Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RNDB | ||
Entity Registrant Name | Randolph Bancorp, Inc. | ||
Entity Central Index Key | 0001667161 | ||
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 Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 83,029,900 | ||
Entity Common Stock, Shares Outstanding | 5,898,793 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 3,451 | $ 3,562 |
Interest-bearing deposits | 3,667 | 5,260 |
Total cash and cash equivalents | 7,118 | 8,822 |
Certificates of deposit | 2,205 | 2,940 |
Securities available for sale, at fair value | 50,556 | 61,576 |
Loans held for sale, at fair value | 38,474 | 25,390 |
Loans, net of allowance for loan losses of $4,437 in 2018 and $3,737 in 2017 | 483,846 | 400,373 |
Federal Home Loan Bank of Boston stock, at cost | 4,700 | 3,310 |
Accrued interest receivable | 1,504 | 1,432 |
Mortgage servicing rights, net | 7,786 | 6,397 |
Premises and equipment, net | 6,368 | 8,670 |
Bank-owned life insurance | 8,256 | 8,037 |
Foreclosed real estate, net | 65 | 193 |
Other assets | 3,462 | 4,752 |
Total assets | 614,340 | 531,892 |
Deposits: | ||
Noninterest-bearing | 64,229 | 62,130 |
Interest bearing | 312,321 | 297,690 |
Brokered | 60,580 | 7,016 |
Total deposits | 437,130 | 366,836 |
Federal Home Loan Bank of Boston advances | 89,036 | 75,954 |
Mortgagors' escrow accounts | 2,129 | 907 |
Post-employment benefit obligations | 2,551 | 2,750 |
Other liabilities | 5,533 | 3,962 |
Total liabilities | 536,379 | 450,409 |
Commitments and contingencies (Note 16) | ||
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: 5,903,793 shares at December 31, 2018 and 6,034,276 shares at December 31, 2017 | 60 | 61 |
Additional paid-in capital | 55,608 | 56,493 |
Retained earnings | 28,329 | 30,415 |
ESOP-Unearned compensation | (4,132) | (4,319) |
Accumulated other comprehensive loss, net of tax | (1,904) | (1,167) |
Total stockholders' equity | 77,961 | 81,483 |
Total liabilities and stockholders' equity | $ 614,340 | $ 531,892 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 4,437 | $ 3,737 |
Preferred stock, par value | $ 0 | $ 0 |
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 | 5,903,793 | 6,034,276 |
Common stock, shares outstanding | 5,903,793 | 6,034,276 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and dividend income: | ||
Loans | $ 19,541,000 | $ 15,099,000 |
Securities-taxable | 1,318,000 | 1,259,000 |
Securities-tax exempt | 120,000 | 347,000 |
Interest-bearing deposits and certificates of deposit | 305,000 | 235,000 |
Total interest and dividend income | 21,284,000 | 16,940,000 |
Interest expense: | ||
Deposits | 3,070,000 | 1,556,000 |
Federal Home Loan Bank of Boston advances | 1,518,000 | 554,000 |
Total interest expense | 4,588,000 | 2,110,000 |
Net interest income | 16,696,000 | 14,830,000 |
Provision for loan losses | 762,000 | 540,000 |
Net interest income after provision for loan losses | 15,934,000 | 14,290,000 |
Non-interest income: | ||
Customer service fees | 1,464,000 | 1,455,000 |
Gain on loan origination and sale activities, net | 7,539,000 | 9,151,000 |
Mortgage servicing fees, net | 1,264,000 | 1,473,000 |
Gain (loss) on sales/calls of securities and impairment write-down, net | (11,000) | |
Increase in cash surrender value of life insurance | 218,000 | 153,000 |
Gain on sales of buildings | 2,476,000 | |
Other | 733,000 | 731,000 |
Total non-interest income | 13,683,000 | 12,963,000 |
Non-interest expenses: | ||
Salaries and employee benefits | 19,765,000 | 18,731,000 |
Occupancy and equipment | 2,873,000 | 2,655,000 |
Data processing | 692,000 | 758,000 |
Professional fees | 1,164,000 | 1,344,000 |
Marketing | 1,141,000 | 989,000 |
Foreclosed real estate, net | 40,000 | |
FDIC deposit insurance | 175,000 | 145,000 |
Restructuring charges | 968,000 | 594,000 |
Merger and integration costs | 531,000 | |
Other | 4,854,000 | 4,075,000 |
Total non-interest expenses | 31,672,000 | 29,822,000 |
Loss before income taxes | (2,055,000) | (2,569,000) |
Income tax expense (benefit) | 31,000 | (443,000) |
Net income (loss) | $ (2,086,000) | $ (2,126,000) |
Weighted average common shares outstanding (basic and diluted) | 5,570,720 | 5,468,514 |
Loss per common share (basic and diluted) | $ (0.37) | $ (0.39) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Net loss | $ (2,086) | $ (2,126) | |
Securities available for sale: | |||
Unrealized holding gains (losses) | (721) | 74 | |
Reclassification adjustment for net (gains) losses and impairment write-down realized in income | [1] | 11 | |
Net unrealized gain (loss) | (710) | 74 | |
Related tax effects | 0 | ||
Net-of-tax amount | (710) | 74 | |
Related tax effects | 0 | ||
Net-of-tax amount | (27) | (77) | |
Total other comprehensive loss | (737) | (3) | |
Comprehensive loss | (2,823) | (2,129) | |
Supplemental Retirement Plan [Member] | |||
Securities available for sale: | |||
Actuarial losses | [2] | 41 | 38 |
Prior service credits recognized | [2] | (89) | (89) |
Actuarial gains (losses) arising during the year | 21 | (26) | |
Net change in supplemental retirement plan | $ (27) | $ (77) | |
[1] | Amounts are included in gain (loss) on sales/calls of securities and impairment write-down, net 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 ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Unearned Compensation ESOP [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Dec. 31, 2016 | $ 83,302 | $ 59 | $ 56,373 | $ 32,661 | $ (4,507) | $ (1,284) |
Beginning balance, shares at Dec. 31, 2016 | 5,868,726 | |||||
Net loss | (2,126) | (2,126) | ||||
Other comprehensive loss | (3) | (3) | ||||
Stock repurchased | (160) | (160) | ||||
Stock repurchased, shares | (10,689) | |||||
Restricted stock awards granted | $ 2 | (2) | ||||
Restricted stock awards granted, shares | 192,491 | |||||
Restricted stock awards forfeited, shares | (16,252) | |||||
Stock-based compensation | 184 | 184 | ||||
ESOP shares committed to be released | 286 | 98 | 188 | |||
Adoption impact - ASU 2018-02 | (120) | 120 | ||||
Ending balance at Dec. 31, 2017 | 81,483 | $ 61 | 56,493 | 30,415 | (4,319) | (1,167) |
Ending balance, shares at Dec. 31, 2017 | 6,034,276 | |||||
Net loss | (2,086) | (2,086) | ||||
Other comprehensive loss | (737) | (737) | ||||
Stock repurchased | (1,716) | $ (1) | (1,715) | |||
Stock repurchased, shares | (109,910) | |||||
Restricted stock awards forfeited, shares | (15,710) | |||||
Share redemption for tax withholdings for restricted stock vesting | (81) | (81) | ||||
Share redemption for tax with holdings for restricted stock vesting, shares | (4,863) | |||||
Stock-based compensation | 797 | 797 | ||||
ESOP shares committed to be released | 301 | 114 | 187 | |||
Ending balance at Dec. 31, 2018 | $ 77,961 | $ 60 | $ 55,608 | $ 28,329 | $ (4,132) | $ (1,904) |
Ending balance, shares at Dec. 31, 2018 | 5,903,793 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (2,086,000) | $ (2,126,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 762,000 | 540,000 |
Loans originated for sale | (393,251,000) | (398,696,000) |
Net gain on sales of mortgage loans | (7,931,000) | (9,438,000) |
Proceeds from sales of mortgage loans | 391,149,000 | 413,196,000 |
Net amortization of securities | 183,000 | 271,000 |
Net change in deferred loan costs and fees, and purchase premiums | (56,000) | (276,000) |
Loss on sales/calls of securities and impairment write-down | 11,000 | |
Gain on sales of buildings | (2,476,000) | |
Depreciation and amortization | 835,000 | 605,000 |
Impairment write-down on property and equipment | 166,000 | 225,000 |
Impairment write-down on foreclosed real estate | 36,000 | |
Stock-based compensation | 797,000 | 184,000 |
ESOP expense | 301,000 | 286,000 |
Increase in cash surrender value of life insurance | (218,000) | (153,000) |
Net (increase) decrease in mortgage servicing rights | (1,389,000) | 2,089,000 |
Other, net | 1,876,000 | (797,000) |
Net cash provided by (used in) operating activities | (11,291,000) | 5,910,000 |
Redemption of certificates of deposit | 735,000 | 735,000 |
Securities available for sale: | ||
Sales | 8,958,000 | |
Calls/maturities | 5,562,000 | 2,586,000 |
Purchases | (9,993,000) | |
Principal payments on mortgage-backed securities | 5,589,000 | 4,278,000 |
Loan originations, net of principal repayments | (96,088,000) | (31,614,000) |
Proceeds from sale of portfolio loans | 25,038,000 | |
Loan purchases and participations | (16,180,000) | (36,032,000) |
Purchases of Federal Home Loan Bank of Boston stock | (1,390,000) | (832,000) |
Proceeds from sales of buildings | 5,834,000 | |
Purchases of premises and equipment | (1,430,000) | (3,177,000) |
Net cash used in investing activities | (73,365,000) | (64,056,000) |
Cash flows from financing activities: | ||
Net increase in non-brokered deposits | 16,820,000 | 8,641,000 |
Net increase in brokered deposits | 53,474,000 | 7,016,000 |
Net increase in short-term Federal Home Loan Bank of Boston borrowings | 17,945,000 | 44,841,000 |
Repayments of long-term Federal Home Loan Bank of Boston advances | (4,863,000) | (7,554,000) |
Net increase (decrease) in mortgagors' escrow accounts | 1,222,000 | (665,000) |
Repurchases of common stock | (1,716,000) | (160,000) |
Stock repurchase payable | 70,000 | |
Net cash provided by financing activities | 82,952,000 | 52,119,000 |
Net change in cash and cash equivalents | (1,704,000) | (6,027,000) |
Cash and cash equivalents at beginning of year | 8,822,000 | 14,849,000 |
Cash and cash equivalents at end of year | 7,118,000 | 8,822,000 |
Supplemental cash flow information: | ||
Interest paid on deposits and borrowed funds | 4,390,000 | 2,122,000 |
Income taxes paid, net of refunds | 33,000 | 10,000 |
Non-cash items: | ||
Leasehold improvements funded by landlord | 646,000 | |
Transfer of loan to foreclosed real estate | 193,000 | |
Transfer of portfolio loans to held for sale | 3,051,000 | |
Transfer of property and equipment to assets held for sale | $ 2,897,000 | $ 828,000 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1. Basis of Presentation The consolidated financial statements include the accounts of Randolph Bancorp, Inc. (a Massachusetts corporation) and its wholly-owned subsidiary, Envision Bank (together, the “Company”). The Bank has subsidiaries involved in owning investment securities and foreclosed real estate and a subsidiary which provides loan closing services. All intercompany accounts and transactions have been eliminated in consolidation. 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 five 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 Bank is also actively involved in the sale and servicing of residential mortgage loans in the secondary market. 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. 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 of Boston 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 and related derivatives 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 generally done on a servicing released basis. The Bank utilizes the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments” for its residential mortgage loans being held for sale. Fair value is determined based on either commitments in effect from investors or prevailing market price and include the value of mortgage servicing rights. Gains and losses on the sales of 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 loan origination and sale activities 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 for the delivery of mortgage loans to third party investors including To Be Announced securities (“TBAs”)) and loans held for sale. 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 generally 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, 2018 and 2017, the Company determined that its obligations in connection with the recourse provisions of its loan sale agreements were insignificant. Foreclosed real estate Real estate 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, 2018 and 2017 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, 2018 and 2017. 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, 2018 2017 (In thousands) Securities available for sale: Net unrealized loss $ (1,334 ) $ (624 ) Tax effect (313 ) (313 ) Net-of-tax amount (1,647 ) (937 ) Supplemental retirement plan Unrecognized net actuarial loss (605 ) (667 ) Unrecognized net prior service credit 395 484 (210 ) (183 ) Tax effect (47 ) (47 ) Net-of-tax amount (257 ) (230 ) Accumulated other comprehensive loss $ (1,904 ) $ (1,167 ) In 2019, 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 loss at December 31, 2018. 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 Prior to 2018, the Company’s operations were managed, and financial performance was evaluated, by the chief operating decision-maker on a company-wide basis. As a result, management had determined there to be a single business segment for financial reporting purposes through December 31, 2017. Due to the significance of the Company’s mortgage banking operations and the strategic focus on this business, management prepared its 2018 operating budget by breaking-out its mortgage banking activities, including residential loan origination and loan servicing. As a result, effective January 1, 2018, the Company is reporting two business segments, namely, “Envision Bank” and “Envision Mortgage”. Comparative information for 2017 has been prepared on a basis consistent with the methodology used in 2018. As part of this process, management analyzed costs incurred by departments providing services to both segments (indirect costs), such as IT, Marketing, Accounting and Administration, to determine the allocation of indirect costs to each business segment in order to fully measure each segment’s results of operations. See Note 18 for disclosure of the Company’s segment information. 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. 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 2018 and 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 . This Update provides a revenue recognition framework for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other accounting standards. This ASU, as amended by ASU 2015-14, is effective for emerging growth companies in fiscal years beginning after December 15, 2018, including interim periods therein with early adoption permitted. The timing of the Company’s revenue recognition is not expected to materially change. The Company's revenue relates principally to financial instruments, which are explicitly excluded from the scope of the new guidance. Adoption of this standard on January 1, 2019 did not have a material impact on the Company’s consolidated financial statements. In January 2016, FASB issued ASU 2016-01, Financial Instruments 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 August 2018, the FASB issued ASU 2018-13 Fair Value Measurement – Changes to the Disclosure Requirements for Fair Value Measurement, Reclassifications Certain reclassifications have been made to the 2017 consolidated financial statements in order to conform to the presentations used in the 2018 consolidated financial statements. Such reclassifications had no impact on net loss as presented in such financial statements . |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Securities Available for Sale | 2 . 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, 2018 Debt securities: U.S. Government-sponsored enterprises $ 3,999 $ 13 $ (31 ) $ 3,981 Corporate 1,524 6 (18 ) 1,512 Municipal 1,489 18 — 1,507 Residential mortgage-backed securities: U.S. Government-sponsored enterprises 26,989 71 (754 ) 26,306 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises 9,094 — (487 ) 8,607 U.S. Government-guaranteed 1,796 — (33 ) 1,763 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 1,642 — (17 ) 1,625 U.S. Government-guaranteed 4,839 2 (104 ) 4,737 Total debt securities 51,372 110 (1,444 ) 50,038 Mutual fund 518 — — 518 Total securities available for sale $ 51,890 $ 110 $ (1,444 ) $ 50,556 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 The amortized cost and fair value of debt securities by contractual maturity at December 31, 2018 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 $ — $ — After 1 year through 5 years 6,173 6,149 After 5 years through 10 years 839 851 7,012 7,000 Mortgage-backed securities and collaterlized mortgage obligations 44,360 43,038 $ 51,372 $ 50,038 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, 2018 and 2017, investment securities having a fair value of $2,010,000 and $2,004,000, respectively, were pledged as collateral for certain deposits and FHLBB borrowings. There were no individual holdings of investment securities at December 31, 2018 and 2017, 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, 2018 (In thousands) Debt securities: U.S. Government-sponsored enterprises $ — $ — $ (31 ) $ 1,969 Corporate (5 ) 497 (13 ) 506 Municipal — — — — Residential mortgage-backed securities: U.S. Government-sponsored enterprises (6 ) 7,038 (748 ) 12,981 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises — — (487 ) 8,607 U.S. Government-guaranteed — — (33 ) 1,763 Collateralized mortgage obligations: U.S. Government-sponsored enterprises — — (17 ) 1,625 U.S. Government-guaranteed — — (104 ) 3,879 Total debt securities $ (11 ) $ 7,535 $ (1,433 ) $ 31,330 December 31, 2017 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 At December 31, 2018, 35 debt securities have unrealized losses with aggregate depreciation of 3.58% from the Company’s amortized cost basis. The unrealized losses at December 31, 2018, which related primarily to securities issued by U.S. government-sponsored enterprises, were primarily caused by interest rate increases over the past two years. 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, 2018. For the year ended December 31, 2018, proceeds from the sale of securities amounted to $8,958,000 which resulted in a realized gain of $49,000. In addition, losses of $33,000 and $27,000 were recognized upon prepayment of a commercial mortgage-backed security and an OTTI write-down of a mutual fund, respectively, in 2018. