FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Assets measured at fair value

	Fair Value Measurements Using						Assets at
(in thousands)	Level 1		Level 2		Level 3		fair
							value
September 30, 2018
Assets at fair value on a recurring basis
U.S. Government Agency notes	$	—	$	4,963	$	—	$	4,963
Municipal bonds		—		5,390		—		5,390
Mortgage-backed securities:
U.S. Government agencies and U.S. Government-sponsored enterprises		—		34,399		—		34,399
Collateralized mortgage obligations:
U.S. Government agencies		—		17,852		—		17,852
Non-agency		—		1,797		—		1,797
SBA bonds		—		27,850		—		27,850
Corporate bonds		—		3,529		—		3,529
Securities available-for-sale	$	—	$	95,780	$	—	$	95,780
CRA mutual funds		823		—		—		823
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	$	—	$	—	$	6,002	$	6,002
Other real estate owned	$	—	$	—	$	340	$	340
December 31, 2017
Assets at fair value on a recurring basis
Municipal bonds	$	—	$	3,486	$	—	$	3,486
Mortgage-backed securities:
U.S. Government agencies and U.S. Government-sponsored enterprises		—		45,868		—		45,868
Collateralized mortgage obligations:
U.S. Government agencies		—		10,377		—		10,377
Non-agency		—		2,664		—		2,664
SBA bonds		—		12,267		—		12,267
Corporate bonds		—		3,550		—		3,550
Securities available-for-sale	$	—	$	78,212	$	—	$	78,212
CRA mutual funds		835		—		—		835
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	$	—	$	—	$	5,863	$	5,863
Other real estate owned	$	—	$	—	$	719	$	719

Carrying value and estimated fair values of financial instruments

(in thousands)	Carrying		Estimated		Fair value measurements using
	value		fair value		Level 1		Level 2		Level 3
September 30, 2018
Financial Assets
Cash and cash equivalents	$	42,220	$	42,220	$	42,220	$	—	$	—
Securities available-for-sale		95,780		95,780		—		95,780		—
CRA mutual fund		823		823		823		—		—
Federal Home Loan Bank of Boston stock		4,988		4,988		—		—		4,988
Loans held-for-sale		589		599		—		—		599
Loans receivable, net1		898,625		873,397		—		—		873,397
Accrued interest receivable		3,317		3,317		—		—		3,317
Cash surrender value of life insurance policies		14,627		14,627		14,627		—		—
Financial Liabilities
Demand (non-interest-bearing)	$	233,935	$	233,935	$	—	$	—	$	233,935
Demand (interest-bearing)		151,830		151,830		—		—		151,830
Money market		202,308		202,308		—		—		202,308
Savings and other		176,415		176,415		—		—		176,415
Certificates of deposit		137,673		137,648		—		—		137,648
Deposits		902,161		902,136		—		—		902,136
Repurchase agreements		6,658		6,658		—		—		6,658
FHLBB advances		67,596		67,589		—		—		67,589
Subordinated debt		9,829		10,063		—		—		10,063
Note payable		289		297		—		—		297
Capital lease liability		3,114		3,391		—		—		3,391
Accrued interest payable		382		382		—		—		382
December 31, 2017
Financial Assets
Cash and cash equivalents	$	48,486	$	48,486	$	48,486	$	—	$	—
Securities available-for-sale		78,212		78,212		—		78,212		—
CRA mutual fund		835		835		835		—		—
Federal Home Loan Bank of Boston stock		3,813		3,813		—		—		3,813
Loans held-for-sale		669		669		—		—		669
Loans receivable, net1		801,703		816,451		—		—		816,451
Accrued interest receivable		2,665		2,665		—		—		2,665
Cash surrender value of life insurance policies		14,381		14,381		14,381		—		—
Financial Liabilities
Demand (non-interest-bearing)	$	220,536	$	220,536	$	—	$	—	$	220,536
Demand (interest-bearing)		142,575		142,575		—		—		142,575
Money market		190,953		190,953		—		—		190,953
Savings and other		144,600		144,600		—		—		144,600
Certificates of deposit		116,831		115,290		—		—		115,290
Deposits		815,495		813,954		—		—		813,954
Repurchase agreements		1,668		1,668		—		—		1,668
FHLBB advances		54,422		54,918		—		—		54,918
Subordinated debt		9,811		10,313		—		—		10,313
Note payable		313		341		—		—		341
Capital lease liability		1,835		2,161		—		—		2,161
Accrued interest payable		99		99		—		—		99

¹ In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans as of September 30, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion.