Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-14854 | |
Entity Registrant Name | SALISBURY BANCORP, INC. | |
Entity Central Index Key | 0001060219 | |
Entity Tax Identification Number | 06-1514263 | |
Entity Incorporation, State or Country Code | CT | |
Entity Address, Address Line One | 5 Bissell Street | |
Entity Address, City or Town | Lakeville | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06039 | |
City Area Code | 860 | |
Local Phone Number | 435-9801 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SAL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,885,968 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 4,814 | $ 6,404 |
Interest bearing demand deposits with other banks | 94,047 | 168,931 |
Total cash and cash equivalents | 98,861 | 175,335 |
Interest bearing Time Deposits with Financial Institutions | 750 | 750 |
Securities | ||
Available-for-sale at fair value | 215,652 | 202,396 |
CRA mutual fund at fair value | 862 | 901 |
Federal Home Loan Bank of Boston stock at cost | 1,077 | 1,397 |
Loans held-for-sale | 1,070 | 2,684 |
Loans receivable, net (allowance for loan losses: $12,915 and $12,962) | 1,066,216 | 1,066,750 |
Bank premises and equipment, net | 22,856 | 22,625 |
Goodwill | 13,815 | 13,815 |
Intangible assets (net of accumulated amortization: $5,517 and $5,463) | 364 | 418 |
Accrued interest receivable | 5,895 | 6,260 |
Cash surrender value of life insurance policies | 27,900 | 27,738 |
Deferred taxes | 4,591 | 2,588 |
Other assets | 5,173 | 5,527 |
Total Assets | 1,465,082 | 1,529,184 |
Deposits | ||
Demand (non-interest bearing) | 370,082 | 416,073 |
Demand (interest bearing) | 233,893 | 233,600 |
Money market | 317,462 | 330,436 |
Savings and other | 240,824 | 237,075 |
Certificates of deposit | 128,213 | 119,009 |
Total deposits | 1,290,474 | 1,336,193 |
Repurchase agreements | 8,161 | 11,430 |
Federal Home Loan Bank of Boston advances | 419 | 7,656 |
Subordinated debt | 24,488 | 24,474 |
Note payable | 159 | 170 |
Finance lease obligations | 4,363 | 4,107 |
Accrued interest and other liabilities | 6,952 | 8,554 |
Total Liabilities | 1,335,016 | 1,392,584 |
Shareholders' Equity | ||
Outstanding: 2,882,458 and 2,861,697 | 288 | 286 |
Unearned compensation – restricted stock awards | (1,550) | (925) |
Paid-in capital | 47,099 | 46,374 |
Retained earnings | 92,648 | 89,995 |
Accumulated other comprehensive (loss) income, net | (8,419) | 870 |
Total Shareholders' Equity | 130,066 | 136,600 |
Total Liabilities and Shareholders' Equity | $ 1,465,082 | $ 1,529,184 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Shares, Issued | 2,882,458 | 2,861,697 |
Common Stock, Shares, Outstanding | 2,882,458 | 2,861,697 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and dividend income | ||
Interest and fees on loans | $ 10,163 | $ 10,477 |
Interest on debt securities | ||
Taxable | 724 | 423 |
Tax exempt | 174 | 162 |
Other interest and dividends | 57 | 34 |
Total interest and dividend income | 11,118 | 11,096 |
Interest expense | ||
Deposits | 478 | 555 |
Repurchase agreements | 3 | 3 |
Finance lease | 41 | 32 |
Note payable | 2 | 3 |
Subordinated Debt | 233 | 119 |
Federal Home Loan Bank of Boston advances | 55 | 34 |
Total interest expense | 812 | 746 |
Net interest and dividend income | 10,306 | 10,350 |
Provision for loan losses | 363 | 158 |
Net interest and dividend income after provision for loan losses | 9,943 | 10,192 |
Non-interest income | ||
Trust and wealth advisory | 1,241 | 1,146 |
Service charges and fees | 1,138 | 950 |
Mortgage banking activities, net | 355 | 608 |
Losses on CRA mutual fund | (42) | (16) |
Gains on sales and calls of available -for-sale securities, net | 210 | |
BOLI income and gains | 162 | 125 |
Other | 30 | 28 |
Total non-interest income | 3,094 | 2,841 |
Non-interest expense | ||
Salaries | 3,479 | 2,901 |
Employee benefits | 1,277 | 1,312 |
Premises and equipment | 1,104 | 954 |
Loss on sale of assets | 9 | |
Information processing and services | 685 | 565 |
Professional fees | 787 | 711 |
Collections, OREO, and loan related | 117 | 84 |
FDIC insurance | 171 | 145 |
Marketing and community support | 184 | 82 |
Amortization of intangibles | 54 | 71 |
Other | 786 | 434 |
Total non-interest expense | 8,653 | 7,259 |
Income before income taxes | 4,384 | 5,774 |
Income tax provision | 816 | 1,248 |
Net income | 3,568 | 4,526 |
Net income available to common shareholders | $ 3,508 | $ 4,462 |
Basic earnings per common share | $ 1.24 | $ 1.59 |
Diluted earnings per common share | 1.23 | 1.59 |
Common dividends per share | $ 0.32 | $ 0.29 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net income | $ 3,568 | $ 4,526 |
Other comprehensive loss | ||
Net unrealized losses on securities available-for-sale | (11,549) | (1,828) |
Reclassification of net realized gains in net income (1) | (210) | |
Unrealized losses on securities available-for-sale | (11,759) | (1,828) |
Income tax benefit | 2,470 | 383 |
Unrealized losses on securities available-for-sale, net of tax | (9,289) | (1,445) |
Comprehensive (loss) income | $ (5,721) | $ 3,081 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Deferred Compensation, Share-Based Payments [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 284 | $ 45,264 | $ 76,974 | $ 774 | $ 3,004 | $ 124,752 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2020 | 2,843,292 | |||||
Net income | 4,526 | 4,526 | ||||
Other comprehensive loss, net of tax | (1,445) | (1,445) | ||||
Common stock dividends declared ($0.32 per share) | (825) | (825) | ||||
Issuance of restricted common stock | 4 | (4) | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 100 | |||||
Stock Options exercised | $ 1 | 30 | 31 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 1,755 | |||||
Stock based compensation-restricted stock awards | 71 | 132 | 203 | |||
Ending balance, value at Mar. 31, 2021 | $ 285 | 45,369 | 80,675 | 646 | 1,559 | 127,242 |
Shares, Outstanding, Ending Balance at Mar. 31, 2021 | 2,845,147 | |||||
Beginning balance, value at Dec. 31, 2021 | $ 286 | 46,374 | 89,995 | 925 | 870 | 136,600 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 | 2,861,697 | |||||
Net income | 3,568 | 3,568 | ||||
Other comprehensive loss, net of tax | (9,289) | (9,289) | ||||
Common stock dividends declared ($0.32 per share) | (915) | (915) | ||||
Issuance of restricted common stock | $ 2 | 811 | (813) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 14,350 | |||||
Stock based compensation-restricted stock awards | 97 | 188 | 285 | |||
Issuance of restricted stock units upon vesting | (183) | (183) | ||||
[custom:StockIssuedDuringPeriodSharesRestrictedStockUnitsIssuedUponVesting] | 6,411 | |||||
Ending balance, value at Mar. 31, 2022 | $ 288 | $ 47,099 | $ 92,648 | $ 1,550 | $ 8,419 | $ 130,066 |
Shares, Outstanding, Ending Balance at Mar. 31, 2022 | 2,882,458 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.32 | $ 0.29 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities | ||
Net income | $ 3,568 | $ 4,526 |
(Accretion), amortization and depreciation: | ||
Securities | 361 | 178 |
Bank premises and equipment | 392 | 363 |
Core deposit intangible | 53 | 71 |
Modification fees on Federal Home Loan Bank of Boston advances | 21 | 5 |
Subordinated debt issuance costs | 14 | 4 |
Mortgage servicing rights | 39 | 75 |
(Gains) and losses, including write-downs | ||
Loss on CRA mutual fund | 42 | 16 |
Gain on sales of securities available-for-sale, net | (210) | |
Gain on sales of loans, excluding capitalized servicing rights | (275) | (494) |
Sales/disposals of premises and equipment | 9 | |
Provision for loan losses | 363 | 158 |
Proceeds from loans sold | 8,852 | 21,281 |
Loans originated for sale | (6,963) | (20,365) |
(Increase) decrease in deferred loan origination fees and costs, net | (476) | 993 |
Mortgage servicing rights originated | (55) | (193) |
Decrease in mortgage servicing rights impairment reserve | (9) | |
Decrease in interest receivable | 365 | 136 |
Deferred tax expense (benefit) | 467 | (54) |
Increase in prepaid expenses | (111) | (36) |
Increase in cash surrender value of life insurance policies | (162) | (125) |
Decrease (increase) in other assets | 403 | (497) |
Decrease in income tax receivable | 79 | |
Decrease in accrued expenses | (1,537) | (1,002) |
Increase in income tax payable | 1,118 | |
Decrease in interest payable | (12) | (6) |
(Decrease) increase in other liabilities | (53) | 48 |
Stock based compensation-restricted stock awards | 285 | 203 |
Net cash provided by operating activities | 5,459 | 6,394 |
Investing Activities | ||
Redemption of Federal Home Loan Bank of Boston stock | 320 | |
Purchases of securities available-for-sale | (145,297) | (40,466) |
Reinvestment of CRA mutual fund | (3) | (3) |
Proceeds from sales of securities available-for-sale | 17,718 | |
Proceeds from maturities/principal payments of securities available-for-sale | 102,413 | 9,528 |
Loan originations and principal collections, net | 641 | (14,611) |
Recoveries of loans previously charged off | 6 | 13 |
Capital expenditures | (343) | (839) |
Net cash utilized by investing activities | (24,545) | (46,378) |
Financing Activities | ||
(Decrease) increase in deposit transaction accounts, net | (54,923) | 85,358 |
Increase (decrease) in time deposits, net | 9,204 | (3,261) |
(Decrease) increase in securities sold under agreements to repurchase, net | (3,269) | 1,571 |
Repayments of Federal Home Loan Bank of Boston long term advances | (6,000) | |
Issuance of subordinated debt, net of costs | 24,418 | |
Principal payments on amortizing FHLB Advances | (1,258) | (1,248) |
Principal payments on note payable | (11) | (11) |
Principal payments on finance lease obligations | (33) | (15) |
Stock options exercised | 31 | |
Net settlement of restricted stock units | (183) | |
Common stock dividends paid | (915) | (825) |
Net cash (utilized) provided by financing activities | (57,388) | 106,018 |
Net (decrease) increase in cash and cash equivalents | (76,474) | 66,034 |
Cash and cash equivalents, beginning of period | 175,335 | 93,162 |
Cash and cash equivalents, end of period | 98,861 | 159,196 |
Cash paid during period | ||
Interest | 789 | 743 |
Income taxes | 270 | 183 |
Non cash investing and financing activities: | ||
Fixed Asset | 289 | |
Finance lease liability | (289) | |
Loans transferred to Loans Held for Sale | $ 3,389 |
NOTE 1 - BASIS OF PRESENTATION
NOTE 1 - BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
Note 1 - Basis Of Presentation | |
NOTE 1 - BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The interim (unaudited) consolidated financial statements of Salisbury Bancorp, Inc. ("Salisbury") include those of Salisbury and its wholly owned subsidiary, Salisbury Bank and Trust Company (the "Bank"). In the opinion of management, the interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the consolidated financial position of Salisbury and the consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the interim periods presented. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In preparing the financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and revenues and expenses for the period. Actual results could differ significantly 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 and unrealized gains and losses related to available-for-sale securities. Certain financial information, which is normally included in financial statements prepared in accordance with generally accepted accounting principles, but which is not required for interim reporting purposes, has been condensed or omitted. Operating results for the interim period ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2021 Annual Report on Form 10-K for the year ended December 31, 2021. The allowance for loan losses is a significant accounting policy and is presented in the Notes to Consolidated Financial Statements and in Management’s Discussion and Analysis, which provides information on how significant assets are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions and estimates underlying those amounts, management has identified the determination of the allowance for loan losses to be the accounting area that requires the most subjective judgments, and as such could be most subject to revision as new information becomes available. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. In April 2019, the FASB issued ASU 2019-04 which clarified the treatment of accrued interest when measuring credit losses. Entities may: (1) measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets; (2) make various accounting policy elections regarding the treatment of accrued interest receivable; or (3) elect a practical expedient to disclose separately the total amount of accrued interest included in the amortized cost basis as a single balance to meet certain disclosure requirements. ASU 2019-04 also clarified that expected recoveries of amounts previously written off and expected to be written off should be included in the valuation account and should not exceed the aggregate of amounts previously written off and expected to be written off by the entity. In addition, for collateral dependent financial assets, the amendments clarify that an allowance for credit losses that is added to the amortized cost basis of the financial asset(s) should not exceed amounts previously written off. In November 2019, the FASB issued ASU 2019-10, which delayed the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022 for smaller reporting companies, although early adoption is permitted. Salisbury meets the definition of a smaller reporting company. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” which clarified or addressed specific issues about certain aspects of the amendments in ASU 2016-13. The amendments in ASU 2019-11 clarified the following: (1) The allowance for credit losses (ACL) for purchased financial assets with credit deterioration should include expected recoveries of amounts previously written off and expected to be written off by the entity and should not exceed the aggregate of amounts of the amortized cost basis previously written off and expected to be written off by an entity. In addition, the amendments clarify that when a method other than a discounted cash flow method is used to estimate expected credit losses, expected recoveries should not include any amounts that result in an acceleration of the noncredit discount. An entity may include increases in expected cashflows after acquisition; (2) Transition relief will be provided by permitting entities an accounting policy election to adjust the effective interest rate on existing troubled debt restructurings using prepayment assumptions on the date of adoption of Topic 326 rather than the prepayment assumptions in effect immediately before the restructuring; (3) Disclosure relief will be extended for accrued interest receivable balances to additional relevant disclosures involving amortized cost basis; (4) An entity should assess whether it reasonably expects the borrower will be able to continually replenish collateral securing the financial asset to apply the practical expedient. The amendments clarify that an entity applying the practical expedient should estimate expected credit losses for any difference between the amount of the amortized cost basis that is greater than the fair value of the collateral securing the financial asset (that is, the unsecured portion of the amortized cost basis). An entity may determine that the expectation of nonpayment for the amount of the amortized cost basis equal to the fair value of the collateral securing the financial asset is zero. In March 2022, the FASB issued ASU 2022-02 which clarified the treatment of accrued interest when measuring credit losses. The amendments in this Update eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Upon adoption, Salisbury will apply the standards’ provisions as a cumulative effect adjustment to retained earnings as of the first reporting period in which the guidance is effective. Salisbury anticipates that the adoption of ASU 2016-13 and related updates will impact the consolidated financial statements as it relates to the balance in the allowance for loan losses. Salisbury has engaged a third-party software vendor to model the allowance for loan losses in conformance with this ASU. Salisbury will continue to refine this model and assess the impact to its consolidated financial statements. The Bank is working towards the completion of its ACL methodology. To estimate the ACL for loans and off-balance sheet credit exposures, such as unfunded loan commitments, Salisbury will utilize a discounted cash flow model that contains additional assumptions to calculate credit losses over the estimated life of financial assets and off-balance sheet credit exposures and will include the impact of forecasted economic conditions. The estimate is expected to include a one-year reasonable and supportable forecast period and thereafter a one-year reversion period to the historical mean of its macroeconomic assumption. The estimate will also include qualitative factors that may not be reflected in quantitatively derived results to ensure that the ACL reflects a reasonable estimate of current expected credit losses. The Bank is currently refining various ACL assumptions and running parallel calculations on a monthly basis. Salisbury estimates that under the CECL framework, the ACL would be $11.7 million compared with the allowance for loan losses of $12.9 million reported on the consolidated balance sheet at March 31, 2022. In addition, Salisbury estimates that the ACL for unfunded commitments would be approximately $0.9 million compared with the allowance of $0.1 million recorded on its consolidated balance sheet as of March 31, 2022. Salisbury will continue to refine its ACL methodology prior to implementation of CECL on January 1, 2023. In addition, the estimated ACL and allowance for unfunded commitments under both the Incurred Loss method and CECL will be affected by various factors, which include but are not limited to, changes in the composition and balance of Salisbury’s loan portfolio and unfunded commitments, changes to internal risk ratings of borrowers, changes to the risk-profile of the loan portfolio, changes in various macro-economic indicators, the impact of COVID-19 and geo-political events on the business environment, and other factors. Based on the credit quality of Salisbury’s existing available for sale debt securities portfolio, which primarily consists of obligations of U.S. government agency and U.S. government-sponsored enterprise securities, including mortgage-backed securities, Salisbury does not expect the adoption of ASU 2016-13, as it relates to debt securities, to be significant. For available for sale debt securities with unrealized losses, credit losses will be recognized as an allowance rather than a reduction in the amortized cost of the securities. As a result, improvements to estimated credit losses will be recognized immediately in earnings rather than as interest income over time. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848).” In response to the risk of cessation of the London Interbank Offered Rate (LIBOR) as a reference rate, this ASU clarifies the scope of Topic 848 so that derivatives affected by this transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. An entity may elect to apply the amendments in this ASU on a full retrospective basis as of any date from the beginning interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that the financial statements are available to be issued. The transition from LIBOR is not expected to have a material impact on Salisbury’s Consolidated Financial Statements. In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815) Fair Value Hedging – Portfolio Layer Method.” The amendments in this update clarified the following: (1) The current last-of-layer method that permits only one hedged layer has been expanded to allow multiple hedged layers of a single closed portfolio. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method; (2) The scope of the portfolio layer method has been expanded to include non-pre-payable financial assets; (3) Eligible hedging instruments in a single-layer hedge may include spot-starting or forward-starting constant-notional swaps, or spot-or forward-starting amortizing-notional swaps and that the number of hedged layers (that is, single or multiple) corresponds with the number of hedges designated; (4) Additional guidance is provided on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method whether a single hedged layer or multiple hedged layers are designated; and (5) How hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted for any entity that has adopted the amendments in ASU 2017-12 for the corresponding period. Salisbury does not expect the implementation of ASU 2022-01 to have a material impact on its consolidated financial statements. |
