Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
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 | 5,807,119 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 6,231 | $ 5,864 |
Interest bearing demand deposits with other banks | 43,613 | 44,675 |
Total cash and cash equivalents | 49,844 | 50,539 |
Securities | ||
Available-for-sale, at fair value | 187,598 | 187,410 |
Mutual funds at fair value | 2,068 | 1,933 |
Federal Home Loan Bank of Boston stock at cost | 5,030 | 1,285 |
Loans receivable, net (allowance for credit losses: $16,009 and $14,846) | 1,234,632 | 1,213,671 |
Bank premises and equipment, net | 21,597 | 22,148 |
Goodwill | 13,815 | 13,815 |
Intangible assets (net of accumulated amortization: $5,691 and $5,654) | 188 | 227 |
Accrued interest receivable | 6,383 | 6,797 |
Cash surrender value of life insurance policies | 30,571 | 30,379 |
Deferred taxes | 8,234 | 8,492 |
Other assets | 5,374 | 4,886 |
Total Assets | 1,565,334 | 1,541,582 |
Deposits | ||
Demand (non-interest bearing) | 370,049 | 395,994 |
Demand (interest bearing) | 218,902 | 231,486 |
Money market | 296,974 | 343,965 |
Savings and other | 236,755 | 233,578 |
Certificates of deposit | 170,362 | 153,370 |
Total deposits | 1,293,042 | 1,358,393 |
Repurchase agreements | 3,230 | 7,228 |
Federal Home Loan Bank of Boston advances | 100,000 | 10,000 |
Subordinated debt | 24,545 | 24,531 |
Note payable | 117 | 128 |
Finance lease obligations | 4,225 | 4,262 |
Accrued interest and other liabilities | 7,820 | 8,685 |
Total Liabilities | 1,432,979 | 1,413,227 |
Shareholders' Equity | ||
Outstanding: 5,807,719 and 5,798,816 | 581 | 580 |
Unearned compensation – restricted stock awards | (961) | (1,144) |
Paid-in capital | 47,396 | 47,466 |
Retained earnings | 103,371 | 102,178 |
Accumulated other comprehensive loss, net | (18,032) | (20,725) |
Total Shareholders' Equity | 132,355 | 128,355 |
Total Liabilities and Shareholders' Equity | $ 1,565,334 | $ 1,541,582 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
[custom:AllowanceForCreditLossesOnLoansReceivableNet-0] | $ 16,009 | $ 14,846 |
[custom:AccumulatedAmortizationOfIntangibleAssets-0] | $ 5,691 | $ 5,654 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 5,807,719 | 5,798,816 |
Common Stock, Shares, Outstanding | 5,807,719 | 5,798,816 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest and dividend income | ||
Interest and fees on loans | $ 13,250 | $ 10,163 |
Interest on debt securities | ||
Taxable | 1,068 | 724 |
Tax exempt | 212 | 174 |
Other interest and dividends | 393 | 57 |
Total interest and dividend income | 14,923 | 11,118 |
Interest expense | ||
Deposits | 2,818 | 478 |
Repurchase agreements | 16 | 3 |
Finance lease | 40 | 41 |
Note payable | 2 | 2 |
Subordinated Debt | 233 | 233 |
Federal Home Loan Bank of Boston advances | 687 | 55 |
Total interest expense | 3,796 | 812 |
Net interest and dividend income | 11,127 | 10,306 |
Provision for credit losses | 1,016 | 363 |
Net interest and dividend income after provision for credit losses | 10,111 | 9,943 |
Non-interest income | ||
Trust and wealth advisory | 1,153 | 1,241 |
Service charges and fees | 1,235 | 1,138 |
Mortgage banking activities, net | 59 | 355 |
Gains (losses) on mutual funds | 20 | (42) |
Gains on sales of available -for-sale securities, net | 210 | |
BOLI income | 192 | 162 |
Other | 34 | 30 |
Total non-interest income | 2,693 | 3,094 |
Non-interest expense | ||
Salaries | 3,721 | 3,479 |
Employee benefits | 1,468 | 1,277 |
Premises and equipment | 1,105 | 1,104 |
Loss on write-down and sale of assets | 158 | 9 |
Information processing and services | 831 | 685 |
Professional fees | 945 | 787 |
Collections, OREO, and loan related | 72 | 117 |
FDIC insurance | 98 | 171 |
Marketing and community support | 127 | 184 |
Amortization of intangibles | 39 | 54 |
Other | 470 | 786 |
Total non-interest expense | 9,034 | 8,653 |
Income before income taxes | 3,770 | 4,384 |
Income tax provision | 752 | 816 |
Net income | 3,018 | 3,568 |
Net income available to common shareholders | $ 2,968 | $ 3,508 |
Basic earnings per common share 1 | $ 0.52 | $ 0.62 |
Diluted earnings per common share 1 | 0.52 | 0.62 |
Common dividends per share 1 | $ 0.16 | $ 0.16 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net income | $ 3,018 | $ 3,568 |
Other comprehensive income (loss) | ||
Net unrealized income (loss) on securities available-for-sale | 3,409 | (11,549) |
Reclassification of net realized loss in net income (1) | (210) | |
Unrealized income (loss) on securities available-for-sale | 3,409 | (11,759) |
Income tax (expense) benefit | (716) | 2,470 |
Unrealized income (loss) on securities available-for-sale, net of tax | 2,693 | (9,289) |
Comprehensive income (loss) | $ 5,711 | $ (5,721) |
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, 2021 | $ 286 | $ 46,374 | $ 89,995 | $ 925 | $ 870 | $ 136,600 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 | 5,723,394 | |||||
Net income | 3,568 | 3,568 | ||||
Other comprehensive income, net of tax | (9,289) | (9,289) | ||||
Common stock dividends declared ($0.16 per share) | (915) | (915) | ||||
Issuance of restricted common stock | $ 2 | 811 | (813) | |||
[custom:StockIssuedDuringPeriodSharesRestrictedCommonStock] | 28,700 | |||||
Issuance of restricted stock units upon vesting | ||||||
[custom:StockIssuedDuringPeriodSharesRestrictedStockUnitsUponVesting] | 12,900 | |||||
Net settlement impact of performance restricted stock units upon vesting | (183) | (183) | ||||
[custom:NetSettlementImpactForVestingOfPerformanceRestrictedStockUnitsShares] | (78) | |||||
Stock based compensation-restricted stock awards | 97 | 188 | 285 | |||
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 | 5,764,916 | |||||
Beginning balance, value at Dec. 31, 2022 | $ 580 | 47,466 | 102,178 | 1,144 | (20,725) | 128,355 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2022 | 5,798,816 | |||||
Net income | 3,018 | 3,018 | ||||
Other comprehensive income, net of tax | 2,693 | 2,693 | ||||
Common stock dividends declared ($0.16 per share) | (927) | (927) | ||||
Issuance of restricted stock units upon vesting | $ 1 | 1 | ||||
[custom:StockIssuedDuringPeriodSharesRestrictedStockUnitsUponVesting] | 13,473 | |||||
Net settlement impact of performance restricted stock units upon vesting | (112) | (112) | ||||
[custom:NetSettlementImpactForVestingOfPerformanceRestrictedStockUnitsShares] | (4,570) | |||||
Stock based compensation-restricted stock awards | 42 | 183 | 225 | |||
Cumulative effect of accounting changes (Note 1) | (898) | (898) | ||||
Ending balance, value at Mar. 31, 2023 | $ 581 | $ 47,396 | $ 103,371 | $ 961 | $ (18,032) | $ 132,355 |
Shares, Outstanding, Ending Balance at Mar. 31, 2023 | 5,807,719 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities | ||
Net income | $ 3,018,000 | $ 3,568,000 |
(Accretion), amortization and depreciation: | ||
Securities | 311,000 | 361,000 |
Bank premises and equipment | 396,000 | 392,000 |
Core deposit intangible | 39,000 | 53,000 |
Modification fees on Federal Home Loan Bank of Boston advances | 21,000 | |
Subordinated debt issuance costs | 14,000 | 14,000 |
Mortgage servicing rights | 26,000 | 39,000 |
(Gains) and losses, including write-downs | ||
(Gain) loss on mutual funds | (20,000) | 42,000 |
Gain on sales of securities available-for-sale, net | (210,000) | |
Gain on sales of loans, excluding capitalized servicing rights | (275,000) | |
Sales/disposals of premises and equipment | 158,000 | 9,000 |
Provision for credit losses | 1,016,000 | 363,000 |
Proceeds from loans sold | 8,852,000 | |
Loans originated for sale | (6,963,000) | |
Decrease (increase) in deferred loan origination fees and costs, net | 126,000 | (476,000) |
Mortgage servicing rights originated | (55,000) | |
Decrease in interest receivable | 414,000 | 365,000 |
Deferred tax (benefit) expense | (172,000) | 467,000 |
Increase in prepaid expenses | (119,000) | (111,000) |
Increase in cash surrender value of life insurance policies | (192,000) | (162,000) |
(Increase) decrease in other assets | (395,000) | 403,000 |
Decrease in income tax receivable | 79,000 | |
Decrease in accrued expenses | (2,598,000) | (1,537,000) |
Increase in income tax payable | 702,000 | |
Decrease in interest payable | (230,000) | (12,000) |
Increase (decrease) in other liabilities | 256,000 | (53,000) |
Stock based compensation-restricted stock awards | 225,000 | 285,000 |
Net cash provided by operating activities | 2,975,000 | 5,459,000 |
Investing Activities | ||
Net redemptions of Federal Home Loan Bank of Boston stock | (3,745,000) | 320,000 |
Purchases of securities available-for-sale | (145,297,000) | |
Purchase/reinvestment of mutual funds | (115,000) | (3,000) |
Proceeds from sales of securities available-for-sale | 17,718,000 | |
Proceeds from maturities/principal payments of securities available-for-sale | 2,910,000 | 102,413,000 |
Loan originations and principal collections, net | (22,285,000) | 641,000 |
Recoveries of loans previously charged off | 3,000 | 6,000 |
Capital expenditures | (3,000) | (343,000) |
Net cash utilized by investing activities | (23,235,000) | (24,545,000) |
Financing Activities | ||
Decrease in deposit transaction accounts, net | (82,343,000) | (54,923,000) |
Increase in time deposits, net | 16,992,000 | 9,204,000 |
Decrease in securities sold under agreements to repurchase, net | (3,998,000) | (3,269,000) |
Repayments of Federal Home Loan Bank of Boston long term advances | (6,000,000) | |
Federal Home Loan Bank of Boston short term advances(net) | 90,000,000 | |
Principal payments on amortizing FHLB Advances | (1,258,000) | |
Principal payments on note payable | (11,000) | (11,000) |
Principal payments on finance lease obligations | (37,000) | (33,000) |
Net settlement of restricted stock units | (111,000) | (183,000) |
Common stock dividends paid | (927,000) | (915,000) |
Net cash provided (utilized) by financing activities | 19,565,000 | (57,388,000) |
Net decrease in cash and cash equivalents | (695,000) | (76,474,000) |
Cash and cash equivalents, beginning of period | 50,539,000 | 175,335,000 |
Cash and cash equivalents, end of period | 49,844,000 | 98,861,000 |
Cash paid during period | ||
Interest | 3,567,000 | 789,000 |
Income taxes | 221,000 | 270,000 |
Non cash investing and financing activities: | ||
Fixed Asset | 65,000 | 289,000 |
Finance lease liability | (65,000) | (289,000) |
Loans transferred to Loans Held for Sale | $ 3,389,000 |
NOTE 1 - BASIS OF PRESENTATION
NOTE 1 - BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
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 (loss), 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 credit 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, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2022 Annual Report on Form 10-K for the year ended December 31, 2022. In June 2016, the FASB issued Accounting Standards Update (ASU) ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and related subsequent amendments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected losses under the CECL methodology is applicable to financial assets measured at amortized cost, as well as unfunded commitments that are considered off-balance sheet credit exposures at the reporting date. The measurement is based on historical experience, current conditions, and reasonable and supportable forecasts. Financial Institutions and other organizations will now use forward-looking information to enhance their credit loss estimates. The update requires enhanced disclosures to help investors and other financial statements users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. The current expected credit loss measurement will be used to estimate the allowance for credit losses (“ACL”) over the life of the financial assets. Salisbury adopted CECL on January 1, 2023. Under CECL, the Bank determines its allowance for credit losses on loans using pools of assets with similar risk characteristics. The Bank segments its loan portfolio by loan type, to evaluate loans with similar risk characteristics for credit risk. The Bank’s lifetime credit loss models are based on historical data and incorporate forecasts of macroeconomic variables, expected prepayments and recoveries. Non-economic qualitative factors are also evaluated for each loan segment. A four-quarter reasonable and supportable forecast period is currently used for all loan portfolios. When the risk characteristics of a loan no longer match the characteristics of the collective pool, the loan is removed from the pool and individually assessed for credit losses. Generally, non-accrual loans and collateral dependent loans are individually assessed. The individual assessment for credit impairment is generally based on a discounted cash flow approach unless the asset is collateral dependent. A loan is considered collateral dependent when repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Collateral dependent loans are individually assessed and the expected credit loss is based on the fair value of the collateral. The fair value is reduced for estimated costs to sell if the value of the collateral is expected to be realized through sale. The Bank has elected to present accrued interest receivable separately from the amortized cost basis on the balance sheet and is not estimating an allowance for credit loss on accrued interest. This election applies to loans as well as debt securities. The Bank’s non-accrual polices have not changed as a result of adopting CECL. On January 1, 2023 Salisbury adopted ASC 326 using the modified retrospective approach method for all financial assets measured at amortized cost. Results for the reporting periods after January 1, 2023 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. On the adoption date, the Bank increased the allowance for credit losses for loans by $ 0.2 0.9 (in thousands) December 31, 2022 Impact of ASC 326 January 1, 2023 Assets: Loans $ 1,228,517 $ — $ 1,228,517 Allowance for credit losses on loans (14,846 ) (271 ) (15,117 ) Deferred tax assets, net 8,492 286 8,778 Liabilities and shareholders’ equity: Other liabilities (ACL unfunded loan commitments) 178 913 1,091 Retained Earnings 102,178 (898 ) 101,280 In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three year period the day one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. Allowance for Credit Losses – Available-For-Sale Securities: For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell a security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Recent Accounting Pronouncements In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848).” In 2020, the Board issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. The Board included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. At the time that Update 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022—12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the FCA announced that the intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. Because the current relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, the amendments in this Update defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The amendments in this ASU were effective upon issuance. |
