Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 05, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-16767 | ||
Entity Registrant Name | Western New England Bancorp, Inc. | ||
Entity Central Index Key | 0001157647 | ||
Entity Tax Identification Number | 73-1627673 | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Address, Address Line One | 141 Elm Street | ||
Entity Address, City or Town | Westfield | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01085 | ||
City Area Code | 413 | ||
Local Phone Number | 568-1911 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | WNEB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 148,480,694 | ||
Entity Common Stock, Shares Outstanding | 25,103,656 | ||
ICFR Auditor Attestation Flag | true | ||
Share Price | $ 5.79 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 17,399 | $ 16,640 |
Federal funds sold | 2,987 | 1,635 |
Interest-bearing deposits and other short-term investments | 67,058 | 6,466 |
Cash and cash equivalents | 87,444 | 24,741 |
Securities available-for-sale, at fair value | 201,880 | 227,708 |
Marketable equity securities, at fair value | 11,968 | 6,737 |
Federal Home Loan Bank stock and other restricted stock, at cost | 5,160 | 14,477 |
Loans, net of allowance for loan losses of $21,157 and $14,102 at December 31, 2020 and 2019, respectively | 1,906,226 | 1,761,932 |
Premises and equipment, net | 25,103 | 23,763 |
Accrued interest receivable | 8,477 | 5,313 |
Bank-owned life insurance | 72,860 | 71,051 |
Deferred tax asset, net | 12,588 | 9,161 |
Goodwill | 12,487 | 12,487 |
Core deposit intangible | 2,937 | 3,312 |
Other assets | 18,756 | 20,794 |
Total Assets | 2,365,886 | 2,181,476 |
Deposits: | ||
Non-interest-bearing | 541,759 | 393,303 |
Interest-bearing | 1,496,371 | 1,284,561 |
Total deposits | 2,038,130 | 1,677,864 |
Short-term borrowings | 35,000 | |
Long-term debt | 57,850 | 205,515 |
Securities pending settlement | 160 | |
Other liabilities | 43,106 | 31,073 |
Total liabilities | 2,139,246 | 1,949,452 |
SHAREHOLDERS’ EQUITY: | ||
Preferred stock - $0.01 par value, 5,000,000 shares authorized, none outstanding at December 31, 2020 and December 31, 2019 | ||
Common stock - $0.01 par value, 75,000,000 shares authorized, 25,276,193 shares issued and outstanding at December 31, 2020; 26,557,981 shares issued and outstanding at December 31, 2019 | 253 | 266 |
Additional paid-in capital | 154,549 | 164,248 |
Unearned compensation - ESOP | (3,997) | (4,574) |
Unearned compensation - Equity Incentive Plan | (1,240) | (1,124) |
Retained earnings | 88,354 | 82,176 |
Accumulated other comprehensive loss | (11,279) | (8,968) |
TOTAL SHAREHOLDERS’ EQUITY | 226,640 | 232,024 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,365,886 | $ 2,181,476 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 21,157 | $ 14,102 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 75,000,000 | 75,000,000 |
Common stock, issued | 25,276,193 | 26,557,981 |
Common stock, outstanding | 25,276,193 | 26,557,981 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and dividend income: | |||
Residential and commercial real estate loans | $ 62,115 | $ 62,240 | $ 57,647 |
Commercial and industrial loans | 15,409 | 12,254 | 12,801 |
Consumer loans | 313 | 343 | 347 |
Debt securities, taxable | 4,163 | 5,981 | 6,920 |
Debt securities, tax-exempt | 56 | 72 | 85 |
Equity securities | 123 | 163 | 152 |
Other investments | 587 | 833 | 863 |
Short-term investments | 109 | 230 | 175 |
Total interest and dividend income | 82,875 | 82,116 | 78,990 |
Interest expense: | |||
Deposits | 13,500 | 17,207 | 11,683 |
Long-term debt | 3,333 | 4,361 | 4,380 |
Short-term borrowings | 1,612 | 2,569 | 2,915 |
Total interest expense | 18,445 | 24,137 | 18,978 |
Net interest and dividend income | 64,430 | 57,979 | 60,012 |
Provision for loan losses | 7,775 | 2,675 | 1,900 |
Net interest and dividend income after provision for loan losses | 56,655 | 55,304 | 58,112 |
Non-interest income (loss): | |||
Service charges and fees | 7,067 | 7,364 | 6,937 |
Income from BOLI | 1,809 | 1,799 | 1,825 |
Gain on bank-owned life insurance death benefit | 715 | ||
Gain (loss) on available-for-sale securities, net | 1,965 | (97) | (281) |
Gain on sale of OREO | 48 | ||
Unrealized gains (losses) on marketable equity securities, net | 109 | 165 | (142) |
Loss on interest rate swap termination | (2,353) | ||
Other income | 654 | 474 | 131 |
Total non-interest income | 9,251 | 9,705 | 9,233 |
Non-interest expense: | |||
Salaries and employees benefits | 29,349 | 27,654 | 25,982 |
Occupancy | 4,520 | 4,174 | 3,974 |
Furniture and equipment | 1,537 | 1,673 | 1,561 |
Data processing | 2,901 | 2,780 | 2,638 |
Professional fees | 2,372 | 2,439 | 2,810 |
FDIC insurance assessment | 1,032 | 430 | 603 |
Advertising | 1,106 | 1,332 | 1,395 |
Loss on prepayment of borrowings | 987 | ||
Other expenses | 7,946 | 7,326 | 7,274 |
Total non-interest expense | 51,750 | 47,808 | 46,237 |
Income before income taxes | 14,156 | 17,201 | 21,108 |
Income tax provision | 2,941 | 3,852 | 4,700 |
Net income | $ 11,215 | $ 13,349 | $ 16,408 |
Earnings per common share: | |||
Basic earnings per share | $ 0.45 | $ 0.51 | $ 0.57 |
Weighted average shares outstanding | 25,047,195 | 26,185,336 | 28,886,904 |
Diluted earnings per share | $ 0.45 | $ 0.51 | $ 0.57 |
Weighted average diluted shares outstanding | 25,062,476 | 26,303,140 | 29,029,394 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
Net income | $ 11,215 | $ 13,349 | $ 16,408 | |
Unrealized gains (losses) on available-for-sale securities: | ||||
Unrealized holding gains (losses) | 3,660 | 9,394 | (4,814) | |
Reclassification adjustment for net (gains) losses realized in income | [1] | (1,965) | 97 | 281 |
Unrealized gains (losses) | 1,695 | 9,491 | (4,533) | |
Tax effect | (410) | (2,420) | 938 | |
Net-of-tax amount | 1,285 | 7,071 | (3,595) | |
Cash flow hedges: | ||||
Change in fair value of derivatives used for cash flow hedges | 1,099 | (900) | 442 | |
Reclassification adjustment for loss realized in interest expense | [2] | 674 | 387 | 452 |
Reclassification adjustment for termination fee realized in interest expense | [3] | 842 | 1,068 | 1,068 |
Unrealized gains on cash flow hedges | 2,615 | 555 | 1,962 | |
Tax effect | (736) | (156) | (551) | |
Net-of-tax amount | 1,879 | 399 | 1,411 | |
Defined benefit pension plan: | ||||
(Losses) gains arising during the period | (8,037) | (4,349) | 1,328 | |
Amortization of defined benefit plans actuarial loss | [4] | 421 | 137 | 177 |
Unrecognized actuarial (losses) gains on defined benefit plan | (7,616) | (4,212) | 1,505 | |
Tax effect | 2,141 | 1,183 | (422) | |
Net-of-tax amount | (5,475) | (3,029) | 1,083 | |
Other comprehensive (loss) income | (2,311) | 4,441 | (1,101) | |
Comprehensive income | $ 8,904 | $ 17,790 | $ 15,307 | |
[1] | Realized gains and losses on available-for-sale securities are recognized as a component of non-interest income in the consolidated statements of net income. The tax effects associated with the reclassification adjustments were $502,000, $(37,000) and $(79,000) for the years ended December 31, 2020, 2019 and 2018, respectively. | |||
[2] | Loss realized in interest expense on derivative instruments is recognized as a component of interest expense on long-term debt in the consolidated statements of net income. Income tax effects associated with the reclassification adjustments were $189,000, $109,000 and $127,000 for the years ended December 31, 2020, 2019 and 2018, respectively. | |||
[3] | Termination fee realized in interest expense on derivative instruments is recognized as a component of interest expense on long-term debt in the consolidated statements of net income. Income tax effects associated with the reclassification adjustments were $237,000, $300,000 and $300,000 for the years ended December 31, 2020, 2019 and 2018, respectively. | |||
[4] | Amounts represent the reclassification of defined benefit plan amortization and have been recognized as a component of non-interest expense in the consolidated statements of net income. Income tax effects associated with the reclassification adjustments were $118,000, $38,000 and $50,000 for the years ended December 31, 2020, 2019 and 2018, respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Income tax expense (benefits) on realized gains and losses on available-for-sale securities | $ 502,000 | $ (37,000) | $ (79,000) |
Income tax benefit on derivative instruments | 189,000 | 109,000 | 127,000 |
Income tax benefit on termination fee on derivative instruments | 237,000 | 300,000 | 300,000 |
Income tax benefit, defined benefit plans | $ 118,000 | $ 38,000 | $ 50,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Unearned Compensation - ESOP [Member] | Deferred Compensation, Share-based Payments [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2017 | $ 305 | $ 203,527 | $ (5,786) | $ (791) | $ 62,578 | $ (12,552) | $ 247,281 |
Beginning balance, shares at Dec. 31, 2017 | 30,487,309 | ||||||
Comprehensive income (loss) | 16,408 | (1,101) | 15,307 | ||||
Cumulative-effect adjustment due to change in accounting principle (ASU 2017-08) | (237) | 237 | |||||
Common stock held by ESOP committed to be released | 345 | 615 | 960 | ||||
Common stock repurchased | $ (22) | (22,815) | (22,837) | ||||
Common stock repurchased (in shares) | (2,198,376) | ||||||
Share-based compensation - equity incentive plan | 845 | 845 | |||||
Issuance of common stock in connection with stock option exercises | 114 | 114 | |||||
Issuance of common stock in connection with stock option exercises (shares) | 18,975 | ||||||
Issuance of common stock in connection with equity incentive plan | $ 1 | 925 | (926) | ||||
Issuance of common stock in connection with equity incentive plan (shares) | 85,440 | ||||||
Cash dividends declared and paid on common stock | (4,641) | (4,641) | |||||
Ending balance, value at Dec. 31, 2018 | $ 284 | 182,096 | (5,171) | (872) | 74,108 | (13,416) | 237,029 |
Ending balance, shares at Dec. 31, 2018 | 28,393,348 | ||||||
Comprehensive income (loss) | 13,349 | 4,441 | 17,790 | ||||
Cumulative-effect adjustment due to change in accounting principle (ASU 2017-08) | (7) | 7 | |||||
Common stock held by ESOP committed to be released | 237 | 597 | 834 | ||||
Common stock repurchased | $ (19) | (19,215) | (19,234) | ||||
Common stock repurchased (in shares) | (1,958,111) | ||||||
Share-based compensation - equity incentive plan | (45) | 818 | 773 | ||||
Issuance of common stock in connection with stock option exercises | 106 | 106 | |||||
Issuance of common stock in connection with stock option exercises (shares) | 19,861 | ||||||
Issuance of common stock in connection with equity incentive plan | $ 1 | 1,069 | (1,070) | ||||
Issuance of common stock in connection with equity incentive plan (shares) | 102,883 | ||||||
Cash dividends declared and paid on common stock | (5,274) | (5,274) | |||||
Ending balance, value at Dec. 31, 2019 | $ 266 | 164,248 | (4,574) | (1,124) | 82,176 | (8,968) | 232,024 |
Ending balance, shares at Dec. 31, 2019 | 26,557,981 | ||||||
Comprehensive income (loss) | 11,215 | (2,311) | 8,904 | ||||
Common stock held by ESOP committed to be released | (26) | 577 | 551 | ||||
Forfeited equity incentive plan shares (30,193 shares) | (319) | 319 | |||||
Common stock repurchased | $ (14) | (10,665) | (10,679) | ||||
Common stock repurchased (in shares) | (1,416,362) | ||||||
Share-based compensation - equity incentive plan | 834 | 834 | |||||
Issuance of common stock in connection with stock option exercises | 43 | 43 | |||||
Issuance of common stock in connection with stock option exercises (shares) | 7,239 | ||||||
Issuance of common stock in connection with equity incentive plan | $ 1 | 1,268 | (1,269) | ||||
Issuance of common stock in connection with equity incentive plan (shares) | 127,335 | ||||||
Cash dividends declared and paid on common stock | (5,037) | (5,037) | |||||
Ending balance, value at Dec. 31, 2020 | $ 253 | $ 154,549 | $ (3,997) | $ (1,240) | $ 88,354 | $ (11,279) | $ 226,640 |
Ending balance, shares at Dec. 31, 2020 | 25,276,193 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock held by ESOP committed to be released (shares) | 85,101 | 88,117 | 90,978 |
Cash dividends declared and paid on common stock (per share) | $ 0.20 | $ 0.20 | $ 0.16 |
Forfeited equity incentive plan shares (in shares) | 30,193 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES: | |||
Net income | $ 11,215 | $ 13,349 | $ 16,408 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 7,775 | 2,675 | 1,900 |
Depreciation and amortization of premises and equipment | 2,145 | 2,079 | 2,055 |
Net (accretion) amortization of purchase accounting adjustments | (946) | 24 | (1,094) |
Amortization of core deposit intangible | 375 | 376 | 375 |
Net amortization of premiums and discounts on securities and mortgage loans | 2,540 | 2,371 | 2,417 |
Share-based compensation expense | 834 | 773 | 845 |
ESOP expense | 551 | 834 | 960 |
Change in unrealized (gain) loss on marketable equity securities | (109) | (165) | 142 |
Net (gain) loss on sales of available-for-sale securities | (1,965) | 97 | 281 |
Net gain on sales of other real estate owned | (48) | ||
Loss on prepayment of borrowings | 987 | ||
Deferred income tax benefit | (2,431) | (680) | (796) |
Income from bank-owned life insurance | (1,809) | (1,799) | (1,825) |
Gain on bank-owned life insurance death benefit | (715) | ||
Net change in: | |||
Accrued interest receivable | (3,164) | 339 | 294 |
Other assets | 5,182 | (7,204) | 1,628 |
Other liabilities | 3,887 | 2,310 | 1,811 |
Net cash provided by operating activities | 25,067 | 15,379 | 24,638 |
INVESTING ACTIVITIES: | |||
Purchases | (158,979) | (74,508) | (16,896) |
Proceeds from sales and redemptions | 96,320 | 72,156 | 12,470 |
Proceeds from calls, maturities, and principal collections | 84,774 | 35,386 | 25,060 |
Loan originations and principal payments, net | (151,474) | (80,074) | (66,263) |
Redemption of Federal Home Loan Bank of Boston stock, net | 9,317 | 218 | 858 |
Proceeds from sale of other real estate owned | 203 | ||
Purchases of premises and equipment | (3,581) | (1,285) | (3,327) |
Proceeds from sale of premises and equipment | 66 | 27 | 100 |
Proceeds from payout on bank-owned life insurance | 2,050 | ||
Net cash used in investing activities | (123,557) | (48,080) | (45,745) |
FINANCING ACTIVITIES: | |||
Net increase in deposits | 360,313 | 81,946 | 90,189 |
Net decrease in short-term borrowings | (35,000) | (24,250) | (85,400) |
Repayment of long-term debt | (207,524) | (84,763) | (69,578) |
Proceeds from long-term debt | 58,917 | 82,343 | 113,000 |
Cash dividends paid | (5,037) | (5,274) | (4,641) |
Common stock repurchased | (10,519) | (19,455) | (22,920) |
Issuance of common stock in connection with stock option exercises | 43 | 106 | 114 |
Net cash provided by financing activities | 161,193 | 30,653 | 20,764 |
NET CHANGE IN CASH AND CASH EQUIVALENTS: | 62,703 | (2,048) | (343) |
Beginning of year | 24,741 | 26,789 | 27,132 |
End of year | 87,444 | 24,741 | 26,789 |
Supplemental cash flow information: | |||
Net change in due to broker for common stock repurchased | $ 160 | $ (221) | $ (83) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Basis of Presentation The Bank operates 25 Wholly-owned Subsidiaries of the Bank Principles of Consolidation Estimates Reclassifications Significant Group Concentrations of Credit Risk Cash and Cash Equivalents Securities and Mortgage-Backed Securities Realized gains and losses on sales of securities and mortgage-backed securities are computed using the specific identification method and are included in non-interest income on the trade date. The amortization of premiums and accretion of discounts is determined by using the level yield method to the maturity date. Derivatives Other-than-Temporary Impairment of Securities Fair Value Hierarchy Level 1: Level 2: Level 3: Federal Home Loan Bank of Boston Stock Loans Held for Sale Loans Receivable Allowance for Loan Losses The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. General component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate (includes one-to-four family and home equity), commercial real estate, commercial and industrial, and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: trends in delinquencies and non-performing loans; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; and national and local economic trends and industry conditions. Beginning in March 2020, the Bank added a new qualitative factor category to the allowance calculation – “Economic Impact of COVID-19”. The allocation of additional reserves for the COVID-19 qualitative factor during the year was based upon continued analysis of the loan portfolio that included identifying borrowers sensitive to the shutdown (i.e. accommodation and food service, recreation, construction, manufacturing, and wholesale & retail trade) as well as a general allocation for the negative economic outlook given the record number of unemployment benefits claims during the period. In addition, on an ongoing basis, the Company has continually evaluated the loan portfolio acquired on October 24, 2016 from Chicopee Bancorp, Inc. (“Chicopee”). The acquired portfolio was initially recorded at fair value without a related allowance for loan losses. Subsequent to acquisition, there have been no indications that there has been any subsequent deterioration to the acquired portfolio. Due to the ongoing impacts and extended nature of the pandemic, during the year ended December 31, 2020, the Company determined that it was prudent to provide an allowance for loan losses related to the acquired portfolio. Excluding the COVID-19 qualitative factor category and the allowance for the acquired loan portfolio, there were no additional changes in our policies or methodology pertaining to the general component of the allowance for loan losses during the periods presented for disclosure. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each loan portfolio segment are as follows: Commercial real estate loans Residential real estate loans 80 Commercial and industrial loans In addition, as a Preferred Lender with the Small Business Administration (“SBA”), the Company offered Paycheck Protection Program (“PPP”) loans through the March 27, 2020 $ 2.2 2.5 10.0 1.0 100 60 40 Consumer loans Allocated component The allocated component relates to loans that are classified as impaired. Impaired loans are identified by analysis of loan performance, internal credit ratings and watch list loans that management believes are subject to a higher risk of loss. Impairment is measured on a loan by loan basis for commercial real estate and commercial and industrial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, we do not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are non-performing or subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. We determine the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The extent to which COVID-19 impacts our borrower’s ability to repay and therefore the classification of a loan as impaired is highly uncertain and cannot be predicted with confidence as it is highly dependent upon the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures. We may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired. While we use our best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. Unallocated component An unallocated component may be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Loans Acquired with Deteriorated Credit Quality Bank-owned Life Insurance Transfers and Servicing of Financial Assets Premises and Equipment The estimated useful lives of the assets are as follows: Schedule of estimated useful lives of assets Years Buildings 39 Leasehold Improvements 5 20 Furniture and Equipment 3 7 The cost of maintenance and repairs is charged to expense when incurred. Major expenditures for betterments are capitalized and depreciated. Other Real Estate Owned Servicing Servicing fee income is recorded for fees earned for servicing loans, which is included in service charges and fee income. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Impairment of Long-lived Assets Goodwill is measured as the excess of the cost of a business combination over the sum of the amounts assigned to identifiable intangible assets acquired less liabilities assumed. Goodwill is not amortized but rather assessed for impairment annually or more frequently if circumstances warrant. Management has the option of first assessing qualitative factors, such as events and circumstances, to determine whether it is more likely than not, meaning a likelihood of more than 50%, the value of a reporting unit is less than its carrying amount. If, after considering all relevant events and circumstances, management determines it is not more likely than not the fair value of a reporting unit is less than its carrying amount, then performing an impairment test is unnecessary. For the year ended December 31, 2020, management determined that it was not more likely than not the fair value of the reporting unit (the consolidated Company, in our case) was less than its carrying amount. If management had determined otherwise, a fair value analysis would have been completed to determine the impairment and necessary write-down of goodwill. Retirement Plans and Employee Benefits 50 6 Share-based Compensation Plans Employee Stock Ownership Plan Leases other liabilities Advertising Costs Income Taxes Earnings per Share Earnings per common share have been computed based on the following: Schedule of earrings per common share Years Ended December 31, 2020 2019 2018 (In thousands, except per share data) Net income applicable to common stock $ 11,215 $ 13,349 $ 16,408 Average number of common shares issued 25,751 26,959 29,734 Less: Average unallocated ESOP Shares (580 ) (667 ) (757 ) Less: Average unvested equity incentive plan shares (124 ) (107 ) (90 ) Average number of common shares outstanding used to calculate basic earnings per common share 25,047 26,185 28,887 Effect of dilutive equity incentive plan — 45 46 Effect of dilutive stock options 15 73 96 Average number of common shares outstanding used to calculate diluted earnings per common share 25,062 26,303 29,029 Basic earnings per share $ 0.45 $ 0.51 $ 0.57 Diluted earnings per share $ 0.45 $ 0.51 $ 0.57 Anti-dilutive shares (1) 259 — — (1) Shares outstanding but not included because the impact of these shares would be anti-dilutive to the earnings per share calculation for the periods presented. Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss). The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows: Schedule of accumulated other comprehensive loss included in shareholders equity December 31, 2020 December 31, 2019 (In thousands) Net unrealized gains (losses) on securities available-for-sale $ 1,302 $ (393 ) Tax effect (339 ) 71 Net-of-tax amount 963 (322 ) Fair value of derivatives used for cash flow hedges — (1,773 ) Termination fee on cancelled cash flow hedges (684 ) (1,526 ) Total derivatives (684 ) (3,299 ) Tax effect 192 928 Net-of-tax amount (492 ) (2,371 ) Unrecognized actuarial loss on the defined benefit plan (16,344 ) (8,728 ) Tax effect 4,594 2,453 Net-of-tax amount (11,750 ) (6,275 ) Accumulated other comprehensive loss $ (11,279 ) $ (8,968 ) With regard to the defined benefit plan, an actuarial loss of $ 934,000 Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES The amortized cost and fair values of available-for-sale investment securities at December 31, 2020 and 2019 are summarized as follows: December 31, 2020 Amortized Gross Gross Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 14,871 $ 15 $ (111 ) $ 14,775 State and municipal bonds 405 1 — 406 Corporate bonds 3,039 36 — 3,075 Total debt securities 18,315 52 (111 ) 18,256 Mortgage-backed securities: Government-sponsored mortgage-backed securities 161,290 1,742 (303 ) 162,729 U.S. government guaranteed mortgage-backed securities 20,973 108 (186 ) 20,895 Total mortgage-backed securities 182,263 1,850 (489 ) 183,624 Total available-for-sale $ 200,578 $ 1,902 $ (600 ) $ 201,880 December 31, 2019 Amortized Gross Gross Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 20,150 $ — $ (136 ) $ 20,014 State and municipal bonds 2,718 95 — 2,813 Corporate bonds 7,800 88 (22 ) 7,866 Total debt securities 30,668 183 (158 ) 30,693 Mortgage-backed securities: Government-sponsored mortgage-backed securities 186,236 780 (1,015 ) 186,001 U.S. government guaranteed mortgage-backed securities 11,197 33 (216 ) 11,014 Total mortgage-backed securities 197,433 813 (1,231 ) 197,015 Total available-for-sale $ 228,101 $ 996 $ (1,389 ) $ 227,708 At December 31, 2020, mortgage-backed securities with a fair value of $ 74.3 The amortized cost and fair value of available-for-sale debt securities at December 31, 2020, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations. Also, because mortgage-backed securities require periodic principal pay downs, they are not included in the maturity categories in the following summary. December 31, 2020 Amortized Cost Fair Value (In thousands) Available-for-sale securities: Debt securities: Due after one year through five years $ 3,444 $ 3,481 Due after five years through ten years 9,891 9,884 Due after ten years 4,980 4,891 Total debt securities 18,315 18,256 Mortgage-backed securities 182,263 183,624 Total available-for-sale securities $ 200,578 $ 201,880 Gross realized gains and losses on sales of securities available-for-sale for the years ended December 31, 2020, 2019 and 2018 are as follows: Years Ended December 31, 2020 2019 2018 (In thousands) Gross gains realized $ 2,188 $ 160 $ — Gross losses realized (223 ) (257 ) (281 ) Net gain (loss) realized $ 1,965 $ (97 ) $ (281 ) Proceeds from the sale and redemption of securities available-for-sale totaled $ 96.3 72.2 12.5 Information pertaining to securities with gross unrealized losses at December 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: December 31, 2020 Less Than Twelve Months Over Twelve Months Number of Fair Value Gross Depreciation from Amortized Cost Basis (%) Number of Fair Value Gross Depreciation from Amortized (Dollars in thousands) Government-sponsored mortgage-backed securities 16 $ 27,091 $ 225 0.8 % 2 $ 1,815 $ 78 4.1 % U.S. government guaranteed mortgage-backed securities 3 10,458 75 0.7 2 2,393 111 4.4 Government-sponsored enterprise obligations 2 9,868 111 1.1 — — — — $ 47,417 $ 411 $ 4,208 $ 189 December 31, 2019 Less Than Twelve Months Over Twelve Months Number of Fair Value Gross Depreciation from Amortized Cost Basis (%) Number of Fair Value Gross Depreciation from Amortized (Dollars in thousands) Government-sponsored mortgage-backed securities 17 $ 42,834 $ 122 0.3 % 43 $ 70,581 $ 893 1.2 % U.S. government guaranteed mortgage-backed securities 2 2,783 13 0.5 4 4,688 203 4.2 Corporate bonds 1 1,623 16 1.0 1 3,046 6 0.2 Government-sponsored enterprise obligations 5 14,524 126 0.9 1 1,490 10 0.7 $ 61,764 $ 277 $ 79,805 $ 1,112 During the years ended December 31, 2020 and 2019, the Company did not record any other-than-temporary impairment (“OTTI”) charges on its investments. Management regularly reviews the portfolio for securities with unrealized losses. At December 31, 2020, management attributes the unrealized losses to increases in current market yields compared to the yields at the time the investments were purchased by the Company and not due to credit quality. The process for assessing investments for OTTI may vary depending on the type of security. In assessing the Company's investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise; Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”), Federal Farm Credit Bank (“FFCB”), or Federal Home Loan Bank (“FHLB”). Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company's investments. Management's assessment of other debt securities within the portfolio includes reviews of market pricing, ongoing credit quality evaluations, assessment of the investments' materiality, and duration of the investments' unrealized loss position. A December 31, 2020, the Company's corporate and municipal bond portfolios did not contain any securities below investment grade, as reported by major credit rating agencies. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
