,999 $ 3,359 15,358 Cash consideration paid to seller 14,082 Bargain purchase gain $ 1,276 Explanation of the fair value adjustments is as follows: (a) The adjustment represents the write-up of the book value of loans held for sale to their estimated fair value based on current selling prices, including the value of their servicing rights. (b) The adjustment represents the write-up of the book value of loans, to their estimated fair value based on current interest rates and expected cash flows, which includes an estimate of expected loan losses inherent in the portfolio. The balance of impaired loans was not significant. (c) The adjustment represents the write-up of the book value of mortgage servicing rights associated with $789.3 million of serviced loans to their estimated fair value based on an independent appraisal. The fair value was determined based on the discounted present value of estimated future net servicing income using market-based assumptions including prepayment speeds, costs of servicing, risk characteristics and interest rates. (d) The adjustment represents the write-up of the Boston retail branch based on an independent appraisal. (e) This amount represents the estimated fair value of core deposit relationships (equal to 1.1% of core deposits) based on an independent appraisal. (f) The adjustment eliminates existing goodwill. (g) The adjustment eliminates deferred origination costs for loans-in-process. (h) The adjustments represent the write-up of the book value of term certificate accounts and FHLB advances based on interest rates currently offered on instruments having similar remaining maturities. (i) The adjustment represents the fair value of forward loan sale commitments written on a best efforts basis. The bargain purchase gain is presented in the accompanying statement of operations as a separate component of non-interest income. This gain is primarily attributable to the write-ups of the mortgage servicing rights and premises and equipment to fair value as determined by independent third-party specialists based on market assumptions that were reviewed for reasonableness. Direct acquisition and merger integration costs of the First Eastern business combination are being expensed as incurred and are presented separately in the accompanying statements of operations. Costs incurred in 2017 consist principally of employee severance benefits, systems conversion costs and consulting fees. Costs incurred in 2016 consist of retention bonuses, severance obligations, systems conversion costs as well as legal and consulting fees. The following table presents selected unaudited pro forma financial information assuming that the acquisition was completed as of January 1, 2016. The pro forma amounts reflect adjustments related to: (a) reversal of non-recurring merger and integration costs; (b) reversal of a special bonus of $1.6 million paid in June 2016 to First Eastern executives in connection with the merger; (c) amortization and accretion of acquisition accounting fair value adjustments; and (d) reversal of the bargain purchase gain. No provision for income taxes is included in the determination of pro forma net income for the period presented due to the Company’s net operating loss carryforward position. Furthermore, the unaudited pro forma financial information do not reflect management’s estimate of any revenue enhancement opportunities or anticipated potential cost savings nor any adjustments related to the stock offering completed on July 1, 2016. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the combined financial results of the Company and First Eastern had the acquisition transaction actually been completed at the beginning of the period presented, nor does it indicate future results for any interim or annual period. Pro forma basic and diluted earnings (loss) per common share are not presented as such information is not being presented as part of our 2016 historical financial statements due to the completion of the stock offering on July 1, 2016. Unaudited pro forma financial information for the year ended December 31, 2016 is as follows (in thousands): Net Interest Income $ 13,463 Non-interest Income 20,539 Net Income 1,658 Due to the conversion of First Eastern’s core processing system in the fourth quarter of 2016, separate revenue and earnings information for First Eastern since the date of acquisition is not available. |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Securities Available for Sale | 4. SECURITIES AVAILABLE FOR SALE The amortized cost and fair value of securities available for sale, including gross unrealized gains and losses, are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) December 31, 2017 Debt securities: U.S. Government-sponsored enterprises $ 3,999 $ 50 $ (24 ) $ 4,025 Corporate 2,005 27 (8 ) 2,024 Municipal 12,707 179 (18 ) 12,868 Residential mortgage-backed securities: U.S. Government-sponsored enterprises 18,729 118 (450 ) 18,397 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises 14,451 13 (403 ) 14,061 U.S. Government-guaranteed 2,132 — (6 ) 2,126 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 1,871 12 (5 ) 1,878 U.S. Government-guaranteed 5,760 4 (100 ) 5,664 Total debt securities 61,654 403 (1,014 ) 61,043 Mutual fund 545 — (12 ) 533 Total securities available for sale $ 62,199 $ 403 $ (1,026 ) $ 61,576 December 31, 2016 Debt securities: U.S. Government-sponsored enterprises $ 3,999 $ 92 $ (10 ) $ 4,081 Corporate 3,044 54 (18 ) 3,080 Municipal 13,857 254 (56 ) 14,055 Residential mortgage-backed securities: U.S. Government-sponsored enterprises 21,130 172 (580 ) 20,722 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises 14,676 56 (554 ) 14,178 U.S. Government-guaranteed 9,589 12 (144 ) 9,457 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 2,127 28 — 2,155 U.S. Government-guaranteed 368 3 — 371 Total debt securities 68,790 671 (1,362 ) 68,099 Mutual fund 545 — (7 ) 538 Total securities available for sale $ 69,335 $ 671 $ (1,369 ) $ 68,637 The amortized cost and fair value of debt securities by contractual maturity at December 31, 2017 are presented below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In thousands) Within 1 year $ 2,078 $ 2,085 After 1 year through 5 years 14,377 14,525 After 5 years through 10 years 2,256 2,307 18,711 18,917 Mortgage-backed securities and collaterlized mortgage obligations 42,943 42,126 $ 61,654 $ 61,043 Obligations of U.S. Government-sponsored enterprises consist primarily of securities issued by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. At December 31, 2017 and 2016, investment securities having a fair value of $2,004,000 and $2,107,000, respectively, were pledged as collateral for certain deposits and FHLBB borrowings. There were no individual holdings of investment securities at December 31, 2017 and 2016, other than holdings of the U.S. Government and its agencies, which exceeded 10% of the Company’s stockholders’ equity as of such dates. Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: Less Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value December 31, 2017 (In thousands) Debt securities: U.S. Government-sponsored enterprises $ — $ — $ (24 ) $ 19,676 Corporate — — (8 ) 988 Municipal (11 ) 1,919 (7 ) 479 Residential mortgage-backed securities: U.S. Government-sponsored enterprises (1 ) 1,623 (449 ) 13,163 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises — — (403 ) 8,805 U.S. Government-guaranteed (6 ) 2,126 — — Collateralized mortgage obligations: U.S. Government-sponsored enterprises (5 ) 678 — — U.S. Government-guaranteed (1 ) 295 (99 ) 3,756 Total debt securities (24 ) 6,641 (990 ) 46,867 Mutual fund — — (12 ) 533 $ (24 ) $ 6,641 $ (1,002 ) $ 47,400 December 31, 2016 Debt securities: U.S. Government-sponsored enterprises $ (10 ) $ 1,990 $ — $ — Corporate (14 ) 519 (4 ) 996 Municipal (46 ) 3,310 (10 ) 477 Residential mortgage-backed securities: U.S. Government-sponsored enterprises (580 ) 16,261 — — Commercial mortgage-backed securities: U.S. Government-sponsored enterprises (554 ) 8,766 — — U.S. Government-guaranteed (144 ) 5,927 — — Total debt securities (1,348 ) 36,773 (14 ) 1,473 Mutual fund (7 ) 538 — — $ (1,355 ) $ 37,311 $ (14 ) $ 1,473 At December 31, 2017, 37 debt securities have unrealized losses with aggregate depreciation of 1.90% from the Company’s amortized cost basis. The unrealized losses at December 31, 2017, which related primarily to securities issued by U.S. government-sponsored enterprises, were primarily caused by interest rate increases over the past fifteen months. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of these investments. Therefore, it is expected that the bonds would not be settled at a price less than the par value of the investment. Because the Company does not intend to sell any debt securities and it is more likely than not that the Company will not be required to sell any debt securities before recovery of its amortized cost basis, it does not consider these investments to be other-than-temporarily impaired at December 31, 2017. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans | 5. LOANS A summary of the loan portfolio is as follows: December 31, 2017 2016 (In thousands) Mortgage loans on real estate: Residential: One-to-four family $ 198,475 $ 179,025 Home equity loans and lines of credit 38,968 35,393 Commercial 101,755 88,394 Construction 25,357 23,629 364,555 326,441 Commercial and industrial 21,766 2,067 Consumer 16,337 6,578 Total loans 402,658 335,086 Allowance for loan losses (3,737 ) (3,271 ) Net deferred loan costs and fees, and purchase premiums 1,452 1,176 $ 400,373 $ 332,991 The Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying consolidated balance sheets. The Company and participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments (net of servicing fees) to participating lenders and disburses required escrow funds to relevant parties. At December 31, 2017 and 2016, the Company was servicing loans for participants aggregating $5,902,000 and $6,197,000, respectively. See Note 6 for information relating to the Company’s servicing of residential mortgage loans for others. The following table summarizes the changes in loans to directors, executive officers and their affiliates for the years ended December 31, 2017 and 2016: 2017 2016 (In thousands) Balance at beginning of the year $ — $ 32 New loans — — Repayments — (32 ) Balance at end of year $ — $ — The following table presents activity in the allowance for loan losses, by loan category, for the years ended December 31, 2017, and 2016 and allocation of the allowance to each category as of December 31, 2017 and 2016: Second Residential Mortgages Commercial Commercial 1-4 Family and HELOC Real Estate Construction and Industrial Consumer Total (In thousands) Allowance for loan losses Balance at December 31, 2015 $ 1,076 $ 512 $ 1,367 $ 159 $ 72 $ 53 $ 3,239 Provision (credit) for loan losses (66 ) (76 ) 43 66 (20 ) 156 103 Loans charged-off — — — — (15 ) (81 ) (96 ) Recoveries 8 — — — — 17 25 Balance at December 31, 2016 1,018 436 1,410 225 37 145 3,271 Provision (credit) for loan losses (187 ) (77 ) 210 126 263 205 540 Loans charged-off — — — — — (153 ) (153 ) Recoveries 23 — — — 35 21 79 Balance at December 31, 2017 $ 854 $ 359 $ 1,620 $ 351 $ 335 $ 218 $ 3,737 December 31, 2017 Allowance for impaired loans $ 160 $ 1 $ 1 $ — $ — $ — $ 162 Allowance for non-impaired loans 694 358 1,619 351 335 218 3,575 Total allowance for loan losses $ 854 $ 359 $ 1,620 $ 351 $ 335 $ 218 $ 3,737 Impaired loans $ 5,205 $ 276 $ 352 $ — $ — $ — $ 5,833 Non-impaired loans 193,270 38,692 101,403 25,357 21,766 16,337 396,825 Total loans $ 198,475 $ 38,968 $ 101,755 $ 25,357 $ 21,766 $ 16,337 $ 402,658 December 31, 2016 Allowance for impaired loans $ 190 $ 2 $ 8 $ — $ — $ — $ 200 Allowance for non-impaired loans 828 434 1,402 225 37 145 3,071 Total allowance for loan losses $ 1,018 $ 436 $ 1,410 $ 225 $ 37 $ 145 $ 3,271 Impaired loans $ 4,506 $ 276 $ 832 $ — $ — $ — $ 5,614 Non-impaired loans 174,519 35,117 87,562 23,629 2,067 6,578 329,472 Total loans $ 179,025 $ 35,393 $ 88,394 $ 23,629 $ 2,067 $ 6,578 $ 335,086 The following table presents past due and non-accrual loans, by loan category, at December 31, 2017 and 2016: 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Non-accrual Loans (In thousands) December 31, 2017 Residential one-to-four family $ 737 $ — $ — $ 737 $ 1,975 Home equity loans and lines of credit 96 — — 96 276 Commercial real estate — — — — — Construction — — — — — Commercial and industrial — — — — — Consumer — — — — — Total $ 833 $ — $ — $ 833 $ 2,251 December 31, 2016 Residential one-to-four family $ 1,168 $ 201 $ — $ 1,369 $ 1,945 Home equity loans and lines of credit 258 — — 258 276 Commercial real estate 400 — — 400 — Construction — — — — — Commercial and industrial — — — — — Consumer 59 — — 59 — Total $ 1,885 $ 201 $ - $ 2,086 $ 2,221 At December 31, 2017 and 2016, there were no loans past due 90 days or more and still accruing interest. Further information pertaining to impaired loans, which includes both non-accrual loans and troubled debt restructurings, follows: Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) December 31, 2017 Impaired loans without a valuation allowance: Residential one-to-four family $ 2,685 $ 2,641 $ — Home equity loans and lines of credit 247 247 — Commercial real estate 257 257 — Total 3,189 3,145 — Impaired loans with a valuation allowance: Residential one-to-four family 2,584 2,564 160 Home equity loans and lines of credit 29 29 1 Commercial real estate 95 95 1 Total 2,708 2,688 162 Total impaired loans $ 5,897 $ 5,833 $ 162 December 31, 2016 Impaired loans without a valuation allowance: Residential one-to-four family $ 1,922 $ 1,877 $ — Home equity loans and lines of credit 246 246 — Commercial real estate 270 270 — Total 2,438 2,393 — Impaired loans with a valuation allowance: Residential one-to-four family 2,648 2,629 190 Home equity loans and lines of credit 31 30 2 Commercial real estate 562 562 8 Total 3,241 3,221 200 Total impaired loans $ 5,679 $ 5,614 $ 200 Information related to the average balances of impaired loans and the interest income recognized on such loans, follows: Average Interest Cash Basis Recorded Income Interest Investment Recognized Recognized (In thousands) Year Ended December 31, 2017 Residential one-to-four family $ 4,956 $ 195 $ 82 Home equity loans and lines of credit 276 1 1 Commercial real estate 655 36 — Total $ 5,887 $ 232 $ 83 Year Ended December 31, 2016 Residential one-to-four family $ 4,738 $ 158 $ 56 Home equity loans and lines of credit 260 1 1 Commercial real estate 1,122 51 — Commercial and industrial 5 2 1 Total $ 6,125 $ 212 $ 58 No additional funds are committed to be advanced in connection with impaired loans. Troubled Debt Restructurings The Company periodically grants concessions to borrowers experiencing financial difficulties. The Company’s troubled debt restructurings consist primarily of interest rate concessions for periods of three months to thirty years for residential real estate loans, and for periods up to one year for commercial real estate loans. At December 31, 2017, the Company had 13 residential real estate loans and 2 commercial real estate loans aggregating $3,230,000 and $153,000, respectively, which were subject to troubled debt restructuring agreements. At December 31, 2016, the Company had 13 residential real estate loans and 3 commercial real estate loans aggregating $2,809,000 and $624,000, respectively, which were subject to troubled debt restructuring agreements. As of December 31, 2017 and 2016, all troubled debt restructurings were performing in accordance with the terms of the modified loan agreements. For the years ended December 31, 2017 and 2016 the Company did not enter into any loan modifications meeting the criteria of a troubled debt restructuring. Management performs a discounted cash flow calculation to determine the amount of impairment reserve required on each of the troubled debt restructurings. Any reserve required is recorded as part of the allowance for loan losses. At December 31, 2017 and 2016 allowances of $162,000 and $200,000, respectively, related to troubled debt restructurings. During the years ended December 31, 2017 and 2016, there were no troubled debt restructurings that defaulted (over 30 days past due) within twelve months of the restructure date. Credit Quality Information The Company utilizes an eight-grade internal loan rating system for commercial real estate, construction and commercial loans, as follows: Loans rated 1 – 3A are considered “pass” rated loans with low to average risk. Loans rated 4 are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 5 are considered “substandard” and are inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 6 are considered “doubtful” and have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 7 are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. Annually, the Company engages an independent third party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. The following table presents the Company’s loans by risk rating at December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Commercial Real Construction Commercial and Industrial Commercial Real Construction Commercial and Industrial (In thousands) Loans rated 1 - 3A $ 101,556 $ 25,357 $ 21,766 $ 88,186 $ 23,286 $ 2,067 Loans rated 4 — — — — 343 — Loans rated 5 199 — — 208 — — $ 101,755 $ 25,357 $ 21,766 $ 88,394 $ 23,629 $ 2,067 Residential mortgages, home equity loans and lines of credit, and consumer loans are monitored for credit quality based primarily on their payment status. When one of these loans becomes more than 90 days delinquent it is assigned an internal loan rating. At December 31, 2017, $712,000 in residential mortgages were rated as substandard and $2,512,000 in residential mortgages and $247,000 in home equity loans were rated as special mention. At December 31, 2016, $890,000 in residential mortgages were rated as substandard and $1,471,000 in residential mortgages and $400,000 in home equity loans were rated as special mention . |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2017 | |
Transfers And Servicing [Abstract] | |
Loan Servicing | 6. LOAN SERVICING Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $771,407,000 and $1,046,551,000 at December 31, 2017 and 2016, respectively. The following table summarizes the activity in the Company’s mortgage servicing rights for the indicated periods: For the Year Ended December 31, 2017 2016 Mortgage servicing rights: (In thousands) Balance at beginning of year $ 8,486 $ 2,601 Additions through originations 2,310 2,348 Acquisition of First Eastern — 6,216 Amortization (1,071 ) (1,064 ) Sales (3,238 ) (1,191 ) Balance at end of year $ 6,487 $ 8,910 Valuation allowance: Balance at beginning of year $ 424 $ 34 Provision (credit) (334 ) 390 Balance at end of year $ 90 $ 424 Mortgage servicing rights, amortized cost $ 6,397 $ 8,486 Mortgage servicing rights, fair value $ 6,485 $ 8,520 At December 31, 2017 and 2016, the fair value of servicing rights was determined using a discount rate of 13% and 14%, respectively, and projected annual prepayment speeds ranging from 6% to 24% for 2017 and 6% to 39% for 2016. Contractually specified servicing fees for the years ended December 31, 2017 and 2016 amounted to $2,434,000 and $1,884,000, respectively, and are included in mortgage servicing fees, net. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | 7. PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation and amortization of premises and equipment is as follows: December 31, Estimated 2017 2016 Useful Life (In thousands) (In years) Land and improvements $ 2,525 $ 2,676 Buildings and improvements 4,457 4,176 5 to 50 Leasehold improvements 1,503 393 3 to 5 Equipment 4,765 3,722 3 to 10 Construction-in-progress 101 611 13,351 11,578 Less accumulated depreciation and amortization (4,681 ) (5,298 ) $ 8,670 $ 6,280 Total depreciation and amortization expense for the years ended December 31, 2017 and 2016 amounted to $605,000 and $588,000, respectively. During 2017, the Company amended the lease for its Andover loan operations center relocating offices within an office complex. As part of this lease amendment, the landlord funded the cost of leasehold improvements which amounted to $646,000. These costs have been capitalized as part of premises and equipment and a tenant improvement allowance has been recorded as part of other liabilities in the accompanying consolidated balance sheet. Both the leasehold improvements and tenant improvement allowance are being amortized over the initial lease term of approximately five years. During 2017, the Company relocated one of its branch offices and entered into a lease for a new location to which it will transfer the deposits of an existing branch office in 2018. The premises and equipment of these branches have been reclassified to assets held for sale at the lower of their net book value or fair value and amounted to $828,000 at December 31, 2017. Included in other non-interest income for the year ended December 31, 2017 is an impairment charge of $225,000 related to one of these branches. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | 8. DEPOSITS A summary of deposit balances, by type, is as follows: December 31, 2017 2016 (In thousands) Demand deposits $ 62,130 $ 59,646 NOW accounts 44,988 49,112 Money market deposits 63,774 50,956 Regular and other savings 102,528 101,575 Total non-certificate accounts 273,420 261,289 Term certificates less than $250,000 80,538 83,410 Term certificates of $250,000 or more 12,878 6,480 Total certificate accounts 93,416 89,890 $ 366,836 $ 351,179 Included in term certificates less than $250,000 at December 31, 2016 were brokered deposits of $249,000. Included in money market deposits at December 31, 2017 were brokered deposits of $7.1 million. A summary of term certificates by maturity is as follows: December 31, 2017 December 31, 2016 Weighted Weighted Average Average Maturing during: Amount Rate Amount Rate (Dollars in thousands) 2017 $ — — % $ 55,582 0.83 % 2018 49,550 0.84 15,257 1.01 2019 22,470 1.20 8,703 1.21 2020 8,754 1.44 5,856 1.62 2021 4,873 1.57 4,492 1.52 2022 7,769 1.65 — — $ 93,416 1.09 % $ 89,890 0.98 % |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | 9. BORROWINGS A summary of borrowings from the FHLBB at December 31, 2017 and 2016 is as follows: 2017 2016 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands) Fixed-rate advances maturing: 2017* $ — — % $ 26,932 0.81 % 2018* 69,337 1.55 4,858 1.07 2019 1,500 1.00 1,500 1.00 2020* 3,129 1.52 3,359 1.55 2021* 1,988 1.34 2,018 1.35 $ 75,954 1.54 % $ 38,667 0.94 % * Includes amortizing advances which require monthly principal and interest payments. Included in FHLBB borrowings at December 31, 2017 and 2016 are overnight advances of $64.7 million and $19.9 million, respectively. Selected information for such short-term borrowings for the years presented is as follows (in 000’s): 2017 2016 Average daily balance $ 34,656 $ 15,497 Maximum outstanding at any month end 64,739 19,898 Advances from the FHLBB are secured by a blanket pledge agreement on the Bank’s qualified collateral, defined principally as 75% of the carrying value of pledged first mortgage loans on owner-occupied residential property and 65% on pledged commercial real estate loans. Available borrowing capacity at December 31, 2017 was $67,564,000. At December 31, 2017, the Bank was in compliance with the FHLBB collateral requirements. The Bank also has a $4,195,000 available line of credit with the FHLBB at an interest rate that adjusts daily. Borrowings under the line are limited to 2% of the Bank’s total assets. At December 31, 2017 and 2016, there were no advances outstanding. The Bank also has a $3,500,000 available line of credit with a correspondent bank. No advances were outstanding at December 31, 2017 and 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES Allocation of federal and state income taxes between current and deferred portions is as follows (in thousands): Years Ended December 31, 2017 2016 Current tax expense (benefit): Federal $ (462 ) $ — State 19 13 Total current tax expense (benefit) (443 ) 13 Deferred tax expense (benefit): Federal (518 ) (550 ) Effect of change in federal tax rate 1,627 — State (23 ) 23 1,086 (527 ) Change in valuation allowance 541 527 Effect of change in federal tax rate - valuation allowance (1,627 ) — Total deferred tax expense — — Total tax expense (benefit) $ (443 ) $ 13 The reasons for the differences between the statutory federal income tax expense (benefit) and the actual tax expense (benefit) are summarized as follows (in thousands): Years Ended December 31, 2017 2016 Statutory federal tax at 34% $ (874 ) $ 162 Increase (decrease) resulting from: State taxes, net of federal tax effect (3 ) 24 Bank-owned life insurance (52 ) (81 ) Tax exempt income (118 ) (125 ) Dividends received deduction (5 ) (4 ) Change in valuation allowance 541 527 Change in AOCI deferred effect (36 ) (525 ) Effect of change in federal tax rate 1,627 — Effect of change in federal tax rate-valuation allowance (1,627 ) — Other, net 104 35 Total tax expense (benefit) $ (443 ) $ 13 The federal tax benefit in 2017 results from repeal of the alternative minimum tax (“AMT”) under the Tax Cuts and Jobs Act of 2017 (the “Act”) which was signed into law on December 22, 2017. The Act also provides that existing AMT credit carryforwards be refunded over the next four years. The Act includes a number of changes in existing tax law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 35% to 21% effective on January 1, 2018 and repeal of the AMT. As a result of these changes, the Company revalued its net deferred tax asset as of December 22, 2017 resulting in a reduction in the value of the net deferred tax asset of $1,627,000 which was offset by a corresponding decrease in the valuation allowance. The components of the net deferred tax asset are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Federal $ 4,436 $ 6,332 State 1,008 875 5,444 7,207 Valuation allowance (3,326 ) (4,652 ) 2,118 2,555 Deferred tax liabilities: Federal (1,447 ) (1,982 ) State (671 ) (573 ) (2,118 ) (2,555 ) Net deferred tax asset $ — $ — The tax effects of items giving rise to deferred tax assets (liabilities) are as follows (in thousands): December 31, 2017 2016 Employee benefit plans $ 951 $ 1,211 Allowance for loan losses 1,050 1,306 Funded status of post-retirement benefits 52 36 Securities available for sale 137 237 Alternative minimum tax credit — 462 Depreciation and amortization 193 179 Net deferred loan origination costs (321 ) (445 ) Mortgage servicing rights (1,624 ) (1,738 ) Net operating loss carryforward 2,171 2,682 Charitable contribution carryforward 702 988 Derivatives (98 ) (254 ) Stock-based compensation 48 — Other, net 65 (12 ) 3,326 4,652 Valuation allowance on deferred tax assets (3,326 ) (4,652 ) Net deferred tax asset $ — $ — At December 31, 2017, the Company has a federal net operating loss carryforward of $10,337,000, of which $4,745,000 expires on December 31, 2033, $406,000 expires on December 31, 2034, $1,542,000 expires on December 31, 2035, $501,000 expires on December 31, 2036 and $3,143,000 expires on December 31, 2037. At December 31, 2017, the Company has a charitable contribution carryforward of $2,488,000 of which all but $174,000 expires on December 31, 2021. Since 2014, the Company has maintained a valuation allowance for all of its deferred tax assets based on a determination that it was more likely than not that such assets would not be realized. This determination was based on the Company’s net operating loss (“NOL”) carryforward position, its current period operating results exclusive of non-recurring items and its expectations for the upcoming year. In performing subsequent assessments, management has concluded that no significant changes in the key factors affecting the realizability of the deferred tax asset has occurred and that a valuation allowance for all deferred tax assets should be maintained. The federal income tax reserve for loan losses at the Company’s base year amounted to $2,033,000. If any portion of the reserve is used for purposes other than to absorb the losses for which it was established, approximately 150% of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the fiscal year in which used. As the Company intends to use the reserve only to absorb loan losses, a deferred income tax liability of $571,000 has not been provided. The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2014 through 2017. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2014 are open. |
On-Balance Sheet Derivative Ins
On-Balance Sheet Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
On-Balance Sheet Derivative Instruments and Hedging Activities | 11. ON-BALANCE SHEET DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Derivative Loan Commitments Mortgage loan interest rate lock commitments qualify as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market. Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to an increase in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. The notional amount of derivative loan commitments was $24,222,000 and $32,904,000 at December 31, 2017 and 2016, respectively. The fair value of such commitments at December 31, 2017 and 2016 was an asset of $363,000 and $617,000, respectively, and is included in other assets in the consolidated balance sheets. During the years ended December 31, 2017 and 2016, reductions in aggregate fair value of $254,000 and $81,000, respectively, related to interest rate lock commitments were recognized and included in the net gain on sales of mortgage loans in the accompanying consolidated statements of operations. Forward Loan Sale Commitments The Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. With a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor to compensate the investor for the shortfall. With a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these forward loan sale commitments will experience changes in fair value that serve to offset the change in fair value of derivative loan commitments the degree to which depends on the notional amount of such sale commitments. The notional amount of undesignated forward loan sale commitments was $29,613,000 and $29,481,000 at December 31, 2017 and 2016, respectively and liabilities of $19,000 and $47,000 at December 31, 2017 and 2016, respectively, are included in other liabilities in the consolidated balance sheets. The fair value of such commitments was an asset of $4,000 and $65,000 at December 31, 2017 and 2016, respectively, and are included in other assets in the consolidated balance sheets. During the years ended December 31, 2017 and 2016, an increase (reduction) in aggregate fair value of $(66,000) and $103,000, respectively, related to forward loan sale commitments was recognized and is included in net gain on sales of mortgage loans in the accompanying consolidated statements of operations. |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Banking And Thrift [Abstract] | |
Minimum Regulatory Capital Requirements | 12. MINIMUM REGULATORY CAPITAL REQUIREMENTS Banks and bank holding companies are subject to various regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective actions regulations, involve qualitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgement by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015. Under BASEL III, community banking institutions must maintain a capital conservation buffer of common equity tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. The capital conservation buffer is being phased in over three years with an initial phase-in of 0.625% (1.25% at December 31, 2017). Quantitative measures established by regulation to ensure capital adequacy require the Bancorp and Bank to maintain minimum amounts and ratios (set forth in the following tables) of total and Tier 1 capital to risk weighted assets Tier 1 capital to average assets and common equity Tier 1 capital (all as defined). Management believes, as of December 31, 2017 and 2016, that Randolph Bancorp, Inc. and Envision Bank met all capital adequacy requirements to which they are subject. As of December 31, 2017, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Bancorp Inc.’s and the Bank’s actual and minimum capital amounts and ratios are presented in the following tables. Minimum To Be Well For Minimum Capitalized Under Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Bancorp Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2017 Total capital (to risk weighted assets) $ 86,318 23.9 % $ 28,885 8.0 % N/A N/A Tier 1 capital (to risk weighted assets) 82,581 22.9 21,664 6.0 N/A N/A Common equity Tier 1 capital (to risk weighted assets) 82,581 22.9 16,248 4.5 N/A N/A Tier 1 capital (to average assets) 82,581 16.0 20,663 4.0 N/A N/A December 31, 2016 Total capital (to risk weighted assets) 84,565 28.5 23,762 8.0 N/A N/A Tier 1 capital (to risk weighted assets) 81,294 27.4 17,822 6.0 N/A N/A Common equity Tier 1 capital (to risk weighted assets) 81,294 27.4 13,366 4.5 N/A N/A Tier 1 capital (to average assets) 81,294 16.9 19,277 4.0 N/A N/A Minimum To Be Well For Minimum Capitalized Under Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Bank Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2017 Total capital (to risk weighted assets) $ 73,612 20.4 % $ 28,896 8.0 % $ 36,120 10.0 % Tier 1 capital (to risk weighted assets) 69,875 19.4 21,667 6.0 28,889 8.0 Common equity Tier 1 capital (to risk weighted assets) 69,875 19.4 16,250 4.5 23,472 6.5 Tier 1 capital (to average assets) 69,875 12.4 22,564 4.0 28,205 5.0 December 31, 2016 Total capital (to risk weighted assets) 73,991 24.9 23,763 8.0 29,703 10.0 Tier 1 capital (to risk weighted assets) 70,720 23.8 17,822 6.0 23,762 8.0 Common equity Tier 1 capital (to risk weighted assets) 70,720 23.8 13,366 4.5 19,307 6.5 Tier 1 capital (to average assets) 70,720 14.7 19,277 4.0 24,096 5.0 |
Post-retirement Plans
Post-retirement Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Post-retirement Plans | 13. POST-RETIREMENT PLANS Supplemental retirement agreements The Company maintains supplemental retirement agreements with certain officers and directors (none of whom currently provide services to the Company) that provide for supplemental benefits commencing with retirement. The present value of future benefits payable is accrued over the terms of employment or anticipated term of each participating director’s position, as applicable, taking into consideration the vesting provisions in the agreements. At December 31, 2017 and 2016, the accrued benefits related to the agreements amounted to $607,000 and $654,000, respectively. Total expense, included in other non-interest expenses, related to these supplemental agreements amounted to $64,000 and $54,000 for the years ended December 31, 2017 and 2016, respectively. Supplemental retirement plan The Company has a master supplemental retirement plan (“Plan”) which covers certain officers and directors of the Company. In 2017 and 2016, the only active participants in the Plan were directors. Information pertaining to activity in the Plan follows: Years Ended December 31, 2017 2016 (In thousands) Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 201 371 Benefits paid (201 ) (371 ) Fair value of plan assets at end of year — — Change in benefit obligation: Benefit obligation at beginning of year 1,836 2,105 Service cost 10 12 Interest cost 53 65 Actuarial loss 26 25 Benefits paid (201 ) (371 ) Benefit obligation at end of year 1,724 1,836 Unfunded status and accrued supplemental pension cost at year end $ (1,724 ) $ (1,836 ) Accumulated benefit obligation at year end $ 1,724 $ 1,836 The assumptions used to determine the benefit obligation are as follows: December 31, 2017 2016 Discount rate 2.90 % 3.05 % Annual inflation factor 1.00 % 1.00 % Net periodic benefit cost, included in other non-interest expenses, attributable to the Plan for the years ended December 31, 2017 and 2016, consists of the following: 2017 2016 (In thousands) Service cost $ 10 $ 12 Interest cost 53 65 Amortization of net actuarial loss 38 30 Amortization of prior service credit (89 ) (25 ) Settlement cost — 59 $ 12 $ 141 The following assumptions were used to determine the net periodic benefit cost for the years ended December 31, 2017 and 2016: 2017 2016 Discount rate 3.05 % 3.35 % Annual inflation factor 1.00 % 1.00 % The Company expects to contribute $201,000 to the Plan for the year ending December 31, 2018. Estimated future benefit payments, which reflect expected future services, as appropriate, are as follows: Years Ending December 31, Amount (In thousands) 2018 $ 201 2019 201 2020 201 2021 201 2022 213 2023-2027 898 In 2016, a Company director who was a participant in the supplemental retirement plan passed away. Included in other non-interest income and other non-interest expense is $486,000 and $59,000, respectively, from settlement of the underlying life insurance policies and payment of benefits under the supplemental retirement plan. Endorsement split-dollar life insurance arrangements The Company is the sole owner of life insurance policies pertaining to certain of the Company’s directors and executives. The Company has entered into agreements with these directors and executives whereby the Company will pay to the directors’ and executives’ estates or beneficiaries a portion of the death benefit that the Company will receive as beneficiary of such policies. Expense associated with this post-retirement benefit for the years ended December 31, 2017 and 2016 amounted to $22,000 and $26,000, respectively. At December 31, 2017 and 2016, the accrued benefits related to the split-dollar arrangements amounted to $419,000 and $397,000, respectively. 401(k) Plan The Company maintains a 401(k) Plan whereby each employee reaching the age of 21 automatically becomes a participant in the plan. Employees may contribute up to 15% of their compensation subject to certain limits based on federal tax laws. All employees who have worked for one year or 1,000 hours are eligible for an automatic employer contribution of 3% of employees’ compensation, which includes no vesting period. The Company also matches 50% of the first 2% of an eligible employee’s contributions, allowing for a total employer contribution of 4% of employees’ compensation. Matching contributions vest over a four year service period. In addition, a profit sharing provision allows for an additional discretionary contribution by the Company upon approval of the Board of Directors. For the years ended December 31, 2017 and 2016, expenses attributable to the plan amounted to $583,000 and $479,000, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 14. STOCK-BASED COMPENSATION Under the Randolph Bancorp, Inc. 2017 Stock Option and 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 586,872 shares reserved for options. The exercise price of each option equals the market price of the Company’s stock on the date of the grant and the maximum term of each options is 10 years. The total number of shares reserved for restricted stock is 237,749. Options and awards generally vest ratably over five years. The fair value of shares awarded is based on the market price at the date of grant. Stock Options The fair value of each option grant 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. • Expected dividend yield is based on the Company's history and expectation of dividend payouts. • 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. In 2017, the Company made the following grants of options to purchase shares of common stock and used the following assumptions in measuring the fair value of such grants: Date of grant October 12, 2017 Options granted 340,387 Vesting period (years) 3-5 Expiration period (years) 10 Expected volatility 23.59% - 29.87% Expected life (years) 3.0 - 6.5 Expected dividend yield — Risk free interest rate 1.66% - 2.06% Option fair value $2.71 - $5.05 A summary of the status of the Company's stock option grants for the year ended December 31, 2017 is presented in the table below: Options Stock Option Grants Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2017 — $ — — $ — Granted 340,387 14.66 9.78 — Forfeited (24,378 ) — — — Balance at December 31, 2017 (all non-vested) 316,009 $ 14.66 9.78 $ 219,374 Exercisable at December 31, 2017 — $ — — — Unrecognized compensation cost $ 1,338,000 Weighted average remaining recognition period (years) 4.78 For the year ended December 31, 2017, stock-based compensation expense applicable to the stock options was $65,000. There was no stock-based compensation expense for the year ended December 31, 2016. 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 price at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period. Restricted stock awarded in 2017 was at no cost to the awardee. The following table presents the activity in restricted stock awards under the Equity Plan for the year ended December 31, 2017: Restricted Stock Awards Weighted Average Grant Price Restricted stock awards at January 1, 2017 — $ — Granted 192,491 14.66 Forfeited (16,252 ) 14.66 Restricted stock awards at December 31, 2017 (all non-vested) 176,239 $ 14.66 Unrecognized compensation cost $ 2,464,000 Weighted average remaining recognition period (years) 4.61 Total expense for the restricted stock awards was $120,000 for the year ended December 31, 2017. There was no expense related to restricted stock awards for the year ended December 31, 2016. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Ownership Plan | 1 5 . EMPLOYEE STOCK OWNERSHIP PLAN The Company maintains an Employee Stock Ownership Plan (“ESOP”), which is a tax-qualified retirement plan providing eligible employees the opportunity to own Bancorp stock. Bancorp granted a loan to the ESOP for the purchase of 469,498 shares of its common stock at $10.00 per share. The loan is payable annually over 25 years with interest at the prime rate to be reset each January 1 st st |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Share Repurchase Program | 16 . SHARE REPURCHASE PROGRAM In September 2017, the Company’s Board of Directors adopted a share repurchase program under which the Company may repurchase up to 10%, or 586,854 shares of its then outstanding common shares. Repurchases under the program may be made in open market or in privately negotiated transactions and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. Any repurchased shares will be held by the Company as authorized but unissued shares. The repurchase program may be suspended or terminated at any time without prior notice, and it will expire on September 14, 2018. As of December 31, 2017, the Company had repurchased 10,000 shares at a cost of $149,000 in connection with this program. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 7 . COMMITMENTS AND CONTINGENCIES In the normal course of business, there are outstanding commitments and contingencies which are not reflected in the accompanying consolidated financial statements. Lease commitments Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2017, future minimum rent commitments are as follows: Years Ending December 31, Amount (In thousands) 2018 $ 867 2019 858 2020 822 2021 658 2022 526 Thereafter 95 $ 3,826 The leases contain options to extend for periods of three to ten years. The cost of unexercised options periods is not included above. Total rent expense for the years ended December 31, 2017 and 2016 amounted to $883,000 and $568,000, respectively. Loan commitments The Company is a 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 extend credit. These instruments involve, to varying degrees, elements of market, credit and interest rate risk which are not recognized in the consolidated financial statements. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. At December 31, 2017 and 2016, the following financial instruments were outstanding whose contract amounts represent credit risk: 2017 2016 (In thousands) Commitments to originate loans $ 35,549 $ 35,682 Unused lines and letters of credit 39,968 37,045 Unadvanced funds on construction loans 6,967 2,699 Overdraft lines of credit 8,996 9,189 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for lines of credit may expire without being drawn upon. Therefore, 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 majority of these financial instruments are collateralized by real estate. Employment Arrangement and Change in Control Agreements The Company has entered into an employment arrangement with its President and Chief Executive Officer that provides for one year of salary continuation in the event his employment is terminated without cause or he resigns for good reason, subject to his providing a release of claims and complying with a non-solicitation and non-disclosure agreement. The Company has also entered into change in control agreements with six members of senior management which provide that if, within two years of a change of control of the Company or the Bank, the executive in involuntarily terminated other than for cause, disability or death, or voluntarily resigns for good reason, the executive will be entitled to a lump-sum payment equal to two times salary plus bonus. Other contingencies The Company is not currently a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, results of operations or cash flows. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | 1 8 . FAIR VALUE OF ASSETS AND LIABILITIES Determination of fair value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. The following methods and assumptions were used by the Company in estimating fair value disclosures: Cash and cash equivalents Certificates of deposit Securities Federal Home Loan Bank of Boston stock Loans held for sale Loans Mortgage servicing rights Deposit liabilities FHLBB advances Accrued interest On-balance-sheet derivatives Off-balance sheet credit-related instruments Assets and liabilities measured at fair value on a recurring basis Assets and liabilities measured at fair value on a recurring basis are summarized below. . Total Level 1 Level 2 Level 3 Fair (In thousands) December 31, 2017 Assets: Securities available for sale: Debt securities $ — $ 61,043 $ — $ 61,043 Mutual fund — 533 — 533 Loans held for sale — 25,390 — 25,390 Derivative loan commitments — 363 — 363 Forward loan sale commitments — 4 — 4 Liabilities: Forward loan sale commitments — 19 — 19 December 31, 2016 Assets: Securities available for sale: Debt securities $ — $ 68,099 $ — $ 68,099 Mutual fund — 538 — 538 Loans held for sale — 30,452 — 30,452 Derivative loan commitments — 617 — 617 Forward loan sale commitments — 65 — 65 Liabilities: Forward loan sale commitments — 47 — 47 There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis during 2017 or 2016. Effective July 1, 2016, the Company elected the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments” for its residential mortgage loans being held for sale in the secondary market. ASC 825 allows for the irrevocable option to elect fair value accounting for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis that may otherwise not be required to be measured at fair value under other accounting standards. The Company elected the fair value option to better match changes in fair values of the loans with changes in the fair value of the forward loan sale commitments which are used to economically hedge them against changes in interest rates between the time an interest rate lock agreement is entered into with the borrower and the time the completed loan is sold. The aggregate fair value of the loans held for sale, the contractual balance of loans held for sale and the gain on loans held for sale totaled $25.4 million, $24.9 million and $467,000, respectively, at December 31, 2017. The gains on loans held for sale is reported as a component of net gains on sale of mortgage loans in the accompanying statement of operations for the year ended December 31, 2017. Assets measured at fair value on a non-recurring basis The Company may also be required, from time to time, to measure certain other assets on a non-recurring basis in accordance with U.S. generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets as of December 31, 2017 and 2016. The gains and losses represent the amounts recorded during 2017 and 2016 on the assets held at year-end. There are no liabilities measured at fair value on a non-recurring basis. Year Ended December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Collateral dependent impaired loans $ — $ — $ 1,630 $ — Mortgage servicing rights — 6,397 — 334 Assets held for sale — — 828 (225 ) Foreclosed real estate — — 193 — $ — $ 6,397 $ 2,651 $ 109 Year Ended December 31, 2016 December 31, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) (In thousands) Collateral dependent impaired loans $ — $ — $ 518 $ — Mortgage servicing rights — 8,486 — (390 ) $ — $ 8,486 $ 518 $ (390 ) Gains or losses applicable to impaired loans are based on the appraised value of the underlying collateral, discounted as necessary due to management’s estimates of charges in market conditions, less estimated selling costs, and are not recorded directly to current earnings but rather as a component in determining the allowance for loan losses. The Company utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of mortgage servicing rights. The model utilizes loan prepayment assumptions based on current market conditions and applies a discount rate based on indicated rates of return required by market participants. During the year ended December 31, 2016 there were partial impairments in certain strata and, as a result, an increase of $390,000 in the valuation allowance was recorded. During the year ended December 31, 2017, the fair value of these strata increased due to slower loan prepayment speeds and a reduction in the discount rate from 14% to 13% resulting in a partial reversal of $334,000 in the valuation allowance. During the year ended December 31, 2017, the Company recognized an impairment write-down of $225,000 upon transferring a branch location scheduled to be sold in 2018 to assets held for sale. The amount of the write-down is based on the terms of an executed purchase and sale agreement. Summary of fair values of financial instruments The estimated fair values, and related carrying amounts, of the Company’s financial instruments are presented below. Certain financial instruments and all non-financial instruments are exempt from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, certificates of deposit and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include mortgagor’s escrow accounts and accrued interest payable. December 31, 2017 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Certificates of deposit $ 2,940 $ 2,932 $ — $ 2,932 $ — Securities available for sale 61,576 61,576 — 61,576 — Loans held for sale 25,390 25,390 — 25,390 — Loans, net 400,373 398,407 — — 398,407 Derivative assets 367 367 — 367 — Financial liabilities: Deposits $ 366,836 $ 365,997 $ — $ 365,997 $ — FHLBB advances 75,954 75,821 — 75,821 — Derivative liabilities 19 19 — 19 — December 31, 2016 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Certificates of deposit $ 3,675 $ 3,687 $ — $ 3,687 $ — Securities available for sale 68,637 68,637 — 68,637 — Loans held for sale 30,452 30,452 — 30,452 — Loans, net 332,991 331,132 — — 331,132 Derivative assets 682 682 — 682 — Financial liabilities: Deposits $ 351,179 $ 350,979 $ — $ 350,979 $ — FHLBB advances 38,667 38,531 — 38,531 — Derivative liabilities 47 47 — 47 — |
Other Non-Interest Expenses
Other Non-Interest Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Other Non-Interest Expenses | 1 9 . OTHER NON-INTEREST EXPENSES Included in other non-interest expenses in 2017 and 2016 are certain items exceeding 1% of the Company’s total interest and non-interest income as follows: 2017 2016 (In thousands) Software amortization and maintenance $ 789 $ 445 Debit card expense 322 310 Directors fees 333 251 |
Restructuring Charge
Restructuring Charge | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charge | 20. RESTRUCTURING CHARGE During the fourth quarter of 2017, the Company finalized a plan to reduce operating expenses through a workforce reduction in its mortgage banking operations to better align staffing levels with the then current volume of residential mortgage loan originations. The workforce reduction involved approximately 8% of the Company’s employees and took effect in 2017. The involuntary termination benefits accrued and charged to expense amounted to $594,000 and have been separately presented in the accompanying statement of operations for the year ended December 31, 2017. |
Parent Company Condensed Financ
Parent Company Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Condensed Financial Statements | 2 1 . PARENT COMPANY CONDENSED FINANCIAL STATEMENTS Financial information as of December 31, 2017 and 2016 and for the years then ended pertaining to only Randolph Bancorp, Inc. is as follows: BALANCE SHEETS December 31, December 31, 2017 2016 Assets Cash and due from banks $ 8,187 $ 8,496 Due from Envision Bank 141 169 Investment in Envision Bank 68,777 70,130 ESOP loan 4,378 4,507 Total assets $ 81,483 $ 83,302 Stockholders' Equity Preferred stock $ — $ — Common stock 61 59 Additional paid-in capital 56,493 56,373 Retained earnings 30,415 32,661 ESOP-Unearned compensation (4,319 ) (4,507 ) Accumulated other comprehensive loss, net of tax (1,167 ) (1,284 ) Total stockholders' equity 81,483 83,302 Total liabilities and stockholders' equity $ 81,483 $ 83,302 STATEMENTS OF OPERATIONS Years Ended December 31, 2017 2016 Total income $ 169 $ 82 Charitable foundation contribution — 2,275 Operating expenses 308 141 Loss before incomes taxes and equity in undistributed net income (loss) of Envision Bank (139 ) (2,334 ) Applicable income taxes — — Loss before equity in undistributed net income (loss) of Envision Bank (139 ) (2,334 ) Equity in undistributed net income (loss) of Envision Bank (1,987 ) 2,797 Net income (loss) $ (2,126 ) $ 463 STATEMENTS OF CASH FLOWS Years Ended December 31, 2017 2016 Cash flows from operating activities: Net income (loss) $ (2,126 ) $ 463 Adjustments to reconcile net income (loss) to net cash used in operating activities: Equity in undistributed net (income) loss of Envision Bank 1,987 (2,797 ) Charitable foundation contribution of Company stock — 1,820 Change in intercompany receivable (139 ) — Net cash used in operating activities (278 ) (514 ) Cash flows from investing activities: Acquisition of First Eastern, net of cash acquired — (11,131 ) Investment in Envision Bank — (29,991 ) ESOP loan — (4,695 ) Payments received on ESOP loan 129 188 Net cash used in investing activities 129 (45,629 ) Cash flows from financing activities: Proceeds from issuance of common stock — 56,868 Stock offering costs — (2,325 ) Stock repurchases (160 ) — Net cash provided by financing activities (160 ) 54,543 Net change in cash and cash equivalents (309 ) 8,400 Cash and cash equivalents at the beginning of year 8,496 96 Cash and cash equivalents at end of year $ 8,187 $ 8,496 Non-cash item: Contribution of net assets of First Eastern to Envision Bank $ — $ 12,407 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 2 2 . SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) First Quarter Second Quarter Third Quarter Fourth Quarter 2017 2016 2017 2016 2017 2016 2017 2016 (Dollars in thousands, except per share data) Interest and dividend income $ 3,884 $ 3,155 $ 4,175 $ 3,260 $ 4,389 $ 3,876 $ 4,492 $ 3,923 Interest expense 400 375 485 388 573 455 652 388 Net interest and dividend income 3,484 2,780 3,690 2,872 3,816 3,421 3,840 3,535 Provision (credit) for loan losses 235 62 100 — — (160 ) 205 200 Gain on sales of mortgage loans 2,038 681 2,520 1,058 2,705 5,401 1,888 3,241 Other non-interest income 1,372 622 914 1,028 866 1,959 660 1,041 Total non-interest income 3,410 1,303 3,434 2,086 3,571 7,360 2,548 4,282 Merger and integration costs 167 117 357 33 7 514 — 316 Other non-interest expense 6,962 3,899 7,071 4,207 7,202 10,138 8,056 7,837 Total non-interest expense 7,129 4,016 7,428 4,240 7,209 10,652 8,056 8,153 Provision (benefit) for income taxes (23 ) 3 (254 ) — 129 — (295 ) 10 Net income (loss) $ (447 ) $ 2 $ (150 ) $ 718 $ 49 $ 289 $ (1,578 ) $ (546 ) Basic and diluted earnings (loss) per share $ (0.08 ) N/A $ (0.03 ) N/A $ 0.01 $ 0.05 $ (0.28 ) $ (0.10 ) Weighted average common shares (basic and diluted) 5,420,356 N/A 5,425,033 N/A 5,429,564 5,403,923 5,597,762 5,413,313 During the fourth quarter of 2017, the Company recognized a restructuring charge of $594,000 in connection with a workforce reduction in its mortgage banking operation intended to better align staffing levels with the current volume of residential mortgage loan originations. In addition, the Company recognized an impairment write-down of $225,000 on a branch office to be closed in 2018 and expenses of $160,000 associated with a planned transfer of loan servicing. Partially offsetting the impact of these expenses was a reduction of $200,000 in the valuation allowance for mortgage servicing rights due to an increase in their fair value. In connection with passage of the Act in December 2017, the Company recognized a tax benefit of $462,000 due to repeal of the AMT. Existing AMT credit carryforwards become refundable in future periods. During the fourth quarter of 2016, the Company resolved the amount of tax reimbursement owed to the seller of First Eastern. A payment of $175,000 was made in December 2016 resulting in a reduction of the bargain purchase gain (included in other non-interest income) recognized in connection with this acquisition. |
Nature of Operations and Basi31
Nature of Operations and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The Bank, which changed its name from Randolph Savings Bank to Envision Bank on March 12, 2018, provides a variety of financial services to individuals and small businesses through its six branch offices in Massachusetts. The Bank’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential and commercial mortgage loans. The Federal Deposit Insurance Corporation (“FDIC”) provides insurance coverage on all deposits up to $250,000 per depositor. As an FDIC insured institution, the Bank is subject to supervision, examination and regulation by the FDIC. Additionally, as a Massachusetts chartered savings bank, the Bank’s depositors are also insured by the Depositors Insurance Fund (“DIF”), a private industry-sponsored insurance company. The DIF insures bank deposits in excess of the FDIC insurance limits. Bancorp entered into a merger agreement in September 2015 under which it would acquire First Eastern Bankshares Corporation (“Bankshares”) and its wholly-owned subsidiary First Federal Savings Bank of Boston (“First Federal;” and together with Bankshares “First Eastern”) in a transaction accounted for as a business combination. First Eastern was actively engaged in the mortgage banking business as an originator, seller and servicer of residential mortgage loans. On July 1, 2016, the Company completed the acquisition of First Eastern. See Note 3 for additional information. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Randolph Bancorp, Inc. and its wholly-owned subsidiary, Envision Bank (together, the “Company”). The Bank has subsidiaries involved in owning investment securities and real estate properties and a subsidiary which provides loan closing services. All intercompany accounts and transactions have been eliminated in consolidation. The following significant accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (“GAAP”) and are used in preparing and presenting these consolidated financial statements. |
Use of Estimates | Use of estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses, mortgage servicing rights, deferred tax assets and fair value measurements. |
Cash and Cash Equivalents | Cash and cash equivalents Cash equivalents include amounts due from banks, federal funds sold on a daily basis and interest-bearing deposits with original maturities of ninety days or less. |
Certificates of Deposit | Certificates of deposit Certificates of deposit have original maturities ranging from one to five years and are carried at cost. |
Fair Value Hierarchy | Fair value hierarchy The Company groups its assets and liabilities that are measured at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Valuations are obtained from readily available pricing sources. Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include those for which the value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Transfers between levels are recognized at the end of a reporting period, if applicable. |
Securities | Securities All securities are classified as available for sale and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income/loss. Purchase premiums and discounts are recognized in interest income using the level yield method over the terms of the securities. Anticipated prepayments on mortgage-backed securities are used in applying this method. Gains and losses on the sale of securities are recorded on the trade date and are determined using the weighted average cost method for mutual funds and the specific identification method for other securities. On a quarterly basis, the Company evaluates all securities with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other than temporary (“OTTI”). OTTI is required to be recognized (1) if the Company intends to sell the security; (2) if 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) for debt securities, if 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 decline in fair value is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income/loss, net of applicable taxes. Because the Company’s assessments are based on available factual information as well as subjective information, the determination as to whether an OTTI exists and, if so, the amount of impairment, is subjective and, therefore, the timing and amount of OTTI constitute material estimates that are subject to significant change. |
Federal Home Loan Bank Stock | Federal Home Loan Bank stock The Bank, as a member of the Federal Home Loan Bank of Boston (“FHLBB”), is required to maintain an investment in capital stock of the FHLBB. Based on redemption provisions of the FHLBB, the stock has no quoted market value and is carried at cost. The Company periodically evaluates for impairment based on ultimate recovery of its cost basis in the FHLBB stock. |
Loans Held for Sale | Loans held for sale The origination of residential mortgage loans is an integral part of the Company’s business. The Company generally sells its originations of such loans in the secondary market to either government-sponsored enterprises (“GSEs”) or other financial institutions. The servicing of loans sold to GSEs is initially retained while loans sold to other financial institutions are done so on a servicing released basis. From time-to-time, the rights to service loans for the GSEs are sold on a bulk basis. Gains and losses on the sales of these loans are determined using the specific identification method. In determining the amount of the gain or loss the Company takes into consideration the direct costs of originating the loan. Also included in the net gain on sales of mortgage loans as presented in the accompanying statements of operations are fair value adjustments for mortgage banking derivatives (interest rate lock commitments with borrowers and forward loan sale commitments with investors) and loans held for sale. Effective July 1, 2016, the Bank elected to utilize the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments” for its residential mortgage loans being held for sale in the secondary market. Fair value is determined based on either commitments in effect from investors or prevailing market price and include the value of mortgage servicing rights. The Bank elected the fair value option to better match changes in the fair value of the loans with changes in the fair value of the forward loan sale commitments which are used to economically hedge them against changes in interest rates between the time an interest rate lock agreement is entered into with the borrower and the time the loan is sold. |
Derivative Financial Instruments | Derivative financial instruments Derivative loan commitments Mortgage loan commitments (interest rate locks) qualify as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value, including the value of mortgage servicing rights on the consolidated balance sheets in other assets and other liabilities with changes in fair value recorded in the net gain on sale of mortgage loans. In estimating fair value, the Company assigns a probability to a loan commitment becoming a closed loan based on historical experience. Changes in the fair values of the loan commitments are recognized based on changes in the fair value of the underlying mortgage loan due to interest rate changes, changes in the probability the derivative loan commitment will be exercised, and the passage of time. Forward loan sale commitments The Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery forward loan sale commitments are accounted for as derivative instruments, and are recognized at fair value on the consolidated balance sheets in other assets and other liabilities with changes in fair value recorded in the net gain on sale of mortgage loans. Fair values for forward loan sale commitments are based on changes in the fair values of the underlying loans. |