NOTE 2 _ ACQUISITIONS AND DISPO
NOTE 2 – ACQUISITIONS AND DISPOSITIONS | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
NOTE 2 – ACQUISITIONS AND DISPOSITIONS | NOTE 2 – ACQUISITIONS AND DISPOSITIONS Pending Acquisition On December 5, 2022, Salisbury and NBT Bancorp Inc. (“NBT”) announced that they entered into a definitive agreement under which Salisbury will merge with and into NBT, with NBT as the surviving entity, in an all-stock transaction. Immediately thereafter, the Bank will merge with and into NBT Bank, with NBT Bank as the surviving bank. Under the terms of the agreement, each share of Salisbury common stock will be converted into the right to receive 0.745 shares of NBT common stock. The merger is expected to be consummated in second quarter 2023, subject to regulatory approval. Merger-related expenses totaling $ 385 |
NOTE 3 - SECURITIES
NOTE 3 - SECURITIES | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
NOTE 3 - SECURITIES | NOTE 3 - 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, 2023 Available-for-sale U.S. Treasury $ 19,299 $ — $ 1,820 $ 17,479 U.S. Government Agency notes 29,017 58 2,231 26,844 Municipal bonds 55,099 — 6,900 48,199 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 67,804 19 7,273 60,550 Collateralized mortgage obligations: U.S. Government agencies 24,954 — 3,039 21,915 Corporate bonds 14,250 — 1,639 12,611 Total securities available-for-sale $ 210,423 $ 77 $ 22,902 $ 187,598 Mutual funds $ 2,068 Non-marketable securities Federal Home Loan Bank of Boston stock $ 5,030 $ — $ — $ 5,030 (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value December 31, 2022 Available-for-sale U.S. Treasury $ 19,283 $ — $ 2,150 $ 17,133 U.S. Government Agency notes 29,696 94 2,636 27,154 Municipal bonds 55,179 — 8,641 46,538 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 69,866 20 8,011 61,875 Collateralized mortgage obligations: U.S. Government agencies 25,370 — 3,434 21,936 Corporate bonds 14,250 — 1,476 12,774 Total securities available-for-sale $ 213,644 $ 114 $ 26,348 $ 187,410 Mutual Funds $ 1,933 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,285 $ — $ — $ 1,285 Salisbury did not sell any available-for-sale securities during the three-month periods ended March 31, 2023. Salisbury sold $ 17.7 451 241 210 44 The following tables summarize the aggregate fair value and gross unrealized losses 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, 2023 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ — $ — $ 17,479 $ 1,820 $ 17,479 $ 1,820 U.S. Government Agency notes 2,839 123 18,567 2,108 21,406 2,231 Municipal bonds 8,334 326 39,864 6,574 48,198 6,900 Mortgage- backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 4,826 8 53,266 7,265 58,092 7,273 Collateralized mortgage obligations: U.S. Government agencies 2,648 191 19,267 2,848 21,915 3,039 Corporate bonds 7,892 858 4,719 781 12,611 1,639 Total temporarily impaired securities $ 26,539 $ 1,506 $ 153,162 $ 21,396 $ 179,701 $ 22,902 Less than 12 Months 12 Months or Longer Total December 31, 2022 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 6,435 $ 484 $ 10,698 $ 1,666 $ 17,133 $ 2,150 U.S. Government Agency notes 3,106 158 17,467 2,478 20,573 2,636 Municipal bonds 37,277 5,950 9,261 2,691 46,538 8,641 Mortgage-backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 18,861 1,559 39,909 6,452 58,770 8,011 Collateralized mortgage obligations 14,333 1,782 7,603 1,652 21,936 3,434 Corporate bonds 11,251 1,249 1,523 227 12,774 1,476 Total temporarily impaired securities $ 91,263 $ 11,182 $ 86,461 $ 15,166 $ 177,724 $ 26,348 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, 2023 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Treasury After 1 year but within 5 years $ 10,814 $ 10,005 1.29 % After 5 year but within 10 years 8,485 7,474 1.17 Total 19,299 17,479 1.24 U.S. Government Agency notes After 1 year but within 5 years 7,964 7,100 1.05 After 5 year but within 10 years 7,960 6,863 1.42 Total 15,924 13,963 1.23 Municipal bonds After 1 year but within 5 years 1,486 1,343 2.11 After 5 year but within 10 years 14,308 12,054 2.31 After 10 years but within 15 years 15,458 13,580 2.33 After 15 years 23,847 21,222 2.73 Total 55,099 48,199 2.49 Mortgage-backed securities, U.S. Government Agency and Collateralized mortgage obligations Securities not due at a single maturity date 105,851 95,346 2.95 Total 105,851 95,346 2.95 Corporate bonds After 5 years but within 10 years 14,250 12,611 4.46 After 10 years but within 15 years — — Total 14,250 12,611 4.46 Securities available-for-sale $ 210,423 $ 187,598 2.79 % (1) For the three months ended March 31, 2023 and 2022, the unrealized losses on the Company’s available-for-sale debt securities have not been recognized into income because management does not intend to sell and it is not more-likely-than-not it will be required to sell any of the available-for-sale debt securities before recovery of its amortized cost basis. Furthermore, the unrealized losses were due to changes in interest rates and other market conditions and were not reflective of credit events. The issuers continue to make timely principal and interest payments on the bonds. Agency-backed and government sponsored have a long 40 year history with no credit losses, including during times of severe stress such as the 2007-2008 financial crisis. The principal and interest payments on agency guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guarantee principal and interest payments and carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses. At March 31, 2023 and December 31, 2022, total accrued interest receivable on available-for-sale debt securities, which has been excluded from the reported amortized cost basis on available-for-sale debt securities, was $ 0.62 0.56 |
NOTE 4 _ LOANS AND ALLOWANCE FO
NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES | NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES Salisbury segregates its loan portfolio into discrete loan pools for purposes of evaluating credit risk. Each loan pool possesses unique risk characteristics that are considered when determining the appropriate level of allowance. As of March 31, 2023, the Company aggregated the individual loan pools as follows: Commercial & Industrial - Commercial loans consist of revolving and term loan obligations extended to businesses, municipalities and educational facilities for the purpose of financing working capital and/or capital investment. Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, and/or real estate, if applicable. Commercial loans are primarily paid by the operating cash flow of the borrower. Commercial loans may be secured or unsecured. Commercial Real Estate – Commercial real estate loans include non-owner-occupied and owner-occupied properties as well as loans for agricultural purposes and land development. Commercial real estate loans consist of mortgage loans to finance investments in real property such as multi-family residential, commercial/retail, office, industrial, hotels, health care facilities and other specific use properties. Commercial real estate loans are typically written with amortizing payment structures. Collateral values are determined based upon appraisals and evaluations in accordance with established policy guidelines. Maximum loan-to-value ratios at origination are governed by established policy and regulatory guidelines. Commercial real estate loans are primarily paid by the cash flow generated from the real property, such as operating leases, rents, or other operating cash flows from the borrower. Residential Real Estate - Residential real estate loans are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Collateral consists of mortgage liens on one-to four-family residences, including for investment purposes. Consumer - Home equity loans and lines of credit are made to qualified individuals and are secured by senior or junior mortgage liens on owner-occupied one-to four-family homes, condominiums, or vacation homes. The home equity loan has a fixed rate and is billed as equal payments comprised of principal and interest. The home equity line of credit has a variable rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Consumer loan products including personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, auto loans, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines, as applicable. Consumer loans may be secured or unsecured. The table below provides the composition of loans receivable. Commercial and industrial loans include loans to businesses, municipalities and independent schools. Commercial real estate includes construction, commercial, residential 5+ multi-family, farm and vacant land loans. Residential real estate includes residential 1-4 family and residential construction loans. Consumer includes HELOC, consumer, indirect auto loans and overdrafts. (In thousands) March 31, 2023 December 31, 2022 1 Commercial & Industrial $ 232,033 $ 239,997 Commercial real estate 515,266 491,659 Residential real estate 457,506 449,652 Consumer 44,961 46,208 Total Loans 1,249,766 1,227,516 Deferred loan origination costs, net 875 1,001 Allowance for credit losses (16,009 ) (14,846 ) Loans receivable, net $ 1,234,632 $ 1,213,671 1 On January 1, 2023, the Bank adopted ASU 326 to calculate the allowance for credit losses. The impact of adopting this standard during first quarter 2023 was a net increase in the allowance for credit losses of $ 0.3 Also included within scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and commitments “in-process”, which reflect loans that are not in Salisbury’s gross loans receivable balance as of the balance sheet date but rather negotiated loan/line of credit terms and rates that the Bank has offered to customers and is committed to honoring. In reference to “in-process” credits, the Bank defines an unfunded commitment as a credit that has been offered to and accepted by a borrower, which has not closed and by which the obligation is not unconditionally cancellable. The Bank estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Bank. The allowance for credit losses on off-balance sheet exposures includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments to be funded over its estimated life. At March 31, 2023, the allowance for off-balance-sheet credit losses was $ 1.2 0.2 92 0.2 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, 2023 and December 31, 2022, Salisbury serviced commercial loans for other banks under loan participation agreements totaling $ 66.5 64.1 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 32% 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 10% 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 4% 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 209% as of March 31, 2023 and 198% at December 31, 2022 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. Credit Quality Salisbury uses credit risk ratings as part of its determination of the allowance for credit 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. 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. Based on the most recent analysis performed, the risk category of loans by segment and by vintage, reported under the CECL methodology, is presented below. Commercial and industrial loans include loans to businesses, municipalities and independent schools. Commercial real estate includes construction, commercial, residential 5+ multi-family, farm and vacant land loans. Residential real estate includes residential 1-4 family and residential construction loans. Consumer includes HELOC, consumer, indirect auto loans and overdrafts. (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2023 Commercial & industrial Risk rating Pass $ 6,472 $ 55,315 $ 41,258 $ 30,157 $ 16,644 $ 39,817 $ 34,648 $ — $ 224,311 Special mention — 300 — — — 5,584 350 — 6,234 Substandard — — — — 633 154 701 — 1,488 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial & industrial $ 6,472 $ 55,615 $ 41,258 $ 30,157 $ 17,277 $ 45,555 $ 35,699 $ — $ 232,033 Commercial real estate Risk rating Pass $ 26,352 $ 147,533 $ 109,300 $ 67,765 $ 25,899 $ 126,509 $ — $ — $ 503,358 Special mention — — — 3,576 — 2,942 — — 6,518 Substandard — — — — 3,751 1,639 — — 5,390 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate $ 26,352 $ 147,533 $ 109,300 $ 71,341 $ 29,650 $ 131,090 $ — $ — $ 515,266 Residential real estate Risk rating Pass $ 12,583 $ 104,906 $ 115,289 $ 64,488 $ 27,118 $ 127,790 $ 165 $ — $ 452,339 Special mention — — — 21 — 3,239 — — 3,260 Substandard — — 668 — — 1,239 — — 1,907 Doubtful — — — — — — — — — Loss — — — — — — — — — Total residential real estate $ 12,583 $ 104,906 $ 115,957 $ 64,509 $ 27,118 $ 132,268 $ 165 $ — $ 457,506 Consumer Risk rating Pass $ 790 $ 1,653 $ 945 $ 256 $ 408 $ 15,492 $ 22,808 $ 2,439 $ 44,791 Special mention — — — — — — 97 61 158 Substandard — — — — — 4 8 — 12 Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer $ 790 $ 1,653 $ 945 $ 256 $ 408 $ 15,496 $ 22,913 $ 2,500 $ 44,961 Total loans $ 46,197 $ 309,707 $ 267,460 $ 166,263 $ 74,453 $ 324,409 $ 58,777 $ 2,500 $ 1,249,766 Total Gross Charge-offs $ ( 18 ) $ (13 ) $ ( 4 ) $ — $ — $ — $ — $ — $ (35 ) Total Recoveries 3 — — — — — — — 3 Total Net Charge-offs $ ( 15 ) $ ( 13 ) $ ( 4 ) $ — $ — $ — — $ — $ ( 32 ) The composition of loans receivable by risk rating grade, under the incurred loss methodology is as follows: (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2022 Commercial & industrial $ 232,259 $ 6,195 $ 1,543 $ — $ — $ 239,997 Commercial real estate 477,006 8,798 5,855 — — 491,659 Residential real estate 444,778 2,995 1,879 — — 449,652 Consumer 46,041 162 5 — — 46,208 Loans receivable, gross $ 1,200,084 $ 18,150 $ 9,282 $ — $ — $ 1,227,516 A financial asset is considered collateral dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment: The following table presents the amortized cost basis of collateral-dependent non-accrual loans as of March 31, 2023. Commercial and industrial loans include loans to businesses, municipalities and independent schools. Commercial real estate includes construction, commercial, residential 5+ multi-family, farm and vacant land loans. Residential real estate includes residential 1-4 family and residential construction loans. Consumer includes HELOC, consumer, indirect auto loans and overdrafts. Collateral Type (in thousands) Real Estate Business Assets Total Collateral-Dependent Non-Accrual Loans March 31, 2023 Commercial & industrial $ — $ 144 $ 144 Commercial real estate 1,222 — 1,222 Residential real estate 858 — 858 Consumer 8 9 17 Total $ 2,088 $ 153 $ 2,241 The following is a summary of loans by past due status at March 31, 2023: Past due (in thousands) Current 30-59 days 60-89 days 90 days or Greater Past Due Total Past Due Total Loans Outstanding Loans Greater than 90 Days Past Due and Accruing March 31, 2023 Commercial & industrial $ 231,733 $ 300 $ — $ — $ 300 $ 232,033 $ — Commercial real estate 514,822 359 — 85 443 515,266 — Residential real estate 456,300 1,124 67 15 1,207 457,506 — Consumer 44,513 373 58 17 448 44,961 — Total $ 1,247,368 $ 2,156 $ 125 $ 117 $ 2,398 $ 1,249,766 $ — The following is a summary of the amortized cost basis of loans on non-accrual status . March 31, 2023 December 31, 2022 (in thousands) Non-Accrual Loans with an Allowance Non-Accrual Loans without an Allowance Total Non-Accrual Loans Total Non-Accrual Loans Commercial & industrial $ — $ 144 $ 144 $ 189 Commercial real estate — 1,222 1,222 1,648 Residential real estate — 858 858 820 Consumer 9 8 17 5 Total $ 9 $ 2,232 $ 2,241 $ 2,662 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, 2022 Commercial & industrial $ 239,847 $ 149 $ 1 $ — $ — $ 150 $ — $ 189 Commercial real estate 491,574 — — 85 — 85 — 1,648 Residential real estate 448,935 672 30 — 15 717 — 820 Consumer 45,677 442 84 5 — 531 — 5 Loans receivable, gross $ 1,226,033 $ 1,263 $ 115 $ 90 $ 15 $ 1,483 $ — $ 2,662 Loan Modifications Made to Borrowers Experiencing Financial Difficulty The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. Salisbury uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses as a result of the measurement methodologies used to estimate the allowance, a change in the allowance for credit losses is generally not recorded upon modification. In certain instances, Salisbury will modify a loan by providing multiple types of concessions. Typically, one type of concession, such as term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as an interest rate reduction, may be granted. Salisbury did not restructure any troubled debt in the first quarter of 2023 or 2022. The components of troubled debt restructured loans at December 31, 2022 are as follows: (in thousands) December 31, 2022 Commercial & industrial $ — Commercial real estate 1,381 Residential real estate 1,289 Consumer — Accruing troubled debt restructured loans 2,670 Commercial & industrial — Commercial real estate — Residential real estate 67 Consumer — Non-accrual troubled debt restructured loans 67 Troubled debt restructured loans $ 2,737 The past due status of troubled debt restructured loans at December 31, 2022 is as follows: (in thousands) December 31, 2022 Current $ 2,670 Past due 30-59 days — Past due 60-89 days — Accruing troubled debt restructured loans 2,670 Current — Past due 30-59 days 67 Past due 180 days and over — Non-accrual troubled debt restructured loans 67 Total troubled debt restructured loans $ 2,737 Allowance for Credit Losses for Loans The ACL on loans at March 31, 2023, was $16.0 million, an increase of $1.2 million, or 7.8%, since December 31, 2022. The increase was driven by the adoption of CECL, effective January 1, 2023, and the estimate of expected credit losses based on certain macro-economic factors. At March 31, 2023, the ACL on loans estimate used a reasonable and supportable forecast period of one year across all of its loan segments. At March 31, 2023, the reasonable and supportable forecast used to estimate the ACL on loans used the following loss drivers by loan segment: (i) Commercial & Industrial – National Gross Domestic Product (“GDP”) and National Unemployment; (ii) Commercial Real Estate - National GDP and National Unemployment; (iii) Residential Real Estate – National Housing Price Index and National Unemployment; (iv) Consumer - National Unemployment. National GDP and National Unemployment are sourced from the Federal Reserve Open Market Committee’s published forecast whereas the National Housing Price Index is sourced from the Federal National Mortgage Association’s published forecast. The Company's qualitative factors at March 31, 2023, included consideration of the level of uncertainty surrounding the impact of macro-economic factors such as interest rates, inflation, supply chain disruption, geo-political events as well as other factors. At March 31, 2023, the ACL estimate for loans used a reversion period of two years for each loan segment. The increase in the ACL on loans at March 31, 2023 compared with March 31, 2022, for the commercial & industrial and commercial real estate loan segments was primarily driven by changes in loan balances as well as changes in current and forecasted economic conditions between reporting periods. The increase in the ACL on loans in the residential real estate and consumer loan segments was primarily driven by changes in loan balances and a decline in the national housing price index between reporting periods. The activity in Salisbury’s allowance for credit losses for loans is presented below. Commercial and industrial loans include loans to businesses, municipalities and independent schools. Commercial real estate includes construction, commercial, residential 5+ multi-family, farm and vacant land loans. Residential real estate includes residential 1-4 family and residential construction loans. Consumer includes HELOC, consumer, indirect auto loans and overdrafts. Three Months Ended March 31, 2023 (in thousands) Beginning balance Impact of Adopting ASC 326 Subtotal Provision for Credit Losses Charge-offs Recoveries Ending balance Commercial & industrial $ 1,921 $ 2,447 $ 4,368 $ (89 ) $ — $ — $ 4,279 Commercial real estate 8,425 (3,236 ) 5,189 705 — — 5,894 Residential real estate 4,108 831 4,939 287 — — 5,226 Consumer 392 229 621 21 (35 ) 3 610 Total allowance for credit losses $ 14,846 $ 271 $ 15,117 $ 924 $ (35 ) $ 3 $ 16,009 Three months ended March 31, 2022 (in thousands) Beginning balance Provision Charge-offs Recoveries Ending balance Commercial & industrial $ 1,811 $ (173 ) $ (46 ) $ 1 $ 1,593 Commercial real estate 6,973 261 (334 ) — 6,900 Residential real estate 3,020 252 (16 ) — 3,253 Consumer 277 37 (17 ) 5 302 Unallocated 881 (14 ) — — 867 Totals $ 12,962 $ 363 $ (416 ) $ 6 $ 12,915 374 3.8 239 The Bank’s allowance for credit losses on unfunded commitments is recognized as a liability (in other liabilities on consolidated balance sheet), with adjustments to the reserve recognized in the provision for credit losses in the consolidated income statement. The Bank’s activity in the allowance for credit losses on unfunded commitments for the three months ended March 31, 2023 and 2022 was as follows: Three months ended March 31, 2023 Balance at the beginning of period December 31, 2022 $ 178 Impact of adopting ASC 326 913 Subtotal 1,091 Provision for credit losses 92 Balance at the end of period March 31, 2023 $ 1,183 Three months ended March 31, 2022 Balance at the beginning of period December 31, 2021 $ 146 Other expense – unfunded commitments 37 Balance at the end of period March 31, 2022 $ 183 The composition of loans receivable and the allowance for credit losses is presented in the tables below. The loan categories for previously reported periods have been updated to conform to the current presentation. (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance March 31, 2023 Commercial & industrial $ 231,889 $ 4,279 $ 144 $ — $ 232,033 $ 4,279 Commercial real estate 514,044 5,894 1,222 — 515,266 5,894 Residential real estate 456,648 5,226 858 — 457,506 5,226 Consumer 44,953 610 8 — 44,961 610 Totals $ 1,247,534 $ 16,009 $ 2,232 $ — $ 1,249,766 $ 16,009 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2022 Commercial & industrial $ 239,808 $ 1,780 $ 189 $ — $ 239,997 $ 1,780 Commercial real estate 488,630 7,781 3,029 22 491,659 7,803 Residential real estate 447,543 3,805 2,109 — 449,652 3,805 Consumer 46,203 363 5 — 46,208 363 Unallocated allowance — 1,095 — — — 1,095 Totals $ 1,222,184 $ 14,824 $ 5,332 $ 22 $ 1,227,516 $ 14,846 Certain data with respect to loans individually evaluated for impairment is presented in the tables below. Loans with no specific allowance Loan balance Income Book Note Average Recognized March 31, 2023 Commercial & industrial $ 144 $ 244 $ 165 $ — Commercial real estate 1,222 1,748 1,619 14 Residential real estate 858 941 1,170 — Consumer 8 8 31 — Totals $ 2,232 $ 2,941 $ 2,985 $ 14 Certain data with respect to loans individually evaluated for impairment is as follows as of and for the three months ended March 31, 2022: 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 Commercial & industrial $ 76 $ 76 $ 146 $ 3 $ 1 $ 28 $ 25 $ 79 $ — Commercial real estate 598 598 602 23 7 3,174 3,785 3,282 11 Residential real estate — — 21 — — 1,938 2,020 2,944 14 Consumer — — — — — — — 15 — Totals $ 674 $ 674 $ 769 $ 26 $ 8 $ 5,140 $ 5,830 $ 6,320 $ 25 |
NOTE 5 _ LEASES
NOTE 5 – LEASES | 3 Months Ended |
Mar. 31, 2023 | |
Note 5 Leases | |
NOTE 5 – LEASES | NOTE 5 – 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, 2023 and December 31, 2022, 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, 2023 and 2022. ($ in thousands, except lease term and discount rate) Classification March 31, 2023 December 31, 2022 Assets Operating Other assets $ 1,183 $ 1,175 Finance Bank premises and equipment 1 3,800 3,856 Total leased assets $ 4 ,983 $ 5,031 Liabilities Operating Other liabilities $ 1,183 $ 1,175 Finance Finance lease 4,225 4,262 Total lease liabilities $ 5,408 $ 5,437 1 Lease cost Classification Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 Operating leases Premises and equipment $ 76 $ 74 Finance leases: Amortization of leased assets Premises and equipment 56 35 Interest on finance leases Interest expense 40 41 Total lease cost $ 172 $ 150 Weighted Average Remaining Lease Term March 31, 2023 December 31, 2022 Operating leases 5.6 years 5.9 years Financing leases 21.5 years 21.5 years Weighted Average Discount Rate 1 Operating leases 3.74 % 3.63 % Financing leases 3.76 % 3.74 % 1 Future minimum lease payments (in thousands) Operating Leases Finance Leases 2023 $ 201 $ 228 2024 270 314 2025 218 323 2026 213 334 2027 188 344 Thereafter 242 4,924 Total future minimum lease payments 1,333 6,167 Less amount representing interest (150 ) (1,941 ) Total present value of net future minimum lease payments $ 1,183 $ 4,225 |
NOTE 6 - MORTGAGE SERVICING RIG
NOTE 6 - MORTGAGE SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2023 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
NOTE 6 - MORTGAGE SERVICING RIGHTS | NOTE 6 - MORTGAGE SERVICING RIGHTS (in thousands) March 31, 2023 December 31, 2022 Residential mortgage loans serviced for others $ 130,275 $ 133,100 Fair value of mortgage servicing rights 1,309 1,376 Changes in mortgage servicing rights are as follows: Three months ended March 31, (in thousands) 2023 2022 Mortgage Servicing Rights Balance, beginning of period $ 630 $ 700 Originated — 55 Amortization (1) (26 ) (39 ) Balance, end of period $ 604 $ 716 Valuation Allowance Balance, beginning of period — — Decrease in impairment reserve (1) — — Balance, end of period — — Mortgage servicing rights, net $ 604 $ 716 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
NOTE 7 - PLEDGED ASSETS
NOTE 7 - PLEDGED ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
NOTE 7 - PLEDGED ASSETS | NOTE 7 - 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, 2023 December 31, 2022 Securities available-for-sale (at fair value) $ 80,456 $ 74,303 Loans receivable (at book value) 381,740 380,787 Total pledged assets $ 462,196 $ 455,090 At March 31, 2023, securities were pledged as follows: $ 77.3 3.2 |
NOTE 8 _ EARNINGS PER SHARE
NOTE 8 – EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
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) 2023 2022 Net income $ 3,018 $ 3,568 Less: Undistributed earnings allocated to participating securities (50 ) (60 ) Net income allocated to common stock $ 2,968 $ 3,508 Weighted-average common shares issued 5,799 5,734 Less: Unvested restricted stock awards (97 ) (98 ) Weighted average common shares outstanding used to calculate basic earnings per common share 5,702 5,636 Add: Dilutive effect of stock options and restricted stock units 12 58 Weighted-average common shares outstanding used to calculate diluted earnings per common share 5,714 5,694 Earnings per common share (basic) $ 0.52 $ 0.62 Earnings per common share (diluted) $ 0.52 $ 0.62 |
NOTE 9 _ SHAREHOLDERS_ EQUITY
NOTE 9 – SHAREHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
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, 2023, the Bank exceeded the minimum requirement for the capital conservation buffer. As of March 31, 2023, 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 did not repurchase any shares pursuant to such program. The Bank’s risk-weighted assets at March 31, 2023 and December 31, 2022 were $ 1,280.9 1,256.6 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, 2023 Total Capital (to risk-weighted assets) $ 171,829 13.41 % $ 102,472 8.0 % $ 134,495 10.5 % $ 128,090 10.0 % Tier 1 Capital (to risk-weighted assets) 155,812 12.16 76,854 6.0 108,877 8.5 102,472 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 155,812 12.16 57,641 4.5 89,663 7.0 83,259 6.5 Tier 1 Capital (to average assets) $ 155,812 9.98 $ 62,444 4.0 $ 62,444 4.0 $ 78,055 5.0 December 31, 2022 Total Capital (to risk-weighted assets) $ 168,786 13.43 % $ 100,525 8.0 % $ 131,939 10.5 % $ 125,656 10.0 % Tier 1 Capital (to risk-weighted assets) 153,762 12.24 75,394 6.0 106,808 8.5 100,525 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 153,762 12.24 56,545 4.5 87,959 7.0 81,677 6.5 Tier 1 Capital (to average assets) $ 153,762 9.99 $ 61,540 4.0 $ 61,540 4.0 $ 76,925 5.0 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, 2023 | |
Retirement Benefits [Abstract] | |
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 $ 328 294 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: 98 35 Other Retirement Plans Split-Dollar Life Insurance 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 $ 694 702 8 Supplemental Retirement Agreement The Bank assumed a Supplemental Retirement Plan Agreement with a former Chief Executive Officer of Riverside Bank that provides for supplemental post retirement payments for a fifteen-year period ending in 2025 as described in the agreement. The related liability was $ 199 212 Non-Qualified Deferred Compensation Plan 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 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 allows participant deferrals and provides greater flexibility in participant elections and investment options. The amended and restated Plan also 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 has established a grantor trust to hold the assets of the Plan. Until distributed, the assets of the Plan are not legally owned by the participants. In first quarter 2023, the Bank awarded one (1) Executive with a discretionary contribution to the plan. In first quarter 2022, the Bank awarded seven (7) Executives with discretionary contributions to the plan. 145 47 Management Agreements 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 ten 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, 2023 | |
Retirement Benefits [Abstract] | |
NOTE 11 – LONG TERM INCENTIVE PLANS | NOTE 11 – LONG TERM INCENTIVE PLANS Restricted stock Salisbury did not grant restricted stock awards in first quarter 2023. Expense in first quarter 2023 and 2022 related to employee and directors’ stock-based compensation totaled $ 183 188 961 1.6 Performance-based restricted stock units On July 29, 2020, the Compensation Committee granted an additional 14,500 On June 23, 2021, the Compensation Committee granted an additional 14,800 On February 28, 2022, the Compensation Committee granted an additional 13,900 The fair value of the awards granted under the RSU plan at the grant date was $ 394 354 42 97 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 $ 315 267 |
NOTE 12 _ FAIR VALUE OF ASSETS
NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
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 mutual funds 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 mutual funds. Securities available-for-sale and mutual funds 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. 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 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, 2023 Assets at fair value on a recurring basis U.S. Treasury $ — $ 17,479 $ — $ 17,479 U.S. Government Agency notes — 26,844 — 26,844 Municipal bonds — 48,199 — 48,199 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 60,550 — 60,550 Collateralized mortgage obligations: U.S. Government agencies — 21,915 — 21,915 Corporate bonds 834 11,777 — 12,611 Securities available-for-sale $ 834 $ 186,764 $ — $ 187,598 Mutual funds 2,068 — — 2,068 December 31, 2022 Assets at fair value on a recurring basis U.S. Treasury $ — $ 17,133 $ — $ 17,133 U.S. Government Agency notes — 27,154 — 27,154 Municipal bonds — 46,538 — 46,538 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 61,875 — 61,875 Collateralized mortgage obligations: U.S. Government agencies — 21,936 — 21,936 Corporate bonds 833 11,941 — 12,744 Securities available-for-sale $ 833 $ 186,577 $ — $ 187,410 Mutual funds 1,933 — — 1,933 At March 31, 2023 and December 31, 2022, Salisbury did not have any assets measured at fair value on a non-recurring basis. 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, 2023 Financial Assets Cash and cash equivalents $ 49,844 $ 49,844 $ 49,844 $ — $ — Securities available-for-sale, net 187,598 187,598 834 186,764 — Mutual funds 2,068 2,068 2,068 — — Federal Home Loan Bank of Boston stock 5,030 5,030 — 5,030 — Loans held-for-sale — — — — — Loans receivable, net 1,234,632 1,193,272 — — 1,193,272 Accrued interest receivable 6,383 6,383 — 6,383 — Cash surrender value of life insurance policies 30,571 30,571 — 30,571 — Financial Liabilities Demand (non-interest-bearing) $ 370,049 $ 370,049 $ — $ 370,049 $ — Demand (interest-bearing) 218,902 218,902 — 218,902 — Money market 296,974 296,974 — 296,974 — Savings and other 236,755 236,755 — 236,755 — Certificates of deposit 170,362 170,806 — 170,806 — Deposits 1,293,042 1,293,486 — 1,293,486 — Repurchase agreements 3,230 3,230 — 3,230 — FHLBB advances 100,000 99,999 — 99,999 — Subordinated debt 24,545 21,022 — 21,022 — Note payable 117 114 — 114 — Finance lease obligation 4,225 3,449 — — 3,449 Accrued interest payable 425 425 — 425 — December 31, 2022 Financial Assets Cash and cash equivalents $ 50,539 $ 50,539 $ 50,539 $ — $ — Securities available-for-sale 187,410 187,410 833 186,577 — Mutual fund 1,933 1,933 1,933 — — Federal Home Loan Bank of Boston stock 1,285 1,285 — 1,285 — Loans held-for-sale — — — — — Loans receivable, net 1,213,671 1,172,416 — — 1,172,416 Accrued interest receivable 6,797 6,797 — 6,797 — Cash surrender value of life insurance policies 30,379 30,379 — 30,379 — Financial Liabilities Demand (non-interest-bearing) $ 395,994 $ 395,994 $ — $ 395,994 $ — Demand (interest-bearing) 231,486 231,486 — 231,486 — Money market 343,965 343,965 — 343,965 — Savings and other 233,578 233,578 — 233,578 — Certificates of deposit 153,370 153,411 — 153,411 — Deposits 1,358,393 1,358,434 — 1,358,434 — Repurchase agreements 7,228 7,228 — 7,228 — FHLBB advances 10,000 10,000 — 10,000 — Subordinated debt 24,531 21,670 — 21,670 — Note payable 128 125 — 125 — Finance lease liability 4,262 3,546 — — 3,546 Accrued interest payable 210 210 — 210 — |
NOTE 13 _ SUBSEQUENT EVENTS
NOTE 13 – SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
NOTE 13 – SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS On April 12, 2023, Salisbury shareholders approved the merger with NBT. The merger is expected to close in second quarter 2023 subject to regulatory approval. On April 26, 2023 the Board of Directors declared a quarterly dividend of $ 0.16 |
NOTE 1 - BASIS OF PRESENTATION
NOTE 1 - BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848).” In 2020, the Board issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. The Board included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. At the time that Update 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022—12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the FCA announced that the intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. Because the current relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, the amendments in this Update defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The amendments in this ASU were effective upon issuance. |
NOTE 1 - BASIS OF PRESENTATIO_2
NOTE 1 - BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Standards Update and Change in Accounting Principle [Table Text Block] | (in thousands) December 31, 2022 Impact of ASC 326 January 1, 2023 Assets: Loans $ 1,228,517 $ — $ 1,228,517 Allowance for credit losses on loans (14,846 ) (271 ) (15,117 ) Deferred tax assets, net 8,492 286 8,778 Liabilities and shareholders’ equity: Other liabilities (ACL unfunded loan commitments) 178 913 1,091 Retained Earnings 102,178 (898 ) 101,280 |
NOTE 3 - SECURITIES (Tables)
NOTE 3 - SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities [Table Text Block] | (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value March 31, 2023 Available-for-sale U.S. Treasury $ 19,299 $ — $ 1,820 $ 17,479 U.S. Government Agency notes 29,017 58 2,231 26,844 Municipal bonds 55,099 — 6,900 48,199 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 67,804 19 7,273 60,550 Collateralized mortgage obligations: U.S. Government agencies 24,954 — 3,039 21,915 Corporate bonds 14,250 — 1,639 12,611 Total securities available-for-sale $ 210,423 $ 77 $ 22,902 $ 187,598 Mutual funds $ 2,068 Non-marketable securities Federal Home Loan Bank of Boston stock $ 5,030 $ — $ — $ 5,030 (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value December 31, 2022 Available-for-sale U.S. Treasury $ 19,283 $ — $ 2,150 $ 17,133 U.S. Government Agency notes 29,696 94 2,636 27,154 Municipal bonds 55,179 — 8,641 46,538 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 69,866 20 8,011 61,875 Collateralized mortgage obligations: U.S. Government agencies 25,370 — 3,434 21,936 Corporate bonds 14,250 — 1,476 12,774 Total securities available-for-sale $ 213,644 $ 114 $ 26,348 $ 187,410 Mutual Funds $ 1,933 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,285 $ — $ — $ 1,285 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less than 12 Months 12 Months or Longer Total March 31, 2023 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ — $ — $ 17,479 $ 1,820 $ 17,479 $ 1,820 U.S. Government Agency notes 2,839 123 18,567 2,108 21,406 2,231 Municipal bonds 8,334 326 39,864 6,574 48,198 6,900 Mortgage- backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 4,826 8 53,266 7,265 58,092 7,273 Collateralized mortgage obligations: U.S. Government agencies 2,648 191 19,267 2,848 21,915 3,039 Corporate bonds 7,892 858 4,719 781 12,611 1,639 Total temporarily impaired securities $ 26,539 $ 1,506 $ 153,162 $ 21,396 $ 179,701 $ 22,902 Less than 12 Months 12 Months or Longer Total December 31, 2022 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 6,435 $ 484 $ 10,698 $ 1,666 $ 17,133 $ 2,150 U.S. Government Agency notes 3,106 158 17,467 2,478 20,573 2,636 Municipal bonds 37,277 5,950 9,261 2,691 46,538 8,641 Mortgage-backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 18,861 1,559 39,909 6,452 58,770 8,011 Collateralized mortgage obligations 14,333 1,782 7,603 1,652 21,936 3,434 Corporate bonds 11,251 1,249 1,523 227 12,774 1,476 Total temporarily impaired securities $ 91,263 $ 11,182 $ 86,461 $ 15,166 $ 177,724 $ 26,348 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, 2023 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Treasury After 1 year but within 5 years $ 10,814 $ 10,005 1.29 % After 5 year but within 10 years 8,485 7,474 1.17 Total 19,299 17,479 1.24 U.S. Government Agency notes After 1 year but within 5 years 7,964 7,100 1.05 After 5 year but within 10 years 7,960 6,863 1.42 Total 15,924 13,963 1.23 Municipal bonds After 1 year but within 5 years 1,486 1,343 2.11 After 5 year but within 10 years 14,308 12,054 2.31 After 10 years but within 15 years 15,458 13,580 2.33 After 15 years 23,847 21,222 2.73 Total 55,099 48,199 2.49 Mortgage-backed securities, U.S. Government Agency and Collateralized mortgage obligations Securities not due at a single maturity date 105,851 95,346 2.95 Total 105,851 95,346 2.95 Corporate bonds After 5 years but within 10 years 14,250 12,611 4.46 After 10 years but within 15 years — — Total 14,250 12,611 4.46 Securities available-for-sale $ 210,423 $ 187,598 2.79 % (1) |
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block] | March 31, 2023 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Treasury After 1 year but within 5 years $ 10,814 $ 10,005 1.29 % After 5 year but within 10 years 8,485 7,474 1.17 Total 19,299 17,479 1.24 U.S. Government Agency notes After 1 year but within 5 years 7,964 7,100 1.05 After 5 year but within 10 years 7,960 6,863 1.42 Total 15,924 13,963 1.23 Municipal bonds After 1 year but within 5 years 1,486 1,343 2.11 After 5 year but within 10 years 14,308 12,054 2.31 After 10 years but within 15 years 15,458 13,580 2.33 After 15 years 23,847 21,222 2.73 Total 55,099 48,199 2.49 Mortgage-backed securities, U.S. Government Agency and Collateralized mortgage obligations Securities not due at a single maturity date 105,851 95,346 2.95 Total 105,851 95,346 2.95 Corporate bonds After 5 years but within 10 years 14,250 12,611 4.46 After 10 years but within 15 years — — Total 14,250 12,611 4.46 Securities available-for-sale $ 210,423 $ 187,598 2.79 % (1) |
NOTE 4 _ LOANS AND ALLOWANCE _2
NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (In thousands) March 31, 2023 December 31, 2022 1 Commercial & Industrial $ 232,033 $ 239,997 Commercial real estate 515,266 491,659 Residential real estate 457,506 449,652 Consumer 44,961 46,208 Total Loans 1,249,766 1,227,516 Deferred loan origination costs, net 875 1,001 Allowance for credit losses (16,009 ) (14,846 ) Loans receivable, net $ 1,234,632 $ 1,213,671 1 |
[custom:RiskCategoryOfLoansBySegmentAndVintageUnderCECLMethodologyTableTextBlock] | (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2023 Commercial & industrial Risk rating Pass $ 6,472 $ 55,315 $ 41,258 $ 30,157 $ 16,644 $ 39,817 $ 34,648 $ — $ 224,311 Special mention — 300 — — — 5,584 350 — 6,234 Substandard — — — — 633 154 701 — 1,488 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial & industrial $ 6,472 $ 55,615 $ 41,258 $ 30,157 $ 17,277 $ 45,555 $ 35,699 $ — $ 232,033 Commercial real estate Risk rating Pass $ 26,352 $ 147,533 $ 109,300 $ 67,765 $ 25,899 $ 126,509 $ — $ — $ 503,358 Special mention — — — 3,576 — 2,942 — — 6,518 Substandard — — — — 3,751 1,639 — — 5,390 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate $ 26,352 $ 147,533 $ 109,300 $ 71,341 $ 29,650 $ 131,090 $ — $ — $ 515,266 Residential real estate Risk rating Pass $ 12,583 $ 104,906 $ 115,289 $ 64,488 $ 27,118 $ 127,790 $ 165 $ — $ 452,339 Special mention — — — 21 — 3,239 — — 3,260 Substandard — — 668 — — 1,239 — — 1,907 Doubtful — — — — — — — — — Loss — — — — — — — — — Total residential real estate $ 12,583 $ 104,906 $ 115,957 $ 64,509 $ 27,118 $ 132,268 $ 165 $ — $ 457,506 Consumer Risk rating Pass $ 790 $ 1,653 $ 945 $ 256 $ 408 $ 15,492 $ 22,808 $ 2,439 $ 44,791 Special mention — — — — — — 97 61 158 Substandard — — — — — 4 8 — 12 Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer $ 790 $ 1,653 $ 945 $ 256 $ 408 $ 15,496 $ 22,913 $ 2,500 $ 44,961 Total loans $ 46,197 $ 309,707 $ 267,460 $ 166,263 $ 74,453 $ 324,409 $ 58,777 $ 2,500 $ 1,249,766 Total Gross Charge-offs $ ( 18 ) $ (13 ) $ ( 4 ) $ — $ — $ — $ — $ — $ (35 ) Total Recoveries 3 — — — — — — — 3 Total Net Charge-offs $ ( 15 ) $ ( 13 ) $ ( 4 ) $ — $ — $ — — $ — $ ( 32 ) |
Financing Receivable Credit Quality Indicators [Table Text Block] | (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2022 Commercial & industrial $ 232,259 $ 6,195 $ 1,543 $ — $ — $ 239,997 Commercial real estate 477,006 8,798 5,855 — — 491,659 Residential real estate 444,778 2,995 1,879 — — 449,652 Consumer 46,041 162 5 — — 46,208 Loans receivable, gross $ 1,200,084 $ 18,150 $ 9,282 $ — $ — $ 1,227,516 |
[custom:AmortizedCostBasisCollateralDependentNonacrcualLoansTableTextBlock] | Collateral Type (in thousands) Real Estate Business Assets Total Collateral-Dependent Non-Accrual Loans March 31, 2023 Commercial & industrial $ — $ 144 $ 144 Commercial real estate 1,222 — 1,222 Residential real estate 858 — 858 Consumer 8 9 17 Total $ 2,088 $ 153 $ 2,241 |
Financing Receivable, Nonaccrual [Table Text Block] | Past due (in thousands) Current 30-59 days 60-89 days 90 days or Greater Past Due Total Past Due Total Loans Outstanding Loans Greater than 90 Days Past Due and Accruing March 31, 2023 Commercial & industrial $ 231,733 $ 300 $ — $ — $ 300 $ 232,033 $ — Commercial real estate 514,822 359 — 85 443 515,266 — Residential real estate 456,300 1,124 67 15 1,207 457,506 — Consumer 44,513 373 58 17 448 44,961 — Total $ 1,247,368 $ 2,156 $ 125 $ 117 $ 2,398 $ 1,249,766 $ — The following is a summary of the amortized cost basis of loans on non-accrual status . March 31, 2023 December 31, 2022 (in thousands) Non-Accrual Loans with an Allowance Non-Accrual Loans without an Allowance Total Non-Accrual Loans Total Non-Accrual Loans Commercial & industrial $ — $ 144 $ 144 $ 189 Commercial real estate — 1,222 1,222 1,648 Residential real estate — 858 858 820 Consumer 9 8 17 5 Total $ 9 $ 2,232 $ 2,241 $ 2,662 |
[custom:AmortizedCostBasisOfLoansOnNonaccrualStatus] | March 31, 2023 December 31, 2022 (in thousands) Non-Accrual Loans with an Allowance Non-Accrual Loans without an Allowance Total Non-Accrual Loans Total Non-Accrual Loans Commercial & industrial $ — $ 144 $ 144 $ 189 Commercial real estate — 1,222 1,222 1,648 Residential real estate — 858 858 820 Consumer 9 8 17 5 Total $ 9 $ 2,232 $ 2,241 $ 2,662 |
[custom:ScheduleOfFinancingReceivablesNonAccrualStatus1TableTextBlock] | 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, 2022 Commercial & industrial $ 239,847 $ 149 $ 1 $ — $ — $ 150 $ — $ 189 Commercial real estate 491,574 — — 85 — 85 — 1,648 Residential real estate 448,935 672 30 — 15 717 — 820 Consumer 45,677 442 84 5 — 531 — 5 Loans receivable, gross $ 1,226,033 $ 1,263 $ 115 $ 90 $ 15 $ 1,483 $ — $ 2,662 |
Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block] | (in thousands) December 31, 2022 Commercial & industrial $ — Commercial real estate 1,381 Residential real estate 1,289 Consumer — Accruing troubled debt restructured loans 2,670 Commercial & industrial — Commercial real estate — Residential real estate 67 Consumer — Non-accrual troubled debt restructured loans 67 Troubled debt restructured loans $ 2,737 |
[custom:ScheduleOfDebtorTroubledDebtRestructuringPastDueStatusTextBlock] | (in thousands) December 31, 2022 Current $ 2,670 Past due 30-59 days — Past due 60-89 days — Accruing troubled debt restructured loans 2,670 Current — Past due 30-59 days 67 Past due 180 days and over — Non-accrual troubled debt restructured loans 67 Total troubled debt restructured loans $ 2,737 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Three Months Ended March 31, 2023 (in thousands) Beginning balance Impact of Adopting ASC 326 Subtotal Provision for Credit Losses Charge-offs Recoveries Ending balance Commercial & industrial $ 1,921 $ 2,447 $ 4,368 $ (89 ) $ — $ — $ 4,279 Commercial real estate 8,425 (3,236 ) 5,189 705 — — 5,894 Residential real estate 4,108 831 4,939 287 — — 5,226 Consumer 392 229 621 21 (35 ) 3 610 Total allowance for credit losses $ 14,846 $ 271 $ 15,117 $ 924 $ (35 ) $ 3 $ 16,009 Three months ended March 31, 2022 (in thousands) Beginning balance Provision Charge-offs Recoveries Ending balance Commercial & industrial $ 1,811 $ (173 ) $ (46 ) $ 1 $ 1,593 Commercial real estate 6,973 261 (334 ) — 6,900 Residential real estate 3,020 252 (16 ) — 3,253 Consumer 277 37 (17 ) 5 302 Unallocated 881 (14 ) — — 867 Totals $ 12,962 $ 363 $ (416 ) $ 6 $ 12,915 |
[custom:AllowanceForCreditLossesOnUnfundedCommitmentsActivityTableTextBlock] | Three months ended March 31, 2023 Balance at the beginning of period December 31, 2022 $ 178 Impact of adopting ASC 326 913 Subtotal 1,091 Provision for credit losses 92 Balance at the end of period March 31, 2023 $ 1,183 Three months ended March 31, 2022 Balance at the beginning of period December 31, 2021 $ 146 Other expense – unfunded commitments 37 Balance at the end of period March 31, 2022 $ 183 |
[custom:CompositionOfLoansReceivableAndAllowanceForLoanLossesTableTextBlock] | (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance March 31, 2023 Commercial & industrial $ 231,889 $ 4,279 $ 144 $ — $ 232,033 $ 4,279 Commercial real estate 514,044 5,894 1,222 — 515,266 5,894 Residential real estate 456,648 5,226 858 — 457,506 5,226 Consumer 44,953 610 8 — 44,961 610 Totals $ 1,247,534 $ 16,009 $ 2,232 $ — $ 1,249,766 $ 16,009 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2022 Commercial & industrial $ 239,808 $ 1,780 $ 189 $ — $ 239,997 $ 1,780 Commercial real estate 488,630 7,781 3,029 22 491,659 7,803 Residential real estate 447,543 3,805 2,109 — 449,652 3,805 Consumer 46,203 363 5 — 46,208 363 Unallocated allowance — 1,095 — — — 1,095 Totals $ 1,222,184 $ 14,824 $ 5,332 $ 22 $ 1,227,516 $ 14,846 |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block] | Loans with no specific allowance Loan balance Income Book Note Average Recognized March 31, 2023 Commercial & industrial $ 144 $ 244 $ 165 $ — Commercial real estate 1,222 1,748 1,619 14 Residential real estate 858 941 1,170 — Consumer 8 8 31 — Totals $ 2,232 $ 2,941 $ 2,985 $ 14 Certain data with respect to loans individually evaluated for impairment is as follows as of and for the three months ended March 31, 2022: 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 Commercial & industrial $ 76 $ 76 $ 146 $ 3 $ 1 $ 28 $ 25 $ 79 $ — Commercial real estate 598 598 602 23 7 3,174 3,785 3,282 11 Residential real estate — — 21 — — 1,938 2,020 2,944 14 Consumer — — — — — — — 15 — Totals $ 674 $ 674 $ 769 $ 26 $ 8 $ 5,140 $ 5,830 $ 6,320 $ 25 |
NOTE 5 _ LEASES (Tables)
NOTE 5 – LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Note 5 Leases | |
Finance Lease, Liability, to be Paid, Maturity [Table Text Block] | ($ in thousands, except lease term and discount rate) Classification March 31, 2023 December 31, 2022 Assets Operating Other assets $ 1,183 $ 1,175 Finance Bank premises and equipment 1 3,800 3,856 Total leased assets $ 4 ,983 $ 5,031 Liabilities Operating Other liabilities $ 1,183 $ 1,175 Finance Finance lease 4,225 4,262 Total lease liabilities $ 5,408 $ 5,437 1 Lease cost Classification Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 Operating leases Premises and equipment $ 76 $ 74 Finance leases: Amortization of leased assets Premises and equipment 56 35 Interest on finance leases Interest expense 40 41 Total lease cost $ 172 $ 150 Weighted Average Remaining Lease Term March 31, 2023 December 31, 2022 Operating leases 5.6 years 5.9 years Financing leases 21.5 years 21.5 years Weighted Average Discount Rate 1 Operating leases 3.74 % 3.63 % Financing leases 3.76 % 3.74 % 1 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Future minimum lease payments (in thousands) Operating Leases Finance Leases 2023 $ 201 $ 228 2024 270 314 2025 218 323 2026 213 334 2027 188 344 Thereafter 242 4,924 Total future minimum lease payments 1,333 6,167 Less amount representing interest (150 ) (1,941 ) Total present value of net future minimum lease payments $ 1,183 $ 4,225 |
NOTE 6 - MORTGAGE SERVICING R_2
NOTE 6 - MORTGAGE SERVICING RIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 December 31, 2022 Residential mortgage loans serviced for others $ 130,275 $ 133,100 Fair value of mortgage servicing rights 1,309 1,376 |
Servicing Liability at Amortized Cost [Table Text Block] | Three months ended March 31, (in thousands) 2023 2022 Mortgage Servicing Rights Balance, beginning of period $ 630 $ 700 Originated — 55 Amortization (1) (26 ) (39 ) Balance, end of period $ 604 $ 716 Valuation Allowance Balance, beginning of period — — Decrease in impairment reserve (1) — — Balance, end of period — — Mortgage servicing rights, net $ 604 $ 716 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
NOTE 7 - PLEDGED ASSETS (Tables
NOTE 7 - PLEDGED ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | (in thousands) March 31, 2023 December 31, 2022 Securities available-for-sale (at fair value) $ 80,456 $ 74,303 Loans receivable (at book value) 381,740 380,787 Total pledged assets $ 462,196 $ 455,090 |
NOTE 8 _ EARNINGS PER SHARE (Ta
NOTE 8 – EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended March 31, (in thousands, except per share data) 2023 2022 Net income $ 3,018 $ 3,568 Less: Undistributed earnings allocated to participating securities (50 ) (60 ) Net income allocated to common stock $ 2,968 $ 3,508 Weighted-average common shares issued 5,799 5,734 Less: Unvested restricted stock awards (97 ) (98 ) Weighted average common shares outstanding used to calculate basic earnings per common share 5,702 5,636 Add: Dilutive effect of stock options and restricted stock units 12 58 Weighted-average common shares outstanding used to calculate diluted earnings per common share 5,714 5,694 Earnings per common share (basic) $ 0.52 $ 0.62 Earnings per common share (diluted) $ 0.52 $ 0.62 |
NOTE 9 _ SHAREHOLDERS_ EQUITY (
NOTE 9 – SHAREHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
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, 2023 Total Capital (to risk-weighted assets) $ 171,829 13.41 % $ 102,472 8.0 % $ 134,495 10.5 % $ 128,090 10.0 % Tier 1 Capital (to risk-weighted assets) 155,812 12.16 76,854 6.0 108,877 8.5 102,472 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 155,812 12.16 57,641 4.5 89,663 7.0 83,259 6.5 Tier 1 Capital (to average assets) $ 155,812 9.98 $ 62,444 4.0 $ 62,444 4.0 $ 78,055 5.0 December 31, 2022 Total Capital (to risk-weighted assets) $ 168,786 13.43 % $ 100,525 8.0 % $ 131,939 10.5 % $ 125,656 10.0 % Tier 1 Capital (to risk-weighted assets) 153,762 12.24 75,394 6.0 106,808 8.5 100,525 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 153,762 12.24 56,545 4.5 87,959 7.0 81,677 6.5 Tier 1 Capital (to average assets) $ 153,762 9.99 $ 61,540 4.0 $ 61,540 4.0 $ 76,925 5.0 |
NOTE 12 _ FAIR VALUE OF ASSET_2
NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
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, 2023 Assets at fair value on a recurring basis U.S. Treasury $ — $ 17,479 $ — $ 17,479 U.S. Government Agency notes — 26,844 — 26,844 Municipal bonds — 48,199 — 48,199 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 60,550 — 60,550 Collateralized mortgage obligations: U.S. Government agencies — 21,915 — 21,915 Corporate bonds 834 11,777 — 12,611 Securities available-for-sale $ 834 $ 186,764 $ — $ 187,598 Mutual funds 2,068 — — 2,068 December 31, 2022 Assets at fair value on a recurring basis U.S. Treasury $ — $ 17,133 $ — $ 17,133 U.S. Government Agency notes — 27,154 — 27,154 Municipal bonds — 46,538 — 46,538 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 61,875 — 61,875 Collateralized mortgage obligations: U.S. Government agencies — 21,936 — 21,936 Corporate bonds 833 11,941 — 12,744 Securities available-for-sale $ 833 $ 186,577 $ — $ 187,410 Mutual funds 1,933 — — 1,933 |
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, 2023 Financial Assets Cash and cash equivalents $ 49,844 $ 49,844 $ 49,844 $ — $ — Securities available-for-sale, net 187,598 187,598 834 186,764 — Mutual funds 2,068 2,068 2,068 — — Federal Home Loan Bank of Boston stock 5,030 5,030 — 5,030 — Loans held-for-sale — — — — — Loans receivable, net 1,234,632 1,193,272 — — 1,193,272 Accrued interest receivable 6,383 6,383 — 6,383 — Cash surrender value of life insurance policies 30,571 30,571 — 30,571 — Financial Liabilities Demand (non-interest-bearing) $ 370,049 $ 370,049 $ — $ 370,049 $ — Demand (interest-bearing) 218,902 218,902 — 218,902 — Money market 296,974 296,974 — 296,974 — Savings and other 236,755 236,755 — 236,755 — Certificates of deposit 170,362 170,806 — 170,806 — Deposits 1,293,042 1,293,486 — 1,293,486 — Repurchase agreements 3,230 3,230 — 3,230 — FHLBB advances 100,000 99,999 — 99,999 — Subordinated debt 24,545 21,022 — 21,022 — Note payable 117 114 — 114 — Finance lease obligation 4,225 3,449 — — 3,449 Accrued interest payable 425 425 — 425 — December 31, 2022 Financial Assets Cash and cash equivalents $ 50,539 $ 50,539 $ 50,539 $ — $ — Securities available-for-sale 187,410 187,410 833 186,577 — Mutual fund 1,933 1,933 1,933 — — Federal Home Loan Bank of Boston stock 1,285 1,285 — 1,285 — Loans held-for-sale — — — — — Loans receivable, net 1,213,671 1,172,416 — — 1,172,416 Accrued interest receivable 6,797 6,797 — 6,797 — Cash surrender value of life insurance policies 30,379 30,379 — 30,379 — Financial Liabilities Demand (non-interest-bearing) $ 395,994 $ 395,994 $ — $ 395,994 $ — Demand (interest-bearing) 231,486 231,486 — 231,486 — Money market 343,965 343,965 — 343,965 — Savings and other 233,578 233,578 — 233,578 — Certificates of deposit 153,370 153,411 — 153,411 — Deposits 1,358,393 1,358,434 — 1,358,434 — Repurchase agreements 7,228 7,228 — 7,228 — FHLBB advances 10,000 10,000 — 10,000 — Subordinated debt 24,531 21,670 — 21,670 — Note payable 128 125 — 125 — Finance lease liability 4,262 3,546 — — 3,546 Accrued interest payable 210 210 — 210 — |
Cumulative-effect adjustment to
Cumulative-effect adjustment to retained earnings from ASC 326 adoption (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Retained Earnings | $ 103,371 | $ 102,178 |
Cumulative Effect Period Of Adoption Pre Adoption [Member] | ||
Loans | 1,228,517 | |
Allowance for credit losses on loans | (14,846) | |
Deferred tax assets, net | 8,492 | |
Other liabilities (ACL unfunded loan commitments) | 178 | |
Retained Earnings | $ 102,178 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Loans | ||
Allowance for credit losses on loans | (271) | |
Deferred tax assets, net | 286 | |
Other liabilities (ACL unfunded loan commitments) | 913 | |
Retained Earnings | (898) | |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||
Loans | 1,228,517 | |
Allowance for credit losses on loans | (15,117) | |
Deferred tax assets, net | 8,778 | |
Other liabilities (ACL unfunded loan commitments) | 1,091 | |
Retained Earnings | $ 101,280 |
NOTE 1 - BASIS OF PRESENTATIO_3
NOTE 1 - BASIS OF PRESENTATION (Details Narrative) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |
[custom:AllowanceForCreditLossesForLoansIncrease] | $ 200,000 |
[custom:AllowanceForCreditLossesForUnfundedLoanCommitmentsIncrease] | $ 900,000 |
NOTE 2 _ ACQUISITIONS AND DIS_2
NOTE 2 – ACQUISITIONS AND DISPOSITIONS (Details Narrative) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Business Combination and Asset Acquisition [Abstract] | |
Noncash Merger Related Costs | $ 385 |
Composition of securities (Deta
Composition of securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale, Cost of Security Sold or Transferred, Method, Specific Identification [Member] | ||
Available-for-sale | ||
U.S. Treasury | $ 19,299 | $ 19,283 |
U.S. Government Agency notes | 29,017 | 29,696 |
Municipal bonds | 55,099 | 55,179 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 67,804 | 69,866 |
U.S. Government agencies | 24,954 | 25,370 |
Corporate bonds | 14,250 | 14,250 |
Total securities available-for-sale | 210,423 | 213,644 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | 5,030 | 1,285 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | ||
Available-for-sale | ||
U.S. Treasury | ||
U.S. Government Agency notes | 58 | 94 |
Municipal bonds | ||
U.S. Government agencies and U.S. Government- sponsored enterprises | 19 | 20 |
U.S. Government agencies | ||
Corporate bonds | ||
Total securities available-for-sale | 77 | 114 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Accumulated Net Unrealized Investment Gain Loss 1 [Member] | ||
Available-for-sale | ||
U.S. Treasury | 1,820 | 2,150 |
U.S. Government Agency notes | 2,231 | 2,636 |
Municipal bonds | 6,900 | 8,641 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 7,273 | 8,011 |
U.S. Government agencies | 3,039 | 3,434 |
Corporate bonds | 1,639 | 1,476 |
Total securities available-for-sale | 22,902 | 26,348 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Securities Financing Transaction, Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | 17,479 | 17,133 |
U.S. Government Agency notes | 26,844 | 27,154 |
Municipal bonds | 48,199 | 46,538 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 60,550 | 61,875 |
U.S. Government agencies | 21,915 | 21,936 |
Corporate bonds | 12,611 | 12,774 |
Total securities available-for-sale | 187,598 | 187,410 |
Mutual Funds | 2,068 | 1,933 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | $ 5,030 | $ 1,285 |
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, 2023 | Dec. 31, 2022 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Less Than 12 Months Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | $ 6,435 | |
U.S. Government Agency notes | 2,839 | 3,106 |
Municipal bonds | 8,334 | 37,277 |
U.S. Government agencies and U.S. Government - sponsored enterprises | 4,826 | 18,861 |
U.S. Government agencies | 2,648 | |
Corporate bonds | 7,892 | 11,251 |
Total temporarily impaired securities | 26,539 | 91,263 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Less Than 12 Months Unrealized Losses [Member] | ||
Available-for-sale | ||
U.S. Treasury | 484 | |
U.S. Government Agency notes | 123 | 158 |
Municipal bonds | 326 | 5,950 |
U.S. Government agencies and U.S. Government - sponsored enterprises | 8 | 1,559 |
U.S. Government agencies | 191 | |
Corporate bonds | 858 | 1,249 |
Total temporarily impaired securities | 1,506 | 11,182 |
Aggregate Fair Value Gross Unrealized Loss Of Securities 12 Months Or Longer Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | 17,479 | 10,698 |
U.S. Government Agency notes | 18,567 | 17,467 |
Municipal bonds | 39,864 | 9,261 |
U.S. Government agencies and U.S. Government - sponsored enterprises | 53,266 | 39,909 |
U.S. Government agencies | 19,267 | |
Corporate bonds | 4,719 | 1,523 |
Total temporarily impaired securities | 153,162 | 86,461 |
Aggregate Fair Value Gross Unrealized Loss Of Securities 12 Months Or Longer Unrealized Losses [Member] | ||
Available-for-sale | ||
U.S. Treasury | 1,820 | 1,666 |
U.S. Government Agency notes | 2,108 | 2,478 |
Municipal bonds | 6,574 | 2,691 |
U.S. Government agencies and U.S. Government - sponsored enterprises | 7,265 | 6,452 |
U.S. Government agencies | 2,848 | |
Corporate bonds | 781 | 227 |
Total temporarily impaired securities | 21,396 | 15,166 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Total Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | 17,479 | 17,133 |
U.S. Government Agency notes | 21,406 | 20,573 |
Municipal bonds | 48,198 | 46,538 |
U.S. Government agencies and U.S. Government - sponsored enterprises | 58,092 | 58,770 |
U.S. Government agencies | 21,915 | |
Corporate bonds | 12,611 | 12,774 |
Total temporarily impaired securities | 179,701 | 177,724 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Total Unrealized Losses [Member] | ||
Available-for-sale | ||
U.S. Treasury | 1,820 | 2,150 |
U.S. Government Agency notes | 2,231 | 2,636 |
Municipal bonds | 6,900 | 8,641 |
U.S. Government agencies and U.S. Government - sponsored enterprises | 7,273 | 8,011 |
U.S. Government agencies | 3,039 | |
Corporate bonds | 1,639 | 1,476 |
Total temporarily impaired securities | $ 22,902 | $ 26,348 |
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, 2023 USD ($) | |
U S Treasury [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 10,814 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 10,005 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.29% |
U S Treasury 2 [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 8,485 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 7,474 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.17% |
U S Treasury Total [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 19,299 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 17,479 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.24% |
U S Government Agency Notes [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 7,964 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 7,100 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.05% |
U S Government Agency Notes 2 [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 7,960 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 6,863 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.42% |
U S Government Agency Notes Total [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 15,924 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 13,963 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.23% |
US States and Political Subdivisions Debt Securities [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 1,486 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 1,343 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.11% |
U S States And Political Subdivisions 2 [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 14,308 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 12,054 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.31% |
U S States And Political Subdivisions 3 [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 15,458 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 13,580 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.33% |
U S States And Political Subdivisions 4 [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 23,847 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 21,222 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.73% |
U S States And Political Subdivisions Total [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 55,099 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 48,199 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.49% |
Mortgage Backed Securities Collateralized Mortgage Obligations [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 105,851 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 95,346 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.95% |
Mortgage Backed Securities Collateralized Mortgage Obligations Total [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 105,851 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 95,346 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.95% |
Corporate Debt Securities 2 [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 14,250 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 12,611 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.46% |
Corporate Debt Securities Total [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 14,250 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 12,611 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.46% |
Available-for-Sale Securities [Member] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 210,423 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 187,598 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.79% |
NOTE 3 - SECURITIES (Details Na
NOTE 3 - SECURITIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from Sale of Debt Securities, Available-for-Sale | $ 17,718,000 | ||
Debt Securities, Available-for-Sale, Realized Gain | 451,000 | ||
Debt Securities, Available-for-Sale, Realized Loss | 241,000 | ||
Debt Securities, Realized Gain (Loss) | 210,000 | ||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, Tax | $ 44,000 | ||
[custom:AccruedInterestReceivableAvailableForSaleDebtSecuritiesExcludedFromAmortizedCostBasis-0] | $ 620,000 | $ 560,000 |
Composition of loans receivable
Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Commercial & Industrial | $ 232,033 | $ 239,997 |
Commercial real estate | 515,266 | 491,659 |
Residential real estate | 457,506 | 449,652 |
Consumer | 44,961 | 46,208 |
Total Loans | 1,249,766 | 1,227,516 |
Deferred loan origination costs, net | 875 | 1,001 |
Allowance for credit losses | (16,009) | (14,846) |
Loans receivable, net | $ 1,234,632 | $ 1,213,671 |
Risk category of loans by segme
Risk category of loans by segment and by vintage reported under the CECL methodology (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Risk Category Of Loans By Segment And Vintage 2023 [Member] | |
Pass | $ 6,472 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total commercial & industrial | 6,472 |
Pass | 26,352 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total commercial real estate | 26,352 |
Pass | 12,583 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total residential real estate | 12,583 |
Pass | 790 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total consumer | 790 |
Total loans | 46,197 |
Total Gross Charge-offs | 18 |
Total Recoveries | 3 |
Total Net Charge-offs | 15 |
Risk Category Of Loans By Segment And Vintage 2022 [Member] | |
Pass | 55,315 |
Special mention | 300 |
Substandard | |
Doubtful | |
Loss | |
Total commercial & industrial | 55,615 |
Pass | 147,533 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total commercial real estate | 147,533 |
Pass | 104,906 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total residential real estate | 104,906 |
Pass | 1,653 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total consumer | 1,653 |
Total loans | 309,707 |
Total Gross Charge-offs | (13) |
Total Recoveries | |
Total Net Charge-offs | 13 |
Risk Category Of Loans By Segment And Vintage 2021 [Member] | |
Pass | 41,258 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total commercial & industrial | 41,258 |
Pass | 109,300 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total commercial real estate | 109,300 |
Pass | 115,289 |
Special mention | |
Substandard | 668 |
Doubtful | |
Loss | |
Total residential real estate | 115,957 |
Pass | 945 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total consumer | 945 |
Total loans | 267,460 |
Total Gross Charge-offs | 4 |
Total Recoveries | |
Total Net Charge-offs | 4 |
Risk Category Of Loans By Segment And Vintage 2020 [Member] | |
Pass | 30,157 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total commercial & industrial | 30,157 |
Pass | 67,765 |
Special mention | 3,576 |
Substandard | |
Doubtful | |
Loss | |
Total commercial real estate | 71,341 |
Pass | 64,488 |
Special mention | 21 |
Substandard | |
Doubtful | |
Loss | |
Total residential real estate | 64,509 |
Pass | 256 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total consumer | 256 |
Total loans | 166,263 |
Total Gross Charge-offs | |
Total Recoveries | |
Total Net Charge-offs | |
Risk Category Of Loans By Segment And Vintage 2019 [Member] | |
Pass | 16,644 |
Special mention | |
Substandard | 633 |
Doubtful | |
Loss | |
Total commercial & industrial | 17,277 |
Pass | 25,899 |
Special mention | |
Substandard | 3,751 |
Doubtful | |
Loss | |
Total commercial real estate | 29,650 |
Pass | 27,118 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total residential real estate | 27,118 |
Pass | 408 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total consumer | 408 |
Total loans | 74,453 |
Total Gross Charge-offs | |
Total Recoveries | |
Total Net Charge-offs | |
Risk Category Of Loans By Segment And Vintage Prior [Member] | |
Pass | 39,817 |
Special mention | 5,584 |
Substandard | 154 |
Doubtful | |
Loss | |
Total commercial & industrial | 45,555 |
Pass | 126,509 |
Special mention | 2,942 |
Substandard | 1,639 |
Doubtful | |
Loss | |
Total commercial real estate | 131,090 |
Pass | 127,790 |
Special mention | 3,239 |
Substandard | 1,239 |
Doubtful | |
Loss | |
Total residential real estate | 132,268 |
Pass | 15,492 |
Special mention | |
Substandard | 4 |
Doubtful | |
Loss | |
Total consumer | 15,496 |
Total loans | 324,409 |
Total Gross Charge-offs | |
Total Recoveries | |
Total Net Charge-offs | |
Risk Category Of Loans By Segment And Vintage Revolving Loans Amortized Cost Basis [Member] | |
Pass | 34,648 |
Special mention | 350 |
Substandard | 701 |
Doubtful | |
Loss | |
Total commercial & industrial | 35,699 |
Pass | |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total commercial real estate | |
Pass | 165 |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total residential real estate | 165 |
Pass | 22,808 |
Special mention | 97 |
Substandard | 8 |
Doubtful | |
Loss | |
Total consumer | 22,913 |
Total loans | 58,777 |
Total Gross Charge-offs | |
Total Recoveries | |
Total Net Charge-offs | |
Risk Category Of Loans By Segment And Vintage Revolving Loans Converted To Term [Member] | |
Pass | |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total commercial & industrial | |
Pass | |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total commercial real estate | |
Pass | |
Special mention | |
Substandard | |
Doubtful | |
