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Massachusetts
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45-3231576
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(State or other jurisdiction of
incorporation or organization) |
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I.R.S. Employer
Identification No.) |
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5 Market Street, Amesbury, Massachusetts
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01913
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
☐
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Accelerated filer
☒
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Non-accelerated filer
☐
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Smaller reporting company
☒
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Emerging growth company
☒
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Page
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| | | | 1 | | | |
| | | | 25 | | | |
| | | | 25 | | | |
| | | | 25 | | | |
| | | | 26 | | | |
| | | | 26 | | | |
Part II
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| | | | 27 | | | |
| | | | 29 | | | |
| | | | 31 | | | |
| | | | 53 | | | |
| | | | 53 | | | |
| | | | 53 | | | |
| | | | 53 | | | |
| | | | 54 | | | |
Part III
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| | | | 55 | | | |
| | | | 55 | | | |
| | | | 55 | | | |
| | | | 55 | | | |
| | | | 55 | | | |
Part IV
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| | | | 56 | | | |
| | | | 57 | | |
Type of Loan
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Number of
Loans |
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Balance
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| | | | | | | | |
(In thousands)
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Residential one-to-four family
|
| | | | 172 | | | | | $ | 37,369 | | |
Mixed use
|
| | | | 69 | | | | | | 42,350 | | |
Office
|
| | | | 82 | | | | | | 44,542 | | |
Retail
|
| | | | 60 | | | | | | 30,245 | | |
Industrial/manufacturing/warehouse
|
| | | | 106 | | | | | | 57,280 | | |
Gas stations
|
| | | | 29 | | | | | | 14,753 | | |
Restaurant/quick service
|
| | | | 36 | | | | | | 18,274 | | |
Hotel/motel/inn
|
| | | | 20 | | | | | | 28,093 | | |
Self-storage facility
|
| | | | 12 | | | | | | 18,540 | | |
Other commercial real estate
|
| | | | 74 | | | | | | 41,437 | | |
Total
|
| | | | 660 | | | | | $ | 332,883 | | |
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| | |
Number of Securities to Be
Issued Upon Exercise of Outstanding Options, Warrants and Rights |
| |
Weighted-average
Exercise Price of Outstanding Options, Warrants and Rights(1) |
| |
Number of Securities
Remaining Available for Future Issuance Under Share-based Compensation Plans (excluding securities reflected in first column) |
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Equity compensation plans approved by
security holders |
| | | | 396,438 | | | | | $ | 17.89 | | | | | | 47,566 | | |
Period
|
| |
Total
Number of Shares Purchased |
| |
Average Price
Paid per Share |
| |
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
| |
Maximum Number of
Shares that May Yet Be Purchased Under the Plans or Programs |
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October 1, 2018 – October 31, 2018
|
| | | | — | | | | | $ | — | | | | | | — | | | | | | 596,192 | | |
November 1, 2018 – November 30, 2018
|
| | | | 8,649 | | | | | $ | 24.82 | | | | | | 8,649 | | | | | | 587,543 | | |
December 1, 2018 – December 31, 2018
|
| | | | — | | | | | $ | — | | | | | | — | | | | | | 587,543 | | |
Total
|
| | | | 8,649 | | | | | $ | 24.82 | | | | | | 8,649 | | | | | | | | |
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At December 31,
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(In thousands)
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2018
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2017
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2016
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2015
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2014
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Financial Condition Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 974,079 | | | | | $ | 902,265 | | | | | $ | 795,543 | | | | | $ | 743,397 | | | | | $ | 658,606 | | |
Cash and cash equivalents
|
| | | | 28,613 | | | | | | 47,689 | | | | | | 10,705 | | | | | | 20,464 | | | | | | 9,558 | | |
Securities available-for-sale
|
| | | | 51,403 | | | | | | 61,429 | | | | | | 117,867 | | | | | | 80,984 | | | | | | 76,032 | | |
Securities held-to-maturity
|
| | | | — | | | | | | — | | | | | | — | | | | | | 44,623 | | | | | | 45,559 | | |
Federal Home Loan Bank stock, at cost
|
| | | | 2,650 | | | | | | 1,854 | | | | | | 2,787 | | | | | | 3,310 | | | | | | 3,642 | | |
Loans receivable, net(1)
|
| | | | 835,528 | | | | | | 742,138 | | | | | | 624,425 | | | | | | 554,929 | | | | | | 494,183 | | |
Bank-owned life insurance
|
| | | | 26,226 | | | | | | 25,540 | | | | | | 19,395 | | | | | | 18,793 | | | | | | 12,144 | | |
Deferred tax asset, net
|
| | | | 6,437 | | | | | | 4,920 | | | | | | 4,913 | | | | | | 5,056 | | | | | | 3,632 | | |
Deposits
|
| | | | 768,096 | | | | | | 750,057 | | | | | | 627,982 | | | | | | 577,235 | | | | | | 536,684 | | |
Borrowings
|
| | | | 68,022 | | | | | | 26,841 | | | | | | 49,858 | | | | | | 57,423 | | | | | | 39,237 | | |
Series A preferred stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,145 | | |
Total shareholders’ equity(2)
|
| | | | 125,584 | | | | | | 115,777 | | | | | | 109,149 | | | | | | 101,406 | | | | | | 75,791 | | |
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For the Year Ended December 31,
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(In thousands)
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2018
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2017
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2016
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2015
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2014
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Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and dividend income
|
| | | $ | 42,340 | | | | | $ | 35,782 | | | | | $ | 28,894 | | | | | $ | 25,452 | | | | | $ | 23,266 | | |
Interest expense
|
| | | | 5,213 | | | | | | 3,726 | | | | | | 2,785 | | | | | | 2,174 | | | | | | 2,291 | | |
Net interest and dividend income
|
| | | | 37,127 | | | | | | 32,056 | | | | | | 26,109 | | | | | | 23,278 | | | | | | 20,975 | | |
Provision for loan losses
|
| | | | 3,329 | | | | | | 2,929 | | | | | | 703 | | | | | | 805 | | | | | | 1,452 | | |
Net interest and dividend income after provision for loan losses
|
| | | | 33,798 | | | | | | 29,127 | | | | | | 25,406 | | | | | | 22,473 | | | | | | 19,523 | | |
Gains on sales of securities, net
|
| | | | — | | | | | | 5,912 | | | | | | 690 | | | | | | 317 | | | | | | 428 | | |
Other noninterest income
|
| | | | 4,178 | | | | | | 4,043 | | | | | | 3,745 | | | | | | 3,489 | | | | | | 3,485 | | |
Noninterest expense(3)
|
| | | | 25,414 | | | | | | 23,749 | | | | | | 20,477 | | | | | | 21,093 | | | | | | 17,421 | | |
Income before income taxes
|
| | | | 12,562 | | | | | | 15,333 | | | | | | 9,364 | | | | | | 5,186 | | | | | | 6,015 | | |
Income tax expense(4)
|
| | | | 3,237 | | | | | | 7,418 | | | | | | 3,025 | | | | | | 1,363 | | | | | | 1,453 | | |
Net income
|
| | | $ | 9,325 | | | | | $ | 7,915 | | | | | $ | 6,339 | | | | | $ | 3,823 | | | | | $ | 4,562 | | |
Earnings per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 1.01 | | | | | $ | 0.86 | | | | | $ | 0.69 | | | | | | N/A | | | | | | N/A | | |
Diluted
|
| | | $ | 1.00 | | | | | $ | 0.86 | | | | | $ | 0.69 | | | | | | N/A | | | | | | N/A | | |
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At or For the Year Ended December 31,
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2018
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2017
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2016
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2015
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2014
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Performance Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets
|
| | | | 1.03% | | | | | | 0.91% | | | | | | 0.84% | | | | | | 0.56% | | | | | | 0.71% | | |
Return on average equity
|
| | | | 7.75% | | | | | | 6.84% | | | | | | 5.98% | | | | | | 4.07% | | | | | | 6.24% | | |
Interest rate spread(1)
|
| | | | 4.05% | | | | | | 3.71% | | | | | | 3.46% | | | | | | 3.41% | | | | | | 3.32% | | |
Net interest margin(2)
|
| | | | 4.33% | | | | | | 3.90% | | | | | | 3.65% | | | | | | 3.58% | | | | | | 3.46% | | |
Efficiency ratio(3)
|
| | | | 61.53% | | | | | | 65.79% | | | | | | 68.59% | | | | | | 78.80% | | | | | | 71.22% | | |
Average interest-earning assets to average interest-bearing liabilities
|
| | | | 146.01% | | | | | | 142.10% | | | | | | 147.58% | | | | | | 148.35% | | | | | | 137.39% | | |
Average equity to average assets
|
| | | | 13.26% | | | | | | 13.32% | | | | | | 14.06% | | | | | | 13.71% | | | | | | 11.43% | | |
Average common equity to average assets
|
| | | | 13.26% | | | | | | 13.32% | | | | | | 14.06% | | | | | | 11.29% | | | | | | 8.75% | | |
Regulatory Capital Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital to risk weighted assets (bank only)
|
| | | | 14.55% | | | | | | 14.96% | | | | | | 15.88% | | | | | | 17.06% | | | | | | 15.37% | | |
Tier 1 capital to risk weighted assets (bank only)
|
| | | | 13.30% | | | | | | 13.71% | | | | | | 14.41% | | | | | | 15.64% | | | | | | 13.87% | | |
Tier 1 capital to average assets (bank only)
|
| | | | 12.69% | | | | | | 11.80% | | | | | | 12.59% | | | | | | 13.42% | | | | | | 11.30% | | |
Common equity tier 1 capital (bank only)
|
| | | | 13.30% | | | | | | 13.71% | | | | | | 14.41% | | | | | | 15.64% | | | | | | N/A | | |
Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses as a percentage of total loans(4)
|
| | | | 1.38% | | | | | | 1.30% | | | | | | 1.36% | | | | | | 1.40% | | | | | | 1.44% | | |
Allowance for loan losses as a percentage of non-performing loans
|
| | | | 186.55% | | | | | | 108.02% | | | | | | 542.98% | | | | | | 346.10% | | | | | | 142.15% | | |
Net charge-offs to average outstanding loans during
the year |
| | | | 0.18% | | | | | | 0.25% | | | | | | 0.00% | | | | | | 0.02% | | | | | | 0.06% | | |
Non-performing loans as a percentage of total loans(4)
|
| | | | 0.74% | | | | | | 1.20% | | | | | | 0.25% | | | | | | 0.41% | | | | | | 1.01% | | |
Non-performing loans as a percentage of total
assets |
| | | | 0.64% | | | | | | 1.00% | | | | | | 0.20% | | | | | | 0.31% | | | | | | 0.77% | | |
Total non-performing assets as a percentage of total assets
|
| | | | 0.81% | | | | | | 1.00% | | | | | | 0.20% | | | | | | 0.31% | | | | | | 0.77% | | |
Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of offices
|
| | | | 8 | | | | | | 8 | | | | | | 7 | | | | | | 7 | | | | | | 7 | | |
Number of full-time equivalent employees
|
| | | | 123 | | | | | | 126 | | | | | | 121 | | | | | | 108 | | | | | | 111 | | |
| | |
At December 31,
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2018
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2017
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2016
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2015
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2014
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(Dollars in thousands)
|
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Amount
|
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Percent
|
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Amount
|
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Percent
|
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Amount
|
| |
Percent
|
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Amount
|
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Percent
|
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Amount
|
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Percent
|
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Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential(1)
|
| | | $ | 57,361 | | | | | | 6.76% | | | | | $ | 67,724 | | | | | | 9.00% | | | | | $ | 76,850 | | | | | | 12.13% | | | | | $ | 92,392 | | | | | | 16.40% | | | | | $ | 104,568 | | | | | | 20.84% | | |
Commercial(2)
|
| | | | 364,867 | | | | | | 43.00 | | | | | | 371,510 | | | | | | 49.35 | | | | | | 336,102 | | | | | | 53.07 | | | | | | 285,356 | | | | | | 50.67 | | | | | | 249,691 | | | | | | 49.76 | | |
Construction and land development
|
| | | | 44,606 | | | | | | 5.26 | | | | | | 55,828 | | | | | | 7.42 | | | | | | 48,161 | | | | | | 7.60 | | | | | | 71,535 | | | | | | 12.70 | | | | | | 47,079 | | | | | | 9.38 | | |
Commercial | | | | | 361,782 | | | | | | 42.64 | | | | | | 240,223 | | | | | | 31.91 | | | | | | 166,157 | | | | | | 26.23 | | | | | | 112,073 | | | | | | 19.90 | | | | | | 97,589 | | | | | | 19.45 | | |
Consumer | | | | | 19,815 | | | | | | 2.34 | | | | | | 17,455 | | | | | | 2.32 | | | | | | 6,172 | | | | | | 0.97 | | | | | | 1,855 | | | | | | 0.33 | | | | | | 2,863 | | | | | | 0.57 | | |
Total loans
|
| | | | 848,431 | | | | | | 100.00% | | | | | | 752,740 | | | | | | 100.00% | | | | | | 633,442 | | | | | | 100.00% | | | | | | 563,211 | | | | | | 100.00% | | | | | | 501,790 | | | | | | 100.00% | | |
Deferred loan fees, net
|
| | | | (1,223) | | | | | | | | | | | | (845) | | | | | | | | | | | | (427) | | | | | | | | | | | | (377) | | | | | | | | | | | | (383) | | | | | | | | |
Allowance for loan losses
|
| | | | (11,680) | | | | | | | | | | | | (9,757) | | | | | | | | | | | | (8,590) | | | | | | | | | | | | (7,905) | | | | | | | | | | | | (7,224) | | | | | | | | |
Loans, net
|
| | | $ | 835,528 | | | | | | | | | | | $ | 742,138 | | | | | | | | | | | $ | 624,425 | | | | | | | | | | | $ | 554,929 | | | | | | | | | | | $ | 494,183 | | | | | | | | |
|
(In thousands)
|
| |
Residential
Real Estate |
| |
Commercial
Real Estate |
| |
Construction and
Land Development |
| |
Commercial
|
| |
Consumer
|
| |
Total
Loans |
| ||||||||||||||||||
Amounts due in: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One year or less
|
| | | $ | 139 | | | | | $ | 16,187 | | | | | $ | 19,244 | | | | | $ | 49,533 | | | | | $ | 937 | | | | | $ | 86,040 | | |
More than one year to five years
|
| | | | 3,547 | | | | | | 13,948 | | | | | | 1,110 | | | | | | 95,095 | | | | | | 18,878 | | | | | | 132,578 | | |
More than five years through ten years
|
| | | | 12,109 | | | | | | 49,063 | | | | | | 549 | | | | | | 175,823 | | | | | | — | | | | | | 237,544 | | |
More than ten years
|
| | | | 41,566 | | | | | | 285,669 | | | | | | 23,703 | | | | | | 41,331 | | | | | | — | | | | | | 392,269 | | |
Total
|
| | | $ | 57,361 | | | | | $ | 364,867 | | | | | $ | 44,606 | | | | | $ | 361,782 | | | | | $ | 19,815 | | | | | $ | 848,431 | | |
|
(In thousands)
|
| |
Fixed
Rates |
| |
Floating or
Adjustable Rates |
| |
Total
|
| |||||||||
Real estate: | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 36,067 | | | | | $ | 21,155 | | | | | $ | 57,222 | | |
Commercial
|
| | | | 4,301 | | | | | | 344,379 | | | | | | 348,680 | | |
Construction and land development
|
| | | | — | | | | | | 25,362 | | | | | | 25,362 | | |
Commercial | | | | | 119,521 | | | | | | 192,728 | | | | | | 312,249 | | |
Consumer | | | | | 18,878 | | | | | | — | | | | | | 18,878 | | |
Total loans
|
| | | $ | 178,767 | | | | | $ | 583,624 | | | | | $ | 762,391 | | |
|
| | |
At December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||||||||||||||||||||
(In thousands)
|
| |
30 – 59
Days Past Due |
| |
60 – 89
Days Past Due |
| |
90 Days
or more Past Due |
| |
30 – 59
Days Past Due |
| |
60 – 89
Days Past Due |
| |
90 Days
or more Past Due |
| |
30 – 59
Days Past Due |
| |
60 – 89
Days Past Due |
| |
90 Days
or more Past Due |
| |||||||||||||||||||||||||||
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 321 | | | | | $ | 223 | | | | | $ | 30 | | | | | $ | 699 | | | | | $ | 178 | | | | | $ | 81 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Commercial
|
| | | | 742 | | | | | | — | | | | | | 519 | | | | | | — | | | | | | 3,669 | | | | | | — | | | | | | — | | | | | | — | | | | | | 346 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 40 | | | | | | — | | | | | | 3,167 | | | | | | 12 | | | | | | — | | | | | | — | | | | | | 29 | | | | | | — | | | | | | — | | |
Consumer | | | | | 62 | | | | | | 46 | | | | | | 59 | | | | | | 63 | | | | | | 45 | | | | | | 60 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 1,165 | | | | | $ | 269 | | | | | $ | 3,775 | | | | | $ | 774 | | | | | $ | 3,892 | | | | | $ | 141 | | | | | $ | 29 | | | | | $ | — | | | | | $ | 346 | | |
|
| | |
At December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014
|
| ||||||||||||||||||||||||||||||
(In thousands)
|
| |
30 – 59
Days Past Due |
| |
60 – 89
Days Past Due |
| |
90 Days
or more Past Due |
| |
30 – 59
Days Past Due |
| |
60 – 89
Days Past Due |
| |
90 Days
or more Past Due |
| ||||||||||||||||||
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 130 | | | | | $ | 173 | | | | | $ | 365 | | | | | $ | — | | | | | $ | 404 | | | | | $ | 423 | | |
Commercial
|
| | | | — | | | | | | — | | | | | | — | | | | | | 110 | | | | | | 132 | | | | | | 363 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | 149 | | | | | | 108 | | | | | | 350 | | |
Consumer | | | | | 1 | | | | | | 1 | | | | | | — | | | | | | 9 | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 131 | | | | | $ | 174 | | | | | $ | 365 | | | | | $ | 268 | | | | | $ | 644 | | | | | $ | 1,136 | | |
|
| | |
At December 31,
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
2018
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||
Non-accrual loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 850 | | | | | $ | 364 | | | | | $ | 303 | | | | | $ | 1,031 | | | | | $ | 1,564 | | |
Commercial
|
| | | | 519 | | | | | | 7,102 | | | | | | 346 | | | | | | 106 | | | | | | 3,002 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 4,830 | | | | | | 1,505 | | | | | | 933 | | | | | | 1,147 | | | | | | 516 | | |
Consumer
|
| | | | 62 | | | | | | 62 | | | | | | — | | | | | | — | | | | | | — | | |
Total non-accrual loans
|
| | | | 6,261 | | | | | | 9,033 | | | | | | 1,582 | | | | | | 2,284 | | | | | | 5,082 | | |
Accruing loans past due 90 days or more
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other real estate owned
|
| | | | 1,676 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total non-performing assets
|
| | | $ | 7,937 | | | | | $ | 9,033 | | | | | $ | 1,582 | | | | | $ | 2,284 | | | | | $ | 5,082 | | |
Total loans(1)
|
| | | $ | 847,208 | | | | | $ | 751,895 | | | | | $ | 633,015 | | | | | $ | 562,834 | | | | | $ | 501,407 | | |
Total assets
|
| | | $ | 974,079 | | | | | $ | 902,265 | | | | | $ | 795,543 | | | | | $ | 743,397 | | | | | $ | 658,606 | | |
Total non-performing loans to total loans(1)
|
| | | | 0.74% | | | | | | 1.20% | | | | | | 0.25% | | | | | | 0.41% | | | | | | 1.01% | | |
Total non-performing assets to total assets
|
| | | | 0.81% | | | | | | 1.00% | | | | | | 0.20% | | | | | | 0.31% | | | | | | 0.77% | | |
| | |
At December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||||||||||||||||||||||||||||||||
(In thousands)
|
| |
Non-
Accruing |
| |
Accruing
|
| |
Non-
Accruing |
| |
Accruing
|
| |
Non-
Accruing |
| |
Accruing
|
| |
Non-
Accruing |
| |
Accruing
|
| |
Non-
Accruing |
| |
Accruing
|
| ||||||||||||||||||||||||||||||
Troubled Debt Restructurings:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | — | | | | | $ | 388 | | | | | $ | — | | | | | $ | 404 | | | | | $ | — | | | | | $ | 422 | | | | | $ | — | | | | | $ | 436 | | | | | $ | — | | | | | $ | 221 | | |
Commercial
|
| | | | — | | | | | | 1,334 | | | | | | — | | | | | | 1,521 | | | | | | 346 | | | | | | 1,610 | | | | | | 106 | | | | | | 3,167 | | | | | | 1,490 | | | | | | 1,385 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 1,089 | | | | | | 462 | | | | | | 67 | | | | | | 1,698 | | | | | | 919 | | | | | | 727 | | | | | | 1,147 | | | | | | 565 | | | | | | 202 | | | | | | 196 | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 1,089 | | | | | $ | 2,184 | | | | | $ | 67 | | | | | $ | 3,623 | | | | | $ | 1,265 | | | | | $ | 2,759 | | | | | $ | 1,253 | | | | | $ | 4,168 | | | | | $ | 1,692 | | | | | $ | 1,802 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
2018
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||
Allowance at beginning of year
|
| | | $ | 9,757 | | | | | $ | 8,590 | | | | | $ | 7,905 | | | | | $ | 7,224 | | | | | $ | 6,077 | | |
Provision for loan losses
|
| | | | 3,329 | | | | | | 2,929 | | | | | | 703 | | | | | | 805 | | | | | | 1,452 | | |
Charge offs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 30 | | |
Commercial
|
| | | | 670 | | | | | | 1,522 | | | | | | — | | | | | | — | | | | | | 243 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 190 | | | | | | 107 | | | | | | — | | | | | | 96 | | | | | | — | | |
Consumer
|
| | | | 699 | | | | | | 190 | | | | | | 44 | | | | | | 65 | | | | | | 91 | | |
Total charge-offs
|
| | | | 1,559 | | | | | | 1,819 | | | | | | 44 | | | | | | 161 | | | | | | 364 | | |
Recoveries: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | | 2 | | | | | | — | | | | | | 12 | | | | | | 6 | | | | | | 24 | | |
Commercial
|
| | | | — | | | | | | 45 | | | | | | — | | | | | | — | | | | | | 24 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial
|
| | | | 87 | | | | | | — | | | | | | 1 | | | | | | 20 | | | | | | 5 | | |
Consumer
|
| | | | 64 | | | | | | 12 | | | | | | 13 | | | | | | 11 | | | | | | 6 | | |
Total recoveries
|
| | | | 153 | | | | | | 57 | | | | | | 26 | | | | | | 37 | | | | | | 59 | | |
Net charge-offs
|
| | | | 1,406 | | | | | | 1,762 | | | | | | 18 | | | | | | 124 | | | | | | 305 | | |
Allowance at end of year
|
| | | $ | 11,680 | | | | | $ | 9,757 | | | | | $ | 8,590 | | | | | $ | 7,905 | | | | | $ | 7,224 | | |
Non-performing loans at end of year
|
| | | $ | 6,261 | | | | | $ | 9,033 | | | | | $ | 1,582 | | | | | $ | 2,284 | | | | | $ | 5,082 | | |
Total loans outstanding at end of year(1)
|
| | | $ | 847,208 | | | | | $ | 751,895 | | | | | $ | 633,015 | | | | | $ | 562,834 | | | | | $ | 501,407 | | |
Average loans outstanding during the year(1)
|
| | | $ | 783,570 | | | | | $ | 698,859 | | | | | $ | 583,156 | | | | | $ | 516,405 | | | | | $ | 471,650 | | |
Allowance to non-performing loans
|
| | | | 186.55% | | | | | | 108.02% | | | | | | 542.98% | | | | | | 346.10% | | | | | | 142.15% | | |
Allowance to total loans outstanding at end of the year
|
| | | | 1.38% | | | | | | 1.30% | | | | | | 1.36% | | | | | | 1.40% | | | | | | 1.44% | | |
Net chargeoffs to average loans outstanding during the year
|
| | | | 0.18% | | | | | | 0.25% | | | | | | 0.00% | | | | | | 0.02% | | | | | | 0.06% | | |
| | |
At December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Allowance
for Loan Losses |
| |
% of Loans
in Category to Total Loans |
| |
Allowance
for Loan Losses |
| |
% of Loans
in Category to Total Loans |
| |
Allowance
for Loan Losses |
| |
% of Loans
in Category to Total Loans |
| ||||||||||||||||||
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 251 | | | | | | 6.76% | | | | | $ | 300 | | | | | | 9.00% | | | | | $ | 328 | | | | | | 12.13% | | |
Commercial
|
| | | | 4,152 | | | | | | 43.00 | | | | | | 4,483 | | | | | | 49.35 | | | | | | 4,503 | | | | | | 53.07 | | |
Construction and land development
|
| | | | 738 | | | | | | 5.26 | | | | | | 965 | | | | | | 7.42 | | | | | | 882 | | | | | | 7.60 | | |
Commercial
|
| | | | 5,742 | | | | | | 42.64 | | | | | | 3,280 | | | | | | 31.91 | | | | | | 2,513 | | | | | | 26.23 | | |
Consumer
|
| | | | 710 | | | | | | 2.34 | | | | | | 649 | | | | | | 2.32 | | | | | | 279 | | | | | | 0.97 | | |
Total allocated allowance for loan losses
|
| | | | 11,593 | | | | | | 100.00% | | | | | | 9,677 | | | | | | 100.00% | | | | | | 8,505 | | | | | | 100.00% | | |
Unallocated
|
| | | | 87 | | | | | | | | | | | | 80 | | | | | | | | | | | | 85 | | | | | | | | |
Total
|
| | | $ | 11,680 | | | | | | | | | | | $ | 9,757 | | | | | | | | | | | $ | 8,590 | | | | | | | | |
|
| | |
At December 31,
|
| |||||||||||||||||||||
| | |
2015
|
| |
2014
|
| ||||||||||||||||||
(Dollars in thousands)
|
| |
Allowance
for Loan Losses |
| |
% of Loans
in Category to Total Loans |
| |
Allowance
for Loan Losses |
| |
% of Loans
in Category to Total Loans |
| ||||||||||||
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential
|
| | | $ | 412 | | | | | | 16.40% | | | | | $ | 560 | | | | | | 20.84% | | |
Commercial
|
| | | | 3,827 | | | | | | 50.67 | | | | | | 3,500 | | | | | | 49.76 | | |
Construction and land development
|
| | | | 1,236 | | | | | | 12.70 | | | | | | 872 | | | | | | 9.38 | | |
Commercial
|
| | | | 2,138 | | | | | | 19.90 | | | | | | 1,751 | | | | | | 19.45 | | |
Consumer
|
| | | | 119 | | | | | | 0.33 | | | | | | 184 | | | | | | 0.57 | | |
Total allocated allowance for loan losses
|
| | | | 7,732 | | | | | | 100.00% | | | | | | 6,867 | | | | | | 100.00% | | |
Unallocated
|
| | | | 173 | | | | | | | | | | | | 357 | | | | | | | | |
Total
|
| | | $ | 7,905 | | | | | | | | | | | $ | 7,224 | | | | | | | | |
|
| | |
At December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
(In thousands)
|
| |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| ||||||||||||||||||
Securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
State and municipal
|
| | | $ | 20,118 | | | | | $ | 20,255 | | | | | $ | 20,726 | | | | | $ | 21,454 | | | | | $ | 49,367 | | | | | $ | 50,580 | | |
Asset-backed securities
|
| | | | 6,512 | | | | | | 6,371 | | | | | | 7,524 | | | | | | 7,517 | | | | | | 8,747 | | | | | | 8,678 | | |
Government mortgage-backed securities
|
| | | | 25,135 | | | | | | 24,777 | | | | | | 32,421 | | | | | | 32,458 | | | | | | 41,818 | | | | | | 41,914 | | |
Corporate debt
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | 1,031 | | |
Trust preferred securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,368 | | | | | | 968 | | |
Marketable equity securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,363 | | | | | | 14,696 | | |
Total
|
| | | $ | 51,765 | | | | | $ | 51,403 | | | | | $ | 60,671 | | | | | $ | 61,429 | | | | | $ | 113,663 | | | | | $ | 117,867 | | |
|
| | |
One Year or Less
|
| |
More than
One Year to Five Years |
| |
More than
Five Years to Ten Years |
| |
More than
Ten Years |
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Amortized
Cost |
| |
Weighted
Average Yield |
| |
Amortized
Cost |
| |
Weighted
Average Yield |
| |
Amortized
Cost |
| |
Weighted
Average Yield |
| |
Amortized
Cost |
| |
Weighted
Average Yield |
| |
Amortized
Cost |
| |
Fair
Value |
| |
Weighted
Average Yield |
| |||||||||||||||||||||||||||||||||
Securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
State and municipal
|
| | | $ | 95 | | | | | | 4.05% | | | | | $ | 604 | | | | | | 3.81% | | | | | $ | 2,120 | | | | | | 3.87% | | | | | $ | 17,299 | | | | | | 3.25% | | | | | $ | 20,118 | | | | | $ | 20,255 | | | | | | 3.34% | | |
Asset-backed securities
|
| | | | — | | | | | | —% | | | | | | 1,051 | | | | | | 1.99% | | | | | | — | | | | | | —% | | | | | | 5,461 | | | | | | 2.74% | | | | | | 6,512 | | | | | | 6,371 | | | | | | 2.62% | | |
Government mortgage-backed securities
|
| | | | — | | | | | | —% | | | | | | 1,355 | | | | | | 1.47% | | | | | | 4,277 | | | | | | 2.54% | | | | | | 19,503 | | | | | | 2.74% | | | | | | 25,135 | | | | | | 24,777 | | | | | | 2.64% | | |
Total
|
| | | $ | 95 | | | | | | 4.05% | | | | | $ | 3,010 | | | | | | 2.12% | | | | | $ | 6,397 | | | | | | 2.98% | | | | | $ | 42,263 | | | | | | 2.95% | | | | | $ | 51,765 | | | | | $ | 51,403 | | | | | | 2.91% | | |
| | |
At December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Amount
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||
Noninterest bearing
|
| | | $ | 195,293 | | | | | | 25.43% | | | | | $ | 186,222 | | | | | | 24.83% | | | | | $ | 158,075 | | | | | | 25.17% | | |
Negotiable order of withdrawal (NOW)
|
| | | | 136,771 | | | | | | 17.81% | | | | | | 123,292 | | | | | | 16.44% | | | | | | 122,698 | | | | | | 19.54% | | |
Savings accounts
|
| | | | 109,322 | | | | | | 14.23% | | | | | | 112,610 | | | | | | 15.01% | | | | | | 111,016 | | | | | | 17.68% | | |
Money market deposit accounts
|
| | | | 229,314 | | | | | | 29.85% | | | | | | 225,735 | | | | | | 30.10% | | | | | | 145,321 | | | | | | 23.14% | | |
Certificates of deposit
|
| | | | 97,396 | | | | | | 12.68% | | | | | | 102,198 | | | | | | 13.62% | | | | | | 90,872 | | | | | | 14.47% | | |
Total
|
| | | $ | 768,096 | | | | | | 100.00% | | | | | $ | 750,057 | | | | | | 100.00% | | | | | $ | 627,982 | | | | | | 100.00% | | |
|
Maturity Period
|
| |
At
December 31, 2018 |
| |||
(In thousands)
|
| | |||||
Three months or less
|
| | | $ | 2,005 | | |
Over three through six months
|
| | | | 3,650 | | |
Over six through twelve months
|
| | | | 3,338 | | |
Over twelve months
|
| | | | 15,083 | | |
Total
|
| | | $ | 24,076 | | |
|
| | |
At or For the Year Ended December 31,
|
| |||||||||||||||
(Dollars in thousands)
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Balance outstanding at end of year
|
| | | $ | 68,022 | | | | | $ | 26,841 | | | | | $ | 49,858 | | |
Weighted average interest rate at end of year
|
| | | | 2.58% | | | | | | 1.52% | | | | | | 1.36% | | |
Maximum amount of borrowings outstanding at any month end during the year
|
| | | $ | 68,125 | | | | | $ | 79,725 | | | | | $ | 50,025 | | |
Average balance outstanding during the year
|
| | | $ | 30,987 | | | | | $ | 51,610 | | | | | $ | 36,672 | | |
Weighted average interest rate during the year
|
| | | | 2.40% | | | | | | 1.52% | | | | | | 1.70% | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Average
Balance |
| |
Interest
Earned/ Paid |
| |
Yield/
Rate |
| |
Average
Balance |
| |
Interest
Earned/ Paid |
| |
Yield/
Rate |
| |
Average
Balance |
| |
Interest
Earned/ Paid |
| |
Yield/
Rate |
| |||||||||||||||||||||||||||
Assets: | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 783,570 | | | | | $ | 40,358 | | | | | | 5.15% | | | | | $ | 698,859 | | | | | $ | 32,510 | | | | | | 4.65% | | | | | $ | 583,156 | | | | | $ | 25,549 | | | | | | 4.38% | | |
Short-term investments
|
| | | | 15,846 | | | | | | 313 | | | | | | 1.98% | | | | | | 8,285 | | | | | | 100 | | | | | | 1.21% | | | | | | 7,992 | | | | | | 33 | | | | | | 0.41% | | |
Investment securities
|
| | | | 55,686 | | | | | | 1,560 | | | | | | 2.80% | | | | | | 111,732 | | | | | | 3,049 | | | | | | 2.73% | | | | | | 120,897 | | | | | | 3,222 | | | | | | 2.67% | | |
Federal Home Loan Bank stock
|
| | | | 1,925 | | | | | | 109 | | | | | | 5.66% | | | | | | 2,874 | | | | | | 123 | | | | | | 4.28% | | | | | | 2,599 | | | | | | 90 | | | | | | 3.46% | | |
Total interest-earning assets
|
| | | | 857,027 | | | | | | 42,340 | | | | | | 4.94% | | | | | | 821,750 | | | | | | 35,782 | | | | | | 4.35% | | | | | | 714,644 | | | | | | 28,894 | | | | | | 4.04% | | |
Non-interest earning assets
|
| | | | 50,411 | | | | | | | | | | | | | | | | | | 46,576 | | | | | | | | | | | | | | | | | | 39,845 | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 907,438 | | | | | | | | | | | | | | | | | $ | 868,326 | | | | | | | | | | | | | | | | | $ | 754,489 | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Savings accounts
|
| | | $ | 116,126 | | | | | | 281 | | | | | | 0.24% | | | | | $ | 116,147 | | | | | | 209 | | | | | | 0.18% | | | | | $ | 110,528 | | | | | | 190 | | | | | | 0.17% | | |
Money market accounts
|
| | | | 227,057 | | | | | | 2,224 | | | | | | 0.98% | | | | | | 176,216 | | | | | | 875 | | | | | | 0.50% | | | | | | 115,857 | | | | | | 334 | | | | | | 0.29% | | |
Now accounts
|
| | | | 116,816 | | | | | | 602 | | | | | | 0.52% | | | | | | 114,292 | | | | | | 660 | | | | | | 0.58% | | | | | | 112,003 | | | | | | 661 | | | | | | 0.59% | | |
Certificates of deposit
|
| | | | 95,987 | | | | | | 1,361 | | | | | | 1.42% | | | | | | 120,033 | | | | | | 1,200 | | | | | | 1.00% | | | | | | 109,175 | | | | | | 978 | | | | | | 0.90% | | |
Total interest-bearing deposits
|
| | | | 555,986 | | | | | | 4,468 | | | | | | 0.80% | | | | | | 526,688 | | | | | | 2,944 | | | | | | 0.56% | | | | | | 447,563 | | | | | | 2,163 | | | | | | 0.48% | | |
Borrowings
|
| | | | 30,987 | | | | | | 745 | | | | | | 2.40% | | | | | | 51,610 | | | | | | 782 | | | | | | 1.52% | | | | | | 36,672 | | | | | | 622 | | | | | | 1.70% | | |
Total interest-bearing liabilities
|
| | | | 586,973 | | | | | | 5,213 | | | | | | 0.89% | | | | | | 578,298 | | | | | | 3,726 | | | | | | 0.64% | | | | | | 484,235 | | | | | | 2,785 | | | | | | 0.58% | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits
|
| | | | 189,369 | | | | | | | | | | | | | | | | | | 166,055 | | | | | | | | | | | | | | | | | | 156,379 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities
|
| | | | 10,759 | | | | | | | | | | | | | | | | | | 8,332 | | | | | | | | | | | | | | | | | | 7,813 | | | | | | | | | | | | | | |
Total liabilities
|
| | | | 787,101 | | | | | | | | | | | | | | | | | | 752,685 | | | | | | | | | | | | | | | | | | 648,427 | | | | | | | | | | | | | | |
Total equity
|
| | | | 120,337 | | | | | | | | | | | | | | | | | | 115,641 | | | | | | | | | | | | | | | | | | 106,062 | | | | | | | | | | | | | | |
Total liabilities and equity
|
| | | $ | 907,438 | | | | | | | | | | | | | | | | | $ | 868,326 | | | | | | | | | | | | | | | | | $ | 754,489 | | | | | | | | | | | | | | |
Net interest income
|
| | | | | | | | | $ | 37,127 | | | | | | | | | | | | | | | | | $ | 32,056 | | | | | | | | | | | | | | | | | $ | 26,109 | | | | | | | | |
Interest rate spread(1)
|
| | | | | | | | | | | | | | | | 4.05% | | | | | | | | | | | | | | | | | | 3.71% | | | | | | | | | | | | | | | | | | 3.46% | | |
Net interest-earning assets(2)
|
| | | $ | 270,054 | | | | | | | | | | | | | | | | | $ | 243,452 | | | | | | | | | | | | | | | | | $ | 230,409 | | | | | | | | | | | | | | |
Net interest margin(3)
|
| | | | | | | | | | | | | | | | 4.33% | | | | | | | | | | | | | | | | | | 3.90% | | | | | | | | | | | | | | | | | | 3.65% | | |
Average interest-earning assets to interest-bearing
liabilities |
| | | | 146.01% | | | | | | | | | | | | | | | | | | 142.10% | | | | | | | | | | | | | | | | | | 147.58% | | | | | | | | | | | | | | |
|
| | |
Year Ended December 31,
2018 vs. 2017 |
| |
Year Ended December 31,
2017 vs. 2016 |
| ||||||||||||||||||||||||||||||
| | |
Increase (Decrease) Due to
|
| |
Total
Increase (Decrease) |
| |
Increase (Decrease) Due to
|
| |
Total
Increase (Decrease) |
| ||||||||||||||||||||||||
| | |
Rate
|
| |
Volume
|
| |
Rate
|
| |
Volume
|
| ||||||||||||||||||||||||
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 3,683 | | | | | $ | 4,165 | | | | | $ | 7,848 | | | | | $ | 1,653 | | | | | $ | 5,308 | | | | | $ | 6,961 | | |
Short-term investments
|
| | | | 88 | | | | | | 125 | | | | | | 213 | | | | | | 66 | | | | | | 1 | | | | | | 67 | | |
Investment securities
|
| | | | 79 | | | | | | (1,568) | | | | | | (1,489) | | | | | | 76 | | | | | | (249) | | | | | | (173) | | |
Federal Home Loan Bank stock
|
| | | | 33 | | | | | | (47) | | | | | | (14) | | | | | | 23 | | | | | | 10 | | | | | | 33 | | |
Total interest-earning assets
|
| | | | 3,883 | | | | | | 2,675 | | | | | | 6,558 | | | | | | 1,817 | | | | | | 5,071 | | | | | | 6,888 | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Savings accounts
|