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans | 3 . LOANS A summary of the loan portfolio is as follows: December 31, 2018 2017 (In thousands) Mortgage loans on real estate: Residential: One-to-four family $ 246,756 $ 198,475 Home equity loans and lines of credit 43,545 38,968 Commercial 113,642 98,755 Construction 42,139 25,357 446,082 361,555 Commercial and industrial 21,285 24,766 Consumer 19,407 16,337 Total loans 486,774 402,658 Allowance for loan losses (4,437 ) (3,737 ) Net deferred loan costs and fees, and purchase premiums 1,509 1,452 $ 483,846 $ 400,373 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, 2018 and 2017, the Company was servicing loans for participants aggregating $5,596,000 and $5,902,000, respectively. See Note 4 for information relating to the Company’s servicing of residential mortgage loans for others. The following table presents activity in the allowance for loan losses, by loan category, for the years ended December 31, 2018 and 2017 and allocation of the allowance to each category as of such dates: 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, 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 Provision (credit) for loan losses 197 (67 ) 30 414 (70 ) 258 762 Loans charged-off — — (2 ) — — (119 ) (121 ) Recoveries 41 — — — — 18 59 Balance at December 31, 2018 $ 1,092 $ 292 $ 1,648 $ 765 $ 265 $ 375 $ 4,437 Second Residential Mortgages Commercial Commercial 1-4 Family and HELOC Real Estate Construction and Industrial Consumer Total December 31, 2018 Allowance for impaired loans $ 108 $ — $ — $ — $ — $ 174 $ 282 Allowance for non-impaired loans 984 292 1,648 765 265 201 4,155 Total allowance for loan losses $ 1,092 $ 292 $ 1,648 $ 765 $ 265 $ 375 $ 4,437 Impaired loans $ 6,291 $ 408 $ 52 $ — $ — $ 199 $ 6,950 Non-impaired loans 240,465 43,137 113,590 42,139 21,285 19,208 479,824 Total loans $ 246,756 $ 43,545 $ 113,642 $ 42,139 $ 21,285 $ 19,407 $ 486,774 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 98,403 25,357 24,766 16,337 396,825 Total loans $ 198,475 $ 38,968 $ 98,755 $ 25,357 $ 24,766 $ 16,337 $ 402,658 The following table presents past due and non-accrual loans, by loan category, at December 31, 2018 and 2017: 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, 2018 Residential one-to-four family $ 655 $ 207 $ 635 $ 1,497 $ 2,474 Home equity loans and lines of credit 520 — — 520 407 Commercial real estate — — — — — Construction — — — — — Commercial and industrial — — — — — Consumer 25 4 — 29 149 Total $ 1,200 $ 211 $ 635 $ 2,046 $ 3,030 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 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, 2018 Impaired loans without a valuation allowance: Residential one-to-four family $ 4,280 $ 4,280 $ — Home equity loans and lines of credit 408 408 — Commercial real estate 52 52 — Total 4,740 4,740 — Impaired loans with a valuation allowance: Residential one-to-four family 2,011 2,011 108 Consumer 199 199 174 Total 2,210 2,210 282 Total impaired loans $ 6,950 $ 6,950 $ 282 December 31, 2017 Impaired loans without a valuation allowance: Residential one-to-four family $ 2,641 $ 2,641 $ — Home equity loans and lines of credit 247 247 — Commercial real estate 257 257 — Total 3,145 3,145 — Impaired loans with a valuation allowance: Residential one-to-four family 2,564 2,564 160 Home equity loans and lines of credit 29 29 1 Commercial real estate 95 95 1 Total 2,688 2,688 162 Total impaired loans $ 5,833 $ 5,833 $ 162 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, 2018 Residential one-to-four family $ 6,781 $ 210 $ 84 Home equity loans and lines of credit 420 36 36 Commercial real estate 244 15 — Consumer 50 2 — Total $ 7,495 $ 263 $ 120 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 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, 2018, the Company had seventeen residential real estate loans and one commercial real estate loan aggregating $3,341,000 and $52,000, respectively, which were subject to troubled debt restructuring agreements. At December 31, 2017, the Company had nineteen residential real estate loans and two commercial real estate loans aggregating $4,315,000 and $153,000, respectively, which were subject to troubled debt restructuring agreements. As of December 31, 2018 and 2017, $3,341,000 and $4,315,000, respectively, in troubled debt restructurings were performing in accordance with the terms of the modified loan agreements. Included in such amounts are $366,000 and $1,085,000, respectively, that are being accounted for as non-accrual loans. For the year ended December 31, 2018 the Company entered into one loan modification meeting the criteria of a troubled debt restructuring in which a loan term concession was granted to a borrower. For the year ended December 31, 2017. 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, 2018 and 2017 allowances of $282,000 and $162,000, respectively, related to troubled debt restructurings. During the years ended December 31, 2018 and 2017, 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, 2018 and 2017: December 31, 2018 December 31, 2017 Commercial Real Construction Commercial and Industrial Commercial Real Construction Commercial and Industrial (In thousands) Loans rated 1 - 3A $ 113,642 $ 42,139 $ 21,285 $ 98,556 $ 25,357 $ 24,766 Loans rated 4 — — — — — — Loans rated 5 — — — 199 — — $ 113,642 $ 42,139 $ 21,285 $ 98,755 $ 25,357 $ 24,766 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, 2018, one consumer loan for $149,000 was rated as doubtful, $2,469,000 in residential mortgages and one consumer loan for $50,000 were rated as substandard and $936,000 in residential mortgages and $407,000 in home equity lines of credit were rated as special mention. 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 lines of credit were rated as special mention . |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2018 | |
Transfers And Servicing [Abstract] | |
Loan Servicing | 4 . 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 $929,289,000 and $771,407,000 at December 31, 2018 and 2017, respectively. The following table summarizes the activity in the Company’s mortgage servicing rights for the indicated periods: For the Year Ended December 31, 2018 2017 Mortgage servicing rights: (In thousands) Balance at beginning of year $ 6,397 $ 8,486 Additions through originations 2,380 2,310 Amortization (983 ) (1,071 ) Sales — (3,238 ) Balance at end of year $ 7,794 $ 6,487 Valuation allowance: Balance at beginning of year $ 90 $ 424 Provision (credit) (82 ) (334 ) Balance at end of year $ 8 $ 90 Mortgage servicing rights, amortized cost $ 7,786 $ 6,397 Mortgage servicing rights, fair value $ 8,554 $ 6,485 At December 31, 2018 and 2017, the fair value of servicing rights was determined using a discount rate of 12% and 13%, respectively, and projected annual prepayment speeds ranging from 7% to 35% for 2018 and 6% to 24% for 2017. Contractually specified servicing fees for the years ended December 31, 2018 and 2017 amounted to $2,165,000 and $2,434,000, respectively, and are included in mortgage servicing fees, net. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | 5 . PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation and amortization of premises and equipment is as follows: December 31, Estimated 2018 2017 Useful Life (In thousands) (In years) Land and improvements $ 1,025 $ 2,525 Buildings and improvements 3,280 4,457 5 to 50 Leasehold improvements 2,136 1,503 3 to 10 Furniture and equipment 5,032 4,765 3 to 10 Construction-in-progress 84 101 11,557 13,351 Less accumulated depreciation and amortization (5,189 ) (4,681 ) $ 6,368 $ 8,670 Total depreciation and amortization expense for the years ended December 31, 2018 and 2017 amounted to $835,000 and $605,000, 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. In July 2018, the Company entered into a sublease agreement for 27% of the space in its Andover location. This sublease commenced on October 1, 2018 and runs co-terminus with the Company’s lease which expires in March 2023. In October 2018, the Board of Directors approved a plan to consolidate mortgage banking operations in the Company’s North Attleboro loan operations center (see Note 20 for additional information). As part of this decision, certain mortgage banking employees not directly involved in the loan origination process remained at the Andover location. Based on an analysis of space needs for the remaining employees, the area not currently under sublease was subdivided resulting in approximately half of the total leased space in Andover, or 8,600 square feet, becoming available for sublease. In connection with these actions, the Company recognized a fair value “cease use” liability of $565,000 based on expected future cash flows which is included in the restructuring charge recorded in the fourth quarter of 2018. In estimating this liability, the Company assumed that the sublease for the 8,600 square feet of available space would commence in April 2020. In addition to the cease use liability, the Company also recognized an impairment write-down of $168,000 for furniture and equipment which is no longer expected to be used in operations. This write-down is also included in the restructuring charge recorded in the fourth quarter of 2018. During 2018, the Company sold three branch buildings, two of which were replaced by newly constructed or leased locations. These buildings were reclassified to assets held for sale at the lower of their net book value or fair value and at December 31, 2017 had a carrying value of $828,000. An impairment write-down of $225,000 was recognized in 2017 and a loss on sale of $15,000 in 2018 for one of these buildings. During 2018, the other building was sold and a gain of $230,000 was recognized. In December 2018, the Company sold its branch building in Boston for cash consideration of $5,000,000 and recognized a gain of $2,261,000. Earlier in 2018, this building experienced significant water damage resulting in an insurance claim. The Company recognized an insurance recovery of $90,000 for personal property damages which is included in other non-interest income. The insurance recovery for building damage, which was received in December 2018, is included in the gain on sale of the building. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | 6 . DEPOSITS A summary of deposit balances, by type, is as follows: December 31, 2018 2017 (In thousands) Demand deposits $ 64,229 $ 62,130 NOW accounts 42,802 44,988 Money market deposits 60,843 56,668 Regular and other savings 101,137 102,528 Brokered deposits 10,088 7,106 Total non-certificate accounts 279,099 273,420 Term certificates less than $250,000 99,491 80,538 Term certificates of $250,000 or more 8,048 12,878 Term certificates - brokered 50,492 — Total certificate accounts 158,031 93,416 $ 437,130 $ 366,836 A summary of term certificates, including brokered deposits, by maturity is as follows: December 31, 2018 December 31, 2017 Weighted Weighted Average Average Maturing during: Amount Rate Amount Rate (Dollars in thousands) 2018 $ — — % 49,550 0.84 % 2019 89,167 1.68 22,470 1.20 2020 40,847 2.16 8,754 1.44 2021 12,785 2.16 4,873 1.57 2022 14,101 1.98 7,769 1.65 2023 1,131 1.38 — — $ 158,031 1.87 % $ 93,416 1.09 % |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | 7 . BORROWINGS A summary of borrowings from the FHLBB at December 31, 2018 and 2017 is as follows: 2018 2017 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands) Fixed-rate advances maturing: 2018 $ — — % $ 69,337 1.55 % 2019* 84,184 2.57 1,500 1.00 2020* 2,894 1.49 3,129 1.52 2021* 1,958 1.33 1,988 1.34 $ 89,036 2.50 % $ 75,954 1.54 % * Includes amortizing advances which require monthly principal and interest payments. Included in FHLBB borrowings at December 31, 2018 and 2017 are overnight advances and advances having a one-month maturity of $82.7 million and $64.7 million, respectively. Selected information for such short-term borrowings for the years presented is as follows (in 000’s): 2018 2017 Average daily balance $ 63,552 $ 34,656 Maximum outstanding at any month end 108,819 64,739 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, 2018 was $90,346,000. At December 31, 2018, 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, 2018 and 2017, there were no advances outstanding. The Bank also has a $10,000,000 available line of credit with the Federal Reserve Bank of Boston. No advances were outstanding at December 31, 2018 and 2017. The Bank also has a $7,500,000 available line of credit with a correspondent bank. No advances were outstanding at December 31, 2018 and 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 . INCOME TAXES Allocation of federal and state income taxes between current and deferred portions is as follows (in thousands): Years Ended December 31, 2018 2017 Current tax expense (benefit): Federal $ — $ (462 ) State 31 19 Total current tax expense (benefit) 31 (443 ) Deferred tax expense (benefit): Federal (541 ) (518 ) Effect of change in federal tax rate — 1,627 State 73 (23 ) (468 ) 1,086 Change in valuation allowance 468 541 Effect of change in federal tax rate - valuation allowance — (1,627 ) Total deferred tax expense — — Total tax expense (benefit) $ 31 $ (443 ) 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, 2018 2017 Statutory federal tax (21% in 2018 and 34% in 2017) $ (432 ) $ (874 ) Increase (decrease) resulting from: State taxes, net of federal tax effect 83 (3 ) Bank-owned life insurance (46 ) (52 ) Tax exempt income (25 ) (118 ) Dividends received deduction — (5 ) Change in valuation allowance 468 541 Change in AOCI deferred effect — (36 ) Effect of change in federal tax rate — 1,627 Effect of change in federal tax rate-valuation allowance — (1,627 ) Other, net (17 ) 104 Total tax expense (benefit) $ 31 $ (443 ) 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 “Tax Act”) which was signed into law on December 22, 2017. The Tax Act also provides that existing AMT credit carryforwards be refunded over the next four years. The Tax 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, 2018 2017 Deferred tax assets: Federal $ 5,134 $ 4,247 State 1,134 1,008 6,268 5,255 Valuation allowance (3,246 ) (2,778 ) 3,022 2,477 Deferred tax liabilities: Federal (2,189 ) (1,806 ) State (833 ) (671 ) (3,022 ) (2,477 ) Net deferred tax asset $ — $ — The tax effects of items giving rise to deferred tax assets (liabilities) are as follows (in thousands): December 31, 2018 2017 Employee benefit plans $ 825 $ 951 Allowance for loan losses 1,247 1,050 Funded status of post-retirement benefits (47 ) (47 ) Securities available for sale (313 ) (313 ) Depreciation and amortization 249 193 Net deferred loan origination costs (357 ) (321 ) Mortgage servicing rights (2,082 ) (1,624 ) Net operating loss carryforward 2,864 2,171 Charitable contribution carryforward 700 702 Derivatives (105 ) (98 ) Stock-based compensation 121 48 Other, net 144 66 3,246 2,778 Valuation allowance on deferred tax assets (3,246 ) (2,778 ) Net deferred tax asset $ — $ — At December 31, 2018, the Company has a federal net operating loss carryforward of $13,638,000, 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, $2,871,000 expires on December 31, 2037 and $3,573,000 has no expiration. At December 31, 2018, the Company has a charitable contribution carryforward of $2,481,000 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, 2015 through 2018. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2015 are open. |
On-Balance Sheet Derivative Ins
On-Balance Sheet Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
On-Balance Sheet Derivative Instruments and Hedging Activities | 9 . 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 $36,852,000 and $24,222,000 at December 31, 2018 and 2017, respectively. The fair value of such commitments at December 31, 2018 and 2017 was an asset of $627,000 and $363,000, respectively, and is included in other assets in the consolidated balance sheets. During the years ended December 31, 2018 and 2017, the increase (reduction) in aggregate fair value of $264,000 and $(254,000), respectively, related to interest rate lock commitments were recognized and included in the net gain on loan origination and sales activities in the accompanying consolidated statements of operations. Forward Loan Sale Commitments The Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments and, effective in the fourth quarter of 2018, TBA securities 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 and TBA securities 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 forward loan sale commitments was $42,021,000 and $29,613,000 at December 31, 2018 and 2017, respectively, and liabilities of $263,000 and $19,000 at December 31, 2018 and 2017, respectively, are included in other liabilities in the consolidated balance sheets. The fair value of such commitments was an asset of $10,000 and $4,000 at December 31, 2018 and 2017, respectively, and are included in other assets in the consolidated balance sheets. During the years ended December 31, 2018 and 2017, reductions in aggregate fair value of $238,000 and $66,000, respectively, related to forward loan sale commitments were recognized and included in net gain on loan originations and sales activities in the accompanying consolidated statements of operations. |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Minimum Regulatory Capital Requirements | 1 0 . MINIMUM REGULATORY CAPITAL REQUIREMENTS The Bank is 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 Bank 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% (1.875% at December 31, 2018). Quantitative measures established by regulation to ensure capital adequacy require the 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, 2018 and 2017, that the Bank met all capital adequacy requirements to which it is subject. As of December 31, 2018, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum 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. The Bank’s actual and minimum capital amounts and ratios are presented in the following table: Minimum To Be Well For Minimum Capitalized Under Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2018 Total capital (to risk weighted assets) $ 72,523 16.1 % $ 36,084 8.0 % $ 45,105 10.0 % Tier 1 capital (to risk weighted assets) 68,086 15.1 27,063 6.0 36,084 8.0 Common equity Tier 1 capital (to risk weighted assets) 68,086 15.1 20,297 4.5 29,318 6.5 Tier 1 capital (to average assets) 68,086 10.9 25,056 4.0 31,320 5.0 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 |
Post-retirement Plans