Loans | Loans The Company grants residential real estate, commercial real estate, construction, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans in eastern Massachusetts and Rhode Island. The ability of the Company’s borrowers to honor their contracts is affected by real estate values and general economic conditions in these markets. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and net deferred loan origination fees and costs and purchase premiums. Interest income is accrued on the unpaid principal balance. Certain direct loan origination costs and purchase premiums, net of origination fees, are deferred and recognized in interest income using the level yield method without anticipating prepayments. Interest is not accrued on loans which are ninety days or more past due, or when, in the judgment of management, the collectability of the principal or interest becomes doubtful. Past due status is based on contractual terms of the loan. Interest income previously accrued on such loans is reversed against current period earnings. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for loan losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility 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 and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as either additional information becomes available or circumstances change. The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans (general component) and an analysis of certain individual loans for impairment (allocated component). General component The general component of the allowance for loan losses covers loans that are collectively evaluated for impairment and is based on historical loss experience adjusted for qualitative factors stratified by loan segments. Management uses a rolling average of historical losses based on a trailing 48 month time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is supplemented by 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; national and local economic trends and conditions, regulatory and legal factors; and risk rating concentrations. 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: Residential one-to-four family real estate – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent. All loans in this segment are collateralized by one-to-four family owner, and non-owner-occupied, residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Second mortgages and home equity lines of credit (HELOC) – Loans in this segment are primarily secured by second-position liens, and the Company may or may not also have a first-position lien. Regardless of which creditor is in first position, the Company does not originate loans with a combined loan-to-value ratio greater than 80 percent. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate – Loans in this segment consist of owner-occupied and non-owner-occupied property throughout Massachusetts and Rhode Island. The underlying cash flows generated by the operating entities of owner-occupied real estate support the associated debt. Rental cash flows, for which management obtains periodic rent rolls, support the debt associated with non-owner-occupied real estate and can be negatively impacted by increased vacancy rates. Construction – Loans in this segment primarily include residential real estate development loans for which payment is derived from sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial and Industrial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, would have an effect on the credit quality in this segment. Consumer – Loans in this segment primarily include personal unsecured loans, refinanced student loans and auto loans purchased from third party lenders. Repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component of the allowance for loan losses relates to loans that are individually classified as impaired. Residential real estate, commercial and industrial, commercial real estate and construction loans are evaluated for impairment on a loan-by-loan basis. Impairment is measured 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 are lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans or second mortgages and HELOCs for impairment disclosures, unless such loans are 90 days past due or are classified as a troubled debt restructuring. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired. |
Bank-owned Life Insurance | Bank-owned life insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at their cash surrender value net of charges or other amounts that are probable at settlement. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income in the consolidated statements of operations and are not subject to income taxes, unless such policies are surrendered prior to the death of the insured individuals. |
Mortgage Servicing Rights | Mortgage servicing rights The Company services mortgage loans for others. Mortgage servicing rights are recognized as separate assets at fair value when rights are acquired through purchase or through sale of financial assets. Capitalized servicing rights are amortized into mortgage servicing income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income, using market-based assumptions. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. Changes in the valuation allowance, if any, are reported in mortgage servicing income. |
Premises and Equipment | Premises and equipment Land is carried at cost. Buildings, equipment and leasehold improvements are stated at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Premises and equipment held for sale are stated at the lower of amortized cost or fair value less costs to sell. |
Transfers of Financial Assets | Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan. In order to be eligible for sales treatment, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties, and no loan holder can have the right to pledge or exchange the entire loan. In certain cases, the Company may have an obligation to repurchase mortgage loans sold to third parties and to refund fees to the purchaser if a payment default or prepayment occurs, in each case within a prescribed time period not exceeding four months after the sale date, or in the case of a violation of its representations and warranties under the provisions of its loan sale agreements. The Company evaluates its obligations under these provisions and recognizes a liability for the fair value of its recourse obligations. At December 31, 2017 and 2016, the Company determined that its obligations in connection with the recourse provisions of its loan sale agreements were insignificant. |
Foreclosed Assets | Foreclosed assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations, changes in the valuation allowance and any direct write-downs are included in foreclosed real estate expense. |
Supplemental Retirement Plans | Supplemental retirement plan The Company accounts for its supplemental retirement plan using an actuarial model that allocates cost over the service period of participants in the plan. The Company accounts for the over-funded or under-funded status of the plan as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income/loss. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is computed based on the number of shares allocated to participants during the period multiplied by the average fair market value of the Company’s shares. This expense is recognized ratably throughout the year based on the expected allocation of shares for the year. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity. The difference between the average fair market value and cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. |
Stock-Based Compensation | Stock-based Compensation The fair value of restricted stock and stock options is determined on the date of grant and amortized to compensation expense with a corresponding increase to additional paid-in capital over the required service period, but in no event beyond the date of an employee’s or director’s date of termination. Forfeitures of unvested awards and grants are recorded as incurred. |
Advertising Costs | Advertising costs Advertising costs are expensed as incurred. |
Income Taxes | Income taxes Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. A valuation allowance is established against deferred tax assets when, based upon available evidence including historical and projected taxable income, that some or all of the deferred tax assets will not be realized. A tax position is recognized as a benefit if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company does not have any uncertain tax positions at December 31, 2017 and 2016 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2017 and 2016. |
Comprehensive Income (Loss) | Comprehensive income (loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities are reported as a separate component of equity, such items, along with net income (loss), are components of comprehensive income (loss). The components of accumulated other comprehensive loss (“AOCI”), included in stockholders’ equity, are as follows: December 31, December 31, 2017 2016 (In thousands) Securities available for sale: Net unrealized loss $ (624 ) $ (698 ) Tax effect (313 ) (423 ) Net-of-tax amount (937 ) (1,121 ) Supplemental retirement plan Unrecognized net actuarial loss (667 ) (679 ) Unrecognized net prior service credit 484 573 (183 ) (106 ) Tax effect (47 ) (57 ) Net-of-tax amount (230 ) (163 ) Accumulated other comprehensive loss $ (1,167 ) $ (1,284 ) In 2018, the Company expects to recognize $89,000 in prior service credits and $41,000 in net actuarial losses as components of cost for the supplemental retirement plan. These amounts are included in accumulated other comprehensive income (loss) at December 31, 2017. Prior service credits and net actuarial gains and losses are amortized to periodic pension cost over varying periods based on the plan participants to whom they relate. |
Segment Reporting | Segment reporting While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a company-wide basis. Discrete financial information is not available other than on a company-wide basis. Therefore, Company management has determined there to be a single segment for financial reporting purposes at December 31, 2017 and 2016. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share represents income (loss) available to common stockholders divided by the weighted average of common shares outstanding during the period. Unvested restricted shares of common stock having dividend rights are treated as “participating securities” and, accordingly, are considered outstanding in computing basic earnings (loss) per share. Unallocated ESOP shares are not considered outstanding in computing earnings (loss) per share. Earnings per share is not presented herein for the year ended December 31, 2016 as common stock was not outstanding for the entire year. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential shares had been issued. Stock options represent potential dilutive shares with the number of such shares computed using the treasury method. No potential dilutive shares were considered in the computation of loss per share in 2017 as the impact would be anti-dilutive. |
Business Combinations | Business combinations We account for business combinations under the acquisition method of accounting. The application of this method of accounting requires the use of significant estimates and assumptions in the determination of the fair value of tangible and identified intangible assets acquired and liabilities assumed in order to properly allocate purchase price consideration between assets from those that are recorded as goodwill. Our estimates of the fair values of assets acquired and liabilities assumed are based upon assumptions that we believe to be reasonable, and whenever necessary, include assistance from independent third-party appraisal and valuation firms. Costs incurred to consummate a business combination are expensed as incurred. |
Recent Accounting Pronouncements | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers In February 2016, FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses In April 2017, the FASB issued ASU 2017-08 Receivables – Non-refundable Fees and Other Costs In February 2018, the FASB issued ASU 2018-02 Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2016 consolidated financial statements in order to conform to the presentations used in the 2017 consolidated financial statements. Such reclassifications had no impact on net income as presented in such financial statements . |
Nature of Operations and Basi32
Nature of Operations and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Components of Accumulated Other Comprehensive Loss (AOCI) and Related Tax Effects | The components of accumulated other comprehensive loss (“AOCI”), included in stockholders’ equity, are as follows: December 31, December 31, 2017 2016 (In thousands) Securities available for sale: Net unrealized loss $ (624 ) $ (698 ) Tax effect (313 ) (423 ) Net-of-tax amount (937 ) (1,121 ) Supplemental retirement plan Unrecognized net actuarial loss (667 ) (679 ) Unrecognized net prior service credit 484 573 (183 ) (106 ) Tax effect (47 ) (57 ) Net-of-tax amount (230 ) (163 ) Accumulated other comprehensive loss $ (1,167 ) $ (1,284 ) |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Cash Consideration Paid, and Fair Values of Assets Acquired and Liabilities Assumed | The results of First Eastern’s operations are included in the Company’s consolidated statement of operations from the date of acquisition. First Eastern’s assets and liabilities were recorded at their fair value as of the date of acquisition based on management’s estimates using currently available information. Cash consideration paid, and fair values of First Eastern’s assets acquired and liabilities assumed, along with the resulting bargain purchase gain, are summarized in the following table (in thousands): Fair Value As Acquired Adjustments As Recorded (In thousands) Cash and cash equivalents $ 2,951 $ — $ 2,951 Loans held for sale 26,209 450 (a) 26,659 Loans 30,824 482 (b) 31,306 Mortgage servicing rights 4,396 1,820 (c) 6,216 Premises and equipment 1,566 1,534 (d) 3,100 Core deposit intangible — 118 (e) 118 Goodwill 789 (789 ) (f) — Other assets 2,046 (55 ) (g) 1,991 Deposits (41,737 ) (53 ) (h) (41,790 ) Federal Home Loan Bank of Boston advances (13,128 ) (60 ) (h) (13,188 ) Other liabilities (1,917 ) (88 ) (i) (2,005 ) Total identifiable net assets $ 11,999 $ 3,359 15,358 Cash consideration paid to seller 14,082 Bargain purchase gain $ 1,276 Explanation of the fair value adjustments is as follows: (a) The adjustment represents the write-up of the book value of loans held for sale to their estimated fair value based on current selling prices, including the value of their servicing rights. (b) The adjustment represents the write-up of the book value of loans, to their estimated fair value based on current interest rates and expected cash flows, which includes an estimate of expected loan losses inherent in the portfolio. The balance of impaired loans was not significant. (c) The adjustment represents the write-up of the book value of mortgage servicing rights associated with $789.3 million of serviced loans to their estimated fair value based on an independent appraisal. The fair value was determined based on the discounted present value of estimated future net servicing income using market-based assumptions including prepayment speeds, costs of servicing, risk characteristics and interest rates. (d) The adjustment represents the write-up of the Boston retail branch based on an independent appraisal. (e) This amount represents the estimated fair value of core deposit relationships (equal to 1.1% of core deposits) based on an independent appraisal. (f) The adjustment eliminates existing goodwill. (g) The adjustment eliminates deferred origination costs for loans-in-process. (h) The adjustments represent the write-up of the book value of term certificate accounts and FHLB advances based on interest rates currently offered on instruments having similar remaining maturities. (i) The adjustment represents the fair value of forward loan sale commitments written on a best efforts basis. |
Summary of Unaudited Pro Forma Financial Information | Unaudited pro forma financial information for the year ended December 31, 2016 is as follows (in thousands): Net Interest Income $ 13,463 Non-interest Income 20,539 Net Income 1,658 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities | The amortized cost and fair value of securities available for sale, including gross unrealized gains and losses, are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) December 31, 2017 Debt securities: U.S. Government-sponsored enterprises $ 3,999 $ 50 $ (24 ) $ 4,025 Corporate 2,005 27 (8 ) 2,024 Municipal 12,707 179 (18 ) 12,868 Residential mortgage-backed securities: U.S. Government-sponsored enterprises 18,729 118 (450 ) 18,397 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises 14,451 13 (403 ) 14,061 U.S. Government-guaranteed 2,132 — (6 ) 2,126 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 1,871 12 (5 ) 1,878 U.S. Government-guaranteed 5,760 4 (100 ) 5,664 Total debt securities 61,654 403 (1,014 ) 61,043 Mutual fund 545 — (12 ) 533 Total securities available for sale $ 62,199 $ 403 $ (1,026 ) $ 61,576 December 31, 2016 Debt securities: U.S. Government-sponsored enterprises $ 3,999 $ 92 $ (10 ) $ 4,081 Corporate 3,044 54 (18 ) 3,080 Municipal 13,857 254 (56 ) 14,055 Residential mortgage-backed securities: U.S. Government-sponsored enterprises 21,130 172 (580 ) 20,722 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises 14,676 56 (554 ) 14,178 U.S. Government-guaranteed 9,589 12 (144 ) 9,457 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 2,127 28 — 2,155 U.S. Government-guaranteed 368 3 — 371 Total debt securities 68,790 671 (1,362 ) 68,099 Mutual fund 545 — (7 ) 538 Total securities available for sale $ 69,335 $ 671 $ (1,369 ) $ 68,637 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of debt securities by contractual maturity at December 31, 2017 are presented below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In thousands) Within 1 year $ 2,078 $ 2,085 After 1 year through 5 years 14,377 14,525 After 5 years through 10 years 2,256 2,307 18,711 18,917 Mortgage-backed securities and collaterlized mortgage obligations 42,943 42,126 $ 61,654 $ 61,043 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: Less Over Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value December 31, 2017 (In thousands) Debt securities: U.S. Government-sponsored enterprises $ — $ — $ (24 ) $ 19,676 Corporate — — (8 ) 988 Municipal (11 ) 1,919 (7 ) 479 Residential mortgage-backed securities: U.S. Government-sponsored enterprises (1 ) 1,623 (449 ) 13,163 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises — — (403 ) 8,805 U.S. Government-guaranteed (6 ) 2,126 — — Collateralized mortgage obligations: U.S. Government-sponsored enterprises (5 ) 678 — — U.S. Government-guaranteed (1 ) 295 (99 ) 3,756 Total debt securities (24 ) 6,641 (990 ) 46,867 Mutual fund — — (12 ) 533 $ (24 ) $ 6,641 $ (1,002 ) $ 47,400 December 31, 2016 Debt securities: U.S. Government-sponsored enterprises $ (10 ) $ 1,990 $ — $ — Corporate (14 ) 519 (4 ) 996 Municipal (46 ) 3,310 (10 ) 477 Residential mortgage-backed securities: U.S. Government-sponsored enterprises (580 ) 16,261 — — Commercial mortgage-backed securities: U.S. Government-sponsored enterprises (554 ) 8,766 — — U.S. Government-guaranteed (144 ) 5,927 — — Total debt securities (1,348 ) 36,773 (14 ) 1,473 Mutual fund (7 ) 538 — — $ (1,355 ) $ 37,311 $ (14 ) $ 1,473 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Loan Portfolio | A summary of the loan portfolio is as follows: December 31, 2017 2016 (In thousands) Mortgage loans on real estate: Residential: One-to-four family $ 198,475 $ 179,025 Home equity loans and lines of credit 38,968 35,393 Commercial 101,755 88,394 Construction 25,357 23,629 364,555 326,441 Commercial and industrial 21,766 2,067 Consumer 16,337 6,578 Total loans 402,658 335,086 Allowance for loan losses (3,737 ) (3,271 ) Net deferred loan costs and fees, and purchase premiums 1,452 1,176 $ 400,373 $ 332,991 |
Summary of Changes in Loans to Directors, Executive Officers and Affiliates | The following table summarizes the changes in loans to directors, executive officers and their affiliates for the years ended December 31, 2017 and 2016: 2017 2016 (In thousands) Balance at beginning of the year $ — $ 32 New loans — — Repayments — (32 ) Balance at end of year $ — $ — |
Summary of Activity in the Allowance for Loan Losses by Loan Category | The following table presents activity in the allowance for loan losses, by loan category, for the years ended December 31, 2017, and 2016 and allocation of the allowance to each category as of December 31, 2017 and 2016: Second Residential Mortgages Commercial Commercial 1-4 Family and HELOC Real Estate Construction and Industrial Consumer Total (In thousands) Allowance for loan losses Balance at December 31, 2015 $ 1,076 $ 512 $ 1,367 $ 159 $ 72 $ 53 $ 3,239 Provision (credit) for loan losses (66 ) (76 ) 43 66 (20 ) 156 103 Loans charged-off — — — — (15 ) (81 ) (96 ) Recoveries 8 — — — — 17 25 Balance at December 31, 2016 1,018 436 1,410 225 37 145 3,271 Provision (credit) for loan losses (187 ) (77 ) 210 126 263 205 540 Loans charged-off — — — — — (153 ) (153 ) Recoveries 23 — — — 35 21 79 Balance at December 31, 2017 $ 854 $ 359 $ 1,620 $ 351 $ 335 $ 218 $ 3,737 |
Summary of Additional Information Pertaining to the Allowance for Loan Losses | December 31, 2017 Allowance for impaired loans $ 160 $ 1 $ 1 $ — $ — $ — $ 162 Allowance for non-impaired loans 694 358 1,619 351 335 218 3,575 Total allowance for loan losses $ 854 $ 359 $ 1,620 $ 351 $ 335 $ 218 $ 3,737 Impaired loans $ 5,205 $ 276 $ 352 $ — $ — $ — $ 5,833 Non-impaired loans 193,270 38,692 101,403 25,357 21,766 16,337 396,825 Total loans $ 198,475 $ 38,968 $ 101,755 $ 25,357 $ 21,766 $ 16,337 $ 402,658 December 31, 2016 Allowance for impaired loans $ 190 $ 2 $ 8 $ — $ — $ — $ 200 Allowance for non-impaired loans 828 434 1,402 225 37 145 3,071 Total allowance for loan losses $ 1,018 $ 436 $ 1,410 $ 225 $ 37 $ 145 $ 3,271 Impaired loans $ 4,506 $ 276 $ 832 $ — $ — $ — $ 5,614 Non-impaired loans 174,519 35,117 87,562 23,629 2,067 6,578 329,472 Total loans $ 179,025 $ 35,393 $ 88,394 $ 23,629 $ 2,067 $ 6,578 $ 335,086 |