NOTE 2 - SECURITIES
NOTE 2 - SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
Note 2 - Securities | |
NOTE 2 - SECURITIES | NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value March 31, 2022 Available-for-sale U.S. Treasury $ 20,243 $ — $ 1,140 $ 19,103 U.S. Government Agency notes 33,013 119 1,199 31,933 Municipal bonds 51,547 52 3,300 48,299 Mortgage-backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 80,554 37 3,795 76,796 Collateralized mortgage obligations: U.S. Government agencies 27,202 7 1,289 25,920 Corporate bonds 13,750 39 188 13,601 Total securities available-for-sale $ 226,309 $ 254 $ 10,911 $ 215,652 CRA mutual fund $ 862 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,077 $ — $ — $ 1,077 (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value December 31, 2021 Available-for-sale U.S. Treasury $ 15,301 $ 12 $ 182 $ 15,131 U.S. Government Agency notes 31,623 237 256 31,604 Municipal bonds 46,469 1,557 204 47,822 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 74,703 643 805 74,541 Collateralized mortgage obligations: U.S. Government agencies 20,948 135 185 20,898 Corporate bonds 12,250 158 8 12,400 Total securities available-for-sale $ 201,294 $ 2,742 $ 1,640 $ 202,396 CRA mutual fund $ 901 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,397 $ — $ — $ 1,397 Salisbury sold $ 17.7 210 44 The following table summarizes the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: Less than 12 Months 12 Months or Longer Total March 31, 2022 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 19,103 $ 1,140 $ — $ — $ 19,103 $ 1,140 U.S. Government Agency notes 20,669 1,159 4,867 40 25,536 1,199 Municipal bonds 42,942 3,242 493 58 43,435 3,300 Mortgage- backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 58,882 2,945 12,697 850 71,579 3,795 Collateralized mortgage obligations: U.S. Government agencies 22,414 1,289 — — 22,414 1,289 Corporate bonds 5,312 188 — — 5,312 188 Total temporarily impaired securities $ 169,322 $ 9,963 $ 18,057 $ 948 $ 187,379 $ 10,911 Less than 12 Months 12 Months or Longer Total December 31, 2021 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 12,155 $ 182 $ — $ — $ 12,155 $ 182 U.S. Government Agency notes 22,137 235 2,019 21 24,156 256 Municipal bonds 12,496 204 552 — 13,048 204 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises 52,619 740 3,195 65 55,814 805 Collateralized mortgage obligations 11,554 185 — — 11,554 185 Corporate bonds 1,742 8 — — 1,742 8 Total temporarily impaired securities $ 112,703 $ 1,554 $ 5,766 $ 86 $ 118,469 $ 1,640 The table below presents the amortized cost, fair value and tax equivalent yield of securities, by maturity. Debt securities issued by U.S. Government agencies (SBA securities), MBS, and CMOS are disclosed separately in the table below as these securities may prepay prior to the scheduled contractual maturity dates. March 31, 2022 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Treasury After 1 year but within 5 years $ 6,918 $ 6,729 1.48 % After 5 year but within 10 years 13,325 12,374 1.17 Total 20,243 19,103 1.28 U.S. Government Agency notes After 1 year but within 5 years 996 930 1.09 After 5 year but within 10 years 14,913 13,921 1.24 Total 15,909 14,851 1.23 Municipal bonds After 1 year but within 5 years 512 490 1.74 After 5 year but within 10 years 12,789 11,893 2.38 After 10 years but within 15 years 12,393 11,547 2.38 After 15 years 25,853 24,369 2.54 Total 51,547 48,299 2.45 Mortgage-backed securities and Collateralized mortgage obligations Securities not due at a single maturity date 124,860 119,798 1.91 Total 124,860 119,798 1.91 Corporate bonds After 5 years but within 10 years 13,250 13,101 4.33 After 10 years but within 15 years 500 500 4.75 Total 13,750 13,601 4.35 Securities available-for-sale $ 226,309 $ 215,652 2.16 % (1) Salisbury evaluates debt securities for other-than-temporary impairment (“OTTI”) when the fair value of a security is less than its amortized cost basis at the balance sheet date. As part of this process, Salisbury considers whether it has the intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, Salisbury recognizes an OTTI charge to earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. For securities that meet neither of these conditions, an analysis is performed to determine if any of these securities are at risk for OTTI. The following summarizes, by security type, the basis for evaluating if the applicable debt securities were OTTI at March 31, 2022. U.S. Treasury notes: The contractual cash flows are guaranteed by the U.S. government. Eleven securities had unrealized losses at March 31, 2022, which approximated 5.63% of their amortized cost. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality since time of purchase. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Management evaluated the impairment status of these debt securities, and concluded that the gross unrealized losses were temporary in nature. Therefore, management does not consider these investments to be other-than temporarily impaired at March 31, 2022. U.S. Government Agency notes: The contractual cash flows are guaranteed by the U.S. government. Twenty-five securities had unrealized losses at March 31, 2022, which approximated 4.49% of their amortized cost. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality since time of purchase. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Management evaluated the impairment status of these debt securities, and concluded that the gross unrealized losses were temporary in nature. Therefore, management does not consider these investments to be other-than temporarily impaired at March 31, 2022. Municipal bonds: Salisbury performed a detailed analysis of the municipal bond portfolio. Fifty-four securities had unrealized losses at March 31, 2022, which approximated 7.06% of their amortized cost. Management believes the unrealized loss position is attributable to interest rate and spread movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Management evaluated the impairment status of these debt securities, and concluded that the gross unrealized losses were temporary in nature. Therefore, management does not consider these investments to be other-than temporarily impaired at March 31, 2022. U.S. Government agency and U.S. Government-sponsored mortgage-backed securities and collateralized mortgage obligations: The contractual cash flows are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Ninety-five securities had unrealized losses at March 31, 2022, which approximated 5.13% of their amortized cost. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Therefore, management does not consider these investments to be other-than-temporarily impaired at March 31, 2022. Corporate bonds: Salisbury regularly monitors and analyzes its corporate bond portfolio for credit quality. Seven securities had unrealized losses at March 31, 2022, which approximated 3.41% of their amortized cost. Management believes the unrealized loss position is attributable to interest rate and spread movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Management evaluated the impairment status of these debt securities, and concluded that the gross unrealized losses were temporary in nature. Therefore, management does not consider these investments to be other-than temporarily impaired at March 31, 2022. The Federal Home Loan Bank of Boston (FHLBB) is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Bank currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Bank’s FHLBB stock as of March 31, 2022. Future deterioration of the FHLBB’s capital levels could require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock. |
NOTE 3 _ LOANS
NOTE 3 – LOANS | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
NOTE 3 – LOANS | NOTE 3 – LOANS The composition of loans receivable is as follows: (In thousands) March 31, 2022 December 31, 2021 Residential 1-4 family $ 381,207 $ 373,131 Residential 5+ multifamily 53,376 52,325 Construction of residential 1-4 family 20,818 19,738 Home equity lines of credit 23,276 23,270 Residential real estate 478,677 468,464 Commercial 310,815 310,923 Construction of commercial 65,273 58,838 Commercial real estate 376,088 369,761 Farm land 2,778 2,807 Vacant land 14,710 14,182 Real estate secured 872,253 855,214 Commercial and industrial ex PPP Loans 163,832 169,543 PPP Loans 13,666 25,589 Total Commercial and industrial 177,498 195,132 Municipal 14,263 16,534 Consumer 14,356 12,547 Loans receivable, gross 1,078,370 1,079,427 Deferred loan origination costs, net 761 285 Allowance for loan losses (12,915 ) (12,962 ) Loans receivable, net $ 1,066,216 $ 1,066,750 Loans held-for-sale Residential 1-4 family $ 1,070 $ 2,684 Salisbury has entered into loan participation agreements with other banks and transferred a portion of its originated loans to the participating banks. Transferred amounts are accounted for as sales and excluded from Salisbury’s loans receivable. Salisbury and its participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. Salisbury services the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments (net of servicing fees) to participating lenders and disburses required escrow funds to relevant parties. Salisbury also has entered into loan participation agreements with other banks and purchased a portion of the other banks’ originated loans. Purchased amounts are accounted for as loans without recourse to the originating bank. Salisbury and its originating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The originating banks service the loans on behalf of the participating lenders and, as such, collect cash payments from the borrowers, remit payments (net of servicing fees) to participating lenders and disburse required escrow funds to relevant parties. At March 31, 2022 and December 31, 2021, Salisbury serviced commercial loans for other banks under loan participation agreements totaling $ 77.3 77.5 Concentrations of Credit Risk Salisbury's loans consist primarily of residential and commercial real estate loans located principally in Litchfield County, Connecticut; Dutchess, Orange and Ulster Counties, New York; and Berkshire County, Massachusetts, which constitute Salisbury's service area. Salisbury offers a broad range of loan and credit facilities to borrowers in its service area, including residential mortgage loans, commercial real estate loans, construction loans, working capital loans, equipment loans, and a variety of consumer loans, including home equity lines of credit, installment loans and collateral loans. All residential and commercial mortgage loans are collateralized by first or second mortgages on real estate. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy as well as the health of the real estate economic sector in Salisbury’s market area. Salisbury’s commercial loan portfolio is comprised of loans to diverse industries, several of which may experience operating challenges due to the COVID-19 virus pandemic (“virus”). Approximately 40% of the Bank’s commercial loan portfolio are to entities who operate rental properties, which include commercial strip malls, smaller rental units as well as multi-unit dwellings. Approximately 12% of the Bank’s commercial loans are to entities in the hospitality industry, which includes hotels, bed & breakfast inns and restaurants. Approximately 9% of the Bank’s commercial loans are to educational institutions and approximately 6% of Salisbury’s commercial loans are to entertainment and recreation related businesses, which include camps and amusement parks. Salisbury’s commercial real estate exposure as a percentage of the Bank’s total risk-based capital, which represents Tier 1 plus Tier 2 capital, was approximately 181% as of March 31, 2022 and 179% at December 31, 2021 compared to the regulatory monitoring guideline of 300%. Salisbury’s commercial loan exposure is mitigated by a variety of factors including the personal liquidity of the borrower, real estate and/or non-real estate collateral, U.S. Department of Agriculture or Small Business Administration (“SBA”) guarantees, loan payment deferrals and economic stimulus loans from the U.S. government as a result of the virus, and other factors. Due to the COVID-19 pandemic, the Bank may experience higher loan payment delinquencies and higher loan charge-offs, which could warrant increased provisions for loan losses. Management is currently unable to predict the extent to which the COVID-19 pandemic will impact these and other borrowers. At March 31, 2022 Salisbury had gross PPP loan balances of $ 13 25 For the three months ended March 31, 2022, Salisbury recorded net interest income of $ 46 0.4 232 1.1 Credit Quality Salisbury uses credit risk ratings as part of its determination of the allowance for loan losses. Credit risk ratings categorize loans by common financial and structural characteristics that measure the credit strength of a borrower. The rating model has eight risk rating grades, with each grade corresponding to a progressively greater risk of default. Grades 1 through 4 are considered not criticized and are aggregated as pass rated, and 5 through 8 are criticized as defined by the regulatory agencies. Risk ratings are assigned to differentiate risk within the portfolio and are reviewed on an ongoing basis and revised, if needed, to reflect changes in the borrowers' current financial position and outlook, risk profiles and the related collateral and structural positions. Salisbury sold approximately $ 3.8 Loans rated as "special mention" (5) possess credit deficiencies or potential weaknesses deserving management’s close attention that if left uncorrected may result in deterioration of the repayment prospects for the loans at some future date. Loans rated as "substandard" (6) are loans where the Bank’s position is clearly not protected adequately by borrower current net worth or payment capacity. These loans have well defined weaknesses based on objective evidence and include loans where future losses to the Bank may result if deficiencies are not corrected, and loans where the primary source of repayment such as income is diminished and the Bank must rely on sale of collateral or other secondary sources of collection. Loans rated "doubtful" (7) have the same weaknesses as substandard loans with the added characteristic that the weakness makes collection or liquidation in full, given current facts, conditions, and values, to be highly improbable. The possibility of loss is high, but due to certain important and reasonably specific pending factors, which may work to strengthen the loan, its reclassification as an estimated loss is deferred until its exact status can be determined. Loans classified as "loss" (8) are considered uncollectible and of such little value that continuance as Bank assets is unwarranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this loan even though partial recovery may be made in the future. Management actively reviews and tests its credit risk ratings against actual experience and engages an independent third-party to annually validate its assignment of credit risk ratings. In addition, the Bank’s loan portfolio is examined periodically by its regulatory agencies, the FDIC and the CTDOB. The composition of loans receivable by risk rating grade is as follows: (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2022 Residential 1-4 family $ 376,063 $ 3,132 $ 2,012 $ — $ — $ 381,207 Residential 5+ multifamily 53,214 77 85 — — 53,376 Construction of residential 1-4 family 20,818 — — — — 20,818 Home equity lines of credit 23,055 221 — — — 23,276 Residential real estate 473,150 3,430 2,097 — — 478,677 Commercial 274,294 15,949 20,572 — — 310,815 Construction of commercial 65,273 — — — — 65,273 Commercial real estate 339,567 15,949 20,572 — — 376,088 Farm land 1,152 1,206 420 — — 2,778 Vacant land 14,673 37 — — — 14,710 Real estate secured 828,542 20,622 23,089 — — 872,253 Commercial and industrial 174,968 584 1,946 — — 177,498 Municipal 14,263 — — — — 14,263 Consumer 14,354 — 2 — — 14,356 Loans receivable, gross $ 1,032,127 $ 21,206 $ 25,037 $ — $ — $ 1,078,370 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2021 Residential 1-4 family $ 367,225 $ 3,543 $ 2,363 $ — $ — $ 373,131 Residential 5+ multifamily 50,588 79 1,658 — — 52,325 Construction of residential 1-4 family 19,738 — — — — 19,738 Home equity lines of credit 23,037 212 21 — — 23,270 Residential real estate 460,588 3,834 4,042 — — 468,464 Commercial 271,821 16,034 23,068 — — 310,923 Construction of commercial 58,838 — — — — 58,838 Commercial real estate 330,659 16,034 23,068 — — 369,761 Farm land 1,162 1,214 431 — — 2,807 Vacant land 14,143 39 — — — 14,182 Real estate secured 806,552 21,121 27,541 — — 855,214 Commercial and industrial 191,857 688 2,587 — — 195,132 Municipal 16,534 — — — — 16,534 Consumer 12,547 — — — — 12,547 Loans receivable, gross $ 1,027,490 $ 21,809 $ 30,128 $ — $ — $ 1,079,427 The composition of loans receivable by delinquency status is as follows: Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual March 31, 2022 Residential 1-4 family $ 379,534 $ 1,599 $ 59 $ — $ 15 $ 1,673 $ — $ 417 Residential 5+ multifamily 53,376 — — — — — — — Construction of residential 1-4 family 20,818 — — — — — — — Home equity lines of credit 23,210 66 — — — 66 — — Residential real estate 476,938 1,665 59 — 15 1,739 — 417 Commercial 310,356 — 205 — 254 459 — 1,887 Construction of commercial 65,273 — — — — — — — Commercial real estate 375,629 — 205 — 254 459 — 1,887 Farm land 2,778 — — — — — — 420 Vacant land 14,710 — — — — — — — Real estate secured 870,055 1,665 264 — 269 2,198 — 2,724 Commercial and industrial 177,050 — 437 — 11 448 11 28 Municipal 14,263 — — — — — — — Consumer 14,312 22 20 2 — 44 2 — Loans receivable, gross $ 1,075,680 $ 1,687 $ 721 $ 2 $ 280 $ 2,690 $ 13 $ 2,752 Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual December 31, 2021 Residential 1-4 family $ 372,620 $ 223 $ 135 $ 63 $ 90 $ 511 $ — $ 750 Residential 5+ multifamily 51,464 — — — 861 861 — 861 Construction of residential 1-4 family 19,668 — 70 — — 70 — — Home equity lines of credit 23,000 165 98 — 7 270 — 21 Residential real estate 466,752 388 303 63 958 1,712 — 1,632 Commercial 310,331 87 251 — 254 592 — 1,924 Construction of commercial 58,838 — — — — — — — Commercial real estate 369,169 87 251 — 254 592 — 1,924 Farm land 2,807 — — — — — — 432 Vacant land 14,182 — — — — — — — Real estate secured 852,910 475 554 63 1,212 2,304 — 3,988 Commercial and industrial 194,838 250 32 1 11 294 11 200 Municipal 16,534 — — — — — — — Consumer 12,503 40 4 — — 44 — — Loans receivable, gross $ 1,076,785 $ 765 $ 590 $ 64 $ 1,223 $ 2,642 $ 11 $ 4,188 Troubled Debt Restructurings (TDRs) There were no troubled debt restructurings in the first quarter of 2022 or in the three months ended March 31, 2021. Salisbury currently does not have any commitments to lend additional funds to TDR loans. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Three months ended March 31, 2022 Three months ended March 31, 2021 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,846 $ 236 $ (19 ) $ — $ 3,063 $ 2,646 $ 208 $ (9 ) $ 1 $ 2,430 Residential 5+ multifamily 817 234 (231 ) — 820 686 (64 ) — — 622 Construction of residential 1-4 family 186 9 — — 195 65 12 — — 77 Home equity lines of credit 198 2 (2 ) — 198 252 (57 ) — — 195 Residential real estate 4,047 481 (252 ) — 4,276 3,649 (317 ) (9 ) 1 3,324 Commercial 5,416 (117 ) (103 ) — 5,196 6,546 530 (6 ) 10 7,080 Construction of commercial 1,025 114 — — 1,139 596 (12 ) — — 584 Commercial real estate 6,441 (3 ) (103 ) — 6,335 7,142 518 (6 ) 10 7,664 Farm land 21 (2 ) — — 19 59 (9 ) — — 50 Vacant land 95 15 — — 110 180 (71 ) — — 109 Real estate secured 10,604 49 (355 ) — 10,740 11,030 121 (15 ) 11 11,147 Commercial and industrial 1,364 (143 ) (46 ) 1 1,176 1,397 (28 ) — — 1,369 Municipal 31 (4 ) — — 27 43 — — — 43 Consumer 82 33 (15 ) 5 105 77 (3 ) (24 ) 2 52 Unallocated 881 (14 ) — — 867 1,207 68 — — 1,275 Totals $ 12,962 $ 363 $ (416 ) $ 6 $ 12,915 $ 13,754 $ 158 $ (39 ) $ 13 $ 13,886 Charge-offs for first quarter 2022 included a write-down of $ 374 3.8 239 The composition of loans receivable and the allowance for loan losses is as follows: (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance March 31, 2022 Residential 1-4 family $ 379,269 $ 3,063 $ 1,938 $ — $ 381,207 $ 3,063 Residential 5+ multifamily 53,291 820 85 — 53,376 820 Construction of residential 1-4 family 20,818 195 — — 20,818 195 Home equity lines of credit 23,276 198 — — 23,276 198 Residential real estate 476,654 4,276 2,023 — 478,677 4,276 Commercial 307,548 5,173 3,267 23 310,815 5,196 Construction of commercial 65,273 1,139 — — 65,273 1,139 Commercial real estate 372,821 6,312 3,267 23 376,088 6,335 Farm land 2,358 19 420 — 2,778 19 Vacant land 14,710 110 — — 14,710 110 Real estate secured 866,543 10,717 5,710 23 872,253 10,740 Commercial and industrial 177,394 1,173 104 3 177,498 1,176 Municipal 14,263 27 — — 14,263 27 Consumer 14,356 105 — — 14,356 105 Unallocated allowance — 867 — — — 867 Totals $ 1,072,556 $ 12,889 $ 5,814 $ 26 $ 1,078,370 $ 12,915 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2021 Residential 1-4 family $ 370,558 $ 2,845 $ 2,573 $ 1 $ 373,131 $ 2,846 Residential 5+ multifamily 51,376 817 949 — 52,325 817 Construction of residential 1-4 family 19,738 186 — — 19,738 186 Home equity lines of credit 23,249 198 21 — 23,270 198 Residential real estate 464,921 4,046 3,543 1 468,464 4,047 Commercial 307,377 5,388 3,546 28 310,923 5,416 Construction of commercial 58,838 1,025 — — 58,838 1,025 Commercial real estate 366,215 6,413 3,546 28 369,761 6,441 Farm land 2,375 21 432 — 2,807 21 Vacant land 14,182 95 — — 14,182 95 Real estate secured 847,694 10,575 7,520 29 855,214 10,604 Commercial and industrial 194,856 1,297 276 67 195,132 1,364 Municipal 16,534 31 — — 16,534 31 Consumer 12,547 82 — — 12,547 82 Unallocated allowance — 881 — — — 881 Totals $ 1,071,630 $ 12,866 $ 7,797 $ 96 $ 1,079,427 $ 12,962 The credit quality segments of loans receivable and the allowance for loan losses are as follows: March 31, 2022 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,051,041 $ 10,740 $ — $ — $ 1,051,041 $ 10,740 Potential problem loans 1 21,515 1,282 — — 21,515 1,282 Impaired loans — — 5,814 26 5,814 26 Unallocated allowance — 867 — — — 867 Totals $ 1,072,556 $ 12,889 $ 5,814 $ 26 $ 1,078,370 $ 12,915 December 31, 2021 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,046,614 $ 10,456 $ — $ — $ 1,046,614 $ 10,456 Potential problem loans 1 25,016 1,529 — — 25,016 1,529 Impaired loans — — 7,797 96 7,797 96 Unallocated allowance — 881 — — — 881 Totals $ 1,071,630 $ 12,866 $ 7,797 $ 96 $ 1,079,427 $ 12,962 1 A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the present value of expected cash flows or the fair value of collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment is as follows as of and for the three months ended: Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2022 Residential $ — $ — $ 21 $ — $ — $ 2,023 $ 2,144 $ 2,944 $ 14 Home equity lines of credit — — — — — — — 15 — Residential real estate — — 21 — — 2,023 2,144 2,959 14 Commercial 598 598 602 23 7 2,669 3,214 2,856 11 Construction of commercial — — — — — — — — — Farm land — — — — — 420 447 426 — Vacant land — — — — — — — — — Real estate secured 598 598 623 23 7 5,112 5,805 6,241 25 Commercial and industrial 76 76 146 3 1 28 25 79 — Consumer — — — — — — — — — Totals $ 674 $ 674 $ 769 $ 26 $ 8 $ 5,140 $ 5,830 $ 6,320 $ 25 For the three months ended March 31, 2021, Salisbury recognized income of $ 32 57 Certain data with respect to loans individually evaluated for impairment is as follows as of and for the year ended December 31, 2021: Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2021 Residential $ 43 $ 44 $ 872 $ 1 $ 3 $ 3,480 $ 3,817 $ 3,689 $ 75 Home equity lines of credit — — 17 — — 21 23 131 — Residential real estate 43 44 889 1 3 3,501 3,840 3,820 75 Commercial 608 608 1,678 28 32 2,938 3,493 2,974 62 Construction of commercial — — — — — — — — — Farm land — — — — — 431 447 440 — Vacant land — — 56 — — — — 45 — Real estate secured 651 652 2,623 29 35 6,870 7,780 7,279 137 Commercial and industrial 216 224 309 67 3 60 72 90 — Consumer — — 6 — — — — 13 — Totals $ 867 $ 876 $ 2,938 $ 96 $ 38 $ 6,930 $ 7,852 $ 7,382 $ 137 |
NOTE 4 _ LEASES
NOTE 4 – LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Note 4 Leases | |
NOTE 4 – LEASES | NOTE 4 – LEASES The Bank leases facilities and equipment with various expiration dates. The facilities leases have varying renewal options, generally require fixed annual rent, and provide that real estate taxes, insurance, and maintenance expenses are to be paid by Salisbury. The following table provides the assets and liabilities as of March 31, 2022 and December 31, 2021, as well as the costs of operating and financial leases, which are included in the Bank’s consolidated income statement for the three months ended March 31, 2022 and 2021. (in thousands, except lease term and discount rate) Classification March 31, 2022 December 31, 2021 Assets Operating Other assets $ 966 $ 1,021 Finance Bank premises and equipment 1 4,045 3,791 Total Leased Assets $ 5,011 $ 4,812 Liabilities Operating Other liabilities $ 966 $ 1,021 Finance Finance lease 4,363 4,107 Total lease liabilities $ 5,329 $ 5,128 1 532 496 Lease cost Classification Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Operating leases Premises and equipment $ 74 $ 80 Finance leases: Amortization of leased assets Premises and equipment 35 25 Interest on finance leases Interest expense 41 32 Total lease cost $ 150 $ 137 Weighted Average Remaining Lease Term March 31, 2022 December 31, 2021 Operating leases 7.2 years 6.9 years Financing leases 24.9 years 23.5 years Weighted Average Discount Rate 1 Operating leases 3.71 % 3.61 % Financing leases 3.89 % 4.97 % 1 The following is a schedule by years of the present value of the net minimum lease payments as of March 31, 2022. Future minimum lease payments (in thousands) Operating Leases Finance Leases 2022 $ 162 $ 223 2023 167 304 2024 129 314 2025 137 323 2026 137 334 Thereafter 380 4,968 Total future minimum lease payments 1,112 6,466 Less amount representing interest (146 ) (2,103 ) Total present value of net future minimum lease payments $ 966 $ 4,363 |
NOTE 5 - MORTGAGE SERVICING RIG
NOTE 5 - MORTGAGE SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
NOTE 5 - MORTGAGE SERVICING RIGHTS | NOTE 5 - MORTGAGE SERVICING RIGHTS (in thousands) March 31, 2022 December 31, 2021 Residential mortgage loans serviced for others $ 142,790 $ 140,623 Fair value of mortgage servicing rights 1,267 1,043 Changes in mortgage servicing rights are as follows: Three months ended March 31, (in thousands) 2022 2021 Mortgage Servicing Rights Balance, beginning of period $ 700 $ 621 Originated 55 193 Amortization (1) (39 ) (75 ) Balance, end of period $ 716 $ 739 Valuation Allowance Balance, beginning of period — (9 ) Decrease in impairment reserve (1) — 9 Balance, end of period — — Mortgage servicing rights, net $ 716 $ 739 (1) |
NOTE 6 - PLEDGED ASSETS
NOTE 6 - PLEDGED ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Note 6 - Pledged Assets | |
NOTE 6 - PLEDGED ASSETS | NOTE 6 - PLEDGED ASSETS The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available. (in thousands) March 31, 2022 December 31, 2021 Securities available-for-sale (at fair value) $ 76,334 $ 75,737 Loans receivable (at book value) 368,531 378,845 Total pledged assets $ 444,865 $ 454,582 At March 31, 2022, securities were pledged as follows: $ 68.16 8.16 0.02 |
NOTE 7 _ DERIVATIVES AND HEDGIN
NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2022 | |
Note 7 Derivatives And Hedging Activities | |
NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES | NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives Salisbury is exposed to certain risk arising from both its business operations and economic conditions. The Bank principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Bank manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Bank enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Bank uses derivative financial instruments to manage differences in the amount, timing, and duration of the Bank’s known or expected cash receipts and its known or expected cash payments principally related to its portfolio of loans to first-time home buyers. Fair Value Hedges of Interest Rate Risk The Company is exposed to changes in the fair value of certain pools of its pre-payable fixed-rate assets due to changes in benchmark interest rates. Salisbury uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate, Federal Funds. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for Salisbury receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. As of March 31, 2022 and December 31, 2021, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges: Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (in thousands) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Loans receivable (1) $ 9,953 $ 9,982 $ (47 ) $ (18 ) Total $ 9,953 $ 9,982 $ (47 ) $ (18 ) (1) 36.6 47 10.0 The table below presents the fair value of Salisbury’s derivative financial instrument and its classification on the Balance Sheet as of March 31, 2022 and December 31, 2021. As of March 31, 2022 As of December 31, 2021 (in thousands) Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedge instruments Interest Rate Products $ 10,000 Other assets $ 47 Other Assets $ 18 Total Derivatives designated as hedge instruments $ 47 $ 18 The table below presents the effect of the Company’s derivative financial instruments on the Income Statement for the three months ended March 31, 2022 and 2021. Three months ended Three months ended March 31, 2022 March 31, 2021 (in thousands) Interest Income Interest Expense Interest Income Interest Expense Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ 2 $ — $ 1 $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (28 ) — (2 ) — Derivatives designated as hedging instruments $ 30 $ — $ 3 $ — Credit-Risk Related Contingent Features Salisbury has an agreement with its derivative counterparty that contains a provision where if the Bank defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Bank could also be declared in default on its derivative obligations. The agreement also contains a provision where if the Bank fails to maintain its status as a well / adequate capitalized institution, then Salisbury could be required to post cash or certain marketable securities issued by the U.S. Treasury or U.S. Government-sponsored enterprises as collateral. The minimum amount that Salisbury would have to post as collateral is $250 thousand. As of March 31, 2022, the fair value of derivative was $ 48 |
NOTE 8 _ EARNINGS PER SHARE
NOTE 8 – EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Note 8 Earnings Per Share | |
NOTE 8 – EARNINGS PER SHARE | NOTE 8 – EARNINGS PER SHARE Salisbury defines unvested share-based payment awards that contain non-forfeitable rights to dividends as participating securities that are included in computing earnings per share (EPS) using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic EPS excludes dilution and is computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The following table sets forth the computation of earnings per share (basic and diluted) for the periods indicated: Three months ended March 31, (in thousands, except per share data) 2022 2021 Net income $ 3,568 $ 4,526 Less: Undistributed earnings allocated to participating securities (60 ) (64 ) Net income allocated to common stock $ 3,508 $ 4,462 Weighted-average common shares issued 2,867 2,845 Less: Unvested restricted stock awards (49 ) (40 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,818 2,805 Add: Dilutive effect of stock options and restricted stock units 29 10 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,847 2,815 Earnings per common share (basic) $ 1.24 $ 1.59 Earnings per common share (diluted) $ 1.23 $ 1.59 |
NOTE 9 _ SHAREHOLDERS_ EQUITY
NOTE 9 – SHAREHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Note 9 Shareholders Equity | |
NOTE 9 – SHAREHOLDERS’ EQUITY | NOTE 9 – SHAREHOLDERS’ EQUITY Capital Requirements The Company and the Bank are 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 and discretionary actions by the regulators that, if undertaken, could have a direct material effect on the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific guidelines that involve quantitative measures of its 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. The Bank is subject to capital regulations adopted by the Board of Governors of the Federal Reserve System (FRB) and the FDIC, which implemented the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The required minimum regulatory capital ratios to which the Bank is subject, and the minimum ratios required for the Bank to be categorized as “well capitalized” under the prompt corrective action framework are noted in the table below. In addition, the regulations established a capital conservation buffer of 2.5% effective January 1, 2019. Failure to maintain the capital conservation buffer will limit the ability of the Company and the Bank to pay discretionary bonuses and dividends. At March 31, 2022, the Bank exceeded the minimum requirement for the capital conservation buffer. As of March 31, 2022, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed that categorization. In March 2022, Salisbury announced that its Board of Directors renewed a share repurchase program, which provides for the repurchase of Salisbury’s common stock in amounts up to an aggregate of five percent (5%) of the outstanding shares of Salisbury’s common stock from time to time over the next twelve months. Salisbury has not yet repurchased any shares pursuant to such program. The Bank’s risk-weighted assets at March 31, 2022 and December 31, 2021 were $ 1,113.4 1,085.4 Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2022 Total Capital (to risk-weighted assets) $ 155,665 13.98 % $ 89,075 8.0 % $ 116,911 10.5 % $ 111,344 10.0 % Tier 1 Capital (to risk-weighted assets) 142,567 12.80 66,806 6.0 94,642 8.5 89,075 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 142,567 12.80 50,105 4.5 77,941 7.0 72,374 6.5 Tier 1 Capital (to average assets) $ 142,567 9.66 $ 59,010 4.0 $ 59,010 4.0 $ 73,763 5.0 December 31, 2021 Total Capital (to risk-weighted assets) $ 152,789 14.08 % $ 86,832 8.0 % $ 113,968 10.5 % $ 108,541 10.0 % Tier 1 Capital (to risk-weighted assets) 139,681 12.87 65,124 6.0 92,259 8.5 86,832 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 139,681 12.87 48,843 4.5 75,978 7.0 70,551 6.5 Tier 1 Capital (to average assets) $ 139,681 9.42 $ 59,285 4.0 $ 59,285 4.0 $ 74,106 5.0 Restrictions on Cash Dividends to Common Shareholders Salisbury's ability to pay cash dividends is substantially dependent on the Bank's ability to pay cash dividends to Salisbury. There are certain restrictions on the payment of cash dividends and other payments by the Bank to Salisbury. Under Connecticut law, the Bank cannot declare a cash dividend except from net profits, defined as the remainder of all earnings from current operations. The total of all cash dividends declared by the Bank in any calendar year shall not, unless specifically approved by the Banking Commissioner, exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. FRB Supervisory Letter SR 09-4, February 24, 2009, revised March 30, 2009, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the Federal Reserve and should eliminate, defer, or significantly reduce dividends if (1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (2) the prospective rate of earnings retention is not consistent with capital needs and overall current and prospective financial condition; or (3) the BHC will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. Moreover, a BHC should inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the BHC capital structure. |