Post-retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Post-retirement Plans | 1 1 . 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, 2018 and 2017, the accrued benefits related to the agreements amounted to $549,000 and $607,000, respectively. Total expense, included in other non-interest expenses, related to these supplemental agreements amounted to $58,000 and $64,000 for the years ended December 31, 2018 and 2017, respectively. Supplemental retirement plan The Company has a master supplemental retirement plan (“Plan”) which covers certain officers and directors of the Company. In 2018 and 2017, the only active participants in the Plan were directors. Information pertaining to activity in the Plan follows: Years Ended December 31, 2018 2017 (In thousands) Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 201 201 Benefits paid (201 ) (201 ) Fair value of plan assets at end of year — — Change in benefit obligation: Benefit obligation at beginning of year 1,724 1,836 Service cost 10 10 Interest cost 48 53 Actuarial (gain) loss (20 ) 26 Benefits paid (201 ) (201 ) Benefit obligation at end of year 1,561 1,724 Unfunded status and accrued supplemental pension cost at year end $ (1,561 ) $ (1,724 ) Accumulated benefit obligation at year end $ 1,561 $ 1,724 The assumptions used to determine the benefit obligation are as follows: December 31, 2018 2017 Discount rate 3.60 % 2.90 % 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, 2018 and 2017, consists of the following: 2018 2017 (In thousands) Service cost $ 10 $ 10 Interest cost 48 53 Amortization of net actuarial loss 41 38 Amortization of prior service credit (89 ) (89 ) $ 10 $ 12 The following assumptions were used to determine the net periodic benefit cost for the years ended December 31, 2018 and 2017: 2018 2017 Discount rate 2.90 % 3.05 % Annual inflation factor 1.00 % 1.00 % Estimated future benefit payments, which reflect expected future services, as appropriate, are as follows: Years Ending December 31, Amount (In thousands) 2019 $ 201 2020 201 2021 201 2022 213 2023 334 2024-2028 626 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, 2018 and 2017 amounted to $16,000 and $22,000, respectively. At December 31, 2018 and 2017, the accrued benefits related to the split-dollar arrangements amounted to $435,000 and $419,000, 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, 2018 and 2017, expenses attributable to the plan amounted to $580,000 and $583,000, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 1 2 . 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 three to 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. The Company made the following grants of options to purchase shares of common stock during the years ended December 31, 2018 and 2017: 2018 2017 Options granted 27,000 340,387 Vesting period (years) 3-5 3-5 Expiration period (years) 10 10 Expected volatility 29.87 % 23.59% - 29.87% Expected life (years) 6.5 3.0 - 6.5 Expected dividend yield — — Risk free interest rate 2.68% - 2.77% 1.66% - 2.06% Option fair value $5.78 - $5.83 $2.71 - $5.05 A summary of the status of the Company's stock option grants for the year ended December 31, 2018 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, 2018 316,009 $ 14.66 9.78 $ 219,374 Granted 27,000 16.15 5.79 — Forfeited (30,304 ) 14.71 6.50 — Balance at December 31, 2018 312,705 $ 14.78 8.73 $ — Exercisable at December 31, 2018 59,936 $ 14.66 — $ — Unrecognized compensation cost (inclusive of directors' options) $ 1,075,000 Weighted average remaining recognition period (years) 3.62 For the years ended December 31, 2018 and 2017, stock-based compensation expense applicable to stock options was $304,000 and $65,000, respectively. 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, 2018: Restricted Stock Awards Weighted Average Grant Price Restricted stock awards at January 1, 2018 176,239 $ 14.66 Granted — — Vested (33,835 ) 14.66 Forfeited (15,710 ) 14.66 Non-vested stock awards at December 31, 2018 126,694 $ 14.66 Unrecognized compensation cost $ 1,739,000 Weighted average remaining recognition period (years) 3.68 Total expense for the restricted stock awards was $493,000 and $120,000 for the years ended December 31, 2018 and 2017, respectively. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Ownership Plan | 1 3 . 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 Shares are committed to be released on a monthly basis and allocated as of December 31 st |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Share Repurchase Program | 1 4 . 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. In September 2018, this program was extended for an additional year. 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 is currently set to expire on September 14, 2019. As of December 31, 2018, the Company had repurchased 117,877 shares at a cost of $1,832,000 in connection with this program. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 15. EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share represents net income (loss) 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 to be outstanding for purposes of computing earnings per share. None of the Company’s 312,705 outstanding stock options were included in the computation of diluted earnings (loss) per share for the years ended December 31, 2018 and 2017. Due to the net loss for these periods, inclusion of the stock options in the computation would have been anti-dilutive. The following table sets forth the calculation of the average number of shares outstanding used to calculate the basic and diluted earnings (loss) per share for the periods indicated: 2018 2017 Average number of common shares outstanding 5,994,373 5,902,981 Less: Average unallocated ESOP shares (423,653 ) (434,467 ) 5,570,720 5,468,514 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 6 . 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 and sublease agreements in effect at December 31, 2018, future minimum rent commitments are as follows: Years Ending December 31, Leases Sub-lease Net (In thousands) 2019 $ 1,027 (87 ) $ 940 2020 919 (89 ) 830 2021 743 (91 ) 652 2022 545 (94 ) 451 2023 114 (16 ) 98 Thereafter — — — $ 3,348 $ (377 ) $ 2,971 The leases contain options to extend for periods of two to ten years. The cost of unexercised options periods is not included above. Total rent expense for the years ended December 31, 2018 and 2017 amounted to $992,000 and $883,000, 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, 2018 and 2017, the following financial instruments were outstanding whose contract amounts represent credit risk: 2018 2017 (In thousands) Commitments to originate loans $ 38,404 $ 35,549 Unused lines and letters of credit 45,977 39,968 Unadvanced funds on construction loans 14,175 6,967 Overdraft lines of credit 8,475 8,996 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 five members of senior management which provide that if, within two years of a change of control of the Company or the Bank, the executive is 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, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | 1 7 . 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 December 31, 2018 (In thousands) Assets: Securities available for sale: Debt securities $ — $ 50,038 $ — $ 50,038 Mutual fund — 518 — 518 Portfolio loans (fair value option) 3,680 — 3,680 Loans held for sale (fair value option) — 38,474 — 38,474 Derivative loan commitments — 627 — 627 Forward loan sale commitments — 10 — 10 Liabilities: Forward loan sale commitments, including TBAs — 263 — 263 December 31, 2017 Assets: Securities available for sale: Debt securities $ — $ 61,043 $ — $ 61,043 Mutual fund — 533 — 533 Loans held for sale (fair value option) — 25,390 — 25,390 Derivative loan commitments — 363 — 363 Forward loan sale commitments — 4 — 4 Liabilities: Forward loan sale commitments — 19 — 19 There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis during 2018 or 2017. Assets and liabilities 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 and liabilities. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets and liabilities as of December 31, 2018 and 2017. The gains and losses represent the amounts recorded during 2018 and 2017 on the assets and liabilities held at year-end. There no liabilities recorded at fair value on a non-recurring basis as of December 31, 2018 and 2017. Year Ended December 31, 2018 December 31, 2018 Level 1 Level 2 Level 3 Total Assets: (In thousands) Collateral dependent impaired loans $ — $ — $ 1,352 $ — Mortgage servicing rights — 7,786 — 82 Assets held for sale — — — 2,476 Foreclosed real estate — — 65 (36 ) $ — $ 7,786 $ 1,417 $ 2,522 Year Ended December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) (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 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. Prior to 2017 there were partial impairments in certain strata and, as a result, a valuation allowance was recorded. During the years ended December 31, 2018 and 2017, the fair value of these strata increased due to slower loan prepayment speeds and reductions in the discount rate from 14% at December 31, 2016 to 12% at December 31, 2018 resulting in partial reversals of $82,000 and $334,000 in the valuation allowance, respectively. During the year ended December 31, 2017, the Company recognized an impairment write-down of $225,000 upon transferring a branch location which was 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. During the year ended December 31, 2018, the Company sold three buildings which previously served as branch offices and recognized gains on sale of $2,476,000. See Note 5 for additional information. 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 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, 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Certificates of deposit $ 2,205 $ 2,196 $ — $ 2,196 $ — Securities available for sale 50,556 50,556 — 50,556 — Loans held for sale 38,474 38,474 — 38,474 — Loans, net 483,846 473,612 — — 473,612 Derivative assets 637 637 — 637 — Financial liabilities: Deposits $ 437,130 $ 435,964 $ — $ 435,964 $ — FHLBB advances 89,036 88,894 — 88,894 — Derivative liabilities 263 263 — 263 — December 31, 2017 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 — |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 18. SEGMENT INFORMATION Effective January 1, 2018, management began reporting its activities in one of two business segments, namely Envision Bank (“EB”) and Envision Mortgage (“EM”). Comparative information for the 2017 period has been prepared on a basis consistent with the methodology used in 2018. Envision Bank operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s five full service branch offices and investing those funds in residential and commercial real estate loans, home equity lines of credit, construction loans, commercial and industrial loans, and consumer loans. Envision Mortgage’s operations primarily consist of the origination and sale of residential mortgage loans and the servicing of loans sold to government-sponsored entities. A portion of the loans originated by Envision Mortgage are held in the loan portfolio of Envision Bank. Segment information as of and for the year ended December 31, 2018, follows: For the Year Ended December 31, 2018 Envision Bank Envision Mortgage Consolidated Total (in thousands) Net interest income $ 15,664 $ 1,032 $ 16,696 Provision for loan losses 762 — 762 Net interest income after provision for loan losses 14,902 1,032 15,934 Non-interest income: Customer service fees 1,344 120 1,464 Gain on loan origination and sale activities, net (1) — 8,859 8,859 Mortgage servicing fees, net (310 ) 1,574 1,264 Gain on sales of buildings 2,476 — 2,476 Other 520 420 940 Total non-interest income 4,030 10,973 15,003 Non-interest expenses: Salaries and employee benefits 6,793 12,972 19,765 Occupancy and equipment 1,507 1,366 2,873 Restructuring charges — 968 968 Other non-interest expenses 4,476 3,590 8,066 Total non-interest expenses 12,776 18,896 31,672 Income (loss) before income taxes and elimination of inter-segment profit $ 6,156 $ (6,891 ) (735 ) Elimination of inter-segment profit (1,320 ) Loss before income taxes (2,055 ) Income tax expense 31 Net loss $ (2,086 ) Total assets, December 31, 2018 $ 526,871 $ 87,469 $ 614,340 (1) Before elimination of inter-segment profit The information above was derived from the internal management reporting system used by management to measure performance of the segments. The Company’s internal transfer pricing arrangements determined by management primarily consist of the following: 1. EM’s cost of funds is based on the weighted average rate of overnight advances from the FHLBB for the period. 2. EM is credited with service released premiums and a sales premium totaling 1.50% for new loans transferred to EB’s loans held for investment, and a 1.00% fee for HELOC originations. This income for the year ended December 31, 2018 totaled $1,320,000. 3. Loan servicing fees are charged to EB by EM based on the number of residential mortgage loans held in portfolio at a rate of 0.14% per annum and amounted to $310,000 for the year ended December 31, 2018. 4. Certain cost centers provide services to both business segments. The cost centers include Accounting, Marketing, IT and Administration. Costs which are common to both business segments are referred to as “indirect costs” and are allocated using relevant benchmarks, e.g. headcount, number of accounts, etc. Segment information as of and for the year ended December 31, 2017 follows: For the Year Ended December 31, 2017 Envision Bank Envision Mortgage Consolidated Total (in thousands) Net interest income $ 13,827 $ 1,003 $ 14,830 Provision for loan losses 540 — 540 Net interest income after provision for loan losses 13,287 1,003 14,290 Non-interest income: Customer service fees 1,355 100 1,455 Gain on loan origination and sale activities, net (1) — 10,047 10,047 Mortgage servicing fees, net (258 ) 1,731 1,473 Other 408 476 884 Total non-interest income 1,505 12,354 13,859 Non-interest expenses: Salaries and employee benefits 6,243 12,488 18,731 Occupancy and equipment 1,392 1,263 2,655 Restructuring charges — 594 594 Merger and integration costs 19 512 531 Other non-interest expenses 3,955 3,356 7,311 Total non-interest expenses 11,609 18,213 29,822 Income (loss) before income taxes and elimination of inter-segment profit $ 3,183 $ (4,856 ) (1,673 ) Elimination of inter-segment profit (896 ) Loss before income taxes (2,569 ) Income tax benefit (443 ) Net loss $ (2,126 ) Total assets, December 31, 2017 $ 468,515 $ 63,377 $ 531,892 (1) Before elimination of inter-segment profit The information above was derived from the internal management reporting system used by management to measure performance of the segments. The Company’s internal transfer pricing arrangements determined by management primarily consist of the following: 1. EM’s cost of funds is based on the weighted average rate of overnight advances from the FHLBB for the period. 2. EM is credited with service released premiums and a sales premium totaling 1.50% for new loans transferred to EB’s loans held for investment, and a 1.00% fee for HELOC originations. This income for the year ended December 31, 2017 totaled $897,000. 3. Loan servicing fees are charged to EB by EM based on the number of residential mortgage loans held in portfolio at a rate of 0.14% per annum and amounted to $258,000 for the year ended December 31, 2017. 4. Certain cost centers provide services to both business segments. The cost centers include Accounting, Marketing, IT and Administration. Costs which are common to both business segments are referred to as “indirect costs” and are allocated using relevant benchmarks, e.g. headcount, number of accounts, etc. |
Other Non-Interest Expenses
Other Non-Interest Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Non-Interest Expenses | 1 9 . OTHER NON-INTEREST EXPENSES Included in other non-interest expenses in 2018 and 2017 are certain items exceeding 1% of the Company’s total interest and non-interest income as follows: 2018 2017 (In thousands) Software amortization and maintenance $ 754 $ 789 Card related expenses 470 359 Data communication and telephone 495 463 Directors fees, including stock-based compensation 613 407 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 20 . RESTRUCTURING CHARGES 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. During the fourth quarter of 2018, the Company finalized a plan to consolidate mortgage banking operations in the Company’s North Attleboro loan operations center. As a result, the Company eliminated fifteen administrative positions supporting the origination of residential mortgages in its Andover loan operations center and added eight similar positions in its North Attleboro location. Approximately twenty-five employees, including loan originators, remain in the Andover location. Terminated employees were given a severance package based on their length of service with the Company. In addition, retention bonuses were offered to certain employees. The total cost of severance payments and retention bonuses amounted to $235,000 and is included in the restructuring charges in the accompanying statement of operations. As more fully disclosed in Note 5, the Company vacated all but approximately 4,200 square feet of its remaining lease space in Andover and recorded a cease use fair value liability of $565,000 which is included in the restructuring charge in the fourth quarter of 2018. In addition to the cease use liability, the Company also recognized an impairment write-down of $168,000 for furniture and equipment which is no longer expected to be used in operations. This write-down is also included in the restructuring charge recorded in the fourth quarter of 2018. |
Parent Company Condensed Financ
Parent Company Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Condensed Financial Statements | 21 . PARENT COMPANY CONDENSED FINANCIAL STATEMENTS Financial information as of December 31, 2018 and 2017 and for the years then ended pertaining to Randolph Bancorp, Inc. is as follows: BALANCE SHEETS December 31, December 31, 2018 2017 Assets Cash and due from bank $ 6,850 $ 8,187 Due from Envision Bank — 141 Investment in Envision Bank 66,971 68,777 ESOP loan 4,266 4,378 Total assets $ 78,087 $ 81,483 Liabilities Accounts payable $ 70 $ — Due to Envision Bank 56 — 126 — Total liabilities Stockholders' Equity Common stock 60 61 Additional paid-in capital 55,608 56,493 Retained earnings 28,329 30,415 ESOP-Unearned compensation (4,132 ) (4,319 ) Accumulated other comprehensive loss, net of tax (1,904 ) (1,167 ) Total stockholders' equity 77,961 81,483 Total liabilities and stockholders' equity $ 78,087 $ 81,483 STATEMENTS OF OPERATIONS Years Ended December 31, 2018 2017 Interest income $ 197 $ 169 Operating expenses 197 308 Loss before incomes taxes and equity in undistributed net loss of Envision Bank — (139 ) Applicable income taxes — — Loss before equity in undistributed net loss of Envision Bank — (139 ) Equity in undistributed net loss of Envision Bank (2,086 ) (1,987 ) Net loss $ (2,086 ) $ (2,126 ) STATEMENTS OF CASH FLOWS Years Ended December 31, 2018 2017 Cash flows from operating activities: Net loss $ (2,086 ) $ (2,126 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Equity in undistributed net loss of Envision Bank 2,086 1,987 Change in intercompany receivable/payable 197 (139 ) Net cash provided by (used in) operating activities 197 (278 ) Cash flows from investing activities: Payments received on ESOP loan 112 129 Net cash provided by investing activities 112 129 Cash flows from financing activities: Stock repurchases (1,716 ) (160 ) Stock repurchase payable 70 — Net cash used in financing activities (1,646 ) (160 ) Net change in cash and cash equivalents (1,337 ) (309 ) Cash and cash equivalents at the beginning of year 8,187 8,496 Cash and cash equivalents at end of year $ 6,850 $ 8,187 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 22 . SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) First Quarter Second Quarter Third Quarter Fourth Quarter 2018 2017 2018 2017 2018 2017 2018 2017 (Dollars in thousands, except per share data) Interest and dividend income $ 4,727 $ 3,884 $ 5,039 $ 4,175 $ 5,468 $ 4,389 $ 6,050 $ 4,492 Interest expense 745 400 1,006 485 1,208 573 1,630 652 Net interest and dividend income 3,982 3,484 4,033 3,690 4,260 3,816 4,420 3,840 Provision (credit) for loan losses 95 235 (90 ) 100 178 — 579 205 Gain on loan origination and sales activities, net 1,547 2,038 1,854 2,520 1,956 2,705 2,183 1,888 Other non-interest income 861 1,372 929 914 1,252 866 3,102 660 Total non-interest income 2,408 3,410 2,783 3,434 3,208 3,571 5,285 2,548 Merger and integration costs — 167 — 357 — 7 — — Other non-interest expense 6,998 6,962 7,912 7,071 7,427 7,202 9,337 8,056 Total non-interest expense 6,998 7,129 7,912 7,428 7,427 7,209 9,337 8,056 Provision (benefit) for income taxes 4 (23 ) 4 (254 ) 5 129 17 (295 ) Net income (loss) $ (707 ) $ (447 ) $ (1,010 ) $ (150 ) $ (142 ) $ 49 $ (228 ) $ (1,578 ) Basic and diluted earnings (loss) per share $ (0.13 ) $ (0.08 ) $ (0.18 ) $ (0.03 ) $ (0.03 ) $ 0.01 $ (0.04 ) $ (0.28 ) Weighted average common shares (basic and diluted) 5,603,886 5,420,356 5,580,683 5,425,033 5,567,596 5,429,564 5,526,416 5,597,762 As disclosed in Note 20, the Company recognized restructuring charges in the fourth quarter of 2017 and 2018 associated with its mortgage banking operations. Included in other non-interest expense in the fourth quarter of 2018 and 2017 are $875,000 and $594,000, respectively, of expenses incurred in connection with such restructurings. As disclosed in Note 5, the Company recognized a gain of $2,261,000 on the sale of its former Boston branch location in the fourth quarter of 2018. The Company recognized an impairment write-down of $225,000 in the fourth quarter of 2017 on a branch office 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 Tax Act in December 2017, the Company recognized a tax benefit of $462,000 due to repeal of the AMT in the fourth quarter of 2017. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Randolph Bancorp, Inc. (a Massachusetts corporation) and its wholly-owned subsidiary, Envision Bank (together, the “Company”). The Bank has subsidiaries involved in owning investment securities and foreclosed real estate and a subsidiary which provides loan closing services. All intercompany accounts and transactions have been eliminated in consolidation. |
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 five 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 Bank is also actively involved in the sale and servicing of residential mortgage loans in the secondary market. 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. 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 of Boston Stock | Federal Home Loan Bank of Boston 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 and related derivatives | Loans held for sale and related derivatives 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 generally done on a servicing released basis. The Bank utilizes the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments” for its residential mortgage loans being held for sale. Fair value is determined based on either commitments in effect from investors or prevailing market price and include the value of mortgage servicing rights. Gains and losses on the sales of 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 loan origination and sale activities 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 for the delivery of mortgage loans to third party investors including To Be Announced securities (“TBAs”)) and loans held for sale. |
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 generally 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, 2018 and 2017, the Company determined that its obligations in connection with the recourse provisions of its loan sale agreements were insignificant. |
Foreclosed Real Estate | Foreclosed real estate Real estate 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, 2018 and 2017 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, 2018 and 2017. |
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, 2018 2017 (In thousands) Securities available for sale: Net unrealized loss $ (1,334 ) $ (624 ) Tax effect (313 ) (313 ) Net-of-tax amount (1,647 ) (937 ) Supplemental retirement plan Unrecognized net actuarial loss (605 ) (667 ) Unrecognized net prior service credit 395 484 (210 ) (183 ) Tax effect (47 ) (47 ) Net-of-tax amount (257 ) (230 ) Accumulated other comprehensive loss $ (1,904 ) $ (1,167 ) In 2019, 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 loss at December 31, 2018. 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 Prior to 2018, the Company’s operations were managed, and financial performance was evaluated, by the chief operating decision-maker on a company-wide basis. As a result, management had determined there to be a single business segment for financial reporting purposes through December 31, 2017. Due to the significance of the Company’s mortgage banking operations and the strategic focus on this business, management prepared its 2018 operating budget by breaking-out its mortgage banking activities, including residential loan origination and loan servicing. As a result, effective January 1, 2018, the Company is reporting two business segments, namely, “Envision Bank” and “Envision Mortgage”. Comparative information for 2017 has been prepared on a basis consistent with the methodology used in 2018. As part of this process, management analyzed costs incurred by departments providing services to both segments (indirect costs), such as IT, Marketing, Accounting and Administration, to determine the allocation of indirect costs to each business segment in order to fully measure each segment’s results of operations. See Note 18 for disclosure of the Company’s segment information. |
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. 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 2018 and 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 . This Update provides a revenue recognition framework for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other accounting standards. This ASU, as amended by ASU 2015-14, is effective for emerging growth companies in fiscal years beginning after December 15, 2018, including interim periods therein with early adoption permitted. The timing of the Company’s revenue recognition is not expected to materially change. The Company's revenue relates principally to financial instruments, which are explicitly excluded from the scope of the new guidance. Adoption of this standard on January 1, 2019 did not have a material impact on the Company’s consolidated financial statements. In January 2016, FASB issued ASU 2016-01, Financial Instruments 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 August 2018, the FASB issued ASU 2018-13 Fair Value Measurement – Changes to the Disclosure Requirements for Fair Value Measurement, |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2017 consolidated financial statements in order to conform to the presentations used in the 2018 consolidated financial statements. Such reclassifications had no impact on net loss as presented in such financial statements . |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 (In thousands) Securities available for sale: Net unrealized loss $ (1,334 ) $ (624 ) Tax effect (313 ) (313 ) Net-of-tax amount (1,647 ) (937 ) Supplemental retirement plan Unrecognized net actuarial loss (605 ) (667 ) Unrecognized net prior service credit 395 484 (210 ) (183 ) Tax effect (47 ) (47 ) Net-of-tax amount (257 ) (230 ) Accumulated other comprehensive loss $ (1,904 ) $ (1,167 ) |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Debt securities: U.S. Government-sponsored enterprises $ 3,999 $ 13 $ (31 ) $ 3,981 Corporate 1,524 6 (18 ) 1,512 Municipal 1,489 18 — 1,507 Residential mortgage-backed securities: U.S. Government-sponsored enterprises 26,989 71 (754 ) 26,306 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises 9,094 — (487 ) 8,607 U.S. Government-guaranteed 1,796 — (33 ) 1,763 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 1,642 — (17 ) 1,625 U.S. Government-guaranteed 4,839 2 (104 ) 4,737 Total debt securities 51,372 110 (1,444 ) 50,038 Mutual fund 518 — — 518 Total securities available for sale $ 51,890 $ 110 $ (1,444 ) $ 50,556 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 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of debt securities by contractual maturity at December 31, 2018 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 $ — $ — After 1 year through 5 years 6,173 6,149 After 5 years through 10 years 839 851 7,012 7,000 Mortgage-backed securities and collaterlized mortgage obligations 44,360 43,038 $ 51,372 $ 50,038 |
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, 2018 (In thousands) Debt securities: U.S. Government-sponsored enterprises $ — $ — $ (31 ) $ 1,969 Corporate (5 ) 497 (13 ) 506 Municipal — — — — Residential mortgage-backed securities: U.S. Government-sponsored enterprises (6 ) 7,038 (748 ) 12,981 Commercial mortgage-backed securities: U.S. Government-sponsored enterprises — — (487 ) 8,607 U.S. Government-guaranteed — — (33 ) 1,763 Collateralized mortgage obligations: U.S. Government-sponsored enterprises — — (17 ) 1,625 U.S. Government-guaranteed — — (104 ) 3,879 Total debt securities $ (11 ) $ 7,535 $ (1,433 ) $ 31,330 December 31, 2017 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 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Summary of Loan Portfolio | A summary of the loan portfolio is as follows: December 31, 2018 2017 (In thousands) Mortgage loans on real estate: Residential: One-to-four family $ 246,756 $ 198,475 Home equity loans and lines of credit 43,545 38,968 Commercial 113,642 98,755 Construction 42,139 25,357 446,082 361,555 Commercial and industrial 21,285 24,766 Consumer 19,407 16,337 Total loans 486,774 402,658 Allowance for loan losses (4,437 ) (3,737 ) Net deferred loan costs and fees, and purchase premiums 1,509 1,452 $ 483,846 $ 400,373 |
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, 2018 and 2017 and allocation of the allowance to each category as of such dates: 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, 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 Provision (credit) for loan losses 197 (67 ) 30 414 (70 ) 258 762 Loans charged-off — — (2 ) — — (119 ) (121 ) Recoveries 41 — — — — 18 59 Balance at December 31, 2018 $ 1,092 $ 292 $ 1,648 $ 765 $ 265 $ 375 $ 4,437 |
Summary of Additional Information Pertaining to the Allowance for Loan Losses | Second Residential Mortgages Commercial Commercial 1-4 Family and HELOC Real Estate Construction and Industrial Consumer Total December 31, 2018 Allowance for impaired loans $ 108 $ — $ — $ — $ — $ 174 $ 282 Allowance for non-impaired loans 984 292 1,648 765 265 201 4,155 Total allowance for loan losses $ 1,092 $ 292 $ 1,648 $ 765 $ 265 $ 375 $ 4,437 Impaired loans $ 6,291 $ 408 $ 52 $ — $ — $ 199 $ 6,950 Non-impaired loans 240,465 43,137 113,590 42,139 21,285 19,208 479,824 Total loans $ 246,756 $ 43,545 $ 113,642 $ 42,139 $ 21,285 $ 19,407 $ 486,774 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 98,403 25,357 24,766 16,337 396,825 Total loans $ 198,475 $ 38,968 $ 98,755 $ 25,357 $ 24,766 $ 16,337 $ 402,658 |
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, 2018 and 2017: 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, 2018 Residential one-to-four family $ 655 $ 207 $ 635 $ 1,497 $ 2,474 Home equity loans and lines of credit 520 — — 520 407 Commercial real estate — — — — — Construction — — — — — Commercial and industrial — — — — — Consumer 25 4 — 29 149 Total $ 1,200 $ 211 $ 635 $ 2,046 $ 3,030 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 |
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, 2018 Impaired loans without a valuation allowance: Residential one-to-four family $ 4,280 $ 4,280 $ — Home equity loans and lines of credit 408 408 — Commercial real estate 52 52 — Total 4,740 4,740 — Impaired loans with a valuation allowance: Residential one-to-four family 2,011 2,011 108 Consumer 199 199 174 Total 2,210 2,210 282 Total impaired loans $ 6,950 $ 6,950 $ 282 December 31, 2017 Impaired loans without a valuation allowance: Residential one-to-four family $ 2,641 $ 2,641 $ — Home equity loans and lines of credit 247 247 — Commercial real estate 257 257 — Total 3,145 3,145 — Impaired loans with a valuation allowance: Residential one-to-four family 2,564 2,564 160 Home equity loans and lines of credit 29 29 1 Commercial real estate 95 95 1 Total 2,688 2,688 162 Total impaired loans $ 5,833 $ 5,833 $ 162 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, 2018 Residential one-to-four family $ 6,781 $ 210 $ 84 Home equity loans and lines of credit 420 36 36 Commercial real estate 244 15 — Consumer 50 2 — Total $ 7,495 $ 263 $ 120 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 |
Summary of Company's Loans by Risk Rating | The following table presents the Company’s loans by risk rating at December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Commercial Real Construction Commercial and Industrial Commercial Real Construction Commercial and Industrial (In thousands) Loans rated 1 - 3A $ 113,642 $ 42,139 $ 21,285 $ 98,556 $ 25,357 $ 24,766 Loans rated 4 — — — — — — Loans rated 5 — — — 199 — — $ 113,642 $ 42,139 $ 21,285 $ 98,755 $ 25,357 $ 24,766 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Mortgage servicing rights: (In thousands) Balance at beginning of year $ 6,397 $ 8,486 Additions through originations 2,380 2,310 Amortization (983 ) (1,071 ) Sales — (3,238 ) Balance at end of year $ 7,794 $ 6,487 Valuation allowance: Balance at beginning of year $ 90 $ 424 Provision (credit) (82 ) (334 ) Balance at end of year $ 8 $ 90 Mortgage servicing rights, amortized cost $ 7,786 $ 6,397 Mortgage servicing rights, fair value $ 8,554 $ 6,485 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Useful Life (In thousands) (In years) Land and improvements $ 1,025 $ 2,525 Buildings and improvements 3,280 4,457 5 to 50 Leasehold improvements 2,136 1,503 3 to 10 Furniture and equipment 5,032 4,765 3 to 10 Construction-in-progress 84 101 11,557 13,351 Less accumulated depreciation and amortization (5,189 ) (4,681 ) $ 6,368 $ 8,670 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Summary of Deposit Balances by Type | A summary of deposit balances, by type, is as follows: December 31, 2018 2017 (In thousands) Demand deposits $ 64,229 $ 62,130 NOW accounts 42,802 44,988 Money market deposits 60,843 56,668 Regular and other savings 101,137 102,528 Brokered deposits 10,088 7,106 Total non-certificate accounts 279,099 273,420 Term certificates less than $250,000 99,491 80,538 Term certificates of $250,000 or more 8,048 12,878 Term certificates - brokered 50,492 — Total certificate accounts 158,031 93,416 $ 437,130 $ 366,836 |
Summary of Term Certificates, Including Brokered Deposits, by Maturity | A summary of term certificates, including brokered deposits, by maturity is as follows: December 31, 2018 December 31, 2017 Weighted Weighted Average Average Maturing during: Amount Rate Amount Rate (Dollars in thousands) 2018 $ — — % 49,550 0.84 % 2019 89,167 1.68 22,470 1.20 2020 40,847 2.16 8,754 1.44 2021 12,785 2.16 4,873 1.57 2022 14,101 1.98 7,769 1.65 2023 1,131 1.38 — — $ 158,031 1.87 % $ 93,416 1.09 % |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings from FHLBB | A summary of borrowings from the FHLBB at December 31, 2018 and 2017 is as follows: 2018 2017 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands) Fixed-rate advances maturing: 2018 $ — — % $ 69,337 1.55 % 2019* 84,184 2.57 1,500 1.00 2020* 2,894 1.49 3,129 1.52 2021* 1,958 1.33 1,988 1.34 $ 89,036 2.50 % $ 75,954 1.54 % * 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, 2018 and 2017 are overnight advances and advances having a one-month maturity of $82.7 million and $64.7 million, respectively. Selected information for such short-term borrowings for the years presented is as follows (in 000’s): 2018 2017 Average daily balance $ 63,552 $ 34,656 Maximum outstanding at any month end 108,819 64,739 |
Income Taxes (Table)
Income Taxes (Table) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Current tax expense (benefit): Federal $ — $ (462 ) State 31 19 Total current tax expense (benefit) 31 (443 ) Deferred tax expense (benefit): Federal (541 ) (518 ) Effect of change in federal tax rate — 1,627 State 73 (23 ) (468 ) 1,086 Change in valuation allowance 468 541 Effect of change in federal tax rate - valuation allowance — (1,627 ) Total deferred tax expense — — Total tax expense (benefit) $ 31 $ (443 ) |
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, 2018 2017 Statutory federal tax (21% in 2018 and 34% in 2017) $ (432 ) $ (874 ) Increase (decrease) resulting from: State taxes, net of federal tax effect 83 (3 ) Bank-owned life insurance (46 ) (52 ) Tax exempt income (25 ) (118 ) Dividends received deduction — (5 ) Change in valuation allowance 468 541 Change in AOCI deferred effect — (36 ) Effect of change in federal tax rate — 1,627 Effect of change in federal tax rate-valuation allowance — (1,627 ) Other, net (17 ) 104 Total tax expense (benefit) $ 31 $ (443 ) |