| | | | 72 | | | | | | — | | | | | | 72 | | | | | | 9 | | | | | | 10 | | | | | | 19 | | |
Money market accounts
|
| | | | 1,040 | | | | | | 309 | | | | | | 1,349 | | | | | | 314 | | | | | | 227 | | | | | | 541 | | |
Now accounts
|
| | | | (72) | | | | | | 14 | | | | | | (58) | | | | | | (14) | | | | | | 13 | | | | | | (1) | | |
Certificates of deposit
|
| | | | 434 | | | | | | (273) | | | | | | 161 | | | | | | 120 | | | | | | 102 | | | | | | 222 | | |
Total interest-bearing deposits
|
| | | | 1,474 | | | | | | 50 | | | | | | 1,524 | | | | | | 429 | | | | | | 352 | | | | | | 781 | | |
Borrowings
|
| | | | 350 | | | | | | (387) | | | | | | (37) | | | | | | (72) | | | | | | 232 | | | | | | 160 | | |
Total interest-bearing liabilities
|
| | | | 1,824 | | | | | | (337) | | | | | | 1,487 | | | | | | 357 | | | | | | 584 | | | | | | 941 | | |
Change in net interest and dividend income
|
| | | $ | 2,059 | | | | | $ | 3,012 | | | | | $ | 5,071 | | | | | $ | 1,460 | | | | | $ | 4,487 | | | | | $ | 5,947 | | |
|
| | |
Years Ended
December 31, |
| |
Change
|
| ||||||||||||||||||
(Dollars in thousands)
|
| |
2018
|
| |
2017
|
| |
Amount
|
| |
Percent
|
| ||||||||||||
Customer service fees on deposit accounts
|
| | | $ | 1,435 | | | | | $ | 1,392 | | | | | $ | 43 | | | | | | 3.1% | | |
Service charges and fees – other
|
| | | | 1,993 | | | | | | 1,919 | | | | | | 74 | | | | | | 3.9% | | |
Gain on sales, calls and donated securities, net
|
| | | | — | | | | | | 5,912 | | | | | | (5,912) | | | | | | (100.0)% | | |
Bank owned life insurance income
|
| | | | 686 | | | | | | 645 | | | | | | 41 | | | | | | 6.4% | | |
Other income
|
| | | | 64 | | | | | | 87 | | | | | | (23) | | | | | | (26.4)% | | |
Total noninterest income
|
| | | $ | 4,178 | | | | | $ | 9,955 | | | | | $ | (5,777) | | | | | | (58.0)% | | |
|
| | |
Years Ended
December 31, |
| |
Change
|
| ||||||||||||||||||
(Dollars in thousands)
|
| |
2018
|
| |
2017
|
| |
Amount
|
| |
Percent
|
| ||||||||||||
Salaries and employee benefits
|
| | | $ | 16,801 | | | | | $ | 15,365 | | | | | $ | 1,436 | | | | | | 9.3% | | |
Occupancy expense
|
| | | | 1,733 | | | | | | 1,839 | | | | | | (106) | | | | | | (5.8)% | | |
Equipment expense
|
| | | | 471 | | | | | | 587 | | | | | | (116) | | | | | | (19.8)% | | |
FDIC assessment
|
| | | | 301 | | | | | | 309 | | | | | | (8) | | | | | | (2.6)% | | |
Data processing
|
| | | | 810 | | | | | | 741 | | | | | | 69 | | | | | | 9.3% | | |
Marketing expense
|
| | | | 245 | | | | | | 300 | | | | | | (55) | | | | | | (18.3)% | | |
Professional fees
|
| | | | 1,223 | | | | | | 936 | | | | | | 287 | | | | | | 30.7% | | |
Directors’ fees
|
| | | | 620 | | | | | | 607 | | | | | | 13 | | | | | | 2.1% | | |
Other
|
| | | | 3,210 | | | | | | 3,065 | | | | | | 145 | | | | | | 4.7% | | |
Total noninterest expense
|
| | | $ | 25,414 | | | | | $ | 23,749 | | | | | $ | 1,665 | | | | | | 7.0% | | |
|
| | |
At December 31,
|
| |||||||||||||||||||||
| | |
2018
|
| |
2017
|
| ||||||||||||||||||
Changes in Interest Rates (Basis Points) |
| |
Estimated
Net Interest Income Over Next 12 Months |
| |
Change
|
| |
Estimated
12-Months Net Interest Income |
| |
Change
|
| ||||||||||||
(Dollars in thousands)
|
| | | | | ||||||||||||||||||||
200
|
| | | $ | 42,086 | | | | | | (1.50)% | | | | | $ | 37,384 | | | | | | 1.04% | | |
0
|
| | | | 42,726 | | | | | | — | | | | | | 37,001 | | | | | | — | | |
-100
|
| | | | N/A | | | | | | N/A | | | | | | 35,752 | | | | | | (3.37)% | | |
-200
|
| | | | 42,160 | | | | | | (1.32)% | | | | | | N/A | | | | | | N/A | | |
| | |
At December 31,
|
| |||||||||||||||||||||
| | |
2018
|
| |
2017
|
| ||||||||||||||||||
Changes in Interest Rates (Basis Points) |
| |
Economic
Value of Equity |
| |
Change
|
| |
Economic
Value of Equity |
| |
Change
|
| ||||||||||||
(Dollars in thousands)
|
| | | | | ||||||||||||||||||||
400
|
| | | $ | 147,448 | | | | | | (3.70)% | | | | | $ | 133,578 | | | | | | 3.40% | | |
300
|
| | | | 150,100 | | | | | | (1.90)% | | | | | | 133,308 | | | | | | 3.20% | | |
200
|
| | | | 152,408 | | | | | | (0.40)% | | | | | | 132,555 | | | | | | 2.60% | | |
100
|
| | | | 153,932 | | | | | | 0.60% | | | | | | 131,933 | | | | | | 2.20% | | |
0
|
| | | | 153,061 | | | | | | — | | | | | | 129,138 | | | | | | — | | |
-100
|
| | | | 147,489 | | | | | | (3.60)% | | | | | | 115,278 | | | | | | (10.70)% | | |
-200
|
| | | | 134,586 | | | | | | (12.10)% | | | | | | N/A | | | | | | N/A | | |
| | | | | | | | |
Payments Due by period
|
| |||||||||||||||||||||
Contractual Obligations
|
| |
Total
|
| |
One Year
or Less |
| |
More Than
One Year to Three Years |
| |
More than
Three Years to Five Years |
| |
More Than
Five Years |
| |||||||||||||||
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term debt obligations
|
| | | $ | 68,022 | | | | | $ | 43,071 | | | | | $ | 16,451 | | | | | $ | 8,500 | | | | | $ | — | | |
Operating lease obligations
|
| | | | 3,193 | | | | | | 285 | | | | | | 496 | | | | | | 504 | | | | | | 1,908 | | |
Total
|
| | | $ | 71,215 | | | | | $ | 43,356 | | | | | $ | 16,947 | | | | | $ | 9,004 | | | | | $ | 1,908 | | |
|
| Date: March 14, 2019 | | |
By:
/s/ David P. Mansfield
David P. Mansfield
President and Chief Executive Officer |
|
|
Signatures
|
| |
Title
|
| |
Date
|
|
|
/s/ David P. Mansfield
David P. Mansfield
|
| | President and Chief Executive Officer (Principal Executive Officer) |
| |
March 14, 2019
|
|
|
/s/ Carol L. Houle
Carol L. Houle
|
| | Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | | |
March 14, 2019
|
|
|
/s/ Frank G. Cousins, Jr.
Frank G. Cousins, Jr.
|
| | Director | | |
March 14, 2019
|
|
|
/s/ James A. DeLeo
James A. DeLeo
|
| | Director | | |
March 14, 2019
|
|
|
/s/ Lisa B. DeStefano
Lisa B. DeStefano
|
| | Director | | |
March 14, 2019
|
|
|
/s/ Jay E. Gould
Jay E. Gould
|
| | Director | | |
March 14, 2019
|
|
|
/s/ Laurie H. Knapp
Laurie H. Knapp
|
| | Director | | |
March 14, 2019
|
|
|
/s/ Richard L. Peeke
Richard L. Peeke
|
| | Director | | |
March 14, 2019
|
|
|
/s/ Joseph B. Reilly
Joseph B. Reilly
|
| | Director | | |
March 14, 2019
|
|
|
/s/ Arthur W. Sullivan
Arthur W. Sullivan
|
| | Director | | |
March 14, 2019
|
|
|
/s/ Charles F. Withee
Charles F. Withee
|
| | Director | | |
March 14, 2019
|
|
| | | | | F-1 | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-8 | | | |
| | | | | F-8 | | | |
| | | | | F-15 | | | |
| | | | | F-17 | | | |
| | | | | F-22 | | | |
| | | | | F-23 | | | |
| | | | | F-23 | | | |
| | | | | F-24 | | | |
| | | | | F-26 | | | |
| | | | | F-28 | | | |
| | | | | F-28 | | | |
| | | | | F-30 | | | |
| | | | | F-30 | | | |
| | | | | F-31 | | | |
| | | | | F-31 | | | |
| | | | | F-34 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | |
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Assets | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 10,941 | | | | | $ | 10,326 | | |
Short-term investments
|
| | | | 17,672 | | | | | | 37,363 | | |
Cash and cash equivalents
|
| | | | 28,613 | | | | | | 47,689 | | |
Investments in available-for-sale securities (at fair value)
|
| | | | 51,403 | | | | | | 61,429 | | |
Federal Home Loan Bank stock, at cost
|
| | | | 2,650 | | | | | | 1,854 | | |
Loans, net
|
| | | | 835,528 | | | | | | 742,138 | | |
Assets held-for-sale
|
| | | | — | | | | | | 3,286 | | |
Bank owned life insurance
|
| | | | 26,226 | | | | | | 25,540 | | |
Premises and equipment, net
|
| | | | 16,086 | | | | | | 10,981 | | |
Other real estate owned
|
| | | | 1,676 | | | | | | — | | |
Accrued interest receivable
|
| | | | 2,638 | | | | | | 2,345 | | |
Deferred tax asset, net
|
| | | | 6,437 | | | | | | 4,920 | | |
Other assets
|
| | | | 2,822 | | | | | | 2,083 | | |
Total assets
|
| | | $ | 974,079 | | | | | $ | 902,265 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | |
Deposits:
|
| | | | | | | | | | | | |
Noninterest-bearing
|
| | | $ | 195,293 | | | | | $ | 186,222 | | |
Interest-bearing
|
| | | | 572,803 | | | | | | 563,835 | | |
Total deposits
|
| | | | 768,096 | | | | | | 750,057 | | |
Borrowings
|
| | | | 68,022 | | | | | | 26,841 | | |
Other liabilities
|
| | | | 12,377 | | | | | | 9,590 | | |
Total liabilities
|
| | | | 848,495 | | | | | | 786,488 | | |
Shareholders’ equity | | | | | | | | | | | | | |
Preferred stock; authorized 50,000 shares: no shares issued and outstanding
|
| | | | — | | | | | | — | | |
Common stock, no par value: 30,000,000 shares authorized; 9,662,181 shares issued, 9,625,719 shares outstanding at December 31, 2018 and 9,657,319 shares issued, 9,628,496 shares oustanding at December 31, 2017
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 45,895 | | | | | | 44,592 | | |
Retained earnings
|
| | | | 83,351 | | | | | | 74,047 | | |
Accumulated other comprehensive (loss) income
|
| | | | (255) | | | | | | 589 | | |
Unearned compensation – ESOP
|
| | | | (2,619) | | | | | | (2,857) | | |
Treasury stock: 36,462 and 28,823 shares at December 31, 2018 and 2017, respectively
|
| | | | (788) | | | | | | (594) | | |
Total shareholders’ equity
|
| | | | 125,584 | | | | | | 115,777 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 974,079 | | | | | $ | 902,265 | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
|||||
Interest and dividend income: | | | | | | | | | | | |
Interest and fees on loans
|
| | | $ | 40,358 | | | | | $ | 32,510 |
Interest and dividends on securities
|
| | | | 1,669 | | | | | | 3,172 |
Interest on short-term investments
|
| | | | 313 | | | | | | 100 |
Total interest and dividend income
|
| | | | 42,340 | | | | | | 35,782 |
Interest expense: | | | | | | | | | | | |
Interest on deposits
|
| | | | 4,468 | | | | | | 2,944 |
Interest on borrowings
|
| | | | 745 | | | | | | 782 |
Total interest expense
|
| | | | 5,213 | | | | | | 3,726 |
Net interest and dividend income
|
| | | | 37,127 | | | | | | 32,056 |
Provision for loan losses
|
| | | | 3,329 | | | | | | 2,929 |
Net interest and dividend income after provision for loan losses
|
| | | | 33,798 | | | | | | 29,127 |
Noninterest income: | | | | | | | | | | | |
Customer service fees on deposit accounts
|
| | | | 1,435 | | | | | | 1,392 |
Service charges and fees – other
|
| | | | 1,993 | | | | | | 1,919 |
Gain on sales of securities, net
|
| | | | — | | | | | | 5,912 |
Bank owned life insurance
|
| | | | 686 | | | | | | 645 |
Other income
|
| | | | 64 | | | | | | 87 |
Total noninterest income
|
| | | | 4,178 | | | | | | 9,955 |
Noninterest expense: | | | | | | | | | | | |
Salaries and employee benefits
|
| | | | 16,801 | | | | | | 15,365 |
Occupancy expense
|
| | | | 1,733 | | | | | | 1,839 |
Equipment expense
|
| | | | 471 | | | | | | 587 |
FDIC assessment
|
| | | | 301 | | | | | | 309 |
Data processing
|
| | | | 810 | | | | | | 741 |
Marketing expense
|
| | | | 245 | | | | | | 300 |
Professional fees
|
| | | | 1,223 | | | | | | 936 |
Directors’ fees
|
| | | | 620 | | | | | | 607 |
Other
|
| | | | 3,210 | | | | | | 3,065 |
Total noninterest expense
|
| | | | 25,414 | | | | | | 23,749 |
Income before income tax expense
|
| | | | 12,562 | | | | | | 15,333 |
Income tax expense
|
| | | | 3,237 | | | | | | 7,418 |
Net income
|
| | | $ | 9,325 | | | | | $ | 7,915 |
Earnings per share: | | | | | | | | | | | |
Basic
|
| | | $ | 1.01 | | | | | $ | 0.86 |
Diluted
|
| | | $ | 1.00 | | | | | $ | 0.86 |
Weighted Average Shares: | | | | | | | | | | | |
Basic
|
| | | | 9,240,086 | | | | | | 9,199,274 |
Diluted
|
| | | | 9,306,316 | | | | | | 9,199,887 |
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Net income
|
| | | $ | 9,325 | | | | | $ | 7,915 | | |
Other comprehensive loss: | | | | | | | | | | | | | |
Unrealized holding (losses) gains
|
| | | | (1,120) | | | | | | 2,466 | | |
Reclassification adjustment for realized gains in net income
|
| | | | — | | | | | | (5,912) | | |
Unrealized losses
|
| | | | (1,120) | | | | | | (3,446) | | |
Income tax effect
|
| | | | 276 | | | | | | 1,413 | | |
Other comprehensive loss, net of tax
|
| | | | (844) | | | | | | (2,033) | | |
Total comprehensive income
|
| | | $ | 8,481 | | | | | $ | 5,882 | | |
|
(In thousands, except share data)
|
| |
Shares of
Common Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Unearned
Compensation ESOP |
| |
Treasury
Stock |
| |
Total
|
| |||||||||||||||||||||
Balance, December 31, 2016
|
| | | | 9,652,448 | | | | | $ | 43,393 | | | | | $ | 66,229 | | | | | $ | 2,622 | | | | | $ | (3,095) | | | | | $ | — | | | | | $ | 109,149 | | |
Net income
|
| | | | — | | | | | | — | | | | | | 7,915 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,915 | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2,130) | | | | | | — | | | | | | — | | | | | | (2,130) | | |
Reclassification from AOCI to retained earnings
|
| | | | | | | | | | | | | | | | (97) | | | | | | 97 | | | | | | | | | | | | | | | | | | — | | |
Stock-based compensation expense
|
| | | | — | | | | | | 926 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 926 | | |
Restricted stock award grants
|
| | | | 4,871 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Treasury stock acquired
|
| | | | (28,823) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (594) | | | | | | (594) | | |
ESOP shares earned
|
| | | | — | | | | | | 273 | | | | | | — | | | | | | — | | | | | | 238 | | | | | | — | | | | | | 511 | | |
Balance, December 31, 2017
|
| | | | 9,628,496 | | | | | | 44,592 | | | | | | 74,047 | | | | | | 589 | | | | | | (2,857) | | | | | | (594) | | | | | | 115,777 | | |
Net income
|
| | | | — | | | | | | — | | | | | | 9,325 | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,325 | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (844) | | | | | | — | | | | | | — | | | | | | (844) | | |
Stock-based compensation expense
|
| | | | — | | | | | | 928 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 928 | | |
Restricted stock award grants
|
| | | | 4,862 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Exercise of stock options, net
|
| | | | 1,010 | | | | | | — | | | | | | (21) | | | | | | — | | | | | | — | | | | | | 21 | | | | | | — | | |
Treasury stock acquired
|
| | | | (8,649) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (215) | | | | | | (215) | | |
ESOP shares earned
|
| | | | — | | | | | | 375 | | | | | | — | | | | | | — | | | | | | 238 | | | | | | — | | | | | | 613 | | |
Balance, December 31, 2018
|
| | | | 9,625,719 | | | | | $ | 45,895 | | | | | $ | 83,351 | | | | | $ | (255) | | | | | $ | (2,619) | | | | | $ | (788) | | | | | $ | 125,584 | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 9,325 | | | | | $ | 7,915 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Amortization of securities premiums, net of accretion
|
| | | | 274 | | | | | | 740 | | |
ESOP expense
|
| | | | 613 | | | | | | 511 | | |
Gain on sale of securities, net
|
| | | | — | | | | | | (5,912) | | |
Change in deferred loan fees, net
|
| | | | 378 | | | | | | 418 | | |
Provision for loan losses
|
| | | | 3,329 | | | | | | 2,929 | | |
Depreciation and amortization
|
| | | | 721 | | | | | | 811 | | |
Loss on disposal of premises and equipment
|
| | | | 6 | | | | | | 2 | | |
Increase in accrued interest receivable
|
| | | | (293) | | | | | | (25) | | |
Deferred tax (benefit) expense
|
| | | | (1,241) | | | | | | 1,309 | | |
Share-based compensation expense
|
| | | | 928 | | | | | | 926 | | |
Increase in cash surrender value of life insurance
|
| | | | (686) | | | | | | (645) | | |
Decrease (increase) in other assets
|
| | | | 613 | | | | | | (539) | | |
Increase in other liabilities
|
| | | | 2,787 | | | | | | 1,036 | | |
Net cash provided by operating activities
|
| | | | 16,754 | | | | | | 9,476 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of available-for-sale securities
|
| | | | — | | | | | | (13,121) | | |
Proceeds from sales of available-for-sale securities
|
| | | | — | | | | | | 57,259 | | |
Proceeds from pay downs, maturities and calls of available-for-sale securities
|
| | | | 8,632 | | | | | | 14,026 | | |
(Purchase) redemption of Federal Home Loan Bank Stock
|
| | | | (796) | | | | | | 933 | | |
Loan originations and purchases, net of paydowns
|
| | | | (100,073) | | | | | | (121,060) | | |
Additions to premises and equipment
|
| | | | (2,399) | | | | | | (3,426) | | |
Additions to assets held-for-sale
|
| | | | (147) | | | | | | (67) | | |
Additions to other real estate owned
|
| | | | (52) | | | | | | — | | |
Purchase of bank owned life insurance
|
| | | | — | | | | | | (5,500) | | |
Net cash used in investing activities
|
| | | | (94,835) | | | | | | (70,956) | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Cash flows from financing activities: | | | | | | | | | | | | | |
Net increase in demand deposits, NOW and savings accounts
|
| | | | 22,841 | | | | | | 110,748 | | |
Net (decrease) increase in time deposits
|
| | | | (4,802) | | | | | | 11,327 | | |
Proceeds from advances from the Federal Home Loan Bank
|
| | | | 10,000 | | | | | | 7,000 | | |
Net change in short-term borrowings
|
| | | | 31,181 | | | | | | (30,017) | | |
Purchase of treasury stock
|
| | | | (215) | | | | | | (594) | | |
Net cash provided by financing activities
|
| | | | 59,005 | | | | | | 98,464 | | |
Net (decrease) increase in cash and cash equivalents
|
| | | | (19,076) | | | | | | 36,984 | | |
Cash and cash equivalents at beginning of year
|
| | | | 47,689 | | | | | | 10,705 | | |
Cash and cash equivalents at end of year
|
| | | $ | 28,613 | | | | | $ | 47,689 | | |
Supplemental disclosures: | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 5,326 | | | | | $ | 3,725 | | |
Income taxes paid
|
| | | | 3,638 | | | | | | 6,667 | | |
Loan transferred to other real estate owned
|
| | | | 1,624 | | | | | | — | | |
Loan transferred to other assets
|
| | | | 1,352 | | | | | | — | | |
Transfer from assets held-for-sale to premises and equipment
|
| | | | 3,433 | | | | | | — | | |
Transfer from premises and equipment to assets held-for-sale
|
| | | | — | | | | | | 3,219 | | |
(In thousands)
