Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Provident Bancorp, Inc. | |
Entity Central Index Key | 0001635840 | |
Trading Symbol | pvbc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,625,719 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 9,151 | $ 10,941 |
Short-term investments | 14,575 | 17,672 |
Cash and cash equivalents | 23,726 | 28,613 |
Investments in available-for-sale securities (at fair value) | 49,662 | 51,403 |
Federal Home Loan Bank stock, at cost | 3,515 | 2,650 |
Loans, net | 859,269 | 835,528 |
Bank owned life insurance | 26,403 | 26,226 |
Premises and equipment, net | 21,467 | 16,086 |
Other real estate owned | 1,720 | 1,676 |
Accrued interest receivable | 3,171 | 2,638 |
Deferred tax asset, net | 6,589 | 6,437 |
Other assets | 2,997 | 2,822 |
Total assets | 998,519 | 974,079 |
Deposits: | ||
Noninterest-bearing | 198,733 | 195,293 |
Interest-bearing | 576,544 | 572,803 |
Total deposits | 775,277 | 768,096 |
Borrowings | 79,942 | 68,022 |
Operating lease liabilities | 3,919 | |
Other liabilities | 11,109 | 12,377 |
Total liabilities | 870,247 | 848,495 |
Shareholders' equity: | ||
Preferred stock; authorized 50,000 shares: no shares issued and outstanding | ||
Common stock, no par value: 30,000,000 shares authorized; 9,662,181 shares issued, 9,625,719 shares outstanding at March 31, 2019 and December 31, 2018 | 0 | 0 |
Additional paid-in capital | 46,236 | 45,895 |
Retained earnings | 85,569 | 83,351 |
Accumulated other comprehensive loss | (186) | (255) |
Unearned compensation - ESOP | (2,559) | (2,619) |
Treasury stock: 36,462 shares | (788) | (788) |
Total shareholders' equity | 128,272 | 125,584 |
Total liabilities and shareholders' equity | $ 998,519 | $ 974,079 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 9,662,181 | 9,662,181 |
Common stock, shares outstanding | 9,625,719 | 9,625,719 |
Treasury stock, shares | 36,462 | 36,462 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 11,699 | $ 9,276 |
Interest and dividends on securities | 404 | 435 |
Interest on short-term investments | 26 | 42 |
Total interest and dividend income | 12,129 | 9,753 |
Interest expense: | ||
Interest on deposits | 1,437 | 920 |
Interest on borrowings | 534 | 114 |
Total interest expense | 1,971 | 1,034 |
Net interest and dividend income | 10,158 | 8,719 |
Provision for loan losses | 1,462 | 656 |
Net interest and dividend income after provision for loan losses | 8,696 | 8,063 |
Noninterest income: | ||
Gain on sale of securities, net | 113 | |
Bank owned life insurance income | 177 | 171 |
Other income | 15 | 25 |
Total noninterest income | 1,046 | 1,013 |
Noninterest expense: | ||
Salaries and employee benefits | 4,294 | 4,164 |
Occupancy expense | 644 | 450 |
Equipment expense | 106 | 122 |
Data processing | 203 | 204 |
Marketing expense | 55 | 53 |
Professional fees | 422 | 248 |
Directors' compensation | 181 | 163 |
Other | 841 | 972 |
Total noninterest expense | 6,746 | 6,376 |
Income before income tax expense | 2,996 | 2,700 |
Income tax expense | 778 | 678 |
Net income | $ 2,218 | $ 2,022 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.24 | $ 0.22 |
Diluted (in dollars per share) | $ 0.24 | $ 0.22 |
Weighted Average Shares: | ||
Basic (in shares) | 9,267,106 | 9,219,865 |
Diluted (in shares) | 9,305,284 | 9,295,003 |
Customer service fees on deposit accounts | ||
Noninterest income: | ||
Total noninterest income | $ 329 | $ 362 |
Service charges and fees - other | ||
Noninterest income: | ||
Total noninterest income | $ 412 | $ 455 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,218 | $ 2,022 |
Other comprehensive income (loss): | ||
Unrealized holding gains (losses) | 215 | (1,213) |
Reclassification adjustment for realized gains in net income | (113) | |
Unrealized gain (loss) | 102 | (1,213) |
Income tax effect | (33) | 354 |
Net of tax amount | 69 | (859) |
Total comprehensive income | $ 2,287 | $ 1,163 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Shares of Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Unearned Compensation ESOP | Treasury Stock | Total |
Balance at Dec. 31, 2017 | $ 44,592 | $ 74,047 | $ 589 | $ (2,857) | $ (594) | $ 115,777 | |
Balance (in shares) at Dec. 31, 2017 | 9,628,796 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,022 | 2,022 | |||||
Other comprehensive income (loss) | (859) | (859) | |||||
Stock-based compensation expense | 240 | 240 | |||||
ESOP shares earned | 91 | 59 | 150 | ||||
Balance at Mar. 31, 2018 | 44,923 | 76,069 | (270) | (2,798) | (594) | 117,330 | |
Balance (in shares) at Mar. 31, 2018 | 9,628,796 | ||||||
Balance at Dec. 31, 2018 | 45,895 | 83,351 | (255) | (2,619) | (788) | 125,584 | |
Balance (in shares) at Dec. 31, 2018 | 9,625,719 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,218 | 2,218 | |||||
Other comprehensive income (loss) | 69 | 69 | |||||
Stock-based compensation expense | 265 | 265 | |||||
ESOP shares earned | 76 | 60 | 136 | ||||
Balance at Mar. 31, 2019 | $ 46,236 | $ 85,569 | $ (186) | $ (2,559) | $ (788) | $ 128,272 | |
Balance (in shares) at Mar. 31, 2019 | 9,625,719 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash flows from operating activities: | |||
Net income | $ 2,218 | $ 2,022 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of securities premiums, net of accretion | 49 | 67 | |
ESOP expense | 136 | 150 | |
Gain on sale of securities, net | (113) | ||
Change in deferred loan fees, net | 285 | (27) | |
Provision for loan losses | 1,462 | 656 | |
Depreciation and amortization | 404 | 185 | |
(Increase) decrease in accrued interest receivable | (533) | 75 | |
Deferred tax benefit | (185) | ||
Share-based compensation expense | 265 | 240 | |
Increase in cash surrender value of life insurance | (177) | (171) | |
Principal repayments of operating lease obligations | (18) | ||
(Increase) decrease in other assets | (175) | 611 | |
Decrease in other liabilities | (1,166) | (664) | |
Net cash provided by operating activities | 2,452 | 3,144 | |
Cash flows from investing activities: | |||
Purchases of available-for-sale securities | (13,729) | ||
Proceeds from sales of available-for-sale securities | 13,565 | ||
Proceeds from pay downs, maturities and calls of available-for-sale securities | 2,071 | 2,359 | |
Purchase of Federal Home Loan Bank stock, net of redemptions | (865) | (312) | |
Loan originations and purchases, net of paydowns | (25,488) | (18,373) | |
Additions to premises and equipment | (1,950) | (58) | |
Additions to assets held-for-sale | (147) | ||
Additions to other real estate owned | (44) | ||
Net cash used in investing activities | (26,440) | (16,531) | |
Cash flows from financing activities: | |||
Net decrease in demand deposits, NOW and savings accounts | (15,544) | (22,826) | |
Net increase (decrease) increase in time deposits | 22,725 | (7,526) | |
Net change in short-term borrowings | 11,920 | 18,370 | |
Net cash provided by (used in) financing activities | 19,101 | (11,982) | |
Net decrease in cash and cash equivalents | (4,887) | (25,369) | |
Cash and cash equivalents at beginning of period | 28,613 | 47,689 | |
Cash and cash equivalents at end of period | 23,726 | 22,320 | |
Supplemental disclosures: | |||
Interest paid | 1,995 | 1,098 | |
Income taxes paid | 290 | ||
Recognition of right-of-use assets in premises and equipment | [1] | 3,836 | |
Recognition of operating lease liabilities | [1] | 3,938 | |
Reclassification of accrued rent from other liabilities to premises and equipment | [1] | $ 102 | |
Assets held-for-sale transferred to premises and equipment | $ 3,433 | ||
[1] | Adoption of ASU 2016-02, Leases (Note 15) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited financial statements of Provident Bancorp, Inc., a Massachusetts corporation (the “Company”), were prepared in accordance with the instructions for Form 10-Q and with Regulation S-X and do not include information or footnotes necessary for a complete presentation of the financial condition, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, in the opinion of management, all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three-month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for future periods, including the entire fiscal year. These financial statements should be read in conjunction with the annual financial statements and notes thereto included in the annual report on Form 10-K the Company filed with the Securities and Exchange Commission on March 14, 2019. The consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, The Provident Bank (the “Bank”), and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All significant inter-company balances and transactions have been eliminated in consolidation. |
Corporate Structure
Corporate Structure | 3 Months Ended |
Mar. 31, 2019 | |
Corporate Structure [Abstract] | |
Corporate Structure | (2) Corporate Structure Provident Bancorp, Inc. (the “Company”) is a Massachusetts-chartered corporation organized for the purpose of owning all of the outstanding capital stock of The Provident Bank (the “Bank”). Provident Bancorp, the Company’s mutual holding company (the “MHC”), owns approximately 52.3% of the Company’s stock. The Company is headquartered in Amesbury, Massachusetts. The Bank operates its business from eight banking offices located in Amesbury and Newburyport, Massachusetts and Portsmouth, Exeter, Hampton, Bedford, and Seabrook, New Hampshire. The Bank provides a variety of financial services to individuals and small businesses. Its primary deposit products are checking, savings and term certificate accounts and its primary lending products are commercial mortgages and commercial loans. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | (3) Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (subtopic 310-20): “Premium Amortization on Purchased Callable Debt Securities.” In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | (4) Investment Securities The following summarizes the amortized cost of investment securities classified as available-for-sale and their approximate fair values at March 31, 2019 and December 31, 2018: Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value March 31, 2019 State and municipal securities $ 11,453 $ 144 $ 62 $ 11,535 Asset-backed securities 6,116 - 68 6,048 Government mortgage-backed securities 32,353 95 369 32,079 Total available-for-sale securities $ 49,922 $ 239 $ 499 $ 49,662 December 31, 2018 State and municipal securities $ 20,118 $ 272 $ 135 $ 20,255 Asset-backed securities 6,512 - 141 6,371 Government mortgage-backed securities 25,135 138 496 24,777 Total available-for-sale securities $ 51,765 $ 410 $ 772 $ 51,403 The scheduled maturities of debt securities were as follows at March 31, 2019: Available-for-Sale Amortized Fair (In thousands) Cost Value Due in one year or less $ 95 $ 95 Due after one year through five years 604 606 Due after five years through ten years 2,028 2,067 Due after ten years 8,726 8,767 Government mortgage-backed securities 32,353 32,079 Asset-backed securities 6,116 6,048 $ 49,922 $ 49,662 The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or longer are as follows at March 31, 2019 and December 31, 2018: Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses March 31, 2019 Temporarily impaired securities: State and municipal securities $ 373 $ 5 $ 3,681 $ 57 $ 4,054 $ 62 Asset-backed securities - - 6,048 68 6,048 68 Government mortgage-backed securities 4,860 81 12,285 288 17,145 369 Total temporarily impaired securities $ 5,233 $ 86 $ 22,014 $ 413 $ 27,247 $ 499 December 31, 2018 Temporarily impaired securities: State and municipal securities $ 6,137 $ 115 $ 597 $ 20 $ 6,734 $ 135 Asset-backed securities 3,833 98 2,538 43 6,371 141 Government mortgage-backed securities 2,864 32 14,152 464 17,016 496 Total temporarily impaired securities $ 12,834 $ 245 $ 17,287 $ 527 $ 30,121 $ 772 Government mortgage-backed securities, state and municipal securities and asset-backed securities : Management believes that no individual unrealized loss at March 31, 2019 represents an other-than-temporary impairment (OTTI) because the decline in fair value of these securities is primarily attributable to changes in market interest rates and not credit quality, and because the Company has the intent and ability to hold these investments until market price recovery or maturity. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans | (5) Loans A summary of loans is as follows: At At March 31, December 31, (Dollars in thousands) 2019 2018 Amount Percent Amount Percent Commercial real estate $ 373,435 42.79 % $ 364,867 43.00 % Commercial 382,550 43.84 % 361,782 42.64 % Residential real estate 54,898 6.29 % 57,361 6.76 % Construction and land development 42,441 4.86 % 44,606 5.26 % Consumer 19,310 2.21 % 19,815 2.34 % 872,634 100.00 % 848,431 100.00 % Allowance for loan losses (11,857 ) (11,680 ) Deferred loan fees, net (1,508 ) (1,223 ) Net loans $ 859,269 $ 835,528 The following tables set forth information regarding the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019 and 2018: For the three months ended March 31, (In thousands) Commercial Commercial Residential Construction Consumer Unallocated Total Allowance for loan losses: Balance at December 31, 2018 $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Charge-offs - (1,033 ) - - (281 ) - (1,314 ) Recoveries - 10 - - 19 - 29 Provision (credit) 95 1,027 (11 ) (4 ) 364 (9 ) 1,462 Balance at March 31, 2019 $ 4,247 $ 5,746 $ 240 $ 734 $ 812 $ 78 $ 11,857 Balance at December 31, 2017 $ 4,483 $ 3,280 $ 300 $ 965 $ 649 $ 80 $ 9,757 Charge-offs - (20 ) - - (166 ) - (186 ) Recoveries - 1 - - 8 - 9 Provision (credit) 124 407 (8 ) (26 ) 187 (28 ) 656 Balance at March 31, 2018 $ 4,607 $ 3,668 $ 292 $ 939 $ 678 $ 52 $ 10,236 The following table sets forth information regarding the allowance for loan losses and related loan balances by segment at March 31, 2019 and December 31, 2018: (In thousands) Commercial Commercial Residential Construction Consumer Unallocated Total March 31, 2019 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ - $ 886 $ - $ - $ - $ - $ 886 Ending balance: Collectively evaluated for impairment 4,247 4,860 240 734 812 78 10,971 Total allowance for loan losses ending balance $ 4,247 $ 5,746 $ 240 $ 734 $ 812 $ 78 $ 11,857 Loans: Ending balance: Individually evaluated for impairment $ 1,838 $ 7,328 $ 383 $ - $ - $ 9,549 Ending balance: Collectively evaluated for impairment 371,597 375,222 54,515 42,441 19,310 863,085 Total loans ending balance $ 373,435 $ 382,550 $ 54,898 $ 42,441 $ 19,310 $ 872,634 December 31, 2018 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ 62 $ 1,039 $ - $ - $ - $ - $ 1,101 Ending balance: Collectively evaluated for impairment 4,090 4,703 251 738 710 87 10,579 Total allowance for loan losses ending balance $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Loans: Ending balance: Individually evaluated for impairment $ 1,853 $ 5,291 $ 388 $ - $ - $ 7,532 Ending balance: Collectively evaluated for impairment 363,014 356,491 56,973 44,606 19,815 840,899 Total loans ending balance $ 364,867 $ 361,782 $ 57,361 $ 44,606 $ 19,815 $ 848,431 The following tables set forth information regarding non-accrual loans and loan delinquencies by portfolio segment at March 31, 2019 and December 31, 2018: 90 Days 90 Days Total or More 30 - 59 60 - 89 or More Past Total Total Past Due Non-accrual (In thousands) Days Days Past Due Due Current Loans and Accruing Loans March 31, 2019 Commercial real estate $ - $ - $ 519 $ 519 $ 372,916 $ 373,435 $ - $ 519 Commercial 131 - 1,861 1,992 380,558 382,550 - 6,919 Residential real estate 227 358 29 614 54,284 54,898 - 822 Construction and land development - - - - 42,441 42,441 - - Consumer 30 85 114 229 19,081 19,310 - 115 Total $ 388 $ 443 $ 2,523 $ 3,354 $ 869,280 $ 872,634 $ - $ 8,375 December 31, 2018 Commercial real estate $ 742 $ - $ 519 $ 1,261 $ 363,606 $ 364,867 $ - $ 519 Commercial 40 - 3,167 3,207 358,575 361,782 - 4,830 Residential real estate 321 223 30 574 56,787 57,361 850 Construction and land development - - - - 44,606 44,606 - - Consumer 62 46 59 167 19,648 19,815 - 62 Total $ 1,165 $ 269 $ 3,775 $ 5,209 $ 843,222 $ 848,431 $ - $ 6,261 Information about the Company’s impaired loans by portfolio segment was as follows at and for the three months ended March 31, 2019 and at and for the year ended December 31, 2018: Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized March 31, 2019 With no related allowance recorded: Commercial real estate $ 1,838 $ 1,838 $ - $ 1,846 $ 21 Commercial 1,966 1,986 - 2,020 6 Residential real estate 383 383 - 386 5 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance 4,187 4,207 - 4,252 32 With an allowance recorded: Commercial real estate - - - - - Commercial 5,362 5,385 886 5,369 - Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded 5,362 5,385 886 5,369 - Total Commercial real estate 1,838 1,838 - 1,846 21 Commercial 7,328 7,371 886 7,389 6 Residential real estate 383 383 - 386 5 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 9,549 $ 9,592 $ 886 $ 9,621 $ 32 December 31, 2018 With no related allowance recorded: Commercial real estate $ 1,334 $ 1,334 $ - $ 5,614 $ 69 Commercial 4,050 4,110 - 4,894 38 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance 5,772 5,832 - 10,904 127 With an allowance recorded: Commercial real estate 519 519 62 519 - Commercial 1,241 1,267 1,039 1,695 52 Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded 1,760 1,786 1,101 2,214 52 Total Commercial real estate 1,853 1,853 62 6,133 69 Commercial 5,291 5,377 1,039 6,589 90 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 7,532 $ 7,618 $ 1,101 $ 13,118 $ 179 The following summarizes troubled debt restructurings entered into during the three months ended March 31, 2019: (Dollars in thousands) Number of Pre- Recorded Post- March 31, 2019 Troubled debt restructurings: Commercial 1 $ 1,963 $ 1,963 1 $ 1,963 $ 1,963 In the three months ended March 31, 2019, the Company approved one troubled debt restructuring totaling $2.0 million. This commercial loan was placed on an extended 12-month interest-only period with re-amortization to follow. An impairment analysis was performed and a specific reserve of $100,000 was allocated to this relationship. There were no troubled debt restructurings during the three months ended March 31, 2018. The following tables present the Company’s loans by risk rating and portfolio segment at March 31, 2019 and December 31, 2018: (In thousands) Commercial Commercial Residential Construction Consumer Total March 31, 2019 Grade: Pass $ 349,204 $ 363,366 $ - $ 42,441 $ - $ 755,011 Special mention 22,321 11,040 - - - 33,361 Substandard 1,910 8,144 561 - - 10,615 Not formally rated - - 54,337 - 19,310 73,647 Total $ 373,435 $ 382,550 $ 54,898 $ 42,441 $ 19,310 $ 872,634 December 31, 2018 Grade: Pass $ 356,415 $ 339,079 $ - $ 44,606 $ - $ 740,100 Special mention 6,531 11,339 - - - 17,870 Substandard 1,921 10,447 571 - - 12,939 Doubtful - 917 - - - 917 Not formally rated - - 56,790 - 19,815 76,605 Total $ 364,867 $ 361,782 $ 57,361 $ 44,606 $ 19,815 $ 848,431 Credit Quality Information The Company utilizes a seven grade internal loan risk rating system for commercial real estate, construction and land development, and commercial loans as follows: Loans rated 1-3 : Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 4 : Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 5 : Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 6 : Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 7 : Loans in this category are considered uncollectible “loss” and of such little value that their continuance as loans is not warranted. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and land development, and commercial loans. For residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and rates such loans as pass. Subsequent risk rating downgrades are based upon the borrower’s payment activity. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2019 | |
Deposits [Abstract] | |
Deposits | (6) Deposits A summary of deposit balances, by type is as follows: March 31, December 31, (In thousands) 2019 2018 NOW and demand $ 312,286 $ 332,064 Regular savings 115,614 109,322 Money market deposits 227,256 229,314 Total non-certificate accounts 655,156 670,700 Certificate accounts of $250,000 or more 15,583 14,164 Certificate accounts less than $250,000 104,538 83,232 Total certificate accounts 120,121 97,396 Total deposits $ 775,277 $ 768,096 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 3 Months Ended |
Mar. 31, 2019 | |