Summary of Components of Net Deferred Tax Asset | The components of the net deferred tax asset are as follows (in thousands): December 31, 2018 2017 Deferred tax assets: Federal $ 5,134 $ 4,247 State 1,134 1,008 6,268 5,255 Valuation allowance (3,246 ) (2,778 ) 3,022 2,477 Deferred tax liabilities: Federal (2,189 ) (1,806 ) State (833 ) (671 ) (3,022 ) (2,477 ) 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, 2018 2017 Employee benefit plans $ 825 $ 951 Allowance for loan losses 1,247 1,050 Funded status of post-retirement benefits (47 ) (47 ) Securities available for sale (313 ) (313 ) Depreciation and amortization 249 193 Net deferred loan origination costs (357 ) (321 ) Mortgage servicing rights (2,082 ) (1,624 ) Net operating loss carryforward 2,864 2,171 Charitable contribution carryforward 700 702 Derivatives (105 ) (98 ) Stock-based compensation 121 48 Other, net 144 66 3,246 2,778 Valuation allowance on deferred tax assets (3,246 ) (2,778 ) Net deferred tax asset $ — $ — |
Minimum Regulatory Capital Re_2
Minimum Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Summary of Actual and Minimum Capital Amounts and Ratios | The Bank’s actual and minimum capital amounts and ratios are presented in the following table: Minimum To Be Well For Minimum Capitalized Under Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2018 Total capital (to risk weighted assets) $ 72,523 16.1 % $ 36,084 8.0 % $ 45,105 10.0 % Tier 1 capital (to risk weighted assets) 68,086 15.1 27,063 6.0 36,084 8.0 Common equity Tier 1 capital (to risk weighted assets) 68,086 15.1 20,297 4.5 29,318 6.5 Tier 1 capital (to average assets) 68,086 10.9 25,056 4.0 31,320 5.0 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 |
Post-retirement Plans (Tables)
Post-retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 and 2017, the only active participants in the Plan were directors. Information pertaining to activity in the Plan follows: Years Ended December 31, 2018 2017 (In thousands) Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 201 201 Benefits paid (201 ) (201 ) Fair value of plan assets at end of year — — Change in benefit obligation: Benefit obligation at beginning of year 1,724 1,836 Service cost 10 10 Interest cost 48 53 Actuarial (gain) loss (20 ) 26 Benefits paid (201 ) (201 ) Benefit obligation at end of year 1,561 1,724 Unfunded status and accrued supplemental pension cost at year end $ (1,561 ) $ (1,724 ) Accumulated benefit obligation at year end $ 1,561 $ 1,724 |
Summary of Assumptions Used to Determine Benefit Obligation | The assumptions used to determine the benefit obligation are as follows: December 31, 2018 2017 Discount rate 3.60 % 2.90 % 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, 2018 and 2017: 2018 2017 Discount rate 2.90 % 3.05 % 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, 2018 and 2017, consists of the following: 2018 2017 (In thousands) Service cost $ 10 $ 10 Interest cost 48 53 Amortization of net actuarial loss 41 38 Amortization of prior service credit (89 ) (89 ) $ 10 $ 12 |
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) 2019 $ 201 2020 201 2021 201 2022 213 2023 334 2024-2028 626 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Grants of Options to Purchase Shares of Common Stock | The Company made the following grants of options to purchase shares of common stock during the years ended December 31, 2018 and 2017: 2018 2017 Options granted 27,000 340,387 Vesting period (years) 3-5 3-5 Expiration period (years) 10 10 Expected volatility 29.87 % 23.59% - 29.87% Expected life (years) 6.5 3.0 - 6.5 Expected dividend yield — — Risk free interest rate 2.68% - 2.77% 1.66% - 2.06% Option fair value $5.78 - $5.83 $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, 2018 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, 2018 316,009 $ 14.66 9.78 $ 219,374 Granted 27,000 16.15 5.79 — Forfeited (30,304 ) 14.71 6.50 — Balance at December 31, 2018 312,705 $ 14.78 8.73 $ — Exercisable at December 31, 2018 59,936 $ 14.66 — $ — Unrecognized compensation cost (inclusive of directors' options) $ 1,075,000 Weighted average remaining recognition period (years) 3.62 |
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, 2018: Restricted Stock Awards Weighted Average Grant Price Restricted stock awards at January 1, 2018 176,239 $ 14.66 Granted — — Vested (33,835 ) 14.66 Forfeited (15,710 ) 14.66 Non-vested stock awards at December 31, 2018 126,694 $ 14.66 Unrecognized compensation cost $ 1,739,000 Weighted average remaining recognition period (years) 3.68 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Average Number of Shares Outstanding Used to Calculate Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the calculation of the average number of shares outstanding used to calculate the basic and diluted earnings (loss) per share for the periods indicated: 2018 2017 Average number of common shares outstanding 5,994,373 5,902,981 Less: Average unallocated ESOP shares (423,653 ) (434,467 ) 5,570,720 5,468,514 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rent Commitments | Pursuant to the terms of non-cancelable lease and sublease agreements in effect at December 31, 2018, future minimum rent commitments are as follows: Years Ending December 31, Leases Sub-lease Net (In thousands) 2019 $ 1,027 (87 ) $ 940 2020 919 (89 ) 830 2021 743 (91 ) 652 2022 545 (94 ) 451 2023 114 (16 ) 98 Thereafter — — — $ 3,348 $ (377 ) $ 2,971 |
Summary of Financial Instruments Outstanding Contract Amounts Represent Credit Risk | At December 31, 2018 and 2017, the following financial instruments were outstanding whose contract amounts represent credit risk: 2018 2017 (In thousands) Commitments to originate loans $ 38,404 $ 35,549 Unused lines and letters of credit 45,977 39,968 Unadvanced funds on construction loans 14,175 6,967 Overdraft lines of credit 8,475 8,996 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 (In thousands) Assets: Securities available for sale: Debt securities $ — $ 50,038 $ — $ 50,038 Mutual fund — 518 — 518 Portfolio loans (fair value option) 3,680 — 3,680 Loans held for sale (fair value option) — 38,474 — 38,474 Derivative loan commitments — 627 — 627 Forward loan sale commitments — 10 — 10 Liabilities: Forward loan sale commitments, including TBAs — 263 — 263 December 31, 2017 Assets: Securities available for sale: Debt securities $ — $ 61,043 $ — $ 61,043 Mutual fund — 533 — 533 Loans held for sale (fair value option) — 25,390 — 25,390 Derivative loan commitments — 363 — 363 Forward loan sale commitments — 4 — 4 Liabilities: Forward loan sale commitments — 19 — 19 |
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 and liabilities as of December 31, 2018 and 2017. The gains and losses represent the amounts recorded during 2018 and 2017 on the assets and liabilities held at year-end. There no liabilities recorded at fair value on a non-recurring basis as of December 31, 2018 and 2017. Year Ended December 31, 2018 December 31, 2018 Level 1 Level 2 Level 3 Total Assets: (In thousands) Collateral dependent impaired loans $ — $ — $ 1,352 $ — Mortgage servicing rights — 7,786 — 82 Assets held for sale — — — 2,476 Foreclosed real estate — — 65 (36 ) $ — $ 7,786 $ 1,417 $ 2,522 Year Ended December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) (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 |
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 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, 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Certificates of deposit $ 2,205 $ 2,196 $ — $ 2,196 $ — Securities available for sale 50,556 50,556 — 50,556 — Loans held for sale 38,474 38,474 — 38,474 — Loans, net 483,846 473,612 — — 473,612 Derivative assets 637 637 — 637 — Financial liabilities: Deposits $ 437,130 $ 435,964 $ — $ 435,964 $ — FHLBB advances 89,036 88,894 — 88,894 — Derivative liabilities 263 263 — 263 — December 31, 2017 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 — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Segment information as of and for the year ended December 31, 2018, follows: For the Year Ended December 31, 2018 Envision Bank Envision Mortgage Consolidated Total (in thousands) Net interest income $ 15,664 $ 1,032 $ 16,696 Provision for loan losses 762 — 762 Net interest income after provision for loan losses 14,902 1,032 15,934 Non-interest income: Customer service fees 1,344 120 1,464 Gain on loan origination and sale activities, net (1) — 8,859 8,859 Mortgage servicing fees, net (310 ) 1,574 1,264 Gain on sales of buildings 2,476 — 2,476 Other 520 420 940 Total non-interest income 4,030 10,973 15,003 Non-interest expenses: Salaries and employee benefits 6,793 12,972 19,765 Occupancy and equipment 1,507 1,366 2,873 Restructuring charges — 968 968 Other non-interest expenses 4,476 3,590 8,066 Total non-interest expenses 12,776 18,896 31,672 Income (loss) before income taxes and elimination of inter-segment profit $ 6,156 $ (6,891 ) (735 ) Elimination of inter-segment profit (1,320 ) Loss before income taxes (2,055 ) Income tax expense 31 Net loss $ (2,086 ) Total assets, December 31, 2018 $ 526,871 $ 87,469 $ 614,340 (1) Before elimination of inter-segment profit Segment information as of and for the year ended December 31, 2017 follows: For the Year Ended December 31, 2017 Envision Bank Envision Mortgage Consolidated Total (in thousands) Net interest income $ 13,827 $ 1,003 $ 14,830 Provision for loan losses 540 — 540 Net interest income after provision for loan losses 13,287 1,003 14,290 Non-interest income: Customer service fees 1,355 100 1,455 Gain on loan origination and sale activities, net (1) — 10,047 10,047 Mortgage servicing fees, net (258 ) 1,731 1,473 Other 408 476 884 Total non-interest income 1,505 12,354 13,859 Non-interest expenses: Salaries and employee benefits 6,243 12,488 18,731 Occupancy and equipment 1,392 1,263 2,655 Restructuring charges — 594 594 Merger and integration costs 19 512 531 Other non-interest expenses 3,955 3,356 7,311 Total non-interest expenses 11,609 18,213 29,822 Income (loss) before income taxes and elimination of inter-segment profit $ 3,183 $ (4,856 ) (1,673 ) Elimination of inter-segment profit (896 ) Loss before income taxes (2,569 ) Income tax benefit (443 ) Net loss $ (2,126 ) Total assets, December 31, 2017 $ 468,515 $ 63,377 $ 531,892 (1) Before elimination of inter-segment profit |
Other Non-Interest Expenses (Ta
Other Non-Interest Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 and 2017 are certain items exceeding 1% of the Company’s total interest and non-interest income as follows: 2018 2017 (In thousands) Software amortization and maintenance $ 754 $ 789 Card related expenses 470 359 Data communication and telephone 495 463 Directors fees, including stock-based compensation 613 407 |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Financial information as of December 31, 2018 and 2017 and for the years then ended pertaining to Randolph Bancorp, Inc. is as follows: BALANCE SHEETS December 31, December 31, 2018 2017 Assets Cash and due from bank $ 6,850 $ 8,187 Due from Envision Bank — 141 Investment in Envision Bank 66,971 68,777 ESOP loan 4,266 4,378 Total assets $ 78,087 $ 81,483 Liabilities Accounts payable $ 70 $ — Due to Envision Bank 56 — 126 — Total liabilities Stockholders' Equity Common stock 60 61 Additional paid-in capital 55,608 56,493 Retained earnings 28,329 30,415 ESOP-Unearned compensation (4,132 ) (4,319 ) Accumulated other comprehensive loss, net of tax (1,904 ) (1,167 ) Total stockholders' equity 77,961 81,483 Total liabilities and stockholders' equity $ 78,087 $ 81,483 |
Statements of Operations | Financial information as of December 31, 2018 and 2017 and for the years then ended pertaining to Randolph Bancorp, Inc. is as follows: STATEMENTS OF OPERATIONS Years Ended December 31, 2018 2017 Interest income $ 197 $ 169 Operating expenses 197 308 Loss before incomes taxes and equity in undistributed net loss of Envision Bank — (139 ) Applicable income taxes — — Loss before equity in undistributed net loss of Envision Bank — (139 ) Equity in undistributed net loss of Envision Bank (2,086 ) (1,987 ) Net loss $ (2,086 ) $ (2,126 ) |
Statements of Cash Flows | Financial information as of December 31, 2018 and 2017 and for the years then ended pertaining to Randolph Bancorp, Inc. is as follows: STATEMENTS OF CASH FLOWS Years Ended December 31, 2018 2017 Cash flows from operating activities: Net loss $ (2,086 ) $ (2,126 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Equity in undistributed net loss of Envision Bank 2,086 1,987 Change in intercompany receivable/payable 197 (139 ) Net cash provided by (used in) operating activities 197 (278 ) Cash flows from investing activities: Payments received on ESOP loan 112 129 Net cash provided by investing activities 112 129 Cash flows from financing activities: Stock repurchases (1,716 ) (160 ) Stock repurchase payable 70 — Net cash used in financing activities (1,646 ) (160 ) Net change in cash and cash equivalents (1,337 ) (309 ) Cash and cash equivalents at the beginning of year 8,187 8,496 Cash and cash equivalents at end of year $ 6,850 $ 8,187 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Quarterly Financial Data | First Quarter Second Quarter Third Quarter Fourth Quarter 2018 2017 2018 2017 2018 2017 2018 2017 (Dollars in thousands, except per share data) Interest and dividend income $ 4,727 $ 3,884 $ 5,039 $ 4,175 $ 5,468 $ 4,389 $ 6,050 $ 4,492 Interest expense 745 400 1,006 485 1,208 573 1,630 652 Net interest and dividend income 3,982 3,484 4,033 3,690 4,260 3,816 4,420 3,840 Provision (credit) for loan losses 95 235 (90 ) 100 178 — 579 205 Gain on loan origination and sales activities, net 1,547 2,038 1,854 2,520 1,956 2,705 2,183 1,888 Other non-interest income 861 1,372 929 914 1,252 866 3,102 660 Total non-interest income 2,408 3,410 2,783 3,434 3,208 3,571 5,285 2,548 Merger and integration costs — 167 — 357 — 7 — — Other non-interest expense 6,998 6,962 7,912 7,071 7,427 7,202 9,337 8,056 Total non-interest expense 6,998 7,129 7,912 7,428 7,427 7,209 9,337 8,056 Provision (benefit) for income taxes 4 (23 ) 4 (254 ) 5 129 17 (295 ) Net income (loss) $ (707 ) $ (447 ) $ (1,010 ) $ (150 ) $ (142 ) $ 49 $ (228 ) $ (1,578 ) Basic and diluted earnings (loss) per share $ (0.13 ) $ (0.08 ) $ (0.18 ) $ (0.03 ) $ (0.03 ) $ 0.01 $ (0.04 ) $ (0.28 ) Weighted average common shares (basic and diluted) 5,603,886 5,420,356 5,580,683 5,425,033 5,567,596 5,429,564 5,526,416 5,597,762 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)Segmentshares | Dec. 31, 2017USD ($)shares | |
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 | |
Number of business segments | Segment | 2 | |
Anti-dilutive securities excluded from computation of earnings (loss) per share | shares | 0 | 0 |
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 classified as a troubled debt restructuring. | |
Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
FDIC insurance coverage limit | $ 250,000 | |
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% | |
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% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Loss (AOCI) and Related Tax Effects (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Total other comprehensive loss | $ (737) | $ (3) |
Accumulated other comprehensive loss | (1,904) | (1,167) |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized loss | (1,334) | (624) |
Other comprehensive Loss, Tax effect | (313) | (313) |
Total other comprehensive loss | (1,647) | (937) |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized loss | (605) | (667) |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized loss | 395 | 484 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized loss | (210) | (183) |
Other comprehensive Loss, Tax effect | (47) | (47) |
Total other comprehensive loss | $ (257) | $ (230) |
Securities Available for Sale -
Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 51,890 | $ 62,199 |
Gross Unrealized Gains | 110 | 403 |
Gross Unrealized Losses | (1,444) | (1,026) |
Fair Value | 50,556 | 61,576 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 51,372 | 61,654 |
Gross Unrealized Gains | 110 | 403 |
Gross Unrealized Losses | (1,444) | (1,014) |
Fair Value | 50,038 | 61,043 |
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 | 13 | 50 |
Gross Unrealized Losses | (31) | (24) |
Fair Value | 3,981 | 4,025 |
Debt Securities [Member] | Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,524 | 2,005 |
Gross Unrealized Gains | 6 | 27 |
Gross Unrealized Losses | (18) | (8) |
Fair Value | 1,512 | 2,024 |
Debt Securities [Member] | Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,489 | 12,707 |
Gross Unrealized Gains | 18 | 179 |
Gross Unrealized Losses | (18) | |
Fair Value | 1,507 | 12,868 |
Debt Securities [Member] | Residential Mortgage-backed Securities, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 26,989 | 18,729 |
Gross Unrealized Gains | 71 | 118 |
Gross Unrealized Losses | (754) | (450) |
Fair Value | 26,306 | 18,397 |
Debt Securities [Member] | Commercial Mortgage-backed Securities, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,094 | 14,451 |
Gross Unrealized Gains | 13 | |
Gross Unrealized Losses | (487) | (403) |
Fair Value | 8,607 | 14,061 |
Debt Securities [Member] | Commercial Mortgage Backed Securities, U.S. Government-guaranteed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,796 | 2,132 |
Gross Unrealized Losses | (33) | (6) |
Fair Value | 1,763 | 2,126 |
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,642 | 1,871 |
Gross Unrealized Gains | 12 | |
Gross Unrealized Losses | (17) | (5) |
Fair Value | 1,625 | 1,878 |
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Guaranteed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,839 | 5,760 |
Gross Unrealized Gains | 2 | 4 |
Gross Unrealized Losses | (104) | (100) |
Fair Value | 4,737 | 5,664 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 518 | 545 |
Gross Unrealized Losses | (12) | |
Fair Value | $ 518 | $ 533 |
Securities Available for Sale_2
