Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2019 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Provident Bancorp, Inc. /MD/ |
Entity Central Index Key | 0001778784 |
Entity Filer Category | Accelerated Filer |
Document Type | S-1 |
Document Period End Date | Mar. 31, 2019 |
Amendment Flag | false |
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 | Dec. 31, 2017 |
Assets | |||
Cash and due from banks | $ 9,151 | $ 10,941 | $ 10,326 |
Short-term investments | 14,575 | 17,672 | 37,363 |
Cash and cash equivalents | 23,726 | 28,613 | 47,689 |
Investments in available-for-sale securities (at fair value) | 49,662 | 51,403 | 61,429 |
Federal Home Loan Bank stock, at cost | 3,515 | 2,650 | 1,854 |
Loans, net | 859,269 | 835,528 | 742,138 |
Assets held-for-sale | 3,286 | ||
Bank owned life insurance | 26,403 | 26,226 | 25,540 |
Premises and equipment, net | 21,467 | 16,086 | 10,981 |
Other real estate owned | 1,720 | 1,676 | |
Accrued interest receivable | 3,171 | 2,638 | 2,345 |
Deferred tax asset, net | 6,589 | 6,437 | 4,920 |
Other assets | 2,997 | 2,822 | 2,083 |
Total assets | 998,519 | 974,079 | 902,265 |
Deposits: | |||
Noninterest-bearing | 198,733 | 195,293 | 186,222 |
Interest-bearing | 576,544 | 572,803 | 563,835 |
Total deposits | 775,277 | 768,096 | 750,057 |
Borrowings | 79,942 | 68,022 | 26,841 |
Operating lease liabilities | 3,919 | ||
Other liabilities | 11,109 | 12,377 | 9,590 |
Total liabilities | 870,247 | 848,495 | 786,488 |
Shareholders' equity | |||
Preferred stock; authorized 50,000 shares: no shares issued and outstanding | |||
Common stock, no par value: 30,000,000 shares authorized; 9,662,181 shares issued, 9,625,719 shares outstanding at December 31, 2018 and 9,657,319 shares issued, 9,628,496 shares oustanding at December 31, 2017 | 0 | 0 | 0 |
Additional paid-in capital | 46,236 | 45,895 | 44,592 |
Retained earnings | 85,569 | 83,351 | 74,047 |
Accumulated other comprehensive (loss) income | (186) | (255) | 589 |
Unearned compensation - ESOP | (2,559) | (2,619) | (2,857) |
Treasury stock: 36,462 and 28,823 shares at December 31, 2018 and 2017, respectively | (788) | (788) | (594) |
Total shareholders' equity | 128,272 | 125,584 | 115,777 |
Total liabilities and shareholders' equity | $ 998,519 | $ 974,079 | $ 902,265 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | |||
Preferred stock, shares authorized | 50,000 | 50,000 | 50,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 | 30,000,000 |
Common stock, shares issued | 9,662,181 | 9,662,181 | 9,657,319 |
Common stock, shares outstanding | 9,625,719 | 9,625,719 | 9,628,496 |
Treasury stock, shares | 36,462 | 36,462 | 28,823 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 11,699 | $ 9,276 | $ 40,358 | $ 32,510 |
Interest and dividends on securities | 404 | 435 | 1,669 | 3,172 |
Interest on short-term investments | 26 | 42 | 313 | 100 |
Total interest and dividend income | 12,129 | 9,753 | 42,340 | 35,782 |
Interest expense: | ||||
Interest on deposits | 1,437 | 920 | 4,468 | 2,944 |
Interest on borrowings | 534 | 114 | 745 | 782 |
Total interest expense | 1,971 | 1,034 | 5,213 | 3,726 |
Net interest and dividend income | 10,158 | 8,719 | 37,127 | 32,056 |
Provision for loan losses | 1,462 | 656 | 3,329 | 2,929 |
Net interest and dividend income after provision for loan losses | 8,696 | 8,063 | 33,798 | 29,127 |
Noninterest income: | ||||
Gain on sales of securities, net | 113 | 5,912 | ||
Bank owned life insurance | 177 | 171 | 686 | 645 |
Other income | 15 | 25 | 64 | 87 |
Total noninterest income | 1,046 | 1,013 | 4,178 | 9,955 |
Noninterest expense: | ||||
Salaries and employee benefits | 4,294 | 4,164 | 16,801 | 15,365 |
Occupancy expense | 644 | 450 | 1,733 | 1,839 |
Equipment expense | 106 | 122 | 471 | 587 |
FDIC assessment | 301 | 309 | ||
Data processing | 203 | 204 | 810 | 741 |
Marketing expense | 55 | 53 | 245 | 300 |
Professional fees | 422 | 248 | 1,223 | 936 |
Directors' fees | 181 | 163 | 620 | 607 |
Other | 841 | 972 | 3,210 | 3,065 |
Total noninterest expense | 6,746 | 6,376 | 25,414 | 23,749 |
Income before income tax expense | 2,996 | 2,700 | 12,562 | 15,333 |
Income tax expense | 778 | 678 | 3,237 | 7,418 |
Net income | $ 2,218 | $ 2,022 | $ 9,325 | $ 7,915 |
Earnings per share: | ||||
Basic | $ 0.24 | $ 0.22 | $ 1.01 | $ 0.86 |
Diluted | $ 0.24 | $ 0.22 | $ 1 | $ 0.86 |
Weighted Average Shares: | ||||
Basic (in shares) | 9,267,106 | 9,219,865 | 9,240,086 | 9,199,274 |
Diluted (in shares) | 9,305,284 | 9,295,003 | 9,306,316 | 9,199,887 |
Customer service fees on deposit accounts | ||||
Noninterest income: | ||||
Fees and commission | $ 1,435 | $ 1,392 | ||
Total noninterest income | $ 329 | $ 362 | ||
Service charges and fees - other | ||||
Noninterest income: | ||||
Fees and commission | $ 1,993 | $ 1,919 | ||
Total noninterest income | $ 412 | $ 455 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,218 | $ 2,022 | $ 9,325 | $ 7,915 |
Other comprehensive loss: | ||||
Unrealized holding gains (losses) | 215 | (1,213) | (1,120) | 2,466 |
Reclassification adjustment for realized gains in net income | (113) | (5,912) | ||
Unrealized gain (loss) | 102 | (1,213) | (1,120) | (3,446) |
Income tax effect | (33) | 354 | 276 | 1,413 |
Other comprehensive loss, net of tax | 69 | (859) | (844) | (2,033) |
Total comprehensive income | $ 2,287 | $ 1,163 | $ 8,481 | $ 5,882 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Shares of Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unearned Compensation ESOP | Treasury Stock | Total |
Balance at Dec. 31, 2016 | $ 43,393 | $ 66,229 | $ 2,622 | $ (3,095) | $ 109,149 | ||
Balance (in shares) at Dec. 31, 2016 | 9,652,448 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 7,915 | 7,915 | |||||
Other comprehensive loss | (2,130) | (2,130) | |||||
Reclassification from AOCI to retained earnings | (97) | 97 | |||||
Other comprehensive loss | (2,033) | ||||||
Stock-based compensation expense | 926 | 926 | |||||
Restricted stock award grants (in shares) | 4,871 | ||||||
Treasury stock acquired | $ (594) | (594) | |||||
Treasury stock acquired (in shares) | (28,823) | ||||||
ESOP shares earned | 273 | 238 | 511 | ||||
Balance at Dec. 31, 2017 | 44,592 | 74,047 | 589 | (2,857) | (594) | 115,777 | |
Balance (in shares) at Dec. 31, 2017 | 9,628,496 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,022 | 2,022 | |||||
Other comprehensive 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, 2017 | 44,592 | 74,047 | 589 | (2,857) | (594) | 115,777 | |
Balance (in shares) at Dec. 31, 2017 | 9,628,496 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 9,325 | 9,325 | |||||
Other comprehensive loss | (844) | (844) | |||||
Stock-based compensation expense | 928 | 928 | |||||
Restricted stock award grants (in shares) | 4,862 | ||||||
Exercise of stock options, net | (21) | 21 | |||||
Exercise of stock options, net (in shares) | 1,010 | ||||||
Treasury stock acquired | (215) | (215) | |||||
Treasury stock acquired (in shares) | (8,649) | ||||||
ESOP shares earned | 375 | 238 | 613 | ||||
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 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 - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities: | |||||
Net income | $ 2,218 | $ 2,022 | $ 9,325 | $ 7,915 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Amortization of securities premiums, net of accretion | 49 | 67 | 274 | 740 | |
ESOP expense | 136 | 150 | 613 | 511 | |
Gain on sale of securities, net | (113) | (5,912) | |||
Change in deferred loan fees, net | 285 | (27) | 378 | 418 | |
Provision for loan losses | 1,462 | 656 | 3,329 | 2,929 | |
Depreciation and amortization | 404 | 185 | 721 | 811 | |
Loss on disposal of premises and equipment | 6 | 2 | |||
(Increase) decrease in accrued interest receivable | (533) | 75 | (293) | (25) | |
Deferred tax (benefit) expense | (185) | (1,241) | 1,309 | ||
Share-based compensation expense | 265 | 240 | 928 | 926 | |
Increase in cash surrender value of life insurance | (177) | (171) | (686) | (645) | |
Principal repayments of operating lease obligations | (18) | ||||
(Increase) decrease in other assets | (175) | 611 | 613 | (539) | |
(Decrease) increase in other liabilities | (1,166) | (664) | 2,787 | 1,036 | |
Net cash provided by operating activities | 2,452 | 3,144 | 16,754 | 9,476 | |
Cash flows from investing activities: | |||||
Purchases of available-for-sale securities | (13,729) | (13,121) | |||
Proceeds from sales of available-for-sale securities | 13,565 | 57,259 | |||
Proceeds from pay downs, maturities and calls of available-for-sale securities | 2,071 | 2,359 | 8,632 | 14,026 | |
(Purchase) redemption of Federal Home Loan Bank Stock | (865) | (312) | (796) | 933 | |
Loan originations and purchases, net of paydowns | (25,488) | (18,373) | (100,073) | (121,060) | |
Additions to premises and equipment | (1,950) | (58) | (2,399) | (3,426) | |
Additions to assets held-for-sale | (147) | (147) | (67) | ||
Additions to other real estate owned | (44) | (52) | |||
Purchase of bank owned life insurance | (5,500) | ||||
Net cash used in investing activities | (26,440) | (16,531) | (94,835) | (70,956) | |
Cash flows from financing activities: | |||||
Net (decrease) increase in demand deposits, NOW and savings accounts | (15,544) | (22,826) | 22,841 | 110,748 | |
Net increase (decrease) in time deposits | 22,725 | (7,526) | (4,802) | 11,327 | |
Proceeds from advances from the Federal Home Loan Bank | 10,000 | 7,000 | |||
Net change in short-term borrowings | 11,920 | 18,370 | 31,181 | (30,017) | |
Purchase of treasury stock | (215) | (594) | |||
Net cash provided by (used in) financing activities | 19,101 | (11,982) | 59,005 | 98,464 | |
Net (decrease) increase in cash and cash equivalents | (4,887) | (25,369) | (19,076) | 36,984 | |
Cash and cash equivalents at beginning of year | 28,613 | 47,689 | 47,689 | 10,705 | |
Cash and cash equivalents at end of year | 23,726 | 22,320 | 28,613 | 47,689 | |
Supplemental disclosures: | |||||
Interest paid | 1,995 | 1,098 | 5,326 | 3,725 | |
Income taxes paid | 290 | 3,638 | 6,667 | ||
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 | |||
Loan transferred to other real estate owned | 1,624 | ||||
Loan transferred to other assets | 1,352 | ||||
Transfer from premises and equipment to assets held-for-sale | $ 3,433 | ||||
Assets held-for-sale transferred to premises and equipment | $ 3,433 | $ 3,219 | |||
[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 | Note 1 – Basis of Presentation The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting solely of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for the three months ended March 31, 2019, are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2019. Certain prior year amounts have been reclassified to conform to the current year presentation. In preparing the unaudited consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”); management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that are particularly susceptible to change are: the allowance for loan losses; the evaluation of goodwill and other intangible assets, impairment on investment securities, fair value measurements of assets and liabilities, and income taxes. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the preparation of interim financial statements. The consolidated financial statements presented should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2018, of Provident Bancorp, Inc. as filed with the SEC. |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | Note 1 - Nature of Operations Provident Bancorp, Inc. (the “Company”) is a Massachusetts-chartered corporation organized for the purpose of owning all of the outstanding capital stock of The Provident Bank (the “Bank”). Provident Bancorp, the Company’s mutual holding company (the “MHC”), owns approximately 52.3% of the Company’s stock. The Company is headquartered in Amesbury, Massachusetts. The Bank operates its business from eight banking offices located in Amesbury and Newburyport, Massachusetts and Portsmouth, Exeter, Hampton, Bedford, and Seabrook, New Hampshire. The Bank provides a variety of financial services to individuals and small businesses. Its primary deposit products are checking, savings and term certificate accounts and its primary lending products are commercial mortgages and commercial loans. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | Note 2 - Accounting Policies The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and predominant practices within the banking industry. The consolidated financial statements were prepared using the accrual basis of accounting. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, stock-based compensation expense and deferred income taxes. Basis of Presentation The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All material intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks, and short-term investments comprised of interest-bearing demand deposits with other banks and federal funds sold. Investment Securities Investments in debt securities are adjusted for amortization of premiums and accretion of discounts so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis and are recorded as of the trade date. Debt and equity securities may be classified into one of three categories: held-to-maturity, available-for-sale or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities must be classified as available-for-sale. · Held-to-maturity securities, if any, are measured at amortized cost in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings or as a separate component of shareholders’ equity. · Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, but are reported as a net amount (less expected tax) as a separate component of shareholders’ equity until realized. · Trading securities, if any, are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings. The Company evaluates securities within the Company’s available for sale portfolio for other-than-temporary impairment (“OTTI”), at least quarterly. If the fair value of a debt security is below the amortized cost basis of the security, OTTI is required to be recognized if any of the following are met: (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes. Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank of Boston (the “FHLB”), the Company is required to invest in $100 par value stock of the FHLB. The FHLB capital structure mandates that members own stock as determined by their Total Stock Investment Requirement which is the sum of a member’s Membership Stock Investment Requirement and Activity-Based Stock Investment Requirement. FHLB stock is a non-marketable equity security that is carried at cost and evaluated for impairment when deemed necessary. Loans Loan receivables that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for amounts due to borrowers on unadvanced loans, any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is recognized as an adjustment of the related loan yield using the interest method. The Company is amortizing these amounts over the contractual life of the related loans. Residential real estate loans are generally placed on non-accrual status when reaching 90 days past due or in process of collection. Past due status is based on the contractual terms of the loan. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on non-accrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged-off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Interest income received on non-accrual loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibality of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses is allocated to loan types using both a formula-based approach (general component) and an analysis of certain individual loans for impairment (allocated component). A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures. The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction and land development, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. These historical loss factors are adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate Commercial Residential real estate Construction and land development Consumer The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The Company from time to time, may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modified loan is considered a troubled debt restructuring (“TDR”). All TDRs are initially classified as impaired. An unallocated component can be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Assets Held-for-Sale Assets held-for-sale represented a commercial property being held for sale to a real estate developer. Assets designated as held for sale were held at the lower of carrying amount at designation or fair value less costs to sell. Depreciation is not charged against assets classified as held for sale. In 2018, the Company decided to retain this property for use and reclassified the property to premises and equipment. Bank-Owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are not subject to income taxes. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Generally, depreciation on the buildings and equipment is calculated principally on the straight line method, and depreciation and amortization expense is charged against operations over the estimated useful lives of the related assets. Other Real Estate Owned and Repossessed Assets Assets acquired through, or in lieu of, loan foreclosure or repossession are held for sale and are initially recorded at the lower of the investment in the loan or fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. Subsequently, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations, changes in the valuation allowance, any direct write-downs and gains or losses on sales are included in other real estate owned expense. Advertising The Company directly expenses costs associated with advertising as they are incurred. Earnings per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Employee Stock Ownership Plan Compensation expense for The Provident Bank Employee Stock Ownership Plan (the “ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity on the consolidated balance sheets. The difference between the average fair value and the cost of the shares by the ESOP is recorded as an adjustment to additional paid-in-capital. Stock-based Compensation Plans The Company measures and recognizes compensation cost relating to stock-based payment transactions based on the grant-date fair value of the equity instruments issued. Stock-based compensation is recognized over the period the employee is required to provide services for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. The fair value of restricted stock is recorded based on the grant date value of the equity instrument issued. Treasury Stock Common stock repurchased are recorded as treasury stock at cost. Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. The Company examines its significant income tax positions annually to determine whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. Fair Values of Financial Instruments GAAP requires that the Company disclose estimated fair values for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows: Cash and cash equivalents Investments Loans receivable Accrued interest receivable Deposit liabilities Borrowings Off-balance sheet instruments Recent Accounting Pronouncements ASU (Accounting Standards Update) No. 2014-09 – Revenue from Contracts with Customers (Topic 606). This ASU was effective for the Company on January 1, 2018. Because the ASU does not apply to revenue associated with leases and financial instruments (including loans and securities), the Company concluded that the new guidance did not impact the elements of its consolidated statements of income most closely associated with leases and financial instruments (such as interest income, interest expense and securities gains). The Company completed its identification of all revenue streams included in its financial statements and has identified its deposit-related fees, service charges, debit and prepaid card interchange income and other fee income to be within the scope of the standard. The Company has also completed its review of the related contracts. The Company's overall assessment indicates that adoption of this ASU did not materially change its current method and timing of recognizing revenue for the identified revenue streams and therefore, the adoption of this ASU as of January 1, 2018, did not have a significant impact to the Company's financial condition, results of operations and consolidated financial statements. ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-02, Leases (Topic 842). ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” ASU No. 2016-15, Statement of Cash Flows (Topic 230): “Classification of Certain Cash Receipts and Cash Payments.” ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (subtopic 310-20): “Premium Amortization on Purchased Callable Debt Securities.” ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” |
INVESTMENTS SECURITIES AVAILABL
INVESTMENTS SECURITIES AVAILABLE-FOR-SALE | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
INVESTMENTS SECURITIES AVAILABLE-FOR-SALE | Note 2 - Investments Securities Available-for-Sale The following summarizes the amortized cost of investment securities classified as available-for-sale and their approximate fair values at 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. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary. Available-for-Sale Amortized Fair (In thousands) Cost Value Due within one year $ 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 During the three months ended March 31, 2019, gross realized gains on sales and calls were $216,000, and gross losses realized were $103,000. There were no realized gains or losses on sales and calls during the three months ended March 31, 2018. There were no securities of issuers whose aggregate carrying amount exceeded 10% of equity at March 31, 2019. Securities with carrying amounts of $38.1 million and $31.1 million were pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank at March 31, 2019 and December 31, 2018, respectively. The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized-loss position for less than twelve months and for twelve months or more, and are temporarily impaired, are as follows at 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 $ 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 $ 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 | Note 3 - Investments Securities Available-for-Sale The following summarizes the amortized cost of investment securities classified as available-for-sale and their approximate fair values at December 31, 2018 and 2017: Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value December 31, 2018 State and municipal $ 20,118 $ 272 $ 135 $ 20,255 Asset-backed securities 6,512 - 141 6,371 Government mortgage-backed securities 25,135 138 496 24,777 Total available-for-sale securities $ 51,765 $ 410 $ 772 $ 51,403 December 31, 2017 State and municipal $ 20,726 $ 745 $ 17 $ 21,454 Asset-backed securities 7,524 30 37 7,517 Government mortgage-backed securities 32,421 317 280 32,458 Total available-for-sale securities $ 60,671 $ 1,092 $ 334 $ 61,429 The scheduled maturities of debt securities were as follows at December 31, 2018. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary. Available-for-Sale Amortized Fair (In thousands) Cost Value Due within one year $ 95 $ 95 Due after one year through five years 604 608 Due after five years through ten years 2,120 2,169 Due after ten years 17,299 17,383 Government mortgage-backed securities 25,135 24,777 Asset-backed securities 6,512 6,371 $ 51,765 $ 51,403 There were no realized gains or losses on sales and calls during the year ended December 31, 2018. During the year ended December 31, 2017, gross realized gains on sales and calls were $6.4 million, and gross losses realized were $505,000. There were no securities of issuers whose aggregate carrying amount exceeded 10% of equity at December 31, 2018. Securities with carrying amounts of $31.1 million and $39.8 million were pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank at December 31, 2018 and 2017, respectively. The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized-loss position for less than twelve months and for twelve months or more, and are temporarily impaired, are as follows at December 31, 2018 and 2017: Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses December 31, 2018 Temporarily impaired securities: State and municipal $ 6,137 $ 115 $ 597 $ 20 $ 6,734 $ 135 Asset-backed securities 3,833 98 2,538 43 6,371 141 Government mortgage-backed securities 2,864 32 14,152 464 17,016 496 Total temporarily impaired securities $ 12,834 $ 245 $ 17,287 $ 527 $ 30,121 $ 772 December 31, 2017 Temporarily impaired securities: State and municipal $ - $ - $ 611 $ 17 $ 611 $ 17 Asset-backed securities 1,745 13 1,335 24 3,080 37 Government mortgage-backed securities 5,231 20 13,584 260 18,815 280 Total temporarily impaired securities $ 6,976 $ 33 $ 15,530 $ 301 $ 22,506 $ 334 Government mortgage-backed securities, state and municipal securities and asset-backed securities |
LOANS
LOANS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
LOANS | Note 3 – Loans Loans consisted of the following at March 31, 2019 and December 31, 2018: March 31, December 31, (In thousands) 2019 2018 Commercial real estate $ 373,435 $ 364,867 Commercial 382,550 361,782 Residential real estate 54,898 57,361 Construction and land development 42,441 44,606 Consumer 19,310 19,815 872,634 848,431 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: (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 Real Estate Commercial Residential Real Estate Construction and Land Development 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 At March 31, 2019 and December 31, 2018, loans with an aggregate principal balance of $423.2 million and $393.8 million, respectively, were pledged to secure possible borrowings from the Federal Reserve Bank. The following tables set forth information regarding non-accrual loans and past-due loans 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 Nonaccrual (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 March 31, 2019 and 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 Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2018 With no related allowance recorded: Commercial real estate $ 1,334 $ 1,334 $ - $ 5,614 $ 69 Commercial 4,050 4,110 - 4,894 38 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance $ 5,772 $ 5,832 $ - $ 10,904 $ 127 With an allowance recorded: Commercial real estate $ 519 $ 519 $ 62 $ 519 $ - Commercial 1,241 1,267 1,039 1,695 52 Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded $ 1,760 $ 1,786 $ 1,101 $ 2,214 $ 52 Total Commercial real estate $ 1,853 $ 1,853 $ 62 $ 6,133 $ 69 Commercial 5,291 5,377 1,039 6,589 90 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 7,532 $ 7,618 $ 1,101 $ 13,118 $ 179 The following summarizes troubled debt restructurings entered into during the three months ended March 31, 2019: (Dollars in thousands) Number of Pre- 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 entered into during the year ended December 31, 2018. At March 31, 2019, there were no commitments to lend additional funds to borrowers whose loans were modified in troubled debt restructurings. Credit Quality Information The Company utilizes a seven grade internal loan rating system for commercial real estate, construction and land development, and commercial loans as follows: Loans rated 1-3 Loans rated 4 Loans rated 5 Loans rated 6 Loans rated 7 On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and land development, and commercial loans. For residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and rates such loans as pass. Subsequent risk rating downgrades are based upon the borrower’s payment activity. All other residential and consumer loans are not formally rated. The following tables present the Company’s loans by risk rating and portfolio segment at March 31, 2019 and December 31, 2018: Construction (In thousands) Commercial Commercial Residential and Land 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 Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $18.6 million and $18.8 million at March 31, 2019 and December 31, 2018, respectively. | Note 4 – Loans Loans consisted of the following at December 31, 2018 and 2017: (In thousands) 2018 2017 Commercial real estate $ 364,867 $ 371,510 Commercial 361,782 240,223 Residential real estate 57,361 67,724 Construction and land development 44,606 55,828 Consumer 19,815 17,455 848,431 752,740 Allowance for loan losses (11,680 ) (9,757 ) Deferred loan fees, net (1,223 ) (845 ) Net loans $ 835,528 $ 742,138 The following tables set forth information regarding the allowance for loans and impaired loans by portfolio segment as of and for the years ended December 31, 2018 and 2017: (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total December 31, 2018 Allowance for loan losses: Beginning balance $ 4,483 $ 3,280 $ 300 $ 965 $ 649 $ 80 $ 9,757 Charge-offs (670 ) (190 ) - - (699 ) - (1,559 ) Recoveries - 87 2 - 64 - 153 Provision (credit) 339 2,565 (51 ) (227 ) 696 7 3,329 Ending balance $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Ending balance: Individually evaluated for impairment $ 62 $ 1,039 $ - $ - $ - $ - $ 1,101 Ending balance: Collectively evaluated for impairment 4,090 4,703 251 738 710 87 10,579 Total allowance for loan losses ending balance $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Loans: Ending balance: Individually evaluated for impairment $ 1,853 $ 5,291 $ 388 $ - $ - $ 7,532 Ending balance: Collectively evaluated for impairment 363,014 356,491 56,973 44,606 19,815 840,899 Total loans ending balance $ 364,867 $ 361,782 $ 57,361 $ 44,606 $ 19,815 $ 848,431 (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total December 31, 2017 Allowance for loan losses: Beginning balance $ 4,503 $ 2,513 $ 328 $ 882 $ 279 $ 85 $ 8,590 Charge-offs (1,522 ) (107 ) - - (190 ) - (1,819 ) Recoveries - 45 - - 12 - 57 Provision (credit) 1,502 829 (28 ) 83 548 (5 ) 2,929 Ending balance $ 4,483 $ 3,280 $ 300 $ 965 $ 649 $ 80 $ 9,757 Ending balance: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - Ending balance: Collectively evaluated for impairment 4,483 3,280 300 965 649 80 9,757 Total allowance for loan losses ending balance $ 4,483 $ 3,280 $ 300 $ 965 $ 649 $ 80 $ 9,757 Loans: Ending balance: Individually evaluated for impairment $ 8,623 $ 3,202 $ 404 $ - $ - $ 12,229 Ending balance: Collectively evaluated for impairment 362,887 237,021 67,320 55,828 17,455 740,511 Total loans ending balance $ 371,510 $ 240,223 $ 67,724 $ 55,828 $ 17,455 $ 752,740 At December 31, 2018 and 2017, loans with an aggregate principal balance of $393.8 million and $357.1 million, respectively, were pledged to secure possible borrowings from the Federal Reserve Bank. Certain directors and executive officers of the Company and companies in which they have significant ownership interests were customers of the Bank during 2018. The following is a summary of the loans to such persons and their companies at December 31, 2018 and 2017: (In thousands) Balance beginning January 1, 2017 $ 7,739 Effect of changes in composition of related parties (85 ) Advances 18,809 Principal payments (4,190 ) Ending balance, December 31, 2017 $ 22,273 Balance beginning January 1, 2018 $ 22,273 Effect of changes in composition of related parties (339 ) Advances 11 Principal payments (9,988 ) Ending balance, December 31, 2018 $ 11,957 The following tables set forth information regarding non-accrual loans and past-due loans by portfolio segment at December 31, 2018 and 2017: 90 Days 90 Days Total or More 30 - 59 60 - 89 or More Past Total Total Past Due Nonaccrual (In thousands) Days Days Past Due Due Current Loans and Accruing Loans December 31, 2018 Commercial real estate $ 742 $ - $ 519 $ 1,261 $ 363,606 $ 364,867 $ - $ 519 Commercial 40 - 3,167 3,207 358,575 361,782 - 4,830 Residential real estate 321 223 30 574 56,787 57,361 - 850 Construction and land development - - - - 44,606 44,606 - - Consumer 62 46 59 167 19,648 19,815 - 62 Total $ 1,165 $ 269 $ 3,775 $ 5,209 $ 843,222 $ 848,431 $ - $ 6,261 December 31, 2017 Commercial real estate $ - $ 3,669 $ - $ 3,669 $ 367,841 $ 371,510 $ - $ 7,102 Commercial 12 - - 12 240,211 240,223 - 1,505 Residential real estate 699 178 81 958 66,766 67,724 - 364 Construction and land development - - - - 55,828 55,828 - - Consumer 63 45 60 168 17,287 17,455 - 62 Total $ 774 $ 3,892 $ 141 $ 4,807 $ 747,933 $ 752,740 $ - $ 9,033 Information about the Company’s impaired loans by portfolio segment was as follows at December 31, 2018 and 2017: Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2018 With no related allowance recorded: Commercial real estate $ 1,334 $ 1,334 $ - $ 5,614 $ 69 Commercial 4,050 4,110 - 4,894 38 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance $ 5,772 $ 5,832 $ - $ 10,904 $ 127 With an allowance recorded: Commercial real estate $ 519 $ 519 $ 62 $ 519 $ - Commercial 1,241 1,267 1,039 1,695 52 Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded $ 1,760 $ 1,786 $ 1,101 $ 2,214 $ 52 Total Commercial real estate $ 1,853 $ 1,853 $ 62 $ 6,133 $ 69 Commercial 5,291 5,377 1,039 6,589 90 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 7,532 $ 7,618 $ 1,101 $ 13,118 $ 179 There were no troubled debt restructurings entered into during the year ended December 31, 2018. Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2017 With no related allowance recorded: Commercial real estate $ 8,623 $ 10,139 $ - $ 4,562 $ 70 Commercial 3,202 3,202 - 2,054 123 Residential real estate 404 404 - 412 20 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance $ 12,229 $ 13,745 $ - $ 7,028 $ 213 With an allowance recorded: Commercial real estate $ - $ - $ - $ - $ - Commercial - - - - - Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded $ - $ - $ - $ - $ - Total Commercial real estate $ 8,623 $ 10,139 $ - $ 4,562 $ 70 Commercial 3,202 3,202 - 2,054 123 Residential real estate 404 404 - 412 20 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 12,229 $ 13,745 $ - $ 7,028 $ 213 The following summarizes troubled debt restructurings entered into during the year ended December 31, 2017: (Dollars in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Investment Year-Ended December 31, 2017 Troubled debt restructurings: Commercial 1 $ 249 $ 249 1 $ 249 $ 249 In 2017, we approved one troubled debt restructure totaling $249,000, with no specific reserve required based on an analysis of the borrower’s collateral coverage. The term of this commercial loan was extended to a three-year term. The loan modified as troubled debt restructuring during 2017 did not default during the one-year period after modification. At December 31, 2018 and 2017, there were no commitments to lend additional funds to borrowers whose loans were modified in troubled debt restructurings. Credit Quality Information The Company utilizes a seven grade internal loan rating system for commercial real estate, construction and land development, and commercial loans as follows: Loans rated 1-3 Loans rated 4 Loans rated 5 Loans rated 6 Loans rated 7 On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and land development, and commercial loans. For residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and rates such loans as pass. Subsequent risk rating downgrades are based upon the borrower’s payment activity. All other residential and consumer loans are not formally rated. The following tables present the Company’s loans by risk rating and portfolio segment at December 31, 2018 and 2017: (In thousands) Commercial Commercial Residential Construction Consumer Total December 31, 2018 Grade: Pass $ 356,415 $ 339,079 $ - $ 44,606 $ - $ 740,100 Special mention 6,531 11,339 - - - 17,870 Substandard 1,921 10,447 571 - - 12,939 Doubtful - 917 - - - 917 Not formally rated - - 56,790 - 19,815 76,605 Total $ 364,867 $ 361,782 $ 57,361 $ 44,606 $ 19,815 $ 848,431 December 31, 2017 Grade: Pass $ 355,623 $ 224,190 $ - $ 55,828 $ - $ 635,641 Special mention 6,852 9,155 - - - 16,007 Substandard 9,035 6,878 679 - - 16,592 Not formally rated - - 67,045 - 17,455 84,500 Total $ 371,510 $ 240,223 $ 67,724 $ 55,828 $ 17,455 $ 752,740 In 2017, the Bank had sold mortgage loans with servicing rights retained. The fair value of those servicing rights under GAAP was not material and was not recognized in the 2017 consolidated financial statements. In 2018, the Bank sold the servicing portfolio totaling $294,000. Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $18.8 million and $15.6 million at December 31, 2018 and 2017, respectively. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | Note 5 - Premises and Equipment The following is a summary of premises and equipment at December 31, 2018 and 2017: (In thousands) 2018 2017 Land $ 2,424 $ 2,424 Buildings and leasehold improvements 9,241 9,241 Furniture and equipment 4,520 4,649 Leasehold improvements 4,234 4,241 Construction in progress 5,748 - 26,167 20,555 Accumulated depreciation and amortization (10,081 ) (9,574 ) Premises and equipment, net $ 16,086 $ 10,981 Depreciation and amortization expense was $721,000 and $811,000 for the years ended December 31, 2018 and 2017, respectively. |
DEPOSITS
DEPOSITS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Deposits [Abstract] | ||
DEPOSITS | Note 4 - Deposits The following is a summary of deposit balances by type at March 31, 2019 and December 31, 2018: 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 At March 31, 2019 and December 31, 2018, the aggregate amount of brokered certificates of deposit was $69.1 million and $55.8 million respectively. Brokered certificates of deposit are not included in the totals for time deposits in denominations over $250,000 listed above. At March 31, 2019 and December 31, 2018, the scheduled maturities for certificate accounts for each of the following five years are as follows: March 31, December 31, (In thousands) 2019 2018 Within one year $ 77,622 $ 55,061 More than one year to two years 32,457 32,089 More than two years to three years 8,740 8,938 More than three years to four years 840 794 More than four years through five years 462 514 Total $ 120,121 $ 97,396 | Note 6 - Deposits The following is a summary of deposit balances by type at December 31, 2018 and 2017: (In thousands) 2018 2017 NOW and demand $ 332,064 $ 309,514 Regular savings 109,322 112,610 Money market deposits 229,314 225,735 Total non-certificate accounts 670,700 647,859 Certificate accounts of $250,000 or more 14,164 5,061 Certificate accounts less than $250,000 83,232 97,137 Total certificate accounts 97,396 102,198 Total deposits $ 768,096 $ 750,057 At December 31, 2018 and 2017, the aggregate amount of brokered certificates of deposit was $55.8 million and $62.3 million respectively. Brokered certificates of deposit are not included in the totals for time deposits in denominations over $250,000 listed above. At December 31, 2018 and 2017, the scheduled maturities for certificate accounts for each of the following five years are as follows: (In thousands) 2018 2017 2018 $ - $ 81,791 2019 55,061 16,105 2020 32,089 3,052 2021 8,938 410 2022 794 840 2023 514 - Total $ 97,396 $ 102,198 Deposits from related parties held by the Company at December 31, 2018 and 2017 amounted to $7.4 million and $16.0 million, respectively. |
Borrowings
Borrowings | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Advances from Federal Home Loan Banks [Abstract] | ||
BORROWINGS | Note 5 - Borrowings 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: March 31, (In thousands) 2019 Fiscal Year-End 2019 $ 54,979 2020 11,463 2021 5,000 2023 8,500 Total $ 79,942 | Note 7 – Borrowings Advances consist of funds borrowed from the FHLB and the FRB borrower-in-custody (“BIC”) program. Maturities of advances from the FHLB and FRB for years ending after December 31, 2018 and 2017 are summarized as follows: (In thousands) 2018 2017 2018 $ - $ 12,000 2019 43,071 4,936 2020 11,451 6,405 2021 5,000 - 2023 8,500 - Thereafter - 3,500 Total $ 68,022 $ 26,841 Borrowings from the FRB BIC program are secured by a Uniform Commercial Code (“UCC”) financing statement on qualified collateral, consisting of certain commercial loans and qualified mortgage-backed government securities. At December 31, 2018, FRB borrowings consisted of overnight borrowings totaling $8.1 million and had an interest rate of 3.00%. Borrowings from the FHLB, which aggregated $59,922 and $26,841 at December 31, 2018 and 2017, respectively, are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one to four family properties, certain commercial loans and qualified mortgage-backed government securities. At December 31, 2018, the interest rates on FHLB advances ranged from 1.53% to 3.01%, and the weighted average interest rate on FHLB advances was 2.52%. The Bank modified $5.0 million and $3.5 million of its FHLB borrowings and extended the maturity in May of 2017 and August of 2015, respectively. The Bank incurred a prepayment penalty of $87,000 and $233,000 in May of 2017 and August of 2015, respectively. In accordance with ASC 470, the prepayment penalties are being amortized over the life of the newly modified borrowings. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 8 - Income Taxes The components of income tax expense are as follows for the years ended December 31, 2018 and 2017: (In thousands) 2018 2017 Current tax expense (benefit): Federal $ 3,214 $ 5,044 State 1,278 1,079 Net operating loss carryforward (14 ) (14 ) 4,478 6,109 Deferred tax expense (benefit): Federal (926 ) 1,523 State (315 ) (214 ) (1,241 ) 1,309 Income tax expense $ 3,237 $ 7,418 The following is a summary of the differences between the statutory federal income tax rate and the effective tax rates for the years ended December 31, 2018 and 2017: 2018 2017 Federal income tax at statutory rate 21.0 % 34.0 % Increase (decrease) in tax resulting from: State tax, net of federal tax benefit 5.7 4.6 Tax exempt income and dividends received deduction (1.0 ) (3.3 ) Change in enacted federal tax rate - 13.4 Other 0.1 (0.3 ) Effective tax rate 25.8 % 48.4 % On December 22, 2017, the U.S. government approved a reduction in the federal statutory income tax rate from a maximum rate of 35% to 21%, effective in 2018. For the purposes of calculating deferred taxes, GAAP requires deferred taxes to be measured at the enacted tax rate at the balance sheet date, which was 21% at December 31, 2017. The impact of the rate reduction to the Company was a decrease in the Bank's net deferred tax asset by $2.0 million, which is reflected in the Company's tax provision for the year ended December 31, 2017. This adjustment to deferred taxes included $97,000 related to unrealized gains and losses associated with the Company’s investment securities. Because these unrealized gains and losses were initially recorded as items of accumulated other comprehensive income in the Company's capital accounts, the adjustment to deferred taxes resulted in a disproportionate tax effect of $97,000 that became stranded in accumulated other comprehensive income. In February of 2018, the FASB issued ASU No. 2018-02," Income Statement- Reporting Comprehensive income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The following is a summary of the Company’s gross deferred tax assets and gross deferred tax liabilities at December 31, 2018 and 2017: (In thousands) 2018 2017 Deferred tax assets: Allowance for loan losses $ 3,251 $ 2,743 Depreciation 160 41 Net operating loss carryforward 16 25 Employee benefit plans and share-based compensation plans 2,498 1,979 Deferred loan fees, net 339 238 Reserve for unfunded commitments 31 39 Net unrealized loss on securities 107 - Other 109 140 Gross deferred tax assets 6,511 5,205 Deferred tax liabilities: Prepaid expenses (45 ) (64 ) FHLB restructure fees (29 ) (52 ) Net unrealized holding gain on securities - (169 ) Gross deferred tax liabilities (74 ) (285 ) Net deferred tax asset $ 6,437 $ 4,920 At December 31, 2018, the Company had federal net operating loss carryovers of $76,000. The carryovers were transferred to the Company upon the merger with Amesbury Cooperative Bank during the year ended December 31, 2001. The losses will expire in 2020 and are subject to certain annual limitations which amount to $42,000 per year. The Company reduces the deferred tax asset by a valuation allowance if, based on the weight of the available evidence, it is not “more likely than not” that some portion or all of the deferred tax assets will be realized. The Company assesses the realizability of its deferred tax assets by assessing the likelihood of the Company generating federal and state income tax, as applicable, in future periods in amounts sufficient to offset the deferred tax charges in the periods they are expected to reverse. Based on this assessment, management concluded that a valuation allowance was not required as of December 31, 2018 and 2017. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2018 and 2017, there was no material uncertain tax positions related to federal and state income tax matters. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2015 through December 31, 2017. |
EMPLOYEE BENEFITS & SHARE-BASED
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS | Note 6 – Employee Benefits & Share-Based Compensation Plans 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 Share-Based Compensation Plan Stock Options 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 Average 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 Total expense for the stock options was $97,000 and $101,000 for the three months ended March 31, 2019 and 2018, respectively. Restricted Stock The following table presents the activity in unvested restricted stock awards under the Equity Plan for the three months ended March 31, 2019: Number of Shares Weighted Average Unvested restricted stock awards at Decemer 31, 2018 98,073 $ 18.13 Granted - Forfeited - Vested - 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 Total expense for the restricted stock awards was $168,000 and $139,000 for the three months ended March 31, 2019 and 2018, respectively. | Note 9 - Employee Benefits & Share-Based Compensation Plans 401(k) Plan The Company sponsors a 401(k) plan. All employees are eligible to join the 401(k) plan. However, participants in the 401(k) plan must complete one year of service to be eligible for safe harbor contributions and employer discretionary contributions. A Safe Harbor Plan was adopted by the Company effective January 1, 2007. Under the Safe Harbor Plan, the Company matches 100% of employee contributions up to 6% of compensation. In addition, the Company may make a discretionary contribution to the 401(k) plan determined on an annual basis. Employees may contribute up to 75% of their salary subject to certain limits based on federal tax laws. The expense recognized under the 401(k) plan was $494,000 and $440,000 for the years ended December 31, 2018 and 2017, respectively. Supplemental Executive Retirement Plans The Company has Supplemental Executive Retirement Agreements with certain executive officers. These agreements are designed to supplement the benefits available through the Company’s retirement plan. The liability for the retirement benefits amounted to $6.8 million and $5.6 million at December 31, 2018 and 2017, respectively, and is included in other liabilities. The expense recognized for these benefits was $1.1 million and $1.2 million for the years ended December 31, 2018 and 2017, respectively. Employee Stock Ownership Plan The Bank maintains the ESOP to provide eligible employees the opportunity to own Company stock. This plan is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released per year through 2029 is 23,810. The Company contributed funds to a subsidiary to enable it to grant a loan to the ESOP for the purchase of 357,152 shares of the Company’s stock at a price of $10.00 per share. The loan obtained by the ESOP from the Company’s subsidiary to purchase Company stock is payable annually over 15 years at a rate per annum equal to the prime rate (5.50% at December 31, 2018). Loan payments are principally funded by cash contributions from the Company. Shares held by the ESOP include the following: December 31, 2018 December 31, 2017 Allocated 71,430 47,620 Committed to be allocated 23,810 23,810 Unallocated 261,912 285,722 Total 357,152 357,152 Shared-Based Compensation Plan Under the Provident Bancorp, Inc. 2016 Equity Incentive Plan (the "Equity Plan"), the Company may grant options, restricted stock, restricted units or performance awards to its directors, officers and employees. Both incentive stock options and non-qualified stock options may be granted under the Equity Plan, with 446,440 shares reserved for options. The exercise price of each option equals the market price of the Company’s stock on the date of grant and the maximum term of each option is ten years. The total number of shares reserved for restricted stock or restricted units is 178,575. The value of restricted stock grants is based on the market price of the stock on grant date. Options and awards vest ratably over five years. Expense related to options and restricted stock granted to directors is recognized as directors' fees within non-interest expense. Stock Options The fair value of each option is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions: · Volatility is based on peer group volatility because the Company does not have a sufficient trading history. · Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, and the vesting period. · The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. The fair value of options granted in 2018 and 2017 is based on the following assumptions: 2018 2017 Vesting period (years) 5 5 Expiration date (years) 10 10 Expected volatility 21.23 % 21.53 % Expected life (years) 7.5 7.5 Expected dividend yield 0.00 % 0.00 % Risk free interest rate 2.97 % 2.25 % Fair value per option $ 8.71 $ 7.05 A summary of the status of the Company’s stock option grants for the year ended December 31, 2018, is presented in the table below: Stock Option Weighted Weighted Average Aggregate Outstanding at January 1, 2018 396,443 $ 17.61 Granted 12,170 27.20 Forfeited (9,740 ) 17.40 Exercised (2,435 ) 17.40 Outstanding at December 31, 2018 396,438 $ 17.89 8.00 $ 1,503,000 Outstanding and expected to vest 396,438 $ 17.89 8.00 $ 1,503,000 Vested and Exercisable 151,272 $ 17.50 7.90 $ 632,000 Unrecognized compensation cost $ 1,233,000 Weighted average remaining 3.01 Total expense for the stock options was $404,000 and $388,000 for the years ended December 31, 2018 and 2017, respectively. Restricted Stock Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company. Any shares not issued because vesting requirements are not met will again be available for issuance under the plan. The fair market value of shares awarded, based on the market prices at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period. The following table presents the activity in unvested restricted stock awards under the Equity Plan for the year ended December 31, 2018: Number of Shares Weighted Average Unvested restricted stock awards at January 1, 2018 127,852 $ 17.59 Granted 4,862 27.20 Forfeited (3,896 ) 17.40 Vested (30,745 ) 17.59 Unvested restricted stock awards at Decemer 31, 2018 98,073 $ 18.13 Unrecognized compensation cost $ 1,724,000 Weighted average remaining recognition period (years) 3.01 Total expense for the restricted stock awards was $524,000 and $538,000 for the years ended December 31, 2018 and 2017, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
EARNINGS PER SHARE | Note 7 - Earnings Per Share Earnings per share consisted of the following components for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands) 2019 2018 Net income attributable to common shareholders $ 2,218 $ 2,022 Average number of common shares outstanding 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 | Note 10 - Earnings Per Share Earnings per share consisted of the following components for the year ended December 31, 2018 and 2017. (Dollars in thousands) 2018 2017 Net income attributable to common shareholders $ 9,325 $ 7,915 Average number of common shares outstanding 9,659,357 9,652,448 Less: average unallocated ESOP shares (283,337 ) (298,680 ) average unvested restricted stock (106,033 ) (136,986 ) average treasury stock acquired (29,901 ) (17,508 ) Average number of common shares outstanding 9,240,086 9,199,274 Effect of dilutive unvested restricted stock and stock option awards 66,230 613 Average number of common shares outstanding 9,306,316 9,199,887 Earnings per common share: Basic $ 1.01 $ 0.86 Diluted $ 1.00 $ 0.86 |
REGULATORY MATTERS
REGULATORY MATTERS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Banking and Thrift [Abstract] | ||
REGULATORY MATTERS | Note 8 - Regulatory Matters The Bank’s actual capital amounts and ratios at March 31, 2019 and December 31, 2018 are summarized as follows: To Be Well Capitalized Under Actual For Capital Prompt Corrective Capital Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total Capital (to Risk Weighted Assets) $ 131,884 14.45 % $ 73,014 > 8.0 % $ 91,267 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 120,471 13.20 54,760 > 6.0 73,014 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 120,471 13.20 41,070 > 4.5 59,324 > 6.5 Tier 1 Capital (to Average Assets) 120,471 12.20 39,512 > 4.0 49,391 > 5.0 December 31, 2018 Total Capital (to Risk Weighted Assets) $ 128,939 14.55 % $ 70,891 > 8.0 % $ 88,614 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 117,855 13.30 53,168 > 6.0 70,891 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 117,855 13.30 39,876 > 4.5 57,599 > 6.5 Tier 1 Capital (to Average Assets) 117,855 12.69 37,157 > 4.0 46,446 > 5.0 | Note 11 - Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Effective January 1, 2015 (with a phase-in period of two to four years for certain components), the Bank became subject to capital regulations adopted by the FDIC, which implement the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The regulations require a minimum Common Equity Tier 1 (“CET1”) capital ratio of 4.5%, a minimum Tier 1 capital to risk-weighted assets ratio of 6.0%, a minimum total capital to risk-weighted assets ratio of 8.0% and a minimum Tier 1 leverage ratio of 4.0%. CET1 generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. Under prompt corrective action regulations, in order to be considered “well capitalized,” the Bank must maintain a CET1 capital ratio of 6.5% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, a total risk-based capital ratio of 10.0% or greater and a leverage ratio of 5.0% or greater. In addition, the regulations establish a capital conservation buffer above the required capital ratios that started phasing in on January 1, 2016 at 0.625% of risk-weighted assets and increases each year by 0.625% until it is fully phased in at 2.5% effective January 1, 2019. At December 31, 2018, the Bank exceeded the fully phased in regulatory requirement for the capital conservation buffer. Failure to maintain the capital conservation buffer could limit the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses. As of December 31, 2018 and 2017, the Bank met the conditions to be classified as well capitalized under the regulatory framework for prompt corrective action. The Bank’s actual capital amounts and ratios at December 31, 2018 and 2017 are summarized as follows: To Be Well Capitalized Under Actual For Capital Prompt Corrective Capital Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total Capital (to Risk Weighted Assets) $ 128,939 14.55 % $ 70,891 > 8.0 % $ 88,614 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 117,855 13.30 53,168 > 6.0 70,891 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 117,855 13.30 39,876 > 4.5 57,599 > 6.5 Tier 1 Capital (to Average Assets) 117,855 12.69 37,157 > 4.0 46,446 > 5.0 December 31, 2017 Total Capital (to Risk Weighted Assets) $ 116,869 14.96 % $ 62,514 > 8.0 % $ 78,142 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 107,112 13.71 46,885 > 6.0 62,514 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 107,112 13.71 35,164 > 4.5 50,792 > 6.5 Tier 1 Capital (to Average Assets) 107,112 11.80 36,299 > 4.0 45,374 > 5.0 Liquidation Account Upon the completion of the Company’s stock offering in 2015, a special “liquidation account” was established for the benefit of certain depositors of the Bank in an amount equal to the percentage ownership interest in the equity of the Company to be held by persons other than the MHC as of the date of the latest balance sheet contained in the prospectus. The Company is not permitted to pay dividends on its capital stock if the Company’s shareholders’ equity would be reduced below the amount of the liquidation account. The liquidation account is reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | Note 13 - Financial Instruments with Off-Balance Sheet Risk The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, standby letters of credit and unadvanced funds on loans. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the borrower. Collateral held varies, but may include secured interests in real property, accounts receivable, inventory, property, plant and equipment and income producing properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. At December 31, 2018 and 2017, the maximum potential amount of the Company’s obligation was $1.5 million and $2.0 million, respectively, for financial and standby letters of credit. The Company’s outstanding letters of credit generally have a term of less than one year. If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit. Notional amounts of financial instruments with off-balance sheet credit risk are as follows at December 31, 2018 and 2017: (In thousands) 2018 2017 Commitments to originate loans $ 42,625 $ 18,641 Letters of credit 1,546 2,004 Unadvanced portions of loans 196,104 166,314 $ 240,275 $ 186,959 |
SIGNIFICANT GROUP CONCENTRATION
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | Note 14 - Significant Group Concentrations of Credit Risk Most of the Company's business activity is with customers located within northeast Massachusetts and southeast New Hampshire. There are no concentrations of credit to borrowers that have similar economic characteristics. The majority of the Company's loan portfolio is comprised of loans collateralized by real estate located in northeast Massachusetts and southeast New Hampshire. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | Note 9 - Leases Effective January 1, 2019, the Company adopted Accounting Standard Update (ASU) No. 2016-02, Leases (Topic 842) In July 2018, the Financial Accounting Standards Board (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 our 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 % |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
FAIR VALUE MEASUREMENTS | Note 10 - Fair Value Measurements The Company reports certain assets at fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value in accordance with generally accepted accounting principles. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Basis of Fair Value Measurements · Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; · Level 2 – Observable inputs other than level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; · Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). 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 U.S. Government and federal agency, state and municipal, asset-backed and government mortgage-backed securities available-for-sale are generally classified within Level 2 of the fair value hierarchy. For these investments, we obtain fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. The following summarizes assets measured at fair value on a recurring basis at 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 $ 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 $ 20,255 $ - $ 20,255 $ - Asset-backed securities 6,371 - 6,371 - Government mortgage-backed securities 24,777 - 24,777 - Totals $ 51,403 $ - $ 51,403 $ - The Company did not have any transfers of assets measured at fair value on a recurring basis between Levels 1 and 2 of the fair value hierarchy during the three months ended March 31, 2019. Fair Values of Assets Measured on a Nonrecurring Basis The Company’s only assets measured at fair value on a nonrecurring basis are loans identified as impaired for which a write-off or specific reserve has been recorded, and other real estate owned. Certain impaired loans of the Company are reported at the fair value of the underlying collateral, less estimated selling costs. The Company classifies impaired loans as Level 3 in the fair value hierarchy. Collateral values are estimated using Level 2 inputs based upon appraisals of similar properties obtained from a third party, but can be adjusted and therefore classified as level 3. The Company classifies other real estate owned as Level 2 in the fair value hierarchy if the Company has received a purchase and sales agreement. The following summarizes assets measured at fair value on a nonrecurring basis at 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 | Note 15 - Fair Value Measurements The Company reports certain assets at fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value in accordance with generally accepted accounting principles. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Basis of Fair Value Measurements · Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; · Level 2 – Observable inputs other than level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; · Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair Values of Assets Measured on a Recurring Basis The Company’s investments in U.S. Government and federal agency, state and municipal, asset-backed and government mortgage-backed securities available-for-sale are generally classified within Level 2 of the fair value hierarchy. For these investments, we obtain fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. The following summarizes assets measured at fair value on a recurring basis at December 31, 2018 and 2017: 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 December 31, 2018 State and municipal $ 20,255 $ - $ 20,255 $ - Asset-backed securities 6,371 - 6,371 - Mortgage-backed securities 24,777 - 24,777 - Totals $ 51,403 $ - $ 51,403 $ - December 31, 2017 State and municipal $ 21,454 $ - $ 21,454 $ - Asset-backed securities 7,517 - 7,517 - Government mortgage-backed securities 32,458 - 32,458 - Totals $ 61,429 $ - $ 61,429 $ - The Company did not have any transfers of assets measured at fair value on a recurring basis between Levels 1 and 2 of the fair value hierarchy during the years ended December 31, 2018 and 2017. Fair Values of Assets Measured on a Nonrecurring Basis The Company’s only assets measured at fair value on a nonrecurring basis are loans identified as impaired for which a write-off or specific reserve has been recorded, and other real estate owned. Certain impaired loans of the Company are reported at the fair value of the underlying collateral, less estimated selling costs. The Company classifies impaired loans as Level 3 in the fair value hierarchy. Collateral values are estimated using Level 2 inputs based upon appraisals of similar properties obtained from a third party, but can be adjusted and therefore classified as level 3. The Company classifies other real estate owned as Level 2 in the fair value hierarchy if the Company has received a purchase and sales agreement. The following summarizes assets measured at fair value on a nonrecurring basis at December 31, 2018 and 2017: 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 December 31, 2018 Impaired loans $ 659 $ - $ - $ 659 Other real estate owned 1,676 - 1,676 - December 31, 2017 Impaired loans $ 3,670 $ - $ - $ 3,670 The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at December 31, 2018 and 2017: (In thousands) Fair Value Valuation Technique Unobservable Input December 31, 2018 Impaired loans $ 659 Real estate appraisals Discount for dated appraisals December 31, 2017 Impaired loans $ 3,670 Real estate appraisals Discount for dated appraisals |
DISCLOSURES ABOUT FAIR VALUES O
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Of Financial Instrument [Abstract] | ||
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS | Note 11 - Disclosures About Fair Values of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Certain financial instruments and all nonfinancial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company's financial instruments, all of which are held or issued for purposes other than trading, are as follows at 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 The carrying amounts of financial instruments shown above are included in the consolidated balance sheets under the indicated captions. Accounting policies related to financial instruments are described in Note 2. | Note 16 - Disclosures About Fair Values of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Certain financial instruments and all nonfinancial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company's financial instruments, all of which are held or issued for purposes other than trading, are as follows at December 31, 2018 and 2017: Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total December 31, 2018 Financial assets: Cash and cash equivalents $ 28,613 $ 28,613 $ - $ - $ 28,613 Available-for-sale securities 51,403 - 51,403 - 51,403 Federal Home Loan Bank of Boston stock 2,650 2,650 - - 2,650 Loans, net 835,528 - - 827,090 827,090 Accrued interest receivable 2,638 - 2,638 - 2,638 Financial liabilities: Deposits 768,096 - - 768,010 768,010 Borrowings 68,022 - 67,846 - 67,846 December 31, 2017 Financial assets: Cash and cash equivalents $ 47,689 $ 47,689 $ - $ - $ 47,689 Available-for-sale securities 61,429 - 61,429 - 61,429 Federal Home Loan Bank of Boston stock 1,854 1,854 - - 1,854 Loans, net 742,138 - - 745,637 745,637 Accrued interest receivable 2,345 - 2,345 - 2,345 Financial liabilities: Deposits 750,057 - - 749,898 749,898 Borrowings 26,841 - 26,655 - 26,655 The carrying amounts of financial instruments shown above are included in the consolidated balance sheets under the indicated captions. Accounting policies related to financial instruments are described in Note 2. |
RECLASSIFICATION
RECLASSIFICATION | 12 Months Ended |
Dec. 31, 2018 | |
Reclassification [Abstract] | |
RECLASSIFICATION | Note 17 - Reclassification Certain amounts in the prior year have been reclassified to be consistent with the current year's consolidated financial statement presentation, and had no effect on the net income reported in the consolidated income statement. |
COMMITMENTS & CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS & CONTINGENCIES | Note 12– Commitments & Contingencies 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. | Note 12 - Commitments and Contingent Liabilities At December 31, 2018, the Company was obligated under non-cancelable operating leases for bank premises and equipment. The total minimum rental due in future periods under these existing agreements is as follows at December 31, 2018: (In thousands) 2019 $ 285 2020 244 2021 252 2022 252 2023 252 Years thereafter 1,908 Total minimum lease payments $ 3,193 The total rental expense amounted to $460,000 and $349,000 for the years ended December 31, 2018 and 2017, respectively. Litigation In April 2018 , From time to time, the Company is involved in litigation incidental to its business. The Company does not believe that the ultimate resolution of these legal matters will have a significant impact on the Company’s financial condition and results of operations. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | Note 13– Subsequent Event On June 5, 2019, the Board of Trustees of Provident Bancorp (“MHC”) and the Board of Directors of the Company adopted a Plan of Conversion and Reorganization (the “Plan”). Pursuant to the Plan, the MHC will convert from the mutual holding company form of organization to the fully public form. The MHC will be merged into the Company, and the MHC will no longer exist. The Company will merge into a new Maryland corporation named Provident Bancorp, Inc. As part of the conversion, the MHC’s ownership interest of the Company will be offered for sale in a public offering. The existing publicly held shares of the Company, which represents the remaining ownership interest in the Company, will be exchanged for new shares of common stock of Provident Bancorp, Inc., the new Maryland Corporation. The exchange ratio will ensure that immediately after the conversion and public offering, the public shareholders of the Company will own the same aggregate percentage of Provident Bancorp, Inc. common stock that they owned immediately prior to that time (excluding shares purchased in the stock offering and cash received in lieu of fractional shares), adjusted to reflect assets held by the MHC. When the conversion and public offering are completed, all of the capital stock of The Provident Bank will be owned by Provident Bancorp, Inc., the Maryland corporation. The Plan provides for the establishment, upon the completion of the conversion, of special “liquidation accounts” for the benefit of certain depositors of The Provident Bank in an amount equal to the MHC’s ownership interest in the retained earnings of the Company as of the date of the latest balance sheet contained in the prospectus plus the MHC’s net assets (excluding its ownership of the Company). Following the completion of the conversion, the Company and The Provident Bank will not be permitted to pay dividends on their capital stock if the shareholders’ equity of Provident Bancorp, Inc., the Maryland corporation, or the shareholder’s equity of The Provident Bank, would be reduced below the amount of the liquidation accounts. The liquidation accounts will be 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 accounts. Direct costs of the conversion and public offering will be deferred and reduce the proceeds from the shares sold in the public offering. Costs of $30,000 have been incurred related to the conversion as of March 31, 2019. |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY | Note 18 – Condensed Financial Statements of Parent Only Financial information pertaining only to Provident Bancorp, Inc. is as follows: Provident Bancorp, Inc. - Parent Only Balance Sheet (In thousands) 2018 2017 Assets Cash and due from banks $ 5,249 $ 5,224 Investment in common stock of The Provident Bank 117,615 107,629 Other assets 2,755 2,946 Total assets $ 125,619 $ 115,799 Liabilities and Shareholders' Equity Accrued expenses $ 35 $ 22 Shareholders' equity 125,584 115,777 Total liabilities and shareholders' equity $ 125,619 $ 115,799 Provident Bancorp, Inc. - Parent Only Income Statement Years Ended December 31, (In thousands) 2018 2017 Total income $ 140 $ 120 Operating expenses 90 88 Income before income taxes and equity in undistributed net income of The Provident Bank 50 32 Applicable income tax provision 14 13 Income before equity in income of subsidiaries 36 19 Equity in undistributed net income of The Provident Bank 9,289 7,896 Net income $ 9,325 $ 7,915 Provident Bancorp, Inc. - Parent Only Statement of Cash Flows Twelve Months Ended December 31, (In thousands) 2018 2017 Cash flows from operating activities: Net income $ 9,325 $ 7,915 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (9,289 ) (7,896 ) Decrease in other assets 191 191 Increase (decrease) in other liabilities 13 (51 ) Net cash provided by operating activities 240 159 Cash flows from financing activities: Purchase of treasury stock (215 ) (594 ) Net cash used in financing activities (215 ) (594 ) Net increase (decrease) in cash and cash equivalents 25 (435 ) Cash and cash equivalents at beginning of year 5,224 5,659 Cash and cash equivalents at end of year $ 5,249 $ 5,224 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | Note 19 – Selected Quarterly Financial Data (unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands) 2018 2017 2018 2017 2018 2017 2018 2017 Interest and dividend income $ 9,753 $ 8,112 $ 10,377 $ 8,816 $ 10,833 $ 9,239 $ 11,377 $ 9,615 Interest expense 1,034 781 1,213 879 1,429 1,005 1,537 1,062 Net interest and dividend income 8,719 7,331 9,164 7,937 9,404 8,234 9,840 8,553 Provision for loan losses 656 563 638 892 1,421 1,012 614 462 Gain on sale of securities, net - 482 - 58 - 1,851 - 3,521 Other income 1,013 1,020 1,118 1,012 1,059 1,046 988 966 Total noninterest income 1,013 1,502 1,118 1,070 1,059 2,897 988 4,487 Total noninterest expense 6,376 5,621 6,411 5,875 6,223 5,914 6,404 6,339 Income tax expense 678 847 843 639 741 1,434 975 4,498 Net income $ 2,022 $ 1,802 $ 2,390 $ 1,601 $ 2,078 $ 2,771 $ 2,835 $ 1,741 Income per share: Basic $ 0.22 $ 0.16 $ 0.26 $ 0.15 $ 0.22 $ 0.19 $ 0.31 $ 0.19 Diluted $ 0.22 $ 0.16 $ 0.26 $ 0.15 $ 0.22 $ 0.19 $ 0.30 $ 0.19 Weighted Average Shares: Basic 9,219,865 9,192,568 9,233,745 9,193,836 9,247,367 9,201,634 9,258,858 9,208,854 Diluted 9,225,003 9,192,568 9,302,425 9,198,286 9,355,410 9,213,056 9,339,431 9,257,702 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, stock-based compensation expense and deferred income taxes. | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting solely of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for the three months ended March 31, 2019, are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2019. Certain prior year amounts have been reclassified to conform to the current year presentation. In preparing the unaudited consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”); management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that are particularly susceptible to change are: the allowance for loan losses; the evaluation of goodwill and other intangible assets, impairment on investment securities, fair value measurements of assets and liabilities, and income taxes. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the preparation of interim financial statements. The consolidated financial statements presented should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2018, of Provident Bancorp, Inc. as filed with the SEC. | Basis of Presentation The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All material intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from banks, and short-term investments comprised of interest-bearing demand deposits with other banks and federal funds sold. | |
Investment Securities | Investment Securities Investments in debt securities are adjusted for amortization of premiums and accretion of discounts so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis and are recorded as of the trade date. Debt and equity securities may be classified into one of three categories: held-to-maturity, available-for-sale or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities must be classified as available-for-sale. · Held-to-maturity securities, if any, are measured at amortized cost in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings or as a separate component of shareholders’ equity. · Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, but are reported as a net amount (less expected tax) as a separate component of shareholders’ equity until realized. · Trading securities, if any, are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings. The Company evaluates securities within the Company’s available for sale portfolio for other-than-temporary impairment (“OTTI”), at least quarterly. If the fair value of a debt security is below the amortized cost basis of the security, OTTI is required to be recognized if any of the following are met: (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes. | |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank of Boston (the “FHLB”), the Company is required to invest in $100 par value stock of the FHLB. The FHLB capital structure mandates that members own stock as determined by their Total Stock Investment Requirement which is the sum of a member’s Membership Stock Investment Requirement and Activity-Based Stock Investment Requirement. FHLB stock is a non-marketable equity security that is carried at cost and evaluated for impairment when deemed necessary. | |
Loans | Loans Loan receivables that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for amounts due to borrowers on unadvanced loans, any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is recognized as an adjustment of the related loan yield using the interest method. The Company is amortizing these amounts over the contractual life of the related loans. Residential real estate loans are generally placed on non-accrual status when reaching 90 days past due or in process of collection. Past due status is based on the contractual terms of the loan. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on non-accrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged-off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Interest income received on non-accrual loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. | |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibality of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses is allocated to loan types using both a formula-based approach (general component) and an analysis of certain individual loans for impairment (allocated component). A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures. The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction and land development, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. These historical loss factors are adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate Commercial Residential real estate Construction and land development Consumer The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The Company from time to time, may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modified loan is considered a troubled debt restructuring (“TDR”). All TDRs are initially classified as impaired. An unallocated component can be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. | |
Assets Held-for-Sale | Assets Held-for-Sale Assets held-for-sale represented a commercial property being held for sale to a real estate developer. Assets designated as held for sale were held at the lower of carrying amount at designation or fair value less costs to sell. Depreciation is not charged against assets classified as held for sale. In 2018, the Company decided to retain this property for use and reclassified the property to premises and equipment. | |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are not subject to income taxes. | |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Generally, depreciation on the buildings and equipment is calculated principally on the straight line method, and depreciation and amortization expense is charged against operations over the estimated useful lives of the related assets. | |
Other Real Estate Owned and Repossessed Assets | Other Real Estate Owned and Repossessed Assets Assets acquired through, or in lieu of, loan foreclosure or repossession are held for sale and are initially recorded at the lower of the investment in the loan or fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. Subsequently, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations, changes in the valuation allowance, any direct write-downs and gains or losses on sales are included in other real estate owned expense. | |
Advertising | Advertising The Company directly expenses costs associated with advertising as they are incurred. | |
Earnings per Share | Earnings per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. | |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Compensation expense for The Provident Bank Employee Stock Ownership Plan (the “ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity on the consolidated balance sheets. The difference between the average fair value and the cost of the shares by the ESOP is recorded as an adjustment to additional paid-in-capital. | |
Stock-based Compensation Plans | Stock-based Compensation Plans The Company measures and recognizes compensation cost relating to stock-based payment transactions based on the grant-date fair value of the equity instruments issued. Stock-based compensation is recognized over the period the employee is required to provide services for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. The fair value of restricted stock is recorded based on the grant date value of the equity instrument issued. | |
Treasury Stock | Treasury Stock Common stock repurchased are recorded as treasury stock at cost. | |
Income Taxes | Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. The Company examines its significant income tax positions annually to determine whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments GAAP requires that the Company disclose estimated fair values for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows: Cash and cash equivalents Investments Loans receivable Accrued interest receivable Deposit liabilities Borrowings Off-balance sheet instruments | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU (Accounting Standards Update) No. 2014-09 – Revenue from Contracts with Customers (Topic 606). This ASU was effective for the Company on January 1, 2018. Because the ASU does not apply to revenue associated with leases and financial instruments (including loans and securities), the Company concluded that the new guidance did not impact the elements of its consolidated statements of income most closely associated with leases and financial instruments (such as interest income, interest expense and securities gains). The Company completed its identification of all revenue streams included in its financial statements and has identified its deposit-related fees, service charges, debit and prepaid card interchange income and other fee income to be within the scope of the standard. The Company has also completed its review of the related contracts. The Company's overall assessment indicates that adoption of this ASU did not materially change its current method and timing of recognizing revenue for the identified revenue streams and therefore, the adoption of this ASU as of January 1, 2018, did not have a significant impact to the Company's financial condition, results of operations and consolidated financial statements. ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-02, Leases (Topic 842). ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” ASU No. 2016-15, Statement of Cash Flows (Topic 230): “Classification of Certain Cash Receipts and Cash Payments.” ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (subtopic 310-20): “Premium Amortization on Purchased Callable Debt Securities.” ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” |
INVESTMENTS SECURITIES AVAILA_2
INVESTMENTS SECURITIES AVAILABLE-FOR-SALE (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
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 | Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value December 31, 2018 State and municipal $ 20,118 $ 272 $ 135 $ 20,255 Asset-backed securities 6,512 - 141 6,371 Government mortgage-backed securities 25,135 138 496 24,777 Total available-for-sale securities $ 51,765 $ 410 $ 772 $ 51,403 December 31, 2017 State and municipal $ 20,726 $ 745 $ 17 $ 21,454 Asset-backed securities 7,524 30 37 7,517 Government mortgage-backed securities 32,421 317 280 32,458 Total available-for-sale securities $ 60,671 $ 1,092 $ 334 $ 61,429 |
Schedule of maturities of debt securities | Available-for-Sale Amortized Fair (In thousands) Cost Value Due within one year $ 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 | Available-for-Sale Amortized Fair (In thousands) Cost Value Due within one year $ 95 $ 95 Due after one year through five years 604 608 Due after five years through ten years 2,120 2,169 Due after ten years 17,299 17,383 Government mortgage-backed securities 25,135 24,777 Asset-backed securities 6,512 6,371 $ 51,765 $ 51,403 |
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 $ 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 $ 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 | Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses December 31, 2018 Temporarily impaired securities: State and municipal $ 6,137 $ 115 $ 597 $ 20 $ 6,734 $ 135 Asset-backed securities 3,833 98 2,538 43 6,371 141 Government mortgage-backed securities 2,864 32 14,152 464 17,016 496 Total temporarily impaired securities $ 12,834 $ 245 $ 17,287 $ 527 $ 30,121 $ 772 December 31, 2017 Temporarily impaired securities: State and municipal $ - $ - $ 611 $ 17 $ 611 $ 17 Asset-backed securities 1,745 13 1,335 24 3,080 37 Government mortgage-backed securities 5,231 20 13,584 260 18,815 280 Total temporarily impaired securities $ 6,976 $ 33 $ 15,530 $ 301 $ 22,506 $ 334 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Schedule of loans | March 31, December 31, (In thousands) 2019 2018 Commercial real estate $ 373,435 $ 364,867 Commercial 382,550 361,782 Residential real estate 54,898 57,361 Construction and land development 42,441 44,606 Consumer 19,310 19,815 872,634 848,431 Allowance for loan losses (11,857 ) (11,680 ) Deferred loan fees, net (1,508 ) (1,223 ) Net loans $ 859,269 $ 835,528 | (In thousands) 2018 2017 Commercial real estate $ 364,867 $ 371,510 Commercial 361,782 240,223 Residential real estate 57,361 67,724 Construction and land development 44,606 55,828 Consumer 19,815 17,455 848,431 752,740 Allowance for loan losses (11,680 ) (9,757 ) Deferred loan fees, net (1,223 ) (845 ) Net loans $ 835,528 $ 742,138 |
Schedule of allowance for loans and impaired loans by portfolio segment | (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 (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development 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 | (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total December 31, 2018 Allowance for loan losses: Beginning balance $ 4,483 $ 3,280 $ 300 $ 965 $ 649 $ 80 $ 9,757 Charge-offs (670 ) (190 ) - - (699 ) - (1,559 ) Recoveries - 87 2 - 64 - 153 Provision (credit) 339 2,565 (51 ) (227 ) 696 7 3,329 Ending balance $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Ending balance: Individually evaluated for impairment $ 62 $ 1,039 $ - $ - $ - $ - $ 1,101 Ending balance: Collectively evaluated for impairment 4,090 4,703 251 738 710 87 10,579 Total allowance for loan losses ending balance $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Loans: Ending balance: Individually evaluated for impairment $ 1,853 $ 5,291 $ 388 $ - $ - $ 7,532 Ending balance: Collectively evaluated for impairment 363,014 356,491 56,973 44,606 19,815 840,899 Total loans ending balance $ 364,867 $ 361,782 $ 57,361 $ 44,606 $ 19,815 $ 848,431 (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total December 31, 2017 Allowance for loan losses: Beginning balance $ 4,503 $ 2,513 $ 328 $ 882 $ 279 $ 85 $ 8,590 Charge-offs (1,522 ) (107 ) - - (190 ) - (1,819 ) Recoveries - 45 - - 12 - 57 Provision (credit) 1,502 829 (28 ) 83 548 (5 ) 2,929 Ending balance $ 4,483 $ 3,280 $ 300 $ 965 $ 649 $ 80 $ 9,757 Ending balance: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - Ending balance: Collectively evaluated for impairment 4,483 3,280 300 965 649 80 9,757 Total allowance for loan losses ending balance $ 4,483 $ 3,280 $ 300 $ 965 $ 649 $ 80 $ 9,757 Loans: Ending balance: Individually evaluated for impairment $ 8,623 $ 3,202 $ 404 $ - $ - $ 12,229 Ending balance: Collectively evaluated for impairment 362,887 237,021 67,320 55,828 17,455 740,511 Total loans ending balance $ 371,510 $ 240,223 $ 67,724 $ 55,828 $ 17,455 $ 752,740 |
Schedule of loans to directors and executive officers of the company and companies in which they have significant ownership interests | (In thousands) Balance beginning January 1, 2017 $ 7,739 Effect of changes in composition of related parties (85 ) Advances 18,809 Principal payments (4,190 ) Ending balance, December 31, 2017 $ 22,273 Balance beginning January 1, 2018 $ 22,273 Effect of changes in composition of related parties (339 ) Advances 11 Principal payments (9,988 ) Ending balance, December 31, 2018 $ 11,957 | |
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 Nonaccrual (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 | 90 Days 90 Days Total or More 30 - 59 60 - 89 or More Past Total Total Past Due Nonaccrual (In thousands) Days Days Past Due Due Current Loans and Accruing Loans December 31, 2018 Commercial real estate $ 742 $ - $ 519 $ 1,261 $ 363,606 $ 364,867 $ - $ 519 Commercial 40 - 3,167 3,207 358,575 361,782 - 4,830 Residential real estate 321 223 30 574 56,787 57,361 - 850 Construction and land development - - - - 44,606 44,606 - - Consumer 62 46 59 167 19,648 19,815 - 62 Total $ 1,165 $ 269 $ 3,775 $ 5,209 $ 843,222 $ 848,431 $ - $ 6,261 December 31, 2017 Commercial real estate $ - $ 3,669 $ - $ 3,669 $ 367,841 $ 371,510 $ - $ 7,102 Commercial 12 - - 12 240,211 240,223 - 1,505 Residential real estate 699 178 81 958 66,766 67,724 - 364 Construction and land development - - - - 55,828 55,828 - - Consumer 63 45 60 168 17,287 17,455 - 62 Total $ 774 $ 3,892 $ 141 $ 4,807 $ 747,933 $ 752,740 $ - $ 9,033 |
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 Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2018 With no related allowance recorded: Commercial real estate $ 1,334 $ 1,334 $ - $ 5,614 $ 69 Commercial 4,050 4,110 - 4,894 38 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance $ 5,772 $ 5,832 $ - $ 10,904 $ 127 With an allowance recorded: Commercial real estate $ 519 $ 519 $ 62 $ 519 $ - Commercial 1,241 1,267 1,039 1,695 52 Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded $ 1,760 $ 1,786 $ 1,101 $ 2,214 $ 52 Total Commercial real estate $ 1,853 $ 1,853 $ 62 $ 6,133 $ 69 Commercial 5,291 5,377 1,039 6,589 90 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 7,532 $ 7,618 $ 1,101 $ 13,118 $ 179 | Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2018 With no related allowance recorded: Commercial real estate $ 1,334 $ 1,334 $ - $ 5,614 $ 69 Commercial 4,050 4,110 - 4,894 38 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance $ 5,772 $ 5,832 $ - $ 10,904 $ 127 With an allowance recorded: Commercial real estate $ 519 $ 519 $ 62 $ 519 $ - Commercial 1,241 1,267 1,039 1,695 52 Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded $ 1,760 $ 1,786 $ 1,101 $ 2,214 $ 52 Total Commercial real estate $ 1,853 $ 1,853 $ 62 $ 6,133 $ 69 Commercial 5,291 5,377 1,039 6,589 90 Residential real estate 388 388 - 396 20 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 7,532 $ 7,618 $ 1,101 $ 13,118 $ 179 Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2017 With no related allowance recorded: Commercial real estate $ 8,623 $ 10,139 $ - $ 4,562 $ 70 Commercial 3,202 3,202 - 2,054 123 Residential real estate 404 404 - 412 20 Construction and land development - - - - - Consumer - - - - - Total impaired with no related allowance $ 12,229 $ 13,745 $ - $ 7,028 $ 213 With an allowance recorded: Commercial real estate $ - $ - $ - $ - $ - Commercial - - - - - Residential real estate - - - - - Construction and land development - - - - - Consumer - - - - - Total impaired with an allowance recorded $ - $ - $ - $ - $ - Total Commercial real estate $ 8,623 $ 10,139 $ - $ 4,562 $ 70 Commercial 3,202 3,202 - 2,054 123 Residential real estate 404 404 - 412 20 Construction and land development - - - - - Consumer - - - - - Total impaired loans $ 12,229 $ 13,745 $ - $ 7,028 $ 213 |
Schedule of troubled debt restructurings | (Dollars in thousands) Number of Pre- Post- March 31, 2019 Troubled debt restructurings: Commercial 1 $ 1,963 $ 1,963 1 $ 1,963 $ 1,963 | (Dollars in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Investment Year-Ended December 31, 2017 Troubled debt restructurings: Commercial 1 $ 249 $ 249 1 $ 249 $ 249 |
Schedule of loans by risk rating and portfolio segment | Construction (In thousands) Commercial Commercial Residential and Land 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 | (In thousands) Commercial Commercial Residential Construction Consumer Total December 31, 2018 Grade: Pass $ 356,415 $ 339,079 $ - $ 44,606 $ - $ 740,100 Special mention 6,531 11,339 - - - 17,870 Substandard 1,921 10,447 571 - - 12,939 Doubtful - 917 - - - 917 Not formally rated - - 56,790 - 19,815 76,605 Total $ 364,867 $ 361,782 $ 57,361 $ 44,606 $ 19,815 $ 848,431 December 31, 2017 Grade: Pass $ 355,623 $ 224,190 $ - $ 55,828 $ - $ 635,641 Special mention 6,852 9,155 - - - 16,007 Substandard 9,035 6,878 679 - - 16,592 Not formally rated - - 67,045 - 17,455 84,500 Total $ 371,510 $ 240,223 $ 67,724 $ 55,828 $ 17,455 $ 752,740 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | (In thousands) 2018 2017 Land $ 2,424 $ 2,424 Buildings and leasehold improvements 9,241 9,241 Furniture and equipment 4,520 4,649 Leasehold improvements 4,234 4,241 Construction in progress 5,748 - 26,167 20,555 Accumulated depreciation and amortization (10,081 ) (9,574 ) Premises and equipment, net $ 16,086 $ 10,981 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
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 | (In thousands) 2018 2017 NOW and demand $ 332,064 $ 309,514 Regular savings 109,322 112,610 Money market deposits 229,314 225,735 Total non-certificate accounts 670,700 647,859 Certificate accounts of $250,000 or more 14,164 5,061 Certificate accounts less than $250,000 83,232 97,137 Total certificate accounts 97,396 102,198 Total deposits $ 768,096 $ 750,057 |
Schedule of maturities of certificate accounts | March 31, December 31, (In thousands) 2019 2018 Within one year $ 77,622 $ 55,061 More than one year to two years 32,457 32,089 More than two years to three years 8,740 8,938 More than three years to four years 840 794 More than four years through five years 462 514 Total $ 120,121 $ 97,396 | (In thousands) 2018 2017 2018 $ - $ 81,791 2019 55,061 16,105 2020 32,089 3,052 2021 8,938 410 2022 794 840 2023 514 - Total $ 97,396 $ 102,198 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Advances from Federal Home Loan Banks [Abstract] | ||
Schedule of maturities of advances from the FHLB | March 31, (In thousands) 2019 Fiscal Year-End 2019 $ 54,979 2020 11,463 2021 5,000 2023 8,500 Total $ 79,942 | (In thousands) 2018 2017 2018 $ - $ 12,000 2019 43,071 4,936 2020 11,451 6,405 2021 5,000 - 2023 8,500 - Thereafter - 3,500 Total $ 68,022 $ 26,841 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components for income tax expense | (In thousands) 2018 2017 Current tax expense (benefit): Federal $ 3,214 $ 5,044 State 1,278 1,079 Net operating loss carryforward (14 ) (14 ) 4,478 6,109 Deferred tax expense (benefit): Federal (926 ) 1,523 State (315 ) (214 ) (1,241 ) 1,309 Income tax expense $ 3,237 $ 7,418 |
Schedule of differences between the statutory federal income tax rate and the effective tax rates | 2018 2017 Federal income tax at statutory rate 21.0 % 34.0 % Increase (decrease) in tax resulting from: State tax, net of federal tax benefit 5.7 4.6 Tax exempt income and dividends received deduction (1.0 ) (3.3 ) Change in enacted federal tax rate - 13.4 Other 0.1 (0.3 ) Effective tax rate 25.8 % 48.4 % |
Schedule of deferred tax assets and deferred tax liabilities | (In thousands) 2018 2017 Deferred tax assets: Allowance for loan losses $ 3,251 $ 2,743 Depreciation 160 41 Net operating loss carryforward 16 25 Employee benefit plans and share-based compensation plans 2,498 1,979 Deferred loan fees, net 339 238 Reserve for unfunded commitments 31 39 Net unrealized loss on securities 107 - Other 109 140 Gross deferred tax assets 6,511 5,205 Deferred tax liabilities: Prepaid expenses (45 ) (64 ) FHLB restructure fees (29 ) (52 ) Net unrealized holding gain on securities - (169 ) Gross deferred tax liabilities (74 ) (285 ) Net deferred tax asset $ 6,437 $ 4,920 |
EMPLOYEE BENEFITS & SHARE-BAS_2
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [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 | December 31, 2018 December 31, 2017 Allocated 71,430 47,620 Committed to be allocated 23,810 23,810 Unallocated 261,912 285,722 Total 357,152 357,152 |
Schedule of fair value of options granted | 2018 2017 Vesting period (years) 5 5 Expiration date (years) 10 10 Expected volatility 21.23 % 21.53 % Expected life (years) 7.5 7.5 Expected dividend yield 0.00 % 0.00 % Risk free interest rate 2.97 % 2.25 % Fair value per option $ 8.71 $ 7.05 | |
Schedule of stock option grants | Stock Option Weighted Weighted Average 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 | Stock Option Weighted Weighted Average Aggregate Outstanding at January 1, 2018 396,443 $ 17.61 Granted 12,170 27.20 Forfeited (9,740 ) 17.40 Exercised (2,435 ) 17.40 Outstanding at December 31, 2018 396,438 $ 17.89 8.00 $ 1,503,000 Outstanding and expected to vest 396,438 $ 17.89 8.00 $ 1,503,000 Vested and Exercisable 151,272 $ 17.50 7.90 $ 632,000 Unrecognized compensation cost $ 1,233,000 Weighted average remaining 3.01 |
Schedule of activity in unvested restricted stock awards under the Equity Plan | Number of Shares Weighted Average Unvested restricted stock awards at Decemer 31, 2018 98,073 $ 18.13 Granted - Forfeited - Vested - 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 | Number of Shares Weighted Average Unvested restricted stock awards at January 1, 2018 127,852 $ 17.59 Granted 4,862 27.20 Forfeited (3,896 ) 17.40 Vested (30,745 ) 17.59 Unvested restricted stock awards at Decemer 31, 2018 98,073 $ 18.13 Unrecognized compensation cost $ 1,724,000 Weighted average remaining recognition period (years) 3.01 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Schedule of earning per share | Three months ended March 31, (Dollars in thousands) 2019 2018 Net income attributable to common shareholders $ 2,218 $ 2,022 Average number of common shares outstanding 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 | (Dollars in thousands) 2018 2017 Net income attributable to common shareholders $ 9,325 $ 7,915 Average number of common shares outstanding 9,659,357 9,652,448 Less: average unallocated ESOP shares (283,337 ) (298,680 ) average unvested restricted stock (106,033 ) (136,986 ) average treasury stock acquired (29,901 ) (17,508 ) Average number of common shares outstanding 9,240,086 9,199,274 Effect of dilutive unvested restricted stock and stock option awards 66,230 613 Average number of common shares outstanding 9,306,316 9,199,887 Earnings per common share: Basic $ 1.01 $ 0.86 Diluted $ 1.00 $ 0.86 |
REGULATORY MATTERS (Table)
REGULATORY MATTERS (Table) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Banking and Thrift [Abstract] | ||