Schedule of Past Due and Non-Accrual Loans by Loan Category | The following table presents past due and non-accrual loans, by loan category, at December 31, 2017 and 2016: 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Non-accrual Loans (In thousands) December 31, 2017 Residential one-to-four family $ 737 $ — $ — $ 737 $ 1,975 Home equity loans and lines of credit 96 — — 96 276 Commercial real estate — — — — — Construction — — — — — Commercial and industrial — — — — — Consumer — — — — — Total $ 833 $ — $ — $ 833 $ 2,251 December 31, 2016 Residential one-to-four family $ 1,168 $ 201 $ — $ 1,369 $ 1,945 Home equity loans and lines of credit 258 — — 258 276 Commercial real estate 400 — — 400 — Construction — — — — — Commercial and industrial — — — — — Consumer 59 — — 59 — Total $ 1,885 $ 201 $ - $ 2,086 $ 2,221 |
Summary of Impaired Loans and Information Related to Average Balances of Impaired Loans and Interest Income Recognized | Further information pertaining to impaired loans, which includes both non-accrual loans and troubled debt restructurings, follows: Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) December 31, 2017 Impaired loans without a valuation allowance: Residential one-to-four family $ 2,685 $ 2,641 $ — Home equity loans and lines of credit 247 247 — Commercial real estate 257 257 — Total 3,189 3,145 — Impaired loans with a valuation allowance: Residential one-to-four family 2,584 2,564 160 Home equity loans and lines of credit 29 29 1 Commercial real estate 95 95 1 Total 2,708 2,688 162 Total impaired loans $ 5,897 $ 5,833 $ 162 December 31, 2016 Impaired loans without a valuation allowance: Residential one-to-four family $ 1,922 $ 1,877 $ — Home equity loans and lines of credit 246 246 — Commercial real estate 270 270 — Total 2,438 2,393 — Impaired loans with a valuation allowance: Residential one-to-four family 2,648 2,629 190 Home equity loans and lines of credit 31 30 2 Commercial real estate 562 562 8 Total 3,241 3,221 200 Total impaired loans $ 5,679 $ 5,614 $ 200 Information related to the average balances of impaired loans and the interest income recognized on such loans, follows: Average Interest Cash Basis Recorded Income Interest Investment Recognized Recognized (In thousands) Year Ended December 31, 2017 Residential one-to-four family $ 4,956 $ 195 $ 82 Home equity loans and lines of credit 276 1 1 Commercial real estate 655 36 — Total $ 5,887 $ 232 $ 83 Year Ended December 31, 2016 Residential one-to-four family $ 4,738 $ 158 $ 56 Home equity loans and lines of credit 260 1 1 Commercial real estate 1,122 51 — Commercial and industrial 5 2 1 Total $ 6,125 $ 212 $ 58 |
Summary of Company's Loans by Risk Rating | The following table presents the Company’s loans by risk rating at December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Commercial Real Construction Commercial and Industrial Commercial Real Construction Commercial and Industrial (In thousands) Loans rated 1 - 3A $ 101,556 $ 25,357 $ 21,766 $ 88,186 $ 23,286 $ 2,067 Loans rated 4 — — — — 343 — Loans rated 5 199 — — 208 — — $ 101,755 $ 25,357 $ 21,766 $ 88,394 $ 23,629 $ 2,067 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transfers And Servicing [Abstract] | |
Summary of Activity In Company's Mortgage Servicing Rights | The following table summarizes the activity in the Company’s mortgage servicing rights for the indicated periods: For the Year Ended December 31, 2017 2016 Mortgage servicing rights: (In thousands) Balance at beginning of year $ 8,486 $ 2,601 Additions through originations 2,310 2,348 Acquisition of First Eastern — 6,216 Amortization (1,071 ) (1,064 ) Sales (3,238 ) (1,191 ) Balance at end of year $ 6,487 $ 8,910 Valuation allowance: Balance at beginning of year $ 424 $ 34 Provision (credit) (334 ) 390 Balance at end of year $ 90 $ 424 Mortgage servicing rights, amortized cost $ 6,397 $ 8,486 Mortgage servicing rights, fair value $ 6,485 $ 8,520 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Summary of Cost and Accumulated Depreciation and Amortization of Premises and Equipment | A summary of the cost and accumulated depreciation and amortization of premises and equipment is as follows: December 31, Estimated 2017 2016 Useful Life (In thousands) (In years) Land and improvements $ 2,525 $ 2,676 Buildings and improvements 4,457 4,176 5 to 50 Leasehold improvements 1,503 393 3 to 5 Equipment 4,765 3,722 3 to 10 Construction-in-progress 101 611 13,351 11,578 Less accumulated depreciation and amortization (4,681 ) (5,298 ) $ 8,670 $ 6,280 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Summary of Deposit Balances by Type | A summary of deposit balances, by type, is as follows: December 31, 2017 2016 (In thousands) Demand deposits $ 62,130 $ 59,646 NOW accounts 44,988 49,112 Money market deposits 63,774 50,956 Regular and other savings 102,528 101,575 Total non-certificate accounts 273,420 261,289 Term certificates less than $250,000 80,538 83,410 Term certificates of $250,000 or more 12,878 6,480 Total certificate accounts 93,416 89,890 $ 366,836 $ 351,179 |
Summary of Term Certificates by Maturity | A summary of term certificates by maturity is as follows: December 31, 2017 December 31, 2016 Weighted Weighted Average Average Maturing during: Amount Rate Amount Rate (Dollars in thousands) 2017 $ — — % $ 55,582 0.83 % 2018 49,550 0.84 15,257 1.01 2019 22,470 1.20 8,703 1.21 2020 8,754 1.44 5,856 1.62 2021 4,873 1.57 4,492 1.52 2022 7,769 1.65 — — $ 93,416 1.09 % $ 89,890 0.98 % |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings from FHLBB | A summary of borrowings from the FHLBB at December 31, 2017 and 2016 is as follows: 2017 2016 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands) Fixed-rate advances maturing: 2017* $ — — % $ 26,932 0.81 % 2018* 69,337 1.55 4,858 1.07 2019 1,500 1.00 1,500 1.00 2020* 3,129 1.52 3,359 1.55 2021* 1,988 1.34 2,018 1.35 $ 75,954 1.54 % $ 38,667 0.94 % * Includes amortizing advances which require monthly principal and interest payments. |
Summary of Outstanding Balances of Short Term Borrowings from FHLBB | Included in FHLBB borrowings at December 31, 2017 and 2016 are overnight advances of $64.7 million and $19.9 million, respectively. Selected information for such short-term borrowings for the years presented is as follows (in 000’s): 2017 2016 Average daily balance $ 34,656 $ 15,497 Maximum outstanding at any month end 64,739 19,898 |
Income Taxes (Table)
Income Taxes (Table) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Allocation of Federal and State Income Taxes Between Current and Deferred Portions | Allocation of federal and state income taxes between current and deferred portions is as follows (in thousands): Years Ended December 31, 2017 2016 Current tax expense (benefit): Federal $ (462 ) $ — State 19 13 Total current tax expense (benefit) (443 ) 13 Deferred tax expense (benefit): Federal (518 ) (550 ) Effect of change in federal tax rate 1,627 — State (23 ) 23 1,086 (527 ) Change in valuation allowance 541 527 Effect of change in federal tax rate - valuation allowance (1,627 ) — Total deferred tax expense — — Total tax expense (benefit) $ (443 ) $ 13 |
Summary of Differences Between Statutory Federal Income Tax Expense (Benefit) and Actual Tax Expense (Benefit) | The reasons for the differences between the statutory federal income tax expense (benefit) and the actual tax expense (benefit) are summarized as follows (in thousands): Years Ended December 31, 2017 2016 Statutory federal tax at 34% $ (874 ) $ 162 Increase (decrease) resulting from: State taxes, net of federal tax effect (3 ) 24 Bank-owned life insurance (52 ) (81 ) Tax exempt income (118 ) (125 ) Dividends received deduction (5 ) (4 ) Change in valuation allowance 541 527 Change in AOCI deferred effect (36 ) (525 ) Effect of change in federal tax rate 1,627 — Effect of change in federal tax rate-valuation allowance (1,627 ) — Other, net 104 35 Total tax expense (benefit) $ (443 ) $ 13 |
Summary of Components of Net Deferred Tax Asset | The components of the net deferred tax asset are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Federal $ 4,436 $ 6,332 State 1,008 875 5,444 7,207 Valuation allowance (3,326 ) (4,652 ) 2,118 2,555 Deferred tax liabilities: Federal (1,447 ) (1,982 ) State (671 ) (573 ) (2,118 ) (2,555 ) Net deferred tax asset $ — $ — |
Summary of Deferred Tax Asset (Liabilities) | The tax effects of items giving rise to deferred tax assets (liabilities) are as follows (in thousands): December 31, 2017 2016 Employee benefit plans $ 951 $ 1,211 Allowance for loan losses 1,050 1,306 Funded status of post-retirement benefits 52 36 Securities available for sale 137 237 Alternative minimum tax credit — 462 Depreciation and amortization 193 179 Net deferred loan origination costs (321 ) (445 ) Mortgage servicing rights (1,624 ) (1,738 ) Net operating loss carryforward 2,171 2,682 Charitable contribution carryforward 702 988 Derivatives (98 ) (254 ) Stock-based compensation 48 — Other, net 65 (12 ) 3,326 4,652 Valuation allowance on deferred tax assets (3,326 ) (4,652 ) Net deferred tax asset $ — $ — |
Minimum Regulatory Capital Re41
Minimum Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking And Thrift [Abstract] | |
Summary of Actual and Minimum Capital Amounts and Ratios | Bancorp Inc.’s and the Bank’s actual and minimum capital amounts and ratios are presented in the following tables. Minimum To Be Well For Minimum Capitalized Under Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Bancorp Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2017 Total capital (to risk weighted assets) $ 86,318 23.9 % $ 28,885 8.0 % N/A N/A Tier 1 capital (to risk weighted assets) 82,581 22.9 21,664 6.0 N/A N/A Common equity Tier 1 capital (to risk weighted assets) 82,581 22.9 16,248 4.5 N/A N/A Tier 1 capital (to average assets) 82,581 16.0 20,663 4.0 N/A N/A December 31, 2016 Total capital (to risk weighted assets) 84,565 28.5 23,762 8.0 N/A N/A Tier 1 capital (to risk weighted assets) 81,294 27.4 17,822 6.0 N/A N/A Common equity Tier 1 capital (to risk weighted assets) 81,294 27.4 13,366 4.5 N/A N/A Tier 1 capital (to average assets) 81,294 16.9 19,277 4.0 N/A N/A Minimum To Be Well For Minimum Capitalized Under Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Bank Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2017 Total capital (to risk weighted assets) $ 73,612 20.4 % $ 28,896 8.0 % $ 36,120 10.0 % Tier 1 capital (to risk weighted assets) 69,875 19.4 21,667 6.0 28,889 8.0 Common equity Tier 1 capital (to risk weighted assets) 69,875 19.4 16,250 4.5 23,472 6.5 Tier 1 capital (to average assets) 69,875 12.4 22,564 4.0 28,205 5.0 December 31, 2016 Total capital (to risk weighted assets) 73,991 24.9 23,763 8.0 29,703 10.0 Tier 1 capital (to risk weighted assets) 70,720 23.8 17,822 6.0 23,762 8.0 Common equity Tier 1 capital (to risk weighted assets) 70,720 23.8 13,366 4.5 19,307 6.5 Tier 1 capital (to average assets) 70,720 14.7 19,277 4.0 24,096 5.0 |
Post-retirement Plans (Tables)
Post-retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Information Pertaining to Activity in Plan | The Company has a master supplemental retirement plan (“Plan”) which covers certain officers and directors of the Company. In 2017 and 2016, the only active participants in the Plan were directors. Information pertaining to activity in the Plan follows: Years Ended December 31, 2017 2016 (In thousands) Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 201 371 Benefits paid (201 ) (371 ) Fair value of plan assets at end of year — — Change in benefit obligation: Benefit obligation at beginning of year 1,836 2,105 Service cost 10 12 Interest cost 53 65 Actuarial loss 26 25 Benefits paid (201 ) (371 ) Benefit obligation at end of year 1,724 1,836 Unfunded status and accrued supplemental pension cost at year end $ (1,724 ) $ (1,836 ) Accumulated benefit obligation at year end $ 1,724 $ 1,836 |
Summary of Assumptions Used to Determine Benefit Obligation | The assumptions used to determine the benefit obligation are as follows: December 31, 2017 2016 Discount rate 2.90 % 3.05 % Annual inflation factor 1.00 % 1.00 % The following assumptions were used to determine the net periodic benefit cost for the years ended December 31, 2017 and 2016: 2017 2016 Discount rate 3.05 % 3.35 % Annual inflation factor 1.00 % 1.00 % |
Summary of Net Periodic Benefit Cost Included in Salaries and Employee Benefits Expense | Net periodic benefit cost, included in other non-interest expenses, attributable to the Plan for the years ended December 31, 2017 and 2016, consists of the following: 2017 2016 (In thousands) Service cost $ 10 $ 12 Interest cost 53 65 Amortization of net actuarial loss 38 30 Amortization of prior service credit (89 ) (25 ) Settlement cost — 59 $ 12 $ 141 |
Summary of Estimated Future Benefit Payments Expected Future Services | Estimated future benefit payments, which reflect expected future services, as appropriate, are as follows: Years Ending December 31, Amount (In thousands) 2018 $ 201 2019 201 2020 201 2021 201 2022 213 2023-2027 898 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Grants of Options to Purchase Shares of Common Stock | In 2017, the Company made the following grants of options to purchase shares of common stock and used the following assumptions in measuring the fair value of such grants: Date of grant October 12, 2017 Options granted 340,387 Vesting period (years) 3-5 Expiration period (years) 10 Expected volatility 23.59% - 29.87% Expected life (years) 3.0 - 6.5 Expected dividend yield — Risk free interest rate 1.66% - 2.06% Option fair value $2.71 - $5.05 |
Summary of Stock Options Grants | A summary of the status of the Company's stock option grants for the year ended December 31, 2017 is presented in the table below: Options Stock Option Grants Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2017 — $ — — $ — Granted 340,387 14.66 9.78 — Forfeited (24,378 ) — — — Balance at December 31, 2017 (all non-vested) 316,009 $ 14.66 9.78 $ 219,374 Exercisable at December 31, 2017 — $ — — — Unrecognized compensation cost $ 1,338,000 Weighted average remaining recognition period (years) 4.78 |
Summary of Activity in Restricted Stock Awards Under Equity Plan | The following table presents the activity in restricted stock awards under the Equity Plan for the year ended December 31, 2017: Restricted Stock Awards Weighted Average Grant Price Restricted stock awards at January 1, 2017 — $ — Granted 192,491 14.66 Forfeited (16,252 ) 14.66 Restricted stock awards at December 31, 2017 (all non-vested) 176,239 $ 14.66 Unrecognized compensation cost $ 2,464,000 Weighted average remaining recognition period (years) 4.61 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rent Commitments | Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2017, future minimum rent commitments are as follows: Years Ending December 31, Amount (In thousands) 2018 $ 867 2019 858 2020 822 2021 658 2022 526 Thereafter 95 $ 3,826 |
Summary of Financial Instruments Outstanding Contract Amounts Represent Credit Risk | At December 31, 2017 and 2016, the following financial instruments were outstanding whose contract amounts represent credit risk: 2017 2016 (In thousands) Commitments to originate loans $ 35,549 $ 35,682 Unused lines and letters of credit 39,968 37,045 Unadvanced funds on construction loans 6,967 2,699 Overdraft lines of credit 8,996 9,189 |
Fair Value of Assets and Liab45
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. . Total Level 1 Level 2 Level 3 Fair (In thousands) December 31, 2017 Assets: Securities available for sale: Debt securities $ — $ 61,043 $ — $ 61,043 Mutual fund — 533 — 533 Loans held for sale — 25,390 — 25,390 Derivative loan commitments — 363 — 363 Forward loan sale commitments — 4 — 4 Liabilities: Forward loan sale commitments — 19 — 19 December 31, 2016 Assets: Securities available for sale: Debt securities $ — $ 68,099 $ — $ 68,099 Mutual fund — 538 — 538 Loans held for sale — 30,452 — 30,452 Derivative loan commitments — 617 — 617 Forward loan sale commitments — 65 — 65 Liabilities: Forward loan sale commitments — 47 — 47 |
Schedule of Assets Measured at Fair Value on a Non-Recurring Basis | The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets as of December 31, 2017 and 2016. The gains and losses represent the amounts recorded during 2017 and 2016 on the assets held at year-end. There are no liabilities measured at fair value on a non-recurring basis. Year Ended December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Collateral dependent impaired loans $ — $ — $ 1,630 $ — Mortgage servicing rights — 6,397 — 334 Assets held for sale — — 828 (225 ) Foreclosed real estate — — 193 — $ — $ 6,397 $ 2,651 $ 109 Year Ended December 31, 2016 December 31, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) (In thousands) Collateral dependent impaired loans $ — $ — $ 518 $ — Mortgage servicing rights — 8,486 — (390 ) $ — $ 8,486 $ 518 $ (390 ) |
Summary of Carrying Values, Estimated Fair Values and Placement in Fair Value Hierarchy of Company's Financial Instruments | The estimated fair values, and related carrying amounts, of the Company’s financial instruments are presented below. Certain financial instruments and all non-financial instruments are exempt from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, certificates of deposit and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include mortgagor’s escrow accounts and accrued interest payable. December 31, 2017 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Certificates of deposit $ 2,940 $ 2,932 $ — $ 2,932 $ — Securities available for sale 61,576 61,576 — 61,576 — Loans held for sale 25,390 25,390 — 25,390 — Loans, net 400,373 398,407 — — 398,407 Derivative assets 367 367 — 367 — Financial liabilities: Deposits $ 366,836 $ 365,997 $ — $ 365,997 $ — FHLBB advances 75,954 75,821 — 75,821 — Derivative liabilities 19 19 — 19 — December 31, 2016 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Certificates of deposit $ 3,675 $ 3,687 $ — $ 3,687 $ — Securities available for sale 68,637 68,637 — 68,637 — Loans held for sale 30,452 30,452 — 30,452 — Loans, net 332,991 331,132 — — 331,132 Derivative assets 682 682 — 682 — Financial liabilities: Deposits $ 351,179 $ 350,979 $ — $ 350,979 $ — FHLBB advances 38,667 38,531 — 38,531 — Derivative liabilities 47 47 — 47 — |
Other Non-Interest Expenses (Ta
Other Non-Interest Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Schedule of Company's Total Interest and Non-Interest Income Included in Other Non-Interest Expenses | Included in other non-interest expenses in 2017 and 2016 are certain items exceeding 1% of the Company’s total interest and non-interest income as follows: 2017 2016 (In thousands) Software amortization and maintenance $ 789 $ 445 Debit card expense 322 310 Directors fees 333 251 |
Parent Company Condensed Fina47
Parent Company Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Financial information as of December 31, 2017 and 2016 and for the years then ended pertaining to only Randolph Bancorp, Inc. is as follows: BALANCE SHEETS December 31, December 31, 2017 2016 Assets Cash and due from banks $ 8,187 $ 8,496 Due from Envision Bank 141 169 Investment in Envision Bank 68,777 70,130 ESOP loan 4,378 4,507 Total assets $ 81,483 $ 83,302 Stockholders' Equity Preferred stock $ — $ — Common stock 61 59 Additional paid-in capital 56,493 56,373 Retained earnings 30,415 32,661 ESOP-Unearned compensation (4,319 ) (4,507 ) Accumulated other comprehensive loss, net of tax (1,167 ) (1,284 ) Total stockholders' equity 81,483 83,302 Total liabilities and stockholders' equity $ 81,483 $ 83,302 |
Statements of Operations | Financial information as of December 31, 2017 and 2016 and for the years then ended pertaining to only Randolph Bancorp, Inc. is as follows: STATEMENTS OF OPERATIONS Years Ended December 31, 2017 2016 Total income $ 169 $ 82 Charitable foundation contribution — 2,275 Operating expenses 308 141 Loss before incomes taxes and equity in undistributed net income (loss) of Envision Bank (139 ) (2,334 ) Applicable income taxes — — Loss before equity in undistributed net income (loss) of Envision Bank (139 ) (2,334 ) Equity in undistributed net income (loss) of Envision Bank (1,987 ) 2,797 Net income (loss) $ (2,126 ) $ 463 |
Statements of Cash Flows | Financial information as of December 31, 2017 and 2016 and for the years then ended pertaining to only Randolph Bancorp, Inc. is as follows: STATEMENTS OF CASH FLOWS Years Ended December 31, 2017 2016 Cash flows from operating activities: Net income (loss) $ (2,126 ) $ 463 Adjustments to reconcile net income (loss) to net cash used in operating activities: Equity in undistributed net (income) loss of Envision Bank 1,987 (2,797 ) Charitable foundation contribution of Company stock — 1,820 Change in intercompany receivable (139 ) — Net cash used in operating activities (278 ) (514 ) Cash flows from investing activities: Acquisition of First Eastern, net of cash acquired — (11,131 ) Investment in Envision Bank — (29,991 ) ESOP loan — (4,695 ) Payments received on ESOP loan 129 188 Net cash used in investing activities 129 (45,629 ) Cash flows from financing activities: Proceeds from issuance of common stock — 56,868 Stock offering costs — (2,325 ) Stock repurchases (160 ) — Net cash provided by financing activities (160 ) 54,543 Net change in cash and cash equivalents (309 ) 8,400 Cash and cash equivalents at the beginning of year 8,496 96 Cash and cash equivalents at end of year $ 8,187 $ 8,496 Non-cash item: Contribution of net assets of First Eastern to Envision Bank $ — $ 12,407 |
Selected Quarterly Financial 48