Securities Available for Sale - Investments Classified by Contractual Maturity Date (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Available-for-sale Securities, Debt Maturities, Amortized Cost | |
After 1 year through 5 years | $ 6,173 |
After 5 years through 10 years | 839 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 7,012 |
Mortgage-backed securities and collaterlized mortgage obligations | 44,360 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 51,372 |
Available-for-sale Securities, Debt Maturities, Fair Value | |
After 1 year through 5 years | 6,149 |
After 5 years through 10 years | 851 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value Total | 7,000 |
Mortgage-backed securities and collaterlized mortgage obligations | 43,038 |
Available-for-sale Securities, Debt Securities, Fair Value Total | $ 50,038 |
Securities Available for Sale_3
Securities Available for Sale - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)Debt_Security | Dec. 31, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of investment securities pledged as collateral | $ 2,010,000 | $ 2,004,000 |
Number of debt securities with unrealized losses | Debt_Security | 35 | |
Unrealized losses debt securities aggregate depreciation percentage | 3.58% | |
Proceeds from the sale of securities | $ 8,958,000 | |
Available-for-sale securities, gross realized gains | 49,000 | |
Prepayment of Commercial Mortgage-backed Security [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, gross realized losses | 33,000 | |
OTTI Write-down of Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, gross realized losses | 27,000 | |
Minimum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities on equity | $ 0 | $ 0 |
Securities Available for Sale_4
Securities Available for Sale - Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | $ (24) | |
Less Than Twelve Months, Fair Value | 6,641 | |
Over Twelve Months, Gross Unrealized Losses | (1,002) | |
Over Twelve Months, Fair Value | 47,400 | |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | $ (11) | (24) |
Less Than Twelve Months, Fair Value | 7,535 | 6,641 |
Over Twelve Months, Gross Unrealized Losses | (1,433) | (990) |
Over Twelve Months, Fair Value | 31,330 | 46,867 |
Debt Securities [Member] | US Government-sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Over Twelve Months, Gross Unrealized Losses | (31) | (24) |
Over Twelve Months, Fair Value | 1,969 | 19,676 |
Debt Securities [Member] | Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (5) | |
Less Than Twelve Months, Fair Value | 497 | |
Over Twelve Months, Gross Unrealized Losses | (13) | (8) |
Over Twelve Months, Fair Value | 506 | 988 |
Debt Securities [Member] | Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Losses | (11) | |
Less Than Twelve Months, Fair Value | 1,919 | |
Over Twelve Months, Gross Unrealized Losses | (7) | |
Over Twelve Months, Fair Value | 479 | |
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 | (6) | (1) |
Less Than Twelve Months, Fair Value | 7,038 | 1,623 |
Over Twelve Months, Gross Unrealized Losses | (748) | (449) |
Over Twelve Months, Fair Value | 12,981 | 13,163 |
Debt Securities [Member] | Commercial Mortgage-backed Securities, US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Over Twelve Months, Gross Unrealized Losses | (487) | (403) |
Over Twelve Months, Fair Value | 8,607 | 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) | |
Less Than Twelve Months, Fair Value | 2,126 | |
Over Twelve Months, Gross Unrealized Losses | (33) | |
Over Twelve Months, Fair Value | 1,763 | |
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 | |
Over Twelve Months, Gross Unrealized Losses | (17) | |
Over Twelve Months, Fair Value | 1,625 | |
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 | (104) | (99) |
Over Twelve Months, Fair Value | $ 3,879 | 3,756 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
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, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 486,774 | $ 402,658 |
Allowance for loan losses | (4,437) | (3,737) |
Net deferred loan costs and fees, and purchase premiums | 1,509 | 1,452 |
Net loans | 483,846 | 400,373 |
Real Estate Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 446,082 | 361,555 |
Commercial Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 113,642 | 98,755 |
Commercial Real Estate Loans [Member] | Real Estate Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 113,642 | 98,755 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 21,285 | 24,766 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 19,407 | 16,337 |
One-to-Four Family [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 246,756 | 198,475 |
One-to-Four Family [Member] | Residential Real Estate [Member] | Real Estate Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 246,756 | 198,475 |
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 | 43,545 | 38,968 |
Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 42,139 | 25,357 |
Construction [Member] | Real Estate Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 42,139 | $ 25,357 |
Loans - Additional Information
Loans - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)TDR | Dec. 31, 2017USD ($)TDR | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Servicing loans for participants | $ 5,596,000 | $ 5,902,000 |
Impaired loans, additional funds committed | $ 0 | |
Loans subject to troubled debt restructurings | TDR | 1 | |
Troubled debt restructuring amount | 0 | |
Allowances related to troubled debt restructurings | $ 282,000 | 162,000 |
Minimum past due days for loan rating | 90 days | |
Total loans | $ 486,774,000 | 402,658,000 |
Consumer Loans [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 149,000,000 | |
Consumer Loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 50,000,000 | |
Residential Mortgage [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,469,000 | 712,000 |
Residential Mortgage [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 936,000 | 2,512,000 |
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 |
Modified Loan Agreements [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructuring amount | 3,341,000 | 4,315,000 |
Non Accrual Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructuring amount | 366,000 | 1,085,000 |
Home Equity Loans and Lines of Credit [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 407,000 | $ 247,000 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans subject to troubled debt restructurings | TDR | 17 | 19 |
Loans subject to troubled debt restructurings, amount | $ 3,341,000 | $ 4,315,000 |
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 | 1 | 2 |
Loans subject to troubled debt restructurings, amount | $ 52,000 | $ 153,000 |
Total loans | $ 113,642,000 | 98,755,000 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 199,000 | |
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 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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Beginning balance | $ 3,737 | $ 3,271 | $ 3,737 | $ 3,271 | |||||
Provision (credit) for loan losses | $ 579 | $ 178 | $ (90) | 95 | $ 205 | $ 100 | 235 | 762 | 540 |
Loans charged-off | (121) | (153) | |||||||
Recoveries | 59 | 79 | |||||||
Ending balance | 4,437 | 3,737 | 4,437 | 3,737 | |||||
Commercial Real Estate Loans [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Beginning balance | 1,620 | 1,410 | 1,620 | 1,410 | |||||
Provision (credit) for loan losses | 30 | 210 | |||||||
Loans charged-off | (2) | ||||||||
Ending balance | 1,648 | 1,620 | 1,648 | 1,620 | |||||
Commercial and Industrial [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Beginning balance | 335 | 37 | 335 | 37 | |||||
Provision (credit) for loan losses | (70) | 263 | |||||||
Recoveries | 35 | ||||||||
Ending balance | 265 | 335 | 265 | 335 | |||||
Consumer [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Beginning balance | 218 | 145 | 218 | 145 | |||||
Provision (credit) for loan losses | 258 | 205 | |||||||
Loans charged-off | (119) | (153) | |||||||
Recoveries | 18 | 21 | |||||||
Ending balance | 375 | 218 | 375 | 218 | |||||
One-to-Four Family [Member] | Residential Real Estate [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Beginning balance | 854 | 1,018 | 854 | 1,018 | |||||
Provision (credit) for loan losses | 197 | (187) | |||||||
Recoveries | 41 | 23 | |||||||
Ending balance | 1,092 | 854 | 1,092 | 854 | |||||
Second Mortgages and HELOC [Member] | Residential Real Estate [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Beginning balance | 359 | 436 | 359 | 436 | |||||
Provision (credit) for loan losses | (67) | (77) | |||||||
Ending balance | 292 | 359 | 292 | 359 | |||||
Construction [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Beginning balance | $ 351 | $ 225 | 351 | 225 | |||||
Provision (credit) for loan losses | 414 | 126 | |||||||
Ending balance | $ 765 | $ 351 | $ 765 | $ 351 |
Loans - Summary of Additional I
Loans - Summary of Additional Information Pertaining to the Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for impaired loans | $ 282 | $ 162 | |
Allowance for non-impaired loans | 4,155 | 3,575 | |
Total allowance for loan losses | 4,437 | 3,737 | $ 3,271 |
Impaired loans | 6,950 | 5,833 | |
Non-impaired loans | 479,824 | 396,825 | |
Total loans | 486,774 | 402,658 | |
Commercial Real Estate Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for impaired loans | 1 | ||
Allowance for non-impaired loans | 1,648 | 1,619 | |
Total allowance for loan losses | 1,648 | 1,620 | 1,410 |
Impaired loans | 52 | 352 | |
Non-impaired loans | 113,590 | 98,403 | |
Total loans | 113,642 | 98,755 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for non-impaired loans | 265 | 335 | |
Total allowance for loan losses | 265 | 335 | 37 |
Non-impaired loans | 21,285 | 24,766 | |
Total loans | 21,285 | 24,766 | |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for impaired loans | 174 | ||
Allowance for non-impaired loans | 201 | 218 | |
Total allowance for loan losses | 375 | 218 | 145 |
Impaired loans | 199 | ||
Non-impaired loans | 19,208 | 16,337 | |
Total loans | 19,407 | 16,337 | |
One-to-Four Family [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for impaired loans | 108 | 160 | |
Allowance for non-impaired loans | 984 | 694 | |
Total allowance for loan losses | 1,092 | 854 | 1,018 |
Impaired loans | 6,291 | 5,205 | |
Non-impaired loans | 240,465 | 193,270 | |
Total loans | 246,756 | 198,475 | |
Second Mortgages and HELOC [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for impaired loans | 1 | ||
Allowance for non-impaired loans | 292 | 358 | |
Total allowance for loan losses | 292 | 359 | 436 |
Impaired loans | 408 | 276 | |
Non-impaired loans | 43,137 | 38,692 | |
Total loans | 43,545 | 38,968 | |
Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for non-impaired loans | 765 | 351 | |
Total allowance for loan losses | 765 | 351 | $ 225 |
Non-impaired loans | 42,139 | 25,357 | |
Total loans | $ 42,139 | $ 25,357 |
Loans - Schedule of Past Due an
Loans - Schedule of Past Due and Non-Accrual Loans by Loan Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 2,046 | $ 833 |
Non-accrual Loans | 3,030 | 2,251 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 29 | |
Non-accrual Loans | 149 | |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,200 | 833 |
30 - 59 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 25 | |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 211 | |
60 - 89 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | |
90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 635 | |
One-to-Four Family [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,497 | 737 |
Non-accrual Loans | 2,474 | 1,975 |
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 | 655 | 737 |
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 | 207 | |
One-to-Four Family [Member] | 90 Days or More Past Due [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 635 | |
Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 520 | 96 |
Non-accrual Loans | 407 | 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 | $ 520 | $ 96 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment without a valuation allowance | $ 4,740 | $ 3,145 |
Unpaid Principal Balance without a valuation allowance | 4,740 | 3,145 |
Recorded Investment with a valuation allowance | 2,210 | 2,688 |
Unpaid Principal Balance with a valuation allowance | 2,210 | 2,688 |
Related Allowance, Total impaired loans | 282 | 162 |
Recorded Investment, Total impaired loans | 6,950 | 5,833 |
Unpaid Principal Balance, Total impaired loans | 6,950 | 5,833 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment without a valuation allowance | 52 | 257 |
Unpaid Principal Balance without a valuation allowance | 52 | 257 |
Recorded Investment with a valuation allowance | 95 | |
Unpaid Principal Balance with a valuation allowance | 95 | |
Related Allowance, Total impaired loans | 1 | |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with a valuation allowance | 199 | |
Unpaid Principal Balance with a valuation allowance | 199 | |
Related Allowance, Total impaired loans | 174 | |
One-to-Four Family [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment without a valuation allowance | 4,280 | 2,641 |
Unpaid Principal Balance without a valuation allowance | 4,280 | 2,641 |
Recorded Investment with a valuation allowance | 2,011 | 2,564 |
Unpaid Principal Balance with a valuation allowance | 2,011 | 2,564 |
Related Allowance, Total impaired loans | 108 | 160 |
Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment without a valuation allowance | 408 | 247 |
Unpaid Principal Balance without a valuation allowance | $ 408 | 247 |
Recorded Investment with a valuation allowance | 29 | |
Unpaid Principal Balance with a valuation allowance | 29 | |
Related Allowance, Total impaired loans | $ 1 |
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, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | $ 7,495 | $ 5,887 |
Interest Income Recognized | 263 | 232 |
Cash Basis Interest Recognized | 120 | 83 |
Residential Real Estate [Member] | One-to-Four Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 6,781 | 4,956 |
Interest Income Recognized | 210 | 195 |
Cash Basis Interest Recognized | 84 | 82 |
Residential Real Estate [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 420 | 276 |
Interest Income Recognized | 36 | 1 |
Cash Basis Interest Recognized | 36 | 1 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 244 | 655 |
Interest Income Recognized | 15 | $ 36 |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 50 | |
Interest Income Recognized | $ 2 |
Loans - Summary of Company's Lo
Loans - Summary of Company's Loans by Risk Rating (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 486,774 | $ 402,658 |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 42,139 | 25,357 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 113,642 | 98,755 |
Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 21,285 | 24,766 |
Pass [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 42,139 | 25,357 |
Pass [Member] | Commercial Real Estate Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 113,642 | 98,556 |
Pass [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 21,285 | 24,766 |
Substandard [Member] | Commercial Real Estate Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 199 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016 | |
Servicing Assets At Amortized Value [Line Items] | |||
Unpaid principal balances of residential mortgage loans serviced for others | $ 929,289,000 | $ 771,407,000 | |
Contractually specified servicing fees, net | $ 2,165,000 | $ 2,434,000 | |
Measurement Input, Discount Rate [Member] | |||
Servicing Assets At Amortized Value [Line Items] | |||
Discount rate | 0.12 | 0.13 | 0.14 |
Measurement Input, Constant Prepayment Rate [Member] | Minimum [Member] | |||
Servicing Assets At Amortized Value [Line Items] | |||
Discount rate | 0.07 | 0.06 | |
Measurement Input, Constant Prepayment Rate [Member] | Maximum [Member] | |||
Servicing Assets At Amortized Value [Line Items] | |||
Discount rate | 0.35 | 0.24 |
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, 2018 | Dec. 31, 2017 | |
Mortgage servicing rights: | ||
Balance at beginning of year | $ 6,397 | $ 8,486 |
Additions through originations | 2,380 | 2,310 |
Amortization | (983) | (1,071) |
Sales | (3,238) | |
Balance at end of year | 7,794 | 6,487 |
Valuation allowance: | ||
Balance at beginning of year | 90 | 424 |
Provision (credit) | (82) | (334) |
Balance at end of year | 8 | 90 |
Mortgage servicing rights, amortized cost | 7,786 | 6,397 |
Mortgage servicing rights, fair value | $ 8,554 | $ 6,485 |
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, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Land and improvements | $ 1,025 | $ 2,525 |
Buildings and improvements | 3,280 | 4,457 |
Leasehold improvements | 2,136 | 1,503 |
Furniture and equipment | 5,032 | 4,765 |
Construction-in-progress | 84 | 101 |
Property plant and equipment, gross | 11,557 | 13,351 |
Less accumulated depreciation and amortization | (5,189) | (4,681) |
Property plant and equipment, net | $ 6,368 | $ 8,670 |
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 | 10 years | |
Furniture and Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Furniture and 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) | Jul. 31, 2018 | Oct. 31, 2018ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)Office | Dec. 31, 2017USD ($) |
Property Plant And Equipment [Line Items] | ||||||
Depreciation and amortization expense | $ 835,000 | $ 605,000 | ||||
Leasehold improvements funded by landlord | $ 646,000 | |||||
Leasehold improvements allowance amortized period | 5 years | |||||
Tenant improvement allowance amortized period | 5 years | |||||
Percentage of land occupied under sublease agreement | 27.00% | |||||
Termination of lease | 2023 | |||||
Impairment write-down of assets held for sale | $ 225,000 | $ 166,000 | $ 225,000 | |||
Number of branches sold | Office | 3 | |||||
Number of branch office replaced | Office | 2 | |||||
Gain (loss) on sale of building | $ 2,476,000 | |||||
Branch Office [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment write-down of assets held for sale | 225,000 | |||||
Assets held for sale | $ 828,000 | $ 828,000 | ||||
Gain (loss) on sale of building | 2,476,000 | |||||
Branch Office, Two [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Gain (loss) on sale of building | (15,000) | |||||