Loss | |
Total residential real estate | |
Pass | 2,439 |
Special mention | 61 |
Substandard | |
Doubtful | |
Loss | |
Total consumer | 2,500 |
Total loans | 2,500 |
Total Gross Charge-offs | |
Total Recoveries | |
Total Net Charge-offs | |
Risk Category Of Loans By Segment And Vintage Total [Member] | |
Pass | 224,311 |
Special mention | 6,234 |
Substandard | 1,488 |
Doubtful | |
Loss | |
Total commercial & industrial | 232,033 |
Pass | 503,358 |
Special mention | 6,518 |
Substandard | 5,390 |
Doubtful | |
Loss | |
Total commercial real estate | 515,266 |
Pass | 452,339 |
Special mention | 3,260 |
Substandard | 1,907 |
Doubtful | |
Loss | |
Total residential real estate | 457,506 |
Pass | 44,791 |
Special mention | 158 |
Substandard | 12 |
Doubtful | |
Loss | |
Total consumer | 44,961 |
Total loans | 1,249,766 |
Total Gross Charge-offs | (35) |
Total Recoveries | 3 |
Total Net Charge-offs | $ 32 |
Composition of loans receivab_2
Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Commercial & industrial | $ 232,033 | $ 239,997 |
Commercial real estate | 515,266 | 491,659 |
Residential real estate | 457,506 | 449,652 |
Consumer | 44,961 | 46,208 |
Loans receivable, gross | $ 1,249,766 | 1,227,516 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Commercial & industrial | 232,259 | |
Commercial real estate | 477,006 | |
Residential real estate | 444,778 | |
Consumer | 46,041 | |
Loans receivable, gross | 1,200,084 | |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Commercial & industrial | 6,195 | |
Commercial real estate | 8,798 | |
Residential real estate | 2,995 | |
Consumer | 162 | |
Loans receivable, gross | 18,150 | |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Commercial & industrial | 1,543 | |
Commercial real estate | 5,855 | |
Residential real estate | 1,879 | |
Consumer | 5 | |
Loans receivable, gross | 9,282 | |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Commercial & industrial | ||
Commercial real estate | ||
Residential real estate | ||
Consumer | ||
Loans receivable, gross | ||
Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Commercial & industrial | ||
Commercial real estate | ||
Residential real estate | ||
Consumer | ||
Loans receivable, gross | ||
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Commercial & industrial | 239,997 | |
Commercial real estate | 491,659 | |
Residential real estate | 449,652 | |
Consumer | 46,208 | |
Loans receivable, gross | $ 1,227,516 |
Amortized cost basis of collate
Amortized cost basis of collateral-dependent non-accrual loans (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Real Estate Collateral Type [Member] | |
Commercial & industrial | |
Commercial real estate | 1,222 |
Residential real estate | 858 |
Consumer | 8 |
Total | 2,088 |
Business Assets Collateral Type [Member] | |
Commercial & industrial | 144 |
Commercial real estate | |
Residential real estate | |
Consumer | 9 |
Total | 153 |
Total Collateral Dependent Nonaccrual Loans [Member] | |
Commercial & industrial | 144 |
Commercial real estate | 1,222 |
Residential real estate | 858 |
Consumer | 17 |
Total | $ 2,241 |
Composition of loans receivab_3
Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | $ 232,033 | $ 239,997 |
Commercial real estate | 515,266 | 491,659 |
Residential real estate | 457,506 | 449,652 |
Consumer | 44,961 | 46,208 |
Loans receivable, gross | 1,249,766 | 1,227,516 |
Loans Receivable Delinquency Status Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | 231,733 | 239,847 |
Commercial real estate | 514,822 | 491,574 |
Residential real estate | 456,300 | 448,935 |
Consumer | 44,513 | 45,677 |
Loans receivable, gross | 1,247,368 | 1,226,033 |
Loans Receivable Delinquency Status Period Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | 300 | 149 |
Commercial real estate | 359 | |
Residential real estate | 1,124 | 672 |
Consumer | 373 | 442 |
Loans receivable, gross | 2,156 | 1,263 |
Loans Receivable Delinquency Status Period Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | 1 | |
Commercial real estate | ||
Residential real estate | 67 | 30 |
Consumer | 58 | 84 |
Loans receivable, gross | 125 | 115 |
Loans Receivable Delinquency Status Period Four [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | ||
Commercial real estate | 85 | 85 |
Residential real estate | 15 | |
Consumer | 17 | 5 |
Loans receivable, gross | 117 | 90 |
Loans Receivable Delinquency Status Total Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | 300 | |
Commercial real estate | 443 | |
Residential real estate | 1,207 | |
Consumer | 448 | |
Loans receivable, gross | 2,398 | |
Loans Receivable Delinquency Status Total Loans Outstanding [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | 232,033 | |
Commercial real estate | 515,266 | |
Residential real estate | 457,506 | |
Consumer | 44,961 | |
Loans receivable, gross | 1,249,766 | |
Loans Receivable Delinquency Accrual [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | ||
Commercial real estate | ||
Residential real estate | ||
Consumer | ||
Loans receivable, gross | ||
Loans Receivable Delinquency Status Period Five [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | ||
Commercial real estate | ||
Residential real estate | 15 | |
Consumer | ||
Loans receivable, gross | 15 | |
Loans Receivable Delinquency Status Period Six [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | 150 | |
Commercial real estate | 85 | |
Residential real estate | 717 | |
Consumer | 531 | |
Loans receivable, gross | 1,483 | |
Loans Receivable Delinquency Non Accrual [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial & industrial | 189 | |
Commercial real estate | 1,648 | |
Residential real estate | 820 | |
Consumer | 5 | |
Loans receivable, gross | $ 2,662 |
Amortized cost basis of loans o
Amortized cost basis of loans on non-accrual status (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Nonaccrual Loans With Allowance [Member] | ||
Commercial & industrial | ||
Commercial real estate | ||
Residential real estate | ||
Consumer | 9 | |
Total | 9 | |
Nonaccrual Loans Without Allowance [Member] | ||
Commercial & industrial | 144 | |
Commercial real estate | 1,222 | |
Residential real estate | 858 | |
Consumer | 8 | |
Total | 2,232 | |
Total Nonaccrual Loans [Member] | ||
Commercial & industrial | 144 | $ 189 |
Commercial real estate | 1,222 | 1,648 |
Residential real estate | 858 | 820 |
Consumer | 17 | 5 |
Total | $ 2,241 | $ 2,662 |
Components of troubled debt res
Components of troubled debt restructured loans (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Receivables [Abstract] | |
Commercial & industrial | |
Commercial real estate | 1,381 |
Residential real estate | 1,289 |
Consumer | |
Accruing troubled debt restructured loans | 2,670 |
Commercial & industrial | |
Commercial real estate | |
Residential real estate | 67 |
Consumer | |
Non-accrual troubled debt restructured loans | 67 |
Troubled debt restructured loans | $ 2,737 |
Past due status of troubled deb
Past due status of troubled debt restructured loans (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Receivables [Abstract] | |
Current | $ 2,670 |
Past due 30-59 days | |
Past due 60-89 days | |
Accruing troubled debt restructured loans | 2,670 |
Current | |
Past due 30-59 days | 67 |
Past due 180 days and over | |
Non-accrual troubled debt restructured loans | 67 |
Total troubled debt restructured loans | $ 2,737 |
Allowance for credit losses for
Allowance for credit losses for loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Allowance | $ 1,921 | $ 1,811 |
[custom:LoansAndLeasesReceivableAllowanceAccountingAdoptionImpact-1] | 2,447 | |
[custom:LoansAndLeasesReceivableAllowanceSubtotal-1] | 4,368 | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (89) | (173) |
Allowance for Loan and Lease Losses, Writeoff | (46) | |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 1 | |
Loans and Leases Receivable, Allowance | 4,279 | 1,593 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Allowance | 8,425 | 6,973 |
[custom:LoansAndLeasesReceivableAllowanceAccountingAdoptionImpact-1] | (3,236) | |
[custom:LoansAndLeasesReceivableAllowanceSubtotal-1] | 5,189 | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 705 | 261 |
Allowance for Loan and Lease Losses, Writeoff | (334) | |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||
Loans and Leases Receivable, Allowance | 5,894 | 6,900 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Allowance | 4,108 | 3,020 |
[custom:LoansAndLeasesReceivableAllowanceAccountingAdoptionImpact-1] | 831 | |
[custom:LoansAndLeasesReceivableAllowanceSubtotal-1] | 4,939 | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 287 | 252 |
Allowance for Loan and Lease Losses, Writeoff | (16) | |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||
Loans and Leases Receivable, Allowance | 5,226 | 3,253 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Allowance | 392 | 277 |
[custom:LoansAndLeasesReceivableAllowanceAccountingAdoptionImpact-1] | 229 | |
[custom:LoansAndLeasesReceivableAllowanceSubtotal-1] | 621 | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 21 | 37 |
Allowance for Loan and Lease Losses, Writeoff | (35) | (17) |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 3 | 5 |
Loans and Leases Receivable, Allowance | 610 | 302 |
Finance Leases Portfolio Total Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Allowance | 14,846 | 12,962 |
[custom:LoansAndLeasesReceivableAllowanceAccountingAdoptionImpact-1] | 271 | |
[custom:LoansAndLeasesReceivableAllowanceSubtotal-1] | 15,117 | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 924 | 363 |
Allowance for Loan and Lease Losses, Writeoff | (35) | (416) |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 3 | 6 |
Loans and Leases Receivable, Allowance | $ 16,009 | 12,915 |
Unallocated Financing Receivables [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Allowance | 881 | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (14) | |
Allowance for Loan and Lease Losses, Writeoff | ||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||
Loans and Leases Receivable, Allowance | $ 867 |
Activity in the allowance for c
Activity in the allowance for credit losses on unfunded commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Receivables [Abstract] | ||
Balance at the beginning of period December 31, 2021 | $ 178 | $ 146 |
Impact of adopting ASC 326 | 913 | |
Subtotal | 1,091 | |
Provision for credit losses | 92 | |
Balance at the end of period March 31, 2022 | $ 1,183 | 183 |
Other expense – unfunded commitments | $ 37 |
Composition of loans receivab_4
Composition of loans receivable and the allowance for loan losses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Commercial & industrial | $ 232,033 | $ 239,997 |
Commercial real estate | 515,266 | 491,659 |
Residential real estate | 457,506 | 449,652 |
Consumer | 44,961 | 46,208 |
Totals | 1,234,632 | 1,213,671 |
Allowance For Loan And Lease Losses Collectively Evaluated Loans [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Commercial & industrial | 231,889 | 239,808 |
Commercial real estate | 514,044 | 488,630 |
Residential real estate | 456,648 | 447,543 |
Consumer | 44,953 | 46,203 |
Totals | 1,247,534 | 1,222,184 |
Unallocated allowance | ||
SEC Schedule, 12-09, Allowance, Loan and Lease Loss, Real Estate [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Commercial & industrial | 4,279 | 1,780 |
Commercial real estate | 5,894 | 7,781 |
Residential real estate | 5,226 | 3,805 |
Consumer | 610 | 363 |
Totals | 16,009 | 14,824 |
Unallocated allowance | 1,095 | |
Allowance For Loan And Lease Losses Individually Evaluated Loans [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Commercial & industrial | 144 | 189 |
Commercial real estate | 1,222 | 3,029 |
Residential real estate | 858 | 2,109 |
Consumer | 8 | 5 |
Totals | 2,232 | 5,332 |
Unallocated allowance | ||
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Commercial & industrial | ||
Commercial real estate | 22 | |
Residential real estate | ||
Consumer | ||
Totals | 22 | |
Unallocated allowance | ||
Allowance For Loan And Lease Losses Total Portfolio Loans [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Commercial & industrial | 232,033 | 239,997 |
Commercial real estate | 515,266 | 491,659 |
Residential real estate | 457,506 | 449,652 |
Consumer | 44,961 | 46,208 |
Totals | 1,249,766 | 1,227,516 |
Unallocated allowance | ||
Allowance For Loan And Lease Losses Total Portfolio Allowance [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Commercial & industrial | 4,279 | 1,780 |
Commercial real estate | 5,894 | 7,803 |
Residential real estate | 5,226 | 3,805 |
Consumer | 610 | 363 |
Totals | $ 16,009 | 14,846 |
Unallocated allowance | $ 1,095 |
Certain data with respect to lo
Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | $ 232,033 | $ 239,997 | |
Residential real estate | 457,506 | 449,652 | |
Consumer | 44,961 | 46,208 | |
Totals | 1,234,632 | $ 1,213,671 | |
Loans No Specific Allowance Loan Balance Book [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 144 | ||
Commercial real estate | 1,222 | ||
Residential real estate | 858 | ||
Consumer | 8 | ||
Totals | 2,232 | ||
Loans No Specific Allowance Loan Balance Note [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 244 | ||
Commercial real estate | 1,748 | ||
Residential real estate | 941 | ||
Consumer | 8 | ||
Totals | 2,941 | ||
Loans No Specific Allowance Loan Balance Average [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 165 | ||
Commercial real estate | 1,619 | ||
Residential real estate | 1,170 | ||
Consumer | 31 | ||
Totals | 2,985 | ||
Loans No Specific Allowance Loan Income Recognized [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | |||
Commercial real estate | 14 | ||
Residential real estate | |||
Consumer | |||
Totals | $ 14 | ||
Impaired Loans Specific Allowance Loan Balance Book [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | $ 76 | ||
Commercial real estate | 598 | ||
Residential real estate | |||
Consumer | |||
Totals | 674 | ||
Impaired Loans Specific Allowance Loan Balance Note [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 76 | ||
Commercial real estate | 598 | ||
Residential real estate | |||
Consumer | |||
Totals | 674 | ||
Impaired Loans Specific Allowance Loan Balance Average [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 146 | ||
Commercial real estate | 602 | ||
Residential real estate | 21 | ||
Consumer | |||
Totals | 769 | ||