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Quarterly Financial Data | First Quarter Second Quarter Third Quarter Fourth Quarter 2017 2016 2017 2016 2017 2016 2017 2016 (Dollars in thousands, except per share data) Interest and dividend income $ 3,884 $ 3,155 $ 4,175 $ 3,260 $ 4,389 $ 3,876 $ 4,492 $ 3,923 Interest expense 400 375 485 388 573 455 652 388 Net interest and dividend income 3,484 2,780 3,690 2,872 3,816 3,421 3,840 3,535 Provision (credit) for loan losses 235 62 100 — — (160 ) 205 200 Gain on sales of mortgage loans 2,038 681 2,520 1,058 2,705 5,401 1,888 3,241 Other non-interest income 1,372 622 914 1,028 866 1,959 660 1,041 Total non-interest income 3,410 1,303 3,434 2,086 3,571 7,360 2,548 4,282 Merger and integration costs 167 117 357 33 7 514 — 316 Other non-interest expense 6,962 3,899 7,071 4,207 7,202 10,138 8,056 7,837 Total non-interest expense 7,129 4,016 7,428 4,240 7,209 10,652 8,056 8,153 Provision (benefit) for income taxes (23 ) 3 (254 ) — 129 — (295 ) 10 Net income (loss) $ (447 ) $ 2 $ (150 ) $ 718 $ 49 $ 289 $ (1,578 ) $ (546 ) Basic and diluted earnings (loss) per share $ (0.08 ) N/A $ (0.03 ) N/A $ 0.01 $ 0.05 $ (0.28 ) $ (0.10 ) Weighted average common shares (basic and diluted) 5,420,356 N/A 5,425,033 N/A 5,429,564 5,403,923 5,597,762 5,413,313 |
Conversion - Additional Informa
Conversion - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Jul. 01, 2016 | |
Plan Of Conversion [Line Items] | ||||
Common stock, shares issued | 5,868,726 | 6,034,276 | 5,686,750 | |
Share issued, price per share | $ 10 | |||
Proceeds from issuance of common stock | $ 56,867,500 | $ 56,868,000 | ||
Direct cost of stock offering | $ 2,325,000 | $ 2,004,000 | ||
Contribution to Randolph Charitable Foundation Inc, shares | 181,976 | |||
Contribution to Randolph Charitable Foundation Inc, cash | $ 455,000 | |||
Contribution to Randolph Charitable Foundation Inc, expense recognized | $ 2,274,700 | |||
ESOP [Member] | ||||
Plan Of Conversion [Line Items] | ||||
Common stock, shares issued | 469,498 | |||
Loan repayment period | 25 years |
Nature of Operations and Basi50
Nature of Operations and Basis of Presentation - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)Segmentshares | Dec. 31, 2016USD ($)Segment | |
Summary Of Significant Accounting Policies [Line Items] | ||
Entity information date of corporate name change form Randolph Savings Bank to Envision Bank | Mar. 12, 2018 | |
Cash equivalents maturity period | 90 days | |
Time period to capture relevant loan loss data | 48 months | |
Obligation to repurchase mortgage loans prescribed time period | 4 months | |
Description of tax benefit | A tax position is recognized as a benefit if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |
Uncertain tax positions | $ 0 | $ 0 |
Interest or penalties | $ 0 | $ 0 |
Number of operating segment | Segment | 1 | 1 |
Anti-dilutive securities excluded from computation of earnings (loss) per share | shares | 0 | |
Retained Earnings [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Reclassification adjustment from accumulated other comprehensive income (loss) to retained earnings | $ (120,000) | |
Supplemental Retirement Plan [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Prior service credits | 89,000 | |
Net actuarial losses | $ 41,000 | |
Consumer Loans or Second Mortgages and HELOCs [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Impairment disclosure requirement | Unless such loans are 90 days past due or are subject to a troubled debt restructuring agreement. | |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Certificates of deposit maturity period | 1 year | |
Percentage of tax benefit that likely of being realized on examination with taxing authority | 50.00% | |
Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Certificates of deposit maturity period | 5 years | |
Maximum [Member] | Residential One-to-Four Family Real Estate Portfolio Segment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Loan-to-value ratio | 80.00% | |
Maximum [Member] | Second Mortgages and Home Equity Lines of Credit Property Segment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Loan-to-value ratio | 80.00% |
Nature of Operations and Basi51
Nature of Operations and Basis of Presentation - Components of Accumulated Other Comprehensive Loss (AOCI) and Related Tax Effects (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Total other comprehensive loss | $ (3) | $ (1,545) |
Accumulated other comprehensive loss | (1,167) | (1,284) |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized loss | (624) | (698) |
Other comprehensive Loss, Tax effect | (313) | (423) |
Total other comprehensive loss | (937) | (1,121) |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized loss | (667) | (679) |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized loss | 484 | 573 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized loss | (183) | (106) |
Other comprehensive Loss, Tax effect | (47) | (57) |
Total other comprehensive loss | $ (230) | $ (163) |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) | Jul. 03, 2016USD ($)Office | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||
Business acquisition, date | Jul. 1, 2016 | |||||||||
Reversal of special bonus paid | $ 1,600,000 | |||||||||
Provision (benefit) for income taxes | $ (295,000) | $ 129,000 | $ (254,000) | $ (23,000) | $ 10,000 | $ 3,000 | $ (443,000) | $ 13,000 | ||
Pro Forma [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Provision (benefit) for income taxes | $ 0 | |||||||||
First Eastern Bankshares Corporation [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash payment to acquisition | $ 14,100,000 | |||||||||
Number of residential loan production office | Office | 8 |
Acquisition - Summary of Cash C
Acquisition - Summary of Cash Consideration Paid, and Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jul. 03, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Bargain purchase gain | $ 1,276 | |
First Eastern Bankshares Corporation [Member] | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | $ 2,951 | |
Loans held for sale | 26,659 | |
Loans | 31,306 | |
Mortgage servicing rights | 6,216 | |
Premises and equipment | 3,100 | |
Core deposit intangible | 118 | |
Other assets | 1,991 | |
Deposits | (41,790) | |
Federal Home Loan Bank of Boston advances | (13,188) | |
Other liabilities | (2,005) | |
Total identifiable net assets | 15,358 | |
Cash consideration paid to seller | 14,082 | |
Bargain purchase gain | 1,276 | |
First Eastern Bankshares Corporation [Member] | As Acquired [Member] | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 2,951 | |
Loans held for sale | 26,209 | |
Loans | 30,824 | |
Mortgage servicing rights | 4,396 | |
Premises and equipment | 1,566 | |
Goodwill | 789 | |
Other assets | 2,046 | |
Deposits | (41,737) | |
Federal Home Loan Bank of Boston advances | (13,128) | |
Other liabilities | (1,917) | |
Total identifiable net assets | 11,999 | |
First Eastern Bankshares Corporation [Member] | Fair Value Adjustments [Member] | ||
Business Acquisition [Line Items] | ||
Loans held for sale | 450 | |
Loans | 482 | |
Mortgage servicing rights | 1,820 | |
Premises and equipment | 1,534 | |
Core deposit intangible | 118 | |
Goodwill | (789) | |
Other assets | (55) | |
Deposits | (53) | |
Federal Home Loan Bank of Boston advances | (60) | |
Other liabilities | (88) | |
Total identifiable net assets | $ 3,359 |
Acquisition - Summary of Cash54
Acquisition - Summary of Cash Consideration Paid, and Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) $ in Millions | Jul. 03, 2016USD ($) |
Business Combinations [Abstract] | |
Book value of mortgage servicing rights | $ 789.3 |
Estimated fair value percentage of core deposit relationships | 1.10% |
Acquisition - Summary of Unaudi
Acquisition - Summary of Unaudited Pro Forma Financial Information (Detail) - First Eastern Bankshares Corporation [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |
Net Interest Income | $ 13,463 |
Non-interest Income | 20,539 |
Net Income | $ 1,658 |
Securities Available for Sale -
Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 62,199 | $ 69,335 |
Gross Unrealized Gains | 403 | 671 |
Gross Unrealized Losses | (1,026) | (1,369) |
Fair Value | 61,576 | 68,637 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 61,654 | 68,790 |
Gross Unrealized Gains | 403 | 671 |
Gross Unrealized Losses | (1,014) | (1,362) |
Fair Value | 61,043 | 68,099 |
Debt Securities [Member] | US Government-sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,999 | 3,999 |
Gross Unrealized Gains | 50 | 92 |
Gross Unrealized Losses | (24) | (10) |
Fair Value | 4,025 | 4,081 |
Debt Securities [Member] | Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,005 | 3,044 |
Gross Unrealized Gains | 27 | 54 |
Gross Unrealized Losses | (8) | (18) |
Fair Value | 2,024 | 3,080 |
Debt Securities [Member] | Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,707 | 13,857 |
Gross Unrealized Gains | 179 | 254 |
Gross Unrealized Losses | (18) | (56) |
Fair Value | 12,868 | 14,055 |
Debt Securities [Member] | Residential Mortgage-backed Securities, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,729 | 21,130 |
Gross Unrealized Gains | 118 | 172 |
Gross Unrealized Losses | (450) | (580) |
Fair Value | 18,397 | 20,722 |
Debt Securities [Member] | Commercial Mortgage-backed Securities, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,451 | 14,676 |
Gross Unrealized Gains | 13 | 56 |
Gross Unrealized Losses | (403) | (554) |
Fair Value | 14,061 | 14,178 |
Debt Securities [Member] | Commercial Mortgage Backed Securities, U.S. Government-guaranteed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,132 | 9,589 |
Gross Unrealized Gains | 12 | |
Gross Unrealized Losses | (6) | (144) |
Fair Value | 2,126 | 9,457 |
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,871 | 2,127 |
Gross Unrealized Gains | 12 | 28 |
Gross Unrealized Losses | (5) | |
Fair Value | 1,878 | 2,155 |
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Guaranteed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,760 | 368 |
Gross Unrealized Gains | 4 | 3 |
Gross Unrealized Losses | (100) | |
Fair Value | 5,664 | 371 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 545 | 545 |
Gross Unrealized Losses | (12) | (7) |
Fair Value | $ 533 | $ 538 |
Securities Available for Sale57
Securities Available for Sale - Investments Classified by Contractual Maturity Date (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Available-for-sale Securities, Debt Maturities, Amortized Cost | |
Within 1 year | $ 2,078 |
After 1 year through 5 years | 14,377 |
After 5 years through 10 years | 2,256 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 18,711 |
Mortgage-backed securities and collaterlized mortgage obligations | 42,943 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 61,654 |
Available-for-sale Securities, Debt Maturities, Fair Value | |
Within 1 year | 2,085 |
After 1 year through 5 years | 14,525 |
After 5 years through 10 years | 2,307 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value Total | 18,917 |
Mortgage-backed securities and collaterlized mortgage obligations | 42,126 |
Available-for-sale Securities, Debt Securities, Fair Value Total | $ 61,043 |
Securities Available for Sale58
Securities Available for Sale - Additional Information (Detail) | Dec. 31, 2017USD ($)Debt_Security | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of investment securities pledged as collateral | $ 2,004,000 | $ 2,107,000 |
Number of debt securities with unrealized losses | Debt_Security | 37 | |
Unrealized losses debt securities aggregate depreciation percentage | 1.90% | |
Minimum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities on equity | $ 0 | $ 0 |
Securities Available for Sale59
Securities Available for Sale - Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | $ (24) | $ (1,355) |
Less Than Twelve Months, Fair Value | 6,641 | 37,311 |
Over Twelve Months, Gross Unrealized Losses | (1,002) | (14) |
Over Twelve Months, Fair Value | 47,400 | 1,473 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (24) | (1,348) |
Less Than Twelve Months, Fair Value | 6,641 | 36,773 |
Over Twelve Months, Gross Unrealized Losses | (990) | (14) |
Over Twelve Months, Fair Value | 46,867 | 1,473 |
Debt Securities [Member] | US Government-sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (10) | |
Less Than Twelve Months, Fair Value | 1,990 | |
Over Twelve Months, Gross Unrealized Losses | (24) | |
Over Twelve Months, Fair Value | 19,676 | |
Debt Securities [Member] | Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (14) | |
Less Than Twelve Months, Fair Value | 519 | |
Over Twelve Months, Gross Unrealized Losses | (8) | (4) |
Over Twelve Months, Fair Value | 988 | 996 |
Debt Securities [Member] | Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (11) | (46) |
Less Than Twelve Months, Fair Value | 1,919 | 3,310 |
Over Twelve Months, Gross Unrealized Losses | (7) | (10) |
Over Twelve Months, Fair Value | 479 | 477 |
Debt Securities [Member] | Residential Mortgage-backed Securities, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (1) | (580) |
Less Than Twelve Months, Fair Value | 1,623 | 16,261 |
Over Twelve Months, Gross Unrealized Losses | (449) | |
Over Twelve Months, Fair Value | 13,163 | |
Debt Securities [Member] | Commercial Mortgage-backed Securities, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (554) | |
Less Than Twelve Months, Fair Value | 8,766 | |
Over Twelve Months, Gross Unrealized Losses | (403) | |
Over Twelve Months, Fair Value | 8,805 | |
Debt Securities [Member] | Commercial Mortgage Backed Securities, U.S. Government-guaranteed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (6) | (144) |
Less Than Twelve Months, Fair Value | 2,126 | 5,927 |
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (5) | |
Less Than Twelve Months, Fair Value | 678 | |
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Guaranteed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (1) | |
Less Than Twelve Months, Fair Value | 295 | |
Over Twelve Months, Gross Unrealized Losses | (99) | |
Over Twelve Months, Fair Value | 3,756 | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (7) | |
Less Than Twelve Months, Fair Value | $ 538 | |
Over Twelve Months, Gross Unrealized Losses | (12) | |
Over Twelve Months, Fair Value | $ 533 |
Loans - Summary of Loan Portfol
Loans - Summary of Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 402,658 | $ 335,086 |
Allowance for loan losses | (3,737) | (3,271) |
Net deferred loan costs and fees, and purchase premiums | 1,452 | 1,176 |
Net loans | 400,373 | 332,991 |
Real Estate Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 364,555 | 326,441 |
Commercial Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 101,755 | 88,394 |
Commercial Real Estate Loans [Member] | Real Estate Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 101,755 | 88,394 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 21,766 | 2,067 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 16,337 | 6,578 |
One-to-Four Family [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 198,475 | 179,025 |
One-to-Four Family [Member] | Residential Real Estate [Member] | Real Estate Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 198,475 | 179,025 |
Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member] | Real Estate Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 38,968 | 35,393 |
Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 25,357 | 23,629 |
Construction [Member] | Real Estate Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 25,357 | $ 23,629 |
Loans - Additional Information
Loans - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)TDR | Dec. 31, 2016USD ($)TDR | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Servicing loans for participants | $ 5,902,000 | $ 6,197,000 |
Loans past due 90 days or more | 0 | 0 |
Impaired loans, additional funds committed | 0 | |
Troubled debt restructuring amount | 0 | 0 |
Allowances related to troubled debt restructurings | $ 162,000 | 200,000 |
Minimum past due days for loan rating | 90 days | |
Total loans | $ 402,658,000 | 335,086,000 |
Residential Mortgage [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 712,000 | 890,000 |
Residential Mortgage [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,512,000 | 1,471,000 |
Home Equity Loans and Lines of Credit [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 247,000 | 400,000 |
30 - 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings defaulted over 30 days past due | $ 0 | $ 0 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans subject to troubled debt restructurings | TDR | 13 | 13 |
Loans subject to troubled debt restructurings, amount | $ 3,230,000 | $ 2,809,000 |
Residential Real Estate [Member] | Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructuring, interest rate concession period | 3 months | |
Residential Real Estate [Member] | Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructuring, interest rate concession period | 30 years | |
Commercial Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans subject to troubled debt restructurings | TDR | 2 | 3 |
Loans subject to troubled debt restructurings, amount | $ 153,000 | $ 624,000 |
Total loans | 101,755,000 | 88,394,000 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 199,000 | $ 208,000 |
Commercial Real Estate Loans [Member] | Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructuring, interest rate concession period | 1 year |
Loans - Summary of Changes in L
Loans - Summary of Changes in Loans to Directors, Executive Officers and Affiliates (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Receivables [Abstract] | |
Balance at beginning of the year | $ 32 |
Repayments | $ (32) |
Loans - Summary of Activity in
Loans - Summary of Activity in the Allowance for Loan Losses by Loan Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Beginning balance | $ 3,271 | $ 3,239 | $ 3,271 | $ 3,239 | ||||
Provision (credit) for loan losses | $ 205 | $ 100 | 235 | $ 200 | $ (160) | 62 | 540 | 103 |
Loans charged-off | (153) | (96) | ||||||
Recoveries | 79 | 25 | ||||||
Ending balance | 3,737 | 3,271 | 3,737 | 3,271 | ||||
Commercial Real Estate Loans [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Beginning balance | 1,410 | 1,367 | 1,410 | 1,367 | ||||
Provision (credit) for loan losses | 210 | 43 | ||||||
Ending balance | 1,620 | 1,410 | 1,620 | 1,410 | ||||
Commercial and Industrial [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Beginning balance | 37 | 72 | 37 | 72 | ||||
Provision (credit) for loan losses | 263 | (20) | ||||||
Loans charged-off | (15) | |||||||
Recoveries | 35 | |||||||
Ending balance | 335 | 37 | 335 | 37 | ||||
Consumer [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Beginning balance | 145 | 53 | 145 | 53 | ||||
Provision (credit) for loan losses | 205 | 156 | ||||||
Loans charged-off | (153) | (81) | ||||||
Recoveries | 21 | 17 | ||||||
Ending balance | 218 | 145 | 218 | 145 | ||||
One-to-Four Family [Member] | Residential Real Estate [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Beginning balance | 1,018 | 1,076 | 1,018 | 1,076 | ||||
Provision (credit) for loan losses | (187) | (66) | ||||||
Recoveries | 23 | 8 | ||||||
Ending balance | 854 | 1,018 | 854 | 1,018 | ||||
Second Mortgages and HELOC [Member] | Residential Real Estate [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Beginning balance | 436 | 512 | 436 | 512 | ||||
Provision (credit) for loan losses | (77) | (76) | ||||||
Ending balance | 359 | 436 | 359 | 436 | ||||
Construction [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Beginning balance | $ 225 | $ 159 | 225 | 159 | ||||
Provision (credit) for loan losses | 126 | 66 | ||||||
Ending balance | $ 351 | $ 225 | $ 351 | $ 225 |
Loans - Summary of Additional I
Loans - Summary of Additional Information Pertaining to the Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for impaired loans | $ 162 | $ 200 | |
Allowance for non-impaired loans | 3,575 | 3,071 | |
Total allowance for loan losses | 3,737 | 3,271 | $ 3,239 |
Impaired loans | 5,833 | 5,614 | |
Non-impaired loans | 396,825 | 329,472 | |
Total loans | 402,658 | 335,086 | |
Commercial Real Estate Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for impaired loans | 1 | 8 | |
Allowance for non-impaired loans | 1,619 | 1,402 | |
Total allowance for loan losses | 1,620 | 1,410 | 1,367 |
Impaired loans | 352 | 832 | |
Non-impaired loans | 101,403 | 87,562 | |
Total loans | 101,755 | 88,394 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for non-impaired loans | 335 | 37 | |
Total allowance for loan losses | 335 | 37 | 72 |
Non-impaired loans | 21,766 | 2,067 | |
Total loans | 21,766 | 2,067 | |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for non-impaired loans | 218 | 145 | |
Total allowance for loan losses | 218 | 145 | 53 |
Non-impaired loans | 16,337 | 6,578 | |
Total loans | 16,337 | 6,578 | |
One-to-Four Family [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for impaired loans | 160 | 190 | |
Allowance for non-impaired loans | 694 | 828 | |
Total allowance for loan losses | 854 | 1,018 | 1,076 |
Impaired loans | 5,205 | 4,506 | |
Non-impaired loans | 193,270 | 174,519 | |
Total loans | 198,475 | 179,025 | |
Second Mortgages and HELOC [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for impaired loans | 1 | 2 | |
Allowance for non-impaired loans | 358 | 434 | |
Total allowance for loan losses | 359 | 436 | 512 |
Impaired loans | 276 | 276 | |
Non-impaired loans | 38,692 | 35,117 | |
Total loans | 38,968 | 35,393 | |
Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for non-impaired loans | 351 | 225 | |
Total allowance for loan losses | 351 | 225 | $ 159 |
Non-impaired loans | 25,357 | 23,629 | |
Total loans | $ 25,357 | $ 23,629 |
Loans - Schedule of Past Due an
Loans - Schedule of Past Due and Non-Accrual Loans by Loan Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 833 | $ 2,086 |
Non-accrual Loans | 2,251 | 2,221 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 59 | |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 833 | 1,885 |
30 - 59 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 59 | |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 201 | |
One-to-Four Family [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 737 | 1,369 |
Non-accrual Loans | 1,975 | 1,945 |
One-to-Four Family [Member] | 30 - 59 Days Past Due [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 737 | 1,168 |
One-to-Four Family [Member] | 60 - 89 Days Past Due [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 201 | |
Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 96 | 258 |
Non-accrual Loans | 276 | 276 |
Home Equity Loans and Lines of Credit [Member] | 30 - 59 Days Past Due [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 96 | 258 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 400 | |
Commercial Real Estate Loans [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 400 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment without a valuation allowance | $ 3,189 | $ 2,438 |
Unpaid Principal Balance without a valuation allowance | 3,145 | 2,393 |
Recorded Investment with a valuation allowance | 2,708 | 3,241 |
Unpaid Principal Balance with a valuation allowance | 2,688 | 3,221 |
Related Allowance, Total impaired loans | 162 | 200 |
Recorded Investment, Total impaired loans | 5,897 | 5,679 |
Unpaid Principal Balance, Total impaired loans | 5,833 | 5,614 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment without a valuation allowance | 257 | 270 |
Unpaid Principal Balance without a valuation allowance | 257 | 270 |
Recorded Investment with a valuation allowance | 95 | 562 |
Unpaid Principal Balance with a valuation allowance | 95 | 562 |
Related Allowance, Total impaired loans | 1 | 8 |
One-to-Four Family [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment without a valuation allowance | 2,685 | 1,922 |
Unpaid Principal Balance without a valuation allowance | 2,641 | 1,877 |
Recorded Investment with a valuation allowance | 2,584 | 2,648 |
Unpaid Principal Balance with a valuation allowance | 2,564 | 2,629 |
Related Allowance, Total impaired loans | 160 | 190 |
Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment without a valuation allowance | 247 | 246 |
Unpaid Principal Balance without a valuation allowance | 247 | 246 |
Recorded Investment with a valuation allowance | 29 | 31 |
Unpaid Principal Balance with a valuation allowance | 29 | 30 |
Related Allowance, Total impaired loans | $ 1 | $ 2 |
Loans - Summary of Information
Loans - Summary of Information Related to Average Balances of Impaired Loans and Interest Income Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | $ 5,887 | $ 6,125 |
Interest Income Recognized | 232 | 212 |
Cash Basis Interest Recognized | 83 | 58 |
Residential Real Estate [Member] | One-to-Four Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 4,956 | 4,738 |
Interest Income Recognized | 195 | 158 |
Cash Basis Interest Recognized | 82 | 56 |
Residential Real Estate [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 276 | 260 |
Interest Income Recognized | 1 | 1 |
Cash Basis Interest Recognized | 1 | 1 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 655 | 1,122 |
Interest Income Recognized | $ 36 | 51 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 5 | |
Interest Income Recognized | 2 | |
Cash Basis Interest Recognized | $ 1 |
Loans - Summary of Company's Lo
Loans - Summary of Company's Loans by Risk Rating (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 402,658 | $ 335,086 |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 25,357 | 23,629 |
Pass [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 25,357 | 23,286 |
Special Mention [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 343 | |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 101,755 | 88,394 |
Commercial Real Estate Loans [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 101,556 | 88,186 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 199 | 208 |
Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 21,766 | 2,067 |
Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 21,766 | $ 2,067 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Servicing Assets At Amortized Value [Line Items] | ||
Unpaid principal balances of residential mortgage loans serviced for others | $ 771,407,000 | $ 1,046,551,000 |
Discount rate | 13.00% | 14.00% |
Contractually specified servicing fees, net | $ 2,434,000 | $ 1,884,000 |
Minimum [Member] | ||
Servicing Assets At Amortized Value [Line Items] | ||
Projected annual prepayment speed | 6.00% | 6.00% |
Maximum [Member] | ||
Servicing Assets At Amortized Value [Line Items] | ||
Projected annual prepayment speed | 24.00% | 39.00% |
Loan Servicing - Summary of Act
Loan Servicing - Summary of Activity In Company's Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage servicing rights: | ||
Balance at beginning of year | $ 8,486 | $ 2,601 |
Additions through originations | 2,310 | 2,348 |
Amortization | (1,071) | (1,064) |
Sales | (3,238) | (1,191) |
Balance at end of year | 6,487 | 8,910 |
Valuation allowance: | ||
Balance at beginning of year | 424 | 34 |
Provision (credit) | (334) | 390 |
Balance at end of year | 90 | 424 |
Mortgage servicing rights, amortized cost | 6,397 | 8,486 |
Mortgage servicing rights, fair value | $ 6,485 | 8,520 |
First Eastern Bankshares Corporation [Member] | ||
Mortgage servicing rights: | ||
Acquisition of First Eastern | $ 6,216 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Cost and Accumulated Depreciation and Amortization of Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | ||
Land and improvements | $ 2,525 | $ 2,676 |
Buildings and improvements | 4,457 | 4,176 |
Leasehold improvements | 1,503 | 393 |
Equipment | 4,765 | 3,722 |
Construction-in-progress | 101 | 611 |
Property plant and equipment, gross | 13,351 | 11,578 |
Less accumulated depreciation and amortization | (4,681) | (5,298) |
Property plant and equipment, net | $ 8,670 | $ 6,280 |
Buildings and Improvements [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Buildings and Improvements [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 50 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 10 years |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017USD ($)Office | Dec. 31, 2017USD ($)Office | Dec. 31, 2016USD ($) | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense | $ 605,000 | $ 588,000 | |
Leasehold improvements funded by landlord | $ 646,000 | ||
Leasehold improvements allowance amortized period | 5 years | ||
Tenant improvement allowance amortized period | 5 years | ||
Number of branch office relocated | Office | 1 | 1 | |
Net book value | $ 828,000 | $ 828,000 | |
Impairment charge of assets held for sale | $ 225,000 | $ 225,000 |
Deposits - Summary of Deposit B
Deposits - Summary of Deposit Balances by Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Demand deposits | $ 62,130 | $ 59,646 |
NOW accounts | 44,988 | 49,112 |
Money market deposits | 63,774 | 50,956 |
Regular and other savings | 102,528 | 101,575 |
Total non-certificate accounts | 273,420 | 261,289 |
Term certificates less than $250,000 | 80,538 | 83,410 |
Term certificates of $250,000 or more | 12,878 | 6,480 |
Total certificate accounts | 93,416 | 89,890 |
Total deposits | $ 366,836 | $ 351,179 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Brokered deposits | $ 7,100,000 | $ 249,000 |
Deposits - Summary of Term Cert
Deposits - Summary of Term Certificates by Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amount | ||
2,017 | $ 55,582 | |
2,018 | $ 49,550 | 15,257 |
2,019 | 22,470 | 8,703 |
2,020 | 8,754 | 5,856 |
2,021 | 4,873 | 4,492 |
2,022 | 7,769 | |
Total certificate accounts | $ 93,416 | $ 89,890 |
Weighted Average Rate | ||
2,017 | 0.83% | |
2,018 | 0.84% | 1.01% |
2,019 | 1.20% | 1.21% |
2,020 | 1.44% | 1.62% |
2,021 | 1.57% | 1.52% |
2,022 | 1.65% | |
Total | 1.09% | 0.98% |
Borrowings - Summary of Borrowi
Borrowings - Summary of Borrowings from FHLBB (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed-rate advances maturing: | ||
2,017 | $ 26,932 | |
2,018 | $ 69,337 | 4,858 |
2,019 | 1,500 | 1,500 |
2,020 | 3,129 | 3,359 |
2,021 | 1,988 | 2,018 |
Advances from FHLBB, Amount | $ 75,954 | $ 38,667 |
Weighted Average Rate | ||
2,017 | 0.81% | |
2,018 | 1.55% | 1.07% |
2,019 | 1.00% | 1.00% |
2,020 | 1.52% | 1.55% |
2,021 | 1.34% | 1.35% |
Advances from FHLBB, Weighted Average Rate | 1.54% | 0.94% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Overnight advances of FHLBB borrowings | $ 64,700,000 | $ 19,900,000 |
Federal Home Loan Bank advances | 75,954,000 | 38,667,000 |
Correspondent Bank [Member] | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 3,500,000 | |
Federal Home Loan Bank advances | $ 0 | 0 |
FHLBB [Member] | ||
Debt Instrument [Line Items] | ||
Percentage on carrying value of first mortgage loans pledged as collateral | 75.00% | |
Available borrowing capacity | $ 67,564,000 | |
FHLBB [Member] | Commercial Real Estate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Percentage on carrying value of first mortgage loans pledged as collateral | 65.00% | |
FHLBB With Interest Rate Adjusts Daily [Member] | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | $ 4,195,000 | |
Federal Home Loan Bank advances | $ 0 | $ 0 |
FHLBB With Interest Rate Adjusts Daily [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage on total assets for borrowings under line of credit | 2.00% |
Borrowings - Summary of Outstan
Borrowings - Summary of Outstanding Balances of Short Term Borrowings from FHLBB (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank Advances Activity For Year [Abstract] | ||
Average daily balance | $ 34,656,000 | $ 15,497,000 |
Maximum outstanding at any month end | $ 64,739,000 | $ 19,898,000 |
Income Taxes - Allocation of Fe
Income Taxes - Allocation of Federal and State Income Taxes Between Current and Deferred Portions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax expense (benefit): | ||||||||
Federal | $ (462) | |||||||
State | 19 | $ 13 | ||||||
Total current tax expense (benefit) | (443) | 13 | ||||||
Deferred tax expense (benefit): | ||||||||
Federal | (518) | (550) | ||||||
Effect of change in federal tax rate | 1,627 | |||||||
State | (23) | 23 | ||||||
Total deferred federal and state tax expense (benefit) | 1,086 | (527) | ||||||
Change in valuation allowance | 541 | 527 | ||||||
Effect of change in federal tax rate - valuation allowance | (1,627) | |||||||
Total tax expense (benefit) | $ (295) | $ 129 | $ (254) | $ (23) | $ 10 | $ 3 | $ (443) | $ 13 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between Statutory Federal Income Tax Expense (Benefit) and Actual Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ||||||||
Statutory federal tax at 34% | $ (874) | $ 162 | ||||||
Increase (decrease) resulting from: | ||||||||
State taxes, net of federal tax effect | (3) | 24 | ||||||
Bank-owned life insurance | (52) | (81) | ||||||
Tax exempt income | (118) | (125) | ||||||
Dividends received deduction | (5) | (4) | ||||||
Change in valuation allowance | 541 | 527 | ||||||
Change in AOCI deferred effect | (36) | (525) | ||||||
Effect of change in federal tax rate | 1,627 | |||||||
Effect of change in federal tax rate - valuation allowance | (1,627) | |||||||
Other, net | 104 | 35 | ||||||
Total tax expense (benefit) | $ (295) | $ 129 | $ (254) | $ (23) | $ 10 | $ 3 | $ (443) | $ 13 |
Income Taxes - Summary of Dif81
Income Taxes - Summary of Differences Between Statutory Federal Income Tax Expense (Benefit) and Actual Tax Expense (Benefit) (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal tax rate | 34.00% | 34.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax [Line Items] | |||
Alternative minimum tax refundable period | 4 years | ||
Corporate income tax rate | 34.00% | 34.00% | |
Change in valuation allowance | $ 1,627,000 | ||
Charitable contribution carryforward | 2,488,000 | ||
Federal income tax reserve for loan losses | $ 2,033,000 | ||
Percentage of tax reserve for loan losses used for purpose other than to absorb losses subject to taxation | 150.00% | ||
Deferred income tax liability not been provided | $ 571,000 | ||
Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforward | 10,337,000 | ||
Operating Loss Carryforwards Expires on December 31, 2033 [Member] | Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforward | $ 4,745,000 | ||
Operating loss carryforward expiration date | Dec. 31, 2033 | ||
Operating Loss Carryforwards Expires on December 31, 2034 [Member] | Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforward | $ 406,000 | ||
Operating loss carryforward expiration date | Dec. 31, 2034 | ||
Operating Loss Carryforward Expires on December 31, 2035 [Member] | Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforward | $ 1,542,000 | ||
Operating loss carryforward expiration date | Dec. 31, 2035 | ||
Operating Loss Carryforward Expires on December 31, 2036 [Member] | Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforward | $ 501,000 | ||
Operating loss carryforward expiration date | Dec. 31, 2036 | ||
Operating Loss Carryforward Expires on December 31, 2037 [Member] | Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforward | $ 3,143,000 | ||
Operating loss carryforward expiration date | Dec. 31, 2037 | ||
Deferred Tax Assets Charitable Contribution Carryforward Expires on December 31, 2021 [Member] | |||
Income Tax [Line Items] | |||
Charitable contribution carryforward | $ 174,000 | ||
Charitable contributions carryforward expiration years | Dec. 31, 2021 | ||
Scenario Forecast [Member] | |||
Income Tax [Line Items] | |||
Corporate income tax rate | 21.00% | ||
Maximum [Member] | |||
Income Tax [Line Items] | |||
Corporate income tax rate | 35.00% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Net Deferred Tax Asset (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Deferred tax assets, gross | $ 5,444 | $ 7,207 |
Valuation allowance | (3,326) | (4,652) |
Deferred tax assets, net | 2,118 | 2,555 |
Deferred tax liabilities: | ||
Deferred tax liabilities, gross | (2,118) | (2,555) |
Federal [Member] | ||
Deferred tax assets: | ||
Deferred tax assets, gross | 4,436 | 6,332 |
Deferred tax liabilities: | ||
Deferred tax liabilities, gross | (1,447) | (1,982) |
State [Member] | ||
Deferred tax assets: | ||
Deferred tax assets, gross | 1,008 | 875 |
Deferred tax liabilities: | ||
Deferred tax liabilities, gross | $ (671) | $ (573) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Asset (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Employee benefit plans | $ 951 | $ 1,211 |
Allowance for loan losses | 1,050 | 1,306 |
Funded status of post-retirement benefits | 52 | 36 |
Securities available for sale | 137 | 237 |
Alternative minimum tax credit | 462 | |
Depreciation and amortization | 193 | 179 |
Net deferred loan origination costs | (321) | (445) |
Mortgage servicing rights | (1,624) | (1,738) |
Net operating loss carryforward | 2,171 | 2,682 |
Charitable contribution carryforward | 702 | 988 |
Derivatives | (98) | (254) |
Stock-based compensation | 48 | |
Other, net | 65 | (12) |
Deferred tax assets (liabilities) before valuation allowances | 3,326 | 4,652 |
Valuation allowance | $ (3,326) | $ (4,652) |
On-Balance Sheet Derivative I85
On-Balance Sheet Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Loan Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional amount | $ 24,222,000 | $ 32,904,000 |
Derivative Loan Commitments [Member] | Net Gain on Sales of Mortgage Loans [Member] | ||
Derivative [Line Items] | ||
Increase (reductions) in aggregate fair value on derivatives, interest rate lock commitments | 254,000 | 81,000 |
Undesignated Forward Loan Sale Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional amount | 29,613,000 | 29,481,000 |
Undesignated Forward Loan Sale Commitments [Member] | Net Gain on Sales of Mortgage Loans [Member] | ||
Derivative [Line Items] | ||
Increase (reductions) in aggregate fair value on derivatives, interest rate lock commitments | (66,000) | 103,000 |
Other Assets [Member] | Derivative Loan Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative fair value, Asset | 363,000 | 617,000 |
Other Assets [Member] | Undesignated Forward Loan Sale Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative fair value, Asset | 4,000 | 65,000 |
Other Liabilities [Member] | Undesignated Forward Loan Sale Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative fair value, Liability | $ 19,000 | $ 47,000 |
Minimum Regulatory Capital Re86
Minimum Regulatory Capital Requirements - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Common equity tier 1 capital conservation buffer period | 3 years | |
Common equity tier 1 capital conservation buffer with initial phase (as a percent) | 1.25% | 0.625% |
Minimum [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital conservation buffer of common equity tier 1 capital to risk weighted assets ratio (as a percent) | 2.50% |
Minimum Regulatory Capital Re87
Minimum Regulatory Capital Requirements - Summary of Actual and Minimum Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk weighted assets), actual amount | $ 86,318 | $ 84,565 |
Tier 1 capital (to risk weighted assets), actual amount | 82,581 | 81,294 |
Common equity Tier 1 capital (to risk weighted assets), actual amount | 82,581 | 81,294 |
Tier 1 capital (to average assets), actual amount | $ 82,581 | $ 81,294 |
Total capital (to risk weighted assets), actual ratio | 23.90% | 28.50% |
Tier 1 capital (to risk weighted assets), actual ratio | 22.90% | 27.40% |
Common equity Tier 1 capital (to risk weighted assets), actual ratio | 22.90% | 27.40% |
Tier 1 capital (to average assets), actual ratio | 16.00% | 16.90% |
Total capital (to risk weighted assets), for minimum capital adequacy purposes amount | $ 28,885 | $ 23,762 |
Tier 1 capital (to risk weighted assets), for minimum capital adequacy purposes amount | 21,664 | 17,822 |
Common equity Tier 1 capital (to risk weighted assets), for minimum capital adequacy amount | 16,248 | 13,366 |
Common equity Tier 1 capital (to risk weighted assets), for minimum capital adequacy amount | $ 20,663 | $ 19,277 |
Total capital (to risk weighted assets), for minimum capital adequacy purposes ratio | 8.00% | 8.00% |
Tier 1 capital (to risk weighted assets), for minimum capital adequacy purposes ratio | 6.00% | 6.00% |
Common equity Tier 1 capital (to risk weighted assets), for minimum capital adequacy purposes ratio | 4.50% | 4.50% |
Tier 1 capital (to average assets), for minimum capital adequacy purposes ratio | 4.00% | 4.00% |
Bank [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk weighted assets), actual amount | $ 73,612 | $ 73,991 |
Tier 1 capital (to risk weighted assets), actual amount | 69,875 | 70,720 |
Common equity Tier 1 capital (to risk weighted assets), actual amount | 69,875 | 70,720 |
Tier 1 capital (to average assets), actual amount | $ 69,875 | $ 70,720 |
Total capital (to risk weighted assets), actual ratio | 20.40% | 24.90% |
Tier 1 capital (to risk weighted assets), actual ratio | 19.40% | 23.80% |
Common equity Tier 1 capital (to risk weighted assets), actual ratio | 19.40% | 23.80% |
Tier 1 capital (to average assets), actual ratio | 12.40% | 14.70% |
Total capital (to risk weighted assets), for minimum capital adequacy purposes amount | $ 28,896 | $ 23,763 |
Tier 1 capital (to risk weighted assets), for minimum capital adequacy purposes amount | 21,667 | 17,822 |
Common equity Tier 1 capital (to risk weighted assets), for minimum capital adequacy amount | 16,250 | 13,366 |
Common equity Tier 1 capital (to risk weighted assets), for minimum capital adequacy amount | $ 22,564 | $ 19,277 |
Total capital (to risk weighted assets), for minimum capital adequacy purposes ratio | 8.00% | 8.00% |
Tier 1 capital (to risk weighted assets), for minimum capital adequacy purposes ratio | 6.00% | 6.00% |
Common equity Tier 1 capital (to risk weighted assets), for minimum capital adequacy purposes ratio | 4.50% | 4.50% |
Tier 1 capital (to average assets), for minimum capital adequacy purposes ratio | 4.00% | 4.00% |
Total capital (to risk weighted assets), minimum to be well capitalized under prompt corrective action provisions amount | $ 36,120 | $ 29,703 |
Tier 1 capital (to risk weighted assets), minimum to be well capitalized under prompt corrective action provisions amount | 28,889 | 23,762 |
Common equity Tier 1 capital (to risk weighted assets), minimum to be well capitalized under prompt corrective action provisions amount | 23,472 | 19,307 |
Tier 1 capital (to average assets), minimum to be well capitalized under prompt corrective action provisions amount | $ 28,205 | $ 24,096 |
Total capital (to risk weighted assets), minimum to be well capitalized under prompt corrective action provisions ratio | 10.00% | 10.00% |
Tier 1 capital (to risk weighted assets), minimum to be well capitalized under prompt corrective action provisions ratio | 8.00% | 8.00% |
Common equity Tier 1 capital (to risk weighted assets), minimum to be well capitalized under prompt corrective action provisions ratio | 6.50% | 6.50% |
Tier 1 capital (to average assets), minimum to be well capitalized under prompt corrective action provisions ratio | 5.00% | 5.00% |
Post-Retirement Plans - Additio
Post-Retirement Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Other non-interest expense | $ 8,056,000 | $ 7,202,000 | $ 7,071,000 | $ 6,962,000 | $ 7,837,000 | $ 10,138,000 | $ 4,207,000 | $ 3,899,000 | $ 4,075,000 | $ 3,508,000 |
Supplemental Retirement Plan [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Accrued benefits | 607,000 | 654,000 | 607,000 | 654,000 | ||||||
Other non-interest expense | 64,000 | 54,000 | ||||||||
Expected Contributions to the plan | 201,000 | 201,000 | ||||||||
Other non-interest income | 486,000 | |||||||||
Other non-interest expense | 59,000 | |||||||||
Endorsement Split-Dollar Life Insurance Arrangements [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Accrued benefits | $ 419,000 | $ 397,000 | 419,000 | 397,000 | ||||||
Post-retirement benefit expense | $ 22,000 | 26,000 | ||||||||
401(k) Plan [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Description of employees eligibility | The Company maintains a 401(k) Plan whereby each employee reaching the age of 21 automatically becomes a participant in the plan. Employees may contribute up to 15% of their compensation subject to certain limits based on federal tax laws. All employees who have worked for one year or 1,000 hours are eligible for an automatic employer contribution of 3% of employees’ compensation, which includes no vesting period. | |||||||||