LOANS | 3. LOANS Major classifications of loans at the periods indicated were as follows: December 31, December 31, 2020 2019 (In thousands) Commercial real estate $ 833,949 $ 816,886 Residential real estate: Residential 1-4 family 604,719 597,727 Home equity 103,905 102,517 Commercial and industrial Paycheck protection program (“PPP”) loans 167,258 — Commercial and industrial 211,823 248,893 Consumer 5,192 5,747 Total gross loans 1,926,846 1,771,770 Unamortized PPP loan fees (3,050 ) — Unearned premiums and deferred loan fees and costs, net 3,587 4,264 Allowance for loan losses (21,157 ) (14,102 ) Net loans $ 1,906,226 $ 1,761,932 Loan Modifications/Troubled Debt Restructurings The banking regulatory agencies, through an Interagency Statement dated April 7, 2020, have encouraged financial institutions to work “prudently” with borrowers who request loan modifications or deferrals as a result of the economic impacts of COVID-19. Pursuant to Section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. Financial institutions can then suspend the requirements under U.S. GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a TDR, and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting under U.S. GAAP. The Company has adopted this policy election to address COVID-19 loan modification requests that have been received from the earlier of either January 1, 2022 or the 60 th As a result of the COVID-19 pandemic, the Company granted deferred loan payments for impacted commercial, residential and consumer customers who experienced financial hardship due to COVID-19. The loan payment deferrals can be up to 90 days, depending upon the financial needs of each customer. Further deferrals will be re-evaluated on a customer-by-customer basis upon the expiration of the existing deferral period. As of June 30, 2020, the deferred loan payment modifications totaled $ 261 525 15 76.9 47 4.4 The table below breaks out the remaining modifications granted under the CARES Act at December 31, 2020: December 31, 2020 CARES Act Modifications Loan Segment (1)(2) Total Loan % of Total Modification # of Loans % of Balance ($ in millions) Commercial real estate $ 833.9 47.4 % $ 64.0 19 7.7 % Commercial and industrial 211.9 12.0 % 9.3 10 4.4 % Residential real estate 708.6 40.3 % 3.6 16 0.5 % Consumer 5.2 0.3 % 0.0 2 0.7 % Total $ 1,759.6 100.0 % $ 76.9 47 4.4 % The table below breaks out the status of the remaining modifications granted under the CARES Act as of December 31, 2020: Loans Under 1 st Loans Granted Subsequent Modification Total Remaining CARES Act Modifications Loan Segment (1)(2) Modification Balance # of Loans % of Balance Modification # of Loans % of Modification # of Loans % of ($ in millions) Commercial real estate $ 6.2 2 0.7 % $ 57.8 17 6.9 % $ 64.0 19 7.7 % Commercial and industrial 1.1 4 0.5 % 8.2 6 3.9 % 9.3 10 4.4 % Residential real estate 1.2 8 0.2 % 2.4 8 0.3 % 3.6 16 0.5 % Consumer 0.0 1 0.0 % 0.0 1 0.0 % 0.0 2 0.7 % Total $ 8.5 15 0.5 % $ 68.4 32 3.9 % $ 76.9 47 4.4 % (1) Excludes PPP loans and deferred fees (2) Residential includes home equity loans and lines of credit The following table provides some insight into the composition of the Bank's loan portfolio and remaining loan modifications, excluding PPP loans, as of December 31, 2020: Commercial Real Estate % of Total % of % of Apartment 9.2 % 66.5 % — Office 8.4 % 60.3 % — Industrial 6.8 % 49.1 % 2.5 % Retail/Shopping 6.4 % 46.1 % — Hotel 3.2 % 23.0 % 90.5 % Residential non-owner 2.6 % 19.0 % — Auto sales 2.1 % 14.8 % — Mixed-use 2.1 % 15.1 % — Adult care/Assisted living 2.0 % 14.7 % 20.9 % College/school 1.6 % 11.3 % 0.5 % Other 1.2 % 8.3 % 7.6 % Auto service 0.6 % 4.1 % — Gas station/convenience store 0.6 % 4.5 % — Restaurant 0.6 % 4.1 % 7.9 % Total commercial real estate loans 47.4 % 7.7 % Commercial and Industrial Loans % of Total % of % of Manufacturing 2.9 % 20.6 % 0.3 % Wholesale trade 2.0 % 14.2 % — Specialty trade 0.6 % 4.5 % — Heavy and civil engineering construction 0.8 % 5.5 % 2.4 % Educational services 0.6 % 4.4 % 0.5 % Transportation and warehouse 0.7 % 5.0 % 55.3 % Healthcare and social assistance 0.4 % 3.0 % 15.4 % Auto sales 0.4 % 3.0 % — All other C&I (3) 3.6 % 25.5 % 1.3 % Total commercial and industrial loans 12.0 % 4.4 % Residential and Consumer Loans % of Total % of % of Residential real estate 40.3 % 289.8 % 0.5 % Consumer 0.3 % 2.1 % — Total residential and consumer loans 40.6 % 0.5 % Total Portfolio % of Total % of % of Commercial real estate 47.4 % 341.0 % 7.7 % Commercial and industrial 12.0 % 86.7 % 4.4 % Residential real estate 40.3 % 289.8 % 0.5 % Consumer 0.3 % 2.1 % 0.7 % Total 4.4 % (1) Excludes PPP loans of $ 167.3 (2) Modified balances as of December 31, 2020 (Commercial real estate loans $ 64.0 9.3 3.6 (3) Other consists of multiple industries. Although the Bank's loan portfolio contains impacted sectors and the commercial real estate and residential real estate sectors represent more than 100% of the Bank's total risk-based capital, the concentration limits remain acceptable. The Company monitors lending exposure by industry classification to determine potential risk associated with industry concentrations, if any, that could lead to additional credit loss exposure. As stated above, as a result of the COVID-19 pandemic, the Company identified sectors that have been materially impacted including, but not limited to: hospitality, transportation, retail, and restaurants and food service. These sectors potentially carry a higher level of credit risk, as many of these borrowers have incurred a significant negative impact to their businesses resulting from the governmental stay-at-home orders as well as travel limitations. Loans Serviced for Others. The Company has transferred a portion of its originated commercial loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in our accompanying consolidated balance sheets. We continue to service the loans on behalf of the participating lenders. We share, on a pro-rated basis, with participating lenders any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. At December 31, 2020 and December 31, 2019, the Company was servicing commercial loans participated out to various other institutions totaling $ 52.9 24.2 Residential real estate mortgages are originated by the Bank both for its portfolio and for sale into the secondary market. The Bank may sell its loans to institutional investors such as the FHLMC. Under loan sale and servicing agreements with the investor, the Bank generally continues to service the residential real estate mortgages. The Bank pays the investor an agreed upon rate on the loan, which is less than the interest rate received from the borrower. The Bank retains the difference as a fee for servicing the residential real estate mortgages. The Bank capitalizes mortgage servicing rights at their fair value upon sale of the related loans, amortizes the asset over the estimated life of the serviced loan, and periodically assesses the asset for impairment. The significant assumptions used by a third party to estimate the fair value of capitalized servicing rights at December 31, 2020, include weighted average prepayment speed for the portfolio using the Public Securities Association Standard Prepayment Model ( 307 12.05 0.25 83.99 At December 31, 2020 and 2019, the Company was servicing residential mortgage loans owned by investors totaling $ 38.1 48.2 44,000 67,000 89,000 A summary of the activity in the balances of mortgage servicing rights follows: Years Ended December 31, 2020 2019 (In thousands) Balance at the beginning of year: $ 219 $ 286 Amortization (64 ) (67 ) Write-down of mortgage servicing asset to fair value (2 ) — Balance at the end of year $ 153 $ 219 Fair value at the end of year $ 157 $ 345 Allowance for Loan Losses. An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2020, 2019 and 2018 is as follows: Commercial Residential Commercial Consumer Unallocated Total (In thousands) Balance at December 31, 2017 $ 4,712 $ 3,311 $ 2,733 $ 71 $ 4 $ 10,831 Provision (credit) 214 863 660 179 (16 ) 1,900 Charge-offs (35 ) (645 ) (299 ) (171 ) — (1,150 ) Recoveries 369 27 20 56 — 472 Balance at December 31, 2018 $ 5,260 $ 3,556 $ 3,114 $ 135 $ (12 ) $ 12,053 Provision 1,343 618 509 204 1 2,675 Charge-offs (669 ) (320 ) (514 ) (197 ) — (1,700 ) Recoveries 873 66 74 61 — 1,074 Balance at December 31, 2019 $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Provision 6,262 408 939 129 37 7,775 Charge-offs (107 ) (177 ) (543 ) (136 ) — (963 ) Recoveries 58 89 51 45 — 243 Balance at December 31, 2020 $ 13,020 $ 4,240 $ 3,630 $ 241 $ 26 $ 21,157 The following table presents information pertaining to the allowance for loan losses by segment, excluding PPP loans, for the dates indicated: Commercial Residential Commercial Consumer Unallocated Total (In thousands) December 31, 2020 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 13,020 4,240 3,630 241 26 21,157 Total allowance for loan losses $ 13,020 $ 4,240 $ 3,630 $ 241 $ 26 $ 21,157 Impaired loans $ 11,803 $ 4,363 $ 4,439 $ 27 $ — $ 20,632 Non-impaired loans 816,406 701,915 207,002 5,165 — 1,730,488 Impaired loans acquired with deteriorated credit quality 5,740 2,346 382 — — 8,468 Total loans $ 833,949 $ 708,624 $ 211,823 $ 5,192 $ — $ 1,759,588 Commercial Residential Commercial Consumer Unallocated Total (In thousands) December 31, 2019 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 6,807 3,920 3,183 203 (11 ) 14,102 Total allowance for loan losses $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Impaired loans $ 3,457 $ 3,575 $ 588 $ 42 $ — $ 7,662 Non-impaired loans 805,007 694,080 247,499 5,705 — 1,752,291 Impaired loans acquired with deteriorated credit quality 8,422 2,589 806 — — 11,817 Total loans $ 816,886 $ 700,244 $ 248,893 $ 5,747 $ — $ 1,771,770 Past Due and Non-accrual loans. The following tables present an age analysis of past due loans, excluding PPP loans, as of the dates indicated: Balance at December 31, 2020 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Total Current Loans Total Loans Non-Accrual Loans (In thousands) Commercial real estate $ 5,844 $ 3,144 $ 1,256 $ 10,244 $ 823,705 $ 833,949 $ 1,632 Residential real estate: Residential 1,684 360 707 2,751 601,968 604,719 5,353 Home equity 25 — — 25 103,880 103,905 124 Commercial and industrial 166 158 156 480 211,343 211,823 705 Consumer 22 — — 22 5,170 5,192 27 Total loans $ 7,741 $ 3,662 $ 2,119 $ 13,522 $ 1,746,066 $ 1,759,588 $ 7,841 Balance at December 31, 2019 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Total Current Loans Total Loans Non-Accrual Loans (In thousands) Commercial real estate $ 2,784 $ 1,234 $ 2,637 $ 6,655 $ 810,231 $ 816,886 $ 3,843 Residential real estate: Residential 2,574 683 1,433 4,690 593,037 597,727 4,548 Home equity 80 38 149 267 102,250 102,517 445 Commercial and industrial 1,356 645 148 2,149 246,744 248,893 1,003 Consumer 24 — 17 41 5,706 5,747 42 Total loans $ 6,818 $ 2,600 $ 4,384 $ 13,802 $ 1,757,968 $ 1,771,770 $ 9,881 At December 31, 2020 and December 31, 2019, all loans past due 90 days or more were carried as non-accrual. The ratio of non-accrual loans to total loans, excluding PPP loans, was 0.45 0.56 Impaired Loans. The following is a summary of impaired loans by class: Year Ended At December 31, 2020 December 31, 2020 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired Loans (1) (In thousands) Commercial real estate $ 17,543 $ 18,590 $ — $ 18,284 $ 516 Residential real estate 6,544 7,647 — 5,815 66 Home equity 165 207 — 371 5 Commercial and industrial 4,821 7,038 — 4,186 217 Consumer 27 39 — 35 — Total impaired loans $ 29,100 $ 33,521 $ — $ 28,691 $ 804 Year Ended At December 31, 2019 December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired Loans: (1) (In thousands) Commercial real estate $ 11,879 $ 13,914 $ — $ 15,678 $ 595 Residential real estate 5,695 6,383 — 6,550 104 Home equity 469 539 — 415 — Commercial and industrial 1,394 4,192 — 3,359 131 Consumer 42 56 — 48 — Total impaired loans $ 19,479 $ 25,084 $ — $ 26,050 $ 830 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. The majority of impaired loans are included within the non-accrual balances; however, not every loan on non-accrual status has been designated as impaired. Impaired loans include loans that have been modified in a TDR. Impaired loans are individually evaluated and exclude large groups of smaller-balance homogeneous loans, such as residential mortgage loans and consumer loans, which are collectively evaluated for impairment, and loans that are measured at fair value, unless the loan is amended in a TDR. All payments received on impaired loans in non-accrual status are applied to principal. There was no interest income recognized on non-accrual impaired loans during the years ended December 31, 2020 and December 31, 2019. The Company's obligation to fulfill the additional funding commitments on impaired loans is generally contingent on the borrower's compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company's discretion. As of December 31, 2020, we have not committed to lend any additional funds for loans that are classified as impaired. Payments received on impaired loans in accrual status are recorded in accordance with the contractual terms of the loan. Troubled Debt Restructurings. Loans are designated as a TDR when, as part of an agreement to modify the original contractual terms of the loan as a result of financial difficulties of the borrower, the Bank grants the borrower a concession on the terms, that would not otherwise be considered. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, extension of additional credit based on receipt of adequate collateral, or a deferment or reduction of payments (principal or interest) which materially alters the Bank's position or significantly extends the note's maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan's origination. All loans that are modified are reviewed by the Company to identify if a TDR has occurred. All TDR loans are classified as impaired. When we modify loans in a TDR, we measure impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through a specific allowance or a charge-off to the allowance. Non-performing TDRs are included in non-performing loans. Loans modifications classified as TDRs during the twelve months ended December 31, 2020 and 2019 are included in the table below. Twelve Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 Number of Contracts Pre-Modification Post-Modification Number of Contracts Pre-Modification Post-Modification Troubled Debt Restructurings Commercial Real Estate 5 $ 4,576 $ 4,576 2 $ 2,032 $ 2,032 Commercial and Industrial 9 3,806 3,806 2 383 383 Total 14 $ 8,382 $ 8,382 4 $ 2,415 $ 2,415 During the years ended December 31, 2020 and 2019, no no 715,000 Loans Acquired with Deteriorated Credit Quality. The following is a summary of loans acquired with evidence of credit deterioration from Chicopee Savings Bank (“Chicopee”) as of December 31, 2020. Contractual Cash Expected Non- Accretable Accretable Yield Loans Receivable (In thousands) Balance at December 31, 2019 $ 20,689 $ 15,909 $ 4,780 $ 4,092 $ 11,817 Collections (5,339 ) (3,762 ) (1,577 ) (446 ) (3,316 ) Dispositions (1,053 ) (662 ) (391 ) (629 ) (33 ) Balance at December 31, 2020 $ 14,297 $ 11,485 $ 2,812 $ 3,017 $ 8,468 Credit Quality Information. The Company utilizes an eight-grade internal loan rating system for commercial real estate and commercial and industrial loans. Performing residential real estate, home equity and consumer loans are grouped with “Pass” rated loans. Non-performing residential real estate, home equity and consumer loans are monitored individually for impairment and risk rated as “Substandard.” Loans rated 1 – 4 Loans rated 5 Loans rated 6 Loans rated 7 Loans rated 8 On an annual basis, or more often if needed, we formally review the ratings on all commercial real estate and commercial and industrial loans. In addition, management utilizes delinquency reports, the criticized report and other loan reports to monitor credit quality. In addition, at least on an annual basis, the Company contracts with an external loan review company to review the internal credit ratings assigned to loans in the commercial loan portfolio on a pre-determined schedule, based on the type, size, rating, and overall risk of the loan. During the course of their review, the third party examines a sample of loans, including new loans, existing relationships over certain dollar amounts and classified assets. The following table presents our loans by risk rating for the periods indicated: Commercial Real Estate Residential 1-4 family Home Equity Commercial and Industrial Consumer Total (In thousands) December 31, 2020 Pass (Rated 1 – 4) $ 726,751 $ 598,250 $ 103,619 $ 345,967 $ 5,165 $ 1,779,752 Special Mention (Rated 5) 78,207 — — 13,871 — 92,078 Substandard (Rated 6) 28,991 6,469 286 19,243 27 55,016 Total $ 833,949 $ 604,719 $ 103,905 $ 379,081 $ 5,192 $ 1,926,846 Commercial Real Estate Residential 1-4 family Home Equity Commercial and Industrial Consumer Total December 31, 2019 (In thousands) Pass (Rated 1 – 4) $ 766,124 $ 591,911 $ 101,908 $ 222,847 $ 5,705 $ 1,688,495 Special Mention (Rated 5) 23,138 — — 2,796 — 25,934 Substandard (Rated 6) 27,624 5,816 609 23,250 42 57,341 Total $ 816,886 $ 597,727 $ 102,517 $ 248,893 $ 5,747 $ 1,771,770 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | 4. PREMISES AND EQUIPMENT Premises and equipment are summarized as follows: Schedule of premises and equipment December 31, 2020 2019 (In thousands) Land $ 5,661 $ 5,651 Buildings 25,091 24,454 Leasehold improvements 3,112 2,424 Furniture and equipment 19,901 17,720 Total 53,764 50,249 Less: accumulated depreciation and amortization (28,661 ) (26,486 ) Premises and equipment, net $ 25,103 $ 23,763 Depreciation and amortization expense amounted to $ 2.1 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | 5. GOODWILL AND OTHER INTANGIBLES At December 31, 2020 and December 31, 2019, the Company’s goodwill was related to the acquisition of Chicopee in October 2016. There was no goodwill impairment recorded during the years ended December 31, 2020 and 2019. Annually, or more frequently if events or changes in circumstances warrant such evaluation, the Company evaluates its goodwill for impairment. Core Deposit Intangibles In connection with the acquisition of Chicopee, the Bank recorded a core deposit intangible of $ 4.5 twelve years 375,000 376,000 375,000 375,000 1.1 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
Deposits: | |
DEPOSITS | 6. DEPOSITS Deposit accounts, by type, are summarized as follows for the periods indicated: Schedule of deposits accounts by type At December 31, 2020 2019 (In thousands) Demand and interest-bearing checking: Interest-bearing checking accounts $ 94,936 $ 70,182 Demand deposits 541,759 393,303 Savings: Regular accounts 170,309 126,352 Money market accounts 640,790 435,396 Time deposits 590,336 652,631 Total deposits $ 2,038,130 $ 1,677,864 Brokered deposits, which are included within time deposits, totaled $ 55.3 21.5 Time deposits of $250,000 or more totaled $ 179.4 2.8 3.5 The scheduled maturities of time deposits for the periods indicated are as follows: Schedule of maturities of time deposits Years Ended December 31, 2020 2019 (In thousands) 2020 $ — $ 548,559 2021 503,187 73,394 2022 68,920 18,382 2023 12,927 10,996 2024 3,203 1,300 2025 2,099 — Total time deposits $ 590,336 $ 652,631 Interest expense on deposits for the years ended December 31, 2020, 2019 and 2018 is summarized as follows: Schedule of interest expense on deposits Years Ended December 31, 2020 2019 2018 (In thousands) Regular accounts $ 136 $ 146 $ 162 Money market accounts 2,838 2,532 1,911 Time deposits 10,139 14,152 9,270 Interest-bearing checking accounts 387 377 340 Total $ 13,500 $ 17,207 $ 11,683 Cash paid for interest on deposits totaled $ 13.6 17.2 11.7 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | 7. SHORT-TERM BORROWINGS Total borrowing capacity includes borrowing arrangements at the FHLB, the Federal Reserve Bank (“FRB”), and borrowing arrangements with correspondent banks. The Company is a member of the FHLB and uses borrowings as an additional source of funding to finance the Company’s lending and investing activities and to provide liquidity for daily operations. FHLB advances also provide more pricing and option alternatives for particular asset/liability needs. The FHLB provides a central credit facility primarily for member institutions. As an FHLB member, the Company is required to own capital stock of the FHLB, calculated periodically based primarily on its level of borrowings from the FHLB. FHLB borrowings are secured by certain securities from the Company’s investment portfolio not otherwise pledged as well as certain residential real estate and commercial real estate loans. Advances are made under several different credit programs with different lending standards, interest rates and range of maturities. This relationship is an integral component of the Company’s asset-liability management program. At December 31, 2020, the Bank had $ 476.8 The Company also has an overnight Ideal Way line of credit with the FHLB for $ 9.5 The Company has an available line of credit of $ 16.1 The Company also has pre-established, non-collateralized overnight borrowing arrangements with large national and regional correspondent banks to provide additional overnight and short-term borrowing capacity for the Company. The Company has a $ 15 50 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 8. LONG-TERM DEBT FHLB Advances. The following advances are collateralized by a blanket lien on our residential real estate loans and certain eligible commercial real estate loans. Amount Weighted Average Rate 2020 2019 2020 2019 (In thousands) Fixed-rate advances maturing: 2020 $ — $ 127,983 — % 2.1 % 2021 42,388 51,084 1.5 2.3 2022 14,284 23,596 0.4 1.9 2023 532 628 — 0.2 2024 646 2,224 — 0.9 Total long-term advances $ 57,850 $ 205,515 1.2 % 2.1 % Cash paid for interest on long-term debt totaled $ 3.6 4.4 4.2 |
STOCK PLANS AND EMPLOYEE STOCK
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN | 9. STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN Stock Options. Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2019 218,214 $ 6.42 2.62 $ 695 Exercised (7,239 ) 5.81 0.12 7 Outstanding at December 31, 2020 210,975 $ 6.46 1.67 $ 90 Exercisable at December 31, 2020 210,975 $ 6.46 1.67 $ 90 Cash received for options exercised during the years ended December 31, 2020, 2019 and 2018 was $ 43,000 106,000 114,000 Restricted Stock Awards. In May 2014, the Company’s shareholders approved the 2014 Omnibus Incentive Plan, a stock-based compensation plan (the “RSA Plan”). Under the RSA Plan, up to 516,000 In January 2015, there were 48,560 five years On an annual basis, the Compensation Committee (the “Committee”) approves long-term incentive awards out of the RSA Plan, whereby shares will be granted to eligible participants of the Company that are nominated by the Chief Executive Officer and approved by the Committee, with vesting over a three-year one-year In May 2017, there were 89,042 89,042 55,159 21,276 one year 33,883 three-year 33,883 three-year 50 100 150 As a result of the Tax Cuts and Jobs Act of 2017, the return on equity performance metrics were adjusted to incorporate the impact and benefits of the corporate tax rate reductions thereunder. The original and adjusted threshold, target and maximum metrics for 2019 under the 2017 grants are as follows: Return on Equity December 31, 2019 Threshold Target Maximum Original 6.50 % 7.20 % 7.90 % Adjusted 7.09 % 7.85 % 8.61 % As of December 31, 2019, the three-year performance period for the 2017 grants ended. Performance-based shares were earned based on the Company achieving the annual 2017 performance metrics adjusted threshold, target or maximum metrics at the end of each year of the three-year performance period. Of the original 33,883 15,898 16,803 In January 2018, there were 83,812 83,812 50,852 17,908 one year 32,944 three-year 32,960 three-year The threshold, target and stretch metrics under the 2018 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2018 6.30 % 6.80 % 7.20 % December 31, 2019 6.85 % 7.35 % 7.75 % December 31, 2020 7.40 % 7.90 % 8.30 % Eligible participants will be able to earn between 50 100 150 In February 2019, there were 108,718 108,718 64,496 20,262 one year 44,234 three-year 44,222 three-year The threshold, target and stretch metrics under the 2019 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2019 5.75 % 6.13 % 7.00 % December 31, 2020 6.00 % 6.75 % 7.75 % December 31, 2021 6.25 % 7.00 % 8.00 % Eligible participants will be able to earn between 50 100 150 In February 2020, there were 120,053 120,053 69,898 19,760 one year 50,138 three-year 50,155 50 three-year The threshold, target and stretch metrics under the 2020 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2020 5.00 % 5.48 % 6.00 % December 31, 2021 5.62 % 6.24 % 6.86 % December 31, 2022 6.29 % 6.99 % 7.69 % Earnings Per Share Metrics Performance Period Ending Threshold Target Stretch Three-year Cumulative Diluted Earnings Per Share $ 1.50 $ 1.65 $ 1.80 Eligible participants will be able to earn between 50 100 150 The fair market value of shares awarded is based on the market price at the grant date, recorded as unearned compensation and amortized over the applicable vesting period. Performance-based metrics are monitored on a quarterly basis in order to compare actual results to the performance metric, with any necessary adjustments being recognized through share-based compensation expense and unearned compensation. In December 2020, there were 25,927 A summary of the status of restricted stock awards at December 31, 2020 and 2019 is presented below: Shares Weighted Average Balance at December 31, 2019 172,866 $ 10.07 Shares granted 145,980 8.69 Shares forfeited (30,193 ) 9.96 Shares vested (109,955 ) 9.00 Balance at December 31, 2020 178,698 $ 9.63 Shares Weighted Average Balance at December 31, 2018 155,712 $ 9.87 Shares granted 108,718 9.77 Shares vested (89,722 ) 9.36 Shares forfeited (1,842 ) 9.77 Balance at December 31, 2019 172,866 $ 10.07 We recorded total expense for restricted stock awards of $ 834,000 773,000 845,000 844,000 (23,000) 21,000 24,000 966,000 1.6 Employee Stock Ownership Plan (“ESOP”). 21 1,000 8 1,305,359 In January 2007, as part of the second-step stock conversion, we provided an additional loan to the ESOP Trust which was used to purchase 4.0 736,000 18,400,000 8.0 At December 31, 2020, the remaining principal balances are payable as follows: Years Ending December 31, Amount (In thousands) 2021 $ 447 2022 447 2023 447 2024 447 2025 447 Thereafter 2,795 Total $ 5,030 We have committed to make contributions to the ESOP sufficient to support the debt service of the loans. The loans are secured by the shares purchased, which are held in a suspense account for allocation among the participants as the loans are paid. Total compensation expense applicable to the ESOP amounted to $ 551,000 834,000 960,000 Shares held by the ESOP include the following at December 31, 2020 and 2019: 2020 2019 Allocated 1,078,109 989,258 Committed to be allocated 85,101 88,117 Unallocated 526,906 612,007 Total 1,690,116 1,689,382 Cash dividends declared and received on allocated shares are allocated to participants and charged to retained earnings. Cash dividends declared and received on unallocated shares are held in suspense and are applied to repay the outstanding debt of the ESOP. The fair value of unallocated shares was $ 3.6 million 5.9 million |
RETIREMENT PLANS AND EMPLOYEE B
RETIREMENT PLANS AND EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS AND EMPLOYEE BENEFITS | 10. RETIREMENT PLANS AND EMPLOYEE BENEFITS Pension Plan 1,000 The following table provides information for the Plan Years Ended December 31, 2020 2019 2018 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 36,158 $ 27,309 $ 29,345 Service cost 1,396 1,095 1,269 Interest 1,162 1,134 1,012 Actuarial loss (gain) 9,690 7,074 (3,887 ) Benefits paid (814 ) (454 ) (430 ) Benefit obligation at end of year 47,592 36,158 27,309 Change in plan assets: Fair value of plan assets at beginning of year 22,787 18,393 19,215 Actual return (loss) on plan assets 3,191 3,923 (1,192 ) Employer contribution 1,100 925 800 Benefits paid (814 ) (454 ) (430 ) Fair value of plan assets at end of year 26,264 22,787 18,393 Funded status and accrued benefit at end of year $ (21,328 ) $ (13,371 ) $ (8,916 ) Accumulated benefit obligation at end of year $ 35,755 $ 27,634 $ 21,449 The following actuarial assumptions were used in determining the pension benefit obligation December 31, 2020 2019 Discount rate 2.50 % 3.25 % Rate of compensation increase 4.00 4.00 Net pension cost includes the following components 2020 2019 2018 (In thousands) Service cost $ 1,396 $ 1,095 $ 1,269 Interest cost 1,162 1,134 1,012 Expected return on assets (1,526 ) (1,233 ) (1,387 ) Amortization of actuarial loss 421 133 170 Net periodic pension cost $ 1,453 $ 1,129 $ 1,064 The following actuarial assumptions were used in determining the net periodic pension cost 2020 2019 2018 Discount rate 3.25 % 4.25 % 3.60 % Expected return on plan assets 7.00 7.00 7.50 Rate of compensation increase 4.00 4.00 4.00 The following is a summary of the Plan’s investments 2020 2019 (In thousands) Pooled separate investment accounts: Fixed income $ 13,332 $ 11,033 Large U.S. equity 6,763 5,458 International equity 3,960 3,528 Small/mid U.S. equity 1,131 975 Balanced/asset allocation — 457 Other 1,078 1,336 Total $ 26,264 $ 22,787 Pooled separate accounts are valued at the Net Asset Value (“NAV”) of units held by the Plan at year end. The NAV is used as a practical expedient to estimate fair value. This practical expedient would not be used if it was determined to be probable that the funds will sell the underlying investments for an amount different from the reported NAV. Participant transactions (purchases and sales) may occur daily. The preceding method described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan administrators believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table summarizes the investments for which fair value is measured using NAV per share as a practical expedient for the years ended December 31, 2020 and 2019. Fair Value Unfunded Redemption Redemption Notice Period (In thousands) December 31, 2020 $ 26,264 n/a Daily 1 day December 31, 2019 $ 22,787 n/a Daily 1 day The defined benefit plan offers a mixture of fixed income, equity and real assets as the underlying investment structure for its retirement structure for the pension plan. The target allocation mix for the pension plan for 2019 was an equity-based investment deployment of 50 50 We estimate that the benefits to be paid from the pension plan Year Benefit Payments to Participants (In thousands) 2021 $ 1,620 2022 1,955 2023 2,180 2024 2,497 2025 5,481 In aggregate for 2026 – 2030 16,900 We have not yet determined the amount of the contribution we expect to make to the plan during the fiscal year ending December 31, 2021. 401(k) Defined Contribution Plan. The Company has a 401(k) defined contribution employee benefit plan. The 401(k) plan allows eligible employees to contribute a percentage of their earnings to the plan. A portion of the employee contribution, as determined by the Compensation Committee of the Board of Directors, is matched by the Company. In 2020, 2019 and 2018, the Company’s percentage match was 50 6 The Company’s expense for the 401(k) plan match was $ 468,000 423,000 398,000 |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | 11. DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our assets and liabilities and the use of derivative financial instruments. Specifically, we entered into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to certain variable rate loan assets and variable rate borrowings. The following table presents information about interest rate swaps at December 31, 2020 and December 31, 2019: December 31, 2020 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Non-hedging derivatives: Loan-level swaps – dealer $ 13,554 12.5 1.97 % 3.74 % $ (1,440 ) Loan-level swaps – borrower 13,554 12.5 3.74 % 1.97 % 1,440 Forward starting loan-level swaps - dealer 22,390 11.5 114 Forward starting loan-level swaps - borrower 22,390 11.5 (114 ) Total $ 71,888 $ 0 December 31, 2019 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB borrowings $ 35,000 2.7 1.89 % 3.54 % $ (1,798 ) Non-hedging derivatives: Loan-level swaps – dealer 6,484 13.2 3.45 % 3.79 % (149 ) Loan-level swaps – borrower 6,484 13.2 3.79 % 3.45 % 149 Total $ 47,968 $ (1,798 ) At December 31, 2020, the Company had $ 71.9 13 35 Cash Flow Hedges of Interest Rate Risk. The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, we entered into interest rate swaps as part of our interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for our making fixed payments. For derivatives designated as cash flow hedges, the changes in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings. We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of six years (excluding forecasted payment of variable interest on existing financial instruments). Non-hedging Derivatives. Derivatives not designated as hedges are not speculative but rather result from a service the Company provides to certain customers. The Company executes loan level derivative products such as interest-rate swap agreements with commercial banking customers to aid them in managing their interest-rate risk by converting floating-rate loan payments to fixed-rate loan payments. The Company concurrently enters into offsetting swaps with a third party financial institution, effectively minimizing its net risk exposure resulting from such transactions. The third-party financial institution exchanges the customer’s fixed-rate loan payments for floating-rate loan payments. As the interest-rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings. Fair Values of Derivative Instruments on the Balance Sheet. The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of December 31, 2020 and December 31, 2019. December 31, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives not designated as hedging instruments: Interest rate swap – with customers Other Assets $ 1,440 $ 114 Interest rate swap – with counterparties 114 Other Liabilities 1,440 Total derivatives not designated as hedging instruments $ 1,554 $ 1,554 December 31, 2019 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps – cash flow hedge Other Assets $ — Other Liabilities $ 1,798 Total derivatives designated as hedging instruments $ — $ 1,798 Derivatives not designated as hedging instruments: Interest rate swap – with customers Other Assets $ 149 $ — Interest rate swap – with counterparties — Other Liabilities 149 Total derivatives not designated as hedging instruments $ 149 $ 149 Effect of Derivative Instruments in the Consolidated Statements of Net Income and Changes in Shareholders’ Equity. The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated: Amount of Gain (Loss) Recognized in OCI on Derivative Twelve Months Ended December 31, 2020 2019 2018 (In thousands) Interest rate swaps $ 1,099 $ (900 ) $ 442 Amounts reported in accumulated other comprehensive loss related to these derivatives are reclassified to interest expense as interest payments are made on our designated rate sensitive liabilities. The table below presents the amount reclassified from accumulated other comprehensive loss into net income for interest rate swaps and termination fees: Amount of Gain Reclassified from OCI into Expense (Effective Portion) Twelve Months Ended December 31, 2020 2019 2018 (In thousands) Interest rate swaps $ 1,516 $ 1,455 $ 1,520 During the next 12 months, we estimate that $ 569,000 Credit-risk-related Contingent Features By using derivative financial instruments, we expose ourselves to credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative is negative, we owe the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that we believe to be creditworthy and by limiting the amount of exposure to each counterparty. We have agreements with our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as well capitalized, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements. Certain of our agreements with our derivative counterparties contain provisions where if a formal administrative action by a federal or state regulatory agency occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. At December 31, 2020 and December 31, 2019, we had a net liability position of $ 1.5 1.8 1.3 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | 12. LEASES The Company determines if an arrangement is a lease at inception. Effective in 2019, operating leases are included within other assets and other liabilities in our consolidated balance sheets. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. Additionally, the Company has elected the practical expedient whereby expired leases, existing operating lease classifications and initial direct costs will not be reassessed at inception. The Company has operating leases for certain of our banking offices and ATMs. Our leases have remaining lease terms of less than one year eighteen years five-year fifteen years The components of lease expense were as follows Twelve Months Ended December 31, 2020 2019 (In thousands) Amortization of ROU assets $ 1,191 $ 972 Interest on lease liabilities 269 244 Operating lease cost $ 1,460 $ 1,216 Supplemental cash flow information related to leases was as follows Twelve Months Ended December 31, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,397 $ 1,172 ROU assets obtained in exchange for lease obligations: Operating leases 4,332 600 Supplemental balance sheet information related to leases was as follows December 31, 2020 December 31, 2019 (In thousands) Operating lease ROU assets $ 9,939 $ 6,795 Operating lease liabilities $ 10,047 $ 6,840 The weighted average remaining lease term for our operating leases was 10.7 2.82 Maturities of the Company’s operating lease liabilities were as follows Years Ending December 31, 2021 $ 1,482 2022 1,414 2023 1,172 2024 1,108 2025 1,024 Thereafter 5,629 Total lease payments 11,829 Less imputed interest (1,782 ) Total $ 10,047 |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital | |
REGULATORY CAPITAL | 13. REGULATORY CAPITAL 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 discretionary, actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to savings and loan holding companies. Federal banking regulations require the Company and the Bank to maintain minimum amounts and ratios of total, common equity Tier 1, Tier 1 and total capital to risk-weighted assets and Tier 1 capital to average assets, as set forth in the table below. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. At December 31, 2020, we exceeded each of the applicable regulatory capital requirements including the capital conservation buffer. As of December 31, 2020, the most recent notification from the Office of Comptroller of the Currency categorized the Bank as “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized,” the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes would change our category. Our actual capital ratios of December 31, 2020 and December 31, 2019 are also presented in the following table Actual Minimum For Capital Adequacy Purpose Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2020 Total Capital (to Risk Weighted Assets): Consolidated $ 244,158 14.65 % $ 133,336 8.00 % N/A N/A Bank 231,531 13.91 133,149 8.00 $ 166,436 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 223,320 13.40 100,002 6.00 N/A N/A Bank 210,722 12.66 99,862 6.00 133,149 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 223,320 13.40 75,002 4.50 N/A N/A Bank 210,722 12.66 74,896 4.50 108,183 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 223,320 9.34 95,606 4.00 N/A N/A Bank 210,722 8.83 95,409 4.00 119,261 5.00 December 31, 2019 Total Capital (to Risk Weighted Assets): Consolidated $ 240,226 13.93 % $ 137,934 8.00 % N/A N/A Bank 227,678 13.22 137,773 8.00 $ 172,217 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 226,124 13.11 103,451 6.00 N/A N/A Bank 213,576 12.40 103,330 6.00 137,773 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 226,124 13.11 77,588 4.50 N/A N/A Bank 213,576 12.40 77,498 4.50 111,941 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 226,124 10.45 86,593 4.00 N/A N/A Bank 213,576 9.88 86,500 4.00 108,125 5.00 The following is a reconciliation of our GAAP capital to regulatory Tier 1, Common Equity Tier 1 and total capital December 31, 2020 2019 (In thousands) Consolidated GAAP capital $ 226,640 $ 232,024 Net unrealized (gains) losses on available-for-sale securities, net of tax (963 ) 322 Unrealized loss on defined benefit pension plan, net of tax 11,750 6,275 Accumulated net loss on cash flow hedges, net of tax 492 2,371 Goodwill (12,487 ) (12,487 ) Intangible assets, net of associated deferred tax liabilities (2,112 ) (2,381 ) Tier 1 and Common Equity Tier 1 capital 223,320 226,124 Allowance for loan losses 20,838 14,102 Total regulatory capital $ 244,158 $ 240,226 On January 29, 2019, the Board of Directors authorized an additional stock repurchase program (the “2019 Plan”) under which the Company may purchase up to 2,814,200 10 1.3 5 264,630 6.58 1,391,496 1,035,370 We are subject to dividend restrictions imposed by various regulators, including a limitation on the total of all dividends that the Bank may pay to the Company in any calendar year, to an amount that shall not exceed the Bank’s net income for the current year, plus its net income retained for the two previous years, without regulatory approval. At December 31, 2020 and 2019, the Bank had no retained earnings available for payment of dividends without prior regulatory approval. In addition, the Bank may not declare or pay dividends on, and we may not repurchase, any of our shares of common stock if the effect thereof would cause shareholders’ equity to be reduced below applicable regulatory capital maintenance requirements or if such declaration, payment or repurchase would otherwise violate regulatory requirements. The Bank will be prohibited from paying cash dividends to the Company to the extent that any such payment would reduce the Bank’s capital below required capital levels. Accordingly, $ 133.1 137.8 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 14. INCOME TAXES Income taxes consist of the following: Years Ended December 31, 2020 2019 2018 (In thousands) Current tax provision: Federal $ 3,793 $ 3,082 $ 3,910 State 1,579 1,450 1,586 Total 5,372 4,532 5,496 Deferred tax benefit: Federal (1,639 ) (348 ) (542 ) State (792 ) (332 ) (254 ) Total (2,431 ) (680 ) (796 ) Total $ 2,941 $ 3,852 $ 4,700 The differences between the statutory federal income tax and the effective tax are summarized below Years Ended December 31, 2020 2019 2018 (In thousands) Statutory federal income tax $ 2,973 $ 3,612 $ 4,433 Increase (decrease) resulting from: State taxes, net of federal tax benefit 622 883 1,052 Tax exempt income (337 ) (388 ) (370 ) Bank-owned life insurance (BOLI) (380 ) (378 ) (533 ) Option exercise tax shortfall (benefit) 1 (16 ) (11 ) Other, net 62 139 129 Effective tax $ 2,941 $ 3,852 $ 4,700 Cash paid for income taxes for the years ended December 31, 2020, 2019 and 2018 was $ 5.8 4.2 3.7 The tax effects of each item that gives rise to deferred taxes are as follows December 31, 2020 2019 (In thousands) Deferred tax assets: Allowance for loan losses $ 5,947 $ 3,964 Defined benefit plan 4,594 2,453 Lease liability 2,824 1,923 Employee benefit and share-based compensation plans 2,251 2,223 Non-accrual interest 224 348 Net unrealized loss on derivative and hedging activity 192 928 Net unrealized loss on securities available-for-sale — 71 Purchased mortgage servicing rights 191 242 Other 619 776 Gross deferred tax assets 16,842 12,928 Deferred tax liabilities: Lease right-of-use asset (2,794 ) (1,910 ) Fixed asset depreciation (502 ) (447 ) Purchase accounting adjustments, net (494 ) (283 ) Net unrealized gain on securities available-for-sale (339 ) - Deferred loan fees (121 ) (1,105 ) Other (4 ) (22 ) Gross deferred tax liabilities (4,254 ) (3,767 ) Net deferred tax asset $ 12,588 $ 9,161 The federal income tax reserve for loan losses at the Bank’s base year is $ 9.4 150 2.6 We do not have any uncertain tax positions at December 31, 2020 or 2019 which require accrual or disclosure. We record interest and penalties as part of income tax expense. No interest was recorded for the years ended December 31, 2020 and 2019, and no penalties were recorded for the years ended December 31, 2020, 2019 and 2018. Our income tax returns are subject to review and examination by federal and state tax authorities. We are currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2017 through 2020. The years open to examination by state taxing authorities vary by jurisdiction; however, no years prior to 2017 are open. |
TRANSACTIONS WITH DIRECTORS AND
TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS | 15. TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS We have had, and expect to have in the future, loans with our directors and executive officers including their affiliates. Such loans, in our opinion, do not include more than the normal risk of collectability or other unfavorable features. Following is a summary of activity for such loan Years Ended December 31, 2020 2019 (In thousands) Balance at beginning of year $ 520 $ 955 Principal distributions 389 481 Repayments of principal (214 ) (620 ) Change in related party status — (296 ) Balance at end of year $ 695 $ 520 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES In the normal course of business, various commitments and contingent liabilities are outstanding, such as standby letters of credit and commitments to extend credit with off-balance-sheet risk that are not reflected in the consolidated financial statements. Financial instruments with off-balance-sheet risk involve elements of credit, interest rate, liquidity and market risk. We do not anticipate any significant losses as a result of these transactions. The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: December 31, 2020 2019 (In thousands) Commitments to extend credit: Unused lines of credit $ 325,567 $ 264,224 Loan commitments 69,966 74,133 Existing construction loan agreements 44,088 32,037 Standby letters of credit 20,821 11,348 We use the same credit policies in making commitments and conditional obligations as for on balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Standby letters of credit are written conditional commitments issued by us that guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. At December 31, 2020, outstanding commitments to extend credit totaled $ 460.4 million 86.5 million 2.45 18.00 373.9 million 381.7 million 48.3 million 2.45 18.00 333.4 million We also have risk participation agreements (“RPAs”) with another financial institution. The RPAs are a guarantee to share credit risk associated with an interest rate swap on participation loans in the event of counterparty default. As such, we accept a portion of the credit risk in order to participate in the loans and we receive a one-time fee. The interest rate swap is collateralized (generally by real estate or business assets) by us and the third party, which limits the credit risk associated with the RPAs. Per the terms of the RPAs, we must pledge collateral equal to our exposure for the interest rate swap. We monitor overall collateral as part of our off-balance sheet liability analysis, and at December 31, 2020, believe sufficient collateral is available to cover potential swap losses. At December 31, 2020, we had no off-balance sheet exposure to RPAs. In the ordinary course of business, we are party to various legal proceedings, none of which, in our opinion, will have a material effect on our consolidated financial position or results of operations. Investment Commitments. The Bank is a limited partner in a Small Business Investment Company (“SBIC”) and committed to contribute capital of $ 3 2.4 million 600,000 Employment and change of control agreements. We have entered into employment and change of control agreements with certain senior officers. The initial term of the employment agreements is for three years subject to separate one-year extensions as approved by the Board of Directors at the end of each applicable fiscal year. Each employment agreement provides for minimum annual salaries, discretionary cash bonuses and other fringe benefits as well as severance benefits upon certain terminations of employment that are not for cause. The change of control agreements expire one year following a notice of non-extension and only provide for severance benefits upon certain terminations of employment that are not for cause and that are related to a change of control of the Company or the Bank. |
FAIR VALUE OF ASSETS AND LIABLI
FAIR VALUE OF ASSETS AND LIABLITIES | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABLITIES | 17. FAIR VALUE OF ASSETS AND LIABLITIES Determination of Fair Value. We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for our various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Methods and assumptions for valuing our financial instruments are set forth below. Estimated fair values are calculated based on the value without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications or estimated transaction cost. Securities. Interest rate swaps. Assets and Liabilities Measured at Fair Value on a Recurring Basis. Assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2020 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale $ — $ 201,880 $ — $ 201,880 Marketable equity securities 11,968 — — 11,968 Interest rate swaps — 1,554 — 1,554 Total assets $ 11,968 $ 203,434 $ — $ 215,402 Liabilities: Interest rate swaps $ — $ 1,554 $ — $ 1,554 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale $ — $ 227,708 $ — $ 227,708 Marketable equity securities 6,737 — — 6,737 Interest rate swaps — 149 — 149 Total assets $ 6,737 $ 227,857 $ — $ 234,594 Liabilities: Interest rate swaps $ — $ 1,947 $ — $ 1,947 There were no transfers to or from Level 1 and 2 for assets measured at fair value on a recurring basis during the years ended December 31, 2020 and 2019. Assets Measured at Fair Value on a Non-recurring Basis. We may also be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following table summarizes the fair value hierarchy used to determine the carrying values of the related assets as of December 31, 2020 and 2019. Year Ended At December 31, 2020 December 31, 2020 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired Loans $ — $ — $ 150 $ 13 Year Ended At December 31, 2019 December 31, 2019 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired Loans $ — $ — $ 1,836 $ 1,327 The amount of impaired loans represents the carrying value, and net of the related write-down or valuation allowance of impaired loans for which adjustments are based on the estimated fair value of the underlying collateral. The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on real estate appraisals performed by independent licensed or certified appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management will discount appraisals as deemed necessary based on the date of the appraisal and new information deemed relevant to the valuation. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The resulting losses were recognized in earnings through the provision for loan losses. There were no liabilities measured at fair value on a non-recurring basis at December 31, 2020 and 2019. Summary of Fair Values of Financial Instruments. The estimated fair values of our financial instruments are as follows: December 31, 2020 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 87,444 $ 87,444 $ — $ — $ 87,444 Securities available-for-sale 201,880 — 201,880 — 201,880 Marketable equity securities 11,968 11,968 — — 11,968 Federal Home Loan Bank of Boston and other restricted stock 5,160 — — 5,160 5,160 Loans - net 1,906,226 — — 1,900,750 1,900,750 Accrued interest receivable 8,477 — — 8,477 8,477 Mortgage servicing rights 153 — 157 — 157 Derivative asset 1,554 — 1,554 — 1,554 Liabilities: Deposits 2,038,130 — — 2,040,293 2,040,293 Long-term debt 57,850 — 57,945 — 57,945 Accrued interest payable 124 — — 124 124 Derivative liabilities 1,554 — 1,554 — 1,554 December 31, 2019 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 24,741 $ 24,741 $ — $ — $ 24,741 Securities available-for-sale 227,708 — 227,708 — 227,708 Marketable equity securities 6,737 6,737 — — 6,737 Federal Home Loan Bank of Boston and other restricted stock 14,477 — — 14,477 14,477 Loans - net 1,761,932 — — 1,729,150 1,729,150 Accrued interest receivable 5,313 — — 5,313 5,313 Mortgage servicing rights 219 — 345 — 345 Derivative asset 149 — 149 — 149 Liabilities: Deposits 1,677,864 — — 1,679,851 1,679,851 Short-term borrowings 35,000 — 35,004 — 35,004 Long-term debt 205,515 — 205,850 — 205,850 Accrued interest payable 525 — — 525 525 Derivative liabilities 1,947 — 1,947 — 1,947 Limitations |
SEGMENT
SEGMENT | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT | 18. SEGMENT The Company, through its bank subsidiary, provides a broad range of financial services to individuals and companies primarily in western Massachusetts and northern Connecticut. These services include commercial lending, residential lending and consumer lending, checking, savings and time deposits, cash management, and wealth management. Substantially all of the Company's revenues, profits, and assets are derived by the Bank from banking products and services. The Company did not have any reportable segments for the years ended December 31, 2020, 2019 or 2018. |
CONDENSED PARENT COMPANY FINANC
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS | 19. CONDENSED PARENT COMPANY FINANCIAL STATEMENTS The condensed balance sheets of the parent company are as follows: December 31, 2020 2019 (In thousands) ASSETS: Cash equivalents $ 31 $ 158 Investment in subsidiaries 214,042 219,476 ESOP loan receivable 5,030 5,717 Other assets 13,002 12,650 TOTAL ASSETS 232,105 238,001 LIABILITIES: ESOP loan payable 5,030 5,717 Other liabilities 435 260 EQUITY 226,640 232,024 TOTAL LIABILITIES AND EQUITY $ 232,105 $ 238,001 The condensed statements of net income for the parent company are as follows: Years Ended December 31, 2020 2019 2018 (In thousands) INCOME: Dividends from subsidiaries $ 15,812 $ 25,063 $ 28,712 ESOP loan interest income 457 514 571 Other income 1 1 1 Total income 16,270 25,578 29,284 OPERATING EXPENSE: Salaries and employee benefits 1,420 1,647 1,837 ESOP interest 457 514 571 Other expenses 406 352 286 Total operating expense 2,283 2,513 2,694 Income before equity in undistributed income of subsidiaries and income taxes 13,987 23,065 26,590 Equity in undistributed loss of subsidiaries (3,123 ) (10,203 ) (10,717 ) Net income before taxes 10,864 12,862 15,873 Income tax benefit (351 ) (487 ) (535 ) Net income $ 11,215 $ 13,349 $ 16,408 The condensed statements of cash flows of the parent company are as follows: Years Ended December 31, 2020 2019 2018 (In thousands) OPERATING ACTIVITIES: Net income $ 11,215 $ 13,349 $ 16,408 Equity in undistributed loss of subsidiaries 3,123 10,203 10,717 Change in other liabilities (672 ) (668 ) (610 ) Change in other assets 335 216 (919 ) Other, net 1,385 1,607 1,805 Net cash provided by operating activities 15,386 24,707 27,401 INVESTING ACTIVITIES: Purchase of securities (122 ) (140 ) (127 ) Sales of securities 122 140 127 Net cash provided by investing activities — — — FINANCING ACTIVITIES: Cash dividends paid (5,037 ) (5,274 ) (4,641 ) Common stock repurchased (10,519 ) (19,455 ) (22,920 ) Issuance of common stock in connection with stock option exercises 43 106 114 Net cash used in financing activities (15,513 ) (24,623 ) (27,447 ) NET CHANGE IN CASH AND CASH EQUIVALENTS (127 ) 84 (46 ) CASH AND CASH EQUIVALENTS Beginning of year 158 74 120 End of year $ 31 $ 158 $ 74 Supplemental cash flow information: Net change in due to broker for common stock repurchased $ 160 $ (221 ) $ (83 ) |
SUMMARY OF QUARTERLY FINANCIAL
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 20. SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following tables present a summary of our quarterly financial information for the periods indicated. 2020 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest and dividend income $ 20,390 $ 20,330 $ 20,447 $ 21,708 Interest expense (1) 5,837 5,238 4,457 2,913 Net interest and dividend income 14,553 15,092 15,990 18,795 Provision for loan losses 2,100 2,450 2,725 500 Gain on available-for-sale securities, net 23 13 1,929 — Unrealized gains (losses) on marketable equity securities, net 102 35 (4 ) (24 ) Swap fee income 185 — 397 72 Loss on interest rate swap termination — — (2,353 ) — Other non-interest income 2,215 2,039 2,208 2,414 Non-interest income 2,525 2,087 2,177 2,462 Non-interest expense (2) 12,314 12,245 12,853 14,338 Income before income taxes 2,664 2,484 2,589 6,419 Income tax provision 584 463 488 1,406 Net income $ 2,080 $ 2,021 $ 2,101 $ 5,013 Basic earnings per share $ 0.08 $ 0.08 $ 0.08 $ 0.20 Diluted earnings per share $ 0.08 $ 0.08 $ 0.08 $ 0.20 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest and dividend income $ 20,060 $ 20,215 $ 20,804 $ 21,037 Interest expense 5,734 6,014 6,276 6,113 Net interest and dividend income 14,326 14,201 14,528 14,924 Provision for loan losses 50 350 1,275 1,000 Gain (loss) on available-for-sale securities, net 35 (96 ) 49 (85 ) Unrealized gains (losses) on marketable equity securities, net 70 79 45 (29 ) Swap fee income 8 206 55 205 Other non-interest income 2,058 2,328 2,462 2,315 Non-interest income 2,171 2,517 2,611 2,406 Non-interest expense 12,023 12,140 11,740 11,905 Income before income taxes 4,424 4,228 4,124 4,425 Income tax provision 994 971 899 988 Net income $ 3,430 $ 3,257 $ 3,225 $ 3,437 Basic earnings per share $ 0.13 $ 0.13 $ 0.12 $ 0.13 Diluted earnings per share $ 0.13 $ 0.12 $ 0.12 $ 0.13 (1) The decrease in interest expense for the three months ended December 31, 2020 was due to a decrease of $ 933,000 611,000 (2) The increase in non-interest expense for the three months ended December 31, 2020 was primarily driven by a $ 987,000 50 (1) The decrease in interest expense for the three months ended December 31, 2020 was due to a decrease of $933,000 in interest expense on deposits and $611,000 in interest expense on FHLB borrowings, both resulting from repricing liabilities in the continued low-rate environment as well as the pay down of high-rate FHLB borrowings. (2) The increase in non-interest expense for the three months ended December 31, 2020 was primarily driven by a $987,000 expense resulting from the early extinguishment of $50.0 million in FHLB borrowings. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The Bank operates 25 |
Wholly-owned Subsidiaries of the Bank | Wholly-owned Subsidiaries of the Bank |
Principles of Consolidation | Principles of Consolidation |
Estimates | Estimates |
Reclassifications | Reclassifications |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Securities and Mortgage-Backed Securities | Securities and Mortgage-Backed Securities Realized gains and losses on sales of securities and mortgage-backed securities are computed using the specific identification method and are included in non-interest income on the trade date. The amortization of premiums and accretion of discounts is determined by using the level yield method to the maturity date. |
Derivatives | Derivatives |
Other-than-Temporary Impairment of Securities | Other-than-Temporary Impairment of Securities |
Fair Value Hierarchy | Fair Value Hierarchy Level 1: Level 2: Level 3: |
Federal Home Loan Bank of Boston Stock | Federal Home Loan Bank of Boston Stock |
Loans Held for Sale | Loans Held for Sale |
Loans Receivable | Loans Receivable |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. General component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate (includes one-to-four family and home equity), commercial real estate, commercial and industrial, and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: trends in delinquencies and non-performing loans; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; and national and local economic trends and industry conditions. Beginning in March 2020, the Bank added a new qualitative factor category to the allowance calculation – “Economic Impact of COVID-19”. The allocation of additional reserves for the COVID-19 qualitative factor during the year was based upon continued analysis of the loan portfolio that included identifying borrowers sensitive to the shutdown (i.e. accommodation and food service, recreation, construction, manufacturing, and wholesale & retail trade) as well as a general allocation for the negative economic outlook given the record number of unemployment benefits claims during the period. In addition, on an ongoing basis, the Company has continually evaluated the loan portfolio acquired on October 24, 2016 from Chicopee Bancorp, Inc. (“Chicopee”). The acquired portfolio was initially recorded at fair value without a related allowance for loan losses. Subsequent to acquisition, there have been no indications that there has been any subsequent deterioration to the acquired portfolio. Due to the ongoing impacts and extended nature of the pandemic, during the year ended December 31, 2020, the Company determined that it was prudent to provide an allowance for loan losses related to the acquired portfolio. Excluding the COVID-19 qualitative factor category and the allowance for the acquired loan portfolio, there were no additional changes in our policies or methodology pertaining to the general component of the allowance for loan losses during the periods presented for disclosure. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each loan portfolio segment are as follows: Commercial real estate loans Residential real estate loans 80 Commercial and industrial loans In addition, as a Preferred Lender with the Small Business Administration (“SBA”), the Company offered Paycheck Protection Program (“PPP”) loans through the March 27, 2020 $ 2.2 2.5 10.0 1.0 100 60 40 Consumer loans Allocated component The allocated component relates to loans that are classified as impaired. Impaired loans are identified by analysis of loan performance, internal credit ratings and watch list loans that management believes are subject to a higher risk of loss. Impairment is measured on a loan by loan basis for commercial real estate and commercial and industrial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, we do not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are non-performing or subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. We determine the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The extent to which COVID-19 impacts our borrower’s ability to repay and therefore the classification of a loan as impaired is highly uncertain and cannot be predicted with confidence as it is highly dependent upon the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures. We may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired. While we use our best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. Unallocated component An unallocated component may be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. |
Loans Acquired with Deteriorated Credit Quality | Loans Acquired with Deteriorated Credit Quality |
Bank-owned Life Insurance | Bank-owned Life Insurance |
Transfers and Servicing of Financial Assets | Transfers and Servicing of Financial Assets |
Premises and Equipment | Premises and Equipment The estimated useful lives of the assets are as follows: Schedule of estimated useful lives of assets Years Buildings 39 Leasehold Improvements 5 20 Furniture and Equipment 3 7 The cost of maintenance and repairs is charged to expense when incurred. Major expenditures for betterments are capitalized and depreciated. |
Other Real Estate Owned | Other Real Estate Owned |
Servicing | Servicing Servicing fee income is recorded for fees earned for servicing loans, which is included in service charges and fee income. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Goodwill is measured as the excess of the cost of a business combination over the sum of the amounts assigned to identifiable intangible assets acquired less liabilities assumed. Goodwill is not amortized but rather assessed for impairment annually or more frequently if circumstances warrant. Management has the option of first assessing qualitative factors, such as events and circumstances, to determine whether it is more likely than not, meaning a likelihood of more than 50%, the value of a reporting unit is less than its carrying amount. If, after considering all relevant events and circumstances, management determines it is not more likely than not the fair value of a reporting unit is less than its carrying amount, then performing an impairment test is unnecessary. For the year ended December 31, 2020, management determined that it was not more likely than not the fair value of the reporting unit (the consolidated Company, in our case) was less than its carrying amount. If management had determined otherwise, a fair value analysis would have been completed to determine the impairment and necessary write-down of goodwill. |
Retirement Plans and Employee Benefits | Retirement Plans and Employee Benefits 50 6 |
Share-based Compensation Plans | Share-based Compensation Plans |
Employee Stock Ownership Plan | Employee Stock Ownership Plan |
Leases | Leases other liabilities |
Advertising Costs | Advertising Costs |
Income Taxes | Income Taxes |
Earnings per Share | Earnings per Share Earnings per common share have been computed based on the following: Schedule of earrings per common share Years Ended December 31, 2020 2019 2018 (In thousands, except per share data) Net income applicable to common stock $ 11,215 $ 13,349 $ 16,408 Average number of common shares issued 25,751 26,959 29,734 Less: Average unallocated ESOP Shares (580 ) (667 ) (757 ) Less: Average unvested equity incentive plan shares (124 ) (107 ) (90 ) Average number of common shares outstanding used to calculate basic earnings per common share 25,047 26,185 28,887 Effect of dilutive equity incentive plan — 45 46 Effect of dilutive stock options 15 73 96 Average number of common shares outstanding used to calculate diluted earnings per common share 25,062 26,303 29,029 Basic earnings per share $ 0.45 $ 0.51 $ 0.57 Diluted earnings per share $ 0.45 $ 0.51 $ 0.57 Anti-dilutive shares (1) 259 — — (1) Shares outstanding but not included because the impact of these shares would be anti-dilutive to the earnings per share calculation for the periods presented. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss). The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows: Schedule of accumulated other comprehensive loss included in shareholders equity December 31, 2020 December 31, 2019 (In thousands) Net unrealized gains (losses) on securities available-for-sale $ 1,302 $ (393 ) Tax effect (339 ) 71 Net-of-tax amount 963 (322 ) Fair value of derivatives used for cash flow hedges — (1,773 ) Termination fee on cancelled cash flow hedges (684 ) (1,526 ) Total derivatives (684 ) (3,299 ) Tax effect 192 928 Net-of-tax amount (492 ) (2,371 ) Unrecognized actuarial loss on the defined benefit plan (16,344 ) (8,728 ) Tax effect 4,594 2,453 Net-of-tax amount (11,750 ) (6,275 ) Accumulated other comprehensive loss $ (11,279 ) $ (8,968 ) With regard to the defined benefit plan, an actuarial loss of $ 934,000 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of assets | The estimated useful lives of the assets are as follows: Schedule of estimated useful lives of assets Years Buildings 39 Leasehold Improvements 5 20 Furniture and Equipment 3 7 |
Schedule of earrings per common share | Earnings per common share have been computed based on the following: Schedule of earrings per common share Years Ended December 31, 2020 2019 2018 (In thousands, except per share data) Net income applicable to common stock $ 11,215 $ 13,349 $ 16,408 Average number of common shares issued 25,751 26,959 29,734 Less: Average unallocated ESOP Shares (580 ) (667 ) (757 ) Less: Average unvested equity incentive plan shares (124 ) (107 ) (90 ) Average number of common shares outstanding used to calculate basic earnings per common share 25,047 26,185 28,887 Effect of dilutive equity incentive plan — 45 46 Effect of dilutive stock options 15 73 96 Average number of common shares outstanding used to calculate diluted earnings per common share 25,062 26,303 29,029 Basic earnings per share $ 0.45 $ 0.51 $ 0.57 Diluted earnings per share $ 0.45 $ 0.51 $ 0.57 Anti-dilutive shares (1) 259 — — (1) Shares outstanding but not included because the impact of these shares would be anti-dilutive to the earnings per share calculation for the periods presented. |
Schedule of accumulated other comprehensive loss included in shareholders equity | The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows: Schedule of accumulated other comprehensive loss included in shareholders equity December 31, 2020 December 31, 2019 (In thousands) Net unrealized gains (losses) on securities available-for-sale $ 1,302 $ (393 ) Tax effect (339 ) 71 Net-of-tax amount 963 (322 ) Fair value of derivatives used for cash flow hedges — (1,773 ) Termination fee on cancelled cash flow hedges (684 ) (1,526 ) Total derivatives (684 ) (3,299 ) Tax effect 192 928 Net-of-tax amount (492 ) (2,371 ) Unrecognized actuarial loss on the defined benefit plan (16,344 ) (8,728 ) Tax effect 4,594 2,453 Net-of-tax amount (11,750 ) (6,275 ) Accumulated other comprehensive loss $ (11,279 ) $ (8,968 ) |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
The amortized cost and fair values of available-for-sale investment securities at December 31, 2020 and 2019 are summarized as follows: | The amortized cost and fair values of available-for-sale investment securities at December 31, 2020 and 2019 are summarized as follows: December 31, 2020 Amortized Gross Gross Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 14,871 $ 15 $ (111 ) $ 14,775 State and municipal bonds 405 1 — 406 Corporate bonds 3,039 36 — 3,075 Total debt securities 18,315 52 (111 ) 18,256 Mortgage-backed securities: Government-sponsored mortgage-backed securities 161,290 1,742 (303 ) 162,729 U.S. government guaranteed mortgage-backed securities 20,973 108 (186 ) 20,895 Total mortgage-backed securities 182,263 1,850 (489 ) 183,624 Total available-for-sale $ 200,578 $ 1,902 $ (600 ) $ 201,880 December 31, 2019 Amortized Gross Gross Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 20,150 $ — $ (136 ) $ 20,014 State and municipal bonds 2,718 95 — 2,813 Corporate bonds 7,800 88 (22 ) 7,866 Total debt securities 30,668 183 (158 ) 30,693 Mortgage-backed securities: Government-sponsored mortgage-backed securities 186,236 780 (1,015 ) 186,001 U.S. government guaranteed mortgage-backed securities 11,197 33 (216 ) 11,014 Total mortgage-backed securities 197,433 813 (1,231 ) 197,015 Total available-for-sale $ 228,101 $ 996 $ (1,389 ) $ 227,708 |
The amortized cost and fair value of available-for-sale debt securities at December 31, 2020, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations. Also, because mortgage-backed securities require periodic principal pay downs, they are not included in the maturity categories in the following summary. | The amortized cost and fair value of available-for-sale debt securities at December 31, 2020, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations. Also, because mortgage-backed securities require periodic principal pay downs, they are not included in the maturity categories in the following summary. December 31, 2020 Amortized Cost Fair Value (In thousands) Available-for-sale securities: Debt securities: Due after one year through five years $ 3,444 $ 3,481 Due after five years through ten years 9,891 9,884 Due after ten years 4,980 4,891 Total debt securities 18,315 18,256 Mortgage-backed securities 182,263 183,624 Total available-for-sale securities $ 200,578 $ 201,880 |
Gross realized gains and losses on sales of securities available-for-sale for the years ended December 31, 2020, 2019 and 2018 are as follows: | Gross realized gains and losses on sales of securities available-for-sale for the years ended December 31, 2020, 2019 and 2018 are as follows: Years Ended December 31, 2020 2019 2018 (In thousands) Gross gains realized $ 2,188 $ 160 $ — Gross losses realized (223 ) (257 ) (281 ) Net gain (loss) realized $ 1,965 $ (97 ) $ (281 ) |
Information pertaining to securities with gross unrealized losses at December 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: | Information pertaining to securities with gross unrealized losses at December 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: December 31, 2020 Less Than Twelve Months Over Twelve Months Number of Fair Value Gross Depreciation from Amortized Cost Basis (%) Number of Fair Value Gross Depreciation from Amortized (Dollars in thousands) Government-sponsored mortgage-backed securities 16 $ 27,091 $ 225 0.8 % 2 $ 1,815 $ 78 4.1 % U.S. government guaranteed mortgage-backed securities 3 10,458 75 0.7 2 2,393 111 4.4 Government-sponsored enterprise obligations 2 9,868 111 1.1 — — — — $ 47,417 $ 411 $ 4,208 $ 189 December 31, 2019 Less Than Twelve Months Over Twelve Months Number of Fair Value Gross Depreciation from Amortized Cost Basis (%) Number of Fair Value Gross Depreciation from Amortized (Dollars in thousands) Government-sponsored mortgage-backed securities 17 $ 42,834 $ 122 0.3 % 43 $ 70,581 $ 893 1.2 % U.S. government guaranteed mortgage-backed securities 2 2,783 13 0.5 4 4,688 203 4.2 Corporate bonds 1 1,623 16 1.0 1 3,046 6 0.2 Government-sponsored enterprise obligations 5 14,524 126 0.9 1 1,490 10 0.7 $ 61,764 $ 277 $ 79,805 $ 1,112 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Major classifications of loans at the periods indicated were as follows: | Major classifications of loans at the periods indicated were as follows: December 31, December 31, 2020 2019 (In thousands) Commercial real estate $ 833,949 $ 816,886 Residential real estate: Residential 1-4 family 604,719 597,727 Home equity 103,905 102,517 Commercial and industrial Paycheck protection program (“PPP”) loans 167,258 — Commercial and industrial 211,823 248,893 Consumer 5,192 5,747 Total gross loans 1,926,846 1,771,770 Unamortized PPP loan fees (3,050 ) — Unearned premiums and deferred loan fees and costs, net 3,587 4,264 Allowance for loan losses (21,157 ) (14,102 ) Net loans $ 1,906,226 $ 1,761,932 |
The table below breaks out the remaining modifications granted under the CARES Act at December 31, 2020: | The table below breaks out the remaining modifications granted under the CARES Act at December 31, 2020: December 31, 2020 CARES Act Modifications Loan Segment (1)(2) Total Loan % of Total Modification # of Loans % of Balance ($ in millions) Commercial real estate $ 833.9 47.4 % $ 64.0 19 7.7 % Commercial and industrial 211.9 12.0 % 9.3 10 4.4 % Residential real estate 708.6 40.3 % 3.6 16 0.5 % Consumer 5.2 0.3 % 0.0 2 0.7 % Total $ 1,759.6 100.0 % $ 76.9 47 4.4 % The table below breaks out the status of the remaining modifications granted under the CARES Act as of December 31, 2020: Loans Under 1 st Loans Granted Subsequent Modification Total Remaining CARES Act Modifications Loan Segment (1)(2) Modification Balance # of Loans % of Balance Modification # of Loans % of Modification # of Loans % of ($ in millions) Commercial real estate $ 6.2 2 0.7 % $ 57.8 17 6.9 % $ 64.0 19 7.7 % Commercial and industrial 1.1 4 0.5 % 8.2 6 3.9 % 9.3 10 4.4 % Residential real estate 1.2 8 0.2 % 2.4 8 0.3 % 3.6 16 0.5 % Consumer 0.0 1 0.0 % 0.0 1 0.0 % 0.0 2 0.7 % Total $ 8.5 15 0.5 % $ 68.4 32 3.9 % $ 76.9 47 4.4 % (1) Excludes PPP loans and deferred fees (2) Residential includes home equity loans and lines of credit |
The following table provides some insight into the composition of the Bank's loan portfolio and remaining loan modifications, excluding PPP loans, as of December 31, 2020: | The following table provides some insight into the composition of the Bank's loan portfolio and remaining loan modifications, excluding PPP loans, as of December 31, 2020: Commercial Real Estate % of Total % of % of Apartment 9.2 % 66.5 % — Office 8.4 % 60.3 % — Industrial 6.8 % 49.1 % 2.5 % Retail/Shopping 6.4 % 46.1 % — Hotel 3.2 % 23.0 % 90.5 % Residential non-owner 2.6 % 19.0 % — Auto sales 2.1 % 14.8 % — Mixed-use 2.1 % 15.1 % — Adult care/Assisted living 2.0 % 14.7 % 20.9 % College/school 1.6 % 11.3 % 0.5 % Other 1.2 % 8.3 % 7.6 % Auto service 0.6 % 4.1 % — Gas station/convenience store 0.6 % 4.5 % — Restaurant 0.6 % 4.1 % 7.9 % Total commercial real estate loans 47.4 % 7.7 % Commercial and Industrial Loans % of Total % of % of Manufacturing 2.9 % 20.6 % 0.3 % Wholesale trade 2.0 % 14.2 % — Specialty trade 0.6 % 4.5 % — Heavy and civil engineering construction 0.8 % 5.5 % 2.4 % Educational services 0.6 % 4.4 % 0.5 % Transportation and warehouse 0.7 % 5.0 % 55.3 % Healthcare and social assistance 0.4 % 3.0 % 15.4 % Auto sales 0.4 % 3.0 % — All other C&I (3) 3.6 % 25.5 % 1.3 % Total commercial and industrial loans 12.0 % 4.4 % Residential and Consumer Loans % of Total % of % of Residential real estate 40.3 % 289.8 % 0.5 % Consumer 0.3 % 2.1 % — Total residential and consumer loans 40.6 % 0.5 % Total Portfolio % of Total % of % of Commercial real estate 47.4 % 341.0 % 7.7 % Commercial and industrial 12.0 % 86.7 % 4.4 % Residential real estate 40.3 % 289.8 % 0.5 % Consumer 0.3 % 2.1 % 0.7 % Total 4.4 % (1) Excludes PPP loans of $ 167.3 (2) Modified balances as of December 31, 2020 (Commercial real estate loans $ 64.0 9.3 3.6 (3) Other consists of multiple industries. |
A summary of the activity in the balances of mortgage servicing rights follows: | A summary of the activity in the balances of mortgage servicing rights follows: Years Ended December 31, 2020 2019 (In thousands) Balance at the beginning of year: $ 219 $ 286 Amortization (64 ) (67 ) Write-down of mortgage servicing asset to fair value (2 ) — Balance at the end of year $ 153 $ 219 Fair value at the end of year $ 157 $ 345 |
An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2020, 2019 and 2018 is as follows: | An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2020, 2019 and 2018 is as follows: Commercial Residential Commercial Consumer Unallocated Total (In thousands) Balance at December 31, 2017 $ 4,712 $ 3,311 $ 2,733 $ 71 $ 4 $ 10,831 Provision (credit) 214 863 660 179 (16 ) 1,900 Charge-offs (35 ) (645 ) (299 ) (171 ) — (1,150 ) Recoveries 369 27 20 56 — 472 Balance at December 31, 2018 $ 5,260 $ 3,556 $ 3,114 $ 135 $ (12 ) $ 12,053 Provision 1,343 618 509 204 1 2,675 Charge-offs (669 ) (320 ) (514 ) (197 ) — (1,700 ) Recoveries 873 66 74 61 — 1,074 Balance at December 31, 2019 $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Provision 6,262 408 939 129 37 7,775 Charge-offs (107 ) (177 ) (543 ) (136 ) — (963 ) Recoveries 58 89 51 45 — 243 Balance at December 31, 2020 $ 13,020 $ 4,240 $ 3,630 $ 241 $ 26 $ 21,157 |
The following table presents information pertaining to the allowance for loan losses by segment, excluding PPP loans, for the dates indicated: | The following table presents information pertaining to the allowance for loan losses by segment, excluding PPP loans, for the dates indicated: Commercial Residential Commercial Consumer Unallocated Total (In thousands) December 31, 2020 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 13,020 4,240 3,630 241 26 21,157 Total allowance for loan losses $ 13,020 $ 4,240 $ 3,630 $ 241 $ 26 $ 21,157 Impaired loans $ 11,803 $ 4,363 $ 4,439 $ 27 $ — $ 20,632 Non-impaired loans 816,406 701,915 207,002 5,165 — 1,730,488 Impaired loans acquired with deteriorated credit quality 5,740 2,346 382 — — 8,468 Total loans $ 833,949 $ 708,624 $ 211,823 $ 5,192 $ — $ 1,759,588 Commercial Residential Commercial Consumer Unallocated Total (In thousands) December 31, 2019 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 6,807 3,920 3,183 203 (11 ) 14,102 Total allowance for loan losses $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Impaired loans $ 3,457 $ 3,575 $ 588 $ 42 $ — $ 7,662 Non-impaired loans 805,007 694,080 247,499 5,705 — 1,752,291 Impaired loans acquired with deteriorated credit quality 8,422 2,589 806 — — 11,817 Total loans $ 816,886 $ 700,244 $ 248,893 $ 5,747 $ — $ 1,771,770 |
The following tables present an age analysis of past due loans, excluding PPP loans, as of the dates indicated: | The following tables present an age analysis of past due loans, excluding PPP loans, as of the dates indicated: Balance at December 31, 2020 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Total Current Loans Total Loans Non-Accrual Loans (In thousands) Commercial real estate $ 5,844 $ 3,144 $ 1,256 $ 10,244 $ 823,705 $ 833,949 $ 1,632 Residential real estate: Residential 1,684 360 707 2,751 601,968 604,719 5,353 Home equity 25 — — 25 103,880 103,905 124 Commercial and industrial 166 158 156 480 211,343 211,823 705 Consumer 22 — — 22 5,170 5,192 27 Total loans $ 7,741 $ 3,662 $ 2,119 $ 13,522 $ 1,746,066 $ 1,759,588 $ 7,841 Balance at December 31, 2019 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Total Current Loans Total Loans Non-Accrual Loans (In thousands) Commercial real estate $ 2,784 $ 1,234 $ 2,637 $ 6,655 $ 810,231 $ 816,886 $ 3,843 Residential real estate: Residential 2,574 683 1,433 4,690 593,037 597,727 4,548 Home equity 80 38 149 267 102,250 102,517 445 Commercial and industrial 1,356 645 148 2,149 246,744 248,893 1,003 Consumer 24 — 17 41 5,706 5,747 42 Total loans $ 6,818 $ 2,600 $ 4,384 $ 13,802 $ 1,757,968 $ 1,771,770 $ 9,881 |
The following is a summary of impaired loans by class: | The following is a summary of impaired loans by class: Year Ended At December 31, 2020 December 31, 2020 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired Loans (1) (In thousands) Commercial real estate $ 17,543 $ 18,590 $ — $ 18,284 $ 516 Residential real estate 6,544 7,647 — 5,815 66 Home equity 165 207 — 371 5 Commercial and industrial 4,821 7,038 — 4,186 217 Consumer 27 39 — 35 — Total impaired loans $ 29,100 $ 33,521 $ — $ 28,691 $ 804 Year Ended At December 31, 2019 December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired Loans: (1) (In thousands) Commercial real estate $ 11,879 $ 13,914 $ — $ 15,678 $ 595 Residential real estate 5,695 6,383 — 6,550 104 Home equity 469 539 — 415 — Commercial and industrial 1,394 4,192 — 3,359 131 Consumer 42 56 — 48 — Total impaired loans $ 19,479 $ 25,084 $ — $ 26,050 $ 830 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. |
Loans modifications classified as TDRs during the twelve months ended December 31, 2020 and 2019 are included in the table below. | Loans modifications classified as TDRs during the twelve months ended December 31, 2020 and 2019 are included in the table below. Twelve Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 Number of Contracts Pre-Modification Post-Modification Number of Contracts Pre-Modification Post-Modification Troubled Debt Restructurings Commercial Real Estate 5 $ 4,576 $ 4,576 2 $ 2,032 $ 2,032 Commercial and Industrial 9 3,806 3,806 2 383 383 Total 14 $ 8,382 $ 8,382 4 $ 2,415 $ 2,415 |
The following is a summary of loans acquired with evidence of credit deterioration from Chicopee Savings Bank (“Chicopee”) as of December 31, 2020. | The following is a summary of loans acquired with evidence of credit deterioration from Chicopee Savings Bank (“Chicopee”) as of December 31, 2020. Contractual Cash Expected Non- Accretable Accretable Yield Loans Receivable (In thousands) Balance at December 31, 2019 $ 20,689 $ 15,909 $ 4,780 $ 4,092 $ 11,817 Collections (5,339 ) (3,762 ) (1,577 ) (446 ) (3,316 ) Dispositions (1,053 ) (662 ) (391 ) (629 ) (33 ) Balance at December 31, 2020 $ 14,297 $ 11,485 $ 2,812 $ 3,017 $ 8,468 |
The following table presents our loans by risk rating for the periods indicated: | The following table presents our loans by risk rating for the periods indicated: Commercial Real Estate Residential 1-4 family Home Equity Commercial and Industrial Consumer Total (In thousands) December 31, 2020 Pass (Rated 1 – 4) $ 726,751 $ 598,250 $ 103,619 $ 345,967 $ 5,165 $ 1,779,752 Special Mention (Rated 5) 78,207 — — 13,871 — 92,078 Substandard (Rated 6) 28,991 6,469 286 19,243 27 55,016 Total $ 833,949 $ 604,719 $ 103,905 $ 379,081 $ 5,192 $ 1,926,846 Commercial Real Estate Residential 1-4 family Home Equity Commercial and Industrial Consumer Total December 31, 2019 (In thousands) Pass (Rated 1 – 4) $ 766,124 $ 591,911 $ 101,908 $ 222,847 $ 5,705 $ 1,688,495 Special Mention (Rated 5) 23,138 — — 2,796 — 25,934 Substandard (Rated 6) 27,624 5,816 609 23,250 42 57,341 Total $ 816,886 $ 597,727 $ 102,517 $ 248,893 $ 5,747 $ 1,771,770 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | Premises and equipment are summarized as follows: Schedule of premises and equipment December 31, 2020 2019 (In thousands) Land $ 5,661 $ 5,651 Buildings 25,091 24,454 Leasehold improvements 3,112 2,424 Furniture and equipment 19,901 17,720 Total 53,764 50,249 Less: accumulated depreciation and amortization (28,661 ) (26,486 ) Premises and equipment, net $ 25,103 $ 23,763 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits: | |
Schedule of deposits accounts by type | Deposit accounts, by type, are summarized as follows for the periods indicated: Schedule of deposits accounts by type At December 31, 2020 2019 (In thousands) Demand and interest-bearing checking: Interest-bearing checking accounts $ 94,936 $ 70,182 Demand deposits 541,759 393,303 Savings: Regular accounts 170,309 126,352 Money market accounts 640,790 435,396 Time deposits 590,336 652,631 Total deposits $ 2,038,130 $ 1,677,864 |
Schedule of maturities of time deposits | The scheduled maturities of time deposits for the periods indicated are as follows: Schedule of maturities of time deposits Years Ended December 31, 2020 2019 (In thousands) 2020 $ — $ 548,559 2021 503,187 73,394 2022 68,920 18,382 2023 12,927 10,996 2024 3,203 1,300 2025 2,099 — Total time deposits $ 590,336 $ 652,631 |
Schedule of interest expense on deposits | Interest expense on deposits for the years ended December 31, 2020, 2019 and 2018 is summarized as follows: Schedule of interest expense on deposits Years Ended December 31, 2020 2019 2018 (In thousands) Regular accounts $ 136 $ 146 $ 162 Money market accounts 2,838 2,532 1,911 Time deposits 10,139 14,152 9,270 Interest-bearing checking accounts 387 377 340 Total $ 13,500 $ 17,207 $ 11,683 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
The following advances are collateralized by a blanket lien on our residential real estate loans and certain eligible commercial real estate loans. | The following advances are collateralized by a blanket lien on our residential real estate loans and certain eligible commercial real estate loans. Amount Weighted Average Rate 2020 2019 2020 2019 (In thousands) Fixed-rate advances maturing: 2020 $ — $ 127,983 — % 2.1 % 2021 42,388 51,084 1.5 2.3 2022 14,284 23,596 0.4 1.9 2023 532 628 — 0.2 2024 646 2,224 — 0.9 Total long-term advances $ 57,850 $ 205,515 1.2 % 2.1 % |
STOCK PLANS AND EMPLOYEE STOC_2
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options. A summary of the status of our stock options at December 31, 2020 is presented below: | Stock Options. Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2019 218,214 $ 6.42 2.62 $ 695 Exercised (7,239 ) 5.81 0.12 7 Outstanding at December 31, 2020 210,975 $ 6.46 1.67 $ 90 Exercisable at December 31, 2020 210,975 $ 6.46 1.67 $ 90 |
The original and adjusted threshold, target and maximum metrics for 2019 under the 2017 grants are as follows: | As a result of the Tax Cuts and Jobs Act of 2017, the return on equity performance metrics were adjusted to incorporate the impact and benefits of the corporate tax rate reductions thereunder. The original and adjusted threshold, target and maximum metrics for 2019 under the 2017 grants are as follows: Return on Equity December 31, 2019 Threshold Target Maximum Original 6.50 % 7.20 % 7.90 % Adjusted 7.09 % 7.85 % 8.61 % As of December 31, 2019, the three-year performance period for the 2017 grants ended. Performance-based shares were earned based on the Company achieving the annual 2017 performance metrics adjusted threshold, target or maximum metrics at the end of each year of the three-year performance period. Of the original 33,883 15,898 16,803 In January 2018, there were 83,812 83,812 50,852 17,908 one year 32,944 three-year 32,960 three-year The threshold, target and stretch metrics under the 2018 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2018 6.30 % 6.80 % 7.20 % December 31, 2019 6.85 % 7.35 % 7.75 % December 31, 2020 7.40 % 7.90 % 8.30 % Eligible participants will be able to earn between 50 100 150 In February 2019, there were 108,718 108,718 64,496 20,262 one year 44,234 three-year 44,222 three-year The threshold, target and stretch metrics under the 2019 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2019 5.75 % 6.13 % 7.00 % December 31, 2020 6.00 % 6.75 % 7.75 % December 31, 2021 6.25 % 7.00 % 8.00 % Eligible participants will be able to earn between 50 100 150 In February 2020, there were 120,053 120,053 69,898 19,760 one year 50,138 three-year 50,155 50 three-year The threshold, target and stretch metrics under the 2020 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2020 5.00 % 5.48 % 6.00 % December 31, 2021 5.62 % 6.24 % 6.86 % December 31, 2022 6.29 % 6.99 % 7.69 % Earnings Per Share Metrics Performance Period Ending Threshold Target Stretch Three-year Cumulative Diluted Earnings Per Share $ 1.50 $ 1.65 $ 1.80 |
A summary of the status of restricted stock awards at December 31, 2020 and 2019 is presented below: | A summary of the status of restricted stock awards at December 31, 2020 and 2019 is presented below: Shares Weighted Average Balance at December 31, 2019 172,866 $ 10.07 Shares granted 145,980 8.69 Shares forfeited (30,193 ) 9.96 Shares vested (109,955 ) 9.00 Balance at December 31, 2020 178,698 $ 9.63 Shares Weighted Average Balance at December 31, 2018 155,712 $ 9.87 Shares granted 108,718 9.77 Shares vested (89,722 ) 9.36 Shares forfeited (1,842 ) 9.77 Balance at December 31, 2019 172,866 $ 10.07 |
At December 31, 2020, the remaining principal balances are payable as follows: | At December 31, 2020, the remaining principal balances are payable as follows: Years Ending December 31, Amount (In thousands) 2021 $ 447 2022 447 2023 447 2024 447 2025 447 Thereafter 2,795 Total $ 5,030 |
Shares held by the ESOP include the following at December 31, 2020 and 2019: | Shares held by the ESOP include the following at December 31, 2020 and 2019: 2020 2019 Allocated 1,078,109 989,258 Committed to be allocated 85,101 88,117 Unallocated 526,906 612,007 Total 1,690,116 1,689,382 |
RETIREMENT PLANS AND EMPLOYEE_2
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
The following table provides information for the Plan | The following table provides information for the Plan Years Ended December 31, 2020 2019 2018 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 36,158 $ 27,309 $ 29,345 Service cost 1,396 1,095 1,269 Interest 1,162 1,134 1,012 Actuarial loss (gain) 9,690 7,074 (3,887 ) Benefits paid (814 ) (454 ) (430 ) Benefit obligation at end of year 47,592 36,158 27,309 Change in plan assets: Fair value of plan assets at beginning of year 22,787 18,393 19,215 Actual return (loss) on plan assets 3,191 3,923 (1,192 ) Employer contribution 1,100 925 800 Benefits paid (814 ) (454 ) (430 ) Fair value of plan assets at end of year 26,264 22,787 18,393 Funded status and accrued benefit at end of year $ (21,328 ) $ (13,371 ) $ (8,916 ) Accumulated benefit obligation at end of year $ 35,755 $ 27,634 $ 21,449 |
The following actuarial assumptions were used in determining the pension benefit obligation | The following actuarial assumptions were used in determining the pension benefit obligation December 31, 2020 2019 Discount rate 2.50 % 3.25 % Rate of compensation increase 4.00 4.00 |
Net pension cost includes the following components | Net pension cost includes the following components 2020 2019 2018 (In thousands) Service cost $ 1,396 $ 1,095 $ 1,269 Interest cost 1,162 1,134 1,012 Expected return on assets (1,526 ) (1,233 ) (1,387 ) Amortization of actuarial loss 421 133 170 Net periodic pension cost $ 1,453 $ 1,129 $ 1,064 |
The following actuarial assumptions were used in determining the net periodic pension cost | The following actuarial assumptions were used in determining the net periodic pension cost 2020 2019 2018 Discount rate 3.25 % 4.25 % 3.60 % Expected return on plan assets 7.00 7.00 7.50 Rate of compensation increase 4.00 4.00 4.00 |
The following is a summary of the Plan’s investments | The following is a summary of the Plan’s investments 2020 2019 (In thousands) Pooled separate investment accounts: Fixed income $ 13,332 $ 11,033 Large U.S. equity 6,763 5,458 International equity 3,960 3,528 Small/mid U.S. equity 1,131 975 Balanced/asset allocation — 457 Other 1,078 1,336 Total $ 26,264 $ 22,787 |
The following table summarizes the investments for which fair value is measured using NAV per share as a practical expedient for the years ended December 31, 2020 and 2019. | The following table summarizes the investments for which fair value is measured using NAV per share as a practical expedient for the years ended December 31, 2020 and 2019. Fair Value Unfunded Redemption Redemption Notice Period (In thousands) December 31, 2020 $ 26,264 n/a Daily 1 day December 31, 2019 $ 22,787 n/a Daily 1 day |
We estimate that the benefits to be paid from the pension plan | We estimate that the benefits to be paid from the pension plan Year Benefit Payments to Participants (In thousands) 2021 $ 1,620 2022 1,955 2023 2,180 2024 2,497 2025 5,481 In aggregate for 2026 – 2030 16,900 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
The following table presents information about interest rate swaps at December 31, 2020 and December 31, 2019: | The following table presents information about interest rate swaps at December 31, 2020 and December 31, 2019: December 31, 2020 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Non-hedging derivatives: Loan-level swaps – dealer $ 13,554 12.5 1.97 % 3.74 % $ (1,440 ) Loan-level swaps – borrower 13,554 12.5 3.74 % 1.97 % 1,440 Forward starting loan-level swaps - dealer 22,390 11.5 114 Forward starting loan-level swaps - borrower 22,390 11.5 (114 ) Total $ 71,888 $ 0 December 31, 2019 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB borrowings $ 35,000 2.7 1.89 % 3.54 % $ (1,798 ) Non-hedging derivatives: Loan-level swaps – dealer 6,484 13.2 3.45 % 3.79 % (149 ) Loan-level swaps – borrower 6,484 13.2 3.79 % 3.45 % 149 Total $ 47,968 $ (1,798 ) |
The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of December 31, 2020 and December 31, 2019. | The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of December 31, 2020 and December 31, 2019. December 31, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives not designated as hedging instruments: Interest rate swap – with customers Other Assets $ 1,440 $ 114 Interest rate swap – with counterparties 114 Other Liabilities 1,440 Total derivatives not designated as hedging instruments $ 1,554 $ 1,554 December 31, 2019 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps – cash flow hedge Other Assets $ — Other Liabilities $ 1,798 Total derivatives designated as hedging instruments $ — $ 1,798 Derivatives not designated as hedging instruments: Interest rate swap – with customers Other Assets $ 149 $ — Interest rate swap – with counterparties — Other Liabilities 149 Total derivatives not designated as hedging instruments $ 149 $ 149 |
The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated: | The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated: Amount of Gain (Loss) Recognized in OCI on Derivative Twelve Months Ended December 31, 2020 2019 2018 (In thousands) Interest rate swaps $ 1,099 $ (900 ) $ 442 Amounts reported in accumulated other comprehensive loss related to these derivatives are reclassified to interest expense as interest payments are made on our designated rate sensitive liabilities. The table below presents the amount reclassified from accumulated other comprehensive loss into net income for interest rate swaps and termination fees: Amount of Gain Reclassified from OCI into Expense (Effective Portion) Twelve Months Ended December 31, 2020 2019 2018 (In thousands) Interest rate swaps $ 1,516 $ 1,455 $ 1,520 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
The components of lease expense were as follows | The components of lease expense were as follows Twelve Months Ended December 31, 2020 2019 (In thousands) Amortization of ROU assets $ 1,191 $ 972 Interest on lease liabilities 269 244 Operating lease cost $ 1,460 $ 1,216 |
Supplemental cash flow information related to leases was as follows | Supplemental cash flow information related to leases was as follows Twelve Months Ended December 31, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,397 $ 1,172 ROU assets obtained in exchange for lease obligations: Operating leases 4,332 600 |
Supplemental balance sheet information related to leases was as follows | Supplemental balance sheet information related to leases was as follows December 31, 2020 December 31, 2019 (In thousands) Operating lease ROU assets $ 9,939 $ 6,795 Operating lease liabilities $ 10,047 $ 6,840 |
Maturities of the Company’s operating lease liabilities were as follows | Maturities of the Company’s operating lease liabilities were as follows Years Ending December 31, 2021 $ 1,482 2022 1,414 2023 1,172 2024 1,108 2025 1,024 Thereafter 5,629 Total lease payments 11,829 Less imputed interest (1,782 ) Total $ 10,047 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital | |
Our actual capital ratios of December 31, 2020 and December 31, 2019 are also presented in the following table | Our actual capital ratios of December 31, 2020 and December 31, 2019 are also presented in the following table Actual Minimum For Capital Adequacy Purpose Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2020 Total Capital (to Risk Weighted Assets): Consolidated $ 244,158 14.65 % $ 133,336 8.00 % N/A N/A Bank 231,531 13.91 133,149 8.00 $ 166,436 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 223,320 13.40 100,002 6.00 N/A N/A Bank 210,722 12.66 99,862 6.00 133,149 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 223,320 13.40 75,002 4.50 N/A N/A Bank 210,722 12.66 74,896 4.50 108,183 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 223,320 9.34 95,606 4.00 N/A N/A Bank 210,722 8.83 95,409 4.00 119,261 5.00 December 31, 2019 Total Capital (to Risk Weighted Assets): Consolidated $ 240,226 13.93 % $ 137,934 8.00 % N/A N/A Bank 227,678 13.22 137,773 8.00 $ 172,217 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 226,124 13.11 103,451 6.00 N/A N/A Bank 213,576 12.40 103,330 6.00 137,773 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 226,124 13.11 77,588 4.50 N/A N/A Bank 213,576 12.40 77,498 4.50 111,941 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 226,124 10.45 86,593 4.00 N/A N/A Bank 213,576 9.88 86,500 4.00 108,125 5.00 |
The following is a reconciliation of our GAAP capital to regulatory Tier 1, Common Equity Tier 1 and total capital | The following is a reconciliation of our GAAP capital to regulatory Tier 1, Common Equity Tier 1 and total capital December 31, 2020 2019 (In thousands) Consolidated GAAP capital $ 226,640 $ 232,024 Net unrealized (gains) losses on available-for-sale securities, net of tax (963 ) 322 Unrealized loss on defined benefit pension plan, net of tax 11,750 6,275 Accumulated net loss on cash flow hedges, net of tax 492 2,371 Goodwill (12,487 ) (12,487 ) Intangible assets, net of associated deferred tax liabilities (2,112 ) (2,381 ) Tier 1 and Common Equity Tier 1 capital 223,320 226,124 Allowance for loan losses 20,838 14,102 Total regulatory capital $ 244,158 $ 240,226 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes consist of the following: | Income taxes consist of the following: Years Ended December 31, 2020 2019 2018 (In thousands) Current tax provision: Federal $ 3,793 $ 3,082 $ 3,910 State 1,579 1,450 1,586 Total 5,372 4,532 5,496 Deferred tax benefit: Federal (1,639 ) (348 ) (542 ) State (792 ) (332 ) (254 ) Total (2,431 ) (680 ) (796 ) Total $ 2,941 $ 3,852 $ 4,700 |
The differences between the statutory federal income tax and the effective tax are summarized below | The differences between the statutory federal income tax and the effective tax are summarized below Years Ended December 31, 2020 2019 2018 (In thousands) Statutory federal income tax $ 2,973 $ 3,612 $ 4,433 Increase (decrease) resulting from: State taxes, net of federal tax benefit 622 883 1,052 Tax exempt income (337 ) (388 ) (370 ) Bank-owned life insurance (BOLI) (380 ) (378 ) (533 ) Option exercise tax shortfall (benefit) 1 (16 ) (11 ) Other, net 62 139 129 Effective tax $ 2,941 $ 3,852 $ 4,700 |
The tax effects of each item that gives rise to deferred taxes are as follows | The tax effects of each item that gives rise to deferred taxes are as follows December 31, 2020 2019 (In thousands) Deferred tax assets: Allowance for loan losses $ 5,947 $ 3,964 Defined benefit plan 4,594 2,453 Lease liability 2,824 1,923 Employee benefit and share-based compensation plans 2,251 2,223 Non-accrual interest 224 348 Net unrealized loss on derivative and hedging activity 192 928 Net unrealized loss on securities available-for-sale — 71 Purchased mortgage servicing rights 191 242 Other 619 776 Gross deferred tax assets 16,842 12,928 Deferred tax liabilities: Lease right-of-use asset (2,794 ) (1,910 ) Fixed asset depreciation (502 ) (447 ) Purchase accounting adjustments, net (494 ) (283 ) Net unrealized gain on securities available-for-sale (339 ) - Deferred loan fees (121 ) (1,105 ) Other (4 ) (22 ) Gross deferred tax liabilities (4,254 ) (3,767 ) Net deferred tax asset $ 12,588 $ 9,161 |
TRANSACTIONS WITH DIRECTORS A_2
TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Following is a summary of activity for such loan | We have had, and expect to have in the future, loans with our directors and executive officers including their affiliates. Such loans, in our opinion, do not include more than the normal risk of collectability or other unfavorable features. Following is a summary of activity for such loan Years Ended December 31, 2020 2019 (In thousands) Balance at beginning of year $ 520 $ 955 Principal distributions 389 481 Repayments of principal (214 ) (620 ) Change in related party status — (296 ) Balance at end of year $ 695 $ 520 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: | We do not anticipate any significant losses as a result of these transactions. The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: December 31, 2020 2019 (In thousands) Commitments to extend credit: Unused lines of credit $ 325,567 $ 264,224 Loan commitments 69,966 74,133 Existing construction loan agreements 44,088 32,037 Standby letters of credit 20,821 11,348 |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABLITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis are summarized below: | Assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2020 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale $ — $ 201,880 $ — $ 201,880 Marketable equity securities 11,968 — — 11,968 Interest rate swaps — 1,554 — 1,554 Total assets $ 11,968 $ 203,434 $ — $ 215,402 Liabilities: Interest rate swaps $ — $ 1,554 $ — $ 1,554 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale $ — $ 227,708 $ — $ 227,708 Marketable equity securities 6,737 — — 6,737 Interest rate swaps — 149 — 149 Total assets $ 6,737 $ 227,857 $ — $ 234,594 Liabilities: Interest rate swaps $ — $ 1,947 $ — $ 1,947 |
The following table summarizes the fair value hierarchy used to determine the carrying values of the related assets as of December 31, 2020 and 2019. | We may also be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following table summarizes the fair value hierarchy used to determine the carrying values of the related assets as of December 31, 2020 and 2019. Year Ended At December 31, 2020 December 31, 2020 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired Loans $ — $ — $ 150 $ 13 Year Ended At December 31, 2019 December 31, 2019 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired Loans $ — $ — $ 1,836 $ 1,327 |
The estimated fair values of our financial instruments are as follows: | The estimated fair values of our financial instruments are as follows: December 31, 2020 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 87,444 $ 87,444 $ — $ — $ 87,444 Securities available-for-sale 201,880 — 201,880 — 201,880 Marketable equity securities 11,968 11,968 — — 11,968 Federal Home Loan Bank of Boston and other restricted stock 5,160 — — 5,160 5,160 Loans - net 1,906,226 — — 1,900,750 1,900,750 Accrued interest receivable 8,477 — — 8,477 8,477 Mortgage servicing rights 153 — 157 — 157 Derivative asset 1,554 — 1,554 — 1,554 Liabilities: Deposits 2,038,130 — — 2,040,293 2,040,293 Long-term debt 57,850 — 57,945 — 57,945 Accrued interest payable 124 — — 124 124 Derivative liabilities 1,554 — 1,554 — 1,554 December 31, 2019 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 24,741 $ 24,741 $ — $ — $ 24,741 Securities available-for-sale 227,708 — 227,708 — 227,708 Marketable equity securities 6,737 6,737 — — 6,737 Federal Home Loan Bank of Boston and other restricted stock 14,477 — — 14,477 14,477 Loans - net 1,761,932 — — 1,729,150 1,729,150 Accrued interest receivable 5,313 — — 5,313 5,313 Mortgage servicing rights 219 — 345 — 345 Derivative asset 149 — 149 — 149 Liabilities: Deposits 1,677,864 — — 1,679,851 1,679,851 Short-term borrowings 35,000 — 35,004 — 35,004 Long-term debt 205,515 — 205,850 — 205,850 Accrued interest payable 525 — — 525 525 Derivative liabilities 1,947 — 1,947 — 1,947 |
CONDENSED PARENT COMPANY FINA_2
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
The condensed balance sheets of the parent company are as follows: | The condensed balance sheets of the parent company are as follows: December 31, 2020 2019 (In thousands) ASSETS: Cash equivalents $ 31 $ 158 Investment in subsidiaries 214,042 219,476 ESOP loan receivable 5,030 5,717 Other assets 13,002 12,650 TOTAL ASSETS 232,105 238,001 LIABILITIES: ESOP loan payable 5,030 5,717 Other liabilities 435 260 EQUITY 226,640 232,024 TOTAL LIABILITIES AND EQUITY $ 232,105 $ 238,001 |
The condensed statements of net income for the parent company are as follows: | The condensed statements of net income for the parent company are as follows: Years Ended December 31, 2020 2019 2018 (In thousands) INCOME: Dividends from subsidiaries $ 15,812 $ 25,063 $ 28,712 ESOP loan interest income 457 514 571 Other income 1 1 1 Total income 16,270 25,578 29,284 OPERATING EXPENSE: Salaries and employee benefits 1,420 1,647 1,837 ESOP interest 457 514 571 Other expenses 406 352 286 Total operating expense 2,283 2,513 2,694 Income before equity in undistributed income of subsidiaries and income taxes 13,987 23,065 26,590 Equity in undistributed loss of subsidiaries (3,123 ) (10,203 ) (10,717 ) Net income before taxes 10,864 12,862 15,873 Income tax benefit (351 ) (487 ) (535 ) Net income $ 11,215 $ 13,349 $ 16,408 |
The condensed statements of cash flows of the parent company are as follows: | The condensed statements of cash flows of the parent company are as follows: Years Ended December 31, 2020 2019 2018 (In thousands) OPERATING ACTIVITIES: Net income $ 11,215 $ 13,349 $ 16,408 Equity in undistributed loss of subsidiaries 3,123 10,203 10,717 Change in other liabilities (672 ) (668 ) (610 ) Change in other assets 335 216 (919 ) Other, net 1,385 1,607 1,805 Net cash provided by operating activities 15,386 24,707 27,401 INVESTING ACTIVITIES: Purchase of securities (122 ) (140 ) (127 ) Sales of securities 122 140 127 Net cash provided by investing activities — — — FINANCING ACTIVITIES: Cash dividends paid (5,037 ) (5,274 ) (4,641 ) Common stock repurchased (10,519 ) (19,455 ) (22,920 ) Issuance of common stock in connection with stock option exercises 43 106 114 Net cash used in financing activities (15,513 ) (24,623 ) (27,447 ) NET CHANGE IN CASH AND CASH EQUIVALENTS (127 ) 84 (46 ) CASH AND CASH EQUIVALENTS Beginning of year 158 74 120 End of year $ 31 $ 158 $ 74 Supplemental cash flow information: Net change in due to broker for common stock repurchased $ 160 $ (221 ) $ (83 ) |
SUMMARY OF QUARTERLY FINANCIA_2
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
The following tables present a summary of our quarterly financial information for the periods indicated. | The following tables present a summary of our quarterly financial information for the periods indicated. 2020 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest and dividend income $ 20,390 $ 20,330 $ 20,447 $ 21,708 Interest expense (1) 5,837 5,238 4,457 2,913 Net interest and dividend income 14,553 15,092 15,990 18,795 Provision for loan losses 2,100 2,450 2,725 500 Gain on available-for-sale securities, net 23 13 1,929 — Unrealized gains (losses) on marketable equity securities, net 102 35 (4 ) (24 ) Swap fee income 185 — 397 72 Loss on interest rate swap termination — — (2,353 ) — Other non-interest income 2,215 2,039 2,208 2,414 Non-interest income 2,525 2,087 2,177 2,462 Non-interest expense (2) 12,314 12,245 12,853 14,338 Income before income taxes 2,664 2,484 2,589 6,419 Income tax provision 584 463 488 1,406 Net income $ 2,080 $ 2,021 $ 2,101 $ 5,013 Basic earnings per share $ 0.08 $ 0.08 $ 0.08 $ 0.20 Diluted earnings per share $ 0.08 $ 0.08 $ 0.08 $ 0.20 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest and dividend income $ 20,060 $ 20,215 $ 20,804 $ 21,037 Interest expense 5,734 6,014 6,276 6,113 Net interest and dividend income 14,326 14,201 14,528 14,924 Provision for loan losses 50 350 1,275 1,000 Gain (loss) on available-for-sale securities, net 35 (96 ) 49 (85 ) Unrealized gains (losses) on marketable equity securities, net 70 79 45 (29 ) Swap fee income 8 206 55 205 Other non-interest income 2,058 2,328 2,462 2,315 Non-interest income 2,171 2,517 2,611 2,406 Non-interest expense 12,023 12,140 11,740 11,905 Income before income taxes 4,424 4,228 4,124 4,425 Income tax provision 994 971 899 988 Net income $ 3,430 $ 3,257 $ 3,225 $ 3,437 Basic earnings per share $ 0.13 $ 0.13 $ 0.12 $ 0.13 Diluted earnings per share $ 0.13 $ 0.12 $ 0.12 $ 0.13 (1) The decrease in interest expense for the three months ended December 31, 2020 was due to a decrease of $ 933,000 611,000 (2) The increase in non-interest expense for the three months ended December 31, 2020 was primarily driven by a $ 987,000 50 (1) The decrease in interest expense for the three months ended December 31, 2020 was due to a decrease of $933,000 in interest expense on deposits and $611,000 in interest expense on FHLB borrowings, both resulting from repricing liabilities in the continued low-rate environment as well as the pay down of high-rate FHLB borrowings. (2) The increase in non-interest expense for the three months ended December 31, 2020 was primarily driven by a $987,000 expense resulting from the early extinguishment of $50.0 million in FHLB borrowings. |
Schedule of estimated useful li
Schedule of estimated useful lives of assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 39 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Schedule of earrings per common
Schedule of earrings per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accounting Policies [Abstract] | ||||||||||||
Net income applicable to common stock | $ 5,013 | $ 2,101 | $ 2,021 | $ 2,080 | $ 3,437 | $ 3,225 | $ 3,257 | $ 3,430 | $ 11,215 | $ 13,349 | $ 16,408 | |
Average number of common shares issued | 25,751 | 26,959 | 29,734 | |||||||||
Less: Average unallocated ESOP Shares | (580) | (667) | (757) | |||||||||
Less: Average unvested equity incentive plan shares | (124) | (107) | (90) | |||||||||
Average number of common shares outstanding used to calculate basic earnings per common share | 25,047 | 26,185 | 28,887 | |||||||||
Effect of dilutive equity incentive plan | 45 | 46 | ||||||||||
Effect of dilutive stock options | 15 | 73 | 96 | |||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 25,062 | 26,303 | 29,029 | |||||||||
Basic earnings per share | $ 0.20 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.13 | $ 0.12 | $ 0.13 | $ 0.13 | $ 0.45 | $ 0.51 | $ 0.57 | |
Diluted earnings per share | $ 0.20 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.13 | $ 0.45 | $ 0.51 | $ 0.57 | |
Anti-dilutive shares | [1] | 259 | ||||||||||
[1] | Shares outstanding but not included because the impact of these shares would be anti-dilutive to the earnings per share calculation for the periods presented. |
Schedule of accumulated other c
Schedule of accumulated other comprehensive loss included in shareholders equity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | $ (11,279) | $ (8,968) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) before tax | 1,302 | (393) |
Tax effect | (339) | 71 |
Accumulated other comprehensive loss | 963 | (322) |
Accumulated Other Comprehensive Income (Loss), Derivative Qualifying as Hedge, Excluded Component, Including Portion Attributable to Noncontrolling Interest [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Tax effect | 192 | 928 |
Accumulated other comprehensive loss | (492) | (2,371) |
Fair value of derivatives used for cash flow hedges | (1,773) | |
Termination fee on cancelled cash flow hedges | (684) | (1,526) |
Total derivatives | (684) | (3,299) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) before tax | (16,344) | (8,728) |
Tax effect | 4,594 | 2,453 |
Accumulated other comprehensive loss | $ (11,750) | $ (6,275) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands | Mar. 27, 2020USD ($) | Dec. 31, 2020USD ($)Number | Dec. 31, 2019 |
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Number of banking offices in which bank operates | Number | 25 | ||
Loan-to-value ratio requiring private mortgage insurance | 80.00% | ||
CARES Act Funding Amount | $ 2,200,000,000 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Defined benefit plan actuarial loss recognized as a component of net periodic pension cost | $ 934 | ||
401 (k) [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Employer matching contribution for the first 6% of each participant's annual earnings | 50.00% | ||
Maximum percentage of participant's annual earnings subject to match by employer for 401(K) plan | 6.00% | ||
PPP Loan [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Monthly payroll costs multiplier for loan amount | 2.5 | ||
Maximum amount available for loan | $ 10,000 | ||
Interest rate | 1.00% | ||
Percentage of loans guaranteed | 100.00% | ||
Percentage of loan proceeds for payroll expenses | 60.00% | ||
Percentage of loan proceeds for other expenses | 40.00% |
The amortized cost and fair val
The amortized cost and fair values of available-for-sale investment securities at December 31, 2020 and 2019 are summarized as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 200,578 | $ 228,101 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,902 | 996 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (600) | (1,389) |
Available-for-sale Securities | 201,880 | 227,708 |
Government Sponsored Enterprise Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 14,871 | 20,150 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 15 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (111) | (136) |
Available-for-sale Securities | 14,775 | 20,014 |
State And Municipal Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 405 | 2,718 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 95 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | ||
Available-for-sale Securities | 406 | 2,813 |
Corporate Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 3,039 | 7,800 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 36 | 88 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (22) | |
Available-for-sale Securities | 3,075 | 7,866 |
Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 18,315 | 30,668 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 52 | 183 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (111) | (158) |
Available-for-sale Securities | 18,256 | 30,693 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 161,290 | 186,236 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,742 | 780 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (303) | (1,015) |
Available-for-sale Securities | 162,729 | 186,001 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 20,973 | 11,197 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 108 | 33 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (186) | (216) |
Available-for-sale Securities | 20,895 | 11,014 |
Collateralized Mortgage Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 182,263 | 197,433 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,850 | 813 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (489) | (1,231) |
Available-for-sale Securities | $ 183,624 | $ 197,015 |
The amortized cost and fair v_2
The amortized cost and fair value of available-for-sale debt securities at December 31, 2020, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, Total | $ 200,578 | $ 228,101 |
Available for Sale Securities, Fair Value, Total | 201,880 | |
Debt Security, Corporate, US [Member] | ||
Marketable Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, Due after one year through five years | 3,444 | |
Available for Sale Securities, Fair Value, Due after one year through five years | 3,481 | |
Available for Sale Securities, Fair Value, Due after five year through ten years | 9,891 | |
Available for Sale Securities, Fair Value, Due after five years through ten years | 9,884 | |
Available for Sale Securities, Amortized Cost, Due after ten years | 4,980 | |
Available for Sale Securities, Fair Value, Due after ten years | 4,891 | |
Available for Sale Securities, Amortized Cost, Total | 18,315 | |
Available for Sale Securities, Fair Value, Total | 18,256 | |
Collateralized Mortgage Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available for Sale Securities, Amortized Cost, Total | 182,263 | $ 197,433 |
Available for Sale Securities, Fair Value, Total | $ 183,624 |
Gross realized gains and losses
Gross realized gains and losses on sales of securities available-for-sale for the years ended December 31, 2020, 2019 and 2018 are as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||||||||||
Gross gains realized | $ 2,188 | $ 160 | |||||||||
Gross losses realized | (223) | (257) | (281) | ||||||||
Net gain (loss) realized | $ 1,929 | $ 13 | $ 23 | $ (85) | $ 49 | $ (96) | $ 35 | $ 1,965 | $ (97) | $ (281) |
Information pertaining to secur
Information pertaining to securities with gross unrealized losses at December 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: (Details) $ in Thousands | Dec. 31, 2020USD ($)Number | Dec. 31, 2019USD ($)Number |
Marketable Securities [Line Items] | ||
Available for sale, Less Than 12 Months Fair Value | $ 47,417 | $ 61,764 |
Available for sale, Less Than 12 Months Gross Unrealized Losses | 411 | 277 |
Available for sale, Over 12 Months Fair Value | 4,208 | 79,805 |
Available for sale, Over 12 Months Gross Unrealized Losses | $ 189 | $ 1,112 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of Securities - less than 12 months | Number | Number | 16 | 17 |
Available for sale, Less Than 12 Months Fair Value | $ 27,091 | $ 42,834 |
Available for sale, Less Than 12 Months Gross Unrealized Losses | $ 225 | $ 122 |
Depreciation from Amortized Cost Basis (%) - less than 12 months | 0.80% | 0.30% |
Number of Securities - Over 12 Months | Number | Number | 2 | 43 |
Available for sale, Over 12 Months Fair Value | $ 1,815 | $ 70,581 |
Available for sale, Over 12 Months Gross Unrealized Losses | $ 78 | $ 893 |
Depreciation from Amortized Cost Basis (%) - Over 12 months | 4.10% | 1.20% |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Marketable Securities [Line Items] | ||
Number of Securities - less than 12 months | Number | Number | 3 | 2 |
Available for sale, Less Than 12 Months Fair Value | $ 10,458 | $ 2,783 |
Available for sale, Less Than 12 Months Gross Unrealized Losses | $ 75 | $ 13 |
Depreciation from Amortized Cost Basis (%) - less than 12 months | 0.70% | 0.50% |
Number of Securities - Over 12 Months | Number | Number | 2 | 4 |
Available for sale, Over 12 Months Fair Value | $ 2,393 | $ 4,688 |
Available for sale, Over 12 Months Gross Unrealized Losses | $ 111 | $ 203 |
Depreciation from Amortized Cost Basis (%) - Over 12 months | 4.40% | 4.20% |
US government sponsored enterprises obligation securities | ||
Marketable Securities [Line Items] | ||
Number of Securities - less than 12 months | Number | Number | 2 | 5 |
Available for sale, Less Than 12 Months Fair Value | $ 9,868 | $ 14,524 |
Available for sale, Less Than 12 Months Gross Unrealized Losses | $ 111 | $ 126 |
Depreciation from Amortized Cost Basis (%) - less than 12 months | 1.10% | 0.90% |
Number of Securities - Over 12 Months | Number | Number | 1 | |
Available for sale, Over 12 Months Fair Value | $ 1,490 | |
Available for sale, Over 12 Months Gross Unrealized Losses | $ 10 | |
Depreciation from Amortized Cost Basis (%) - Over 12 months | 0.70% | |
Corporate Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of Securities - less than 12 months | Number | Number | 1 | |
Available for sale, Less Than 12 Months Fair Value | $ 1,623 | |
Available for sale, Less Than 12 Months Gross Unrealized Losses | $ 16 | |
Depreciation from Amortized Cost Basis (%) - less than 12 months | 1.00% | |
Number of Securities - Over 12 Months | Number | Number | 1 | |
Available for sale, Over 12 Months Fair Value | $ 3,046 | |
Available for sale, Over 12 Months Gross Unrealized Losses | $ 6 | |
Depreciation from Amortized Cost Basis (%) - Over 12 months | 0.20% |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Marketable Securities [Line Items] | |||
Proceeds from redemptions and sales | $ 96.3 | $ 72.2 | $ 12.5 |
Collateralized Mortgage Backed Securities [Member] | |||
Marketable Securities [Line Items] | |||
Fair value of collateralized public deposits | $ 74.3 |
Major classifications of loans
Major classifications of loans at the periods indicated were as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | $ 1,926,846 | $ 1,771,770 | |||
Unamortized PPP loan fees | (3,050) | ||||
Unearned premiums and deferred loan fees and costs, net | 3,587 | 4,264 | |||
Allowance for loan losses | (21,157) | (14,102) | $ (12,053) | $ (10,831) | |
Net loans | 1,906,226 | 1,761,932 | |||
Commercial Real Estate [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 833,949 | [1],[2] | 816,886 | ||
Allowance for loan losses | (13,020) | (6,807) | (5,260) | (4,712) | |
Residential Mortgage [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 604,719 | 597,727 | |||
Home Equity Line of Credit [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 103,905 | 102,517 | |||
Commercial and Industrial Payment Protection Program [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 167,258 | ||||
Commercial And Industrial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 211,823 | 248,893 | |||
Allowance for loan losses | (3,630) | (3,183) | (3,114) | (2,733) | |
Consumer Loan [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total gross loans | 5,192 | [1],[2] | 5,747 | ||
Allowance for loan losses | $ (241) | $ (203) | $ (135) | $ (71) | |
[1] | Excludes PPP loans and deferred fees | ||||
[2] | Residential includes home equity loans and lines of credit |
The table below breaks out the
The table below breaks out the remaining modifications granted under the CARES Act at December 31, 2020: (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)Number | Dec. 31, 2019USD ($)Number | |||
Financing Receivable, Past Due [Line Items] | ||||
Total gross loans | $ 1,926,846 | $ 1,771,770 | ||
Total Loans Non PPE [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total gross loans | [1],[2] | $ 1,759,588 | ||
Percentage of toal loans | [1],[2] | 100.00% | ||
CARES Act Modifications [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | $ 76,900 | [1],[2] | $ 261,000 | |
Number of loans modified | Number | 47 | [1],[2] | 525 | |
Percentage of financing receivable modifications loans | 4.40% | [1],[2] | 15.00% | |
Loans Under 1st Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 8,500 | ||
Number of loans modified | Number | [1],[2] | 15 | ||
Percentage of financing receivable modifications loans | [1],[2] | 0.50% | ||
Loans Granted Subsequent Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 68,400 | ||
Number of loans modified | Number | [1],[2] | 32 | ||
Percentage of financing receivable modifications loans | [1],[2] | 3.90% | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total gross loans | $ 833,949 | [1],[2] | $ 816,886 | |
Percentage of toal loans | [1],[2] | 47.40% | ||
Modification balance | $ 64,000 | |||
Commercial Real Estate [Member] | CARES Act Modifications [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 64,000 | ||
Number of loans modified | Number | [1],[2] | 19 | ||
Percentage of financing receivable modifications loans | [1],[2] | 7.70% | ||
Commercial Real Estate [Member] | Loans Under 1st Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 6,200 | ||
Number of loans modified | Number | [1],[2] | 2 | ||
Percentage of financing receivable modifications loans | [1],[2] | 0.70% | ||
Commercial Real Estate [Member] | Loans Granted Subsequent Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 57,800 | ||
Number of loans modified | Number | [1],[2] | 17 | ||
Percentage of financing receivable modifications loans | [1],[2] | 6.90% | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total gross loans | [1],[2] | $ 211,900 | ||
Percentage of toal loans | [1],[2] | 12.00% | ||
Commercial and Industrial [Member] | CARES Act Modifications [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 9,300 | ||
Number of loans modified | Number | [1],[2] | 10 | ||
Percentage of financing receivable modifications loans | [1],[2] | 4.40% | ||
Commercial and Industrial [Member] | Loans Under 1st Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 1,100 | ||
Number of loans modified | Number | [1],[2] | 4 | ||
Percentage of financing receivable modifications loans | [1],[2] | 0.50% | ||
Commercial and Industrial [Member] | Loans Granted Subsequent Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 8,200 | ||
Number of loans modified | Number | [1],[2] | 6 | ||
Percentage of financing receivable modifications loans | [1],[2] | 3.90% | ||
Residential Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total gross loans | $ 708,624 | [1],[2] | 700,244 | |
Percentage of toal loans | [1],[2] | 40.30% | ||
Residential Portfolio Segment [Member] | CARES Act Modifications [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 3,600 | ||
Number of loans modified | Number | [1],[2] | 16 | ||
Percentage of financing receivable modifications loans | [1],[2] | 0.50% | ||
Residential Portfolio Segment [Member] | Loans Under 1st Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 1,200 | ||
Number of loans modified | Number | [1],[2] | 8 | ||
Percentage of financing receivable modifications loans | [1],[2] | 0.20% | ||
Residential Portfolio Segment [Member] | Loans Granted Subsequent Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 2,400 | ||
Number of loans modified | Number | [1],[2] | 8 | ||
Percentage of financing receivable modifications loans | [1],[2] | 0.30% | ||
Consumer Loan [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total gross loans | $ 5,192 | [1],[2] | $ 5,747 | |
Percentage of toal loans | [1],[2] | 0.30% | ||
Consumer Loan [Member] | CARES Act Modifications [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 0 | ||
Number of loans modified | Number | [1],[2] | 2 | ||
Percentage of financing receivable modifications loans | [1],[2] | 0.70% | ||
Consumer Loan [Member] | Loans Under 1st Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 0 | ||
Number of loans modified | Number | [1],[2] | 1 | ||
Percentage of financing receivable modifications loans | [1],[2] | 0.00% | ||
Consumer Loan [Member] | Loans Granted Subsequent Modification [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Modification balance | [1],[2] | $ 0 | ||
Number of loans modified | Number | [1],[2] | 1 | ||
Percentage of financing receivable modifications loans | [1],[2] | 0.00% | ||
[1] | Excludes PPP loans and deferred fees | |||
[2] | Residential includes home equity loans and lines of credit |
The following table provides so
The following table provides some insight into the composition of the Bank's loan portfolio and remaining loan modifications, excluding PPP loans, as of December 31, 2020: (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Balance Modified | 4.40% | [1] |
PPP Loans | $ 167.3 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 47.40% | [2] |
Percentage of Risk-Based Capital | 341.00% | |
Percentage of Balance Modified | 7.70% | [1] |
Modified balance | $ 64 | |
Commercial Real Estate [Member] | Apartment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 9.20% | [2] |
Percentage of Risk-Based Capital | 66.50% | |
Commercial Real Estate [Member] | Office [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 8.40% | [2] |
Percentage of Risk-Based Capital | 60.30% | |
Commercial Real Estate [Member] | Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 6.80% | [2] |
Percentage of Risk-Based Capital | 49.10% | |
Percentage of Balance Modified | 2.50% | [1] |
Commercial Real Estate [Member] | Retail Shopping [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 6.40% | [2] |
Percentage of Risk-Based Capital | 46.10% | |
Commercial Real Estate [Member] | Hotel [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 3.20% | [2] |
Percentage of Risk-Based Capital | 23.00% | |
Percentage of Balance Modified | 90.50% | [1] |
Commercial Real Estate [Member] | Residential Non Owner [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 2.60% | [2] |
Percentage of Risk-Based Capital | 19.00% | |
Commercial Real Estate [Member] | Auto Sales [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 2.10% | [2] |
Percentage of Risk-Based Capital | 14.80% | |
Commercial Real Estate [Member] | Mixed-Use [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 2.10% | [2] |
Percentage of Risk-Based Capital | 15.10% | |
Commercial Real Estate [Member] | Adult care/Assisted living [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 2.00% | [2] |
Percentage of Risk-Based Capital | 14.70% | |
Percentage of Balance Modified | 20.90% | [1] |
Commercial Real Estate [Member] | College/school [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 1.60% | [2] |
Percentage of Risk-Based Capital | 11.30% | |
Percentage of Balance Modified | 0.50% | [1] |
Commercial Real Estate [Member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 1.20% | [2] |
Percentage of Risk-Based Capital | 8.30% | |
Percentage of Balance Modified | 7.60% | [1] |
Commercial Real Estate [Member] | Auto service [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.60% | [2] |
Percentage of Risk-Based Capital | 4.10% | |
Commercial Real Estate [Member] | Gas station/convenience store [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.60% | [2] |
Percentage of Risk-Based Capital | 4.50% | |
Commercial Real Estate [Member] | Restaurant [Member | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.60% | [2] |
Percentage of Risk-Based Capital | 4.10% | |
Percentage of Balance Modified | 7.90% | [1] |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 12.00% | [2] |
Percentage of Risk-Based Capital | 86.70% | [3] |
Percentage of Balance Modified | 4.40% | [1] |
Modified balance | $ 9.3 | |
Commercial and Industrial Sector [Member] | Auto Sales [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.40% | [2] |
Percentage of Risk-Based Capital | 3.00% | |
Commercial and Industrial Sector [Member] | Manufacturing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 2.90% | [2] |
Percentage of Risk-Based Capital | 20.60% | |
Percentage of Balance Modified | 0.30% | [1] |
Commercial and Industrial Sector [Member] | Wholesale Trade [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 2.00% | [2] |
Percentage of Risk-Based Capital | 14.20% | |
Commercial and Industrial Sector [Member] | Specialty Trade [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.60% | [2] |
Percentage of Risk-Based Capital | 4.50% | |
Commercial and Industrial Sector [Member] | Heavy and civil engineering construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.80% | [2] |
Percentage of Risk-Based Capital | 5.50% | |
Percentage of Balance Modified | 2.40% | [1] |
Commercial and Industrial Sector [Member] | Educational Services [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.60% | [2] |
Percentage of Risk-Based Capital | 4.40% | |
Percentage of Balance Modified | 0.50% | [1] |
Commercial and Industrial Sector [Member] | Transportation and Warehouse [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.70% | [2] |
Percentage of Risk-Based Capital | 5.00% | |
Percentage of Balance Modified | 55.30% | [1] |
Commercial and Industrial Sector [Member] | Healthcare and social assistance [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.40% | [2] |
Percentage of Risk-Based Capital | 3.00% | |
Percentage of Balance Modified | 15.40% | [1] |
Commercial and Industrial Sector [Member] | All other C&I [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 3.60% | [2],[3] |
Percentage of Risk-Based Capital | 25.50% | [3] |
Percentage of Balance Modified | 1.30% | [1],[3] |
Residential and consumer loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 40.60% | [2] |
Percentage of Balance Modified | 0.50% | [1] |
Residential and consumer loans [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 40.30% | [2] |
Percentage of Risk-Based Capital | 289.80% | |
Percentage of Balance Modified | 0.50% | [1] |
Modified balance | $ 3.6 | |
Residential and consumer loans [Member] | Consumer Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Percentage of Total Loans | 0.30% | [2] |
Percentage of Risk-Based Capital | 2.10% | |
Percentage of Balance Modified | 0.70% | [1] |
[1] | Modified balances as of December 31, 2020 (Commercial real estate loans $ 64.0 9.3 3.6 | |
[2] | Excludes PPP loans of $ 167.3 | |
[3] | Other consists of multiple industries. |
A summary of the activity in th
A summary of the activity in the balances of mortgage servicing rights follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Balance at the beginning of year: | $ 219 | $ 286 |
Amortization | (64) | (67) |
Write-down of mortgage servicing asset to fair value | (2) | |
Balance at the end of year | 153 | 219 |
Fair value at the end of year | $ 157 | $ 345 |
An analysis of changes in the a
An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2020, 2019 and 2018 is as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||
Balance at beginning | $ 14,102 | $ 12,053 | $ 14,102 | $ 12,053 | $ 10,831 | ||||||
Provision (credit) | $ 500 | $ 2,725 | $ 2,450 | 2,100 | $ 1,000 | $ 1,275 | $ 350 | 50 | 7,775 | 2,675 | 1,900 |
Charge-offs | (963) | (1,700) | (1,150) | ||||||||
Recoveries | 243 | 1,074 | 472 | ||||||||
Balance at end | 21,157 | 14,102 | 21,157 | 14,102 | 12,053 | ||||||
Commercial Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||
Balance at beginning | 6,807 | 5,260 | 6,807 | 5,260 | 4,712 | ||||||
Provision (credit) | 6,262 | 1,343 | 214 | ||||||||
Charge-offs | (107) | (669) | (35) | ||||||||
Recoveries | 58 | 873 | 369 | ||||||||
Balance at end | 13,020 | 6,807 | 13,020 | 6,807 | 5,260 | ||||||
Residential Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||
Balance at beginning | 3,920 | 3,556 | 3,920 | 3,556 | 3,311 | ||||||
Provision (credit) | 408 | 618 | 863 | ||||||||
Charge-offs | (177) | (320) | (645) | ||||||||
Recoveries | 89 | 66 | 27 | ||||||||
Balance at end | 4,240 | 3,920 | 4,240 | 3,920 | 3,556 | ||||||
Commercial And Industrial [Member] | |||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||
Balance at beginning | 3,183 | 3,114 | 3,183 | 3,114 | 2,733 | ||||||
Provision (credit) | 939 | 509 | 660 | ||||||||
Charge-offs | (543) | (514) | (299) | ||||||||
Recoveries | 51 | 74 | 20 | ||||||||
Balance at end | 3,630 | 3,183 | 3,630 | 3,183 | 3,114 | ||||||
Consumer Loan [Member] | |||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||
Balance at beginning | 203 | 135 | 203 | 135 | 71 | ||||||
Provision (credit) | 129 | 204 | 179 | ||||||||
Charge-offs | (136) | (197) | (171) | ||||||||
Recoveries | 45 | 61 | 56 | ||||||||
Balance at end | 241 | 203 | 241 | 203 | 135 | ||||||
Unallocated [Member] | |||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||
Balance at beginning | $ (11) | $ (12) | (11) | (12) | 4 | ||||||
Provision (credit) | 37 | 1 | (16) | ||||||||
Balance at end | $ 26 | $ (11) | $ 26 | $ (11) | $ (12) |
The following table presents in
The following table presents information pertaining to the allowance for loan losses by segment, excluding PPP loans, for the dates indicated: (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for non-impaired loans | $ 21,157 | $ 14,102 | ||||
Total allowance for loan losses | 21,157 | 14,102 | $ 12,053 | $ 10,831 | ||
Impaired loans | 20,632 | 7,662 | ||||
Non-impaired loans | 1,730,488 | 1,752,291 | ||||
Impaired loans acquired with deteriorated credit quality | 8,468 | 11,817 | ||||
Total loans | 1,926,846 | 1,771,770 | ||||
Total Loans Non PPE [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | [1],[2] | 1,759,588 | ||||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for non-impaired loans | 13,020 | 6,807 | ||||
Total allowance for loan losses | 13,020 | 6,807 | 5,260 | 4,712 | ||
Impaired loans | 11,803 | 3,457 | ||||
Non-impaired loans | 816,406 | 805,007 | ||||
Impaired loans acquired with deteriorated credit quality | 5,740 | 8,422 | ||||
Total loans | 833,949 | [1],[2] | 816,886 | |||
Residential Portfolio Segment [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for non-impaired loans | 4,240 | 3,920 | ||||
Total allowance for loan losses | 4,240 | 3,920 | 3,556 | 3,311 | ||
Impaired loans | 4,363 | 3,575 | ||||
Non-impaired loans | 701,915 | 694,080 | ||||
Impaired loans acquired with deteriorated credit quality | 2,346 | 2,589 | ||||
Total loans | 708,624 | [1],[2] | 700,244 | |||
Commercial And Industrial [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for non-impaired loans | 3,630 | 3,183 | ||||
Total allowance for loan losses | 3,630 | 3,183 | 3,114 | 2,733 | ||
Impaired loans | 4,439 | 588 | ||||
Non-impaired loans | 207,002 | 247,499 | ||||
Impaired loans acquired with deteriorated credit quality | 382 | 806 | ||||
Total loans | 211,823 | 248,893 | ||||
Consumer Loan [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for non-impaired loans | 241 | 203 | ||||
Total allowance for loan losses | 241 | 203 | 135 | 71 | ||
Impaired loans | 27 | 42 | ||||
Non-impaired loans | 5,165 | 5,705 | ||||
Total loans | 5,192 | [1],[2] | 5,747 | |||
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Amount of allowance for non-impaired loans | 26 | (11) | ||||
Total allowance for loan losses | $ 26 | $ (11) | $ (12) | $ 4 | ||
[1] | Excludes PPP loans and deferred fees | |||||
[2] | Residential includes home equity loans and lines of credit |
The following tables present an
The following tables present an age analysis of past due loans, excluding PPP loans, as of the dates indicated: (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | $ 13,522 | $ 13,802 | ||
Total Current Loans | 1,746,066 | 1,757,968 | ||
Total loans | 1,926,846 | 1,771,770 | ||
Non-Accrual Loans | 7,841 | 9,881 | ||
Total Loans Non PPE [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | [1],[2] | 1,759,588 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 7,741 | 6,818 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 3,662 | 2,600 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 2,119 | 4,384 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 10,244 | 6,655 | ||
Total Current Loans | 823,705 | 810,231 | ||
Total loans | 833,949 | [1],[2] | 816,886 | |
Non-Accrual Loans | 1,632 | 3,843 | ||
Commercial Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 5,844 | 2,784 | ||
Commercial Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 3,144 | 1,234 | ||
Commercial Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 1,256 | 2,637 | ||
Residential Mortgage [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 2,751 | 4,690 | ||
Total Current Loans | 601,968 | 593,037 | ||
Total loans | 604,719 | 597,727 | ||
Non-Accrual Loans | 5,353 | 4,548 | ||
Residential Mortgage [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 1,684 | 2,574 | ||
Residential Mortgage [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 360 | 683 | ||
Residential Mortgage [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 707 | 1,433 | ||
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 25 | 267 | ||
Total Current Loans | 103,880 | 102,250 | ||
Total loans | 103,905 | 102,517 | ||
Non-Accrual Loans | 124 | 445 | ||
Home Equity Line of Credit [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 25 | 80 | ||
Home Equity Line of Credit [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 38 | |||
Home Equity Line of Credit [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 149 | |||
Commercial And Industrial [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 480 | 2,149 | ||
Total Current Loans | 211,343 | 246,744 | ||
Total loans | 211,823 | 248,893 | ||
Non-Accrual Loans | 705 | 1,003 | ||
Commercial And Industrial [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 166 | 1,356 | ||
Commercial And Industrial [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 158 | 645 | ||
Commercial And Industrial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 156 | 148 | ||
Consumer Loan [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | 22 | 41 | ||
Total Current Loans | 5,170 | 5,706 | ||
Total loans | 5,192 | [1],[2] | 5,747 | |
Non-Accrual Loans | 27 | 42 | ||
Consumer Loan [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | $ 22 | 24 | ||
Consumer Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total Past Due Loans | $ 17 | |||
[1] | Excludes PPP loans and deferred fees | |||
[2] | Residential includes home equity loans and lines of credit |
The following is a summary of i
The following is a summary of impaired loans by class: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | [1] | $ 29,100 | $ 19,479 |
Unpaid Principal Balance | [1] | 33,521 | 25,084 |
Average Recorded Investment | [1] | 28,691 | 26,050 |
Interest Income Recognized | [1] | 804 | 830 |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | [1] | 17,543 | 11,879 |
Unpaid Principal Balance | [1] | 18,590 | 13,914 |
Average Recorded Investment | [1] | 18,284 | 15,678 |
Interest Income Recognized | [1] | 516 | 595 |
Residential Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | [1] | 6,544 | 5,695 |
Unpaid Principal Balance | [1] | 7,647 | 6,383 |
Average Recorded Investment | [1] | 5,815 | 6,550 |
Interest Income Recognized | [1] | 66 | 104 |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | [1] | 165 | 469 |
Unpaid Principal Balance | [1] | 207 | 539 |
Average Recorded Investment | [1] | 371 | 415 |
Interest Income Recognized | [1] | 5 | |
Commercial And Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | [1] | 4,821 | 1,394 |
Unpaid Principal Balance | [1] | 7,038 | 4,192 |
Average Recorded Investment | [1] | 4,186 | 3,359 |
Interest Income Recognized | [1] | 217 | 131 |
Consumer Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | [1] | 27 | 42 |
Unpaid Principal Balance | [1] | 39 | 56 |
Average Recorded Investment | [1] | $ 35 | $ 48 |
[1] | Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. |
Loans modifications classified
Loans modifications classified as TDRs during the twelve months ended December 31, 2020 and 2019 are included in the table below. (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Number | Dec. 31, 2019USD ($)Number | |
Troubled Debt Restructurings | ||
Number of Contracts | Number | 14 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 8,382 | $ 2,415 |
Post-Modification Outstanding Recorded Investment | $ 8,382 | $ 2,415 |
Commercial Real Estate [Member] | ||
Troubled Debt Restructurings | ||
Number of Contracts | Number | 5 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 4,576 | $ 2,032 |
Post-Modification Outstanding Recorded Investment | $ 4,576 | $ 2,032 |
Commercial And Industrial [Member] | ||
Troubled Debt Restructurings | ||
Number of Contracts | Number | 9 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 3,806 | $ 383 |
Post-Modification Outstanding Recorded Investment | $ 3,806 | $ 383 |
The following is a summary of l
The following is a summary of loans acquired with evidence of credit deterioration from Chicopee Savings Bank (“Chicopee”) as of December 31, 2020. (Details) - Chicopee Bancorp Inc [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Loans receivable - Contractual Required Payments Receivable beginning | $ 20,689 |
Loans receivable - Cash Expected To Be Collected beginning | 15,909 |
Loans receivable - Non-Accretable Discount beginning | 4,780 |
Loans receivable - Accretable Yield beginning | 4,092 |
Loans receivable - Outstanding beginning | 11,817 |
Collections - Contractually Required Payments Receivable | (5,339) |
Collections - Cash Expected to be Collected | (3,762) |
Collections - Non-Accretable Discount | (1,577) |
Collections - Accretable Yield | (446) |
Collections | (3,316) |
Dispositions - Contractually Required Payments Receivable | (1,053) |
Dispositions - Cash Expected to be Collected | (662) |
Dispositions - Non-Accretable Discount | (391) |
Dispositions - Accretable Yield | (629) |
Dispositions | (33) |
Loans receivable - Contractual Required Payments Receivable ending | 14,297 |
Loans receivable - Cash Expected To Be Collected ending | 11,485 |
Loans receivable - Non-Accretable Discount ending | 2,812 |
Loans receivable - Accretable Yield ending | 3,017 |
Loans receivable - Outstanding ending | $ 8,468 |
The following table presents ou
The following table presents our loans by risk rating for the periods indicated: (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | $ 1,926,846 | $ 1,771,770 | |
Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 1,779,752 | 1,688,495 | |
Special Mention (Rated 5) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 92,078 | 25,934 | |
Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 55,016 | 57,341 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 833,949 | [1],[2] | 816,886 |
Commercial Real Estate [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 726,751 | 766,124 | |
Commercial Real Estate [Member] | Special Mention (Rated 5) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 78,207 | 23,138 | |
Commercial Real Estate [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 28,991 | 27,624 | |
Residential Mortgage [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 604,719 | 597,727 | |
Residential Mortgage [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 598,250 | 591,911 | |
Residential Mortgage [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 6,469 | 5,816 | |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 103,905 | 102,517 | |
Home Equity Line of Credit [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 103,619 | 101,908 | |
Home Equity Line of Credit [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 286 | 609 | |
Commercial and Industrial Sector [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 379,081 | 248,893 | |
Commercial and Industrial Sector [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 345,967 | 222,847 | |
Commercial and Industrial Sector [Member] | Special Mention (Rated 5) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 13,871 | 2,796 | |
Commercial and Industrial Sector [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 19,243 | 23,250 | |
Consumer Loan [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 5,192 | [1],[2] | 5,747 |
Consumer Loan [Member] | Pass (Rated 1 - 4) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 5,165 | 5,705 | |
Consumer Loan [Member] | Substandard (Rated 6) [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | $ 27 | $ 42 | |
[1] | Excludes PPP loans and deferred fees | ||
[2] | Residential includes home equity loans and lines of credit |
LOANS (Details Narrative)
LOANS (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2020USD ($)Number$ / Loans | Dec. 31, 2019USD ($)Number | Dec. 31, 2018USD ($) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Serviced commercial loans for participants | $ 52,900,000 | $ 24,200,000 | ||
Weighted average prepayment speed, PSA | 307.00% | |||
Weighted average internal rate of return | 12.05% | |||
Weighted average servicing fee percentage | 0.25% | |||
Net cost to service loans | $ / Loans | 83.99 | |||
Mortgage loans serviced for others | $ 38,100,000 | 48,200,000 | ||
Net service fee income | $ 44,000 | $ 67,000 | $ 89,000 | |
Percentage of non-accrual loans | 0.45% | 0.56% | ||
Troubled debt restructuring, subsequent default | $ 0 | $ 0 | ||
Troubled debt restructuring charge-offs | 0 | 715,000 | ||
CARES Act Modifications [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modification balance | $ 76,900,000 | [1],[2] | $ 261,000,000 | |
Number of loans modified | Number | 47 | [1],[2] | 525 | |
Percentage of financing receivable modifications loans | 4.40% | [1],[2] | 15.00% | |
[1] | Excludes PPP loans and deferred fees | |||
[2] | Residential includes home equity loans and lines of credit |
Schedule of premises and equipm
Schedule of premises and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 53,764 | $ 50,249 |
Less: accumulated depreciation and amortization | (28,661) | (26,486) |
Premises and equipment, net | 25,103 | 23,763 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 5,661 | 5,651 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 25,091 | 24,454 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 3,112 | 2,424 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 19,901 | $ 17,720 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 2.1 | $ 2.1 | $ 2.1 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of core deposit intangible | $ 375,000 | $ 376,000 | $ 375,000 |
Core Deposits [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired core deposit intangible | $ 4,500,000 | ||
Acquired core deposit intangible | 12 years | ||
Future amortization of core deposit intangible assets years 1-5 | $ 375,000 | ||
Future amortization of core deposit intangible assets thereafter | $ 1,100,000 |
Schedule of deposits accounts b
Schedule of deposits accounts by type (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Demand and interest-bearing checking: | ||
Interest-bearing checking accounts | $ 94,936 | $ 70,182 |
Demand deposits | 541,759 | 393,303 |
Savings: | ||
Regular accounts | 170,309 | 126,352 |
Money market accounts | 640,790 | 435,396 |
Time deposits | 590,336 | 652,631 |
Total deposits | $ 2,038,130 | $ 1,677,864 |
Schedule of maturities of time
Schedule of maturities of time deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits: | ||
2020 | $ 548,559 | |
2021 | 503,187 | 73,394 |
2022 | 68,920 | 18,382 |
2023 | 12,927 | 10,996 |
2024 | 3,203 | 1,300 |
2025 | 2,099 | |
Total time deposits | $ 590,336 | $ 652,631 |
Schedule of interest expense on
Schedule of interest expense on deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deposits: | |||
Regular accounts | $ 136 | $ 146 | $ 162 |
Money market accounts | 2,838 | 2,532 | 1,911 |
Time deposits | 10,139 | 14,152 | 9,270 |
Interest-bearing checking accounts | 387 | 377 | 340 |
Total | $ 13,500 | $ 17,207 | $ 11,683 |
DEPOSITS (Details Narrative)
DEPOSITS (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deposits: | |||
Brokered deposits | $ 55.3 | $ 21.5 | |
Time deposits over $250,000 or more | 179.4 | ||
Interest expense on time deposits $250,000 or more | 2.8 | 3.5 | |
Cash paid for interest on deposits | $ 13.6 | $ 17.2 | $ 11.7 |
The following advances are coll
The following advances are collateralized by a blanket lien on our residential real estate loans and certain eligible commercial real estate loans. (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fixed-rate advances maturing: | ||
2020 | $ 127,983 | |
2020 | 2.10% | |
2021 | $ 42,388 | $ 51,084 |
2021 | 1.50% | 2.30% |
2022 | $ 14,284 | $ 23,596 |
2022 | 0.40% | 1.90% |
2023 | $ 532 | $ 628 |
2023 | 0.20% | |
2024 | 646 | $ 2,224 |
2024 | 0.90% | |
Total long-term advances | $ 57,850 | $ 205,515 |
Weighted average rate | 1.20% | 2.10% |
SHORT-TERM BORROWINGS (Details
SHORT-TERM BORROWINGS (Details Narrative) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Line of credit available | $ 9.5 | $ 9.5 |
FRB Discount Window [Member] | ||
Short-term Debt [Line Items] | ||
Line of credit available | 16.1 | 16.1 |
Correspondent Bank 1 [Member] | ||
Short-term Debt [Line Items] | ||
Line of credit available | 15 | 15 |
Correspondent Bank 2 [Member] | ||
Short-term Debt [Line Items] | ||
Line of credit available | 50 | $ 50 |
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member] | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Borrowing capacity | $ 476.8 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Cash paid for interest | $ 3.6 | $ 4.4 | $ 4.2 |
Stock Options. A summary of the
Stock Options. A summary of the status of our stock options at December 31, 2020 is presented below: (Details) - Share-based Payment Arrangement, Option [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at beginning of period | shares | 218,214 |
Outstanding at beginning of period | $ / shares | $ 6.42 |
Outstanding at beginning of period | 2 years 7 months 13 days |
Outstanding at beginning of period | $ | $ 695 |
Exercised | shares | (7,239) |
Exercised | $ / shares | $ 5.81 |
Exercised | 1 month 13 days |
Exercised | $ | $ 7 |
Outstanding at end of period | shares | 210,975 |
Outstanding at end of period | $ / shares | $ 6.46 |
Outstanding at end of period | 1 year 8 months 1 day |
Outstanding at end of period | $ | $ 90 |
Exercisable at end of period | shares | 210,975 |
Exercisable at end of period | $ / shares | $ 6.46 |
Exercisable at end of period | 1 year 8 months 1 day |
Exercisable at end of period | $ | $ 90 |
The original and adjusted thres
The original and adjusted threshold, target and maximum metrics for 2019 under the 2017 grants are as follows: (Details) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
LTI Plan for 2017 [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2019 | 7.90% |
LTI Plan for 2017 [Member] | Original Threshold [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2019 | 6.50% |
LTI Plan for 2017 [Member] | Original Target [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2019 | 7.20% |
LTI Plan for 2017 [Member] | Adjusted Threshold [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2019 | 7.09% |
LTI Plan for 2017 [Member] | Adjusted Target [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2019 | 7.85% |
LTI Plan for 2017 [Member] | Adjusted Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2019 | 8.61% |
LTI Plan for 2018 [Member] | Original Threshold [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2018 | 6.30% |
December 31, 2019 | 6.85% |
December 31, 2020 | 7.40% |
LTI Plan for 2018 [Member] | Original Target [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2018 | 6.80% |
December 31, 2019 | 7.35% |
December 31, 2020 | 7.90% |
LTI Plan for 2018 [Member] | Stretch [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2018 | 7.20% |
December 31, 2019 | 7.75% |
December 31, 2020 | 8.30% |
LTI Plan for 2019 [Member] [Default Label] | Original Threshold [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2019 | 5.75% |
December 31, 2020 | 6.00% |
December 31, 2021 | 6.25% |
LTI Plan for 2019 [Member] [Default Label] | Original Target [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2019 | 6.13% |
December 31, 2020 | 6.75% |
December 31, 2021 | 7.00% |
LTI Plan for 2019 [Member] [Default Label] | Stretch [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2019 | 7.00% |
December 31, 2020 | 7.75% |
December 31, 2021 | 8.00% |
LTI Plan for 2020 [Member] | Original Threshold [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2020 | 5.00% |
December 31, 2021 | 5.62% |
December 31, 2022 | 6.29% |
Three-year Cumulative Diluted Earnings Per Share | $ 1.50 |
LTI Plan for 2020 [Member] | Original Target [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2020 | 5.48% |
December 31, 2021 | 6.24% |
December 31, 2022 | 6.99% |
Three-year Cumulative Diluted Earnings Per Share | $ 1.65 |
LTI Plan for 2020 [Member] | Stretch [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
December 31, 2020 | 6.00% |
December 31, 2021 | 6.86% |
December 31, 2022 | 7.69% |
Three-year Cumulative Diluted Earnings Per Share | $ 1.80 |
A summary of the status of rest
A summary of the status of restricted stock awards at December 31, 2020 and 2019 is presented below: (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance | 172,866 | 155,712 |
Beginning balance | $ 10.07 | $ 9.87 |
Shares granted | 145,980 | 108,718 |
Shares granted | $ 8.69 | $ 9.77 |
Shares forfeited | (30,193) | (1,842) |
Shares forfeited | $ 9.96 | $ 9.77 |
Shares vested | (109,955) | (89,722) |
Shares vested | $ 9 | $ 9.36 |
Ending balance | 178,698 | 172,866 |
Ending balance | $ 9.63 | $ 10.07 |
At December 31, 2020, the remai
At December 31, 2020, the remaining principal balances are payable as follows: (Details) - Loan to Employee Stock Ownership Plan Trust [Member] $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of Capitalization, Long-term Debt [Line Items] | |
2021 | $ 447 |
2022 | 447 |
2023 | 447 |
2024 | 447 |
2025 | 447 |
Thereafter | 2,795 |
Total | $ 5,030 |
Shares held by the ESOP include
Shares held by the ESOP include the following at December 31, 2020 and 2019: (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Payment Arrangement [Abstract] | |||
Allocated | 1,078,109 | 989,258 | |
Committed to be allocated | 85,101 | 88,117 | 90,978 |
Unallocated | 526,906 | 612,007 | |
Total | 1,690,116 | 1,689,382 |
STOCK PLANS AND EMPLOYEE STOC_3
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN (Details Narrative) | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020USD ($)shares | Feb. 29, 2020shares | Feb. 28, 2019shares | Jan. 31, 2018shares | May 31, 2017shares | Jan. 31, 2015shares | Jan. 31, 2007shares | Jan. 31, 2002Numbershares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | May 14, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Proceeds from Stock Options Exercised | $ | $ 43,000 | $ 106,000 | $ 114,000 | |||||||||
Share-based Payment Arrangement, Expense | $ | 834,000 | 773,000 | 845,000 | |||||||||
Tax (shortfall) benefits related to equity incentive plan expense | $ | (23,000) | 21,000 | 24,000 | |||||||||
Unrecognized compensation cost | $ | $ 966,000 | $ 966,000 | ||||||||||
Unrecognized compensation cost term | 1 year 7 months 6 days | |||||||||||
Employee age required to qualify for ESOP benefit | Number | 21 | |||||||||||
Minimum working hours needed for eligibility | Number | 1,000 | |||||||||||
Purchase of common stock by ESOP Trust of IPO, percent | 4.00% | 8.00% | ||||||||||
Purchase of common stock by ESOP Trust of IPO | 736,000 | 1,305,359 | ||||||||||
Number of shares sold in IPO | 18,400,000 | |||||||||||
Total ESOP compensation expense | $ | $ 551,000 | 834,000 | $ 960,000 | |||||||||
Fair value of unallocated ESOP shares | $ | $ 3,600,000 | $ 3,600,000 | $ 5,900,000 | |||||||||
Loan to Employee Stock Ownership Plan Trust [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Interest rate | 8.00% | 8.00% | ||||||||||
LTI Plan for 2017 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 83,812 | 89,042 | 89,042 | |||||||||
LTI Plan for 2019 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 108,718 | |||||||||||
LTI Plan for 2020 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 120,053 | |||||||||||
RSA Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 25,927 | |||||||||||
Share-based Payment Arrangement [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares authorized | 516,000 | |||||||||||
Shares granted | 48,560 | |||||||||||
Vesting term | 5 years | |||||||||||
Share-based Payment Arrangement [Member] | Share-based Payment Arrangement, Employee [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting term | 3 years | |||||||||||
Share-based Payment Arrangement [Member] | Share-based Payment Arrangement, Nonemployee [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting term | 1 year | |||||||||||
Time Based Shares [Member] | LTI Plan for 2017 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 50,852 | 55,159 | ||||||||||
Time Based Shares [Member] | LTI Plan for 2017 [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 17,908 | 21,276 | ||||||||||
Vesting term | 1 year | 1 year | ||||||||||
Time Based Shares [Member] | LTI Plan for 2017 [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 32,944 | 33,883 | ||||||||||
Vesting term | 3 years | 3 years | ||||||||||
Time Based Shares [Member] | LTI Plan for 2019 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 64,496 | |||||||||||
Time Based Shares [Member] | LTI Plan for 2019 [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 20,262 | |||||||||||
Vesting term | 1 year | |||||||||||
Time Based Shares [Member] | LTI Plan for 2019 [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 44,234 | |||||||||||
Vesting term | 3 years | |||||||||||
Time Based Shares [Member] | LTI Plan for 2020 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 69,898 | |||||||||||
Time Based Shares [Member] | LTI Plan for 2020 [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 19,760 | |||||||||||
Vesting term | 1 year | |||||||||||
Time Based Shares [Member] | LTI Plan for 2020 [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 50,138 | |||||||||||
Vesting term | 3 years | |||||||||||
Performance Shares [Member] | LTI Plan for 2017 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 33,883 | |||||||||||
Vesting term | 3 years | |||||||||||
Shares vested | 15,898 | |||||||||||
Shares forfeited | 16,803 | |||||||||||
Performance Shares [Member] | LTI Plan for 2017 [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percent of awards participants may earn | 150.00% | 150.00% | ||||||||||
Performance Shares [Member] | LTI Plan for 2017 [Member] | Original Threshold [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percent of awards participants may earn | 50.00% | 50.00% | ||||||||||
Performance Shares [Member] | LTI Plan for 2017 [Member] | Original Target [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percent of awards participants may earn | 100.00% | 100.00% | ||||||||||
Performance Shares [Member] | LTI Plan for 2018 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 32,960 | |||||||||||
Vesting term | 3 years | |||||||||||
Performance Shares [Member] | LTI Plan for 2019 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 44,222 | |||||||||||
Vesting term | 3 years | |||||||||||
Performance Shares [Member] | LTI Plan for 2019 [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percent of awards participants may earn | 150.00% | |||||||||||
Performance Shares [Member] | LTI Plan for 2019 [Member] | Original Threshold [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percent of awards participants may earn | 50.00% | |||||||||||
Performance Shares [Member] | LTI Plan for 2019 [Member] | Original Target [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percent of awards participants may earn | 100.00% | |||||||||||
Performance Shares [Member] | LTI Plan for 2020 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 50,155 | |||||||||||
Vesting term | 3 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||
Performance Shares [Member] | LTI Plan for 2020 [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percent of awards participants may earn | 150.00% | |||||||||||
Performance Shares [Member] | LTI Plan for 2020 [Member] | Original Threshold [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percent of awards participants may earn | 50.00% | |||||||||||
Performance Shares [Member] | LTI Plan for 2020 [Member] | Original Target [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percent of awards participants may earn | 100.00% | |||||||||||
Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 145,980 | 108,718 | ||||||||||
Shares vested | 109,955 | 89,722 | ||||||||||
Shares forfeited | 30,193 | 1,842 | ||||||||||
Fair value of restricted stock vested | $ | $ 844,000 |
RETIREMENT PLANS AND EMPLOYEE_3
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Number | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan, Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan target plan asset allocations | 50.00% | ||
Fixed Income Funds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan target plan asset allocations | 50.00% | ||
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Minimum working hours needed for eligibility | Number | 1,000 | ||
401 (k) [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution for the first 6% of each participant's annual earnings | 50.00% | ||
Maximum percentage of participant's annual earnings subject to match by employer for 401(K) plan | 6.00% | ||
Employer contribution to plan | $ | $ 468,000 | $ 423,000 | $ 398,000 |
The following table provides in
The following table provides information for the Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 36,158 | $ 27,309 | $ 29,345 |
Service cost | 1,396 | 1,095 | 1,269 |
Interest | 1,162 | 1,134 | 1,012 |
Actuarial loss (gain) | 9,690 | 7,074 | (3,887) |
Benefits paid | (814) | (454) | (430) |
Benefit obligation at end of year | 47,592 | 36,158 | 27,309 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 22,787 | 18,393 | 19,215 |
Actual return (loss) on plan assets | 3,191 | 3,923 | (1,192) |
Employer contribution | 1,100 | 925 | 800 |
Benefits paid | (814) | (454) | (430) |
Fair value of plan assets at end of year | 26,264 | 22,787 | 18,393 |
Funded status and accrued benefit at end of year | (21,328) | (13,371) | (8,916) |
Accumulated benefit obligation at end of year | $ 35,755 | $ 27,634 | $ 21,449 |
The following actuarial assumpt
The following actuarial assumptions were used in determining the pension benefit obligation (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Discount rate | 2.50% | 3.25% |
Rate of compensation increase | 4.00% | 4.00% |
Net pension cost includes the f
Net pension cost includes the following components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 1,396 | $ 1,095 | $ 1,269 |
Interest cost | 1,162 | 1,134 | 1,012 |
Expected return on assets | (1,526) | (1,233) | (1,387) |
Amortization of actuarial loss | 421 | 133 | 170 |
Net periodic pension cost | $ 1,453 | $ 1,129 | $ 1,064 |
The following actuarial assum_2
The following actuarial assumptions were used in determining the net periodic pension cost (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Discount rate | 3.25% | 4.25% | 3.60% |
Expected return on plan assets | 7.00% | 7.00% | 7.50% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
The following is a summary of t
The following is a summary of the Plan’s investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | $ 26,264 | $ 22,787 | $ 18,393 | $ 19,215 |
Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 13,332 | 11,033 | ||
United States Large Cap Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 6,763 | 5,458 | ||
International Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 3,960 | 3,528 | ||
US Small Mid Cap Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 1,131 | 975 | ||
Balanced/Asset Allocation [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 457 | |||
Other [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | $ 1,078 | $ 1,336 |
The following table summarizes
The following table summarizes the investments for which fair value is measured using NAV per share as a practical expedient for the years ended December 31, 2020 and 2019. (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | $ 26,264 | $ 22,787 | $ 18,393 | $ 19,215 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value | $ 26,264 | $ 22,787 | ||
Unfunded Commitments | n/a | n/a | ||
Redemption Frequency (if Currently Eligible) | Daily | Daily | ||
Redemption Notice Period | 1 day | 1 day |
We estimate that the benefits t
We estimate that the benefits to be paid from the pension plan (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |
2021 | $ 1,620 |
2022 | 1,955 |
2023 | 2,180 |
2024 | 2,497 |
2025 | 5,481 |
In aggregate for 2026-2030 | $ 16,900 |
The following table presents _2
The following table presents information about interest rate swaps at December 31, 2020 and December 31, 2019: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Notional Amount | $ 71,888 | $ 47,968 |
Estimated Fair Value | 0 | (1,798) |
Interest Rate Swap Agreement [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 35,000 | |
Weighted Average Maturity | 2 years 8 months 12 days | |
Derivative, Average Variable Interest Rate | 1.89% | |
Derivative, Average Fixed Interest Rate | 3.54% | |
Estimated Fair Value | $ (1,798) | |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 13,000 | |
Not Designated as Hedging Instrument [Member] | Loan-Level Swaps - Dealer [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 13,554 | $ 6,484 |
Weighted Average Maturity | 12 years 6 months | 13 years 2 months 12 days |
Derivative, Average Variable Interest Rate | 1.97% | 3.45% |
Derivative, Average Fixed Interest Rate | 3.74% | 3.79% |
Estimated Fair Value | $ (1,440) | $ (149) |
Not Designated as Hedging Instrument [Member] | Loan-Level Swaps - Borrower [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 13,554 | $ 6,484 |
Weighted Average Maturity | 12 years 6 months | 13 years 2 months 12 days |
Derivative, Average Variable Interest Rate | 3.74% | 3.79% |
Derivative, Average Fixed Interest Rate | 1.97% | 3.45% |
Estimated Fair Value | $ 1,440 | $ 149 |
Not Designated as Hedging Instrument [Member] | Forward Starting Loan Level Swaps Dealer [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 22,390 | |
Weighted Average Maturity | 11 years 6 months | |
Estimated Fair Value | $ 114 | |
Not Designated as Hedging Instrument [Member] | Forward Starting Loan Level Swaps Borrower [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 22,390 | |
Weighted Average Maturity | 11 years 6 months | |
Estimated Fair Value | $ (114) |
The table below presents the fa
The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of December 31, 2020 and December 31, 2019. (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,554 | $ 149 |
Derivative Liability, Fair Value, Gross Liability | 1,554 | 149 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Customers [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 114 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Customers [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,440 | 149 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Counterparties [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 114 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Counterparties [Member] | Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 1,440 | 149 |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1,798 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 1,798 |
The table below presents the pr
The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated: (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss Reclassified from OCI into Expense (Effective Portion) | $ 1,516 | $ 1,455 | $ 1,520 |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative | $ 1,099 | $ (900) | $ 442 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 71,888,000 | $ 47,968,000 |
Estimated amount to be reclassified during the next 12 month period | 569,000 | |
Net liability position | 1,500,000 | 1,800,000 |
Cash posted as collateral | 1,300,000 | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 71,900,000 | 35,000,000 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 13,000,000 |
LEASES (Details Narrative)
LEASES (Details Narrative) | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 10 years 8 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 2.82% |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Operating lease, renewal term | 5 years |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 18 years |
Operating lease, renewal term | 15 years |
The components of lease expense
The components of lease expense were as follows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Amortization of ROU assets | $ 1,191 | $ 972 |
Interest on lease liabilities | 269 | 244 |
Operating lease cost | $ 1,460 | $ 1,216 |
Supplemental cash flow informat
Supplemental cash flow information related to leases was as follows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1,397 | $ 1,172 |
ROU assets obtained in exchange for lease obligations: | ||
Operating leases | $ 4,332 | $ 600 |
Supplemental balance sheet info
Supplemental balance sheet information related to leases was as follows (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 9,939 | $ 6,795 |
Operating lease liabilities | $ 10,047 | $ 6,840 |
Maturities of the Company_s ope
Maturities of the Company’s operating lease liabilities were as follows (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Years Ending December 31, | ||
2021 | $ 1,482 | |
2022 | 1,414 | |
2023 | 1,172 | |
2024 | 1,108 | |
2025 | 1,024 | |
Thereafter | 5,629 | |
Total lease payments | 11,829 | |
Less imputed interest | (1,782) | |
Total | $ 10,047 | $ 6,840 |
Our actual capital ratios of De
Our actual capital ratios of December 31, 2020 and December 31, 2019 are also presented in the following table (Details) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Total Capital | $ 244,158,000 | $ 240,226,000 |
Total Capital (to risk-weighted assets) ratio | 0.1465 | 0.1393 |
Minimum amount of capital for adequacy purposes | $ 133,336,000 | $ 137,934,000 |
Minimum amount of capital for adequacy purposes, ratio | 0.0800 | 0.0800 |
Tier 1 Capital | $ 223,320,000 | $ 226,124,000 |
Tier 1 Capital (to risk-weighted assets) ratio | 0.1340 | 0.1311 |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 100,002,000 | $ 103,451,000 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 0.0600 | 0.0600 |
Common Equity Tier 1 Capital | $ 223,320,000 | $ 226,124,000 |
Common Equity Tier 1 Capital (to risk-weighted assets) ratio | 0.1340 | 0.1311 |
Minimum amount of Common Equity Tier 1 Capital for adequacy purposes | $ 75,002,000 | $ 77,588,000 |
Minimum amount of Common Equity Tier 1 Capital for adequacy purposes, ratio | 0.0450 | 0.0450 |
Tier 1 Leverage ratio | $ 223,320,000 | $ 226,124,000 |
Tier 1 Leverage (to adjusted average assets) ratio | 0.0934 | 0.1045 |
Minimum amount of Tier 1 Leverage for adequacy purposes | $ 95,606,000 | $ 86,593,000 |
Minimum amount of Tier 1 Leverage for adequacy purposes, ratio | 0.0400 | 0.0400 |
Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Total Capital | $ 231,531,000 | $ 227,678,000 |
Total Capital (to risk-weighted assets) ratio | 0.1391 | 0.1322 |
Minimum amount of capital for adequacy purposes | $ 133,149,000 | $ 137,773,000 |
Minimum amount of capital for adequacy purposes, ratio | 0.0800 | 0.0800 |
Minimum Capital required to be well-capitalized | $ 166,436,000 | $ 172,217,000 |
Minimum Capital required to be well-capitalized, ratio | 0.1000 | 0.1000 |
Tier 1 Capital | $ 210,722,000 | $ 213,576,000 |
Tier 1 Capital (to risk-weighted assets) ratio | 0.1266 | 0.1240 |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 99,862,000 | $ 103,330,000 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 0.0600 | 0.0600 |
Minimum Tier 1 Capital required to be well-capitalized | $ 133,149,000 | $ 137,773,000 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital | $ 210,722,000 | $ 213,576,000 |
Common Equity Tier 1 Capital (to risk-weighted assets) ratio | 0.1266 | 0.1240 |
Minimum amount of Common Equity Tier 1 Capital for adequacy purposes | $ 74,896,000 | $ 77,498,000 |
Minimum amount of Common Equity Tier 1 Capital for adequacy purposes, ratio | 0.0450 | 0.0450 |
Minimum Common Equity Tier 1 Capital required to be well-capitalized | $ 108,183,000 | $ 111,941,000 |
Minimum Common Equity Tier 1 Capital required to be well-capitalized, ratio | 0.0650 | 0.0650 |
Tier 1 Leverage ratio | $ 210,722,000 | $ 213,576,000 |
Tier 1 Leverage (to adjusted average assets) ratio | 0.0883 | 0.0988 |
Minimum amount of Tier 1 Leverage for adequacy purposes | $ 95,409,000 | $ 86,500,000 |
Minimum amount of Tier 1 Leverage for adequacy purposes, ratio | 0.0400 | 0.0400 |
Minimum Tier 1 Capital required to be well-capitalized | $ 119,261,000 | $ 108,125,000 |
Minimum Tier 1 Leverage required to be well-capitalized, ratio | 0.0500 | 0.0500 |
The following is a reconciliati
The following is a reconciliation of our GAAP capital to regulatory Tier 1, Common Equity Tier 1 and total capital (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory Capital | ||||
Consolidated GAAP capital | $ 226,640 | $ 232,024 | $ 237,029 | $ 247,281 |
Net unrealized (gains) losses on available-for-sale securities, net of tax | (963) | 322 | ||
Unrealized loss on defined benefit pension plan, net of tax | 11,750 | 6,275 | ||
Accumulated net loss on cash flow hedges, net of tax | 492 | 2,371 | ||
Goodwill | (12,487) | (12,487) | ||
Intangible assets, net of associated deferred tax liabilities | (2,112) | (2,381) | ||
Tier 1 and Common Equity Tier 1 capital | 223,320 | 226,124 | ||
Allowance for loan losses | 20,838 | 14,102 | ||
Total regulatory capital | $ 244,158 | $ 240,226 |
REGULATORY CAPITAL (Details Nar
REGULATORY CAPITAL (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2020 | Oct. 19, 2020 | Dec. 31, 2019 | Jan. 29, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Restricted equity in net assets | $ 133,100,000 | $ 133,100,000 | $ 137,800,000 | ||
2019 Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares authorized to be repurchased | 2,814,200 | ||||
Number of shares authorized to be repurchased as percentage of total outstanding shares of common stock | 10.00% | ||||
2020 Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares authorized to be repurchased | 1,300,000 | ||||
Number of shares authorized to be repurchased as percentage of total outstanding shares of common stock | 5.00% | ||||
Common stock repurchased (in shares) | 264,630 | ||||
Common stock repurchased, average price per share | $ 6.58 | ||||
Shares remaining under plan | 1,035,370 | 1,035,370 | |||
2019 and 2020 Plans [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Common stock repurchased (in shares) | 1,391,496 |
Income taxes consist of the fol
Income taxes consist of the following: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax provision: | |||||||||||
Federal | $ 3,793 | $ 3,082 | $ 3,910 | ||||||||
State | 1,579 | 1,450 | 1,586 | ||||||||
Total | 5,372 | 4,532 | 5,496 | ||||||||
Deferred tax benefit: | |||||||||||
Federal | (1,639) | (348) | (542) | ||||||||
State | (792) | (332) | (254) | ||||||||
Total | (2,431) | (680) | (796) | ||||||||
Total | $ 1,406 | $ 488 | $ 463 | $ 584 | $ 988 | $ 899 | $ 971 | $ 994 | $ 2,941 | $ 3,852 | $ 4,700 |
The differences between the sta
The differences between the statutory federal income tax and the effective tax are summarized below (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Statutory federal income tax | $ 2,973 | $ 3,612 | $ 4,433 | ||||||||
Increase (decrease) resulting from: | |||||||||||
State taxes, net of federal tax benefit | 622 | 883 | 1,052 | ||||||||
Tax exempt income | (337) | (388) | (370) | ||||||||
Bank-owned life insurance (BOLI) | (380) | (378) | (533) | ||||||||
Option exercise tax shortfall (benefit) | 1 | (16) | (11) | ||||||||
Other, net | 62 | 139 | 129 | ||||||||
Effective tax | $ 1,406 | $ 488 | $ 463 | $ 584 | $ 988 | $ 899 | $ 971 | $ 994 | $ 2,941 | $ 3,852 | $ 4,700 |
The tax effects of each item th
The tax effects of each item that gives rise to deferred taxes are as follows (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 5,947 | $ 3,964 |
Defined benefit plan | 4,594 | 2,453 |
Lease liability | 2,824 | 1,923 |
Employee benefit and share-based compensation plans | 2,251 | 2,223 |
Non-accrual interest | 224 | 348 |
Net unrealized loss on derivative and hedging activity | 192 | 928 |
Net unrealized loss on securities available-for-sale | 71 | |
Purchased mortgage servicing rights | 191 | 242 |
Other | 619 | 776 |
Gross deferred tax assets | 16,842 | 12,928 |
Deferred tax liabilities: | ||
Lease right-of-use asset | (2,794) | (1,910) |
Fixed asset depreciation | (502) | (447) |
Purchase accounting adjustments, net | (494) | (283) |
Net unrealized gain on securities available-for-sale | (339) | |
Deferred loan fees | (121) | (1,105) |
Other | (4) | (22) |
Gross deferred tax liabilities | (4,254) | (3,767) |
Net deferred tax asset | $ 12,588 | $ 9,161 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Cash paid for income taxes | $ 5,800,000 | $ 4,200,000 | $ 3,700,000 |
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax reserve for loan losses at Bank's base year | $ 9,400,000 | ||
Percentage of amount actually used net of reserve subject to taxation | 150.00% | ||
Deferred tax liability not recognized | $ 2,600,000 |
Following is a summary of activ
Following is a summary of activity for such loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Balance at beginning of year | $ 520 | $ 955 |
Principal distributions | 389 | 481 |
Repayments of principal | (214) | (620) |
Change in related party status | (296) | |
Balance at end of year | $ 695 | $ 520 |
The following summarizes these
The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
Commitments to extend credit | $ 460,400,000 | $ 381,700,000 |
Unused lines of Credit [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | 325,567,000 | 264,224,000 |
Loan Commitments [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | 69,966,000 | 74,133,000 |
Existing Construction Loan Agreements [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | 44,088,000 | 32,037,000 |
Standby Letters of Credit [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | $ 20,821,000 | $ 11,348,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Commitments to extend credit | $ 460,400,000 | $ 381,700,000 |
Fixed rate commitments | 86,500,000 | 48,300,000 |
Variable rate commitments | 373,900,000 | $ 333,400,000 |
General Partner [Member] | ||
Loss Contingencies [Line Items] | ||
Partners committed capital contrbution | 3,000,000 | |
Unfunded commitment | 600,000 | |
General Partner [Member] | Other Assets [Member] | ||
Loss Contingencies [Line Items] | ||
Partners committed book value | $ 2,400,000 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Fixed rate commitments - interest rates | 2.45% | 2.45% |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Fixed rate commitments - interest rates | 18.00% | 18.00% |
Assets and liabilities measured
Assets and liabilities measured at fair value on a recurring basis are summarized below: (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 201,880 | |
Marketable equity securities | 11,968 | $ 6,737 |
Interest rate swaps | 1,554 | 149 |
Interest rate swaps | 1,554 | 1,947 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 11,968 | 6,737 |
Interest rate swaps | ||
Interest rate swaps | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | ||
Interest rate swaps | 1,554 | 149 |
Interest rate swaps | 1,554 | 1,947 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | ||
Interest rate swaps | ||
Interest rate swaps | ||
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 201,880 | 227,708 |
Marketable equity securities | 11,968 | 6,737 |
Interest rate swaps | 1,554 | 149 |
Total assets | 215,402 | 234,594 |
Interest rate swaps | 1,554 | 1,947 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Marketable equity securities | 11,968 | 6,737 |
Interest rate swaps | ||
Total assets | 11,968 | 6,737 |
Interest rate swaps | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 201,880 | 227,708 |
Marketable equity securities | ||
Interest rate swaps | 1,554 | 149 |
Total assets | 203,434 | 227,857 |
Interest rate swaps | 1,554 | 1,947 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Marketable equity securities | ||
Interest rate swaps | ||
Total assets | ||
Interest rate swaps |
The following table summarize_2
The following table summarizes the fair value hierarchy used to determine the carrying values of the related assets as of December 31, 2020 and 2019. (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total losses | $ 13 | $ 1,327 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 150 | $ 1,836 |
The estimated fair values of ou
The estimated fair values of our financial instruments are as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 87,444 | $ 24,741 |
Securities available-for-sale | 201,880 | 227,708 |
Marketable equity securities | 11,968 | 6,737 |
Federal Home Loan Bank of Boston and other restricted stock | 5,160 | 14,477 |
Loans - net | 1,900,750 | 1,729,150 |
Accrued interest receivable | 8,477 | 5,313 |
Mortgage servicing rights | 157 | 345 |
Derivative asset | 1,554 | 149 |
Liabilities: | ||
Deposits | 2,040,293 | 1,679,851 |
Short-term borrowings | 35,004 | |
Long-term debt | 57,945 | 205,850 |
Accrued interest payable | 124 | 525 |
Derivative liabilities | 1,554 | 1,947 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 87,444 | 24,741 |
Securities available-for-sale | ||
Marketable equity securities | 11,968 | 6,737 |
Federal Home Loan Bank of Boston and other restricted stock | ||
Loans - net | ||
Accrued interest receivable | ||
Mortgage servicing rights | ||
Derivative asset | ||
Liabilities: | ||
Deposits | ||
Short-term borrowings | ||
Long-term debt | ||
Accrued interest payable | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash and cash equivalents | ||
Securities available-for-sale | 201,880 | 227,708 |
Marketable equity securities | ||
Federal Home Loan Bank of Boston and other restricted stock | ||
Loans - net | ||
Accrued interest receivable | ||
Mortgage servicing rights | 157 | 345 |
Derivative asset | 1,554 | 149 |
Liabilities: | ||
Deposits | ||
Short-term borrowings | 35,004 | |
Long-term debt | 57,945 | 205,850 |
Accrued interest payable | ||
Derivative liabilities | 1,554 | 1,947 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Cash and cash equivalents | ||
Securities available-for-sale | ||
Marketable equity securities | ||
Federal Home Loan Bank of Boston and other restricted stock | 5,160 | 14,477 |
Loans - net | 1,900,750 | 1,729,150 |
Accrued interest receivable | 8,477 | 5,313 |
Mortgage servicing rights | ||
Derivative asset | ||
Liabilities: | ||
Deposits | 2,040,293 | 1,679,851 |
Short-term borrowings | ||
Long-term debt | ||
Accrued interest payable | 124 | 525 |
Derivative liabilities | ||
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 87,444 | 24,741 |
Securities available-for-sale | 201,880 | 227,708 |
Marketable equity securities | 11,968 | 6,737 |
Federal Home Loan Bank of Boston and other restricted stock | 5,160 | 14,477 |
Loans - net | 1,906,226 | 1,761,932 |
Accrued interest receivable | 8,477 | 5,313 |
Mortgage servicing rights | 153 | 219 |
Derivative asset | 1,554 | 149 |
Liabilities: | ||
Deposits | 2,038,130 | 1,677,864 |
Short-term borrowings | 35,000 | |
Long-term debt | 57,850 | 205,515 |
Accrued interest payable | 124 | 525 |
Derivative liabilities | $ 1,554 | $ 1,947 |
The condensed balance sheets of
The condensed balance sheets of the parent company are as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS: | ||||
Other assets | $ 18,756 | $ 20,794 | ||
TOTAL ASSETS | 2,365,886 | 2,181,476 | ||
LIABILITIES: | ||||
Other liabilities | 43,106 | 31,073 | ||
EQUITY | 226,640 | 232,024 | $ 237,029 | $ 247,281 |
TOTAL LIABILITIES AND EQUITY | 2,365,886 | 2,181,476 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash equivalents | 31 | 158 | ||
Investment in subsidiaries | 214,042 | 219,476 | ||
ESOP loan receivable | 5,030 | 5,717 | ||
Other assets | 13,002 | 12,650 | ||
TOTAL ASSETS | 232,105 | 238,001 | ||
LIABILITIES: | ||||
ESOP loan payable | 5,030 | 5,717 | ||
Other liabilities | 435 | 260 | ||
EQUITY | 226,640 | 232,024 | ||
TOTAL LIABILITIES AND EQUITY | $ 232,105 | $ 238,001 |
The condensed statements of net
The condensed statements of net income for the parent company are as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING EXPENSE: | |||||||||||
Salaries and employee benefits | $ 29,349 | $ 27,654 | $ 25,982 | ||||||||
Income before equity in undistributed income of subsidiaries and income taxes | $ 6,419 | $ 2,589 | $ 2,484 | $ 2,664 | $ 4,425 | $ 4,124 | $ 4,228 | $ 4,424 | 14,156 | 17,201 | 21,108 |
Income tax benefit | 1,406 | 488 | 463 | 584 | 988 | 899 | 971 | 994 | 2,941 | 3,852 | 4,700 |
Net income | $ 5,013 | $ 2,101 | $ 2,021 | $ 2,080 | $ 3,437 | $ 3,225 | $ 3,257 | $ 3,430 | 11,215 | 13,349 | 16,408 |
Parent Company [Member] | |||||||||||
INCOME: | |||||||||||
Dividends from subsidiaries | 15,812 | 25,063 | 28,712 | ||||||||
ESOP loan interest income | 457 | 514 | 571 | ||||||||
Other income | 1 | 1 | 1 | ||||||||
Total income | 16,270 | 25,578 | 29,284 | ||||||||
OPERATING EXPENSE: | |||||||||||
Salaries and employee benefits | 1,420 | 1,647 | 1,837 | ||||||||
ESOP interest | 457 | 514 | 571 | ||||||||
Other expenses | 406 | 352 | 286 | ||||||||
Total operating expense | 2,283 | 2,513 | 2,694 | ||||||||
Income before equity in undistributed income of subsidiaries and income taxes | 13,987 | 23,065 | 26,590 | ||||||||
Equity in undistributed loss of subsidiaries | (3,123) | (10,203) | (10,717) | ||||||||
Net income before taxes | 10,864 | 12,862 | 15,873 | ||||||||
Income tax benefit | (351) | (487) | (535) | ||||||||
Net income | $ 11,215 | $ 13,349 | $ 16,408 |
The condensed statements of cas
The condensed statements of cash flows of the parent company are as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES: | |||||||||||
Net income | $ 5,013 | $ 2,101 | $ 2,021 | $ 2,080 | $ 3,437 | $ 3,225 | $ 3,257 | $ 3,430 | $ 11,215 | $ 13,349 | $ 16,408 |
Change in other liabilities | 3,887 | 2,310 | 1,811 | ||||||||
Change in other assets | 5,182 | (7,204) | 1,628 | ||||||||
Net cash provided by operating activities | 25,067 | 15,379 | 24,638 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Sales of securities | 96,320 | 72,156 | 12,470 | ||||||||
Net cash provided by investing activities | (123,557) | (48,080) | (45,745) | ||||||||
FINANCING ACTIVITIES: | |||||||||||
Cash dividends paid | (5,037) | (5,274) | (4,641) | ||||||||
Common stock repurchased | (10,519) | (19,455) | (22,920) | ||||||||
Issuance of common stock in connection with stock option exercises | 43 | 106 | 114 | ||||||||
Net cash used in financing activities | 161,193 | 30,653 | 20,764 | ||||||||
Parent Company [Member] | |||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income | 11,215 | 13,349 | 16,408 | ||||||||
Equity in undistributed loss of subsidiaries | 3,123 | 10,203 | 10,717 | ||||||||
Change in other liabilities | (672) | (668) | (610) | ||||||||
Change in other assets | 335 | 216 | (919) | ||||||||
Other, net | 1,385 | 1,607 | 1,805 | ||||||||
Net cash provided by operating activities | 15,386 | 24,707 | 27,401 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchase of securities | (122) | (140) | (127) | ||||||||
Sales of securities | 122 | 140 | 127 | ||||||||
Net cash provided by investing activities | |||||||||||
FINANCING ACTIVITIES: | |||||||||||
Cash dividends paid | (5,037) | (5,274) | (4,641) | ||||||||
Common stock repurchased | (10,519) | (19,455) | (22,920) | ||||||||
Issuance of common stock in connection with stock option exercises | 43 | 106 | 114 | ||||||||
Net cash used in financing activities | (15,513) | (24,623) | (27,447) | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (127) | 84 | (46) | ||||||||
CASH AND CASH EQUIVALENTS | |||||||||||
Beginning of year | $ 158 | $ 74 | 158 | 74 | 120 | ||||||
End of year | $ 31 | $ 158 | 31 | 158 | 74 | ||||||
Supplemental cash flow information: | |||||||||||
Net change in due to broker for common stock repurchased | $ 160 | $ (221) | $ (83) |
The following tables present a
The following tables present a summary of our quarterly financial information for the periods indicated. (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest and dividend income | $ 21,708 | $ 20,447 | $ 20,330 | $ 20,390 | $ 21,037 | $ 20,804 | $ 20,215 | $ 20,060 | $ 82,875 | $ 82,116 | $ 78,990 | ||||
Interest expense | 2,913 | [1] | 4,457 | [1] | 5,238 | [1] | 5,837 | [1] | 6,113 | 6,276 | 6,014 | 5,734 | 18,445 | 24,137 | 18,978 |
Net interest and dividend income | 18,795 | 15,990 | 15,092 | 14,553 | 14,924 | 14,528 | 14,201 | 14,326 | 64,430 | 57,979 | 60,012 | ||||
Provision for loan losses | 500 | 2,725 | 2,450 | 2,100 | 1,000 | 1,275 | 350 | 50 | 7,775 | 2,675 | 1,900 | ||||
Gain (loss) on available-for-sale securities, net | 1,929 | 13 | 23 | (85) | 49 | (96) | 35 | 1,965 | (97) | (281) | |||||
Unrealized gains (losses) on marketable equity securities, net | (24) | (4) | 35 | 102 | (29) | 45 | 79 | 70 | 109 | 165 | (142) | ||||
Swap fee income | 72 | 397 | 185 | 205 | 55 | 206 | 8 | ||||||||
Other non-interest income | 2,414 | 2,208 | 2,039 | 2,215 | 2,315 | 2,462 | 2,328 | 2,058 | |||||||
Non-interest income | 2,462 | 2,177 | 2,087 | 2,525 | 2,406 | 2,611 | 2,517 | 2,171 | 9,251 | 9,705 | 9,233 | ||||
Non-interest expense | 14,338 | [2] | 12,853 | [2] | 12,245 | [2] | 12,314 | [2] | 11,905 | 11,740 | 12,140 | 12,023 | 51,750 | 47,808 | 46,237 |
Income before income taxes | 6,419 | 2,589 | 2,484 | 2,664 | 4,425 | 4,124 | 4,228 | 4,424 | 14,156 | 17,201 | 21,108 | ||||
Income tax provision | 1,406 | 488 | 463 | 584 | 988 | 899 | 971 | 994 | 2,941 | 3,852 | 4,700 | ||||
Net income | $ 5,013 | $ 2,101 | $ 2,021 | $ 2,080 | $ 3,437 | $ 3,225 | $ 3,257 | $ 3,430 | $ 11,215 | $ 13,349 | $ 16,408 | ||||
Basic earnings per share | $ 0.20 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.13 | $ 0.12 | $ 0.13 | $ 0.13 | $ 0.45 | $ 0.51 | $ 0.57 | ||||
Diluted earnings per share | $ 0.20 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.13 | $ 0.45 | $ 0.51 | $ 0.57 | ||||
Decrease in interest expense on deposits | $ 933 | ||||||||||||||
Decrease in interest expense on FHLB Borrowings | 611 | ||||||||||||||
Expense from early extinguishment of debt | 987 | $ 987 | |||||||||||||
FHLB borrowings extinguished | $ 50,000 | ||||||||||||||
[1] | The decrease in interest expense for the three months ended December 31, 2020 was due to a decrease of $933,000 in interest expense on deposits and $611,000 in interest expense on FHLB borrowings, both resulting from repricing liabilities in the continued low-rate environment as well as the pay down of high-rate FHLB borrowings. | ||||||||||||||
[2] | The increase in non-interest expense for the three months ended December 31, 2020 was primarily driven by a $987,000 expense resulting from the early extinguishment of $50.0 million in FHLB borrowings. |