|
| |
Amortized
Cost Basis |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
State and municipal
|
| | | $ | 20,118 | | | | | $ | 272 | | | | | $ | 135 | | | | | $ | 20,255 | | |
Asset-backed securities
|
| | | | 6,512 | | | | | | — | | | | | | 141 | | | | | | 6,371 | | |
Government mortgage-backed securities
|
| | | | 25,135 | | | | | | 138 | | | | | | 496 | | | | | | 24,777 | | |
Total available-for-sale securities
|
| | | $ | 51,765 | | | | | $ | 410 | | | | | $ | 772 | | | | | $ | 51,403 | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | |
State and municipal
|
| | | $ | 20,726 | | | | | $ | 745 | | | | | $ | 17 | | | | | $ | 21,454 | | |
Asset-backed securities
|
| | | | 7,524 | | | | | | 30 | | | | | | 37 | | | | | | 7,517 | | |
Government mortgage-backed securities
|
| | | | 32,421 | | | | | | 317 | | | | | | 280 | | | | | | 32,458 | | |
Total available-for-sale securities
|
| | | $ | 60,671 | | | | | $ | 1,092 | | | | | $ | 334 | | | | | $ | 61,429 | | |
|
| | |
Available-for-Sale
|
| |||||||||
(In thousands)
|
| |
Amortized
Cost |
| |
Fair
Value |
| ||||||
Due within one year
|
| | | $ | 95 | | | | | $ | 95 | | |
Due after one year through five years
|
| | | | 604 | | | | | | 608 | | |
Due after five years through ten years
|
| | | | 2,120 | | | | | | 2,169 | | |
Due after ten years
|
| | | | 17,299 | | | | | | 17,383 | | |
Government mortgage-backed securities
|
| | | | 25,135 | | | | | | 24,777 | | |
Asset-backed securities
|
| | | | 6,512 | | | | | | 6,371 | | |
| | | | $ | 51,765 | | | | | $ | 51,403 | | |
|
| | |
Less than 12 Months
|
| |
12 Months or Longer
|
| |
Total
|
| |||||||||||||||||||||||||||
(In thousands)
|
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| ||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Temporarily impaired securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
State and municipal
|
| | | $ | 6,137 | | | | | $ | 115 | | | | | $ | 597 | | | | | $ | 20 | | | | | $ | 6,734 | | | | | $ | 135 | | |
Asset-backed securities
|
| | | | 3,833 | | | | | | 98 | | | | | | 2,538 | | | | | | 43 | | | | | | 6,371 | | | | | | 141 | | |
Government mortgage-backed securities
|
| | | | 2,864 | | | | | | 32 | | | | | | 14,152 | | | | | | 464 | | | | | | 17,016 | | | | | | 496 | | |
Total temporarily impaired securities
|
| | | $ | 12,834 | | | | | $ | 245 | | | | | $ | 17,287 | | | | | $ | 527 | | | | | $ | 30,121 | | | | | $ | 772 | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Temporarily impaired securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
State and municipal
|
| | | $ | — | | | | | $ | — | | | | | $ | 611 | | | | | $ | 17 | | | | | $ | 611 | | | | | $ | 17 | | |
Asset-backed securities
|
| | | | 1,745 | | | | | | 13 | | | | | | 1,335 | | | | | | 24 | | | | | | 3,080 | | | | | | 37 | | |
Government mortgage-backed securities
|
| | | | 5,231 | | | | | | 20 | | | | | | 13,584 | | | | | | 260 | | | | | | 18,815 | | | | | | 280 | | |
Total temporarily impaired securities
|
| | | $ | 6,976 | | | | | $ | 33 | | | | | $ | 15,530 | | | | | $ | 301 | | | | | $ | 22,506 | | | | | $ | 334 | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Commercial real estate
|
| | | $ | 364,867 | | | | | $ | 371,510 | | |
Commercial
|
| | | | 361,782 | | | | | | 240,223 | | |
Residential real estate
|
| | | | 57,361 | | | | | | 67,724 | | |
Construction and land development
|
| | | | 44,606 | | | | | | 55,828 | | |
Consumer
|
| | | | 19,815 | | | | | | 17,455 | | |
| | | | | 848,431 | | | | | | 752,740 | | |
Allowance for loan losses
|
| | | | (11,680) | | | | | | (9,757) | | |
Deferred loan fees, net
|
| | | | (1,223) | | | | | | (845) | | |
Net loans
|
| | | $ | 835,528 | | | | | $ | 742,138 | | |
|
(In thousands)
|
| |
Commercial
Real Estate |
| |
Commercial
|
| |
Residential
Real Estate |
| |
Construction
and Land Development |
| |
Consumer
|
| |
Unallocated
|
| |
Total
|
| |||||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 4,483 | | | | | $ | 3,280 | | | | | $ | 300 | | | | | $ | 965 | | | | | $ | 649 | | | | | $ | 80 | | | | | $ | 9,757 | | |
Charge-offs
|
| | | | (670) | | | | | | (190) | | | | | | — | | | | | | — | | | | | | (699) | | | | | | — | | | | | | (1,559) | | |
Recoveries
|
| | | | — | | | | | | 87 | | | | | | 2 | | | | | | — | | | | | | 64 | | | | | | — | | | | | | 153 | | |
Provision (credit)
|
| | | | 339 | | | | | | 2,565 | | | | | | (51) | | | | | | (227) | | | | | | 696 | | | | | | 7 | | | | | | 3,329 | | |
Ending balance
|
| | | $ | 4,152 | | | | | $ | 5,742 | | | | | $ | 251 | | | | | $ | 738 | | | | | $ | 710 | | | | | $ | 87 | | | | | $ | 11,680 | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 62 | | | | | $ | 1,039 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,101 | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment
|
| | | | 4,090 | | | | | | 4,703 | | | | | | 251 | | | | | | 738 | | | | | | 710 | | | | | | 87 | | | | | | 10,579 | | |
Total allowance for loan losses ending balance
|
| | | $ | 4,152 | | | | | $ | 5,742 | | | | | $ | 251 | | | | | $ | 738 | | | | | $ | 710 | | | | | $ | 87 | | | | | $ | 11,680 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 1,853 | | | | | $ | 5,291 | | | | | $ | 388 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 7,532 | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment
|
| | | | 363,014 | | | | | | 356,491 | | | | | | 56,973 | | | | | | 44,606 | | | | | | 19,815 | | | | | | | | | | | | 840,899 | | |
Total loans ending balance
|
| | | $ | 364,867 | | | | | $ | 361,782 | | | | | $ | 57,361 | | | | | $ | 44,606 | | | | | $ | 19,815 | | | | | | | | | | | $ | 848,431 | | |
|
(In thousands)
|
| |
Commercial
Real Estate |
| |
Commercial
|
| |
Residential
Real Estate |
| |
Construction
and Land Development |
| |
Consumer
|
| |
Unallocated
|
| |
Total
|
| |||||||||||||||||||||
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 4,503 | | | | | $ | 2,513 | | | | | $ | 328 | | | | | $ | 882 | | | | | $ | 279 | | | | | $ | 85 | | | | | $ | 8,590 | | |
Charge-offs
|
| | | | (1,522) | | | | | | (107) | | | | | | — | | | | | | — | | | | | | (190) | | | | | | — | | | | | | (1,819) | | |
Recoveries
|
| | | | — | | | | | | 45 | | | | | | — | | | | | | — | | | | | | 12 | | | | | | — | | | | | | 57 | | |
Provision (credit)
|
| | | | 1,502 | | | | | | 829 | | | | | | (28) | | | | | | 83 | | | | | | 548 | | | | | | (5) | | | | | | 2,929 | | |
Ending balance
|
| | | $ | 4,483 | | | | | $ | 3,280 | | | | | $ | 300 | | | | | $ | 965 | | | | | $ | 649 | | | | | $ | 80 | | | | | $ | 9,757 | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment
|
| | | | 4,483 | | | | | | 3,280 | | | | | | 300 | | | | | | 965 | | | | | | 649 | | | | | | 80 | | | | | | 9,757 | | |
Total allowance for loan losses ending balance
|
| | | $ | 4,483 | | | | | $ | 3,280 | | | | | $ | 300 | | | | | $ | 965 | | | | | $ | 649 | | | | | $ | 80 | | | | | $ | 9,757 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 8,623 | | | | | $ | 3,202 | | | | | $ | 404 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 12,229 | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment
|
| | | | 362,887 | | | | | | 237,021 | | | | | | 67,320 | | | | | | 55,828 | | | | | | 17,455 | | | | | | | | | | | | 740,511 | | |
Total loans ending balance
|
| | | $ | 371,510 | | | | | $ | 240,223 | | | | | $ | 67,724 | | | | | $ | 55,828 | | | | | $ | 17,455 | | | | | | | | | | | $ | 752,740 | | |
|
(In thousands)
|
| | |||||
Balance beginning January 1, 2017
|
| | | $ | 7,739 | | |
Effect of changes in composition of related parties
|
| | | | (85) | | |
Advances
|
| | | | 18,809 | | |
Principal payments
|
| | | | (4,190) | | |
Ending balance, December 31, 2017
|
| | | $ | 22,273 | | |
Balance beginning January 1, 2018
|
| | | $ | 22,273 | | |
Effect of changes in composition of related parties
|
| | | | (339) | | |
Advances
|
| | | | 11 | | |
Principal payments
|
| | | | (9,988) | | |
Ending balance, December 31, 2018
|
| | | $ | 11,957 | | |
|
(In thousands)
|
| |
30 – 59
Days |
| |
60 – 89
Days |
| |
90 Days
or More Past Due |
| |
Total
Past Due |
| |
Total
Current |
| |
Total
Loans |
| |
90 Days
or More Past Due and Accruing |
| |
Nonaccrual
Loans |
| ||||||||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate
|
| | | $ | 742 | | | | | $ | — | | | | | $ | 519 | | | | | $ | 1,261 | | | | | $ | 363,606 | | | | | $ | 364,867 | | | | | $ | — | | | | | $ | 519 | | |
Commercial
|
| | | | 40 | | | | | | — | | | | | | 3,167 | | | | | | 3,207 | | | | | | 358,575 | | | | | | 361,782 | | | | | | — | | | | | | 4,830 | | |
Residential real estate
|
| | | | 321 | | | | | | 223 | | | | | | 30 | | | | | | 574 | | | | | | 56,787 | | | | | | 57,361 | | | | | | — | | | | | | 850 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 44,606 | | | | | | 44,606 | | | | | | — | | | | | | — | | |
Consumer
|
| | | | 62 | | | | | | 46 | | | | | | 59 | | | | | | 167 | | | | | | 19,648 | | | | | | 19,815 | | | | | | — | | | | | | 62 | | |
Total
|
| | | $ | 1,165 | | | | | $ | 269 | | | | | $ | 3,775 | | | | | $ | 5,209 | | | | | $ | 843,222 | | | | | $ | 848,431 | | | | | $ | — | | | | | $ | 6,261 | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate
|
| | | $ | — | | | | | $ | 3,669 | | | | | $ | — | | | | | $ | 3,669 | | | | | $ | 367,841 | | | | | $ | 371,510 | | | | | $ | — | | | | | $ | 7,102 | | |
Commercial
|
| | | | 12 | | | | | | — | | | | | | — | | | | | | 12 | | | | | | 240,211 | | | | | | 240,223 | | | | | | — | | | | | | 1,505 | | |
Residential real estate
|
| | | | 699 | | | | | | 178 | | | | | | 81 | | | | | | 958 | | | | | | 66,766 | | | | | | 67,724 | | | | | | — | | | | | | 364 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 55,828 | | | | | | 55,828 | | | | | | — | | | | | | — | | |
Consumer
|
| | | | 63 | | | | | | 45 | | | | | | 60 | | | | | | 168 | | | | | | 17,287 | | | | | | 17,455 | | | | | | — | | | | | | 62 | | |
Total
|
| | | $ | 774 | | | | | $ | 3,892 | | | | | $ | 141 | | | | | $ | 4,807 | | | | | $ | 747,933 | | | | | $ | 752,740 | | | | | $ | — | | | | | $ | 9,033 | | |
|
(In thousands)
|
| |
Recorded
Investment |
| |
Unpaid
Principal Balance |
| |
Related
Allowance |
| |
Average
Recorded Investment |
| |
Interest
Income Recognized |
| |||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate
|
| | | $ | 1,334 | | | | | $ | 1,334 | | | | | $ | — | | | | | $ | 5,614 | | | | | $ | 69 | | |
Commercial
|
| | | | 4,050 | | | | | | 4,110 | | | | | | — | | | | | | 4,894 | | | | | | 38 | | |
Residential real estate
|
| | | | 388 | | | | | | 388 | | | | | | — | | | | | | 396 | | | | | | 20 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired with no related allowance
|
| | | $ | 5,772 | | | | | $ | 5,832 | | | | | $ | — | | | | | $ | 10,904 | | | | | $ | 127 | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate
|
| | | $ | 519 | | | | | $ | 519 | | | | | $ | 62 | | | | | $ | 519 | | | | | $ | — | | |
Commercial
|
| | | | 1,241 | | | | | | 1,267 | | | | | | 1,039 | | | | | | 1,695 | | | | | | 52 | | |
Residential real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired with an allowance recorded
|
| | | $ | 1,760 | | | | | $ | 1,786 | | | | | $ | 1,101 | | | | | $ | 2,214 | | | | | $ | 52 | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate
|
| | | $ | 1,853 | | | | | $ | 1,853 | | | | | $ | 62 | | | | | $ | 6,133 | | | | | $ | 69 | | |
Commercial
|
| | | | 5,291 | | | | | | 5,377 | | | | | | 1,039 | | | | | | 6,589 | | | | | | 90 | | |
Residential real estate
|
| | | | 388 | | | | | | 388 | | | | | | — | | | | | | 396 | | | | | | 20 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired loans
|
| | | $ | 7,532 | | | | | $ | 7,618 | | | | | $ | 1,101 | | | | | $ | 13,118 | | | | | $ | 179 | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate
|
| | | $ | 8,623 | | | | | $ | 10,139 | | | | | $ | — | | | | | $ | 4,562 | | | | | $ | 70 | | |
Commercial
|
| | | | 3,202 | | | | | | 3,202 | | | | | | — | | | | | | 2,054 | | | | | | 123 | | |
Residential real estate
|
| | | | 404 | | | | | | 404 | | | | | | — | | | | | | 412 | | | | | | 20 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired with no related allowance
|
| | | $ | 12,229 | | | | | $ | 13,745 | | | | | $ | — | | | | | $ | 7,028 | | | | | $ | 213 | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Commercial
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired with an allowance recorded
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate
|
| | | $ | 8,623 | | | | | $ | 10,139 | | | | | $ | — | | | | | $ | 4,562 | | | | | $ | 70 | | |
Commercial
|
| | | | 3,202 | | | | | | 3,202 | | | | | | — | | | | | | 2,054 | | | | | | 123 | | |
Residential real estate
|
| | | | 404 | | | | | | 404 | | | | | | — | | | | | | 412 | | | | | | 20 | | |
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired loans
|
| | | $ | 12,229 | | | | | $ | 13,745 | | | | | $ | — | | | | | $ | 7,028 | | | | | $ | 213 | | |
|
(Dollars in thousands)
|
| |
Number of
Contracts |
| |
Pre-Modification
Outstanding Recorded Investment |
| |
Post-Modification
Outstanding Recorded Investment |
| |||||||||
Year-Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | |
Troubled debt restructurings: | | | | | | | | | | | | | | | | | | | |
Commercial
|
| | | | 1 | | | | | $ | 249 | | | | | $ | 249 | | |
| | | | | 1 | | | | | $ | 249 | | | | | $ | 249 | | |
|
(In thousands)
|
| |
Commercial
Real Estate |
| |
Commercial
|
| |
Residential
Real Estate |
| |
Construction
and Land Development |
| |
Consumer
|
| |
Total
|
| ||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass
|
| | | $ | 356,415 | | | | | $ | 339,079 | | | | | $ | — | | | | | $ | 44,606 | | | | | $ | — | | | | | $ | 740,100 | | |
Special mention
|
| | | | 6,531 | | | | | | 11,339 | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,870 | | |
Substandard
|
| | | | 1,921 | | | | | | 10,447 | | | | | | 571 | | | | | | — | | | | | | — | | | | | | 12,939 | | |
Doubtful
|
| | | | — | | | | | | 917 | | | | | | — | | | | | | — | | | | | | — | | | | | | 917 | | |
Not formally rated
|
| | | | — | | | | | | — | | | | | | 56,790 | | | | | | — | | | | | | 19,815 | | | | | | 76,605 | | |
Total
|
| | | $ | 364,867 | | | | | $ | 361,782 | | | | | $ | 57,361 | | | | | $ | 44,606 | | | | | $ | 19,815 | | | | | $ | 848,431 | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass
|
| | | $ | 355,623 | | | | | $ | 224,190 | | | | | $ | — | | | | | $ | 55,828 | | | | | $ | — | | | | | $ | 635,641 | | |
Special mention
|
| | | | 6,852 | | | | | | 9,155 | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,007 | | |
Substandard
|
| | | | 9,035 | | | | | | 6,878 | | | | | | 679 | | | | | | — | | | | | | — | | | | | | 16,592 | | |
Not formally rated
|
| | | | — | | | | | | — | | | | | | 67,045 | | | | | | — | | | | | | 17,455 | | | | | | 84,500 | | |
Total
|
| | | $ | 371,510 | | | | | $ | 240,223 | | | | | $ | 67,724 | | | | | $ | 55,828 | | | | | $ | 17,455 | | | | | $ | 752,740 | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Land
|
| | | $ | 2,424 | | | | | $ | 2,424 | | |
Buildings and leasehold improvements
|
| | | | 9,241 | | | | | | 9,241 | | |
Furniture and equipment
|
| | | | 4,520 | | | | | | 4,649 | | |
Leasehold improvements
|
| | | | 4,234 | | | | | | 4,241 | | |
Construction in progress
|
| | | | 5,748 | | | | | | — | | |
| | | | | 26,167 | | | | | | 20,555 | | |
Accumulated depreciation and amortization
|
| | | | (10,081) | | | | | | (9,574) | | |
Premises and equipment, net
|
| | | $ | 16,086 | | | | | $ | 10,981 | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
NOW and demand
|
| | | $ | 332,064 | | | | | $ | 309,514 | | |
Regular savings
|
| | | | 109,322 | | | | | | 112,610 | | |
Money market deposits
|
| | | | 229,314 | | | | | | 225,735 | | |
Total non-certificate accounts
|
| | | | 670,700 | | | | | | 647,859 | | |
Certificate accounts of $250,000 or more
|
| | | | 14,164 | | | | | | 5,061 | | |
Certificate accounts less than $250,000
|
| | | | 83,232 | | | | | | 97,137 | | |
Total certificate accounts
|
| | | | 97,396 | | | | | | 102,198 | | |
Total deposits
|
| | | $ | 768,096 | | | | | $ | 750,057 | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
2018
|
| | | $ | — | | | | | $ | 81,791 | | |
2019
|
| | | | 55,061 | | | | | | 16,105 | | |
2020
|
| | | | 32,089 | | | | | | 3,052 | | |
2021
|
| | | | 8,938 | | | | | | 410 | | |
2022
|
| | | | 794 | | | | | | 840 | | |
2023
|
| | | | 514 | | | | | | — | | |
Total
|
| | | $ | 97,396 | | | | | $ | 102,198 | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
2018
|
| | | $ | — | | | | | $ | 12,000 | | |
2019
|
| | | | 43,071 | | | | | | 4,936 | | |
2020
|
| | | | 11,451 | | | | | | 6,405 | | |
2021
|
| | | | 5,000 | | | | | | — | | |
2023
|
| | | | 8,500 | | | | | | — | | |
Thereafter
|
| | | | — | | | | | | 3,500 | | |
Total
|
| | | $ | 68,022 | | | | | $ | 26,841 | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Current tax expense (benefit): | | | | | | | | | | | | | |
Federal
|
| | | $ | 3,214 | | | | | $ | 5,044 | | |
State
|
| | | | 1,278 | | | | | | 1,079 | | |
Net operating loss carryforward
|
| | | | (14) | | | | | | (14) | | |
| | | | | 4,478 | | | | | | 6,109 | | |
Deferred tax expense (benefit): | | | | | | | | | | | | | |
Federal
|
| | | | (926) | | | | | | 1,523 | | |
State
|
| | | | (315) | | | | | | (214) | | |
| | | | | (1,241) | | | | | | 1,309 | | |
Income tax expense
|
| | | $ | 3,237 | | | | | $ | 7,418 | | |
|
| | |
2018
|
| |
2017
|
| ||||||
Federal income tax at statutory rate
|
| | | | 21.0% | | | | | | 34.0% | | |
Increase (decrease) in tax resulting from: | | | | | | | | | | | | | |
State tax, net of federal tax benefit
|
| | | | 5.7 | | | | | | 4.6 | | |
Tax exempt income and dividends received deduction
|
| | | | (1.0) | | | | | | (3.3) | | |
Change in enacted federal tax rate
|
| | | | — | | | | | | 13.4 | | |
Other
|