SEC Schedule, 12-09, Reserve, Impairment of Recognized Servicing Asset [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 3 | ||
Commercial real estate | 23 | ||
Residential real estate | |||
Consumer | |||
Totals | 26 | ||
Impaired Loans Specific Allowance Loan Income Recognized [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 1 | ||
Commercial real estate | 7 | ||
Residential real estate | |||
Consumer | |||
Totals | 8 | ||
Impaired Loans No Specific Allowance Loan Balance Book [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 28 | ||
Commercial real estate | 3,174 | ||
Residential real estate | 1,938 | ||
Consumer | |||
Totals | 5,140 | ||
Impaired Loans No Specific Allowance Loan Balance Note [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 25 | ||
Commercial real estate | 3,785 | ||
Residential real estate | 2,020 | ||
Consumer | |||
Totals | 5,830 | ||
Impaired Loans No Specific Allowance Loan Balance Average [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | 79 | ||
Commercial real estate | 3,282 | ||
Residential real estate | 2,944 | ||
Consumer | 15 | ||
Totals | 6,320 | ||
Impaired Loans No Specific Allowance Loan Income Recognized [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Commercial & industrial | |||
Commercial real estate | 11 | ||
Residential real estate | 14 | ||
Consumer | |||
Totals | $ 25 |
NOTE 4 _ LOANS AND ALLOWANCE _3
NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Receivables [Abstract] | |||
Debt Securities, Available-for-Sale, Allowance for Credit Loss, Period Increase (Decrease) | $ 300,000 | ||
[custom:AllowanceForOffBalanceSheetCreditLosses-0] | 1,200,000 | $ 200,000 | |
Off-Balance-Sheet, Credit Loss, Liability, Credit Loss Expense (Reversal) | 92,000 | $ 200,000 | |
Other Real Estate, Covered | $ 66,500,000 | $ 64,100,000 |
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, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Liabilities | |||
Operating leases | $ 76 | $ 74 | |
Amortization of leased assets | 56 | 35 | |
Interest on finance leases | 40 | 41 | |
Total lease cost | $ 172 | $ 150 | |
Operating leases | 5 years 219 days | 5 years 328 days 12 hours | |
Financing leases | 21 years 6 months | 21 years 6 months | |
Weighted Average Discount Rate 1 | |||
Operating leases | 3.74% | 3.63% | |
Financing leases | 3.76% | 3.74% | |
Assets And Liabilities [Member] | |||
Assets | |||
Operating | $ 1,183 | $ 1,175 | |
Finance | 3,800 | 3,856 | |
Total leased assets | 4 | 5,031 | |
Liabilities | |||
Operating | 1,183 | 1,175 | |
Finance | 4,225 | 4,262 | |
Total lease liabilities | $ 5,408 | $ 5,437 |
Present value of net minimum le
Present value of net minimum lease payments (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Operating Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
$ 201 | |
270 | |
218 | |
213 | |
188 | |
242 | |
1,333 | |
(150) | |
1,183 | |
Finance Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
228 | |
314 | |
323 | |
334 | |
344 | |
4,924 | |
6,167 | |
(1,941) | |
$ 4,225 |
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, 2023 | Dec. 31, 2022 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Residential mortgage loans serviced for others | $ 130,275 | $ 133,100 |
Fair value of mortgage servicing rights | $ 1,309 | $ 1,376 |
Changes in mortgage servicing r
Changes in mortgage servicing rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Mortgage Servicing Rights | ||
Balance, beginning of period | $ 630 | $ 700 |
Originated | 55 | |
Amortization (1) | (26) | (39) |
Balance, end of period | 604 | 716 |
Valuation Allowance | ||
Balance, beginning of period | ||
Decrease in impairment reserve (1) | ||
Balance, end of period | ||
Mortgage servicing rights, net | $ 604 | $ 716 |
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, 2023 | Dec. 31, 2022 |
Securities available-for-sale (at fair value) | $ 80,456 | $ 74,303 |
Loans receivable (at book value) | 381,740 | 380,787 |
Total pledged assets | $ 462,196 | $ 455,090 |
NOTE 7 - PLEDGED ASSETS (Detail
NOTE 7 - PLEDGED ASSETS (Details Narrative) | Mar. 31, 2023 USD ($) |
Asset Pledged as Collateral [Member] | |
Variable Interest Entity [Line Items] | |
Debt Instrument, Collateral Amount | $ 77,300,000 |
Asset Pledged As Collateral 2 [Member] | |
Variable Interest Entity [Line Items] | |
Debt Instrument, Collateral Amount | $ 3,200,000 |
Calculation of earnings per sha
Calculation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 3,018 | $ 3,568 |
Less: Undistributed earnings allocated to participating securities | (50) | (60) |
Net income allocated to common stock | 2,968 | 3,508 |
Weighted-average common shares issued | 5,799 | 5,734 |
Less: Unvested restricted stock awards | (97) | (98) |
Weighted average common shares outstanding used to calculate basic earnings per common share | 5,702 | 5,636 |
Add: Dilutive effect of stock options and restricted stock units | 12 | 58 |
Weighted-average common shares outstanding used to calculate diluted earnings per common share | $ 5,714 | $ 5,694 |
Earnings per common share (basic) | $ 0.52 | $ 0.62 |
Earnings per common share (diluted) | $ 0.52 | $ 0.62 |
Actual regulatory capital posit
Actual regulatory capital position and minimum capital requirements (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total Capital To Risk Weighted Assets [Member] | ||
Banking Regulation, Total Capital, Actual | $ 171,829 | $ 168,786 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1341 | 0.1343 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 102,472 | $ 100,525 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.080 | 0.080 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 134,495 | $ 131,939 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 10.50% | 10.50% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 128,090 | $ 125,656 |
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 | $ 155,812 | $ 153,762 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1216 | 0.1224 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 76,854 | $ 75,394 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.060 | 0.060 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 108,877 | $ 106,808 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 8.50% | 8.50% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 102,472 | $ 100,525 |
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 | $ 155,812 | $ 153,762 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1216 | 0.1224 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 57,641 | $ 56,545 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.045 | 0.045 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 89,663 | $ 87,959 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 7% | 7% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 83,259 | $ 81,677 |
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 | $ 155,812 | $ 153,762 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.0998 | 0.0999 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 62,444 | $ 61,540 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.040 | 0.040 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 62,444 | $ 61,540 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 4% | 4% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 78,055 | $ 76,925 |
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, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Banking Regulation, Risk-Weighted Assets, Actual | $ 1,280,900,000 | $ 1,256,600,000 |
NOTE 10 _ BENEFITS (Details Nar
NOTE 10 – BENEFITS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Administrative Expense | $ 328 | $ 294 | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | 98 | 35 | |
Liability, Pension and Other Postretirement and Postemployment Benefits, Current | 694 | $ 702 | |
[custom:ExpensesUnderFuturePostretirementBenefitObligationsUnderEndorsementSplitdollarLifeInsuranceArrangements] | 8 | 8 | |
[custom:SupplementalRetirementAgreementRelatedLiability-0] | 199 | $ 212 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 145 | $ 47 |
NOTE 11 _ LONG TERM INCENTIVE_2
NOTE 11 – LONG TERM INCENTIVE PLANS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 183,000 | $ 188,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 961,000 | $ 1,600,000 | ||||
[custom:PerformancebasedRestrictedStockUnitsPursuantTo2017LongtermIncentivePlanGranted] | 13,900 | 14,800 | 14,500 | |||
[custom:PerformancebasedRestrictedStockUnitsPursuantTo2017LongtermIncentivePlanFairValue] | $ 394,000 | $ 354,000 | ||||
[custom:PerformancebasedRestrictedStockUnitsPursuantTo2017LongtermIncentivePlanCompensationExpense] | 42,000 | $ 97,000 | ||||
[custom:ShortTermIncentivePlanExpenseIncludedInCompensationExpenses] | $ 315,000 | $ 267,000 |
Assets measured at fair value (
Assets measured at fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets at fair value on a recurring basis | ||
Securities available-for-sale | $ 187,598 | $ 187,410 |
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 | 833 | |
Securities available-for-sale | 833 | |
Mutual funds | 1,933 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 17,133 | |
U.S. Government Agency notes | 27,154 | |
Municipal bonds | 46,538 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 61,875 | |
U.S. Government agencies | 21,936 | |
Corporate bonds | 11,941 | |
Securities available-for-sale | 186,577 | |
Mutual funds | ||
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 | ||
Mutual funds | ||
Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 17,133 | |
U.S. Government Agency notes | 27,154 | |
Municipal bonds | 46,538 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 61,875 | |
U.S. Government agencies | 21,936 | |
Corporate bonds | 12,744 | |
Securities available-for-sale | 187,410 | |
Mutual funds | $ 1,933 | |
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 | 834 | |
Securities available-for-sale | 834 | |
Mutual funds | 2,068 | |
Fair Value Inputs Level 2 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 17,479 | |
U.S. Government Agency notes | 26,844 | |
Municipal bonds | 48,199 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 60,550 | |
U.S. Government agencies | 21,915 | |
Corporate bonds | 11,777 | |
Securities available-for-sale | 186,764 | |
Mutual funds | ||
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 | ||
Mutual funds | ||
Fair Value Inputs Level 12 And 3 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 17,479 | |
U.S. Government Agency notes | 26,844 | |
Municipal bonds | 48,199 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 60,550 | |
U.S. Government agencies | 21,915 | |
Corporate bonds | 12,611 | |
Securities available-for-sale | 187,598 | |
Mutual funds | $ 2,068 |
Carrying values and estimated f
Carrying values and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Securities available-for-sale | $ 187,598 | $ 187,410 |
Carrying Reported Amount Fair Value Disclosure S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 49,844 | 50,539 |
Securities available-for-sale | 187,598 | 187,410 |
Mutual fund | 2,068 | 1,933 |
Federal Home Loan Bank of Boston stock | 5,030 | 1,285 |
Loans held-for-sale | ||
Loans receivable, net | 1,234,632 | 1,213,671 |
Accrued interest receivable | 6,383 | 6,797 |
Cash surrender value of life insurance policies | 30,571 | 30,379 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 370,049 | 395,994 |
Demand (interest-bearing) | 218,902 | 231,486 |
Money market | 296,974 | 343,965 |
Savings and other | 236,755 | 233,578 |
Certificates of deposit | 170,362 | 153,370 |
Deposits | 1,293,042 | 1,358,393 |
Repurchase agreements | 3,230 | 7,228 |
FHLBB advances | 100,000 | 10,000 |
Subordinated debt | 24,545 | 24,531 |
Note payable | 117 | 128 |
Finance lease liability | 4,225 | 4,262 |
Accrued interest payable | 425 | 210 |
Estimate Of Fair Value Fair Value Disclosure S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 49,844 | 50,539 |
Securities available-for-sale | 187,598 | 187,410 |
Mutual fund | 2,068 | 1,933 |
Federal Home Loan Bank of Boston stock | 5,030 | 1,285 |
Loans held-for-sale | ||
Loans receivable, net | 1,193,272 | 1,172,416 |
Accrued interest receivable | 6,383 | 6,797 |
Cash surrender value of life insurance policies | 30,571 | 30,379 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 370,049 | 395,994 |
Demand (interest-bearing) | 218,902 | 231,486 |
Money market | 296,974 | 343,965 |
Savings and other | 236,755 | 233,578 |
Certificates of deposit | 170,806 | 153,411 |
Deposits | 1,293,486 | 1,358,434 |
Repurchase agreements | 3,230 | 7,228 |
FHLBB advances | 99,999 | 10,000 |
Subordinated debt | 21,022 | 21,670 |
Note payable | 114 | 125 |
Finance lease liability | 3,449 | 3,546 |
Accrued interest payable | 425 | 210 |
Fair Value Inputs Level 1 S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 49,844 | 50,539 |
Securities available-for-sale | 834 | 833 |
Mutual fund | 2,068 | 1,933 |
Federal Home Loan Bank of Boston stock | ||
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance policies | ||
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 | ||
Securities available-for-sale | 186,764 | 186,577 |
Mutual fund | ||
Federal Home Loan Bank of Boston stock | 5,030 | 1,285 |
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | 6,383 | 6,797 |
Cash surrender value of life insurance policies | 30,571 | 30,379 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 370,049 | 395,994 |
Demand (interest-bearing) | 218,902 | 231,486 |
Money market | 296,974 | 343,965 |
Savings and other | 236,755 | 233,578 |
Certificates of deposit | 170,806 | 153,411 |
Deposits | 1,293,486 | 1,358,434 |
Repurchase agreements | 3,230 | 7,228 |
FHLBB advances | 99,999 | 10,000 |
Subordinated debt | 21,022 | 21,670 |
Note payable | 114 | 125 |
Finance lease liability | ||
Accrued interest payable | 425 | 210 |
Fair Value Inputs Level 3 S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | ||
Securities available-for-sale | ||
Mutual fund | ||
Federal Home Loan Bank of Boston stock | ||
Loans held-for-sale | ||
Loans receivable, net | 1,193,272 | 1,172,416 |
Accrued interest receivable | ||
Cash surrender value of life insurance policies | ||
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 | 3,449 | 3,546 |
Accrued interest payable |
NOTE 13 _ SUBSEQUENT EVENTS (De
NOTE 13 – SUBSEQUENT EVENTS (Details Narrative) | Apr. 26, 2023 $ / shares |
Subsequent Events [Abstract] | |
Dividends Payable, Amount Per Share | $ 0.16 |