Advances from Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | (7) Federal Home Loan Bank Advances Borrowings from the Federal Home Loan Bank (the “FHLB”) are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one to four family properties, certain commercial real estate loans and other qualified assets. Maturities of advances from the FHLB as of March 31, 2019 are summarized as follows: (In thousands) Fiscal Year-End Dollar Amount 2019 $ 54,979 2020 11,463 2021 5,000 2023 8,500 Total $ 79,942 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (8) Fair Value Measurements The Company reports certain assets at fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value in accordance with generally accepted accounting principles. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Basis of Fair Value Measurements · Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; · Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; · Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). An asset’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair Values of Assets Measured on a Recurring Basis The Company’s investments in state and municipal, asset-backed and government mortgage-backed available-for-sale securities are generally classified within Level 2 of the fair value hierarchy. For these investments, the Company obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. The following summarizes financial instruments measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 March 31, 2019 State and municipal securities $ 11,535 $ - $ 11,535 $ - Asset-backed securities 6,048 - 6,048 - Mortgage-backed securities 32,079 - 32,079 - Totals $ 49,662 $ - $ 49,662 $ - December 31, 2018 State and municipal securities $ 20,255 $ - $ 20,255 $ - Asset-backed securities 6,371 - 6,371 - Mortgage-backed securities 24,777 - 24,777 - Totals $ 51,403 $ - $ 51,403 $ - Fair Values of Assets Measured on a Non-Recurring Basis The Company’s only assets measured at fair value on a nonrecurring basis are loans identified as impaired for which a write-off or specific reserve has been recorded, and other real estate owned. Certain impaired loans of the Company are reported at the fair value of the underlying collateral, less estimated selling costs. The Company classifies impaired loans as Level 3 in the fair value hierarchy. Collateral values are estimated using Level 2 inputs based upon appraisals of similar properties obtained from a third party, but can be adjusted and therefore classified as Level 3. The Company classifies other real estate owned as Level 2 in the fair value hierarchy if the Company has received a purchase and sales agreement. The following summarizes assets measured at fair value on a nonrecurring basis at March 31, 2019 and December 31, 2018: Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 March 31, 2019 Impaired loans $ 4,476 $ - $ - $ 4,476 Other real estate owned 1,720 - 1,720 - December 31, 2018 Impaired loans $ 659 $ - $ - $ 659 Other real estate owned 1,676 - 1,676 - The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at March 31, 2019 and December 31, 2018: (In thousands) Fair Value Valuation Technique Unobservable Input March 31, 2019 Impaired loans $ 4,476 Real estate appraisals Discount for dated appraisals December 31, 2018 Impaired loans $ 659 Real estate appraisals Discount for dated appraisals |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Of Financial Instrument [Abstract] | |
Fair Value of Financial Instruments | (9) Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Certain financial instruments and all nonfinancial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company's financial instruments, all of which are held or issued for purposes other than trading, are as follows at March 31, 2019 and December 31, 2018: Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total March 31, 2019 Financial assets: Cash and cash equivalents $ 23,726 $ 23,726 $ - $ - $ 23,726 Available-for-sale securities 49,662 - 49,662 - 49,662 Federal Home Loan Bank of Boston stock 3,515 3,515 - - 3,515 Loans, net 859,269 - - 852,305 852,305 Accrued interest receivable 3,171 - 3,171 - 3,171 Financial liabilities: Deposits 775,277 - - 775,554 775,554 Borrowings 79,942 - 79,984 - 79,984 December 31, 2018 Financial assets: Cash and cash equivalents $ 28,613 $ 28,613 $ - $ - $ 28,613 Available-for-sale securities 51,403 - 51,403 - 51,403 Federal Home Loan Bank of Boston stock 2,650 2,650 - - 2,650 Loans, net 835,528 - - 827,090 827,090 Accrued interest receivable 2,638 - 2,638 - 2,638 Financial liabilities: Deposits 768,096 - - 768,010 768,010 Borrowings 68,022 - 67,846 - 67,846 |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | (10) Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Effective January 1, 2015 (with a phase-in period of two to four years for certain components), the Bank became subject to capital regulations adopted by the Federal Deposit Insurance Corporation (“FDIC”), which implement the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The regulations require a new Common Equity Tier 1 (“CET1”) capital ratio of 4.5%, a minimum Tier 1 capital to risk-weighted assets ratio of 6.0%, a minimum total capital to risk-weighted assets ratio of 8.0% and a minimum Tier 1 leverage ratio of 4.0%. CET1 generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. Under new prompt corrective action regulations, in order to be considered “well capitalized,” the Bank must maintain a CET1 capital ratio of 6.5% and a Tier 1 ratio of 8.0%, a total risk based capital ratio of 10% and a Tier 1 leverage ratio of 5.0%. As of March 31, 2019 and December 31, 2018, the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted asset above the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement began being phased in starting on January 1, 2016 at 0.625% of risk-weighted assets and increased each year until fully implemented at 2.5% on January 1, 2019. At March 31, 2019, the Bank exceeded the fully phased in regulatory requirement for the capital conservation buffer. The Bank’s actual capital amounts and ratios are presented in the following table. To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total Capital (to Risk Weighted Assets) $ 131,884 14.5 % $ 73,014 > 8.0 % $ 91,267 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 120,471 13.2 54,760 > 6.0 73,014 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 120,471 13.2 41,070 > 4.5 59,324 > 6.5 Tier 1 Capital (to Average Assets) 120,471 12.2 39,512 > 4.0 49,391 > 5.0 December 31, 2018 Total Capital (to Risk Weighted Assets) $ 128,939 14.6 % $ 70,891 > 8.0 % $ 88,614 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 117,855 13.3 53,168 > 6.0 70,891 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 117,855 13.3 39,876 > 4.5 57,599 > 6.5 Tier 1 Capital (to Average Assets) 117,855 12.7 37,157 > 4.0 46,446 > 5.0 As a result of the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies, including the FDIC, are required to establish for qualifying institutions with assets of less than $10 billion of assets a “community bank leverage ratio” of between 8% to 10% tangible equity/consolidated assets. Institutions with capital levels meeting or exceeding the specified requirement will be considered to comply with the applicable regulatory capital requirements, including all risk-based requirements. The establishment of the community bank leverage ratio is subject to notice and comment rulemaking by the federal regulators. A proposed rule issued by the federal regulators in December 2018 would specify a 9% community bank leverage ratio minimum for institutions to opt into the alternative framework. From time to time, the Company may use capital management tools such as cash dividends and common share repurchases. In January 2017, the Company received a non-objection from the Federal Reserve Board to adopt a stock repurchase program for up to 625,015 shares of its common stock, or approximately 6.6% of the current outstanding shares. Through March 31, 2019, the Company had repurchased at an average price of $21.57 per share, a total of 37,471 shares out of the 625,015 shares authorized for repurchase under the Company’s repurchase program Liquidation Account Upon the completion of the Company’s stock offering in 2015, a special “liquidation account” was established for the benefit of certain depositors of the Bank in an amount equal to the percentage ownership interest in the equity of the Company to be held by persons other than the MHC as of the date of the latest balance sheet contained in the prospectus utilized in connection with the offering. The Company is not permitted to pay dividends on its capital stock if the Company’s shareholders’ equity would be reduced below the amount of the liquidation account. The liquidation account is reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 3 Months Ended |
Mar. 31, 2019 | |
Employee Stock Ownership Plan [Abstract] | |
Employee Stock Ownership Plan | (11) Employee Stock Ownership Plan The Bank maintains an Employee Stock Ownership Plan (“ESOP”) to provide eligible employees the opportunity to own Company stock. This plan is a tax-qualified retirement plan for the benefit of Bank employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released per year through 2029 is 23,810. The Company loaned funds to the ESOP to purchase 357,152 shares of the Company’s common stock at a price of $10.00 per share. The loan is payable annually over 15 years at a rate per annum equal to the Prime Rate as of December 31 (5.50% at December 31, 2018). Loan payments are principally funded by cash contributions from the Bank. Shares held by the ESOP include the following: March 31, 2019 December 31, 2018 Allocated 95,240 71,430 Committed to be allocated 5,952 23,810 Unallocated 255,960 261,912 Total 357,152 357,152 The fair value of unallocated shares was approximately $5.8 million at March 31, 2019. Total compensation expense recognized in connection with the ESOP for the three months ended March 31, 2019 2018 was $136,000 and $150,000, respectively. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | (12) Earnings Per Common Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated ESOP shares, treasury stock and unvested restricted stock is not deemed outstanding for earnings per share calculations. Three Months Ended March 31, (Dollars in thousands, except per share amounts) 2019 2018 Net Income attributable to common shareholders $ 2,218 $ 2,022 Average number of common shares issued 9,662,181 9,657,319 Less: average unallocated ESOP shares (271,525 ) (286,226 ) average unvested restricted stock (87,268 ) (122,405 ) average treasury stock acquired (36,282 ) (28,823 ) Average number of common shares outstanding to calculate basic earnings per common share 9,267,106 9,219,865 Effect of dilutive unvested restricted stock and stock option awards 38,178 75,138 Average number of common shares outstanding to calculate diluted earnings per common share 9,305,284 9,295,003 Earnings per common share: Basic $ 0.24 $ 0.22 Diluted $ 0.24 $ 0.22 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | (13) Share-Based Compensation Under the Provident Bancorp, Inc. 2016 Equity Incentive Plan (the "Equity Plan"), the Company may grant options, restricted stock, restricted units or performance awards to its directors, officers and employees. Both incentive stock options and non-qualified stock options may be granted under the Equity Plan, with the total shares reserved for options equaling 446,440. The exercise price of each option equals the market price of the Company’s stock on the date of grant and the term of each option is generally ten years. The total number of shares reserved for restricted stock or restricted units is 178,575. Options and other awards vest ratably over five years. Expense related to options and restricted stock granted to directors is recognized in directors’ compensation within non-interest expense. Stock Options The fair value of each option is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions: · Volatility is based on peer group volatility because the Company does not have a sufficient trading history. · Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, and the vesting period. · The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. A summary of the status of the Company’s stock option grants for the three months ended March 31, 2019, is presented in the table below: Stock Option Weighted Weighted Aggregate Outstanding at December 31, 2018 396,438 $ 17.89 Granted - Forfeited - Exercised - Outstanding at March 31, 2019 396,438 $ 17.89 7.76 $ 1,888,000 Outstanding and expected to vest at March 31, 2019 396,438 $ 17.89 7.76 $ 1,888,000 Vested and Exercisable at March 31, 2019 151,272 $ 17.50 7.66 $ 632,000 Unrecognized compensation cost $ 1,136,000 Weighted average remaining recognition period (years) 2.76 For the three months ended March 31, 2019 and 2018, total expense for the stock options was $97,000 and $101,000, respectively. Restricted Stock Shares issued upon the granting of restricted stock may be either authorized but unissued shares or reacquired shares held by the Company. Any shares forfeited because vesting requirements are not met will again be available for issuance under the Equity Plan. The fair market value of shares awarded, based on the market prices at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period. The following table presents the activity in restricted stock awards under the Equity Plan for the three months ended March 31, 2019: Unvested Restricted Weighted Unvested restricted stock awards at December 31, 2018 98,073 $ 18.13 Granted - Forfeited - Unvested restricted stock awards at March 31, 2019 98,073 $ 18.13 Unrecognized compensation cost $ 1,557,000 Weighted average remaining recognition period (years) 2.76 For the three months ended March 31, 2019 and 2018, total expense for the restricted stock awards was $168,000 and $139,000, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies Litigation In April 2018, the Bank conducted a foreclosure sale of certain real and personal property which secured four non-accruing loans originally made by the Bank. The aggregate outstanding principal balance of these loans was approximately $7.5 million, of which (a) approximately $4.9 million was due and owing to the Bank and (b) approximately $2.6 million was due and owing to another financial institution who purchased participation interests in certain of these loans (the “Participant”). The Bank received approximately $8.3 million in proceeds from this foreclosure sale. The U.S. Small Business Administration (“SBA”), which also made a secured loan to the same obligors, has since disputed the Bank’s retention of, and claimed priority to, a portion of the proceeds generated from this foreclosure sale, alleging a breach of contract and seeking monetary damages in the approximate amount of $2.0 million. The Bank has partially denied liability, and in addition to its defenses, has asserted a counterclaim against the SBA and its assignee, Granite State Economic Development Corporation, seeking equitable reformation of the contract at issue on the basis of a mutual mistake of fact. On March 5, 2019, the Bank participated in a mediation of this matter. Pending the outcome of this lawsuit and this mediation, the Bank has segregated into a separate deposit account the entire amount in dispute, consisting of $1.4 million that would be retained by the Bank, and $543,000 that would be provided to the participating institution. Management does not believe that the ultimate resolution of this matter will be material to the Bank’s financial condition or results of operations. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | (15) Leases Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU No. 2018-11 The lease liabilities recognized by the Company represent three leased branch locations. The Company’s leases have remaining initial contractual lease terms ranging from nine months to 16.5 years. The Company is terminating the lease on the Hampton, New Hampshire branch effective Mary 2019, therefore the Company chose to account for this lease using the short-term lease exemption and did not apply the new accounting guidance to this lease. Some of the Company’s leases include options to extend the lease for up to 20 years. The lease liabilities recognized include certain lease extensions as it is expected that the Company will use substantially all lease renewal options. Rent expense for the operating leases has been straight lined for the remaining lease term. For the three months ended March 31, 2019, rent expense for the three operating leases totaled $72,000. The maturities of the annual cash flows for the Company’s lease liabilities and other information as of March 31, 2019 are summarized as follows: (Dollars in thousands) Fiscal Year-End Dollar Amount 2019 $ 153 2020 165 2021 172 2022 172 2023 172 Thereafter 6,461 Total lease payments 7,295 Less imputed interest (3,376 ) Total lease liabilities $ 3,919 Weighted-average remaining lease term - operating leases 32.4 years Weighted-average discount rate - operating leases 3.77% |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements of Provident Bancorp, Inc., a Massachusetts corporation (the “Company”), were prepared in accordance with the instructions for Form 10-Q and with Regulation S-X and do not include information or footnotes necessary for a complete presentation of the financial condition, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, in the opinion of management, all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three-month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for future periods, including the entire fiscal year. These financial statements should be read in conjunction with the annual financial statements and notes thereto included in the annual report on Form 10-K the Company filed with the Securities and Exchange Commission on March 14, 2019. The consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, The Provident Bank (the “Bank”), and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All significant inter-company balances and transactions have been eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (subtopic 310-20): “Premium Amortization on Purchased Callable Debt Securities.” In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost of investment securities classified as available-for-sale and their approximate fair values | Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value March 31, 2019 State and municipal securities $ 11,453 $ 144 $ 62 $ 11,535 Asset-backed securities 6,116 - 68 6,048 Government mortgage-backed securities 32,353 95 369 32,079 Total available-for-sale securities $ 49,922 $ 239 $ 499 $ 49,662 December 31, 2018 State and municipal securities $ 20,118 $ 272 $ 135 $ 20,255 Asset-backed securities 6,512 - 141 6,371 Government mortgage-backed securities 25,135 138 496 24,777 Total available-for-sale securities $ 51,765 $ 410 $ 772 $ 51,403 |
Schedule of maturities of debt securities | Available-for-Sale Amortized Fair (In thousands) Cost Value Due in one year or less $ 95 $ 95 Due after one year through five years 604 606 Due after five years through ten years 2,028 2,067 Due after ten years 8,726 8,767 Government mortgage-backed securities 32,353 32,079 Asset-backed securities 6,116 6,048 $ 49,922 $ 49,662 |
Schedule of aggregate fair value and unrealized losses of securities that have been in a continuous unrealized-loss position | Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses March 31, 2019 Temporarily impaired securities: State and municipal securities $ 373 $ 5 $ 3,681 $ 57 $ 4,054 $ 62 Asset-backed securities - - 6,048 68 6,048 68 Government mortgage-backed securities 4,860 81 12,285 288 17,145 369 Total temporarily impaired securities $ 5,233 $ 86 $ 22,014 $ 413 $ 27,247 $ 499 December 31, 2018 Temporarily impaired securities: State and municipal securities $ 6,137 $ 115 $ 597 $ 20 $ 6,734 $ 135 Asset-backed securities 3,833 98 2,538 43 6,371 141 Government mortgage-backed securities 2,864 32 14,152 464 17,016 496 Total temporarily impaired securities $ 12,834 $ 245 $ 17,287 $ 527 $ 30,121 $ 772 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of loans | At At March 31, December 31, (Dollars in thousands) 2019 2018 Amount Percent Amount Percent Commercial real estate $ 373,435 42.79 % $ 364,867 43.00 % Commercial 382,550 43.84 % 361,782 42.64 % Residential real estate 54,898 6.29 % 57,361 6.76 % Construction and land development 42,441 4.86 % 44,606 5.26 % Consumer 19,310 2.21 % 19,815 2.34 % 872,634 100.00 % 848,431 100.00 % Allowance for loan losses (11,857 ) (11,680 ) Deferred loan fees, net (1,508 ) (1,223 ) Net loans $ 859,269 $ 835,528 |
Schedule of allowance for loan losses by portfolio segment | For the three months ended March 31, (In thousands) Commercial Commercial Residential Construction Consumer Unallocated Total Allowance for loan losses: Balance at December 31, 2018 $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Charge-offs - (1,033 ) - - (281 ) - (1,314 ) Recoveries - 10 - - 19 - 29 Provision (credit) 95 1,027 (11 ) (4 ) 364 (9 ) 1,462 Balance at March 31, 2019 $ 4,247 $ 5,746 $ 240 $ 734 $ 812 $ 78 $ 11,857 Balance at December 31, 2017 $ 4,483 $ 3,280 $ 300 $ 965 $ 649 $ 80 $ 9,757 Charge-offs - (20 ) - - (166 ) - (186 ) Recoveries - 1 - - 8 - 9 Provision (credit) 124 407 (8 ) (26 ) 187 (28 ) 656 Balance at March 31, 2018 $ 4,607 $ 3,668 $ 292 $ 939 $ 678 $ 52 $ 10,236 |