| | | | 0.1 | | | | | | (0.3) | | |
Effective tax rate
|
| | | | 25.8% | | | | | | 48.4% | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Allowance for loan losses
|
| | | $ | 3,251 | | | | | $ | 2,743 | | |
Depreciation
|
| | | | 160 | | | | | | 41 | | |
Net operating loss carryforward
|
| | | | 16 | | | | | | 25 | | |
Employee benefit plans and share-based compensation plans
|
| | | | 2,498 | | | | | | 1,979 | | |
Deferred loan fees, net
|
| | | | 339 | | | | | | 238 | | |
Reserve for unfunded commitments
|
| | | | 31 | | | | | | 39 | | |
Net unrealized loss on securities
|
| | | | 107 | | | | | | — | | |
Other
|
| | | | 109 | | | | | | 140 | | |
Gross deferred tax assets
|
| | | | 6,511 | | | | | | 5,205 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Prepaid expenses
|
| | | | (45) | | | | | | (64) | | |
FHLB restructure fees
|
| | | | (29) | | | | | | (52) | | |
Net unrealized holding gain on securities
|
| | | | — | | | | | | (169) | | |
Gross deferred tax liabilities
|
| | | | (74) | | | | | | (285) | | |
Net deferred tax asset
|
| | | $ | 6,437 | | | | | $ | 4,920 | | |
|
| | |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
Allocated
|
| | | | 71,430 | | | | | | 47,620 | | |
Committed to be allocated
|
| | | | 23,810 | | | | | | 23,810 | | |
Unallocated
|
| | | | 261,912 | | | | | | 285,722 | | |
Total
|
| | | | 357,152 | | | | | | 357,152 | | |
|
| | |
2018
|
| |
2017
|
| ||||||
Vesting period (years)
|
| | | | 5 | | | | | | 5 | | |
Expiration date (years)
|
| | | | 10 | | | | | | 10 | | |
Expected volatility
|
| | | | 21.23% | | | | | | 21.53% | | |
Expected life (years)
|
| | | | 7.5 | | | | | | 7.5 | | |
Expected dividend yield
|
| | | | 0.00% | | | | | | 0.00% | | |
Risk free interest rate
|
| | | | 2.97% | | | | | | 2.25% | | |
Fair value per option
|
| | | $ | 8.71 | | | | | $ | 7.05 | | |
| | |
Stock Option
Awards |
| |
Weighted
Average Exercise Price |
| |
Weighted Average
Remaining Contractual Term (years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding at January 1, 2018
|
| | | | 396,443 | | | | | $ | 17.61 | | | | | | | | | | | | | | |
Granted
|
| | | | 12,170 | | | | | | 27.20 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (9,740) | | | | | | 17.40 | | | | | | | | | | | | | | |
Exercised
|
| | | | (2,435) | | | | | | 17.40 | | | | | | | | | | | | | | |
Outstanding at December 31, 2018
|
| | | | 396,438 | | | | | $ | 17.89 | | | | | | 8.00 | | | | | $ | 1,503,000 | | |
Outstanding and expected to vest at December 31, 2018
|
| | | | 396,438 | | | | | $ | 17.89 | | | | | | 8.00 | | | | | $ | 1,503,000 | | |
Vested and Exercisable at December 31, 2018
|
| | | | 151,272 | | | | | $ | 17.50 | | | | | | 7.90 | | | | | $ | 632,000 | | |
Unrecognized compensation cost
|
| | | $ | 1,233,000 | | | | | | | | | | | | | | | | | | | | |
Weighted average remaining recognition period (years)
|
| | | | 3.01 | | | | | | | | | | | | | | | | | | | | |
|
| | |
Number of
Shares |
| |
Weighted Average
Grant Price |
| ||||||
Unvested restricted stock awards at January 1, 2018
|
| | | | 127,852 | | | | | $ | 17.59 | | |
Granted
|
| | | | 4,862 | | | | | | 27.20 | | |
Forfeited
|
| | | | (3,896) | | | | | | 17.40 | | |
Vested
|
| | | | (30,745) | | | | | | 17.59 | | |
Unvested restricted stock awards at Decemer 31, 2018
|
| | | | 98,073 | | | | | $ | 18.13 | | |
Unrecognized compensation cost
|
| | | $ | 1,724,000 | | | | | | | | |
Weighted average remaining recognition period (years)
|
| | | | 3.01 | | | | | | | | |
|
(Dollars in thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Net income attributable to common shareholders
|
| | | $ | 9,325 | | | | | $ | 7,915 | | |
Average number of common shares outstanding
|
| | | | 9,659,357 | | | | | | 9,652,448 | | |
Less: | | | | | | | | | | | | | |
average unallocated ESOP shares
|
| | | | (283,337) | | | | | | (298,680) | | |
average unvested restricted stock
|
| | | | (106,033) | | | | | | (136,986) | | |
average treasury stock acquired
|
| | | | (29,901) | | | | | | (17,508) | | |
Average number of common shares outstanding to calculate basic earnings per common share
|
| | | | 9,240,086 | | | | | | 9,199,274 | | |
Effect of dilutive unvested restricted stock and stock option awards
|
| | | | 66,230 | | | | | | 613 | | |
Average number of common shares outstanding to calculate diluted earnings per common share
|
| | | | 9,306,316 | | | | | | 9,199,887 | | |
Earnings per common share:
|
| | | | | | | | | | | | |
Basic
|
| | | $ | 1.01 | | | | | $ | 0.86 | | |
Diluted
|
| | | $ | 1.00 | | | | | $ | 0.86 | | |
| | |
Actual Capital
|
| |
For Capital
Adequacy Purposes |
| |
To Be Well
Capitalized Under Prompt Corrective Action Provisions |
| |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| | | | | | | |
Ratio
|
| |
Amount
|
| | | | | | | |
Ratio
|
| ||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Total Capital (to Risk Weighted Assets)
|
| | | $ | 128,939 | | | | | | 14.55% | | | | | $ | 70,891 | | | | | | ≥ | | | | | | 8.0% | | | | | $ | 88,614 | | | | | | ≥ | | | | | | 10.0% | | |
Tier 1 Capital (to Risk Weighted Assets)
|
| | | | 117,855 | | | | | | 13.30 | | | | | | 53,168 | | | | | | ≥ | | | | | | 6.0 | | | | | | 70,891 | | | | | | ≥ | | | | | | 8.0 | | |
Common Equity Tier 1 Capital (to Risk Weighted Assets)
|
| | | | 117,855 | | | | | | 13.30 | | | | | | 39,876 | | | | | | ≥ | | | | | | 4.5 | | | | | | 57,599 | | | | | | ≥ | | | | | | 6.5 | | |
Tier 1 Capital (to Average Assets)
|
| | | | 117,855 | | | | | | 12.69 | | | | | | 37,157 | | | | | | ≥ | | | | | | 4.0 | | | | | | 46,446 | | | | | | ≥ | | | | | | 5.0 | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Total Capital (to Risk Weighted Assets)
|
| | | $ | 116,869 | | | | | | 14.96% | | | | | $ | 62,514 | | | | | | ≥ | | | | | | 8.0% | | | | | $ | 78,142 | | | | | | ≥ | | | | | | 10.0% | | |
Tier 1 Capital (to Risk Weighted Assets)
|
| | | | 107,112 | | | | | | 13.71 | | | | | | 46,885 | | | | | | ≥ | | | | | | 6.0 | | | | | | 62,514 | | | | | | ≥ | | | | | | 8.0 | | |
Common Equity Tier 1 Capital (to Risk Weighted Assets)
|
| | | | 107,112 | | | | | | 13.71 | | | | | | 35,164 | | | | | | ≥ | | | | | | 4.5 | | | | | | 50,792 | | | | | | ≥ | | | | | | 6.5 | | |
Tier 1 Capital (to Average Assets)
|
| | | | 107,112 | | | | | | 11.80 | | | | | | 36,299 | | | | | | ≥ | | | | | | 4.0 | | | | | | 45,374 | | | | | | ≥ | | | | | | 5.0 | | |
(In thousands)
|
| | |||||
2019
|
| | | $ | 285 | | |
2020
|
| | | | 244 | | |
2021
|
| | | | 252 | | |
2022
|
| | | | 252 | | |
2023
|
| | | | 252 | | |
Years thereafter
|
| | | | 1,908 | | |
Total minimum lease payments
|
| | | $ | 3,193 | | |
|
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Commitments to originate loans
|
| | | $ | 42,625 | | | | | $ | 18,641 | | |
Letters of credit
|
| | | | 1,546 | | | | | | 2,004 | | |
Unadvanced portions of loans
|
| | | | 196,104 | | | | | | 166,314 | | |
| | | | $ | 240,275 | | | | | $ | 186,959 | | |
|
| | |
Fair Value Measurements at Reporting Date Using
|
| |||||||||||||||||||||
(In thousands)
|
| |
Total
|
| |
Quoted Prices in
Active Markets for Identical Assets Level 1 |
| |
Significant
Other Observable Inputs Level 2 |
| |
Significant
Unobservable Inputs Level 3 |
| ||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
State and municipal
|
| | | $ | 20,255 | | | | | $ | — | | | | | $ | 20,255 | | | | | $ | — | | |
Asset-backed securities
|
| | | | 6,371 | | | | | | — | | | | | | 6,371 | | | | | | — | | |
Mortgage-backed securities
|
| | | | 24,777 | | | | | | — | | | | | | 24,777 | | | | | | — | | |
Totals
|
| | | $ | 51,403 | | | | | $ | — | | | | | $ | 51,403 | | | | | $ | — | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | |
State and municipal
|
| | | $ | 21,454 | | | | | $ | — | | | | | $ | 21,454 | | | | | $ | — | | |
Asset-backed securities
|
| | | | 7,517 | | | | | | — | | | | | | 7,517 | | | | | | — | | |
Government mortgage-backed securities
|
| | | | 32,458 | | | | | | — | | | | | | 32,458 | | | | | | — | | |
Totals
|
| | | $ | 61,429 | | | | | $ | — | | | | | $ | 61,429 | | | | | $ | — | | |
|
| | |
Fair Value Measurements at Reporting Date Using:
|
| |||||||||||||||||||||
(In thousands)
|
| |
Total
|
| |
Quoted Prices in
Active Markets for Identical Assets Level 1 |
| |
Significant
Other Observable Inputs Level 2 |
| |
Significant
Unobservable Inputs Level 3 |
| ||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans
|
| | | $ | 659 | | | | | $ | — | | | | | $ | — | | | | | $ | 659 | | |
Other real estate owned
|
| | | | 1,676 | | | | | | — | | | | | | 1,676 | | | | | | — | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans
|
| | | $ | 3,670 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,670 | | |
(In thousands)
|
| |
Fair Value
|
| |
Valuation Technique
|
| |
Unobservable Input
|
| |||
December 31, 2018 | | | | | | | | | | | | | |
Impaired loans
|
| | | $ | 659 | | | |
Real estate appraisals
and business valuation |
| |
Discount for dated appraisals
and comparable company evaluations |
|
December 31, 2017 | | | | | | | | | | | | | |
Impaired loans
|
| | | $ | 3,670 | | | |
Real estate appraisals
|
| |
Discount for dated appraisals
|
|
| | |
Carrying
Amount |
| |
Fair Value
|
| ||||||||||||||||||||||||
(In thousands)
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 28,613 | | | | | $ | 28,613 | | | | | $ | — | | | | | $ | — | | | | | $ | 28,613 | | |
Available-for-sale securities
|
| | | | 51,403 | | | | | | — | | | | | | 51,403 | | | | | | — | | | | | | 51,403 | | |
Federal Home Loan Bank of Boston stock
|
| | | | 2,650 | | | | | | 2,650 | | | | | | — | | | | | | — | | | | | | 2,650 | | |
Loans, net
|
| | | | 835,528 | | | | | | — | | | | | | — | | | | | | 827,090 | | | | | | 827,090 | | |
Accrued interest receivable
|
| | | | 2,638 | | | | | | — | | | | | | 2,638 | | | | | | — | | | | | | 2,638 | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | | 768,096 | | | | | | — | | | | | | — | | | | | | 768,010 | | | | | | 768,010 | | |
Borrowings
|
| | | | 68,022 | | | | | | — | | | | | | 67,846 | | | | | | — | | | | | | 67,846 | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 47,689 | | | | | $ | 47,689 | | | | | $ | — | | | | | $ | — | | | | | $ | 47,689 | | |
Available-for-sale securities
|
| | | | 61,429 | | | | | | — | | | | | | 61,429 | | | | | | — | | | | | | 61,429 | | |
Federal Home Loan Bank of Boston stock
|
| | | | 1,854 | | | | | | 1,854 | | | | | | — | | | | | | — | | | | | | 1,854 | | |
Loans, net
|
| | | | 742,138 | | | | | | — | | | | | | — | | | | | | 745,637 | | | | | | 745,637 | | |
Accrued interest receivable
|
| | | | 2,345 | | | | | | — | | | | | | 2,345 | | | | | | — | | | | | | 2,345 | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | | 750,057 | | | | | | — | | | | | | — | | | | | | 749,898 | | | | | | 749,898 | | |
Borrowings
|
| | | | 26,841 | | | | | | — | | | | | | 26,655 | | | | | | — | | | | | | 26,655 | | |
Provident Bancorp, Inc. — Parent Only Balance Sheet
|
| | | ||||||||||
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Assets | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 5,249 | | | | | $ | 5,224 | | |
Investment in common stock of The Provident Bank
|
| | | | 117,615 | | | | | | 107,629 | | |
Other assets
|
| | | | 2,755 | | | | | | 2,946 | | |
Total assets
|
| | | $ | 125,619 | | | | | $ | 115,799 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 35 | | | | | $ | 22 | | |
Shareholders’ equity
|
| | | | 125,584 | | | | | | 115,777 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 125,619 | | | | | $ | 115,799 | | |
|
Provident Bancorp, Inc. — Parent Only Income Statement
|
| | | ||||||||||
| | |
Years Ended
December 31, |
| |||||||||
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Total income
|
| | | $ | 140 | | | | | $ | 120 | | |
Operating expenses
|
| | | | 90 | | | | | | 88 | | |
Income before income taxes and equity in undistributed net income of The Provident Bank
|
| | | | 50 | | | | | | 32 | | |
Applicable income tax provision
|
| | | | 14 | | | | | | 13 | | |
Income before equity in income of subsidiaries
|
| | | | 36 | | | | | | 19 | | |
Equity in undistributed net income of The Provident Bank
|
| | | | 9,289 | | | | | | 7,896 | | |
Net income
|
| | | $ | 9,325 | | | | | $ | 7,915 | | |
|
Provident Bancorp, Inc. — Parent Only Statement of Cash Flows
|
| | | ||||||||||
| | |
Twelve Months Ended
December 31, |
| |||||||||
(In thousands)
|
| |
2018
|
| |
2017
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 9,325 | | | | | $ | 7,915 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Equity in undistributed earnings of subsidiaries
|
| | | | (9,289) | | | | | | (7,896) | | |
Decrease in other assets
|
| | | | 191 | | | | | | 191 | | |
Increase (decrease) in other liabilities
|
| | | | 13 | | | | | | (51) | | |
Net cash provided by operating activities
|
| | | | 240 | | | | | | 159 | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Purchase of treasury stock
|
| | | | (215) | | | | | | (594) | | |
Net cash used in financing activities
|
| | | | (215) | | | | | | (594) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 25 | | | | | | (435) | | |
Cash and cash equivalents at beginning of year
|
| | | | 5,224 | | | | | | 5,659 | | |
Cash and cash equivalents at end of year
|
| | | $ | 5,249 | | | | | $ | 5,224 | | |
|
| | |
First Quarter
|
| |
Second Quarter
|
| |
Third Quarter
|
| |
Fourth Quarter
|
| ||||||||||||||||||||||||||||||||||||
(In thousands)
|
| |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||||||||||||||
Interest and dividend income
|
| | | $ | 9,753 | | | | | $ | 8,112 | | | | | $ | 10,377 | | | | | $ | 8,816 | | | | | $ | 10,833 | | | | | $ | 9,239 | | | | | $ | 11,377 | | | | | $ | 9,615 | | |
Interest expense
|
| | | | 1,034 | | | | | | 781 | | | | | | 1,213 | | | | | | 879 | | | | | | 1,429 | | | | | | 1,005 | | | | | | 1,537 | | | | | | 1,062 | | |
Net interest and dividend income
|
| | | | 8,719 | | | | | | 7,331 | | | | | | 9,164 | | | | | | 7,937 | | | | | | 9,404 | | | | | | 8,234 | | | | | | 9,840 | | | | | | 8,553 | | |
Provision for loan losses
|
| | | | 656 | | | | | | 563 | | | | | | 638 | | | | | | 892 | | | | | | 1,421 | | | | | | 1,012 | | | | | | 614 | | | | | | 462 | | |
Gain on sale of securities, net
|
| | | | — | | | | | | 482 | | | | | | — | | | | | | 58 | | | | | | — | | | | | | 1,851 | | | | | | — | | | | | | 3,521 | | |
Other income
|
| | | | 1,013 | | | | | | 1,020 | | | | | | 1,118 | | | | | | 1,012 | | | | | | 1,059 | | | | | | 1,046 | | | | | | 988 | | | | | | 966 | | |
Total noninterest income
|
| | | | 1,013 | | | | | | 1,502 | | | | | | 1,118 | | | | | | 1,070 | | | | | | 1,059 | | | | | | 2,897 | | | | | | 988 | | | | | | 4,487 | | |
Total noninterest expense
|
| | | | 6,376 | | | | | | 5,621 | | | | | | 6,411 | | | | | | 5,875 | | | | | | 6,223 | | | | | | 5,914 | | | | | | 6,404 | | | | | | 6,339 | | |
Income tax expense
|
| | | | 678 | | | | | | 847 | | | | | | 843 | | | | | | 639 | | | | | | 741 | | | | | | 1,434 | | | | | | 975 | | | | | | 4,498 | | |
Net income
|
| | | $ | 2,022 | | | | | $ | 1,802 | | | | | $ | 2,390 | | | | | $ | 1,601 | | | | | $ | 2,078 | | | | | $ | 2,771 | | | | | $ | 2,835 | | | | | $ | 1,741 | | |
Income per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.22 | | | | | $ | 0.16 | | | | | $ | 0.26 | | | | | $ | 0.15 | | | | | $ | 0.22 | | | | | $ | 0.19 | | | | | $ | 0.31 | | | | | $ | 0.19 | | |
Diluted
|
| | | $ | 0.22 | | | | | $ | 0.16 | | | | | $ | 0.26 | | | | | $ | 0.15 | | | | | $ | 0.22 | | | | | $ | 0.19 | | | | | $ | 0.30 | | | | | $ | 0.19 | | |
Weighted Average Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 9,219,865 | | | | | | 9,192,568 | | | | | | 9,233,745 | | | | | | 9,193,836 | | | | | | 9,247,367 | | | | | | 9,201,634 | | | | | | 9,258,858 | | | | | | 9,208,854 | | |
Diluted
|
| | | | 9,225,003 | | | | | | 9,192,568 | | | | | | 9,302,425 | | | | | | 9,198,286 | | | | | | 9,355,410 | | | | | | 9,213,056 | | | | | | 9,339,431 | | | | | | 9,257,702 | | |
| /s/ Whittlesey PC | |
| Hartford, Connecticut March 14, 2019 |
|
| Date: March 14, 2019 | | |
/s/ David P. Mansfield
David P. Mansfield
President and Chief Executive Officer |
|
| Date: March 14, 2019 | | |
/s/ Carol L. Houle
Carol L. Houle
Executive Vice President and Chief Financial Officer |
|
| Date: March 14, 2019 | | |
/s/ David P. Mansfield
David P. Mansfield
President and Chief Executive Officer |
|
| Date: March 14, 2019 | | |
/s/ Carol L. Houle
Carol L. Houle
Executive Vice President and Chief Financial Officer |
|
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Mar. 04, 2019 |
Jun. 30, 2018 |
|
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Provident Bancorp, Inc. | ||
Entity Central Index Key | 0001635840 | ||
Trading Symbol | pvbc | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 9,625,719 | ||
Entity Public Float | $ 100.6 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 9,662,181 | 9,657,319 |
Common stock, shares outstanding | 9,625,719 | 9,628,496 |
Treasury stock, shares | 36,462 | 28,823 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 9,325 | $ 7,915 |
Other comprehensive loss: | ||
Unrealized holding (losses) gains | (1,120) | 2,466 |
Reclassification adjustment for realized gains in net income | (5,912) | |
Unrealized losses | (1,120) | (3,446) |
Income tax effect | 276 | 1,413 |
Other comprehensive loss, net of tax | (844) | (2,033) |
Total comprehensive income | $ 8,481 | $ 5,882 |
NATURE OF OPERATIONS |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 — NATURE OF OPERATIONS
Provident Bancorp, Inc. (the “Company”) is a Massachusetts-chartered corporation organized for the purpose of owning all of the outstanding capital stock of The Provident Bank (the “Bank”). Provident Bancorp, the Company’s mutual holding company (the “MHC”), owns approximately 52.3% of the Company’s stock.
The Company is headquartered in Amesbury, Massachusetts. The Bank operates its business from eight banking offices located in Amesbury and Newburyport, Massachusetts and Portsmouth, Exeter, Hampton, Bedford, and Seabrook, New Hampshire. The Bank provides a variety of financial services to individuals and small businesses. Its primary deposit products are checking, savings and term certificate accounts and its primary lending products are commercial mortgages and commercial loans.
|
ACCOUNTING POLICIES |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | NOTE 2 — ACCOUNTING POLICIES
The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and predominant practices within the banking industry. The consolidated financial statements were prepared using the accrual basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, stock-based compensation expense and deferred income taxes.
Basis of Presentation
The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All material intercompany balances and transactions have been eliminated in consolidation.
Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks, and short-term investments comprised of interest-bearing demand deposits with other banks and federal funds sold.
Investment Securities
Investments in debt securities are adjusted for amortization of premiums and accretion of discounts so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis and are recorded as of the trade date.
Debt and equity securities may be classified into one of three categories: held-to-maturity, available-for-sale or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities must be classified as available-for-sale.
• Held-to-maturity securities, if any, are measured at amortized cost in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings or as a separate component of shareholders’ equity.
• Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, but are reported as a net amount (less expected tax) as a separate component of shareholders’ equity until realized.
• Trading securities, if any, are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings.
The Company evaluates securities within the Company’s available for sale portfolio for other-than-temporary impairment (“OTTI”), at least quarterly. If the fair value of a debt security is below the amortized cost basis of the security, OTTI is required to be recognized if any of the following are met: (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes.
Federal Home Loan Bank Stock
As a member of the Federal Home Loan Bank of Boston (the “FHLB”), the Company is required to invest in $100 par value stock of the FHLB. The FHLB capital structure mandates that members own stock as determined by their Total Stock Investment Requirement which is the sum of a member’s Membership Stock Investment Requirement and Activity-Based Stock Investment Requirement. FHLB stock is a non-marketable equity security that is carried at cost and evaluated for impairment when deemed necessary.
Loans
Loan receivables that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for amounts due to borrowers on unadvanced loans, any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans.
Interest income is accrued on the unpaid principal balance.
Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is recognized as an adjustment of the related loan yield using the interest method. The Company is amortizing these amounts over the contractual life of the related loans.
Residential real estate loans are generally placed on non-accrual status when reaching 90 days past due or in process of collection. Past due status is based on the contractual terms of the loan. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on non-accrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged-off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Interest income received on non-accrual loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual.
Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered.
Allowance for Loan Losses
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibality of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses is allocated to loan types using both a formula-based approach (general component) and an analysis of certain individual loans for impairment (allocated component).
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures.
The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction and land development, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. These historical loss factors are adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions.
The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:
Commercial real estate: Loans in this segment are primarily income-producing properties throughout Massachusetts and New Hampshire. The underlying cash flows generated by the properties can be adversely impacted by a downturn in the economy resulting in increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management periodically obtains rent rolls and continually monitors the cash flows and collateral value of these loans.
Commercial: 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, will have an effect on the credit quality in this segment.
Residential real estate: The Company generally does not originate loans with a loan-to-value ratio greater than 80% and does not grant subprime loans. Loans with loan to value ratios greater than 80% require the purchase of private mortgage insurance. 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 and value of collateral. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.
Construction and land development: Loans in this segment primarily include speculative and pre-sold real estate development loans for which payment is derived from sale of the property and construction to permanent loans for which payment is derived from cash flows of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.
Consumer: Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower.
The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan.
The Company from time to time, may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modified loan is considered a troubled debt restructuring (“TDR”). All TDRs are initially classified as impaired.
An unallocated component can be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.
Assets Held-for-Sale
Assets held-for-sale represented a commercial property being held for sale to a real estate developer. Assets designated as held for sale were held at the lower of carrying amount at designation or fair value less costs to sell. Depreciation is not charged against assets classified as held for sale. In 2018, the Company decided to retain this property for use and reclassified the property to premises and equipment.
Bank-Owned Life Insurance
Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are not subject to income taxes.
Premises and Equipment
Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Generally, depreciation on the buildings and equipment is calculated principally on the straight line method, and depreciation and amortization expense is charged against operations over the estimated useful lives of the related assets.
Other Real Estate Owned and Repossessed Assets
Assets acquired through, or in lieu of, loan foreclosure or repossession are held for sale and are initially recorded at the lower of the investment in the loan or fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. Subsequently, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations, changes in the valuation allowance, any direct write-downs and gains or losses on sales are included in other real estate owned expense.
Advertising
The Company directly expenses costs associated with advertising as they are incurred.
Earnings per Share
Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.
Employee Stock Ownership Plan
Compensation expense for The Provident Bank Employee Stock Ownership Plan (the “ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity on the consolidated balance sheets. The difference between the average fair value and the cost of the shares by the ESOP is recorded as an adjustment to additional paid-in-capital.
Stock-based Compensation Plans
The Company measures and recognizes compensation cost relating to stock-based payment transactions based on the grant-date fair value of the equity instruments issued. Stock-based compensation is recognized over the period the employee is required to provide services for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. The fair value of restricted stock is recorded based on the grant date value of the equity instrument issued.
Treasury Stock
Common stock repurchased are recorded as treasury stock at cost.
Income Taxes
The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized.
The Company examines its significant income tax positions annually to determine whether a tax benefit is more likely than not to be sustained upon examination by tax authorities.
Fair Values of Financial Instruments
GAAP requires that the Company disclose estimated fair values for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows:
Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate fair values.
Investments: Fair values for investments are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or pricing models. See footnote 15 for further details.
Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. In connection with the adoption of ASU 2016-01 on January 1, 2018, the Company refined its methodology to estimate the fair value of the loan portfolio using an exit price notion resulting in prior periods no longer being comparable. The exit price notion requires determination of the price at which willing market participants would transact at the measurement date under current market conditions.
Accrued interest receivable: The carrying amount of accrued interest receivable approximates its fair value.
Deposit liabilities: The fair values disclosed for deposits (e.g., interest and non-interest checking, passbook savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.
Borrowings: Fair values of Federal Reserve Bank (“FRB”) Discount Window and Federal Home Loan Bank advances are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements.
Off-balance sheet instruments: The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portions of loans, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date.
Recent Accounting Pronouncements
ASU (Accounting Standards Update) No. 2014-09 — Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in ASC 605. This ASU requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment includes a five-step process to assist an entity in achieving the main principle(s) of revenue recognition under ASC 605. In March 2016, the FASB also issued ASU 2016-08, an amendment to the guidance in ASU 2014-09, which reframed the structure of the indicators of when an entity is acting as an agent and focused on evidence that an entity is acting as the principal or agent in a revenue transaction. ASU 2016-08 also eliminated two of the indicators (the entity’s consideration is in the form of a commission, and the entity is not exposed to credit risk) in making that determination. This amendment also clarifies that each indicator may be more or less relevant to the assessment depending on the terms and conditions of the contract. In May 2016, the FASB issued ASU 2016-12, an amendment to ASU 2014-09, which provided practical expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on transition, collectability, non-cash consideration and presentation of sales and other similar taxes. The amendments, collectively, should be applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption (modified retrospective approach).
This ASU was effective for the Company on January 1, 2018. Because the ASU does not apply to revenue associated with leases and financial instruments (including loans and securities), the Company concluded that the new guidance did not impact the elements of its consolidated statements of income most closely associated with leases and financial instruments (such as interest income, interest expense and securities gains). The Company completed its identification of all revenue streams included in its financial statements and has identified its deposit-related fees, service charges, debit and prepaid card interchange income and other fee income to be within the scope of the standard. The Company has also completed its review of the related contracts. The Company’s overall assessment indicates that adoption of this ASU did not materially change its current method and timing of recognizing revenue for the identified revenue streams and therefore, the adoption of this ASU as of January 1, 2018, did not have a significant impact to the Company’s financial condition, results of operations and consolidated financial statements.
ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” The ASU has been issued to improve the recognition and measurement of financial instruments by requiring 1) equity investments (except those accounted for under the equity method of accounting, those without readily determinable fair values, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; 3) the use of the exit price notion when measuring fair value of financial instruments for disclosure purposes; and 4) separate presentation by the reporting organization in other comprehensive income for the portion of the total change in the fair value of a liability resulting from the change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The standard was effective for the Company on January 1, 2018. The Company evaluated the impact of this pronouncement and divested its entire marketable equity securities portfolio in 2017. The Company’s investment in Federal Home Loan Bank Stock is not included in the scope of this pronouncement. Upon adoption, the fair value of the Company’s loan portfolio is now presented using an exit price method. Also, the Company is no longer required to disclose the methodologies used for estimating fair value of financial assets and liabilities that are not measured at fair value on a recurring or nonrecurring basis. The remaining requirements of this update did not have a material impact on the Company’s consolidated financial statements.
ASU 2016-02, Leases (Topic 842). The amendments in this update require lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases. Accounting by lessors will remain largely unchanged. The guidance is effective for the Company on January 1, 2019, with early adoption permitted. In July 2018, the FASB issued 2018-11, which allows a modified retrospective transition where the lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented or as a cumulative effect adjustment as of the date of adoption. The Company’s assets and liabilities will increase based on the present value of the remaining lease payments in place the adoption date; however, this is not expected to be material to the Company’s results of operations or financial position. The Company adopted ASU 2016-02 on January 1, 2019 as a cumulative effect adjustment as of that date, and there was no material impact on the Company’s consolidated financial statements.
ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” The ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. The amendments in this update will be effective for the Company on January 1, 2020. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact of its pending adoption of this guidance on the Company’s financial statements.
ASU No. 2016-15, Statement of Cash Flows (Topic 230): “Classification of Certain Cash Receipts and Cash Payments.” This ASU changes how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. The amendments address the classification of the following eight items in the statement of cash flows: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the Predominance Principle. The amendments in this update were effective for the Company on January 1, 2018. As the guidance only affects the classification within the statement of cash flows, the adoption of this guidance did not have an impact on the Company’s financial statements.
ASU No. 2017-08, Receivables — Nonrefundable Fees and Other Costs (subtopic 310-20): “Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments are effective for the Company on January 1, 2019. The Company adopted this guidance on January 1, 2019 and there was no impact on the Company’s financial statements.
ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU will be effective for the Company on January 1, 2020. As the guidance only revises disclosure requirements, the adoption of this guidance is not expected to have a material impact on the Company’s financial statements.
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INVESTMENTS SECURITIES AVAILABLE-FOR-SALE |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS SECURITIES AVAILABLE-FOR-SALE | NOTE 3 — INVESTMENTS SECURITIES AVAILABLE-FOR-SALE
The following summarizes the amortized cost of investment securities classified as available-for-sale and their approximate fair values at December 31, 2018 and 2017:
The scheduled maturities of debt securities were as follows at December 31, 2018. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary.
There were no realized gains or losses on sales and calls during the year ended December 31, 2018. During the year ended December 31, 2017, gross realized gains on sales and calls were $6.4 million, and gross losses realized were $505,000.
There were no securities of issuers whose aggregate carrying amount exceeded 10% of equity at December 31, 2018.
Securities with carrying amounts of $31.1 million and $39.8 million were pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank at December 31, 2018 and 2017, respectively.
The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized-loss position for less than twelve months and for twelve months or more, and are temporarily impaired, are as follows at December 31, 2018 and 2017:
Government mortgage-backed securities, state and municipal securities and asset-backed securities: Because the decline in fair value of the government mortgage-backed securities, asset-backed securities and state and municipal securities is primarily attributable to changes in market interest rates and not credit quality, and because the Company has the intent and ability to hold these investments until market price recovery or maturity, these investments are not considered other-than-temporarily impaired.
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LOANS |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS | NOTE 4 — LOANS
Loans consisted of the following at December 31, 2018 and 2017:
The following tables set forth information regarding the allowance for loans and impaired loans by portfolio segment as of and for the years ended December 31, 2018 and 2017:
At December 31, 2018 and 2017, loans with an aggregate principal balance of $393.8 million and $357.1 million, respectively, were pledged to secure possible borrowings from the Federal Reserve Bank.
Certain directors and executive officers of the Company and companies in which they have significant ownership interests were customers of the Bank during 2018. The following is a summary of the loans to such persons and their companies at December 31, 2018 and 2017:
The following tables set forth information regarding non-accrual loans and past-due loans by portfolio segment at December 31, 2018 and 2017:
Information about the Company’s impaired loans by portfolio segment was as follows at December 31, 2018 and 2017:
There were no troubled debt restructurings entered into during the year ended December 31, 2018.
The following summarizes troubled debt restructurings entered into during the year ended December 31, 2017:
In 2017, we approved one troubled debt restructure totaling $249,000, with no specific reserve required based on an analysis of the borrower’s collateral coverage. The term of this commercial loan was extended to a three-year term.
The loan modified as troubled debt restructuring during 2017 did not default during the one-year period after modification.
At December 31, 2018 and 2017, there were no commitments to lend additional funds to borrowers whose loans were modified in troubled debt restructurings.
Credit Quality Information
The Company utilizes a seven grade internal loan rating system for commercial real estate, construction and land development, and commercial loans as follows:
Loans rated 1 – 3: Loans in these categories are considered “pass” rated loans with low to average risk.
Loans rated 4: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.
Loans rated 5: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is 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: Loans in this category are considered “doubtful.” Loans classified as doubtful 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: Loans in this category 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 land development, and commercial loans.
For residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and rates such loans as pass. Subsequent risk rating downgrades are based upon the borrower’s payment activity. All other residential and consumer loans are not formally rated.
The following tables present the Company’s loans by risk rating and portfolio segment at December 31, 2018 and 2017:
In 2017, the Bank had sold mortgage loans with servicing rights retained. The fair value of those servicing rights under GAAP was not material and was not recognized in the 2017 consolidated financial statements. In 2018, the Bank sold the servicing portfolio totaling $294,000.
Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $18.8 million and $15.6 million at December 31, 2018 and 2017, respectively.
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PREMISES AND EQUIPMENT |
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PREMISES AND EQUIPMENT | NOTE 5 — PREMISES AND EQUIPMENT
The following is a summary of premises and equipment at December 31, 2018 and 2017:
Depreciation and amortization expense was $721,000 and $811,000 for the years ended December 31, 2018 and 2017, respectively.
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DEPOSITS |
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DEPOSITS | NOTE 6 — DEPOSITS
The following is a summary of deposit balances by type at December 31, 2018 and 2017:
At December 31, 2018 and 2017, the aggregate amount of brokered certificates of deposit was $55.8 million and $62.3 million respectively. Brokered certificates of deposit are not included in the totals for time deposits in denominations over $250,000 listed above.
At December 31, 2018 and 2017, the scheduled maturities for certificate accounts for each of the following five years are as follows:
Deposits from related parties held by the Company at December 31, 2018 and 2017 amounted to $7.4 million and $16.0 million, respectively.
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BORROWINGS |
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Advances from Federal Home Loan Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BORROWINGS | NOTE 7 — BORROWINGS
Advances consist of funds borrowed from the FHLB and the FRB borrower-in-custody (“BIC”) program. Maturities of advances from the FHLB and FRB for years ending after December 31, 2018 and 2017 are summarized as follows:
Borrowings from the FRB BIC program are secured by a Uniform Commercial Code (“UCC”) financing statement on qualified collateral, consisting of certain commercial loans and qualified mortgage-backed government securities. At December 31, 2018, FRB borrowings consisted of overnight borrowings totaling $8.1 million and had an interest rate of 3.00%.
Borrowings from the FHLB, which aggregated $59,922 and $26,841 at December 31, 2018 and 2017, respectively, are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one to four family properties, certain commercial loans and qualified mortgage-backed government securities. At December 31, 2018, the interest rates on FHLB advances ranged from 1.53% to 3.01%, and the weighted average interest rate on FHLB advances was 2.52%.
The Bank modified $5.0 million and $3.5 million of its FHLB borrowings and extended the maturity in May of 2017 and August of 2015, respectively. The Bank incurred a prepayment penalty of $87,000 and $233,000 in May of 2017 and August of 2015, respectively. In accordance with ASC 470, the prepayment penalties are being amortized over the life of the newly modified borrowings.
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INCOME TAXES | NOTE 8 — INCOME TAXES
The components of income tax expense are as follows for the years ended December 31, 2018 and 2017:
The following is a summary of the differences between the statutory federal income tax rate and the effective tax rates for the years ended December 31, 2018 and 2017:
On December 22, 2017, the U.S. government approved a reduction in the federal statutory income tax rate from a maximum rate of 35% to 21%, effective in 2018. For the purposes of calculating deferred taxes, GAAP requires deferred taxes to be measured at the enacted tax rate at the balance sheet date, which was 21% at December 31, 2017. The impact of the rate reduction to the Company was a decrease in the Bank’s net deferred tax asset by $2.0 million, which is reflected in the Company’s tax provision for the year ended December 31, 2017.
This adjustment to deferred taxes included $97,000 related to unrealized gains and losses associated with the Company’s investment securities. Because these unrealized gains and losses were initially recorded as items of accumulated other comprehensive income in the Company’s capital accounts, the adjustment to deferred taxes resulted in a disproportionate tax effect of $97,000 that became stranded in accumulated other comprehensive income. In February of 2018, the FASB issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permitted entities to reclassify retained earnings to accumulated other comprehensive income to eliminate the amount stranded in accumulated other comprehensive income, and the FASB allowed entities to adopt this guidance in 2017. The Company elected to adopt this new guidance early, and reclassified $97,000 from retained earnings to accumulated other comprehensive income as of December 31, 2017.
The following is a summary of the Company’s gross deferred tax assets and gross deferred tax liabilities at December 31, 2018 and 2017:
At December 31, 2018, the Company had federal net operating loss carryovers of $76,000. The carryovers were transferred to the Company upon the merger with Amesbury Cooperative Bank during the year ended December 31, 2001. The losses will expire in 2020 and are subject to certain annual limitations which amount to $42,000 per year.