Branch Office, Other [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Gain (loss) on sale of building | 230,000 | |||||
Boston [Member] | Branch Office [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Gain (loss) on sale of building | 2,261,000 | |||||
Consideration received | $ 5,000,000 | 5,000,000 | ||||
Boston [Member] | Branch Office [Member] | Insurance Recovery [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Insurance recovery for personal property | 90,000 | |||||
Consolidation of Mortgage Banking Operations [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment write-down of assets held for sale | 168,000 | |||||
Consolidation of Mortgage Banking Operations [Member] | Restructuring Charges [Member] | Furniture and Equipment [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment write-down of assets held for sale | 168,000 | |||||
Consolidation of Mortgage Banking Operations [Member] | Andover [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Remaining space available to sublease | ft² | 8,600 | |||||
Fair value, Cease use liability | $ 565,000 | $ 565,000 |
Deposits - Summary of Deposit B
Deposits - Summary of Deposit Balances by Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Demand deposits | $ 64,229 | $ 62,130 |
NOW accounts | 42,802 | 44,988 |
Money market deposits | 60,843 | 56,668 |
Regular and other savings | 101,137 | 102,528 |
Brokered deposits | 10,088 | 7,106 |
Total non-certificate accounts | 279,099 | 273,420 |
Term certificates less than $250,000 | 99,491 | 80,538 |
Term certificates of $250,000 or more | 8,048 | 12,878 |
Term certificates - brokered | 50,492 | |
Total certificate accounts | 158,031 | 93,416 |
Total deposits | $ 437,130 | $ 366,836 |
Deposits - Summary of Term Cert
Deposits - Summary of Term Certificates, Including Brokered Deposits, by Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amount | ||
2018 | $ 49,550 | |
2019 | $ 89,167 | 22,470 |
2020 | 40,847 | 8,754 |
2021 | 12,785 | 4,873 |
2022 | 14,101 | 7,769 |
2023 | 1,131 | |
Total certificate accounts | $ 158,031 | $ 93,416 |
Weighted Average Rate | ||
2018 | 0.84% | |
2019 | 1.68% | 1.20% |
2020 | 2.16% | 1.44% |
2021 | 2.16% | 1.57% |
2022 | 1.98% | 1.65% |
2023 | 1.38% | |
Total | 1.87% | 1.09% |
Borrowings - Summary of Borrowi
Borrowings - Summary of Borrowings from FHLBB (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed-rate advances maturing: | ||
2018 | $ 69,337 | |
2019 | $ 84,184 | 1,500 |
2020 | 2,894 | 3,129 |
2021 | 1,958 | 1,988 |
Advances from FHLBB, Amount | $ 89,036 | $ 75,954 |
Weighted Average Rate | ||
2018 | 1.55% | |
2019 | 2.57% | 1.00% |
2020 | 1.49% | 1.52% |
2021 | 1.33% | 1.34% |
Advances from FHLBB, Weighted Average Rate | 2.50% | 1.54% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Overnight advances of FHLBB borrowings | $ 82,700,000 | $ 64,700,000 |
Federal Home Loan Bank advances | 89,036,000 | 75,954,000 |
Correspondent Bank [Member] | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 7,500,000 | |
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 | $ 90,346,000 | |
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% | |
Federal Reserve Bank of Boston [Member] | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | $ 10,000,000 | |
Federal Home Loan Bank advances | $ 0 | $ 0 |
Borrowings - Summary of Outstan
Borrowings - Summary of Outstanding Balances of Short Term Borrowings from FHLBB (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank Advances Activity For Year [Abstract] | ||
Average daily balance | $ 63,552,000 | $ 34,656,000 |
Maximum outstanding at any month end | $ 108,819,000 | $ 64,739,000 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense (benefit): | ||||||||||
Federal | $ (462) | |||||||||
State | $ 31 | 19 | ||||||||
Total current tax expense (benefit) | 31 | (443) | ||||||||
Deferred tax expense (benefit): | ||||||||||
Federal | (541) | (518) | ||||||||
Effect of change in federal tax rate | 1,627 | |||||||||
State | 73 | (23) | ||||||||
Total deferred federal and state tax expense (benefit) | (468) | 1,086 | ||||||||
Change in valuation allowance | 468 | 541 | ||||||||
Effect of change in federal tax rate - valuation allowance | (1,627) | |||||||||
Total tax expense (benefit) | $ 17 | $ 5 | $ 4 | $ 4 | $ (295) | $ 129 | $ (254) | $ (23) | $ 31 | $ (443) |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ||||||||||
Statutory federal tax (21% in 2018 and 34% in 2017) | $ (432) | $ (874) | ||||||||
Increase (decrease) resulting from: | ||||||||||
State taxes, net of federal tax effect | 83 | (3) | ||||||||
Bank-owned life insurance | (46) | (52) | ||||||||
Tax exempt income | (25) | (118) | ||||||||
Dividends received deduction | (5) | |||||||||
Change in valuation allowance | 468 | 541 | ||||||||
Change in AOCI deferred effect | (36) | |||||||||
Effect of change in federal tax rate | 1,627 | |||||||||
Effect of change in federal tax rate-valuation allowance | (1,627) | |||||||||
Other, net | (17) | 104 | ||||||||
Total tax expense (benefit) | $ 17 | $ 5 | $ 4 | $ 4 | $ (295) | $ 129 | $ (254) | $ (23) | $ 31 | $ (443) |
Income Taxes - Summary of Dif_2
Income Taxes - Summary of Differences Between Statutory Federal Income Tax Expense (Benefit) and Actual Tax Expense (Benefit) (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal tax rate | 21.00% | 34.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | ||
Alternative minimum tax refundable period | 4 years | |
Corporate income tax rate | 21.00% | 34.00% |
Change in valuation allowance | $ 1,627,000 | |
Charitable contribution carryforward | $ 2,481,000 | |
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 | 13,638,000 | |
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 | $ 2,871,000 | |
Operating loss carryforward expiration date | Dec. 31, 2037 | |
Operating Loss Carryforward No Expiration [Member] | Federal [Member] | ||
Income Tax [Line Items] | ||
Net operating loss carryforward | $ 3,573,000 | |
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 | |
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, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Deferred tax assets, gross | $ 6,268 | $ 5,255 |
Valuation allowance | (3,246) | (2,778) |
Deferred tax assets, net | 3,022 | 2,477 |
Deferred tax liabilities: | ||
Deferred tax liabilities, gross | (3,022) | (2,477) |
Federal [Member] | ||
Deferred tax assets: | ||
Deferred tax assets, gross | 5,134 | 4,247 |
Deferred tax liabilities: | ||
Deferred tax liabilities, gross | (2,189) | (1,806) |
State [Member] | ||
Deferred tax assets: | ||
Deferred tax assets, gross | 1,134 | 1,008 |
Deferred tax liabilities: | ||
Deferred tax liabilities, gross | $ (833) | $ (671) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Asset (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Employee benefit plans | $ 825 | $ 951 |
Allowance for loan losses | 1,247 | 1,050 |
Funded status of post-retirement benefits | (47) | (47) |
Securities available for sale | (313) | (313) |
Depreciation and amortization | 249 | 193 |
Net deferred loan origination costs | (357) | (321) |
Mortgage servicing rights | (2,082) | (1,624) |
Net operating loss carryforward | 2,864 | 2,171 |
Charitable contribution carryforward | 700 | 702 |
Derivatives | (105) | (98) |
Stock-based compensation | 121 | 48 |
Other, net | 144 | 66 |
Deferred tax assets (liabilities) before valuation allowances | 3,246 | 2,778 |
Valuation allowance on deferred tax assets | $ (3,246) | $ (2,778) |
On-Balance Sheet Derivative I_2
On-Balance Sheet Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Loan Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional amount | $ 36,852,000 | $ 24,222,000 |
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 | 264,000 | (254,000) |
Undesignated Forward Loan Sale Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional amount | 42,021,000 | 29,613,000 |
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 | 238,000 | 66,000 |
Other Assets [Member] | Derivative Loan Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative fair value, Asset | 627,000 | 363,000 |
Other Assets [Member] | Undesignated Forward Loan Sale Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative fair value, Asset | 10,000 | 4,000 |
Other Liabilities [Member] | Undesignated Forward Loan Sale Commitments [Member] | ||
Derivative [Line Items] | ||
Derivative fair value, Liability | $ 263,000 | $ 19,000 |
Minimum Regulatory Capital Re_3
Minimum Regulatory Capital Requirements - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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) | 1.875% | 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 Re_4
Minimum Regulatory Capital Requirements - Summary of Actual and Minimum Capital Amounts and Ratios (Detail) - Bank [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk weighted assets), actual amount | $ 72,523 | $ 73,612 |
Tier 1 capital (to risk weighted assets), actual amount | 68,086 | 69,875 |
Common equity Tier 1 capital (to risk weighted assets), actual amount | 68,086 | 69,875 |
Tier 1 capital (to average assets), actual amount | $ 68,086 | $ 69,875 |
Total capital (to risk weighted assets), actual ratio | 16.10% | 20.40% |
Tier 1 capital (to risk weighted assets), actual ratio | 15.10% | 19.40% |
Common equity Tier 1 capital (to risk weighted assets), actual ratio | 15.10% | 19.40% |
Tier 1 capital (to average assets), actual ratio | 10.90% | 12.40% |
Total capital (to risk weighted assets), for minimum capital adequacy purposes amount | $ 36,084 | $ 28,896 |
Tier 1 capital (to risk weighted assets), for minimum capital adequacy purposes amount | 27,063 | 21,667 |
Common equity Tier 1 capital (to risk weighted assets), for minimum capital adequacy amount | 20,297 | 16,250 |
Common equity Tier 1 capital (to risk weighted assets), for minimum capital adequacy amount | $ 25,056 | $ 22,564 |
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 | $ 45,105 | $ 36,120 |
Tier 1 capital (to risk weighted assets), minimum to be well capitalized under prompt corrective action provisions amount | 36,084 | 28,889 |
Common equity Tier 1 capital (to risk weighted assets), minimum to be well capitalized under prompt corrective action provisions amount | 29,318 | 23,472 |
Tier 1 capital (to average assets), minimum to be well capitalized under prompt corrective action provisions amount | $ 31,320 | $ 28,205 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Other non-interest expense | $ 9,337,000 | $ 7,427,000 | $ 7,912,000 | $ 6,998,000 | $ 8,056,000 | $ 7,202,000 | $ 7,071,000 | $ 6,962,000 | $ 4,854,000 | $ 4,075,000 |
Supplemental Retirement Plan [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Accrued benefits | 549,000 | 607,000 | 549,000 | 607,000 | ||||||
Other non-interest expense | 58,000 | 64,000 | ||||||||
Endorsement Split-Dollar Life Insurance Arrangements [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Accrued benefits | $ 435,000 | $ 419,000 | 435,000 | 419,000 | ||||||
Post-retirement benefit expense | $ 16,000 | 22,000 | ||||||||
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 | $ 580,000 | $ 583,000 | ||||||||
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, 2018 | Dec. 31, 2017 | |
Change in plan assets: | ||
Employer contributions | $ 201 | $ 201 |
Benefits paid | (201) | (201) |
Change in benefit obligation: | ||
Benefit obligation at beginning of year | 1,724 | 1,836 |
Service cost | 10 | 10 |
Interest cost | 48 | 53 |
Actuarial (gain) loss | (20) | 26 |
Benefits paid | (201) | (201) |
Benefit obligation at end of year | 1,561 | 1,724 |
Unfunded status and accrued supplemental pension cost at year end | (1,561) | (1,724) |
Accumulated benefit obligation at year end | $ 1,561 | $ 1,724 |
Post-Retirement Plans - Summa_2
Post-Retirement Plans - Summary of Assumptions Used to Determine Benefit Obligation (Details) - Supplemental Retirement Plan [Member] | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.60% | 2.90% |
Annual inflation factor | 1.00% | 1.00% |
Post-Retirement Plans - Summa_3
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, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 10 | $ 10 |
Interest cost | 48 | 53 |
Amortization of net actuarial loss | 41 | 38 |
Amortization of prior service credit | (89) | (89) |
Net periodic benefit cost | $ 10 | $ 12 |
Post-Retirement Plans - Summa_4
Post-Retirement Plans - Summary of Assumptions Used to Determine Net Periodic Benefit Cost (Details) - Supplemental Retirement Plan [Member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.90% | 3.05% |
Annual inflation factor | 1.00% | 1.00% |
Post-Retirement Plans - Summa_5
Post-Retirement Plans - Summary of Estimated Future Benefit Payments Expected Future Services (Details) - Supplemental Retirement Plan [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | $ 201 |
2020 | 201 |
2021 | 201 |
2022 | 213 |
2023 | 334 |
2024-2028 | $ 626 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options term | 10 years | 10 years |
Stock-based compensation expense | $ 304,000 | $ 65,000 |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 493,000 | $ 120,000 |
Minimum [Member] | Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options and awards vesting period | 3 years | 3 years |
Maximum [Member] | Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options and awards vesting period | 5 years | 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 | |
Two Thousand Seventeen Stock Option and Incentive Plan [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options and awards vesting period | 3 years | |
Two Thousand Seventeen Stock Option and Incentive Plan [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options and awards vesting period | 5 years |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Grants of Options to Purchase Shares of Common Stock (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options granted | 27,000 | 340,387 |
Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expiration period (years) | 10 years | 10 years |
Expected volatility | 29.87% | |
Expected volatility, minimum | 23.59% | |
Expected volatility, maximum | 29.87% | |
Expected life (years) | 6 years 6 months | |
Risk free interest rate, minimum | 2.68% | 1.66% |
Risk free interest rate, maximum | 2.77% | 2.06% |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Option fair value | $ 5.78 | $ 2.71 |
Minimum [Member] | Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period (years) | 3 years | 3 years |
Expected life (years) | 3 years | |
Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Option fair value | $ 5.83 | $ 5.05 |
Maximum [Member] | Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period (years) | 5 years | 5 years |
Expected life (years) | 6 years 6 months |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Grants (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Option Grants | ||
Beginning Balance | 316,009 | |
Granted | 27,000 | 340,387 |
Forfeited | (30,304) | |
Ending Balance | 312,705 | 316,009 |
Exercisable at December 31, 2018 | 59,936 | |
Unrecognized compensation cost (inclusive of directors' options) | $ 1,075,000 | |
Weighted Average Exercise Price | ||
Beginning Balance | $ 14.66 | |
Granted | 16.15 | |
Forfeited | 14.71 | |
Ending Balance | 14.78 | $ 14.66 |
Exercisable at December 31, 2018 | $ 14.66 | |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ||
Weighted Average Remaining Contractual Term | 8 years 8 months 23 days | 9 years 9 months 10 days |
Weighted Average Remaining Contractual Term, Granted | 5 years 9 months 14 days | |
Weighted Average Remaining Contractual Term, Forfieted | 6 years 5 months | |
Aggregate Intrinsic Value, Outstanding | $ 219,374 | |
Aggregate Intrinsic Value, Outstanding | $ 219,374 | |
Aggregate Intrinsic Value, Exercisable | $ 0 | |
Stock Options [Member] | ||
Stock Option Grants | ||
Weighted average remaining recognition period (years) | 3 years 7 months 13 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity in Restricted Stock Awards Under Equity Plan (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Restricted Stock Awards | |
Beginning Balance | shares | 176,239 |
Vested | shares | (33,835) |
Forfeited | shares | (15,710) |
Ending Balance | shares | 126,694 |
Unrecognized compensation cost | $ | $ 1,739,000 |
Weighted Average Grant Price | |
Beginning Balance | $ / shares | $ 14.66 |
Vested | $ / shares | 14.66 |
Forfeited | $ / shares | 14.66 |
Ending Balance | $ / shares | $ 14.66 |
Restricted Stock [Member] | |
Restricted Stock Awards | |
Weighted average remaining recognition period (years) | 3 years 8 months 4 days |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | ||
Loan repaid term | 25 years | |
Interest rate | 4.50% | 3.75% |
Number of allocated shares | 18,780 | |
Annual allocation of shares, expiration year | 2040 | |
ESOP expense | $ 301,000 | $ 286,000 |
Unallocated shares | 413,158 | |
Unallocated shares, value | $ 5,846,000 | |
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, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | |||
Cost of shares repurchased | $ 1,716,000 | $ 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 | 117,877 | ||
Cost of shares repurchased | $ 1,832,000 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Potentially dilutive common stock equivalents outstanding | 0 | 0 |
Stock options outstanding | 312,705 | 316,009 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Calculation of Average Number of Shares Outstanding Used to Calculate Basic and Diluted Earnings (Loss) Per Share (Detail) - shares | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||||||||||
Average number of common shares outstanding | 5,994,373 | 5,902,981 | ||||||||
Less: Average unallocated ESOP shares | (423,653) | (434,467) | ||||||||
Average number of common shares outstanding (basic and diluted) | 5,526,416 | 5,567,596 | 5,580,683 | 5,603,886 | 5,597,762 | 5,429,564 | 5,425,033 | 5,420,356 | 5,570,720 | 5,468,514 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Rent Commitments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 | $ 1,027 |
2020 | 919 |
2021 | 743 |
2022 | 545 |
2023 | 114 |
Future minimum rent commitments,Leases | 3,348 |
2019 | (87) |
2020 | (89) |
2021 | (91) |
2022 | (94) |
2023 | (16) |
Future minimum rent commitments,Sub-leases | (377) |
2019 | 940 |
2020 | 830 |
2021 | 652 |
2022 | 451 |
2023 | 98 |
Future minimum rent commitments,Net | $ 2,971 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)Member | Dec. 31, 2017USD ($) | |