NOTE 10 _ BENEFITS
NOTE 10 – BENEFITS | 3 Months Ended |
Mar. 31, 2022 | |
Note 10 Benefits | |
NOTE 10 – BENEFITS | NOTE 10 – BENEFITS Salisbury offers a 401(k) Plan to eligible employees. Under the 401(k) Plan, eligible participants may contribute a percentage of their pay subject to IRS limitations. Salisbury may make discretionary contributions to the Plan. The Plan includes a safe harbor contribution of 3% for all qualifying employees. The Bank’s safe harbor contribution percentage is reviewed annually and, under provisions of the 401(k) Plan, is subject to change in the future. An additional discretionary match may also be made for all employees that meet the 401(k) Plan’s qualifying requirements for such a match. This discretionary matching percentage, if any, is also subject to review under the provisions of the 401(k) Plan. Both the safe harbor and additional discretionary match, if any, vest immediately. Salisbury’s 401(k) Plan expense was $ 294 286 ESOP Salisbury offers an ESOP to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan. Discretionary contributions vest in full upon six years and reflect the following schedule of qualified service: 35 55 Other Retirement Plans Salisbury adopted ASC 715-60, “Compensation - Retirement Benefits - Defined Benefit Plans - Other Postretirement" and recognized a liability for Salisbury’s future postretirement benefit obligations under endorsement split-dollar life insurance arrangements. The total liability for the arrangements included in other liabilities was $ 771 779 8 86 A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. In 2021 and 2020, the Bank awarded seven (7) Executives with discretionary contributions to the plan. Expenses related to this plan for the first three months ended March 31 amounted to $ 47 29 On December 27, 2021, the Board of Directors of Salisbury Bank and Trust Company executed the Salisbury Bank and Trust Company Amended and Restated Non-Qualified Deferred Compensation Plan (the “Plan”), effective as of January 1, 2022. The Plan permits the Board to select certain key employees of the Bank to participate in the Plan, provided that such employees also evidence their participation by execution of a Participation Agreement. Before amendment and restatement, the Plan provided solely for discretionary bank contributions to selected participant’s accounts. The participation agreement sets forth the vesting terms of the discretionary contributions and the “benefit age” at which a participant could retire with a fully vested benefit. The participation agreement also sets forth how a participant’s benefit would be distributed (i.e., in a lump sum or in annual installments over a period of up to 10 years, as selected by the participant). Until distribution, a participant’s account would earn interest as of the last day of the plan year at the highest certificate of deposit rate for that year, compounded annually. The participant’s benefits under the Plan are subject to the vesting schedule set forth in the participant’s participation agreement. Notwithstanding the vesting schedule, the participant’s account balance will become automatically 100% vested upon involuntary termination without cause, death, disability or a change in control. The amended and restated Plan also allows participant deferrals and provides greater flexibility in participant elections and investment options. In addition to employer discretionary contributions, participants will be entitled to defer up to 50% of their base salary and up to 100% of their discretionary bonuses and cash incentive compensation, however, such base salary deferrals and bonus and cash incentive deferrals will not commence before January 1, 2023. The Plan will permit the Compensation Committee to add non-employee directors as participants. If implemented, non-employee directors will be entitled to make elective deferrals of up to 50% of their annual retainer and committee fees. This provision may not be implemented for plan year 2022. For plan years commencing after December 31, 2021, participants are required to enter into a “Participation Agreement” on initial participation that will set forth, among other things, the vesting schedule for any discretionary contributions received and the participant’s benefit age (i.e. the eligible “retirement age”). A participant will also be required to enter into an “Annual Election Form” which will set forth (i) the participant’s distribution elections under various circumstances and (ii) commencing in 2023, the amount of a participant’s elective deferrals of base salary and/or discretionary bonus or incentive compensation. Under the Amended and Restated Plan, each discretionary contribution would vest based on a rolling five-year vesting schedule, so that in the sixth year of participation the first year’s contribution would be 100% vested and the fifth-year contribution would be 20% vested. Vesting of discretionary contributions generally accelerates when a participant reaches benefit age, however, the Bank can delegate one or more discretionary contributions for a particular person as contributions for which vesting would not automatically accelerate. The amended and restated Plan provides additional distribution options, including distributions in the event of an unforeseeable emergency and on the occurrence of a specified date before separation from service, and allows a participant to elect for each year’s contributions the manner in which such distributions will be paid. Installment distributions can be made in monthly, quarterly or annual installments. Payment of benefits under the Plan, other than benefits payable as a result of base salary deferrals, are conditioned on the participant’s covenant to comply with non-compete, non-solicitation and non-disclosure provisions for a period of one year following the participant’s separation from service. The Bank will establish a grantor trust to hold the assets of the Plan. Until distributed, the assets of the Plan are not legally owned by the participants. Salisbury anticipates that contributions will be made under the amended and restated Plan beginning in second quarter 2022. Management Agreements: Salisbury or the Bank has entered into various management agreements with its named executive officers (“NEOs”), including a severance agreement with Mr. Cantele, President and Chief Executive Officer, a change in control agreement with Mr. Albero, Executive Vice President and Chief Financial Officer, and a severance agreement with Mr. Davies, President of the New York Region and Chief Lending Officer. In addition to these agreements, Salisbury has change in control agreements or a severance agreement, with change in control provisions, with eleven other executives with payouts ranging from 0.5 to 1.0 times base salary, annual cash bonus and other benefits. Such agreements, and their subsequent amendments, are designed to allow Salisbury to retain the services of the designated executives while reducing, to the extent possible, unnecessary disruptions to Salisbury’s operations. |
NOTE 11 _ LONG TERM INCENTIVE P
NOTE 11 – LONG TERM INCENTIVE PLANS | 3 Months Ended |
Mar. 31, 2022 | |
Note 11 Long Term Incentive Plans | |
NOTE 11 – LONG TERM INCENTIVE PLANS | NOTE 11 – LONG TERM INCENTIVE PLANS Restricted stock On February 28, 2022, Salisbury granted a total of 14,350 813 188 132 1,550 646 Performance-based restricted stock units On March 29, 2019, the Compensation Committee granted performance-based restricted stock units (RSU) pursuant to the 2017 Long-Term Incentive Plan to further align compensation with the Bank’s performance. This RSU plan replaced the Bank’s Phantom Stock Appreciation Units plan (Phantom). The performance goal for awards granted under the RSU plan in 2019 was based on the increase in the Bank’s tangible book value by $3.50 per share over the performance period for threshold performance. On March 29, 2022, these awards vested at 150% of target for achieving in excess of target payout performance ($5.00 increase in tangible book value per share). On July 29, 2020, the Compensation Committee granted an additional 7,250 units under the RSU plan. The performance goal for this tranche is based on the relative increase in the Bank’s tangible book value compared with a pre-determined group of peer banks over the performance period for threshold performance. Vesting will range from 50% of target for achieving threshold performance, to 100% of target for achieving tangible book value growth of at least 50% but less than 55% of the peer group, to 150% of target for achieving in excess of target payout performance and, if the performance goal is achieved. On June 23, 2021, the Compensation Committee granted an additional 7,400 units under the RSU plan. The performance goal for this tranche is based on the increase in the Bank’s tangible book value by $7.00 per share over the performance period for threshold performance. Vesting will range from 75% of target for achieving threshold performance, to 100% of target for achieving target payout performance ($9.00 increase in tangible book value per share) to 150% of target for achieving in excess of target payout performance and, if the performance goals are achieved, vesting will occur no later than March 15, 2024. On February 28, 2022, the Compensation Committee of the Board of Directors approved grants of performance-based restricted stock units to its NEOs and other key employees under the Company’s 2017 Long Term Incentive Plan. The Compensation Committee granted a total of 6,950 The fair value of the awards granted under the RSU plan at the grant date was $ 394 354 97 71 Short Term Incentive Plan (STIP) Salisbury offers a short-term discretionary compensation plan to eligible employees on an annual basis. Under this incentive plan, Salisbury may reward employees with cash compensation if certain pre-determined Bank and individual performance goals have been achieved. The STIP expense, which is included in compensation expenses, totaled $ 267 238 Options Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In the first quarter 2022, no stock options were exercised. In 2021, 1,755 17.04 |
NOTE 12 _ FAIR VALUE OF ASSETS
NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Note 12 Fair Value Of Assets And Liabilities | |
NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES | NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES Salisbury uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale and the CRA mutual fund are recorded at fair value on a recurring basis. Additionally, from time to time, other assets are recorded at fair value on a nonrecurring basis, such as loans held for sale, collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. Salisbury adopted ASC 820-10, “Fair Value Measurement - Overall,” which provides a framework for measuring fair value under generally accepted accounting principles. This guidance permitted Salisbury the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. Salisbury did not elect fair value treatment for any financial assets or liabilities upon adoption. In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury’s market assumptions. These two types of inputs have created the following fair value hierarchy: Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2. Significant other observable inputs. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. Level 3. Significant unobservable inputs. Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. The following is a description of valuation methodologies for assets recorded at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. Securities available-for-sale and the CRA mutual fund. Securities available-for-sale and the CRA mutual fund are recorded at fair value on a recurring basis. Level 1 securities include exchange-traded equity securities. Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of the U.S. Treasury and U.S. government-sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, municipal bonds, SBA bonds, corporate bonds and certain preferred equities. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. Derivative financial instruments. The fair value of the interest rate swap is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. Other real estate owned acquired through foreclosure or repossession is adjusted to fair value less costs to sell upon transfer out of loans. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. Assets held for sale. The fair value of assets held for sale is based on independent market prices, appraised values or the contractual selling price. Assets measured at fair value are as follows: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value March 31, 2022 Assets at fair value on a recurring basis U.S. Treasury $ — $ 19,103 $ — $ 19,103 U.S. Government Agency notes — 31,933 — 31,933 Municipal bonds — 48,299 — 48,299 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 76,796 — 76,796 Collateralized mortgage obligations: U.S. Government agencies — 25,920 — 25,920 Corporate bonds — 13,601 — 13,601 Securities available-for-sale $ — $ 215,652 $ — $ 215,652 CRA mutual funds 862 — — 862 Derivative financial instruments — 47 — 47 December 31, 2021 Assets at fair value on a recurring basis U.S. Treasury $ — $ 15,131 $ — $ 15,131 U.S. Government Agency notes — 31,604 — 31,604 Municipal bonds — 47,822 — 47,822 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 74,541 — 74,541 Collateralized mortgage obligations: U.S. Government agencies — 20,898 — 20,898 Corporate bonds — 12,400 — 12,400 Securities available-for-sale $ — $ 202,396 $ — $ 202,396 CRA mutual fund 901 — — 901 Derivative financial instruments — 18 — 18 Assets at fair value on a non-recurring basis Assets held for sale 1 $ 700 $ — $ — $ 700 1 Carrying values and estimated fair values of financial instruments are as follows: (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 March 31, 2022 Financial Assets Cash and cash equivalents $ 98,861 $ 98,861 $ 98,861 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 Securities available-for-sale, net 215,652 215,652 — 215,652 — CRA mutual fund 862 862 862 — — Federal Home Loan Bank of Boston stock 1,077 1,077 — 1,077 — Loans held-for-sale 1,070 1,077 — — 1,077 Loans receivable, net 1,066,216 1,055,745 — — 1,055,745 Accrued interest receivable 5,895 5,895 — 5,895 — Cash surrender value of life insurance policies 27,900 27,900 — 27,900 — Derivative financial instruments 47 47 — 47 — Financial Liabilities Demand (non-interest-bearing) $ 370,082 $ 370,082 $ — $ 370,082 $ — Demand (interest-bearing) 233,893 233,893 — 233,893 — Money market 317,462 317,462 — 317,462 — Savings and other 240,824 240,824 — 240,824 — Certificates of deposit 128,213 128,663 — 128,663 — Deposits 1,290,474 1,290,924 — 1,290,924 — Repurchase agreements 8,161 8,161 — 8,161 — FHLBB advances 419 419 — 419 — Subordinated debt 24,488 24,409 — 24,409 — Note payable 159 162 — 162 — Finance lease obligation 4,363 4,312 — — 4,312 Accrued interest payable 37 37 — 37 — December 31, 2021 Financial Assets Cash and cash equivalents $ 175,335 $ 175,335 $ 175,335 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 202,396 202,396 — 202,396 — CRA mutual fund 901 901 901 — — Federal Home Loan Bank of Boston stock 1,397 1,397 — 1,397 — Loans held-for-sale 2,684 2,721 — — 2,721 Loans receivable, net 1,066,750 1,066,733 — — 1,066,733 Accrued interest receivable 6,260 6,260 — 6,260 — Cash surrender value of life insurance policies 27,738 27,738 — 27,738 — Derivative financial instruments 18 18 — 18 — Financial Liabilities Demand (non-interest-bearing) $ 416,073 $ 416,073 $ — $ 416,073 $ — Demand (interest-bearing) 233,600 233,600 — 233,600 — Money market 330,436 330,436 — 330,436 — Savings and other 237,075 237,075 — 237,075 — Certificates of deposit 119,009 119,716 — 119,716 — Deposits 1,336,193 1,336,900 — 1,336,900 — Repurchase agreements 11,430 11,430 — 11,430 — FHLBB advances 7,656 7,714 — 7,714 — Subordinated debt 24,474 24,409 — 24,409 — Note payable 170 171 — 171 — Finance lease liability 4,107 4,223 — — 4,223 Accrued interest payable 49 49 — 49 — |
NOTE 13 _ SUBSEQUENT EVENTS
NOTE 13 – SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
NOTE 13 – SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS On April 20, 2022 the Board of Directors declared a quarterly dividend of $ 0.32 |
NOTE 1 - BASIS OF PRESENTATION