The Company reduces the deferred tax asset by a valuation allowance if, based on the weight of the available evidence, it is not “more likely than not” that some portion or all of the deferred tax assets will be realized. The Company assesses the realizability of its deferred tax assets by assessing the likelihood of the Company generating federal and state income tax, as applicable, in future periods in amounts sufficient to offset the deferred tax charges in the periods they are expected to reverse. Based on this assessment, management concluded that a valuation allowance was not required as of December 31, 2018 and 2017.
It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2018 and 2017, there was no material uncertain tax positions related to federal and state income tax matters. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2015 through December 31, 2017.
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EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS | NOTE 9 — EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS
401(k) Plan
The Company sponsors a 401(k) plan. All employees are eligible to join the 401(k) plan. However, participants in the 401(k) plan must complete one year of service to be eligible for safe harbor contributions and employer discretionary contributions. A Safe Harbor Plan was adopted by the Company effective January 1, 2007. Under the Safe Harbor Plan, the Company matches 100% of employee contributions up to 6% of compensation. In addition, the Company may make a discretionary contribution to the 401(k) plan determined on an annual basis. Employees may contribute up to 75% of their salary subject to certain limits based on federal tax laws. The expense recognized under the 401(k) plan was $494,000 and $440,000 for the years ended December 31, 2018 and 2017, respectively.
Supplemental Executive Retirement Plans
The Company has Supplemental Executive Retirement Agreements with certain executive officers. These agreements are designed to supplement the benefits available through the Company’s retirement plan. The liability for the retirement benefits amounted to $6.8 million and $5.6 million at December 31, 2018 and 2017, respectively, and is included in other liabilities. The expense recognized for these benefits was $1.1 million and $1.2 million for the years ended December 31, 2018 and 2017, respectively.
Employee Stock Ownership Plan
The Bank maintains the ESOP to provide eligible employees the opportunity to own Company stock. This plan is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released per year through 2029 is 23,810.
The Company contributed funds to a subsidiary to enable it to grant a loan to the ESOP for the purchase of 357,152 shares of the Company’s stock at a price of $10.00 per share. The loan obtained by the ESOP from the Company’s subsidiary to purchase Company stock is payable annually over 15 years at a rate per annum equal to the prime rate (5.50% at December 31, 2018). Loan payments are principally funded by cash contributions from the Company.
Shares held by the ESOP include the following:
Shared-Based Compensation Plan
Under the Provident Bancorp, Inc. 2016 Equity Incentive Plan (the “Equity Plan”), the Company may grant options, restricted stock, restricted units or performance awards to its directors, officers and employees. Both incentive stock options and non-qualified stock options may be granted under the Equity Plan, with 446,440 shares reserved for options. The exercise price of each option equals the market price of the Company’s stock on the date of grant and the maximum term of each option is ten years. The total number of shares reserved for restricted stock or restricted units is 178,575. The value of restricted stock grants is based on the market price of the stock on grant date. Options and awards vest ratably over five years.
Expense related to options and restricted stock granted to directors is recognized as directors’ fees within non-interest expense.
Stock Options
The fair value of each option is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions:
• Volatility is based on peer group volatility because the Company does not have a sufficient trading history.
• Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, and the vesting period.
• The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option.
The fair value of options granted in 2018 and 2017 is based on the following assumptions:
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:
Total expense for the stock options was $404,000 and $388,000 for the years ended December 31, 2018 and 2017, 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 prices at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period.
The following table presents the activity in unvested restricted stock awards under the Equity Plan for the year ended December 31, 2018:
Total expense for the restricted stock awards was $524,000 and $538,000 for the years ended December 31, 2018 and 2017, respectively.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | NOTE 10 — EARNINGS PER SHARE
Earnings per share consisted of the following components for the year ended December 31, 2018 and 2017.
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REGULATORY MATTERS |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGULATORY MATTERS | NOTE 11 — REGULATORY MATTERS
The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
Effective January 1, 2015 (with a phase-in period of two to four years for certain components), the Bank became subject to capital regulations adopted by the FDIC, which implement the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The regulations require a minimum Common Equity Tier 1 (“CET1”) capital ratio of 4.5%, a minimum Tier 1 capital to risk-weighted assets ratio of 6.0%, a minimum total capital to risk-weighted assets ratio of 8.0% and a minimum Tier 1 leverage ratio of 4.0%. CET1 generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. Under prompt corrective action regulations, in order to be considered “well capitalized,” the Bank must maintain a CET1 capital ratio of 6.5% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, a total risk based capital ratio of 10.0% or greater and a leverage ratio of 5.0% or greater. In addition, the regulations establish a capital conservation buffer above the required capital ratios that started phasing in on January 1, 2016 at 0.625% of risk-weighted assets and increases each year by 0.625% until it is fully phased in at 2.5% effective January 1, 2019. At December 31, 2018, the Bank exceeded the fully phased in regulatory requirement for the capital conservation buffer. Failure to maintain the capital conservation buffer could limit the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses.
As of December 31, 2018 and 2017, the Bank met the conditions to be classified as well capitalized under the regulatory framework for prompt corrective action.
The Bank’s actual capital amounts and ratios at December 31, 2018 and 2017 are summarized as follows:
Liquidation Account
Upon the completion of the Company’s stock offering in 2015, a special “liquidation account” was established for the benefit of certain depositors of the Bank in an amount equal to the percentage ownership interest in the equity of the Company to be held by persons other than the MHC as of the date of the latest balance sheet contained in the prospectus. The Company is not permitted to pay dividends on its capital stock if the Company’s shareholders’ equity would be reduced below the amount of the liquidation account. The liquidation account is reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account.
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COMMITMENTS AND CONTINGENT LIABILITIES |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 12 — COMMITMENTS AND CONTINGENT LIABILITIES
At December 31, 2018, the Company was obligated under non-cancelable operating leases for bank premises and equipment.
The total minimum rental due in future periods under these existing agreements is as follows at December 31, 2018:
The total rental expense amounted to $460,000 and $349,000 for the years ended December 31, 2018 and 2017, respectively.
Litigation
In April 2018, the Bank conducted a foreclosure sale of certain real and personal property which secured four non-accruing loans originally made by the Bank. The aggregate outstanding principal balance of these loans was approximately $7.5 million, of which (a) approximately $4.9 million was due and owing to the Bank and (b) approximately $2.6 million was due and owing to another financial institution who purchased participation interests in certain of these loans (the “Participant”). The Bank received approximately $8.3 in proceeds from this foreclosure sale. The U.S. Small Business Administration (“SBA”), which also made a secured loan to the same obligors, has since disputed the Bank’s retention of, and claimed priority to, a portion of the proceeds generated from this foreclosure sale, alleging a breach of contract and seeking monetary damages in the approximate amount of $2.0 million. The Bank has partially denied liability, and in addition to its defenses, has asserted a counterclaim against the SBA and its assignee, Granite State Economic Development Corporation, seeking equitable reformation of the contract at issue on the basis of a mutual mistake of fact. On March 5, 2019, the Bank participated in a mediation of this matter. Pending the outcome of this lawsuit and this mediation, the Bank has segregated into a separate deposit account the entire amount in dispute, consisting of $1.4 million that would be retained by the Bank, and $543,000 that would be provided to the participating institution. Management does not believe that the ultimate resolution of this matter will have a significant impact on the Bank’s financial condition or results of operations.
From time to time, the Company is involved in litigation incidental to its business. The Company does not believe that the ultimate resolution of these legal matters will have a significant impact on the Company’s financial condition and results of operations.
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FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | NOTE 13 — FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, standby letters of credit and unadvanced funds on loans. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.
Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include secured interests in real property, accounts receivable, inventory, property, plant and equipment and income producing properties.
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. At December 31, 2018 and 2017, the maximum potential amount of the Company’s obligation was $1.5 million and $2.0 million, respectively, for financial and standby letters of credit. The Company’s outstanding letters of credit generally have a term of less than one year. If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit.
Notional amounts of financial instruments with off-balance sheet credit risk are as follows at December 31, 2018 and 2017:
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SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK |
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Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | NOTE 14 — SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK
Most of the Company’s business activity is with customers located within northeast Massachusetts and southeast New Hampshire.. There are no concentrations of credit to borrowers that have similar economic characteristics. The majority of the Company’s loan portfolio is comprised of loans collateralized by real estate located in northeast Massachusetts and southeast New Hampshire.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | NOTE 15 — FAIR VALUE MEASUREMENTS
The Company reports certain assets at fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value in accordance with generally accepted accounting principles. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values:
Basis of Fair Value Measurements
• Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
• Level 2 — Observable inputs other than level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability;
• Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
Fair Values of Assets Measured on a Recurring Basis
The Company’s investments in U.S. Government and federal agency, state and municipal, asset-backed and government mortgage-backed securities available-for-sale are generally classified within Level 2 of the fair value hierarchy. For these investments, we obtain fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions.
The following summarizes assets measured at fair value on a recurring basis at December 31, 2018 and 2017:
The Company did not have any transfers of assets measured at fair value on a recurring basis between Levels 1 and 2 of the fair value hierarchy during the years ended December 31, 2018 and 2017.
Fair Values of Assets Measured on a Nonrecurring Basis
The Company’s only assets measured at fair value on a nonrecurring basis are loans identified as impaired for which a write-off or specific reserve has been recorded, and other real estate owned.
Certain impaired loans of the Company are reported at the fair value of the underlying collateral, less estimated selling costs. The Company classifies impaired loans as Level 3 in the fair value hierarchy. Collateral values are estimated using Level 2 inputs based upon appraisals of similar properties obtained from a third party, but can be adjusted and therefore classified as level 3. The Company classifies other real estate owned as Level 2 in the fair value hierarchy if the Company has received a purchase and sales agreement.
The following summarizes assets measured at fair value on a nonrecurring basis at December 31, 2018 and 2017:
The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at December 31, 2018 and 2017:
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DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS |
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Fair Value Of Financial Instrument [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS | NOTE 16 — DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS
GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Certain financial instruments and all nonfinancial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.
The carrying amounts and estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows at December 31, 2018 and 2017:
The carrying amounts of financial instruments shown above are included in the consolidated balance sheets under the indicated captions. Accounting policies related to financial instruments are described in Note 2.
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RECLASSIFICATION |
12 Months Ended |
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Dec. 31, 2018 | |
Reclassification [Abstract] | |
RECLASSIFICATION | NOTE 17 — RECLASSIFICATION
Certain amounts in the prior year have been reclassified to be consistent with the current year’s consolidated financial statement presentation, and had no effect on the net income reported in the consolidated income statement.
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CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY |
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY | NOTE 18 — CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY
Financial information pertaining only to Provident Bancorp, Inc. is as follows:
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SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 19 — SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
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ACCOUNTING POLICIES (Policies) |
12 Months Ended |
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Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, stock-based compensation expense and deferred income taxes.
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Basis of Presentation | Basis of Presentation
The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All material intercompany balances and transactions have been eliminated in consolidation.
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Cash and Cash Equivalents | Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks, and short-term investments comprised of interest-bearing demand deposits with other banks and federal funds sold.
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Investment Securities | Investment Securities
Investments in debt securities are adjusted for amortization of premiums and accretion of discounts so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis and are recorded as of the trade date.
Debt and equity securities may be classified into one of three categories: held-to-maturity, available-for-sale or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities must be classified as available-for-sale.
• Held-to-maturity securities, if any, are measured at amortized cost in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings or as a separate component of shareholders’ equity.
• Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, but are reported as a net amount (less expected tax) as a separate component of shareholders’ equity until realized.
• Trading securities, if any, are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings.
The Company evaluates securities within the Company’s available for sale portfolio for other-than-temporary impairment (“OTTI”), at least quarterly. If the fair value of a debt security is below the amortized cost basis of the security, OTTI is required to be recognized if any of the following are met: (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes.
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Federal Home Loan Bank Stock | Federal Home Loan Bank Stock
As a member of the Federal Home Loan Bank of Boston (the “FHLB”), the Company is required to invest in $100 par value stock of the FHLB. The FHLB capital structure mandates that members own stock as determined by their Total Stock Investment Requirement which is the sum of a member’s Membership Stock Investment Requirement and Activity-Based Stock Investment Requirement. FHLB stock is a non-marketable equity security that is carried at cost and evaluated for impairment when deemed necessary.
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Loans | Loans
Loan receivables that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for amounts due to borrowers on unadvanced loans, any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans.
Interest income is accrued on the unpaid principal balance.
Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is recognized as an adjustment of the related loan yield using the interest method. The Company is amortizing these amounts over the contractual life of the related loans.
Residential real estate loans are generally placed on non-accrual status when reaching 90 days past due or in process of collection. Past due status is based on the contractual terms of the loan. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on non-accrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged-off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Interest income received on non-accrual loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual.
Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered.
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Allowance for Loan Losses | Allowance for Loan Losses
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibality of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses is allocated to loan types using both a formula-based approach (general component) and an analysis of certain individual loans for impairment (allocated component).
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures.
The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction and land development, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. These historical loss factors are adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions.
The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:
Commercial real estate: Loans in this segment are primarily income-producing properties throughout Massachusetts and New Hampshire. The underlying cash flows generated by the properties can be adversely impacted by a downturn in the economy resulting in increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management periodically obtains rent rolls and continually monitors the cash flows and collateral value of these loans.
Commercial: 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, will have an effect on the credit quality in this segment.
Residential real estate: The Company generally does not originate loans with a loan-to-value ratio greater than 80% and does not grant subprime loans. Loans with loan to value ratios greater than 80% require the purchase of private mortgage insurance. 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 and value of collateral. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.
Construction and land development: Loans in this segment primarily include speculative and pre-sold real estate development loans for which payment is derived from sale of the property and construction to permanent loans for which payment is derived from cash flows of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.
Consumer: Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower.
The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan.
The Company from time to time, may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modified loan is considered a troubled debt restructuring (“TDR”). All TDRs are initially classified as impaired.
An unallocated component can be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.
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Assets Held-for-Sale | Assets Held-for-Sale
Assets held-for-sale represented a commercial property being held for sale to a real estate developer. Assets designated as held for sale were held at the lower of carrying amount at designation or fair value less costs to sell. Depreciation is not charged against assets classified as held for sale. In 2018, the Company decided to retain this property for use and reclassified the property to premises and equipment.
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Bank-Owned Life Insurance | Bank-Owned Life Insurance
Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are not subject to income taxes.
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Premises and Equipment | Premises and Equipment
Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Generally, depreciation on the buildings and equipment is calculated principally on the straight line method, and depreciation and amortization expense is charged against operations over the estimated useful lives of the related assets.
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Other Real Estate Owned and Repossessed Assets | Other Real Estate Owned and Repossessed Assets
Assets acquired through, or in lieu of, loan foreclosure or repossession are held for sale and are initially recorded at the lower of the investment in the loan or fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. Subsequently, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations, changes in the valuation allowance, any direct write-downs and gains or losses on sales are included in other real estate owned expense.
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Advertising | Advertising
The Company directly expenses costs associated with advertising as they are incurred.
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Earnings per Share | Earnings per Share
Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.
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Employee Stock Ownership Plan | Employee Stock Ownership Plan
Compensation expense for The Provident Bank Employee Stock Ownership Plan (the “ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity on the consolidated balance sheets. The difference between the average fair value and the cost of the shares by the ESOP is recorded as an adjustment to additional paid-in-capital.
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Stock-based Compensation Plans | Stock-based Compensation Plans
The Company measures and recognizes compensation cost relating to stock-based payment transactions based on the grant-date fair value of the equity instruments issued. Stock-based compensation is recognized over the period the employee is required to provide services for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. The fair value of restricted stock is recorded based on the grant date value of the equity instrument issued.
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Treasury Stock | Treasury Stock
Common stock repurchased are recorded as treasury stock at cost.
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Income Taxes | Income Taxes
The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized.
The Company examines its significant income tax positions annually to determine whether a tax benefit is more likely than not to be sustained upon examination by tax authorities.
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Fair Values of Financial Instruments | Fair Values of Financial Instruments
GAAP requires that the Company disclose estimated fair values for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows:
Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate fair values.
Investments: Fair values for investments are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or pricing models. See footnote 15 for further details.
Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. In connection with the adoption of ASU 2016-01 on January 1, 2018, the Company refined its methodology to estimate the fair value of the loan portfolio using an exit price notion resulting in prior periods no longer being comparable. The exit price notion requires determination of the price at which willing market participants would transact at the measurement date under current market conditions.
Accrued interest receivable: The carrying amount of accrued interest receivable approximates its fair value.
Deposit liabilities: The fair values disclosed for deposits (e.g., interest and non-interest checking, passbook savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.
Borrowings: Fair values of
Federal Reserve Bank (“FRB”) Discount Window and Federal Home Loan Bank advances are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements.
Off-balance sheet instruments: The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portions of loans, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements
ASU (Accounting Standards Update) No. 2014-09 — Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in ASC 605. This ASU requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment includes a five-step process to assist an entity in achieving the main principle(s) of revenue recognition under ASC 605. In March 2016, the FASB also issued ASU 2016-08, an amendment to the guidance in ASU 2014-09, which reframed the structure of the indicators of when an entity is acting as an agent and focused on evidence that an entity is acting as the principal or agent in a revenue transaction. ASU 2016-08 also eliminated two of the indicators (the entity’s consideration is in the form of a commission, and the entity is not exposed to credit risk) in making that determination. This amendment also clarifies that each indicator may be more or less relevant to the assessment depending on the terms and conditions of the contract. In May 2016, the FASB issued ASU 2016-12, an amendment to ASU 2014-09, which provided practical expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on transition, collectability, non-cash consideration and presentation of sales and other similar taxes. The amendments, collectively, should be applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption (modified retrospective approach).
This ASU was effective for the Company on January 1, 2018. Because the ASU does not apply to revenue associated with leases and financial instruments (including loans and securities), the Company concluded that the new guidance did not impact the elements of its consolidated statements of income most closely associated with leases and financial instruments (such as interest income, interest expense and securities gains). The Company completed its identification of all revenue streams included in its financial statements and has identified its deposit-related fees, service charges, debit and prepaid card interchange income and other fee income to be within the scope of the standard. The Company has also completed its review of the related contracts. The Company’s overall assessment indicates that adoption of this ASU did not materially change its current method and timing of recognizing revenue for the identified revenue streams and therefore, the adoption of this ASU as of January 1, 2018, did not have a significant impact to the Company’s financial condition, results of operations and consolidated financial statements.
ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” The ASU has been issued to improve the recognition and measurement of financial instruments by requiring 1) equity investments (except those accounted for under the equity method of accounting, those without readily determinable fair values, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; 3) the use of the exit price notion when measuring fair value of financial instruments for disclosure purposes; and 4) separate presentation by the reporting organization in other comprehensive income for the portion of the total change in the fair value of a liability resulting from the change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The standard was effective for the Company on January 1, 2018. The Company evaluated the impact of this pronouncement and divested its entire marketable equity securities portfolio in 2017. The Company’s investment in Federal Home Loan Bank Stock is not included in the scope of this pronouncement. Upon adoption, the fair value of the Company’s loan portfolio is now presented using an exit price method. Also, the Company is no longer required to disclose the methodologies used for estimating fair value of financial assets and liabilities that are not measured at fair value on a recurring or nonrecurring basis. The remaining requirements of this update did not have a material impact on the Company’s consolidated financial statements.
ASU 2016-02, Leases (Topic 842). The amendments in this update require lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases. Accounting by lessors will remain largely unchanged. The guidance is effective for the Company on January 1, 2019, with early adoption permitted. In July 2018, the FASB issued 2018-11, which allows a modified retrospective transition where the lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented or as a cumulative effect adjustment as of the date of adoption. The Company’s assets and liabilities will increase based on the present value of the remaining lease payments in place the adoption date; however, this is not expected to be material to the Company’s results of operations or financial position. The Company adopted ASU 2016-02 on January 1, 2019 as a cumulative effect adjustment as of that date, and there was no material impact on the Company’s consolidated financial statements.
ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” The ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. The amendments in this update will be effective for the Company on January 1, 2020. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact of its pending adoption of this guidance on the Company’s financial statements.