Commitments And Contingencies [Line Items] | ||
Rent expense | $ | $ 992,000 | $ 883,000 |
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 | 5 | |
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 | 2 years | |
Maximum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Lease options to extend the period | 10 years |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Financial Instruments Outstanding Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments to Originate Loans [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | $ 38,404 | $ 35,549 |
Unused Lines and Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | 45,977 | 39,968 |
Unadvanced Funds on Construction Loans [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | 14,175 | 6,967 |
Overdraft Lines of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | $ 8,475 | $ 8,996 |
Fair Value of Assets and Liab_3
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, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 50,556 | $ 61,576 |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 50,038 | 61,043 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 518 | 533 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 50,556 | 68,637 |
Fair value, Loans held for sale | 38,474 | 30,452 |
Derivative assets | 637 | 682 |
Derivative liabilities | 263 | 47 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, Portfolio loans | 3,680 | |
Fair value, Loans held for sale | 38,474 | 25,390 |
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 | 50,038 | 61,043 |
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 | 518 | 533 |
Fair Value, Measurements, Recurring [Member] | Derivative Loan Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 627 | 363 |
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 | 10 | 4 |
Derivative liabilities | 263 | 19 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, Portfolio loans | 3,680 | |
Fair value, Loans held for sale | 38,474 | 25,390 |
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 | 50,038 | 61,043 |
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 | 518 | 533 |
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 | 627 | 363 |
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 | 10 | 4 |
Derivative liabilities | $ 263 | $ 19 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Additional information (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)Office | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
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 | |
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 | 0 | |
Fair value, liabilities, level 1 to level 2 transfers, amount | 0 | 0 | 0 | |
Fair value, liabilities, level 2 to level 1 transfers, amount | 0 | 0 | 0 | |
Increase in valuation allowance of mortgage servicing rights | 200,000 | 334,000 | $ 82,000 | |
Impairment write-down of assets held for sale | $ 225,000 | $ 166,000 | 225,000 | |
Number of branches sold | Office | 3 | |||
Gain on sale of building | $ 2,476,000 | |||
Branch Office [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment write-down of assets held for sale | $ 225,000 | |||
Gain on sale of building | $ 2,476,000 | |||
Measurement Input, Discount Rate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rate | 0.13 | 0.12 | 0.13 | 0.14 |
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities measured at fair value on nonrecurring basis | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Schedule of Assets Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights, fair value | $ 8,554 | $ 6,485 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gains (losses) on assets held, mortgage servicing rights | 82 | 334 |
Gains (losses) on assets held for sale | 2,476 | (225) |
Gains (losses) on assets held, foreclosed real estate | (36) | |
Gains (Losses) on assets held | 2,522 | 109 |
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 | 7,786 | 6,397 |
Assets, Fair Value Disclosure | 7,786 | 6,397 |
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 | 1,352 | 1,630 |
Fair value, Assets held for sale | 828 | |
Fair value, Foreclosed real estate | 65 | 193 |
Assets, Fair Value Disclosure | $ 1,417 | $ 2,651 |
Fair Value of Assets and Liab_6
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, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Securities available for sale | $ 50,556 | $ 61,576 |
Level 2 [Member] | ||
Financial assets: | ||
Certificates of deposit | 2,196 | 3,687 |
Securities available for sale | 50,556 | 68,637 |
Loans held for sale | 38,474 | 30,452 |
Derivative assets | 637 | 682 |
Financial liabilities: | ||
Deposits | 435,964 | 350,979 |
FHLBB advances | 88,894 | 38,531 |
Derivative liabilities | 263 | 47 |
Level 3 [Member] | ||
Financial assets: | ||
Loans, net | 473,612 | 331,132 |
Carrying Amount [Member] | ||
Financial assets: | ||
Certificates of deposit | 2,205 | 3,675 |
Securities available for sale | 50,556 | 68,637 |
Loans held for sale | 38,474 | 30,452 |
Loans, net | 483,846 | 332,991 |
Derivative assets | 637 | 682 |
Financial liabilities: | ||
Deposits | 437,130 | 351,179 |
FHLBB advances | 89,036 | 38,667 |
Derivative liabilities | 263 | 47 |
Fair Value [Member] | ||
Financial assets: | ||
Certificates of deposit | 2,196 | 3,687 |
Securities available for sale | 50,556 | 68,637 |
Loans held for sale | 38,474 | 30,452 |
Loans, net | 473,612 | 331,132 |
Derivative assets | 637 | 682 |
Financial liabilities: | ||
Deposits | 435,964 | 350,979 |
FHLBB advances | 88,894 | 38,531 |
Derivative liabilities | $ 263 | $ 47 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)SegmentOffice | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of business segments | Segment | 2 | |
Number of branch offices | Office | 5 | |
Servicing fees amount | $ (1,264,000) | $ (1,473,000) |
Envision Mortgage [Member] | ||
Segment Reporting Information [Line Items] | ||
Premium percentage for new loans | 1.50% | 1.50% |
Premium income | $ 1,320,000 | $ 897,000 |
Percentage of fees for HELOC | 1.00% | 1.00% |
Servicing fees amount | $ (1,574,000) | $ (1,731,000) |
Envision Bank [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of loan servicing fees | 0.14% | 0.14% |
Servicing fees amount | $ 310,000 | $ 258,000 |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | $ 4,420,000 | $ 4,260,000 | $ 4,033,000 | $ 3,982,000 | $ 3,840,000 | $ 3,816,000 | $ 3,690,000 | $ 3,484,000 | $ 16,696,000 | $ 14,830,000 | |
Provision for loan losses | 579,000 | 178,000 | (90,000) | 95,000 | 205,000 | 100,000 | 235,000 | 762,000 | 540,000 | ||
Net interest income after provision for loan losses | 15,934,000 | 14,290,000 | |||||||||
Non-interest income: | |||||||||||
Customer service fees | 1,464,000 | 1,455,000 | |||||||||
Gain on loan origination and sale activities, net | [1] | 8,859,000 | 10,047,000 | ||||||||
Mortgage servicing fees, net | 1,264,000 | 1,473,000 | |||||||||
Gain on sales of buildings | 2,476,000 | ||||||||||
Other | 940,000 | 884,000 | |||||||||
Total non-interest income | 15,003,000 | 13,859,000 | |||||||||
Non-interest expenses: | |||||||||||
Salaries and employee benefits | 19,765,000 | 18,731,000 | |||||||||
Occupancy and equipment | 2,873,000 | 2,655,000 | |||||||||
Restructuring charges | 875,000 | 594,000 | 968,000 | 594,000 | |||||||
Merger and integration costs | 7,000 | 357,000 | 167,000 | 531,000 | |||||||
Other non-interest expenses | 8,066,000 | 7,311,000 | |||||||||
Total non-interest expenses | 9,337,000 | 7,427,000 | 7,912,000 | 6,998,000 | 8,056,000 | 7,209,000 | 7,428,000 | 7,129,000 | 31,672,000 | 29,822,000 | |
Income (loss) before income taxes and elimination of inter-segment profit | (735,000) | (1,673,000) | |||||||||
Elimination of inter-segment profit | (1,320,000) | (896,000) | |||||||||
Loss before income taxes | (2,055,000) | (2,569,000) | |||||||||
Income tax expense (benefit) | 17,000 | 5,000 | 4,000 | 4,000 | (295,000) | 129,000 | (254,000) | (23,000) | 31,000 | (443,000) | |
Net income (loss) | (228,000) | $ (142,000) | $ (1,010,000) | $ (707,000) | (1,578,000) | $ 49,000 | $ (150,000) | $ (447,000) | (2,086,000) | (2,126,000) | |
Total assets, December 31, 2018 | 614,340,000 | 531,892,000 | 614,340,000 | 531,892,000 | |||||||
Envision Bank [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 15,664,000 | 13,827,000 | |||||||||
Provision for loan losses | 762,000 | 540,000 | |||||||||
Net interest income after provision for loan losses | 14,902,000 | 13,287,000 | |||||||||
Non-interest income: | |||||||||||
Customer service fees | 1,344,000 | 1,355,000 | |||||||||
Mortgage servicing fees, net | (310,000) | (258,000) | |||||||||
Gain on sales of buildings | 2,476,000 | ||||||||||
Other | 520,000 | 408,000 | |||||||||
Total non-interest income | 4,030,000 | 1,505,000 | |||||||||
Non-interest expenses: | |||||||||||
Salaries and employee benefits | 6,793,000 | 6,243,000 | |||||||||
Occupancy and equipment | 1,507,000 | 1,392,000 | |||||||||
Merger and integration costs | 19,000 | ||||||||||
Other non-interest expenses | 4,476,000 | 3,955,000 | |||||||||
Total non-interest expenses | 12,776,000 | 11,609,000 | |||||||||
Income (loss) before income taxes and elimination of inter-segment profit | 6,156,000 | 3,183,000 | |||||||||
Total assets, December 31, 2018 | 526,871,000 | 468,515,000 | 526,871,000 | 468,515,000 | |||||||
Envision Mortgage [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 1,032,000 | 1,003,000 | |||||||||
Net interest income after provision for loan losses | 1,032,000 | 1,003,000 | |||||||||
Non-interest income: | |||||||||||
Customer service fees | 120,000 | 100,000 | |||||||||
Gain on loan origination and sale activities, net | [1] | 8,859,000 | 10,047,000 | ||||||||
Mortgage servicing fees, net | 1,574,000 | 1,731,000 | |||||||||
Other | 420,000 | 476,000 | |||||||||
Total non-interest income | 10,973,000 | 12,354,000 | |||||||||
Non-interest expenses: | |||||||||||
Salaries and employee benefits | 12,972,000 | 12,488,000 | |||||||||
Occupancy and equipment | 1,366,000 | 1,263,000 | |||||||||
Restructuring charges | 968,000 | 594,000 | |||||||||
Merger and integration costs | 512,000 | ||||||||||
Other non-interest expenses | 3,590,000 | 3,356,000 | |||||||||
Total non-interest expenses | 18,896,000 | 18,213,000 | |||||||||
Income (loss) before income taxes and elimination of inter-segment profit | (6,891,000) | (4,856,000) | |||||||||
Total assets, December 31, 2018 | $ 87,469,000 | $ 63,377,000 | $ 87,469,000 | $ 63,377,000 | |||||||
[1] | Before elimination of inter-segment profit |
Other Non-Interest Expenses - A
Other Non-Interest Expenses - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Percentage of certain items exceeding interest and non interest income | 1.00% | 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, 2018 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Software amortization and maintenance | $ 754 | $ 789 |
Card related expenses | 470 | 359 |
Data communication and telephone | 495 | 463 |
Directors fees, including stock-based compensation | $ 613 | $ 407 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($)ft²PositionEmployee | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Percentage of workforce reduction | 8.00% | |||
Restructuring charges | $ 875,000 | $ 594,000 | $ 968,000 | $ 594,000 |
Impairment write-down on furniture and equipment | $ 225,000 | 166,000 | $ 225,000 | |
Consolidation of Mortgage Banking Operations [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Impairment write-down on furniture and equipment | $ 168,000 | |||
Consolidation of Mortgage Banking Operations [Member] | Andover [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of administrative positions eliminated | Position | 15 | |||
Number of employees remained | Employee | 25 | |||
Severance costs | 235,000 | |||
Remaining space available | ft² | 4,200 | |||
Fair value, Cease use liability | $ 565,000 | $ 565,000 | ||
Consolidation of Mortgage Banking Operations [Member] | North Attleboro [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of administrative positions to be added | Position | 8 |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Statements - Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||
Cash and due from banks | $ 3,451 | $ 3,562 | |
Total assets | 614,340 | 531,892 | |
Liabilities | |||
Total liabilities | 536,379 | 450,409 | |
Stockholders' Equity: | |||
Common stock | 60 | 61 | |
Additional paid-in capital | 55,608 | 56,493 | |
Retained earnings | 28,329 | 30,415 | |
ESOP-Unearned compensation | (4,132) | (4,319) | |
Accumulated other comprehensive loss, net of tax | (1,904) | (1,167) | |
Total stockholders' equity | 77,961 | 81,483 | $ 83,302 |
Total liabilities and stockholders' equity | 614,340 | 531,892 | |
Randolph Bancorp, Inc. and Predecessor Randolph Bancorp [Member] | |||
Assets | |||
Cash and due from banks | 6,850 | 8,187 | |
Due from Envision Bank | 141 | ||
Investment in Envision Bank | 66,971 | 68,777 | |
ESOP loan | 4,266 | 4,378 | |
Total assets | 78,087 | 81,483 | |
Liabilities | |||
Accounts payable | 70 | ||
Due to Envision Bank | 56 | ||
Total liabilities | 126 | ||
Stockholders' Equity: | |||
Common stock | 60 | 61 | |
Additional paid-in capital | 55,608 | 56,493 | |
Retained earnings | 28,329 | 30,415 | |
ESOP-Unearned compensation | (4,132) | (4,319) | |
Accumulated other comprehensive loss, net of tax | (1,904) | (1,167) | |
Total stockholders' equity | 77,961 | 81,483 | |
Total liabilities and stockholders' equity | $ 78,087 | $ 81,483 |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Statements - Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements Captions [Line Items] | ||||||||||
Interest income | $ 6,050 | $ 5,468 | $ 5,039 | $ 4,727 | $ 4,492 | $ 4,389 | $ 4,175 | $ 3,884 | $ 21,284 | $ 16,940 |
Income tax expense (benefit) | 17 | 5 | 4 | 4 | (295) | 129 | (254) | (23) | 31 | (443) |
Net income (loss) | $ (228) | $ (142) | $ (1,010) | $ (707) | $ (1,578) | $ 49 | $ (150) | $ (447) | (2,086) | (2,126) |
Randolph Bancorp, Inc. and Predecessor Randolph Bancorp [Member] | ||||||||||
Condensed Income Statements Captions [Line Items] | ||||||||||
Interest income | 197 | 169 | ||||||||
Operating expenses | 197 | 308 | ||||||||
Loss before incomes taxes and equity in undistributed net loss of Envision Bank | (139) | |||||||||
Loss before equity in undistributed net loss of Envision Bank | (139) | |||||||||
Equity in undistributed net loss of Envision Bank | (2,086) | (1,987) | ||||||||
Net income (loss) | $ (2,086) | $ (2,126) |
Parent Company Condensed Fina_5
Parent Company Condensed Financial Statements - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (2,086) | $ (2,126) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Net cash provided by (used in) operating activities | (11,291) | 5,910 |
Cash flows from investing activities: | ||
Net cash used in investing activities | (73,365) | (64,056) |
Cash flows from financing activities: | ||
Stock repurchases | (1,716) | (160) |
Stock repurchase payable | 70 | |
Net cash provided by financing activities | 82,952 | 52,119 |
Net change in cash and cash equivalents | (1,704) | (6,027) |
Cash and cash equivalents at beginning of year | 8,822 | 14,849 |
Cash and cash equivalents at end of year | 7,118 | 8,822 |
Randolph Bancorp, Inc. and Predecessor Randolph Bancorp [Member] | ||
Cash flows from operating activities: | ||
Net loss | (2,086) | (2,126) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Equity in undistributed net loss of Envision Bank | 2,086 | 1,987 |
Change in intercompany receivable/payable | 197 | (139) |
Net cash provided by (used in) operating activities | 197 | (278) |
Cash flows from investing activities: | ||
Payments received on ESOP loan | 112 | 129 |
Net cash used in investing activities | 112 | 129 |
Cash flows from financing activities: | ||
Stock repurchases | (1,716) | (160) |
Stock repurchase payable | 70 | |
Net cash provided by financing activities | (1,646) | (160) |
Net change in cash and cash equivalents | (1,337) | (309) |
Cash and cash equivalents at beginning of year | 8,187 | 8,496 |
Cash and cash equivalents at end of year | $ 6,850 | $ 8,187 |
Selected Quarterly Financial _3
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Interest and dividend income | $ 6,050 | $ 5,468 | $ 5,039 | $ 4,727 | $ 4,492 | $ 4,389 | $ 4,175 | $ 3,884 | $ 21,284 | $ 16,940 |
Interest expense | 1,630 | 1,208 | 1,006 | 745 | 652 | 573 | 485 | 400 | 4,588 | 2,110 |
Net interest income | 4,420 | 4,260 | 4,033 | 3,982 | 3,840 | 3,816 | 3,690 | 3,484 | 16,696 | 14,830 |
Provision (credit) for loan losses | 579 | 178 | (90) | 95 | 205 | 100 | 235 | 762 | 540 | |
Gain on loan origination and sales activities, net | 2,183 | 1,956 | 1,854 | 1,547 | 1,888 | 2,705 | 2,520 | 2,038 | ||
Other non-interest income | 3,102 | 1,252 | 929 | 861 | 660 | 866 | 914 | 1,372 | 733 | 731 |
Total non-interest income | 5,285 | 3,208 | 2,783 | 2,408 | 2,548 | 3,571 | 3,434 | 3,410 | 13,683 | 12,963 |
Merger and integration costs | 7 | 357 | 167 | 531 | ||||||
Other non-interest expense | 9,337 | 7,427 | 7,912 | 6,998 | 8,056 | 7,202 | 7,071 | 6,962 | 4,854 | 4,075 |
Total non-interest expenses | 9,337 | 7,427 | 7,912 | 6,998 | 8,056 | 7,209 | 7,428 | 7,129 | 31,672 | 29,822 |
Provision (benefit) for income taxes | 17 | 5 | 4 | 4 | (295) | 129 | (254) | (23) | 31 | (443) |
Net income (loss) | $ (228) | $ (142) | $ (1,010) | $ (707) | $ (1,578) | $ 49 | $ (150) | $ (447) | $ (2,086) | $ (2,126) |
Basic and diluted earnings (loss) per share | $ (0.04) | $ (0.03) | $ (0.18) | $ (0.13) | $ (0.28) | $ 0.01 | $ (0.03) | $ (0.08) | $ (0.37) | $ (0.39) |
Weighted average common shares (basic and diluted) | 5,526,416 | 5,567,596 | 5,580,683 | 5,603,886 | 5,597,762 | 5,429,564 | 5,425,033 | 5,420,356 | 5,570,720 | 5,468,514 |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effect Of Fourth Quarter Events [Line Items] | |||||
Restructuring charges | $ 875,000 | $ 594,000 | $ 968,000 | $ 594,000 | |
Impairment write-down of assets held for sale | 225,000 | 166,000 | $ 225,000 | ||
Reduction of valuation allowance for mortgage servicing rights | 200,000 | $ 334,000 | $ 82,000 | ||
Expenses for planned transfer of loan servicing | 160,000 | ||||
Tax benefit due to repeal of AMT | $ 462,000 | ||||
Boston Branch Location [Member] | |||||
Effect Of Fourth Quarter Events [Line Items] | |||||
Gain recognized on sale of former branch location | $ 2,261,000 |