NOTE 1 - BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Note 1 - Basis Of Presentation | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. In April 2019, the FASB issued ASU 2019-04 which clarified the treatment of accrued interest when measuring credit losses. Entities may: (1) measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets; (2) make various accounting policy elections regarding the treatment of accrued interest receivable; or (3) elect a practical expedient to disclose separately the total amount of accrued interest included in the amortized cost basis as a single balance to meet certain disclosure requirements. ASU 2019-04 also clarified that expected recoveries of amounts previously written off and expected to be written off should be included in the valuation account and should not exceed the aggregate of amounts previously written off and expected to be written off by the entity. In addition, for collateral dependent financial assets, the amendments clarify that an allowance for credit losses that is added to the amortized cost basis of the financial asset(s) should not exceed amounts previously written off. In November 2019, the FASB issued ASU 2019-10, which delayed the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022 for smaller reporting companies, although early adoption is permitted. Salisbury meets the definition of a smaller reporting company. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” which clarified or addressed specific issues about certain aspects of the amendments in ASU 2016-13. The amendments in ASU 2019-11 clarified the following: (1) The allowance for credit losses (ACL) for purchased financial assets with credit deterioration should include expected recoveries of amounts previously written off and expected to be written off by the entity and should not exceed the aggregate of amounts of the amortized cost basis previously written off and expected to be written off by an entity. In addition, the amendments clarify that when a method other than a discounted cash flow method is used to estimate expected credit losses, expected recoveries should not include any amounts that result in an acceleration of the noncredit discount. An entity may include increases in expected cashflows after acquisition; (2) Transition relief will be provided by permitting entities an accounting policy election to adjust the effective interest rate on existing troubled debt restructurings using prepayment assumptions on the date of adoption of Topic 326 rather than the prepayment assumptions in effect immediately before the restructuring; (3) Disclosure relief will be extended for accrued interest receivable balances to additional relevant disclosures involving amortized cost basis; (4) An entity should assess whether it reasonably expects the borrower will be able to continually replenish collateral securing the financial asset to apply the practical expedient. The amendments clarify that an entity applying the practical expedient should estimate expected credit losses for any difference between the amount of the amortized cost basis that is greater than the fair value of the collateral securing the financial asset (that is, the unsecured portion of the amortized cost basis). An entity may determine that the expectation of nonpayment for the amount of the amortized cost basis equal to the fair value of the collateral securing the financial asset is zero. In March 2022, the FASB issued ASU 2022-02 which clarified the treatment of accrued interest when measuring credit losses. The amendments in this Update eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Upon adoption, Salisbury will apply the standards’ provisions as a cumulative effect adjustment to retained earnings as of the first reporting period in which the guidance is effective. Salisbury anticipates that the adoption of ASU 2016-13 and related updates will impact the consolidated financial statements as it relates to the balance in the allowance for loan losses. Salisbury has engaged a third-party software vendor to model the allowance for loan losses in conformance with this ASU. Salisbury will continue to refine this model and assess the impact to its consolidated financial statements. The Bank is working towards the completion of its ACL methodology. To estimate the ACL for loans and off-balance sheet credit exposures, such as unfunded loan commitments, Salisbury will utilize a discounted cash flow model that contains additional assumptions to calculate credit losses over the estimated life of financial assets and off-balance sheet credit exposures and will include the impact of forecasted economic conditions. The estimate is expected to include a one-year reasonable and supportable forecast period and thereafter a one-year reversion period to the historical mean of its macroeconomic assumption. The estimate will also include qualitative factors that may not be reflected in quantitatively derived results to ensure that the ACL reflects a reasonable estimate of current expected credit losses. The Bank is currently refining various ACL assumptions and running parallel calculations on a monthly basis. Salisbury estimates that under the CECL framework, the ACL would be $11.7 million compared with the allowance for loan losses of $12.9 million reported on the consolidated balance sheet at March 31, 2022. In addition, Salisbury estimates that the ACL for unfunded commitments would be approximately $0.9 million compared with the allowance of $0.1 million recorded on its consolidated balance sheet as of March 31, 2022. Salisbury will continue to refine its ACL methodology prior to implementation of CECL on January 1, 2023. In addition, the estimated ACL and allowance for unfunded commitments under both the Incurred Loss method and CECL will be affected by various factors, which include but are not limited to, changes in the composition and balance of Salisbury’s loan portfolio and unfunded commitments, changes to internal risk ratings of borrowers, changes to the risk-profile of the loan portfolio, changes in various macro-economic indicators, the impact of COVID-19 and geo-political events on the business environment, and other factors. Based on the credit quality of Salisbury’s existing available for sale debt securities portfolio, which primarily consists of obligations of U.S. government agency and U.S. government-sponsored enterprise securities, including mortgage-backed securities, Salisbury does not expect the adoption of ASU 2016-13, as it relates to debt securities, to be significant. For available for sale debt securities with unrealized losses, credit losses will be recognized as an allowance rather than a reduction in the amortized cost of the securities. As a result, improvements to estimated credit losses will be recognized immediately in earnings rather than as interest income over time. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848).” In response to the risk of cessation of the London Interbank Offered Rate (LIBOR) as a reference rate, this ASU clarifies the scope of Topic 848 so that derivatives affected by this transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. An entity may elect to apply the amendments in this ASU on a full retrospective basis as of any date from the beginning interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that the financial statements are available to be issued. The transition from LIBOR is not expected to have a material impact on Salisbury’s Consolidated Financial Statements. In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815) Fair Value Hedging – Portfolio Layer Method.” The amendments in this update clarified the following: (1) The current last-of-layer method that permits only one hedged layer has been expanded to allow multiple hedged layers of a single closed portfolio. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method; (2) The scope of the portfolio layer method has been expanded to include non-pre-payable financial assets; (3) Eligible hedging instruments in a single-layer hedge may include spot-starting or forward-starting constant-notional swaps, or spot-or forward-starting amortizing-notional swaps and that the number of hedged layers (that is, single or multiple) corresponds with the number of hedges designated; (4) Additional guidance is provided on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method whether a single hedged layer or multiple hedged layers are designated; and (5) How hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted for any entity that has adopted the amendments in ASU 2017-12 for the corresponding period. Salisbury does not expect the implementation of ASU 2022-01 to have a material impact on its consolidated financial statements. |
NOTE 2 - SECURITIES (Tables)
NOTE 2 - SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Note 2 - Securities | |
Marketable Securities [Table Text Block] | (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value March 31, 2022 Available-for-sale U.S. Treasury $ 20,243 $ — $ 1,140 $ 19,103 U.S. Government Agency notes 33,013 119 1,199 31,933 Municipal bonds 51,547 52 3,300 48,299 Mortgage-backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 80,554 37 3,795 76,796 Collateralized mortgage obligations: U.S. Government agencies 27,202 7 1,289 25,920 Corporate bonds 13,750 39 188 13,601 Total securities available-for-sale $ 226,309 $ 254 $ 10,911 $ 215,652 CRA mutual fund $ 862 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,077 $ — $ — $ 1,077 (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value December 31, 2021 Available-for-sale U.S. Treasury $ 15,301 $ 12 $ 182 $ 15,131 U.S. Government Agency notes 31,623 237 256 31,604 Municipal bonds 46,469 1,557 204 47,822 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 74,703 643 805 74,541 Collateralized mortgage obligations: U.S. Government agencies 20,948 135 185 20,898 Corporate bonds 12,250 158 8 12,400 Total securities available-for-sale $ 201,294 $ 2,742 $ 1,640 $ 202,396 CRA mutual fund $ 901 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,397 $ — $ — $ 1,397 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less than 12 Months 12 Months or Longer Total March 31, 2022 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 19,103 $ 1,140 $ — $ — $ 19,103 $ 1,140 U.S. Government Agency notes 20,669 1,159 4,867 40 25,536 1,199 Municipal bonds 42,942 3,242 493 58 43,435 3,300 Mortgage- backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 58,882 2,945 12,697 850 71,579 3,795 Collateralized mortgage obligations: U.S. Government agencies 22,414 1,289 — — 22,414 1,289 Corporate bonds 5,312 188 — — 5,312 188 Total temporarily impaired securities $ 169,322 $ 9,963 $ 18,057 $ 948 $ 187,379 $ 10,911 Less than 12 Months 12 Months or Longer Total December 31, 2021 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 12,155 $ 182 $ — $ — $ 12,155 $ 182 U.S. Government Agency notes 22,137 235 2,019 21 24,156 256 Municipal bonds 12,496 204 552 — 13,048 204 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises 52,619 740 3,195 65 55,814 805 Collateralized mortgage obligations 11,554 185 — — 11,554 185 Corporate bonds 1,742 8 — — 1,742 8 Total temporarily impaired securities $ 112,703 $ 1,554 $ 5,766 $ 86 $ 118,469 $ 1,640 |
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block] | March 31, 2022 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Treasury After 1 year but within 5 years $ 6,918 $ 6,729 1.48 % After 5 year but within 10 years 13,325 12,374 1.17 Total 20,243 19,103 1.28 U.S. Government Agency notes After 1 year but within 5 years 996 930 1.09 After 5 year but within 10 years 14,913 13,921 1.24 Total 15,909 14,851 1.23 Municipal bonds After 1 year but within 5 years 512 490 1.74 After 5 year but within 10 years 12,789 11,893 2.38 After 10 years but within 15 years 12,393 11,547 2.38 After 15 years 25,853 24,369 2.54 Total 51,547 48,299 2.45 Mortgage-backed securities and Collateralized mortgage obligations Securities not due at a single maturity date 124,860 119,798 1.91 Total 124,860 119,798 1.91 Corporate bonds After 5 years but within 10 years 13,250 13,101 4.33 After 10 years but within 15 years 500 500 4.75 Total 13,750 13,601 4.35 Securities available-for-sale $ 226,309 $ 215,652 2.16 % (1) |
NOTE 3 _ LOANS (Tables)
NOTE 3 – LOANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (In thousands) March 31, 2022 December 31, 2021 Residential 1-4 family $ 381,207 $ 373,131 Residential 5+ multifamily 53,376 52,325 Construction of residential 1-4 family 20,818 19,738 Home equity lines of credit 23,276 23,270 Residential real estate 478,677 468,464 Commercial 310,815 310,923 Construction of commercial 65,273 58,838 Commercial real estate 376,088 369,761 Farm land 2,778 2,807 Vacant land 14,710 14,182 Real estate secured 872,253 855,214 Commercial and industrial ex PPP Loans 163,832 169,543 PPP Loans 13,666 25,589 Total Commercial and industrial 177,498 195,132 Municipal 14,263 16,534 Consumer 14,356 12,547 Loans receivable, gross 1,078,370 1,079,427 Deferred loan origination costs, net 761 285 Allowance for loan losses (12,915 ) (12,962 ) Loans receivable, net $ 1,066,216 $ 1,066,750 Loans held-for-sale Residential 1-4 family $ 1,070 $ 2,684 |
Financing Receivable Credit Quality Indicators [Table Text Block] | (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2022 Residential 1-4 family $ 376,063 $ 3,132 $ 2,012 $ — $ — $ 381,207 Residential 5+ multifamily 53,214 77 85 — — 53,376 Construction of residential 1-4 family 20,818 — — — — 20,818 Home equity lines of credit 23,055 221 — — — 23,276 Residential real estate 473,150 3,430 2,097 — — 478,677 Commercial 274,294 15,949 20,572 — — 310,815 Construction of commercial 65,273 — — — — 65,273 Commercial real estate 339,567 15,949 20,572 — — 376,088 Farm land 1,152 1,206 420 — — 2,778 Vacant land 14,673 37 — — — 14,710 Real estate secured 828,542 20,622 23,089 — — 872,253 Commercial and industrial 174,968 584 1,946 — — 177,498 Municipal 14,263 — — — — 14,263 Consumer 14,354 — 2 — — 14,356 Loans receivable, gross $ 1,032,127 $ 21,206 $ 25,037 $ — $ — $ 1,078,370 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2021 Residential 1-4 family $ 367,225 $ 3,543 $ 2,363 $ — $ — $ 373,131 Residential 5+ multifamily 50,588 79 1,658 — — 52,325 Construction of residential 1-4 family 19,738 — — — — 19,738 Home equity lines of credit 23,037 212 21 — — 23,270 Residential real estate 460,588 3,834 4,042 — — 468,464 Commercial 271,821 16,034 23,068 — — 310,923 Construction of commercial 58,838 — — — — 58,838 Commercial real estate 330,659 16,034 23,068 — — 369,761 Farm land 1,162 1,214 431 — — 2,807 Vacant land 14,143 39 — — — 14,182 Real estate secured 806,552 21,121 27,541 — — 855,214 Commercial and industrial 191,857 688 2,587 — — 195,132 Municipal 16,534 — — — — 16,534 Consumer 12,547 — — — — 12,547 Loans receivable, gross $ 1,027,490 $ 21,809 $ 30,128 $ — $ — $ 1,079,427 |
Financing Receivable, Nonaccrual [Table Text Block] | Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual March 31, 2022 Residential 1-4 family $ 379,534 $ 1,599 $ 59 $ — $ 15 $ 1,673 $ — $ 417 Residential 5+ multifamily 53,376 — — — — — — — Construction of residential 1-4 family 20,818 — — — — — — — Home equity lines of credit 23,210 66 — — — 66 — — Residential real estate 476,938 1,665 59 — 15 1,739 — 417 Commercial 310,356 — 205 — 254 459 — 1,887 Construction of commercial 65,273 — — — — — — — Commercial real estate 375,629 — 205 — 254 459 — 1,887 Farm land 2,778 — — — — — — 420 Vacant land 14,710 — — — — — — — Real estate secured 870,055 1,665 264 — 269 2,198 — 2,724 Commercial and industrial 177,050 — 437 — 11 448 11 28 Municipal 14,263 — — — — — — — Consumer 14,312 22 20 2 — 44 2 — Loans receivable, gross $ 1,075,680 $ 1,687 $ 721 $ 2 $ 280 $ 2,690 $ 13 $ 2,752 Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual December 31, 2021 Residential 1-4 family $ 372,620 $ 223 $ 135 $ 63 $ 90 $ 511 $ — $ 750 Residential 5+ multifamily 51,464 — — — 861 861 — 861 Construction of residential 1-4 family 19,668 — 70 — — 70 — — Home equity lines of credit 23,000 165 98 — 7 270 — 21 Residential real estate 466,752 388 303 63 958 1,712 — 1,632 Commercial 310,331 87 251 — 254 592 — 1,924 Construction of commercial 58,838 — — — — — — — Commercial real estate 369,169 87 251 — 254 592 — 1,924 Farm land 2,807 — — — — — — 432 Vacant land 14,182 — — — — — — — Real estate secured 852,910 475 554 63 1,212 2,304 — 3,988 Commercial and industrial 194,838 250 32 1 11 294 11 200 Municipal 16,534 — — — — — — — Consumer 12,503 40 4 — — 44 — — Loans receivable, gross $ 1,076,785 $ 765 $ 590 $ 64 $ 1,223 $ 2,642 $ 11 $ 4,188 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Three months ended March 31, 2022 Three months ended March 31, 2021 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,846 $ 236 $ (19 ) $ — $ 3,063 $ 2,646 $ 208 $ (9 ) $ 1 $ 2,430 Residential 5+ multifamily 817 234 (231 ) — 820 686 (64 ) — — 622 Construction of residential 1-4 family 186 9 — — 195 65 12 — — 77 Home equity lines of credit 198 2 (2 ) — 198 252 (57 ) — — 195 Residential real estate 4,047 481 (252 ) — 4,276 3,649 (317 ) (9 ) 1 3,324 Commercial 5,416 (117 ) (103 ) — 5,196 6,546 530 (6 ) 10 7,080 Construction of commercial 1,025 114 — — 1,139 596 (12 ) — — 584 Commercial real estate 6,441 (3 ) (103 ) — 6,335 7,142 518 (6 ) 10 7,664 Farm land 21 (2 ) — — 19 59 (9 ) — — 50 Vacant land 95 15 — — 110 180 (71 ) — — 109 Real estate secured 10,604 49 (355 ) — 10,740 11,030 121 (15 ) 11 11,147 Commercial and industrial 1,364 (143 ) (46 ) 1 1,176 1,397 (28 ) — — 1,369 Municipal 31 (4 ) — — 27 43 — — — 43 Consumer 82 33 (15 ) 5 105 77 (3 ) (24 ) 2 52 Unallocated 881 (14 ) — — 867 1,207 68 — — 1,275 Totals $ 12,962 $ 363 $ (416 ) $ 6 $ 12,915 $ 13,754 $ 158 $ (39 ) $ 13 $ 13,886 |
[custom:CompositionOfLoansReceivableAndAllowanceForLoanLossesTableTextBlock] | (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance March 31, 2022 Residential 1-4 family $ 379,269 $ 3,063 $ 1,938 $ — $ 381,207 $ 3,063 Residential 5+ multifamily 53,291 820 85 — 53,376 820 Construction of residential 1-4 family 20,818 195 — — 20,818 195 Home equity lines of credit 23,276 198 — — 23,276 198 Residential real estate 476,654 4,276 2,023 — 478,677 4,276 Commercial 307,548 5,173 3,267 23 310,815 5,196 Construction of commercial 65,273 1,139 — — 65,273 1,139 Commercial real estate 372,821 6,312 3,267 23 376,088 6,335 Farm land 2,358 19 420 — 2,778 19 Vacant land 14,710 110 — — 14,710 110 Real estate secured 866,543 10,717 5,710 23 872,253 10,740 Commercial and industrial 177,394 1,173 104 3 177,498 1,176 Municipal 14,263 27 — — 14,263 27 Consumer 14,356 105 — — 14,356 105 Unallocated allowance — 867 — — — 867 Totals $ 1,072,556 $ 12,889 $ 5,814 $ 26 $ 1,078,370 $ 12,915 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2021 Residential 1-4 family $ 370,558 $ 2,845 $ 2,573 $ 1 $ 373,131 $ 2,846 Residential 5+ multifamily 51,376 817 949 — 52,325 817 Construction of residential 1-4 family 19,738 186 — — 19,738 186 Home equity lines of credit 23,249 198 21 — 23,270 198 Residential real estate 464,921 4,046 3,543 1 468,464 4,047 Commercial 307,377 5,388 3,546 28 310,923 5,416 Construction of commercial 58,838 1,025 — — 58,838 1,025 Commercial real estate 366,215 6,413 3,546 28 369,761 6,441 Farm land 2,375 21 432 — 2,807 21 Vacant land 14,182 95 — — 14,182 95 Real estate secured 847,694 10,575 7,520 29 855,214 10,604 Commercial and industrial 194,856 1,297 276 67 195,132 1,364 Municipal 16,534 31 — — 16,534 31 Consumer 12,547 82 — — 12,547 82 Unallocated allowance — 881 — — — 881 Totals $ 1,071,630 $ 12,866 $ 7,797 $ 96 $ 1,079,427 $ 12,962 |
Financing Receivable, Noncurrent, Allowance for Credit Loss [Table Text Block] | March 31, 2022 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,051,041 $ 10,740 $ — $ — $ 1,051,041 $ 10,740 Potential problem loans 1 21,515 1,282 — — 21,515 1,282 Impaired loans — — 5,814 26 5,814 26 Unallocated allowance — 867 — — — 867 Totals $ 1,072,556 $ 12,889 $ 5,814 $ 26 $ 1,078,370 $ 12,915 December 31, 2021 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,046,614 $ 10,456 $ — $ — $ 1,046,614 $ 10,456 Potential problem loans 1 25,016 1,529 — — 25,016 1,529 Impaired loans — — 7,797 96 7,797 96 Unallocated allowance — 881 — — — 881 Totals $ 1,071,630 $ 12,866 $ 7,797 $ 96 $ 1,079,427 $ 12,962 1 |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block] | Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2022 Residential $ — $ — $ 21 $ — $ — $ 2,023 $ 2,144 $ 2,944 $ 14 Home equity lines of credit — — — — — — — 15 — Residential real estate — — 21 — — 2,023 2,144 2,959 14 Commercial 598 598 602 23 7 2,669 3,214 2,856 11 Construction of commercial — — — — — — — — — Farm land — — — — — 420 447 426 — Vacant land — — — — — — — — — Real estate secured 598 598 623 23 7 5,112 5,805 6,241 25 Commercial and industrial 76 76 146 3 1 28 25 79 — Consumer — — — — — — — — — Totals $ 674 $ 674 $ 769 $ 26 $ 8 $ 5,140 $ 5,830 $ 6,320 $ 25 For the three months ended March 31, 2021, Salisbury recognized income of $ 32 57 Certain data with respect to loans individually evaluated for impairment is as follows as of and for the year ended December 31, 2021: Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2021 Residential $ 43 $ 44 $ 872 $ 1 $ 3 $ 3,480 $ 3,817 $ 3,689 $ 75 Home equity lines of credit — — 17 — — 21 23 131 — Residential real estate 43 44 889 1 3 3,501 3,840 3,820 75 Commercial 608 608 1,678 28 32 2,938 3,493 2,974 62 Construction of commercial — — — — — — — — — Farm land — — — — — 431 447 440 — Vacant land — — 56 — — — — 45 — Real estate secured 651 652 2,623 29 35 6,870 7,780 7,279 137 Commercial and industrial 216 224 309 67 3 60 72 90 — Consumer — — 6 — — — — 13 — Totals $ 867 $ 876 $ 2,938 $ 96 $ 38 $ 6,930 $ 7,852 $ 7,382 $ 137 |
NOTE 4 _ LEASES (Tables)
NOTE 4 – LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Note 4 Leases | |
Finance Lease, Liability, Fiscal Year Maturity [Table Text Block] | (in thousands, except lease term and discount rate) Classification March 31, 2022 December 31, 2021 Assets Operating Other assets $ 966 $ 1,021 Finance Bank premises and equipment 1 4,045 3,791 Total Leased Assets $ 5,011 $ 4,812 Liabilities Operating Other liabilities $ 966 $ 1,021 Finance Finance lease 4,363 4,107 Total lease liabilities $ 5,329 $ 5,128 1 532 496 Lease cost Classification Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Operating leases Premises and equipment $ 74 $ 80 Finance leases: Amortization of leased assets Premises and equipment 35 25 Interest on finance leases Interest expense 41 32 Total lease cost $ 150 $ 137 Weighted Average Remaining Lease Term March 31, 2022 December 31, 2021 Operating leases 7.2 years 6.9 years Financing leases 24.9 years 23.5 years Weighted Average Discount Rate 1 Operating leases 3.71 % 3.61 % Financing leases 3.89 % 4.97 % 1 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Future minimum lease payments (in thousands) Operating Leases Finance Leases 2022 $ 162 $ 223 2023 167 304 2024 129 314 2025 137 323 2026 137 334 Thereafter 380 4,968 Total future minimum lease payments 1,112 6,466 Less amount representing interest (146 ) (2,103 ) Total present value of net future minimum lease payments $ 966 $ 4,363 |
NOTE 5 - MORTGAGE SERVICING R_2
NOTE 5 - MORTGAGE SERVICING RIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule of Participating Mortgage Loans [Table Text Block] | (in thousands) March 31, 2022 December 31, 2021 Residential mortgage loans serviced for others $ 142,790 $ 140,623 Fair value of mortgage servicing rights 1,267 1,043 |
Servicing Liability at Amortized Cost [Table Text Block] | Three months ended March 31, (in thousands) 2022 2021 Mortgage Servicing Rights Balance, beginning of period $ 700 $ 621 Originated 55 193 Amortization (1) (39 ) (75 ) Balance, end of period $ 716 $ 739 Valuation Allowance Balance, beginning of period — (9 ) Decrease in impairment reserve (1) — 9 Balance, end of period — — Mortgage servicing rights, net $ 716 $ 739 (1) |
NOTE 6 - PLEDGED ASSETS (Tables
NOTE 6 - PLEDGED ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Note 6 - Pledged Assets | |
Schedule of Guarantor Obligations [Table Text Block] | (in thousands) March 31, 2022 December 31, 2021 Securities available-for-sale (at fair value) $ 76,334 $ 75,737 Loans receivable (at book value) 368,531 378,845 Total pledged assets $ 444,865 $ 454,582 |
NOTE 7 _ DERIVATIVES AND HEDG_2
NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Note 7 Derivatives And Hedging Activities | |
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (in thousands) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Loans receivable (1) $ 9,953 $ 9,982 $ (47 ) $ (18 ) Total $ 9,953 $ 9,982 $ (47 ) $ (18 ) (1) 36.6 47 10.0 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | As of March 31, 2022 As of December 31, 2021 (in thousands) Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedge instruments Interest Rate Products $ 10,000 Other assets $ 47 Other Assets $ 18 Total Derivatives designated as hedge instruments $ 47 $ 18 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Three months ended Three months ended March 31, 2022 March 31, 2021 (in thousands) Interest Income Interest Expense Interest Income Interest Expense Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ 2 $ — $ 1 $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (28 ) — (2 ) — Derivatives designated as hedging instruments $ 30 $ — $ 3 $ — |
NOTE 8 _ EARNINGS PER SHARE (Ta
NOTE 8 – EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Note 8 Earnings Per Share | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended March 31, (in thousands, except per share data) 2022 2021 Net income $ 3,568 $ 4,526 Less: Undistributed earnings allocated to participating securities (60 ) (64 ) Net income allocated to common stock $ 3,508 $ 4,462 Weighted-average common shares issued 2,867 2,845 Less: Unvested restricted stock awards (49 ) (40 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,818 2,805 Add: Dilutive effect of stock options and restricted stock units 29 10 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,847 2,815 Earnings per common share (basic) $ 1.24 $ 1.59 Earnings per common share (diluted) $ 1.23 $ 1.59 |
NOTE 9 _ SHAREHOLDERS_ EQUITY (
NOTE 9 – SHAREHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Note 9 Shareholders Equity | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2022 Total Capital (to risk-weighted assets) $ 155,665 13.98 % $ 89,075 8.0 % $ 116,911 10.5 % $ 111,344 10.0 % Tier 1 Capital (to risk-weighted assets) 142,567 12.80 66,806 6.0 94,642 8.5 89,075 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 142,567 12.80 50,105 4.5 77,941 7.0 72,374 6.5 Tier 1 Capital (to average assets) $ 142,567 9.66 $ 59,010 4.0 $ 59,010 4.0 $ 73,763 5.0 December 31, 2021 Total Capital (to risk-weighted assets) $ 152,789 14.08 % $ 86,832 8.0 % $ 113,968 10.5 % $ 108,541 10.0 % Tier 1 Capital (to risk-weighted assets) 139,681 12.87 65,124 6.0 92,259 8.5 86,832 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 139,681 12.87 48,843 4.5 75,978 7.0 70,551 6.5 Tier 1 Capital (to average assets) $ 139,681 9.42 $ 59,285 4.0 $ 59,285 4.0 $ 74,106 5.0 |
NOTE 12 _ FAIR VALUE OF ASSET_2
NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Note 12 Fair Value Of Assets And Liabilities | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value March 31, 2022 Assets at fair value on a recurring basis U.S. Treasury $ — $ 19,103 $ — $ 19,103 U.S. Government Agency notes — 31,933 — 31,933 Municipal bonds — 48,299 — 48,299 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 76,796 — 76,796 Collateralized mortgage obligations: U.S. Government agencies — 25,920 — 25,920 Corporate bonds — 13,601 — 13,601 Securities available-for-sale $ — $ 215,652 $ — $ 215,652 CRA mutual funds 862 — — 862 Derivative financial instruments — 47 — 47 December 31, 2021 Assets at fair value on a recurring basis U.S. Treasury $ — $ 15,131 $ — $ 15,131 U.S. Government Agency notes — 31,604 — 31,604 Municipal bonds — 47,822 — 47,822 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 74,541 — 74,541 Collateralized mortgage obligations: U.S. Government agencies — 20,898 — 20,898 Corporate bonds — 12,400 — 12,400 Securities available-for-sale $ — $ 202,396 $ — $ 202,396 CRA mutual fund 901 — — 901 Derivative financial instruments — 18 — 18 Assets at fair value on a non-recurring basis Assets held for sale 1 $ 700 $ — $ — $ 700 1 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 March 31, 2022 Financial Assets Cash and cash equivalents $ 98,861 $ 98,861 $ 98,861 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 Securities available-for-sale, net 215,652 215,652 — 215,652 — CRA mutual fund 862 862 862 — — Federal Home Loan Bank of Boston stock 1,077 1,077 — 1,077 — Loans held-for-sale 1,070 1,077 — — 1,077 Loans receivable, net 1,066,216 1,055,745 — — 1,055,745 Accrued interest receivable 5,895 5,895 — 5,895 — Cash surrender value of life insurance policies 27,900 27,900 — 27,900 — Derivative financial instruments 47 47 — 47 — Financial Liabilities Demand (non-interest-bearing) $ 370,082 $ 370,082 $ — $ 370,082 $ — Demand (interest-bearing) 233,893 233,893 — 233,893 — Money market 317,462 317,462 — 317,462 — Savings and other 240,824 240,824 — 240,824 — Certificates of deposit 128,213 128,663 — 128,663 — Deposits 1,290,474 1,290,924 — 1,290,924 — Repurchase agreements 8,161 8,161 — 8,161 — FHLBB advances 419 419 — 419 — Subordinated debt 24,488 24,409 — 24,409 — Note payable 159 162 — 162 — Finance lease obligation 4,363 4,312 — — 4,312 Accrued interest payable 37 37 — 37 — December 31, 2021 Financial Assets Cash and cash equivalents $ 175,335 $ 175,335 $ 175,335 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 202,396 202,396 — 202,396 — CRA mutual fund 901 901 901 — — Federal Home Loan Bank of Boston stock 1,397 1,397 — 1,397 — Loans held-for-sale 2,684 2,721 — — 2,721 Loans receivable, net 1,066,750 1,066,733 — — 1,066,733 Accrued interest receivable 6,260 6,260 — 6,260 — Cash surrender value of life insurance policies 27,738 27,738 — 27,738 — Derivative financial instruments 18 18 — 18 — Financial Liabilities Demand (non-interest-bearing) $ 416,073 $ 416,073 $ — $ 416,073 $ — Demand (interest-bearing) 233,600 233,600 — 233,600 — Money market 330,436 330,436 — 330,436 — Savings and other 237,075 237,075 — 237,075 — Certificates of deposit 119,009 119,716 — 119,716 — Deposits 1,336,193 1,336,900 — 1,336,900 — Repurchase agreements 11,430 11,430 — 11,430 — FHLBB advances 7,656 7,714 — 7,714 — Subordinated debt 24,474 24,409 — 24,409 — Note payable 170 171 — 171 — Finance lease liability 4,107 4,223 — — 4,223 Accrued interest payable 49 49 — 49 — |
Composition of securities (Deta
Composition of securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-Sale, Cost of Security Sold or Transferred, Method, Specific Identification [Member] | ||
Available-for-sale | ||
U.S. Treasury | $ 20,243 | $ 15,301 |
U.S. Government Agency notes | 33,013 | 31,623 |
Municipal bonds | 51,547 | 46,469 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 80,554 | 74,703 |
U.S. Government agencies | 27,202 | 20,948 |
Corporate bonds | 13,750 | 12,250 |
Total securities available-for-sale | 226,309 | 201,294 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | 1,077 | 1,397 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | ||
Available-for-sale | ||
U.S. Treasury | 12 | |
U.S. Government Agency notes | 119 | 237 |
Municipal bonds | 52 | 1,557 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 37 | 643 |
U.S. Government agencies | 7 | 135 |
Corporate bonds | 39 | 158 |
Total securities available-for-sale | 254 | 2,742 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Accumulated Net Unrealized Investment Gain Loss 1 [Member] | ||
Available-for-sale | ||
U.S. Treasury | 1,140 | 182 |
U.S. Government Agency notes | 1,199 | 256 |
Municipal bonds | 3,300 | 204 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 3,795 | 805 |
U.S. Government agencies | 1,289 | 185 |
Corporate bonds | 188 | 8 |
Total securities available-for-sale | 10,911 | 1,640 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Securities Financing Transaction, Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | 19,103 | 15,131 |
U.S. Government Agency notes | 31,933 | 31,604 |
Municipal bonds | 48,299 | 47,822 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 76,796 | 74,541 |
U.S. Government agencies | 25,920 | 20,898 |
Corporate bonds | 13,601 | 12,400 |
Total securities available-for-sale | 215,652 | 202,396 |
CRA mutual fund | 862 | 901 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | $ 1,077 | $ 1,397 |
Aggregate fair value and gross
Aggregate fair value and gross unrealized loss of securities that have been in a continous unrealized loss position (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Less Than 12 Months Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | $ 19,103 | $ 12,155 |
U.S. Government Agency notes | 20,669 | 22,137 |
Municipal bonds | 42,942 | 12,496 |
U.S. Government agencies and U.S. Government-sponsored enterprises | 58,882 | 52,619 |
U.S. Government agencies | 22,414 | |
Corporate bonds | 5,312 | 1,742 |
Total temporarily impaired securities | 169,322 | 112,703 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Less Than 12 Months Unrealized Losses [Member] | ||
Available-for-sale | ||
U.S. Treasury | 1,140 | 182 |
U.S. Government Agency notes | 1,159 | 235 |
Municipal bonds | 3,242 | 204 |
U.S. Government agencies and U.S. Government-sponsored enterprises | 2,945 | 740 |
U.S. Government agencies | 1,289 | |
Corporate bonds | 188 | 8 |
Total temporarily impaired securities | 9,963 | 1,554 |
Aggregate Fair Value Gross Unrealized Loss Of Securities 12 Months Or Longer Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | ||
U.S. Government Agency notes | 4,867 | 2,019 |
Municipal bonds | 493 | 552 |
U.S. Government agencies and U.S. Government-sponsored enterprises | 12,697 | 3,195 |
U.S. Government agencies | ||
Corporate bonds | ||
Total temporarily impaired securities | 18,057 | 5,766 |
Aggregate Fair Value Gross Unrealized Loss Of Securities 12 Months Or Longer Unrealized Losses [Member] | ||
Available-for-sale | ||
U.S. Treasury | ||
U.S. Government Agency notes | 40 | 21 |
Municipal bonds | 58 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 850 | 65 |
U.S. Government agencies | ||
Corporate bonds | ||
Total temporarily impaired securities | 948 | 86 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Total Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | 19,103 | 12,155 |
U.S. Government Agency notes | 25,536 | 24,156 |
Municipal bonds | 43,435 | 13,048 |
U.S. Government agencies and U.S. Government-sponsored enterprises | 71,579 | 55,814 |
U.S. Government agencies | 22,414 | |
Corporate bonds | 5,312 | 1,742 |
Total temporarily impaired securities | 187,379 | 118,469 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Total Unrealized Losses [Member] | ||
Available-for-sale | ||
U.S. Treasury | 1,140 | 182 |
U.S. Government Agency notes | 1,199 | 256 |
Municipal bonds | 3,300 | 204 |
U.S. Government agencies and U.S. Government-sponsored enterprises | 3,795 | 805 |
U.S. Government agencies | 1,289 | |
Corporate bonds | 188 | 8 |
Total temporarily impaired securities | $ 10,911 | $ 1,640 |
Amortized cost, fair value and
Amortized cost, fair value and tax equivalent yield of securities, by maturity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
U S Treasury [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 6,918 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 6,729 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.48% |
U S Treasury 2 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 13,325 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 12,374 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.17% |
U S Treasury Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 20,243 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 19,103 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.28% |
U S Government Agency Notes [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 996 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 930 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.09% |
U S Government Agency Notes 2 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 14,913 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 13,921 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.24% |
U S Government Agency Notes Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 15,909 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 14,851 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.23% |
US States and Political Subdivisions Debt Securities [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 512 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 490 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.74% |
U S States And Political Subdivisions 2 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 12,789 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 11,893 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.38% |
U S States And Political Subdivisions 3 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 12,393 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 11,547 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.38% |
U S States And Political Subdivisions 4 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 25,853 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 24,369 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.54% |
U S States And Political Subdivisions Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 51,547 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 48,299 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.45% |
Mortgage Backed Securities Collateralized Mortgage Obligations [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 124,860 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 119,798 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.91% |
Mortgage Backed Securities Collateralized Mortgage Obligations Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 124,860 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 119,798 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.91% |
Corporate Debt Securities 2 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 13,250 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 13,101 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.33% |
Corporate Debt Securities 3 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 500 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 500 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.75% |
Corporate Debt Securities Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 13,750 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 13,601 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.35% |
Available-for-Sale Securities [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 226,309 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 215,652 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.16% |
NOTE 2 - SECURITIES (Details Na
NOTE 2 - SECURITIES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Note 2 - Securities | ||
Proceeds from Sale of Debt Securities, Available-for-Sale | $ 17,700,000 | |
Available-for-Sale Securities, Gross Realized Gain (Loss) | (210,000) | |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, Tax | $ 44,000 |
Composition of loans receivable
Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | $ 1,066,216 | $ 1,066,750 |
Loans Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 381,207 | 373,131 |
Residential 5+ multifamily | 53,376 | 52,325 |
Construction of residential 1-4 family | 20,818 | 19,738 |
Home equity lines of credit | 23,276 | 23,270 |
Residential real estate | 478,677 | 468,464 |
Commercial | 310,815 | 310,923 |
Construction of commercial | 65,273 | 58,838 |
Commercial real estate | 376,088 | 369,761 |
Farm land | 2,778 | 2,807 |
Vacant land | 14,710 | 14,182 |
Real estate secured | 872,253 | 855,214 |
Municipal | 14,263 | 16,534 |
Consumer | 14,356 | 12,547 |
Loans receivable, gross | 1,078,370 | 1,079,427 |
Allowance for loan losses | (12,915) | (12,962) |
Loans receivable, net | 1,066,216 | 1,066,750 |
Loans held-for-sale | ||
Residential 1-4 family | $ 1,070 | $ 2,684 |
Composition of loans receivab_2
Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | $ 376,063 | $ 367,225 |
Residential 5+ multifamily | 53,214 | 50,588 |
Construction of residential 1-4 family | 20,818 | 19,738 |
Home equity lines of credit | 23,055 | 23,037 |
Residential real estate | 473,150 | 460,588 |
Commercial | 274,294 | 271,821 |
Construction of commercial | 65,273 | 58,838 |
Commercial real estate | 339,567 | 330,659 |
Farm land | 1,152 | 1,162 |
Vacant land | 14,673 | 14,143 |
Real estate secured | 828,542 | 806,552 |
Commercial and industrial | 174,968 | 191,857 |
Municipal | 14,263 | 16,534 |
Consumer | 14,354 | 12,547 |
Loans receivable, gross | 1,032,127 | 1,027,490 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | 3,132 | 3,543 |
Residential 5+ multifamily | 77 | 79 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 221 | 212 |
Residential real estate | 3,430 | 3,834 |
Commercial | 15,949 | 16,034 |
Construction of commercial | ||
Commercial real estate | 15,949 | 16,034 |
Farm land | 1,206 | 1,214 |
Vacant land | 37 | 39 |
Real estate secured | 20,622 | 21,121 |
Commercial and industrial | 584 | 688 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 21,206 | 21,809 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | 2,012 | 2,363 |
Residential 5+ multifamily | 85 | 1,658 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 21 | |
Residential real estate | 2,097 | 4,042 |
Commercial | 20,572 | 23,068 |
Construction of commercial | ||
Commercial real estate | 20,572 | 23,068 |
Farm land | 420 | 431 |
Vacant land | ||
Real estate secured | 23,089 | 27,541 |
Commercial and industrial | 1,946 | 2,587 |
Municipal | ||
Consumer | 2 | |
Loans receivable, gross | 25,037 | 30,128 |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | ||
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | ||
Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | ||
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | ||
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | 381,207 | 373,131 |
Residential 5+ multifamily | 53,376 | 52,325 |
Construction of residential 1-4 family | 20,818 | 19,738 |
Home equity lines of credit | 23,276 | 23,270 |
Residential real estate | 478,677 | 468,464 |
Commercial | 310,815 | 310,923 |
Construction of commercial | 65,273 | 58,838 |
Commercial real estate | 376,088 | 369,761 |
Farm land | 2,778 | 2,807 |
Vacant land | 14,710 | 14,182 |
Real estate secured | 872,253 | 855,214 |
Commercial and industrial | 177,498 | 195,132 |
Municipal | 14,263 | 16,534 |
Consumer | 14,356 | 12,547 |
Loans receivable, gross | $ 1,078,370 | $ 1,079,427 |
Composition of loans receivab_3
Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans Receivable Delinquency Status Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | $ 379,534 | $ 372,620 |
Residential 5+ multifamily | 53,376 | 51,464 |
Construction of residential 1-4 family | 20,818 | 19,668 |
Home equity lines of credit | 23,210 | 23,000 |
Residential real estate | 476,938 | 466,752 |
Commercial | 310,356 | 310,331 |
Construction of commercial | 65,273 | 58,838 |
Commercial real estate | 375,629 | 369,169 |
Farm land | 2,778 | 2,807 |
Vacant land | 14,710 | 14,182 |
Real estate secured | 870,055 | 852,910 |
Commercial and industrial | 177,050 | 194,838 |
Municipal | 14,263 | 16,534 |
Consumer | 14,312 | 12,503 |
Loans receivable, gross | 1,075,680 | 1,076,785 |
Loans Receivable Delinquency Status Period Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 1,599 | 223 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 66 | 165 |
Residential real estate | 1,665 | 388 |
Commercial | 87 | |
Construction of commercial | ||
Commercial real estate | 87 | |
Farm land | ||
Vacant land | ||
Real estate secured | 1,665 | 475 |
Commercial and industrial | 250 | |
Municipal | ||
Consumer | 22 | 40 |
Loans receivable, gross | 1,687 | 765 |
Loans Receivable Delinquency Status Period Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 59 | 135 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | 70 | |
Home equity lines of credit | 98 | |
Residential real estate | 59 | 303 |
Commercial | 205 | 251 |
Construction of commercial | ||
Commercial real estate | 205 | 251 |
Farm land | ||
Vacant land | ||
Real estate secured | 264 | 554 |
Commercial and industrial | 437 | 32 |
Municipal | ||
Consumer | 20 | 4 |
Loans receivable, gross | 721 | 590 |
Loans Receivable Delinquency Status Period Four [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 63 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 63 | |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | 63 | |
Commercial and industrial | 1 | |
Municipal | ||
Consumer | 2 | |
Loans receivable, gross | 2 | 64 |
Loans Receivable Delinquency Status Period Five [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 15 | 90 |
Residential 5+ multifamily | 861 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 7 | |
Residential real estate | 15 | 958 |
Commercial | 254 | 254 |
Construction of commercial | ||
Commercial real estate | 254 | 254 |
Farm land | ||
Vacant land | ||
Real estate secured | 269 | 1,212 |
Commercial and industrial | 11 | 11 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 280 | 1,223 |
Loans Receivable Delinquency Status Period Six [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 1,673 | 511 |
Residential 5+ multifamily | 861 | |
Construction of residential 1-4 family | 70 | |
Home equity lines of credit | 66 | 270 |
Residential real estate | 1,739 | 1,712 |
Commercial | 459 | 592 |
Construction of commercial | ||
Commercial real estate | 459 | 592 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,198 | 2,304 |
Commercial and industrial | 448 | 294 |
Municipal | ||
Consumer | 44 | 44 |
Loans receivable, gross | 2,690 | 2,642 |
Loans Receivable Delinquency Accrual [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | ||
Commercial and industrial | 11 | 11 |
Municipal | ||
Consumer | 2 | |
Loans receivable, gross | 13 | 11 |
Loans Receivable Delinquency Non Accrual [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 417 | 750 |
Residential 5+ multifamily | 861 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 21 | |
Residential real estate | 417 | 1,632 |
Commercial | 1,887 | 1,924 |
Construction of commercial | ||
Commercial real estate | 1,887 | 1,924 |
Farm land | 420 | 432 |
Vacant land | ||
Real estate secured | 2,724 | 3,988 |
Commercial and industrial | 28 | 200 |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 2,752 | $ 4,188 |
Changes in allowance for loan l
Changes in allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Residential 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | $ 2,846 | $ 2,646 |
Provision | 236 | 208 |
Charge-offs | (19) | (9) |
Recoveries | 1 | |
Ending balance | 3,063 | 2,430 |
Residential 5+ multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 817 | 686 |
Provision | 234 | (64) |
Charge-offs | (231) | |
Recoveries | ||
Ending balance | 820 | 622 |
Construction of residential 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 186 | 65 |
Provision | 9 | 12 |
Charge-offs | ||
Recoveries | ||
Ending balance | 195 | 77 |
Home equity lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 198 | 252 |
Provision | 2 | (57) |
Charge-offs | (2) | |
Recoveries | ||
Ending balance | 198 | 195 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 4,047 | 3,649 |
Provision | 481 | (317) |
Charge-offs | (252) | (9) |
Recoveries | 1 | |
Ending balance | 4,276 | 3,324 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 5,416 | 6,546 |
Provision | (117) | 530 |
Charge-offs | (103) | (6) |
Recoveries | 10 | |
Ending balance | 5,196 | 7,080 |
Construction of commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 1,025 | 596 |
Provision | 114 | (12) |
Charge-offs | ||
Recoveries | ||
Ending balance | 1,139 | 584 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 6,441 | 7,142 |
Provision | (3) | 518 |
Charge-offs | (103) | (6) |
Recoveries | 10 | |
Ending balance | 6,335 | 7,664 |
Farm land | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 21 | 59 |
Provision | (2) | (9) |
Charge-offs | ||
Recoveries | ||
Ending balance | 19 | 50 |
Vacant land | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 95 | 180 |
Provision | 15 | (71) |
Charge-offs | ||
Recoveries | ||
Ending balance | 110 | 109 |
Real estate secured | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 10,604 | 11,030 |
Provision | 49 | 121 |
Charge-offs | (355) | (15) |
Recoveries | 11 | |
Ending balance | 10,740 | 11,147 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 1,364 | 1,397 |
Provision | (143) | (28) |
Charge-offs | (46) | |
Recoveries | 1 | |
Ending balance | 1,176 | 1,369 |
Municipal | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 31 | 43 |
Provision | (4) | |
Charge-offs | ||
Recoveries | ||
Ending balance | 27 | 43 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 82 | 77 |
Provision | 33 | (3) |
Charge-offs | (15) | (24) |
Recoveries | 5 | 2 |
Ending balance | 105 | 52 |
Unallocated | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 881 | 1,207 |
Provision | (14) | 68 |
Charge-offs | ||
Recoveries | ||
Ending balance | 867 | 1,275 |
Totals | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 12,962 | 13,754 |
Provision | 363 | 158 |
Charge-offs | (416) | (39) |
Recoveries | 6 | 13 |
Ending balance | $ 12,915 | $ 13,886 |
Composition of loans receivab_4
Composition of loans receivable and the allowance for loan losses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Totals | $ 1,066,216 | $ 1,066,750 |
Allowance For Loan And Lease Losses Collectively Evaluated Loans [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 379,269 | 370,558 |
Residential 5+ multifamily | 53,291 | 51,376 |
Construction of residential 1-4 family | 20,818 | 19,738 |
Home equity lines of credit | 23,276 | 23,249 |
Residential real estate | 476,654 | 464,921 |
Commercial | 307,548 | 307,377 |
Construction of commercial | 65,273 | 58,838 |
Commercial real estate | 372,821 | 366,215 |
Farm land | 2,358 | 2,375 |
Vacant land | 14,710 | 14,182 |
Real estate secured | 866,543 | 847,694 |
Commercial and industrial | 177,394 | 194,856 |
Municipal | 14,263 | 16,534 |
Consumer | 14,356 | 12,547 |
Unallocated allowance | ||
Totals | 1,072,556 | 1,071,630 |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss, Real Estate [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 3,063 | 2,845 |
Residential 5+ multifamily | 820 | 817 |
Construction of residential 1-4 family | 195 | 186 |
Home equity lines of credit | 198 | 198 |
Residential real estate | 4,276 | 4,046 |
Commercial | 5,173 | 5,388 |
Construction of commercial | 1,139 | 1,025 |
Commercial real estate | 6,312 | 6,413 |
Farm land | 19 | 21 |
Vacant land | 110 | 95 |
Real estate secured | 10,717 | 10,575 |
Commercial and industrial | 1,173 | 1,297 |
Municipal | 27 | 31 |
Consumer | 105 | 82 |
Unallocated allowance | 867 | 881 |
Totals | 12,889 | 12,866 |
Allowance For Loan And Lease Losses Individually Evaluated Loans [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 1,938 | 2,573 |
Residential 5+ multifamily | 85 | 949 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 21 | |
Residential real estate | 2,023 | 3,543 |
Commercial | 3,267 | 3,546 |
Construction of commercial | ||
Commercial real estate | 3,267 | 3,546 |
Farm land | 420 | 432 |
Vacant land | ||
Real estate secured | 5,710 | 7,520 |
Commercial and industrial | 104 | 276 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 5,814 | 7,797 |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 1 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 1 | |
Commercial | 23 | 28 |
Construction of commercial | ||
Commercial real estate | 23 | 28 |
Farm land | ||
Vacant land | ||
Real estate secured | 23 | 29 |
Commercial and industrial | 3 | 67 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 26 | 96 |
Allowance For Loan And Lease Losses Total Portfolio Loans [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 381,207 | 373,131 |
Residential 5+ multifamily | 53,376 | 52,325 |
Construction of residential 1-4 family | 20,818 | 19,738 |
Home equity lines of credit | 23,276 | 23,270 |
Residential real estate | 478,677 | 468,464 |
Commercial | 310,815 | 310,923 |
Construction of commercial | 65,273 | 58,838 |
Commercial real estate | 376,088 | 369,761 |
Farm land | 2,778 | 2,807 |
Vacant land | 14,710 | 14,182 |
Real estate secured | 872,253 | 855,214 |
Commercial and industrial | 177,498 | 195,132 |
Municipal | 14,263 | 16,534 |
Consumer | 14,356 | 12,547 |
Unallocated allowance | ||
Totals | 1,078,370 | 1,079,427 |
Allowance For Loan And Lease Losses Total Portfolio Allowance [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 3,063 | 2,846 |
Residential 5+ multifamily | 820 | 817 |
Construction of residential 1-4 family | 195 | 186 |
Home equity lines of credit | 198 | 198 |
Residential real estate | 4,276 | 4,047 |
Commercial | 5,196 | 5,416 |
Construction of commercial | 1,139 | 1,025 |
Commercial real estate | 6,335 | 6,441 |
Farm land | 19 | 21 |
Vacant land | 110 | 95 |
Real estate secured | 10,740 | 10,604 |
Commercial and industrial | 1,176 | 1,364 |
Municipal | 27 | 31 |
Consumer | 105 | 82 |
Unallocated allowance | 867 | 881 |
Totals | $ 12,915 | $ 12,962 |
Credit quality segments of loan
Credit quality segments of loans receivable and the allowance for loan losses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Totals | $ 1,066,216 | $ 1,066,750 |
Allowance For Loan And Lease Losses Collectively Evaluated Loans Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | 1,051,041 | 1,046,614 |
Potential problem loans 1 | 21,515 | 25,016 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 1,072,556 | 1,071,630 |
Allowance For Loan And Lease Losses Collectively Evaluated Allowance Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | 10,740 | 10,456 |
Potential problem loans 1 | 1,282 | 1,529 |
Impaired loans | ||
Unallocated allowance | 867 | 881 |
Totals | 12,889 | 12,866 |
Allowance For Loan And Lease Losses Individually Evaluated Loans Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | ||
Potential problem loans 1 | ||
Impaired loans | 5,814 | 7,797 |
Unallocated allowance | ||
Totals | 5,814 | 7,797 |
Allowance For Loan And Lease Losses Individually Evaluated Allowance Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | ||
Potential problem loans 1 | ||
Impaired loans | 26 | 96 |
Unallocated allowance | ||
Totals | 26 | 96 |
Allowance For Loan And Lease Losses Total Portfolio Loans Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | 1,051,041 | 1,046,614 |
Potential problem loans 1 | 21,515 | 25,016 |
Impaired loans | 5,814 | 7,797 |
Unallocated allowance | ||
Totals | 1,078,370 | 1,079,427 |
Allowance For Loan And Lease Losses Total Portfolio Allowance Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | 10,740 | 10,456 |
Potential problem loans 1 | 1,282 | 1,529 |
Impaired loans | 26 | 96 |
Unallocated allowance | 867 | 881 |
Totals | $ 12,915 | $ 12,962 |
Certain data with respect to lo
Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Totals | $ 1,066,216 | $ 1,066,750 |
Impaired Loans Specific Allowance Loan Balance Book [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential | 43 | |
Home equity lines of credit | ||
Residential real estate | 43 | |
Commercial | 598 | 608 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 598 | 651 |
Commercial and industrial | 76 | 216 |
Consumer | ||
Totals | 674 | 867 |
Impaired Loans Specific Allowance Loan Balance Note [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential | 44 | |
Home equity lines of credit | ||
Residential real estate | 44 | |
Commercial | 598 | 608 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 598 | 652 |
Commercial and industrial | 76 | 224 |
Consumer | ||
Totals | 674 | 876 |
Impaired Loans Specific Allowance Loan Balance Average [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential | 21 | 872 |
Home equity lines of credit | 17 | |
Residential real estate | 21 | 889 |
Commercial | 602 | 1,678 |
Construction of commercial | ||
Farm land | ||
Vacant land | 56 | |
Real estate secured | 623 | 2,623 |
Commercial and industrial | 146 | 309 |
Consumer | 6 | |
Totals | 769 | 2,938 |
SEC Schedule, 12-09, Reserve, Impairment of Recognized Servicing Asset [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential | 1 | |
Home equity lines of credit | ||
Residential real estate | 1 | |
Commercial | 23 | 28 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 23 | 29 |
Commercial and industrial | 3 | 67 |
Consumer | ||
Totals | 26 | 96 |
Impaired Loans Specific Allowance Loan Income Recognized [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential | 3 | |
Home equity lines of credit | ||
Residential real estate | 3 | |
Commercial | 7 | 32 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 7 | 35 |
Commercial and industrial | 1 | 3 |
Consumer | ||
Totals | 8 | 38 |
Impaired Loans No Specific Allowance Loan Balance Book [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential | 2,023 | 3,480 |
Home equity lines of credit | 21 | |
Residential real estate | 2,023 | 3,501 |
Commercial | 2,669 | 2,938 |
Construction of commercial | ||
Farm land | 420 | 431 |
Vacant land | ||
Real estate secured | 5,112 | 6,870 |
Commercial and industrial | 28 | 60 |
Consumer | ||
Totals | 5,140 | 6,930 |
Impaired Loans No Specific Allowance Loan Balance Note [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential | 2,144 | 3,817 |
Home equity lines of credit | 23 | |
Residential real estate | 2,144 | 3,840 |
Commercial | 3,214 | 3,493 |
Construction of commercial | ||
Farm land | 447 | 447 |
Vacant land | ||
Real estate secured | 5,805 | 7,780 |
Commercial and industrial | 25 | 72 |
Consumer | ||
Totals | 5,830 | 7,852 |
Impaired Loans No Specific Allowance Loan Balance Average [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential | 2,944 | 3,689 |
Home equity lines of credit | 15 | 131 |
Residential real estate | 2,959 | 3,820 |
Commercial | 2,856 | 2,974 |
Construction of commercial | ||
Farm land | 426 | 440 |
Vacant land | 45 | |
Real estate secured | 6,241 | 7,279 |
Commercial and industrial | 79 | 90 |
Consumer | 13 | |
Totals | 6,320 | 7,382 |
Impaired Loans No Specific Allowance Loan Income Recognized [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential | 14 | 75 |
Home equity lines of credit | ||
Residential real estate | 14 | 75 |
Commercial | 11 | 62 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 25 | 137 |
Commercial and industrial | ||
Consumer | ||
Totals | $ 25 | $ 137 |
NOTE 3 _ LOANS (Details Narrati
NOTE 3 – LOANS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Receivables [Abstract] | |||
Other Real Estate, Covered | $ 77,300,000 | $ 77,500,000 | |
[custom:SBAPPPLoanProgramAmountProcessed] | 13,000,000 | $ 25,000,000 | |
Interest and Fee Income, Other Loans | 46,000 | $ 232,000 | |
Loans and Leases Receivable, Fees Earned but Excluded from Yield | 400,000 | 1,100,000 | |
[custom:NonPerformingAndUnderPerformingLoansSoldToManageCreditRisk] | 3,800,000 | ||
[custom:WriteDownToReduceCarryingValueOfNonPerformingAndUnderPerformingLoansIncludedInChargeOffs] | 374,000 | ||
[custom:ReductionOfCarryingValueOfNonPerformingAndUnderPerformingLoansAmount] | 3,800,000 | ||
[custom:IncreaseDueToHigherFinalBidsInProceedsFromSaleOfNonPerformingAndUnderPerformingLoans] | $ 239,000 | ||
[custom:IncomeRecognizedOnImpairedLoansWithSpecificAllowance] | 32,000 | ||
[custom:IncomeRecognizedOnImpairedLoansWithoutSpecificAllowance] | $ 57,000 |
Assets and liabilities as well
Assets and liabilities as well as costs of operating and finance leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Liabilities | |||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, Accumulated Depreciation and Amortization | $ 532 | $ 496 | |
Operating leases | 74 | $ 80 | |
Amortization of leased assets | 35 | 25 | |
Interest on finance leases | 41 | 32 | |
Total lease cost | $ 150 | $ 137 | |
Operating leases | 7 years 73 days | 6 years 328 days 12 hours | |
Financing leases | 24 years 328 days 12 hours | 23 years 6 months | |
Weighted Average Discount Rate 1 | |||
Operating leases | 3.71% | 3.61% | |
Financing leases | 3.89% | 4.97% | |
Assets And Liabilities [Member] | |||
Assets | |||
Operating | $ 966 | $ 1,021 | |
Finance | 4,045 | 3,791 | |
Total Leased Assets | 5,011 | 4,812 | |
Liabilities | |||
Operating | 966 | 1,021 | |
Finance | 4,363 | 4,107 | |
Total lease liabilities | $ 5,329 | $ 5,128 |
Present value of net minimum le
Present value of net minimum lease payments (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Operating Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
$ 162 | |
167 | |
129 | |
137 | |
137 | |
380 | |
1,112 | |
(146) | |
966 | |
Finance Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
223 | |
304 | |
314 | |
323 | |
334 | |
4,968 | |
6,466 | |
(2,103) | |
$ 4,363 |
Balances of loans serviced for
Balances of loans serviced for others and fair value of mortgage servicing rights (Details) - Derivative Financial Instruments, Assets [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Residential mortgage loans serviced for others | $ 142,790 | $ 140,623 |
Fair value of mortgage servicing rights | $ 1,267 | $ 1,043 |
Changes in mortgage servicing r
Changes in mortgage servicing rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Mortgage Servicing Rights | ||
Balance, beginning of period | $ 700 | $ 621 |
Originated | 55 | 193 |
Amortization (1) | (39) | (75) |
Balance, end of period | 716 | 739 |
Valuation Allowance | ||
Balance, beginning of period | (9) | |
Decrease in impairment reserve (1) | 9 | |
Balance, end of period | ||
Mortgage servicing rights, net | $ 716 | $ 739 |
Securities and loans pledged to
Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available (Details) - S A L Guarantee Type Other [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Securities available-for-sale (at fair value) | $ 76,334 | $ 75,737 |
Loans receivable (at book value) | 368,531 | 378,845 |
Total pledged assets | $ 444,865 | $ 454,582 |
NOTE 6 - PLEDGED ASSETS (Detail
NOTE 6 - PLEDGED ASSETS (Details Narrative) | Mar. 31, 2022USD ($) |
Asset Pledged as Collateral [Member] | |
Variable Interest Entity [Line Items] | |
Debt Instrument, Collateral Amount | $ 68,160,000 |
Asset Pledged As Collateral 2 [Member] | |
Variable Interest Entity [Line Items] | |
Debt Instrument, Collateral Amount | 8,160,000 |
Asset Pledged As Collateral 3 [Member] | |
Variable Interest Entity [Line Items] | |
Debt Instrument, Collateral Amount | $ 20,000 |
Amounts recorded on the balance
Amounts recorded on the balance sheet related to cumulative basis adjustment for fair value hedges (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans receivable, cumulative amount of fair value hedging adjustment included in carrying amount of hedged assets | $ (47) | $ (18) |
Total, cumulative amount of fair value hedging adjustment included in carrying amount of hedged assets | (47) | (18) |
Hedged Assets Liabilities Carrying Amount [Member] | ||
Loans receivable(1) | 9,953 | 9,982 |
Total | $ 9,953 | $ 9,982 |
Fair value of Salisbury's deriv
Fair value of Salisbury's derivative financial instrument and its classification on the Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Notional Amount [Member] | ||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||
Interest Rate Products | $ 10,000 | |
Derivative Instrument Fair Value [Member] | ||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||
Interest Rate Products | 47 | $ 18 |
Total Derivatives designated as hedge instruments | $ 47 | $ 18 |
Effect of the Company's derivat
Effect of the Company's derivative financial instruments on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest Income Derivative Instrument [Member] | ||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||
Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded | $ 2 | $ 1 |
Hedged items | (28) | (2) |
Derivatives designated as hedging instruments | 30 | 3 |
Interest Expense Derivative Instrument [Member] | ||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||
Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded | ||
Hedged items | ||
Derivatives designated as hedging instruments |
NOTE 7 _ DERIVATIVES AND HEDG_3
NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) | Mar. 31, 2022USD ($) |
Note 7 Derivatives And Hedging Activities | |
Available-for-Sale Securities, Amortized Cost Basis | $ 36,600,000 |
Available-for-Sale Equity Securities, Amortized Cost Basis | 47,000 |
Derivative, Amount of Hedged Item | 10,000,000 |
Derivative Assets (Liabilities), at Fair Value, Net | $ 48 |
Calculation of earnings per sha
Calculation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Note 8 Earnings Per Share | ||
Net income | $ 3,568 | $ 4,526 |
Less: Undistributed earnings allocated to participating securities | (60) | (64) |
Net income allocated to common stock | 3,508 | 4,462 |
Weighted-average common shares issued | 2,867 | 2,845 |
Less: Unvested restricted stock awards | (49) | (40) |
Weighted average common shares outstanding used to calculate basic earnings per common share | 2,818 | 2,805 |
Add: Dilutive effect of stock options and restricted stock units | 29 | 10 |
Weighted-average common shares outstanding used to calculate diluted earnings per common share | $ 2,847 | $ 2,815 |
Earnings per common share (basic) | $ 1.24 | $ 1.59 |
Earnings per common share (diluted) | $ 1.23 | $ 1.59 |
Actual regulatory capital posit
Actual regulatory capital position and minimum capital requirements (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Total Capital To Risk Weighted Assets [Member] | ||
Banking Regulation, Total Capital, Actual | $ 155,665 | $ 152,789 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1398 | 0.1408 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 89,075 | $ 86,832 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.080 | 0.080 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 116,911 | $ 113,968 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 10.50% | 10.50% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 111,344 | $ 108,541 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.100 | 0.100 |
Tier 1 Capital To Risk Weighted Assets [Member] | ||
Banking Regulation, Total Capital, Actual | $ 142,567 | $ 139,681 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1280 | 0.1287 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 66,806 | $ 65,124 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.060 | 0.060 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 94,642 | $ 92,259 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 8.50% | 8.50% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 89,075 | $ 86,832 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.080 | 0.080 |
Common Equity Tier 1 Capital To Risk Weighted Assets [Member] | ||
Banking Regulation, Total Capital, Actual | $ 142,567 | $ 139,681 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1280 | 0.1287 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 50,105 | $ 48,843 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.045 | 0.045 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 77,941 | $ 75,978 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 7.00% | 7.00% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 72,374 | $ 70,551 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.065 | 0.065 |
Tier 1 Capital To Average Assets [Member] | ||
Banking Regulation, Total Capital, Actual | $ 142,567 | $ 139,681 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.0966 | 0.0942 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 59,010 | $ 59,285 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.040 | 0.040 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 59,010 | $ 59,285 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 4.00% | 4.00% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 73,763 | $ 74,106 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.050 | 0.050 |
NOTE 9 _ SHAREHOLDERS_ EQUITY_2
NOTE 9 – SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Note 9 Shareholders Equity | ||
Banking Regulation, Risk-Weighted Assets, Actual | $ 1,113,400,000 | $ 1,085,400,000 |
NOTE 10 _ BENEFITS (Details Nar
NOTE 10 – BENEFITS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Note 10 Benefits | |||
Defined Contribution Plan, Administrative Expense | $ 294 | $ 286 | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | 35 | 55 | |
Liability, Pension and Other Postretirement and Postemployment Benefits, Current | 771 | $ 779 | |
[custom:NetCreditToExpenseFuturePostretirementBenefitObligationsUnderEndorsementSplitdollarLifeInsuranceArrangements] | 8 | ||
[custom:ExpensesUnderFuturePostretirementBenefitObligationsUnderEndorsementSplitdollarLifeInsuranceArrangements] | 86 | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 47 | $ 29 |
NOTE 11 _ LONG TERM INCENTIVE_2
NOTE 11 – LONG TERM INCENTIVE PLANS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 14,350 | |
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 813 | |
Deferred Compensation Arrangement with Individual, Compensation Expense | 188 | $ 132 |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 1,550 | 646 |
[custom:PerformancebasedRestrictedStockUnitsPursuantTo2017LongtermIncentivePlanGranted] | 6,950 | |
[custom:PerformancebasedRestrictedStockUnitsPursuantTo2017LongtermIncentivePlanFairValue] | $ 394 | 354 |
[custom:PerformancebasedRestrictedStockUnitsPursuantTo2017LongtermIncentivePlanCompensationExpense] | 97 | 71 |
[custom:ShortTermIncentivePlanExpenseIncludedInCompensationExpenses] | $ 267 | $ 238 |
Outstanding Stock Options 1 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 1,755 | |
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 17.04 |
Assets measured at fair value (
Assets measured at fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
U.S. Government agencies and U.S. Government-sponsored enterprises | ||
U.S. Government agencies | ||
Corporate bonds | ||
Securities available-for-sale | ||
CRA mutual fund | 901 | |
Derivative financial instruments | ||
Assets at fair value on a non-recurring basis | ||
Assets held for sale 1 | 700 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 15,131 | |
U.S. Government Agency notes | 31,604 | |
Municipal bonds | 47,822 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 74,541 | |
U.S. Government agencies | 20,898 | |
Corporate bonds | 12,400 | |
Securities available-for-sale | 202,396 | |
CRA mutual fund | ||
Derivative financial instruments | 18 | |
Assets at fair value on a non-recurring basis | ||
Assets held for sale 1 | ||
Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
U.S. Government agencies and U.S. Government-sponsored enterprises | ||
U.S. Government agencies | ||
Corporate bonds | ||
Securities available-for-sale | ||
CRA mutual fund | ||
Derivative financial instruments | ||
Assets at fair value on a non-recurring basis | ||
Assets held for sale 1 | ||
Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 15,131 | |
U.S. Government Agency notes | 31,604 | |
Municipal bonds | 47,822 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 74,541 | |
U.S. Government agencies | 20,898 | |
Corporate bonds | 12,400 | |
Securities available-for-sale | 202,396 | |
CRA mutual fund | 901 | |
Derivative financial instruments | 18 | |
Assets at fair value on a non-recurring basis | ||
Assets held for sale 1 | $ 700 | |
Fair Value Inputs Level 1 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
U.S. Government agencies and U.S. Government-sponsored enterprises | ||
U.S. Government agencies | ||
Corporate bonds | ||
Securities available-for-sale | ||
CRA mutual fund | 862 | |
Derivative financial instruments | ||
Fair Value Inputs Level 2 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 19,103 | |
U.S. Government Agency notes | 31,933 | |
Municipal bonds | 48,299 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 76,796 | |
U.S. Government agencies | 25,920 | |
Corporate bonds | 13,601 | |
Securities available-for-sale | 215,652 | |
CRA mutual fund | ||
Derivative financial instruments | 47 | |
Fair Value Inputs Level 3 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
U.S. Government agencies and U.S. Government-sponsored enterprises | ||
U.S. Government agencies | ||
Corporate bonds | ||
Securities available-for-sale | ||
CRA mutual fund | ||
Derivative financial instruments | ||
Fair Value Inputs Level 12 And 3 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 19,103 | |
U.S. Government Agency notes | 31,933 | |
Municipal bonds | 48,299 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 76,796 | |
U.S. Government agencies | 25,920 | |
Corporate bonds | 13,601 | |
Securities available-for-sale | 215,652 | |
CRA mutual fund | 862 | |
Derivative financial instruments | $ 47 |
Carrying values and estimated f
Carrying values and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Carrying Reported Amount Fair Value Disclosure S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | $ 98,861 | $ 175,335 |
Interest bearing time deposits with financial institutions | 750 | 750 |
Securities available-for-sale | 215,652 | 202,396 |
CRA mutual fund | 862 | 901 |
Federal Home Loan Bank of Boston stock | 1,077 | 1,397 |
Loans held-for-sale | 1,070 | 2,684 |
Loans receivable, net | 1,066,216 | 1,066,750 |
Accrued interest receivable | 5,895 | 6,260 |
Cash surrender value of life insurance policies | 27,900 | 27,738 |
Derivative financial instruments | 47 | 18 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 370,082 | 416,073 |
Demand (interest-bearing) | 233,893 | 233,600 |
Money market | 317,462 | 330,436 |
Savings and other | 240,824 | 237,075 |
Certificates of deposit | 128,213 | 119,009 |
Deposits | 1,290,474 | 1,336,193 |
Repurchase agreements | 8,161 | 11,430 |
FHLBB advances | 419 | 7,656 |
Subordinated debt | 24,488 | 24,474 |
Note payable | 159 | 170 |
Finance lease liability | 4,363 | 4,107 |
Accrued interest payable | 37 | 49 |
Estimate Of Fair Value Fair Value Disclosure S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 98,861 | 175,335 |
Interest bearing time deposits with financial institutions | 750 | 750 |
Securities available-for-sale | 215,652 | 202,396 |
CRA mutual fund | 862 | 901 |
Federal Home Loan Bank of Boston stock | 1,077 | 1,397 |
Loans held-for-sale | 1,077 | 2,721 |
Loans receivable, net | 1,055,745 | 1,066,733 |
Accrued interest receivable | 5,895 | 6,260 |
Cash surrender value of life insurance policies | 27,900 | 27,738 |
Derivative financial instruments | 47 | 18 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 370,082 | 416,073 |
Demand (interest-bearing) | 233,893 | 233,600 |
Money market | 317,462 | 330,436 |
Savings and other | 240,824 | 237,075 |
Certificates of deposit | 128,663 | 119,716 |
Deposits | 1,290,924 | 1,336,900 |
Repurchase agreements | 8,161 | 11,430 |
FHLBB advances | 419 | 7,714 |
Subordinated debt | 24,409 | 24,409 |
Note payable | 162 | 171 |
Finance lease liability | 4,312 | 4,223 |
Accrued interest payable | 37 | 49 |
Fair Value Inputs Level 1 S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 98,861 | 175,335 |
Interest bearing time deposits with financial institutions | 750 | 750 |
Securities available-for-sale | ||
CRA mutual fund | 862 | 901 |
Federal Home Loan Bank of Boston stock | ||
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance policies | ||
Derivative financial instruments | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | ||
Demand (interest-bearing) | ||
Money market | ||
Savings and other | ||
Certificates of deposit | ||
Deposits | ||
Repurchase agreements | ||
FHLBB advances | ||
Subordinated debt | ||
Note payable | ||
Finance lease liability | ||
Accrued interest payable | ||
Fair Value Inputs Level 2 S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | ||
Interest bearing time deposits with financial institutions | ||
Securities available-for-sale | 215,652 | 202,396 |
CRA mutual fund | ||
Federal Home Loan Bank of Boston stock | 1,077 | 1,397 |
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | 5,895 | 6,260 |
Cash surrender value of life insurance policies | 27,900 | 27,738 |
Derivative financial instruments | 47 | 18 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 370,082 | 416,073 |
Demand (interest-bearing) | 233,893 | 233,600 |
Money market | 317,462 | 330,436 |
Savings and other | 240,824 | 237,075 |
Certificates of deposit | 128,663 | 119,716 |
Deposits | 1,290,924 | 1,336,900 |
Repurchase agreements | 8,161 | 11,430 |
FHLBB advances | 419 | 7,714 |
Subordinated debt | 24,409 | 24,409 |
Note payable | 162 | 171 |
Finance lease liability | ||
Accrued interest payable | 37 | 49 |
Fair Value Inputs Level 3 S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | ||
Interest bearing time deposits with financial institutions | ||
Securities available-for-sale | ||
CRA mutual fund | ||
Federal Home Loan Bank of Boston stock | ||
Loans held-for-sale | 1,077 | 2,721 |
Loans receivable, net | 1,055,745 | 1,066,733 |
Accrued interest receivable | ||
Cash surrender value of life insurance policies | ||
Derivative financial instruments | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | ||
Demand (interest-bearing) | ||
Money market | ||
Savings and other | ||
Certificates of deposit | ||
Deposits | ||
Repurchase agreements | ||
FHLBB advances | ||
Subordinated debt | ||
Note payable | ||
Finance lease liability | 4,312 | 4,223 |
Accrued interest payable |
NOTE 13 _ SUBSEQUENT EVENTS (De
NOTE 13 – SUBSEQUENT EVENTS (Details Narrative) | Apr. 20, 2022$ / shares |
Subsequent Events [Abstract] | |
Dividends Payable, Amount Per Share | $ 0.32 |