Minimum age of employee to become participant | 21 years | |||||||||
Maximum annual contributions per employee, percent | 15.00% | |||||||||
Minimum number of year worked by employees | 1 year | |||||||||
Minimum number of hours worked by employees | 1000 hours | |||||||||
Employer contribution percentage on employees compensation | 3.00% | |||||||||
Automatic employer matching contributions vesting period | 0 years | |||||||||
Employer matching contribution, percent | 50.00% | |||||||||
Employer match of eligible employees contributions percentage | 2.00% | |||||||||
Employer matching contributions vesting period | 4 years | |||||||||
Contribution expense | $ 583,000 | $ 479,000 | ||||||||
401(k) Plan [Member] | Maximum [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Employer contribution percentage on employees compensation | 4.00% |
Post-Retirement Plans - Summary
Post-Retirement Plans - Summary of Information Pertaining to Activity in Plan (Details) - Supplemental Retirement Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets: | ||
Employer contributions | $ 201 | $ 371 |
Benefits paid | (201) | (371) |
Change in benefit obligation: | ||
Benefit obligation at beginning of year | 1,836 | 2,105 |
Service cost | 10 | 12 |
Interest cost | 53 | 65 |
Actuarial loss | 26 | 25 |
Benefits paid | (201) | (371) |
Benefit obligation at end of year | 1,724 | 1,836 |
Unfunded status and accrued supplemental pension cost at year end | (1,724) | (1,836) |
Accumulated benefit obligation at year end | $ 1,724 | $ 1,836 |
Post-Retirement Plans - Summa90
Post-Retirement Plans - Summary of Assumptions Used to Determine Benefit Obligation (Details) - Supplemental Retirement Plan [Member] | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.90% | 3.05% |
Annual inflation factor | 1.00% | 1.00% |
Post-Retirement Plans - Summa91
Post-Retirement Plans - Summary of Net Periodic Benefit Cost Included in Other Non-Interest Expenses Attributable to Plan (Details) - Supplemental Retirement Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 10 | $ 12 |
Interest cost | 53 | 65 |
Amortization of net actuarial loss | 38 | 30 |
Amortization of prior service credit | (89) | (25) |
Settlement cost | 59 | |
Net periodic benefit cost | $ 12 | $ 141 |
Post-Retirement Plans - Summa92
Post-Retirement Plans - Summary of Assumptions Used to Determine Net Periodic Benefit Cost (Details) - Supplemental Retirement Plan [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.05% | 3.35% |
Annual inflation factor | 1.00% | 1.00% |
Post-Retirement Plans - Summa93
Post-Retirement Plans - Summary of Estimated Future Benefit Payments Expected Future Services (Details) - Supplemental Retirement Plan [Member] $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 201 |
2,019 | 201 |
2,020 | 201 |
2,021 | 201 |
2,022 | 213 |
2023-2027 | $ 898 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options term | 10 years | |
Stock-based compensation expense | $ 65,000 | $ 0 |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 120,000 | $ 0 |
Two Thousand Seventeen Stock Option and Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options and awards vesting period | 5 years | |
Two Thousand Seventeen Stock Option and Incentive Plan [Member] | Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares reserved for issuance | 586,872 | |
Stock options term | 10 years | |
Two Thousand Seventeen Stock Option and Incentive Plan [Member] | Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares reserved for issuance | 237,749 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Grants of Options to Purchase Shares of Common Stock (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Date of grant | Oct. 12, 2017 |
Options granted | shares | 340,387 |
Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expiration period (years) | 10 years |
Expected volatility, minimum | 23.59% |
Expected volatility, maximum | 29.87% |
Risk free interest rate, minimum | 1.66% |
Risk free interest rate, maximum | 2.06% |
Minimum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Option fair value | $ 2.71 |
Minimum [Member] | Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period (years) | 3 years |
Expected life (years) | 3 years |
Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Option fair value | $ 5.05 |
Maximum [Member] | Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period (years) | 5 years |
Expected life (years) | 6 years 6 months |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Grants (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Stock Option Grants | |
Beginning Balance | 0 |
Granted | 340,387 |
Forfeited | (24,378) |
Ending Balance | 316,009 |
Exercisable at December 31, 2017 | 0 |
Unrecognized compensation cost | $ | $ 1,338,000 |
Weighted Average Exercise Price | |
Granted | $ / shares | $ 14.66 |
Ending Balance | $ / shares | $ 14.66 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Weighted Average Remaining Contractual Term, Granted | 9 years 9 months 10 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 0 |
Aggregate Intrinsic Value, Outstanding | $ | 219,374 |
Aggregate Intrinsic Value, Exercisable | $ | $ 0 |
Stock Options [Member] | |
Stock Option Grants | |
Weighted average remaining recognition period (years) | 4 years 9 months 10 days |
Stock-Based Compensation - Su97
Stock-Based Compensation - Summary of Activity in Restricted Stock Awards Under Equity Plan (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Restricted Stock Awards | |
Beginning Balance | shares | 0 |
Granted | shares | 192,491 |
Forfeited | shares | (16,252) |
Ending Balance | shares | 176,239 |
Unrecognized compensation cost | $ | $ 2,464,000 |
Weighted Average Grant Price | |
Beginning Balance | $ / shares | $ 0 |
Granted | $ / shares | 14.66 |
Forfeited | $ / shares | 14.66 |
Ending Balance | $ / shares | $ 14.66 |
Restricted Stock [Member] | |
Restricted Stock Awards | |
Weighted average remaining recognition period (years) | 4 years 7 months 9 days |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | |||
Loan repaid term | 25 years | ||
Interest rate | 3.50% | 3.75% | |
Number of allocated shares | 18,780 | ||
Annual allocation of shares, expiration year | 2,040 | ||
ESOP expense | $ 286,000 | $ 257,000 | |
Unallocated shares | 431,938 | 431,938 | |
Unallocated shares, value | $ 6,630,000 | ||
Common Stock [Member] | |||
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | |||
Sale of stock, price per share | $ 10 | ||
The Randolph Savings Charitable Foundation, Inc. [Member] | |||
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | |||
Sale of share in employee stock ownership plan | 469,498 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||
Cost of shares repurchased | $ 160,000 | |
September 2017 Share Repurchase Program [Member] | ||
Class Of Stock [Line Items] | ||
Stock repurchase program percentage of outstanding shares repurchased | 10.00% | |
Number of shares authorized to repurchase | 586,854 | |
Number of shares repurchased | 10,000 | |
Cost of shares repurchased | $ 149,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Rent Commitments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,018 | $ 867 |
2,019 | 858 |
2,020 | 822 |
2,021 | 658 |
2,022 | 526 |
Thereafter | 95 |
Future minimum rent commitments | $ 3,826 |
Commitments and Contingencie101
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)Member | Dec. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | ||
Rent expense | $ | $ 883,000 | $ 568,000 |
Salary continuation term of employment arrangement | 1 year | |
Senior Management [Member] | ||
Commitments And Contingencies [Line Items] | ||
Number of members with change in control agreements | Member | 6 | |
Change in control agreement description of terms | The company provide that if, within two years of a change of control of the Company or the Bank, the executive in involuntarily terminated other than for cause, disability or death, or voluntarily resigns for good reason, the executive will be entitled to a lump-sum payment equal to two times salary plus bonus, except for one executive where the payment is equal to one times salary plus bonus. | |
Minimum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Lease options to extend the period | 3 years | |
Maximum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Lease options to extend the period | 10 years |
Commitments and Contingencie102
Commitments and Contingencies - Summary of Financial Instruments Outstanding Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments to Originate Loans [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | $ 35,549 | $ 35,682 |
Unused Lines and Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | 39,968 | 37,045 |
Unadvanced Funds on Construction Loans [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | 6,967 | 2,699 |
Overdraft Lines of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | $ 8,996 | $ 9,189 |
Fair Value of Assets and Lia103
Fair Value of Assets and Liabilities - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 61,576 | $ 68,637 |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 61,043 | 68,099 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 533 | 538 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 61,576 | 68,637 |
Fair value, Loans held for sale | 25,390 | 30,452 |
Derivative assets | 367 | 682 |
Forward loan sale commitments | 19 | 47 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, Loans held for sale | 25,390 | 30,452 |
Forward loan sale commitments | 19 | 47 |
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 61,043 | 68,099 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 533 | 538 |
Fair Value, Measurements, Recurring [Member] | Derivative Loan Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 363 | 617 |
Fair Value, Measurements, Recurring [Member] | Forward Loan Sale Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | 65 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, Loans held for sale | 25,390 | 30,452 |
Forward loan sale commitments | 19 | 47 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 61,043 | 68,099 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 533 | 538 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Derivative Loan Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 363 | 617 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Forward Loan Sale Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 4 | $ 65 |
Fair Value of Assets and Lia104
Fair Value of Assets and Liabilities - Additional information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 | 0 | 0 | ||||||
Fair value, liabilities, level 1 to level 2 transfers, amount | 0 | 0 | 0 | 0 | ||||||
Fair value, liabilities, level 2 to level 1 transfers, amount | 0 | 0 | 0 | 0 | ||||||
Net gain on sales of mortgage loans | 1,888,000 | $ 2,705,000 | $ 2,520,000 | $ 2,038,000 | 3,241,000 | $ 5,401,000 | $ 1,058,000 | $ 681,000 | 9,151,000 | 10,381,000 |
Liabilities measured at fair value on nonrecurring basis | 0 | $ 0 | 0 | 0 | ||||||
Increased in valuation allowance of mortgage servicing rights | 200,000 | $ 334,000 | $ 390,000 | |||||||
Discount rate | 13.00% | 14.00% | ||||||||
Impairment write-down of assets held for sale | 225,000 | $ 225,000 | ||||||||
Residential Mortgage [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Aggregate fair value of loans held for sale | 25,400,000 | 25,400,000 | ||||||||
Contractual balance of loans held for sale | $ 24,900,000 | 24,900,000 | ||||||||
Net gain on sales of mortgage loans | $ 467,000 |
Fair Value of Assets and Lia105
Fair Value of Assets and Liabilities - Schedule of Assets Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights, fair value | $ 6,485,000 | $ 8,520,000 |
Fair value, Assets held for sale | 828,000 | |
Gains (losses) on assets held, mortgage servicing rights | 334,000 | (390,000) |
Gains (losses) on assets held for sale | (225,000) | |
Gains (Losses) on assets held | 109,000 | (390,000) |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights, fair value | 6,397,000 | 8,486,000 |
Assets, Fair Value Disclosure | 6,397,000 | 8,486,000 |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, Collateral dependent impaired loans | 1,630,000 | 518,000 |
Fair value, Assets held for sale | 828,000 | |
Fair value, Foreclosed real estate | 193,000 | |
Assets, Fair Value Disclosure | $ 2,651,000 | $ 518,000 |
Fair Value of Assets and Lia106
Fair Value of Assets and Liabilities - Summary of Carrying Values, Estimated Fair Values and Placement in Fair Value Hierarchy of Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Securities available for sale | $ 61,576 | $ 68,637 |
Level 2 [Member] | ||
Financial assets: | ||
Certificates of deposit | 2,932 | 3,687 |
Securities available for sale | 61,576 | 68,637 |
Loans held for sale | 25,390 | 30,452 |
Derivative assets | 367 | 682 |
Financial liabilities: | ||
Deposits | 365,997 | 350,979 |
FHLBB advances | 75,821 | 38,531 |
Derivative liabilities | 19 | 47 |
Level 3 [Member] | ||
Financial assets: | ||
Loans, net | 398,407 | 331,132 |
Carrying Amount [Member] | ||
Financial assets: | ||
Certificates of deposit | 2,940 | 3,675 |
Securities available for sale | 61,576 | 68,637 |
Loans held for sale | 25,390 | 30,452 |
Loans, net | 400,373 | 332,991 |
Derivative assets | 367 | 682 |
Financial liabilities: | ||
Deposits | 366,836 | 351,179 |
FHLBB advances | 75,954 | 38,667 |
Derivative liabilities | 19 | 47 |
Fair Value [Member] | ||
Financial assets: | ||
Certificates of deposit | 2,932 | 3,687 |
Securities available for sale | 61,576 | 68,637 |
Loans held for sale | 25,390 | 30,452 |
Loans, net | 398,407 | 331,132 |
Derivative assets | 367 | 682 |
Financial liabilities: | ||
Deposits | 365,997 | 350,979 |
FHLBB advances | 75,821 | 38,531 |
Derivative liabilities | $ 19 | $ 47 |
Other Non-Interest Expenses - A
Other Non-Interest Expenses - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Percentage of certain items exceeding interest and non interest income | 1.00% |
Other Non-Interest Expenses - S
Other Non-Interest Expenses - Schedule of Company's Total Interest and Non-Interest Income Included in Other Non-Interest Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | ||
Software amortization and maintenance | $ 789 | $ 445 |
Debit card expense | 322 | 310 |
Directors fees | $ 333 | $ 251 |
Restructuring Charge - Addition
Restructuring Charge - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | ||
Percentage of workforce reduction | 8.00% | |
Accrued involuntary termination benefits | $ 594,000 | $ 594,000 |
Parent Company Condensed Fin110
Parent Company Condensed Financial Statements - Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Cash and due from banks | $ 3,562 | $ 4,370 | |
Total assets | 531,892 | 481,224 | |
Stockholders' Equity: | |||
Preferred stock | |||
Common stock | 61 | 59 | |
Additional paid-in capital | 56,493 | 56,373 | |
Retained earnings | 30,415 | 32,661 | |
ESOP-Unearned compensation | (4,319) | (4,507) | |
Accumulated other comprehensive loss, net of tax | (1,167) | (1,284) | |
Total stockholders' equity | 81,483 | 83,302 | $ 32,459 |
Total liabilities and stockholders' equity | 531,892 | 481,224 | |
Randolph Bancorp, Inc. and Predecessor Randolph Bancorp [Member] | |||
Assets | |||
Cash and due from banks | 8,187 | 8,496 | |
Due from Envision Bank | 141 | 169 | |
Investment in Envision Bank | 68,777 | 70,130 | |
ESOP loan | 4,378 | 4,507 | |
Total assets | 81,483 | 83,302 | |
Stockholders' Equity: | |||
Preferred stock | |||
Common stock | 61 | 59 | |
Additional paid-in capital | 56,493 | 56,373 | |
Retained earnings | 30,415 | 32,661 | |
ESOP-Unearned compensation | (4,319) | (4,507) | |
Accumulated other comprehensive loss, net of tax | (1,167) | (1,284) | |
Total stockholders' equity | 81,483 | 83,302 | |
Total liabilities and stockholders' equity | $ 81,483 | $ 83,302 |
Parent Company Condensed Fin111
Parent Company Condensed Financial Statements - Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Income Statements Captions [Line Items] | ||||||||||
Total income | $ 4,492 | $ 4,389 | $ 4,175 | $ 3,884 | $ 3,923 | $ 3,876 | $ 3,260 | $ 3,155 | $ 16,940 | $ 14,215 |
Charitable foundation contribution | 2,275 | |||||||||
Income tax expense (benefit) | (295) | 129 | (254) | (23) | 10 | 3 | (443) | 13 | ||
Net income (loss) | $ (1,578) | $ 49 | $ (150) | $ (447) | $ (546) | $ 289 | $ 718 | $ 2 | (2,126) | 463 |
Randolph Bancorp, Inc. and Predecessor Randolph Bancorp [Member] | ||||||||||
Condensed Income Statements Captions [Line Items] | ||||||||||
Total income | 169 | 82 | ||||||||
Charitable foundation contribution | 2,275 | |||||||||
Operating expenses | 308 | 141 | ||||||||
Loss before incomes taxes and equity in undistributed net income (loss) of Envision Bank | (139) | (2,334) | ||||||||
Loss before equity in undistributed net income (loss) of Envision Bank | (139) | (2,334) | ||||||||
Equity in undistributed net income (loss) of Envision Bank | (1,987) | 2,797 | ||||||||
Net income (loss) | $ (2,126) | $ 463 |
Parent Company Condensed Fin112
Parent Company Condensed Financial Statements - Statements of Cash Flows (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ (1,578,000) | $ 49,000 | $ (150,000) | $ (447,000) | $ (546,000) | $ 289,000 | $ 718,000 | $ 2,000 | $ (2,126,000) | $ 463,000 | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Charitable foundation contribution of Company stock | 1,820,000 | ||||||||||
Net cash provided by operating activities | 5,910,000 | 914,000 | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of First Eastern, net of cash acquired | (11,131,000) | ||||||||||
Net cash used in investing activities | (64,056,000) | (31,191,000) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock | $ 56,867,500 | 56,868,000 | |||||||||
Stock offering costs | $ (2,325,000) | (2,004,000) | |||||||||
Stock repurchases | (160,000) | ||||||||||
Net cash provided by financing activities | 52,119,000 | 40,480,000 | |||||||||
Net change in cash and cash equivalents | (6,027,000) | 10,203,000 | |||||||||
Cash and cash equivalents at beginning of year | 14,849,000 | 4,646,000 | 14,849,000 | 4,646,000 | |||||||
Cash and cash equivalents at end of year | 8,822,000 | 14,849,000 | 8,822,000 | 14,849,000 | |||||||
Randolph Bancorp, Inc. and Predecessor Randolph Bancorp [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | (2,126,000) | 463,000 | |||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Equity in undistributed net (income) loss of Envision Bank | 1,987,000 | (2,797,000) | |||||||||
Charitable foundation contribution of Company stock | 1,820,000 | ||||||||||
Change in intercompany receivable | (139,000) | ||||||||||
Net cash provided by operating activities | (278,000) | (514,000) | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of First Eastern, net of cash acquired | (11,131,000) | ||||||||||
Investment in Envision Bank | (29,991,000) | ||||||||||
ESOP loan | (4,695,000) | ||||||||||
Payments received on ESOP loan | 129,000 | 188,000 | |||||||||
Net cash used in investing activities | 129,000 | (45,629,000) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock | 56,868,000 | ||||||||||
Stock offering costs | (2,325,000) | ||||||||||
Stock repurchases | (160,000) | ||||||||||
Net cash provided by financing activities | (160,000) | 54,543,000 | |||||||||
Net change in cash and cash equivalents | (309,000) | 8,400,000 | |||||||||
Cash and cash equivalents at beginning of year | $ 8,496,000 | $ 96,000 | 8,496,000 | 96,000 | |||||||
Cash and cash equivalents at end of year | $ 8,187,000 | $ 8,496,000 | $ 8,187,000 | 8,496,000 | |||||||
Non-cash item: | |||||||||||
Contribution of net assets of First Eastern to Envision Bank | $ 12,407,000 |
Selected Quarterly Financial113
Selected Quarterly Financial Data (Unaudited) - Summary of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Interest and dividend income | $ 4,492 | $ 4,389 | $ 4,175 | $ 3,884 | $ 3,923 | $ 3,876 | $ 3,260 | $ 3,155 | $ 16,940 | $ 14,215 |
Interest expense | 652 | 573 | 485 | 400 | 388 | 455 | 388 | 375 | 2,110 | 1,606 |
Net interest income | 3,840 | 3,816 | 3,690 | 3,484 | 3,535 | 3,421 | 2,872 | 2,780 | 14,830 | 12,609 |
Provision (credit) for loan losses | 205 | 100 | 235 | 200 | (160) | 62 | 540 | 103 | ||
Gain on sales of mortgage loans | 1,888 | 2,705 | 2,520 | 2,038 | 3,241 | 5,401 | 1,058 | 681 | 9,151 | 10,381 |
Other non-interest income | 660 | 866 | 914 | 1,372 | 1,041 | 1,959 | 1,028 | 622 | 731 | 621 |
Total non-interest income | 2,548 | 3,571 | 3,434 | 3,410 | 4,282 | 7,360 | 2,086 | 1,303 | 12,963 | 15,030 |
Merger and integration costs | 7 | 357 | 167 | 316 | 514 | 33 | 117 | 531 | 980 | |
Other non-interest expense | 8,056 | 7,202 | 7,071 | 6,962 | 7,837 | 10,138 | 4,207 | 3,899 | 4,075 | 3,508 |
Total non-interest expenses | 8,056 | 7,209 | 7,428 | 7,129 | 8,153 | 10,652 | 4,240 | 4,016 | 29,822 | 27,060 |
Provision (benefit) for income taxes | (295) | 129 | (254) | (23) | 10 | 3 | (443) | 13 | ||
Net income (loss) | $ (1,578) | $ 49 | $ (150) | $ (447) | $ (546) | $ 289 | $ 718 | $ 2 | $ (2,126) | $ 463 |
Basic and diluted earnings (loss) per share | $ (0.28) | $ 0.01 | $ (0.03) | $ (0.08) | $ (0.10) | $ 0.05 | $ (0.39) | |||
Weighted average common shares (basic and diluted) | 5,597,762 | 5,429,564 | 5,425,033 | 5,420,356 | 5,413,313 | 5,403,923 | 5,468,514 |
Selected Quarterly Financial114
Selected Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effect Of Fourth Quarter Events [Line Items] | |||||
Restructuring charge | $ 594,000 | $ 594,000 | |||
Impairment write-down of assets held for sale | 225,000 | 225,000 | |||
Reduction of valuation allowance for mortgage servicing rights | 200,000 | $ 334,000 | $ 390,000 | ||
Expenses for planned transfer of loan servicing | $ 160,000 | ||||
Tax benefit due to repeal of AMT | $ 462,000 | ||||
First Eastern Bankshares Corporation [Member] | |||||
Effect Of Fourth Quarter Events [Line Items] | |||||
Business acquisition payment, reduction of the bargain purchase gain | $ 175,000 |