ASU No. 2016-15, Statement of Cash Flows (Topic 230): “Classification of Certain Cash Receipts and Cash Payments.” This ASU changes how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. The amendments address the classification of the following eight items in the statement of cash flows: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the Predominance Principle. The amendments in this update were effective for the Company on January 1, 2018. As the guidance only affects the classification within the statement of cash flows, the adoption of this guidance did not have an impact on the Company’s financial statements.
ASU No. 2017-08, Receivables — Nonrefundable Fees and Other Costs (subtopic 310-20): “Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments are effective for the Company on January 1, 2019. The Company adopted this guidance on January 1, 2019 and there was no impact on the Company’s financial statements.
ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU will be effective for the Company on January 1, 2020. As the guidance only revises disclosure requirements, the adoption of this guidance is not expected to have a material impact on the Company’s financial statements.
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INVESTMENTS SECURITIES AVAILABLE-FOR-SALE (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortized cost of investment securities classified as available-for-sale and their approximate fair values |
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Schedule of maturities of debt securities |
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Schedule of aggregate fair value and unrealized losses of securities that have been in a continuous unrealized-loss position |
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LOANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans |
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Schedule of allowance for loans and impaired loans by portfolio segment |
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Schedule of loans to directors and executive officers of the company and companies in which they have significant ownership interests |
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Schedule of non accrual loans and past-due loans by portfolio segment |
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Schedule of impaired loans by portfolio segment |
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Schedule of troubled debt restructurings |
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Schedule of loans by risk rating and portfolio segment |
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PREMISES AND EQUIPMENT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of premises and equipment |
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DEPOSITS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of deposit balances by type |
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Schedule of maturities of certificate accounts |
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BORROWINGS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances from Federal Home Loan Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of maturities of advances from the FHLB |
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components for income tax expense |
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Schedule of differences between the statutory federal income tax rate and the effective tax rates |
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Schedule of deferred tax assets and deferred tax liabilities |
|
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of employee stock ownership plan |
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Schedule of fair value of options granted |
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Schedule of stock option grants |
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Schedule of activity in unvested restricted stock awards under the Equity Plan |
|
EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earning per share |
|
REGULATORY MATTERS (Table) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of actual capital amounts and ratios |
|
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of minimum rental due in future periods of existing agreements |
|
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial instrument with off-balance sheet credit risk |
|
FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial instruments measured at fair value on a recurring basis |
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Schedule of financial instruments measured at fair value on a nonrecurring basis |
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Schedule of summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis |
|
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Financial Instrument [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amounts and estimated fair values of financial instruments, held or issued for purposes other than trading |
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CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of parent only statement of balance sheet |
|
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Schedule of parent only income statement |
|
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Schedule of parent only statement of cash flows |
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SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of quarterly financial data |
|
NATURE OF OPERATIONS (Detail Textuals) |
Dec. 31, 2018 |
---|---|
Mutual holding company (MHC) | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Percentage of ownership of mutual holding company | 52.30% |
ACCOUNTING POLICIES (Detail Textuals) |
12 Months Ended |
---|---|
Dec. 31, 2018
$ / shares
| |
Accounting Policies [Abstract] | |
Par value of stock bought from and sold to the federal home loan bank (in dollars per share) | $ 100 |
INVESTMENTS SECURITIES AVAILABLE-FOR-SALE (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 51,765 | $ 60,671 |
Gross Unrealized Gains | 410 | 1,092 |
Gross Unrealized Losses | 772 | 334 |
Fair Value | 51,403 | 61,429 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 20,118 | 20,726 |
Gross Unrealized Gains | 272 | 745 |
Gross Unrealized Losses | 135 | 17 |
Fair Value | 20,255 | 21,454 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,512 | 7,524 |
Gross Unrealized Gains | 0 | 30 |
Gross Unrealized Losses | 141 | 37 |
Fair Value | 6,371 | 7,517 |
Government mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,135 | 32,421 |
Gross Unrealized Gains | 138 | 317 |
Gross Unrealized Losses | 496 | 280 |
Fair Value | $ 24,777 | $ 32,458 |
INVESTMENTS IN SECURITIES - Maturities of debt securities (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Available-for-Sale, Amortized Cost | ||
Due within one year | $ 95 | |
Due after one year through five years | 604 | |
Due after five years through ten years | 2,120 | |
Due after ten years | 17,299 | |
Amortized Cost | 51,765 | $ 60,671 |
Available-for-Sale, Fair Value | ||
Due within one year | 95 | |
Due after one year through five years | 608 | |
Due after five years through ten years | 2,169 | |
Due after ten years | 17,383 | |
Fair Value | 51,403 | 61,429 |
Government mortgage-backed securities | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost | 25,135 | 32,421 |
Available-for-Sale, Fair Value | ||
Fair Value | 24,777 | 32,458 |
Asset-backed securities | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost | 6,512 | 7,524 |
Available-for-Sale, Fair Value | ||
Fair Value | $ 6,371 | $ 7,517 |
INVESTMENTS IN SECURITIES (Detail Textuals) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2018 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Gross realized gains on sales and calls | $ 6,400,000 | |
Gross losses realized | 505,000 | |
Securities pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank | $ 39,800,000 | $ 31,100,000 |
LOANS (Details 2) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance beginning January 1 | $ 22,273 | $ 7,739 |
Effect of changes in composition of related parties | (339) | (85) |
Advances | 11 | 18,809 |
Principal payments | 9,988 | 4,190 |
Ending balance, December 31 | $ 11,957 | $ 22,273 |
LOANS (Details 5) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
Contract
| |
Financing Receivable, Impaired [Line Items] | |
Number of Contracts | Contract | 1 |
Pre- Modification Outstanding Recorded Investment | $ 249 |
Post-Modification Outstanding Recorded Investment | $ 249 |
Commercial | |
Financing Receivable, Impaired [Line Items] | |
Number of Contracts | Contract | 1 |
Pre- Modification Outstanding Recorded Investment | $ 249 |
Post-Modification Outstanding Recorded Investment | $ 249 |
LOANS (Detail Textuals) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Aggregate principal balance pledged to secure possible borrowings | $ 393,800,000 | $ 357,100,000 |
Troubled debt restructuring, total | 249,000 | |
Re-amortization term of commercial loan | 3 years | |
Unpaid principal balance | $ 7,618,000 | 13,745,000 |
Servicing portfolio | 294,000 | |
Mortgage and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 18,800,000 | $ 15,600,000 |
PREMISES AND EQUIPMENT - Summary of premises and equipment (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 26,167 | $ 20,555 |
Accumulated depreciation and amortization | (10,081) | (9,574) |
Premises and equipment, net | 16,086 | 10,981 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 2,424 | 2,424 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 9,241 | 9,241 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 4,520 | 4,649 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 4,234 | 4,241 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 5,748 | $ 0 |
PREMISES AND EQUIPMENT (Detail Textuals) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 721 | $ 811 |
DEPOSITS - Summary of deposit balances by type (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deposits [Abstract] | ||
NOW and demand | $ 332,064 | $ 309,514 |
Regular savings | 109,322 | 112,610 |
Money market deposits | 229,314 | 225,735 |
Total non-certificate accounts | 670,700 | 647,859 |
Certificate accounts of $250,000 or more | 14,164 | 5,061 |
Certificate accounts less than $250,000 | 83,232 | 97,137 |
Total certificate accounts | 97,396 | 102,198 |
Total deposits | $ 768,096 | $ 750,057 |
DEPOSITS - Scheduled maturities for time deposits (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deposits [Abstract] | ||
2018 | $ 0 | $ 81,791 |
2019 | 55,061 | 16,105 |
2020 | 32,089 | 3,052 |
2021 | 8,938 | 410 |
2022 | 794 | 840 |
2023 | 514 | 0 |
Total | $ 97,396 | $ 102,198 |
DEPOSITS (Detail Textuals) - USD ($) $ in Millions |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deposits [Abstract] | ||
Brokered certificates of deposit | $ 55.8 | $ 62.3 |
Deposits from related parties held | $ 7.4 | $ 16.0 |
BORROWINGS (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Advances from Federal Home Loan Banks [Abstract] | ||
2018 | $ 0 | $ 12,000 |
2019 | 43,071 | 4,936 |
2020 | 11,451 | 6,405 |
2021 | 5,000 | 0 |
2023 | 8,500 | 0 |
Thereafter | 0 | 3,500 |
Total | $ 68,022 | $ 26,841 |
BORROWINGS (Detail Textuals) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
May 31, 2017 |
Aug. 31, 2015 |
---|---|---|---|---|
Federal Home Loan Bank, Advances [Line Items] | ||||
Aggregate borrowings from FHLB | $ 68,022,000 | $ 26,841,000 | ||
Federal reserve bank advances | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Overnight borrowings | $ 8,100,000 | |||
Interest rate on overnight borrowings | 3.00% | |||
Federal Home Loan Bank Advances | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Aggregate borrowings from FHLB | $ 59,922 | $ 26,841 | ||
Modified FHLB borrowings | $ 5,000,000 | $ 3,500,000 | ||
Prepayment penalty | $ 87,000 | $ 233,000 | ||
Federal Home Loan Bank Advances | Minimum | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Interest rates on FHLB advances ranged from | 1.53% | |||
Federal Home Loan Bank Advances | Maximum | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Interest rates on FHLB advances ranged from | 3.01% | |||
Federal Home Loan Bank Advances | Weighted average | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Interest rates on FHLB advances ranged from | 2.52% |
INCOME TAXES - Components of income tax expense (Details) - 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 | $ 3,214 | $ 5,044 | ||||||||
State | 1,278 | 1,079 | ||||||||
Net operating loss carryforward | (14) | (14) | ||||||||
Current tax expense (benefit), total | 4,478 | 6,109 | ||||||||
Deferred tax expense (benefit): | ||||||||||
Federal | (926) | 1,523 | ||||||||
State | (315) | (214) | ||||||||
Deferred tax expense (benefit), total | (1,241) | 1,309 | ||||||||
Income tax expense | $ 975 | $ 741 | $ 843 | $ 678 | $ 4,498 | $ 1,434 | $ 639 | $ 847 | $ 3,237 | $ 7,418 |
INCOME TAXES - Differences between statutory federal income tax rate and effective tax rates (Details 1) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Federal income tax at statutory rate | 21.00% | 34.00% |
Increase (decrease) in tax resulting from: | ||
State tax, net of federal tax benefit | 5.70% | 4.60% |
Tax exempt income and dividends received deduction | (1.00%) | (3.30%) |
Change in enacted federal tax rate | 0.00% | 13.40% |
Other | 0.10% | (0.30%) |
Effective tax rate | 25.80% | 48.40% |
INCOME TAXES - Gross deferred tax assets and gross deferred tax liabilities (Details 2) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deferred tax assets: | ||
Allowance for loan losses | $ 3,251 | $ 2,743 |
Depreciation | 160 | 41 |
Net operating loss carryforward | 16 | 25 |
Employee benefit plans and share-based compensation plans | 2,498 | 1,979 |
Deferred loan fees, net | 339 | 238 |
Reserve for unfunded commitments | 31 | 39 |
Net unrealized loss on securities | 107 | 0 |
Other | 109 | 140 |
Gross deferred tax assets | 6,511 | 5,205 |
Deferred tax liabilities: | ||
Prepaid expenses | (45) | (64) |
FHLB restructure fees | (29) | (52) |
Net unrealized holding gain on securities | 0 | (169) |
Gross deferred tax liabilities | (74) | (285) |
Net deferred tax asset | $ 6,437 | $ 4,920 |
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS - Shares held by ESOP (Details) - shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Shares held by the ESOP include the following: | ||
Allocated | 71,430 | 47,620 |
Committed to be allocated | 23,810 | 23,810 |
Unallocated | 261,912 | 285,722 |
Total | 357,152 | 357,152 |
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Details 1) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Vesting period (years) | 5 years | 5 years |
Expiration date (years) | 10 years | 10 years |
Expected volatility | 21.23% | 21.53% |
Expected life (years) | 7 years 6 months | 7 years 6 months |
Expected dividend yield | 0.00% | 0.00% |
Risk free interest rate | 2.97% | 2.25% |
Fair value per option | $ 8.71 | $ 7.05 |
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Details 3) - Restricted stock $ / shares in Units, $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
$ / shares
shares
| |
Number of Shares | |
Unvested restricted stock awards at January 1, 2018 | shares | 127,852 |
Granted | shares | 4,862 |
Forfeited | shares | (3,896) |
Vested | shares | (30,745) |
Unvested restricted stock awards at December 31, 2018 | shares | 98,073 |
Unrecognized compensation cost | $ | $ 1,724,000 |
Weighted average remaining recognition period (years) | 3 years 4 days |
Weighted Average Grant Price | |
Unvested restricted stock awards at January 1, 2018 | $ / shares | $ 17.59 |
Granted | $ / shares | 27.2 |
Forfeited | $ / shares | 17.4 |
Vested | $ / shares | 17.59 |
Unvested restricted stock awards at December 31, 2018 | $ / shares | $ 18.13 |
EARNINGS PER SHARE (Details) - 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 |
|
Earnings Per Share [Abstract] | ||||||||||
Net income attributable to common shareholders | $ 9,325 | $ 7,915 | ||||||||
Average number of common shares outstanding | 9,659,357 | 9,652,448 | ||||||||
Less: | ||||||||||
Average unallocated ESOP shares | (283,337) | (298,680) | ||||||||
Average unvested restricted stock | (106,033) | (136,986) | ||||||||
Average treasury stock acquired | (29,901) | (17,508) | ||||||||
Average number of common shares outstanding to calculate basic earnings per common share | 9,258,858 | 9,247,367 | 9,233,745 | 9,219,865 | 9,208,854 | 9,201,634 | 9,193,836 | 9,192,568 | 9,240,086 | 9,199,274 |
Effect of dilutive unvested restricted stock and stock option awards | 66,230 | 613 | ||||||||
Average number of common shares outstanding to calculate diluted earnings per common share | 9,339,431 | 9,355,410 | 9,302,425 | 9,225,003 | 9,257,702 | 9,213,056 | 9,198,286 | 9,192,568 | 9,306,316 | 9,199,887 |
Earnings per common share: | ||||||||||
Basic | $ 0.31 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 1.01 | $ 0.86 |
Diluted | $ 0.30 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 1.00 | $ 0.86 |
COMMITMENTS AND CONTINGENT LIABILITIES - Total minimum rental due in future periods (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 285 |
2020 | 244 |
2021 | 252 |
2022 | 252 |
2023 | 252 |
Years thereafter | 1,908 |
Total minimum lease payments | $ 3,193 |
COMMITMENTS AND CONTINGENT LIABILITIES (Detail Textuals) - USD ($) |
1 Months Ended | 12 Months Ended | |
---|---|---|---|
Apr. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | $ 460,000 | $ 349,000 | |
Aggregate principal outstanding balance foreclosure sale | $ 7,500,000 | ||
Aggregate principal outstanding balance retain by bank | 4,900,000 | ||
Aggregate principal outstanding balance retain by another institution | 2,600,000 | ||
Proceeds from sale of foreclosed assets | 8,300,000 | ||
Amount retain from proceeds of foreclosure sale | 2,000,000 | ||
Dispute proceeds deposit in suspense account | 1,400,000 | ||
Dispute proceeds deposit in suspense account by another institution | $ 543,000 |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Notional amounts of financial instrument with off-balance sheet credit risk (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | $ 240,275 | $ 186,959 |
Commitments to originate loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | 42,625 | 18,641 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | 1,546 | 2,004 |
Unadvanced portions of loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | $ 196,104 | $ 166,314 |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Detail Textuals) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Financial and standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Maximum potential amount of obligation | $ 1.5 | $ 2.0 |
FAIR VALUE MEASUREMENTS - Fair Values of Financial Instruments Measured on Nonrecurring Basis (Details 1) - Nonrecurring basis - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 659 | $ 3,670 |
Other real estate owned | 1,676 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 1,676 | |
Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 659 | $ 3,670 |
Other real estate owned | $ 0 |
FAIR VALUE MEASUREMENTS - Valuation methodology and unobservable inputs for Level 3 assets (Details 2) - Nonrecurring basis - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans, fair value | $ 659 | $ 3,670 |
Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans, fair value | $ 659 | $ 3,670 |
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY - Parent Only Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Assets | |||
Cash and due from banks | $ 10,941 | $ 10,326 | |
Other assets | 2,822 | 2,083 | |
Total assets | 974,079 | 902,265 | |
Liabilities and Shareholders' Equity | |||
Shareholders' equity | 125,584 | 115,777 | $ 109,149 |
Total liabilities and shareholders' equity | 974,079 | 902,265 | |
PROVIDENT BANCORP, INC. | |||
Assets | |||
Cash and due from banks | 5,249 | 5,224 | |
Investment in common stock of The Provident Bank | 117,615 | 107,629 | |
Other assets | 2,755 | 2,946 | |
Total assets | 125,619 | 115,799 | |
Liabilities and Shareholders' Equity | |||
Accrued expenses | 35 | 22 | |
Shareholders' equity | 125,584 | 115,777 | |
Total liabilities and shareholders' equity | $ 125,619 | $ 115,799 |
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY - Parent Only Income Statement (Details 1) - 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] | ||||||||||
Total income | $ 313 | $ 100 | ||||||||
Applicable income tax provision | $ 975 | $ 741 | $ 843 | $ 678 | $ 4,498 | $ 1,434 | $ 639 | $ 847 | 3,237 | 7,418 |
Net income | $ 2,835 | $ 2,078 | $ 2,390 | $ 2,022 | $ 1,741 | $ 2,771 | $ 1,601 | $ 1,802 | 9,325 | 7,915 |
PROVIDENT BANCORP, INC. | ||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||
Total income | 140 | 120 | ||||||||
Operating expenses | 90 | 88 | ||||||||
Income before income taxes and equity in undistributed net income of The Provident Bank | 50 | 32 | ||||||||
Applicable income tax provision | 14 | 13 | ||||||||
Income before equity in income of subsidiaries | 36 | 19 | ||||||||
Equity in undistributed net income of The Provident Bank | 9,289 | 7,896 | ||||||||
Net income | $ 9,325 | $ 7,915 |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - 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 | $ 11,377 | $ 10,833 | $ 10,377 | $ 9,753 | $ 9,615 | $ 9,239 | $ 8,816 | $ 8,112 | $ 42,340 | $ 35,782 |
Interest expense | 1,537 | 1,429 | 1,213 | 1,034 | 1,062 | 1,005 | 879 | 781 | 5,213 | 3,726 |
Net interest and dividend income | 9,840 | 9,404 | 9,164 | 8,719 | 8,553 | 8,234 | 7,937 | 7,331 | 37,127 | 32,056 |
Provision for loan losses | 614 | 1,421 | 638 | 656 | 462 | 1,012 | 892 | 563 | 3,329 | 2,929 |
Gain on sale of securities, net | 3,521 | 1,851 | 58 | 482 | 5,912 | |||||
Other income | 988 | 1,059 | 1,118 | 1,013 | 966 | 1,046 | 1,012 | 1,020 | 64 | 87 |
Total noninterest income | 988 | 1,059 | 1,118 | 1,013 | 4,487 | 2,897 | 1,070 | 1,502 | 4,178 | 9,955 |
Total noninterest expense | 6,404 | 6,223 | 6,411 | 6,376 | 6,339 | 5,914 | 5,875 | 5,621 | 25,414 | 23,749 |
Income tax expense | 975 | 741 | 843 | 678 | 4,498 | 1,434 | 639 | 847 | 3,237 | 7,418 |
Net income | $ 2,835 | $ 2,078 | $ 2,390 | $ 2,022 | $ 1,741 | $ 2,771 | $ 1,601 | $ 1,802 | $ 9,325 | $ 7,915 |
Income per share: | ||||||||||
Basic (in dollars per share) | $ 0.31 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 1.01 | $ 0.86 |
Diluted (in dollars per share) | $ 0.30 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 1.00 | $ 0.86 |
Weighted Average Shares: | ||||||||||
Basic (in shares) | 9,258,858 | 9,247,367 | 9,233,745 | 9,219,865 | 9,208,854 | 9,201,634 | 9,193,836 | 9,192,568 | 9,240,086 | 9,199,274 |
Diluted (in shares) | 9,339,431 | 9,355,410 | 9,302,425 | 9,225,003 | 9,257,702 | 9,213,056 | 9,198,286 | 9,192,568 | 9,306,316 | 9,199,887 |
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