Schedule of loan balances by segment | (In thousands) Commercial Commercial Residential Construction Consumer Unallocated Total March 31, 2019 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ - $ 886 $ - $ - $ - $ - $ 886 Ending balance: Collectively evaluated for impairment 4,247 4,860 240 734 812 78 10,971 Total allowance for loan losses ending balance $ 4,247 $ 5,746 $ 240 $ 734 $ 812 $ 78 $ 11,857 Loans: Ending balance: Individually evaluated for impairment $ 1,838 $ 7,328 $ 383 $ - $ - $ 9,549 Ending balance: Collectively evaluated for impairment 371,597 375,222 54,515 42,441 19,310 863,085 Total loans ending balance $ 373,435 $ 382,550 $ 54,898 $ 42,441 $ 19,310 $ 872,634 December 31, 2018 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ 62 $ 1,039 $ - $ - $ - $ - $ 1,101 Ending balance: Collectively evaluated for impairment 4,090 4,703 251 738 710 87 10,579 Total allowance for loan losses ending balance $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Loans: Ending balance: Individually evaluated for impairment $ 1,853 $ 5,291 $ 388 $ - $ - $ 7,532 Ending balance: Collectively evaluated for impairment 363,014 356,491 56,973 44,606 19,815 840,899 Total loans ending balance $ 364,867 $ 361,782 $ 57,361 $ 44,606 $ 19,815 $ 848,431 |
Schedule of non accrual loans and past-due loans by portfolio segment | 90 Days 90 Days Total or More 30 - 59 60 - 89 or More Past Total Total Past Due Non-accrual (In thousands) Days Days Past Due Due Current Loans and Accruing Loans March 31, 2019 Commercial real estate $ - $ - $ 519 $ 519 $ 372,916 $ 373,435 $ - $ 519 Commercial 131 - 1,861 1,992 380,558 382,550 - 6,919 Residential real estate 227 358 29 614 54,284 54,898 - 822 Construction and land development - - - - 42,441 42,441 - - Consumer 30 85 114 229 19,081 19,310 - 115 Total $ 388 $ 443 $ 2,523 $ 3,354 $ 869,280 $ 872,634 $ - $ 8,375 December 31, 2018 Commercial real estate $ 742 $ - $ 519 $ 1,261 $ 363,606 $ 364,867 $ - $ 519 Commercial 40 - 3,167 3,207 358,575 361,782 - 4,830 Residential real estate 321 223 30 574 56,787 57,361 850 Construction and land development - - - - 44,606 44,606 - - Consumer 62 46 59 167 19,648 19,815 - 62 Total $ 1,165 $ 269 $ 3,775 $ 5,209 $ 843,222 $ 848,431 $ - $ 6,261 |
Schedule of impaired loans by portfolio segment | Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized March 31, 2019 With no related allowance recorded: Commercial real estate $ 1,838 $ 1,838 $ - $ 1,846 $ 21 Commercial 1,966 1,986 - 2,020 6 Residential real estate 383 383 - 386 5 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance 4,187 4,207 - 4,252 32 With an allowance recorded: Commercial real estate - - - - - Commercial 5,362 5,385 886 5,369 - Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded 5,362 5,385 886 5,369 - Total Commercial real estate 1,838 1,838 - 1,846 21 Commercial 7,328 7,371 886 7,389 6 Residential real estate 383 383 - 386 5 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 9,549 $ 9,592 $ 886 $ 9,621 $ 32 December 31, 2018 With no related allowance recorded: Commercial real estate $ 1,334 $ 1,334 $ - $ 5,614 $ 69 Commercial 4,050 4,110 - 4,894 38 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance 5,772 5,832 - 10,904 127 With an allowance recorded: Commercial real estate 519 519 62 519 - Commercial 1,241 1,267 1,039 1,695 52 Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded 1,760 1,786 1,101 2,214 52 Total Commercial real estate 1,853 1,853 62 6,133 69 Commercial 5,291 5,377 1,039 6,589 90 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 7,532 $ 7,618 $ 1,101 $ 13,118 $ 179 |
Schedule of troubled debt restructuring | (Dollars in thousands) Number of Pre- Recorded Post- March 31, 2019 Troubled debt restructurings: Commercial 1 $ 1,963 $ 1,963 1 $ 1,963 $ 1,963 |
Schedule of loans by risk rating and portfolio segment | (In thousands) Commercial Commercial Residential Construction Consumer Total March 31, 2019 Grade: Pass $ 349,204 $ 363,366 $ - $ 42,441 $ - $ 755,011 Special mention 22,321 11,040 - - - 33,361 Substandard 1,910 8,144 561 - - 10,615 Not formally rated - - 54,337 - 19,310 73,647 Total $ 373,435 $ 382,550 $ 54,898 $ 42,441 $ 19,310 $ 872,634 December 31, 2018 Grade: Pass $ 356,415 $ 339,079 $ - $ 44,606 $ - $ 740,100 Special mention 6,531 11,339 - - - 17,870 Substandard 1,921 10,447 571 - - 12,939 Doubtful - 917 - - - 917 Not formally rated - - 56,790 - 19,815 76,605 Total $ 364,867 $ 361,782 $ 57,361 $ 44,606 $ 19,815 $ 848,431 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deposits [Abstract] | |
Schedule of deposit balances by type | March 31, December 31, (In thousands) 2019 2018 NOW and demand $ 312,286 $ 332,064 Regular savings 115,614 109,322 Money market deposits 227,256 229,314 Total non-certificate accounts 655,156 670,700 Certificate accounts of $250,000 or more 15,583 14,164 Certificate accounts less than $250,000 104,538 83,232 Total certificate accounts 120,121 97,396 Total deposits $ 775,277 $ 768,096 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of maturities of advances from the FHLB | (In thousands) Fiscal Year-End Dollar Amount 2019 $ 54,979 2020 11,463 2021 5,000 2023 8,500 Total $ 79,942 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of activity for Level 3 financial instruments measured at fair value on a recurring basis | Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 March 31, 2019 State and municipal securities $ 11,535 $ - $ 11,535 $ - Asset-backed securities 6,048 - 6,048 - Mortgage-backed securities 32,079 - 32,079 - Totals $ 49,662 $ - $ 49,662 $ - December 31, 2018 State and municipal securities $ 20,255 $ - $ 20,255 $ - Asset-backed securities 6,371 - 6,371 - Mortgage-backed securities 24,777 - 24,777 - Totals $ 51,403 $ - $ 51,403 $ - |
Schedule of financial instruments measured at fair value on a nonrecurring basis | Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 March 31, 2019 Impaired loans $ 4,476 $ - $ - $ 4,476 Other real estate owned 1,720 - 1,720 - December 31, 2018 Impaired loans $ 659 $ - $ - $ 659 Other real estate owned 1,676 - 1,676 - |
Schedule of valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis | (In thousands) Fair Value Valuation Technique Unobservable Input March 31, 2019 Impaired loans $ 4,476 Real estate appraisals Discount for dated appraisals December 31, 2018 Impaired loans $ 659 Real estate appraisals Discount for dated appraisals |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Of Financial Instrument [Abstract] | |
Schedule of carrying amounts and estimated fair values of financial instruments, held or issued for purposes other than trading | Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total March 31, 2019 Financial assets: Cash and cash equivalents $ 23,726 $ 23,726 $ - $ - $ 23,726 Available-for-sale securities 49,662 - 49,662 - 49,662 Federal Home Loan Bank of Boston stock 3,515 3,515 - - 3,515 Loans, net 859,269 - - 852,305 852,305 Accrued interest receivable 3,171 - 3,171 - 3,171 Financial liabilities: Deposits 775,277 - - 775,554 775,554 Borrowings 79,942 - 79,984 - 79,984 December 31, 2018 Financial assets: Cash and cash equivalents $ 28,613 $ 28,613 $ - $ - $ 28,613 Available-for-sale securities 51,403 - 51,403 - 51,403 Federal Home Loan Bank of Boston stock 2,650 2,650 - - 2,650 Loans, net 835,528 - - 827,090 827,090 Accrued interest receivable 2,638 - 2,638 - 2,638 Financial liabilities: Deposits 768,096 - - 768,010 768,010 Borrowings 68,022 - 67,846 - 67,846 |
Regulatory Capital (Table)
Regulatory Capital (Table) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of actual capital amounts and ratios | To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total Capital (to Risk Weighted Assets) $ 131,884 14.5 % $ 73,014 > 8.0 % $ 91,267 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 120,471 13.2 54,760 > 6.0 73,014 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 120,471 13.2 41,070 > 4.5 59,324 > 6.5 Tier 1 Capital (to Average Assets) 120,471 12.2 39,512 > 4.0 49,391 > 5.0 December 31, 2018 Total Capital (to Risk Weighted Assets) $ 128,939 14.6 % $ 70,891 > 8.0 % $ 88,614 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 117,855 13.3 53,168 > 6.0 70,891 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 117,855 13.3 39,876 > 4.5 57,599 > 6.5 Tier 1 Capital (to Average Assets) 117,855 12.7 37,157 > 4.0 46,446 > 5.0 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Employee Stock Ownership Plan [Abstract] | |
Schedule of Employee Stock Ownership Plan | March 31, 2019 December 31, 2018 Allocated 95,240 71,430 Committed to be allocated 5,952 23,810 Unallocated 255,960 261,912 Total 357,152 357,152 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earning per share | Three Months Ended March 31, (Dollars in thousands, except per share amounts) 2019 2018 Net Income attributable to common shareholders $ 2,218 $ 2,022 Average number of common shares issued 9,662,181 9,657,319 Less: average unallocated ESOP shares (271,525 ) (286,226 ) average unvested restricted stock (87,268 ) (122,405 ) average treasury stock acquired (36,282 ) (28,823 ) Average number of common shares outstanding to calculate basic earnings per common share 9,267,106 9,219,865 Effect of dilutive unvested restricted stock and stock option awards 38,178 75,138 Average number of common shares outstanding to calculate diluted earnings per common share 9,305,284 9,295,003 Earnings per common share: Basic $ 0.24 $ 0.22 Diluted $ 0.24 $ 0.22 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | Stock Option Weighted Weighted Aggregate Outstanding at December 31, 2018 396,438 $ 17.89 Granted - Forfeited - Exercised - Outstanding at March 31, 2019 396,438 $ 17.89 7.76 $ 1,888,000 Outstanding and expected to vest at March 31, 2019 396,438 $ 17.89 7.76 $ 1,888,000 Vested and Exercisable at March 31, 2019 151,272 $ 17.50 7.66 $ 632,000 Unrecognized compensation cost $ 1,136,000 Weighted average remaining recognition period (years) 2.76 |
Schedule of activity in restricted stock awards under the Equity Plan | Unvested Restricted Weighted Unvested restricted stock awards at December 31, 2018 98,073 $ 18.13 Granted - Forfeited - Unvested restricted stock awards at March 31, 2019 98,073 $ 18.13 Unrecognized compensation cost $ 1,557,000 Weighted average remaining recognition period (years) 2.76 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of lease liabilities | (Dollars in thousands) Fiscal Year-End Dollar Amount 2019 $ 153 2020 165 2021 172 2022 172 2023 172 Thereafter 6,461 Total lease payments 7,295 Less imputed interest (3,376 ) Total lease liabilities $ 3,919 |
Corporate Structure (Details)
Corporate Structure (Details) | Mar. 31, 2019 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |
Percentage of ownership of mutual holding company | 52.30% |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) $ in Millions | Feb. 29, 2016USD ($) |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Increased assets and liabilities | $ 3.8 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 49,922 | $ 51,765 |
Gross Unrealized Gains | 239 | 410 |
Gross Unrealized Losses | 499 | 772 |
Fair Value | 49,662 | 51,403 |
State and municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 11,453 | 20,118 |
Gross Unrealized Gains | 144 | 272 |
Gross Unrealized Losses | 62 | 135 |
Fair Value | 11,535 | 20,255 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 6,116 | 6,512 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 68 | 141 |
Fair Value | 6,048 | 6,371 |
Government mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 32,353 | 25,135 |
Gross Unrealized Gains | 95 | 138 |
Gross Unrealized Losses | 369 | 496 |
Fair Value | $ 32,079 | $ 24,777 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-Sale Amortized Cost | ||
Due in one year or less | $ 95 | |
Due after one year through five years | 604 | |
Due after five years through ten years | 2,028 | |
Due after ten years | 8,726 | |
Amortized Cost | 49,922 | $ 51,765 |
Available-for-Sale Fair Value | ||
Due in one year or less | 95 | |
Due after one year through five years | 606 | |
Due after five years through ten years | 2,067 | |
Due after ten years | 8,767 | |
Fair Value | 49,662 | 51,403 |
Government mortgage-backed securities | ||
Available-for-Sale Amortized Cost | ||
Amortized Cost | 32,353 | 25,135 |
Available-for-Sale Fair Value | ||
Fair Value | 32,079 | 24,777 |
Asset-backed securities | ||
Available-for-Sale Amortized Cost | ||
Amortized Cost | 6,116 | 6,512 |
Available-for-Sale Fair Value | ||
Fair Value | $ 6,048 | $ 6,371 |
Investment Securities (Detail_2
Investment Securities (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 5,233 | $ 12,834 |
Unrealized Losses, Less than 12 Months | 86 | 245 |
Fair Value, 12 Months or Longer | 22,014 | 17,287 |
Unrealized Losses, 12 Months or Longer | 413 | 527 |
Fair Value, Total | 27,247 | 30,121 |
Unrealized Losses, Total | 499 | 772 |
State and municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 373 | 6,137 |
Unrealized Losses, Less than 12 Months | 5 | 115 |
Fair Value, 12 Months or Longer | 3,681 | 597 |
Unrealized Losses, 12 Months or Longer | 57 | 20 |
Fair Value, Total | 4,054 | 6,734 |
Unrealized Losses, Total | 62 | 135 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 0 | 3,833 |
Unrealized Losses, Less than 12 Months | 0 | 98 |
Fair Value, 12 Months or Longer | 6,048 | 2,538 |
Unrealized Losses, 12 Months or Longer | 68 | 43 |
Fair Value, Total | 6,048 | 6,371 |
Unrealized Losses, Total | 68 | 141 |
Government mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 4,860 | 2,864 |
Unrealized Losses, Less than 12 Months | 81 | 32 |
Fair Value, 12 Months or Longer | 12,285 | 14,152 |
Unrealized Losses, 12 Months or Longer | 288 | 464 |
Fair Value, Total | 17,145 | 17,016 |
Unrealized Losses, Total | $ 369 | $ 496 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Gross loans, Amount | $ 872,634 | $ 848,431 | ||
Gross loans, Percent | 100.00% | 100.00% | ||
Allowance for loan losses | $ (11,857) | $ (11,680) | $ (10,236) | $ (9,757) |
Deferred loan fees, net | (1,508) | (1,223) | ||
Net loans | 859,269 | 835,528 | ||
Commercial real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Gross loans, Amount | $ 373,435 | $ 364,867 | ||
Gross loans, Percent | 42.79% | 43.00% | ||
Allowance for loan losses | $ (4,247) | $ (4,152) | (4,607) | (4,483) |
Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Gross loans, Amount | $ 382,550 | $ 361,782 | ||
Gross loans, Percent | 43.84% | 42.64% | ||
Allowance for loan losses | $ (5,746) | $ (5,742) | (3,668) | (3,280) |
Residential real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Gross loans, Amount | $ 54,898 | $ 57,361 | ||
Gross loans, Percent | 6.29% | 6.76% | ||
Allowance for loan losses | $ (240) | $ (251) | (292) | (300) |
Construction and land development | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Gross loans, Amount | $ 42,441 | $ 44,606 | ||
Gross loans, Percent | 4.86% | 5.26% | ||
Allowance for loan losses | $ (734) | $ (738) | (939) | (965) |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Gross loans, Amount | $ 19,310 | $ 19,815 | ||
Gross loans, Percent | 2.21% | 2.34% | ||
Allowance for loan losses | $ (812) | $ (710) | $ (678) | $ (649) |
Loans (Details 1)
Loans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 11,680 | $ 9,757 | ||
Charge-offs | (1,314) | (186) | ||
Recoveries | 29 | 9 | ||
Provision (credit) | 1,462 | 656 | ||
Ending balance | 11,857 | 10,236 | ||
Allowance for loan losses: | ||||
Ending balance: Individually evaluated for impairment | $ 886 | $ 1,101 | ||
Ending balance: Collectively evaluated for impairment | 10,971 | 10,579 | ||
Total allowance for loan losses ending balance | 11,680 | 9,757 | 11,857 | 11,680 |
Loans: | ||||
Ending balance: Individually evaluated for impairment | 9,549 | 7,532 | ||
Ending balance: Collectively evaluated for impairment | 863,085 | 840,899 | ||
Total loans ending balance | 872,634 | 848,431 | ||
Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 4,152 | 4,483 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision (credit) | 95 | 124 | ||
Ending balance | 4,247 | 4,607 | ||
Allowance for loan losses: | ||||
Ending balance: Individually evaluated for impairment | 0 | 62 | ||
Ending balance: Collectively evaluated for impairment | 4,247 | 4,090 | ||
Total allowance for loan losses ending balance | 4,152 | 4,483 | 4,247 | 4,152 |
Loans: | ||||
Ending balance: Individually evaluated for impairment | 1,838 | 1,853 | ||
Ending balance: Collectively evaluated for impairment | 371,597 | 363,014 | ||
Total loans ending balance | 373,435 | 364,867 | ||
Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 5,742 | 3,280 | ||
Charge-offs | (1,033) | (20) | ||
Recoveries | 10 | 1 | ||
Provision (credit) | 1,027 | 407 | ||
Ending balance | 5,746 | 3,668 | ||
Allowance for loan losses: | ||||
Ending balance: Individually evaluated for impairment | 886 | 1,039 | ||
Ending balance: Collectively evaluated for impairment | 4,860 | 4,703 | ||
Total allowance for loan losses ending balance | 5,742 | 3,280 | 5,746 | 5,742 |
Loans: | ||||
Ending balance: Individually evaluated for impairment | 7,328 | 5,291 | ||
Ending balance: Collectively evaluated for impairment | 375,222 | 356,491 | ||
Total loans ending balance | 382,550 | 361,782 | ||
Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 251 | 300 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision (credit) | (11) | (8) | ||
Ending balance | 240 | 292 | ||
Allowance for loan losses: | ||||
Ending balance: Individually evaluated for impairment | 0 | 0 | ||
Ending balance: Collectively evaluated for impairment | 240 | 251 | ||
Total allowance for loan losses ending balance | 251 | 300 | 240 | 251 |
Loans: | ||||
Ending balance: Individually evaluated for impairment | 383 | 388 | ||
Ending balance: Collectively evaluated for impairment | 54,515 | 56,973 | ||
Total loans ending balance | 54,898 | 57,361 | ||
Construction and Land Development | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 738 | 965 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision (credit) | (4) | (26) | ||
Ending balance | 734 | 939 | ||
Allowance for loan losses: | ||||
Ending balance: Individually evaluated for impairment | 0 | 0 | ||
Ending balance: Collectively evaluated for impairment | 734 | 738 | ||
Total allowance for loan losses ending balance | 738 | 965 | 734 | 738 |
Loans: | ||||
Ending balance: Individually evaluated for impairment | 0 | 0 | ||
Ending balance: Collectively evaluated for impairment | 42,441 | 44,606 | ||
Total loans ending balance | 42,441 | 44,606 | ||
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 710 | 649 | ||
Charge-offs | (281) | (166) | ||
Recoveries | 19 | 8 | ||
Provision (credit) | 364 | 187 | ||
Ending balance | 812 | 678 | ||
Allowance for loan losses: | ||||
Ending balance: Individually evaluated for impairment | 0 | 0 | ||
Ending balance: Collectively evaluated for impairment | 812 | 710 | ||
Total allowance for loan losses ending balance | 710 | 649 | 812 | 710 |
Loans: | ||||
Ending balance: Individually evaluated for impairment | 0 | 0 | ||
Ending balance: Collectively evaluated for impairment | 19,310 | 19,815 | ||
Total loans ending balance | 19,310 | 19,815 | ||
Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 87 | 80 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision (credit) | (9) | (28) | ||
Ending balance | 78 | 52 | ||
Allowance for loan losses: | ||||
Ending balance: Individually evaluated for impairment | 0 | 0 | ||
Ending balance: Collectively evaluated for impairment | 78 | 87 | ||
Total allowance for loan losses ending balance | $ 87 | $ 80 | $ 78 | $ 87 |
Loans (Details 2)
Loans (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 3,354 | $ 5,209 |
Total Current | 869,280 | 843,222 |
Total Loans | 872,634 | 848,431 |
90 Days or More Past Due and Accruing | 0 | 0 |
Nonaccrual Loans | 8,375 | 6,261 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 388 | 1,165 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 443 | 269 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,523 | 3,775 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 519 | 1,261 |
Total Current | 372,916 | 363,606 |
Total Loans | 373,435 | 364,867 |
90 Days or More Past Due and Accruing | 0 | 0 |
Nonaccrual Loans | 519 | 519 |
Commercial real estate | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 742 |
Commercial real estate | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 519 | 519 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,992 | 3,207 |
Total Current | 380,558 | 358,575 |
Total Loans | 382,550 | 361,782 |
90 Days or More Past Due and Accruing | 0 | |
Nonaccrual Loans | 6,919 | 4,830 |
Commercial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 131 | 40 |
Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,861 | 3,167 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 614 | 574 |
Total Current | 54,284 | 56,787 |
Total Loans | 54,898 | 57,361 |
90 Days or More Past Due and Accruing | 0 | 0 |
Nonaccrual Loans | 822 | 850 |
Residential real estate | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 227 | 321 |
Residential real estate | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 358 | 223 |
Residential real estate | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 29 | 30 |
Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Total Current | 42,441 | 44,606 |
Total Loans | 42,441 | 44,606 |
90 Days or More Past Due and Accruing | 0 | 0 |
Nonaccrual Loans | 0 | 0 |
Construction and land development | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Construction and land development | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Construction and land development | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 229 | 167 |
Total Current | 19,081 | 19,648 |
Total Loans | 19,310 | 19,815 |
90 Days or More Past Due and Accruing | 0 | 0 |
Nonaccrual Loans | 115 | 62 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 30 | 62 |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 85 | 46 |
Consumer | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 114 | $ 59 |
Loans (Details 3)
Loans (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
With no related allowance recorded: | ||
Recorded Investment | $ 4,187 | $ 5,772 |
Unpaid Principal Balance | 4,207 | 5,832 |
Average Recorded Investment | 4,252 | 10,904 |
Interest Income Recognized | 32 | 127 |
With an allowance recorded: | ||
Recorded Investment | 5,362 | 1,760 |
Unpaid Principal Balance | 5,385 | 1,786 |
Related Allowance | 886 | 1,101 |
Average Recorded Investment | 5,369 | 2,214 |
Interest Income Recognized | 0 | 52 |
Total | ||
Recorded Investment | 9,549 | 7,532 |
Unpaid Principal Balance | 9,592 | 7,618 |
Related Allowance | 886 | 1,101 |
Average Recorded Investment | 9,621 | 13,118 |
Interest Income Recognized | 32 | 179 |
Commercial real estate | ||
With no related allowance recorded: | ||
Recorded Investment | 1,838 | 1,334 |
Unpaid Principal Balance | 1,838 | 1,334 |
Average Recorded Investment | 1,846 | 5,614 |
Interest Income Recognized | 21 | 69 |
With an allowance recorded: | ||
Recorded Investment | 0 | 519 |
Unpaid Principal Balance | 0 | 519 |
Related Allowance | 0 | 62 |
Average Recorded Investment | 0 | 519 |
Interest Income Recognized | 0 | 0 |
Total | ||
Recorded Investment | 1,838 | 1,853 |
Unpaid Principal Balance | 1,838 | 1,853 |
Related Allowance | 0 | 62 |
Average Recorded Investment | 1,846 | 6,133 |
Interest Income Recognized | 21 | 69 |
Commercial | ||
With no related allowance recorded: | ||
Recorded Investment | 1,966 | 4,050 |
Unpaid Principal Balance | 1,986 | 4,110 |
Average Recorded Investment | 2,020 | 4,894 |
Interest Income Recognized | 6 | 38 |
With an allowance recorded: | ||
Recorded Investment | 5,362 | 1,241 |
Unpaid Principal Balance | 5,385 | 1,267 |
Related Allowance | 886 | 1,039 |
Average Recorded Investment | 5,369 | 1,695 |
Interest Income Recognized | 0 | 52 |
Total | ||
Recorded Investment | 7,328 | 5,291 |
Unpaid Principal Balance | 7,371 | 5,377 |
Related Allowance | 886 | 1,039 |
Average Recorded Investment | 7,389 | 6,589 |
Interest Income Recognized | 6 | 90 |
Residential real estate | ||
With no related allowance recorded: | ||
Recorded Investment | 383 | 388 |
Unpaid Principal Balance | 383 | 388 |
Average Recorded Investment | 386 | 396 |
Interest Income Recognized | 5 | 20 |
With an allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Total | ||
Recorded Investment | 383 | 388 |
Unpaid Principal Balance | 383 | 388 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 386 | 396 |
Interest Income Recognized | 5 | 20 |
Construction and land development | ||
With no related allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Total | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Consumer | ||
With no related allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Total | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
Loans (Details 4)
Loans (Details 4) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)Contract | |
Troubled debt restructuring: | |
Number of Contracts | Contract | 1 |
Pre- Modification Outstanding Recorded Investment | $ 1,963 |
Post-Modification Outstanding Recorded Investment | $ 1,963 |
Commercial | |
Troubled debt restructuring: | |
Number of Contracts | Contract | 1 |
Pre- Modification Outstanding Recorded Investment | $ 1,963 |
Post-Modification Outstanding Recorded Investment | $ 1,963 |
Loans (Details 5)
Loans (Details 5) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 872,634 | $ 848,431 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 755,011 | 740,100 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 33,361 | 17,870 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 10,615 | 12,939 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 917 | |
Not formally rated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 73,647 | 76,605 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 373,435 | 364,867 |
Commercial Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 349,204 | 356,415 |
Commercial Real Estate | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 22,321 | 6,531 |
Commercial Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,910 | 1,921 |
Commercial Real Estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Commercial Real Estate | Not formally rated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 382,550 | 361,782 |
Commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 363,366 | 339,079 |
Commercial | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,040 | 11,339 |
Commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,144 | 10,447 |
Commercial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 917 | |
Commercial | Not formally rated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 54,898 | 57,361 |
Residential Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Residential Real Estate | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Residential Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 561 | 571 |
Residential Real Estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Residential Real Estate | Not formally rated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 54,337 | 56,790 |
Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 42,441 | 44,606 |
Construction and Land Development | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 42,441 | 44,606 |
Construction and Land Development | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Construction and Land Development | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Construction and Land Development | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Construction and Land Development | Not formally rated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 19,310 | 19,815 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Consumer | Not formally rated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 19,310 | $ 19,815 |
Loans (Detail Textuals)
Loans (Detail Textuals) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Receivables [Abstract] | |
Troubled debt restructuring, total | $ 2,000,000 |
Re-amortization term of commercial loan | 12 months |
Impairment analysis performed and specific reserve | $ 100,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
NOW and demand | $ 312,286 | $ 332,064 |
Regular savings | 115,614 | 109,322 |
Money market deposits | 227,256 | 229,314 |
Total non-certificate accounts | 655,156 | 670,700 |
Certificate accounts of $250,000 or more | 15,583 | 14,164 |
Certificate accounts less than $250,000 | 104,538 | 83,232 |
Total certificate accounts | 120,121 | 97,396 |
Total deposits | $ 775,277 | $ 768,096 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Advances from Federal Home Loan Banks [Abstract] | |
2019 | $ 54,979 |
2020 | 11,463 |
2021 | 5,000 |
2023 | 8,500 |
Total | $ 79,942 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | $ 49,662 | $ 51,403 |
State and municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 11,535 | 20,255 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 6,048 | 6,371 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 32,079 | 24,777 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 49,662 | 51,403 |
Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 0 | 0 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 49,662 | 51,403 |
Recurring basis | State and municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 11,535 | 20,255 |
Recurring basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 6,048 | 6,371 |
Recurring basis | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 32,079 | 24,777 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | State and municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 0 | 0 |
Recurring basis | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 49,662 | 51,403 |
Recurring basis | Significant Other Observable Inputs Level 2 | State and municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 11,535 | 20,255 |
Recurring basis | Significant Other Observable Inputs Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 6,048 | 6,371 |
Recurring basis | Significant Other Observable Inputs Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 32,079 | 24,777 |
Recurring basis | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | State and municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | $ 0 | $ 0 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - Nonrecurring basis - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 4,476 | $ 659 |
Other real estate owned | 1,720 | 1,676 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 1,720 | 1,676 |
Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 4,476 | 659 |
Other real estate owned | $ 0 | $ 0 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details 2) - Nonrecurring basis - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | $ 4,476 | $ 659 |
Fair Value Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | $ 4,476 | $ 659 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||||
Cash and cash equivalents | $ 23,726 | $ 28,613 | $ 22,320 | $ 47,689 |
Available-for-sale securities | 49,662 | 51,403 | ||
Federal Home Loan Bank of Boston stock | 3,515 | 2,650 | ||
Accrued interest receivable | 3,171 | 2,638 | ||
Financial liabilities: | ||||
Borrowings | 79,942 | 68,022 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 23,726 | 28,613 | ||
Available-for-sale securities | 49,662 | 51,403 | ||
Federal Home Loan Bank of Boston stock | 3,515 | 2,650 | ||
Loans, net | 859,269 | 835,528 | ||
Accrued interest receivable | 3,171 | 2,638 | ||
Financial liabilities: | ||||
Deposits | 775,277 | 768,096 | ||
Borrowings | 79,942 | 68,022 | ||
Fair Value | ||||
Financial assets: | ||||
Cash and cash equivalents | 23,726 | 28,613 | ||
Available-for-sale securities | 49,662 | 51,403 | ||
Federal Home Loan Bank of Boston stock | 3,515 | 2,650 | ||
Loans, net | 852,305 | 827,090 | ||
Accrued interest receivable | 3,171 | 2,638 | ||
Financial liabilities: | ||||
Deposits | 775,554 | 768,010 | ||
Borrowings | 79,984 | 67,846 | ||
Fair Value Level 1 | ||||
Financial assets: | ||||
Cash and cash equivalents | 23,726 | 28,613 | ||
Available-for-sale securities | 0 | 0 | ||
Federal Home Loan Bank of Boston stock | 3,515 | 2,650 | ||
Loans, net | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Financial liabilities: | ||||
Deposits | 0 | 0 | ||
Borrowings | 0 | 0 | ||
Fair Value Level 2 | ||||
Financial assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale securities | 49,662 | 51,403 | ||
Federal Home Loan Bank of Boston stock | 0 | 0 | ||
Loans, net | 0 | 0 | ||
Accrued interest receivable | 3,171 | 2,638 | ||
Financial liabilities: | ||||
Deposits | 0 | 0 | ||
Borrowings | 79,984 | 67,846 | ||
Fair Value Level 3 | ||||
Financial assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale securities | 0 | 0 | ||
Federal Home Loan Bank of Boston stock | 0 | 0 | ||
Loans, net | 852,305 | 827,090 | ||
Accrued interest receivable | 0 | 0 | ||
Financial liabilities: | ||||
Deposits | 775,554 | 768,010 | ||
Borrowings | $ 0 | $ 0 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Total Capital (to Risk Weighted Assets), Actual Capital, Amount | $ 131,884 | $ 128,939 |
Total Capital (to Risk Weighted Assets), Actual Capital, Ratio | 14.50% | 14.60% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 73,014 | $ 70,891 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 91,267 | $ 88,614 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Amount | $ 120,471 | $ 117,855 |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Ratio | 13.20% | 13.30% |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 54,760 | $ 53,168 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 73,014 | $ 70,891 |
Tier 1 Capital (to Risk Weighted Assets),To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Amount | $ 120,471 | $ 117,855 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Ratio | 13.20% | 13.30% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 41,070 | $ 39,876 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 59,324 | $ 57,599 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets), Actual Capital, Amount | $ 120,471 | $ 117,855 |
Tier 1 Capital (to Average Assets), Actual Capital, Ratio | 12.20% | 12.70% |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Amount | $ 39,512 | $ 37,157 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 49,391 | $ 46,446 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Regulatory Capital (Detail Text
Regulatory Capital (Detail Textuals) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Banking and Thrift [Abstract] | ||
Common equity Tier 1 ("CETI") capital ratio | 4.50% | 4.50% |
Minimum Tier 1 capital to risk-weighted assets ratio | 6.00% | 6.00% |
Minimum total capital to risk-weighted assets ratio | 8.00% | 8.00% |
Minimum Tier 1 leverage ratio | 4.00% | 4.00% |
CETI capital ratio | 6.50% | 6.50% |
Tier 1 ratio | 8.00% | 8.00% |
Total risk based capital ratio | 10.00% | 10.00% |
Tier 1 leverage ratio | 5.00% | |
Capital conservation buffer above required capital ratios in beginning January 1, 2016 | 0.625% | |
Capital conservation buffer fully phased | 2.50% | |
Percentage of stock repurchase plan authorized | 6.60% | |
Number of shares repurchased | 37,471 | |
Average cost per share of stock repurchase | $ 21.57 | |
Number of shares authorized to repurchased | 625,015 |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan (Details) - shares | Mar. 31, 2019 | Dec. 31, 2018 |
Shares held by the ESOP include the following: | ||
Allocated | 95,240 | 71,430 |
Committed to be allocated | 5,952 | 23,810 |
Unallocated | 255,960 | 261,912 |
Total | 357,152 | 357,152 |
Employee Stock Ownership Plan_3
Employee Stock Ownership Plan (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Employee Stock Ownership Plan [Abstract] | |||
Number of shares committed to be released per year through 2029 | 23,810 | ||
ESOP shares | 357,152 | 357,152 | |
Share price | $ 10 | ||
ESOP payable term | 15 years | ||
ESOP prime rate percentage | 5.50% | ||
Fair value of unallocated shares | $ 5,800 | ||
Compensation expense | $ 136 | $ 150 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net Income attributable to common shareholders | $ 2,218 | $ 2,022 |
Average number of common shares issued | 9,662,181 | 9,657,319 |
Less: | ||
average unallocated ESOP shares | (271,525) | (286,226) |
average unvested restricted stock | (87,268) | (122,405) |
average treasury stock acquired | (36,282) | (28,823) |
Average number of common shares outstanding to calculate basic earnings per common share | 9,267,106 | 9,219,865 |
Effect of dilutive unvested restricted stock and stock option awards | 38,178 | 75,138 |
Average number of common shares outstanding to calculate diluted earnings per common share | 9,305,284 | 9,295,003 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.24 | $ 0.22 |
Diluted (in dollars per share) | $ 0.24 | $ 0.22 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - Stock option | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Stock Option Awards | |
Outstanding at December 31, 2018 | shares | 396,438 |
Granted | shares | 0 |
Forfeited | shares | 0 |
Exercised | shares | 0 |
Outstanding at March 31, 2019 | shares | 396,438 |
Outstanding and expected to vest at March 31, 2019 | shares | 396,438 |
Vested and Exercisable at March 31, 2019 | shares | 151,272 |
Unrecognized compensation cost | $ | $ 1,136,000 |
Weighted average remaining recognition period (years) | 2 years 9 months 4 days |
Weighted Average Exercise Price | |
Outstanding at December 31, 2018 | $ / shares | $ 17.89 |
Granted | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Exercised | $ / shares | 0 |
Outstanding at March 31, 2019 | $ / shares | 17.89 |
Outstanding and expected to vest at March 31, 2019 | $ / shares | 17.89 |
Vested and Exercisable at March 31, 2019 | $ / shares | $ 17.50 |
Weighted Average Remaining Contractual Term (years) | |
Outstanding at March 31, 2019 | 7 years 9 months 4 days |
Outstanding and expected to vest at March 31, 2019 | 7 years 9 months 4 days |
Vested and Exercisable at March 31, 2019 | 7 years 7 months 28 days |
Aggregate Intrinsic Value | |
Outstanding at March 31, 2019 | $ | $ 1,888,000 |
Outstanding and expected to vest at March 31, 2019 | $ | 1,888,000 |
Vested and Exercisable at March 31, 2019 | $ | $ 632,000 |
Share-Based Compensation (Det_2
Share-Based Compensation (Details 1) - Restricted stock $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Unvested Restricted Stock Awards | |
Unvested restricted stock awards at December 31, 2018 | shares | 98,073 |
Granted | shares | 0 |
Forfeited | shares | 0 |
Unvested restricted stock awards at March 31, 2019 | shares | 98,073 |
Unrecognized compensation cost | $ | $ 1,557,000 |
Weighted average remaining recognition period (years) | 2 years 9 months 4 days |
Weighted Average Grant Date Price | |
Unvested restricted stock awards at December 31, 2018 | $ / shares | $ 18.13 |
Granted | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Unvested restricted stock awards at March 31, 2019 | $ / shares | $ 18.13 |
Share-Based Compensation (Det_3
Share-Based Compensation (Detail Textuals) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock option | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Share based compensation expenses | $ 97,000 | $ 101,000 |
Restricted stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Share based compensation expenses | $ 168,000 | $ 139,000 |
2016 Equity Incentive Plan (the "Equity Plan") | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Options expiration period | 5 years | |
2016 Equity Incentive Plan (the "Equity Plan") | Stock option | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Shares reserved for future issuance | 446,440 | |
Vesting period (years) | 10 years | |
2016 Equity Incentive Plan (the "Equity Plan") | Restricted stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Shares reserved for future issuance | 178,575 |
Commitments and Contingencies (
Commitments and Contingencies (Detail Textuals) | 1 Months Ended |
Apr. 30, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate principal outstanding balance foreclosure sale | $ 7,500,000 |
Aggregate principal outstanding balance retain by bank | 4,900,000 |
Aggregate principal outstanding balance retain by another institution | 2,600,000 |
Proceeds from sale of foreclosed assets | 8,300,000 |
Amount retain from proceeds of foreclosure sale | 2,000,000 |
Dispute proceeds deposit in suspense account | 1,400,000 |
Dispute proceeds deposit in suspense account by another institution | $ 543,000 |
Leases (Details)
Leases (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Fiscal Year-End | |
Total lease liabilities | $ 3,919 |
Adopted ASU No. 2016-02, Leases (Topic 842) | |
Fiscal Year-End | |
2019 | 153 |
2020 | 165 |
2021 | 172 |
2022 | 172 |
2023 | 172 |
Thereafter | 6,461 |
Total lease payments | 7,295 |
Less imputed interest | (3,376) |
Total lease liabilities | $ 3,919 |
Leases (Details 1)
Leases (Details 1) - Adopted ASU No. 2016-02, Leases (Topic 842) | Mar. 31, 2019 |
Leases [Line Items] | |
Weighted-average remaining lease term - operating leases | 32 years 4 months 24 days |
Weighted-average discount rate - operating leases | 3.77% |
Leases (Detail Textuals)
Leases (Detail Textuals) | 3 Months Ended |
Mar. 31, 2019USD ($)Leased_BranchOperating_Lease | |
Leases [Line Items] | |
Operating lease liabilities | $ 3,919,000 |
Adopted ASU No. 2016-02, Leases (Topic 842) | |
Leases [Line Items] | |
Recognized right-of-use assets | 3,800,000 |
Operating lease liabilities | $ 3,919,000 |
Number of leases branch location | Leased_Branch | 3 |
Description of leases options to extend | Leases include options to extend the lease for up to 20 years |
Number of leases | Operating_Lease | 3 |
Operating leases rent expense | $ 72,000 |
Adopted ASU No. 2016-02, Leases (Topic 842) | Minimum | |
Leases [Line Items] | |
Leases remaining initial contractual lease terms | 9 months |
Adopted ASU No. 2016-02, Leases (Topic 842) | Maximum | |
Leases [Line Items] | |
Leases remaining initial contractual lease terms | 16 years 6 months |