Schedule of actual capital amounts and ratios | To Be Well Capitalized Under Actual For Capital Prompt Corrective Capital Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total Capital (to Risk Weighted Assets) $ 131,884 14.45 % $ 73,014 > 8.0 % $ 91,267 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 120,471 13.20 54,760 > 6.0 73,014 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 120,471 13.20 41,070 > 4.5 59,324 > 6.5 Tier 1 Capital (to Average Assets) 120,471 12.20 39,512 > 4.0 49,391 > 5.0 December 31, 2018 Total Capital (to Risk Weighted Assets) $ 128,939 14.55 % $ 70,891 > 8.0 % $ 88,614 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 117,855 13.30 53,168 > 6.0 70,891 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 117,855 13.30 39,876 > 4.5 57,599 > 6.5 Tier 1 Capital (to Average Assets) 117,855 12.69 37,157 > 4.0 46,446 > 5.0 | To Be Well Capitalized Under Actual For Capital Prompt Corrective Capital Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total Capital (to Risk Weighted Assets) $ 128,939 14.55 % $ 70,891 > 8.0 % $ 88,614 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 117,855 13.30 53,168 > 6.0 70,891 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 117,855 13.30 39,876 > 4.5 57,599 > 6.5 Tier 1 Capital (to Average Assets) 117,855 12.69 37,157 > 4.0 46,446 > 5.0 December 31, 2017 Total Capital (to Risk Weighted Assets) $ 116,869 14.96 % $ 62,514 > 8.0 % $ 78,142 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 107,112 13.71 46,885 > 6.0 62,514 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 107,112 13.71 35,164 > 4.5 50,792 > 6.5 Tier 1 Capital (to Average Assets) 107,112 11.80 36,299 > 4.0 45,374 > 5.0 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Of Financial Instrument [Abstract] | ||
Schedule of carrying amounts and estimated fair values of financial instruments, held or issued for purposes other than trading | 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 | Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total December 31, 2018 Financial assets: Cash and cash equivalents $ 28,613 $ 28,613 $ - $ - $ 28,613 Available-for-sale securities 51,403 - 51,403 - 51,403 Federal Home Loan Bank of Boston stock 2,650 2,650 - - 2,650 Loans, net 835,528 - - 827,090 827,090 Accrued interest receivable 2,638 - 2,638 - 2,638 Financial liabilities: Deposits 768,096 - - 768,010 768,010 Borrowings 68,022 - 67,846 - 67,846 December 31, 2017 Financial assets: Cash and cash equivalents $ 47,689 $ 47,689 $ - $ - $ 47,689 Available-for-sale securities 61,429 - 61,429 - 61,429 Federal Home Loan Bank of Boston stock 1,854 1,854 - - 1,854 Loans, net 742,138 - - 745,637 745,637 Accrued interest receivable 2,345 - 2,345 - 2,345 Financial liabilities: Deposits 750,057 - - 749,898 749,898 Borrowings 26,841 - 26,655 - 26,655 |
COMMITMENTS & CONTINGENCIES (Ta
COMMITMENTS & CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum rental due in future periods of existing agreements | (In thousands) 2019 $ 285 2020 244 2021 252 2022 252 2023 252 Years thereafter 1,908 Total minimum lease payments $ 3,193 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Schedule of financial instrument with off-balance sheet credit risk | (In thousands) 2018 2017 Commitments to originate loans $ 42,625 $ 18,641 Letters of credit 1,546 2,004 Unadvanced portions of loans 196,104 166,314 $ 240,275 $ 186,959 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Schedule of 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 $ 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 $ 20,255 $ - $ 20,255 $ - Asset-backed securities 6,371 - 6,371 - Government mortgage-backed securities 24,777 - 24,777 - Totals $ 51,403 $ - $ 51,403 $ - | 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 December 31, 2018 State and municipal $ 20,255 $ - $ 20,255 $ - Asset-backed securities 6,371 - 6,371 - Mortgage-backed securities 24,777 - 24,777 - Totals $ 51,403 $ - $ 51,403 $ - December 31, 2017 State and municipal $ 21,454 $ - $ 21,454 $ - Asset-backed securities 7,517 - 7,517 - Government mortgage-backed securities 32,458 - 32,458 - Totals $ 61,429 $ - $ 61,429 $ - |
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 - | 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 December 31, 2018 Impaired loans $ 659 $ - $ - $ 659 Other real estate owned 1,676 - 1,676 - December 31, 2017 Impaired loans $ 3,670 $ - $ - $ 3,670 |
Schedule of summary of the 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 | (In thousands) Fair Value Valuation Technique Unobservable Input December 31, 2018 Impaired loans $ 659 Real estate appraisals Discount for dated appraisals December 31, 2017 Impaired loans $ 3,670 Real estate appraisals Discount for dated appraisals |
DISCLOSURES ABOUT FAIR VALUES_2
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Of Financial Instrument [Abstract] | ||
Schedule of carrying amounts and estimated fair values of financial instruments, held or issued for purposes other than trading | 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 | Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total December 31, 2018 Financial assets: Cash and cash equivalents $ 28,613 $ 28,613 $ - $ - $ 28,613 Available-for-sale securities 51,403 - 51,403 - 51,403 Federal Home Loan Bank of Boston stock 2,650 2,650 - - 2,650 Loans, net 835,528 - - 827,090 827,090 Accrued interest receivable 2,638 - 2,638 - 2,638 Financial liabilities: Deposits 768,096 - - 768,010 768,010 Borrowings 68,022 - 67,846 - 67,846 December 31, 2017 Financial assets: Cash and cash equivalents $ 47,689 $ 47,689 $ - $ - $ 47,689 Available-for-sale securities 61,429 - 61,429 - 61,429 Federal Home Loan Bank of Boston stock 1,854 1,854 - - 1,854 Loans, net 742,138 - - 745,637 745,637 Accrued interest receivable 2,345 - 2,345 - 2,345 Financial liabilities: Deposits 750,057 - - 749,898 749,898 Borrowings 26,841 - 26,655 - 26,655 |
CONDENSED FINANCIAL STATEMENT_2
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent only statement of balance sheet | Provident Bancorp, Inc. - Parent Only Balance Sheet (In thousands) 2018 2017 Assets Cash and due from banks $ 5,249 $ 5,224 Investment in common stock of The Provident Bank 117,615 107,629 Other assets 2,755 2,946 Total assets $ 125,619 $ 115,799 Liabilities and Shareholders' Equity Accrued expenses $ 35 $ 22 Shareholders' equity 125,584 115,777 Total liabilities and shareholders' equity $ 125,619 $ 115,799 |
Schedule of parent only income statement | Provident Bancorp, Inc. - Parent Only Income Statement Years Ended December 31, (In thousands) 2018 2017 Total income $ 140 $ 120 Operating expenses 90 88 Income before income taxes and equity in undistributed net income of The Provident Bank 50 32 Applicable income tax provision 14 13 Income before equity in income of subsidiaries 36 19 Equity in undistributed net income of The Provident Bank 9,289 7,896 Net income $ 9,325 $ 7,915 |
Schedule of parent only statement of cash flows | Provident Bancorp, Inc. - Parent Only Statement of Cash Flows Twelve Months Ended December 31, (In thousands) 2018 2017 Cash flows from operating activities: Net income $ 9,325 $ 7,915 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (9,289 ) (7,896 ) Decrease in other assets 191 191 Increase (decrease) in other liabilities 13 (51 ) Net cash provided by operating activities 240 159 Cash flows from financing activities: Purchase of treasury stock (215 ) (594 ) Net cash used in financing activities (215 ) (594 ) Net increase (decrease) in cash and cash equivalents 25 (435 ) Cash and cash equivalents at beginning of year 5,224 5,659 Cash and cash equivalents at end of year $ 5,249 $ 5,224 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands) 2018 2017 2018 2017 2018 2017 2018 2017 Interest and dividend income $ 9,753 $ 8,112 $ 10,377 $ 8,816 $ 10,833 $ 9,239 $ 11,377 $ 9,615 Interest expense 1,034 781 1,213 879 1,429 1,005 1,537 1,062 Net interest and dividend income 8,719 7,331 9,164 7,937 9,404 8,234 9,840 8,553 Provision for loan losses 656 563 638 892 1,421 1,012 614 462 Gain on sale of securities, net - 482 - 58 - 1,851 - 3,521 Other income 1,013 1,020 1,118 1,012 1,059 1,046 988 966 Total noninterest income 1,013 1,502 1,118 1,070 1,059 2,897 988 4,487 Total noninterest expense 6,376 5,621 6,411 5,875 6,223 5,914 6,404 6,339 Income tax expense 678 847 843 639 741 1,434 975 4,498 Net income $ 2,022 $ 1,802 $ 2,390 $ 1,601 $ 2,078 $ 2,771 $ 2,835 $ 1,741 Income per share: Basic $ 0.22 $ 0.16 $ 0.26 $ 0.15 $ 0.22 $ 0.19 $ 0.31 $ 0.19 Diluted $ 0.22 $ 0.16 $ 0.26 $ 0.15 $ 0.22 $ 0.19 $ 0.30 $ 0.19 Weighted Average Shares: Basic 9,219,865 9,192,568 9,233,745 9,193,836 9,247,367 9,201,634 9,258,858 9,208,854 Diluted 9,225,003 9,192,568 9,302,425 9,198,286 9,355,410 9,213,056 9,339,431 9,257,702 |
BASIS OF PRESENTATION (Detail T
BASIS OF PRESENTATION (Detail Textuals) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Par value of stock bought from and sold to the federal home loan bank (in dollars per share) | $ 100 |
Mutual holding company (MHC) | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Percentage of ownership of mutual holding company | 52.30% |
INVESTMENTS SECURITIES AVAILA_3
INVESTMENTS SECURITIES AVAILABLE-FOR-SALE (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost Basis | $ 49,922 | $ 51,765 | $ 60,671 |
Gross Unrealized Gains | 239 | 410 | 1,092 |
Gross Unrealized Losses | 499 | 772 | 334 |
Fair Value | 49,662 | 51,403 | 61,429 |
State and municipal | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost Basis | 11,453 | 20,118 | 20,726 |
Gross Unrealized Gains | 144 | 272 | 745 |
Gross Unrealized Losses | 62 | 135 | 17 |
Fair Value | 11,535 | 20,255 | 21,454 |
Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost Basis | 6,116 | 6,512 | 7,524 |
Gross Unrealized Gains | 0 | 0 | 30 |
Gross Unrealized Losses | 68 | 141 | 37 |
Fair Value | 6,048 | 6,371 | 7,517 |
Government mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost Basis | 32,353 | 25,135 | 32,421 |
Gross Unrealized Gains | 95 | 138 | 317 |
Gross Unrealized Losses | 369 | 496 | 280 |
Fair Value | $ 32,079 | $ 24,777 | $ 32,458 |
INVESTMENTS SECURITIES AVAILA_4
INVESTMENTS SECURITIES AVAILABLE-FOR-SALE (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-Sale, Amortized Cost | |||
Due in one year or less | $ 95 | $ 95 | |
Due after one year through five years | 604 | 604 | |
Due after five years through ten years | 2,028 | 2,120 | |
Due after ten years | 8,726 | 17,299 | |
Amortized Cost | 49,922 | 51,765 | $ 60,671 |
Available-for-Sale, Fair Value | |||
Due in one year or less | 95 | 95 | |
Due after one year through five years | 606 | 608 | |
Due after five years through ten years | 2,067 | 2,169 | |
Due after ten years | 8,767 | 17,383 | |
Fair Value | 49,662 | 51,403 | 61,429 |
Government mortgage-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Amortized Cost | 32,353 | 25,135 | 32,421 |
Available-for-Sale, Fair Value | |||
Fair Value | 32,079 | 24,777 | 32,458 |
Asset-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Amortized Cost | 6,116 | 6,512 | 7,524 |
Available-for-Sale, Fair Value | |||
Fair Value | $ 6,048 | $ 6,371 | $ 7,517 |
INVESTMENTS SECURITIES AVAILA_5
INVESTMENTS SECURITIES AVAILABLE-FOR-SALE (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | |||
Fair Value, Less than 12 Months | $ 5,233 | $ 12,834 | $ 6,976 |
Unrealized Losses, Less than 12 Months | 86 | 245 | 33 |
Fair Value, 12 Months or Longer | 22,014 | 17,287 | 15,530 |
Unrealized Losses, 12 Months or Longer | 413 | 527 | 301 |
Fair Value, Total | 27,247 | 30,121 | 22,506 |
Unrealized Losses, Total | 499 | 772 | 334 |
State and municipal | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair Value, Less than 12 Months | 373 | 6,137 | 0 |
Unrealized Losses, Less than 12 Months | 5 | 115 | 0 |
Fair Value, 12 Months or Longer | 3,681 | 597 | 611 |
Unrealized Losses, 12 Months or Longer | 57 | 20 | 17 |
Fair Value, Total | 4,054 | 6,734 | 611 |
Unrealized Losses, Total | 62 | 135 | 17 |
Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair Value, Less than 12 Months | 0 | 3,833 | 1,745 |
Unrealized Losses, Less than 12 Months | 0 | 98 | 13 |
Fair Value, 12 Months or Longer | 6,048 | 2,538 | 1,335 |
Unrealized Losses, 12 Months or Longer | 68 | 43 | 24 |
Fair Value, Total | 6,048 | 6,371 | 3,080 |
Unrealized Losses, Total | 68 | 141 | 37 |
Government mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair Value, Less than 12 Months | 4,860 | 2,864 | 5,231 |
Unrealized Losses, Less than 12 Months | 81 | 32 | 20 |
Fair Value, 12 Months or Longer | 12,285 | 14,152 | 13,584 |
Unrealized Losses, 12 Months or Longer | 288 | 464 | 260 |
Fair Value, Total | 17,145 | 17,016 | 18,815 |
Unrealized Losses, Total | $ 369 | $ 496 | $ 280 |
INVESTMENTS SECURITIES AVAILA_6
INVESTMENTS SECURITIES AVAILABLE-FOR-SALE (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains on sales and calls | $ 216,000 | $ 6,400,000 | |
Gross losses realized | 103,000 | 505,000 | |
Securities pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank | $ 38,100,000 | $ 39,800,000 | $ 31,100,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Gross loans, Amount | $ 872,634 | $ 848,431 | $ 752,740 | ||
Allowance for loan losses | (11,857) | (11,680) | $ (10,236) | (9,757) | $ (8,590) |
Deferred loan fees, net | (1,508) | (1,223) | (845) | ||
Net loans | 859,269 | 835,528 | 742,138 | ||
Commercial real estate | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Gross loans, Amount | 373,435 | 364,867 | 371,510 | ||
Allowance for loan losses | (4,247) | (4,152) | (4,607) | (4,483) | (4,503) |
Commercial | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Gross loans, Amount | 382,550 | 361,782 | 240,223 | ||
Allowance for loan losses | (5,746) | (5,742) | (3,668) | (3,280) | (2,513) |
Residential real estate | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Gross loans, Amount | 54,898 | 57,361 | 67,724 | ||
Allowance for loan losses | (240) | (251) | (292) | (300) | (328) |
Construction and land development | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Gross loans, Amount | 42,441 | 44,606 | 55,828 | ||
Allowance for loan losses | (734) | (738) | (939) | (965) | (882) |
Consumer | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Gross loans, Amount | 19,310 | 19,815 | 17,455 | ||
Allowance for loan losses | $ (812) | $ (710) | $ (678) | $ (649) | $ (279) |
LOANS (Details 1)
LOANS (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||
Beginning balance | $ 11,680 | $ 10,236 | $ 9,757 | $ 8,590 | $ 9,757 | $ 8,590 | ||||||||
Charge-offs | (1,314) | (186) | (1,559) | (1,819) | ||||||||||
Recoveries | 29 | 9 | 153 | 57 | ||||||||||
Provision (credit) | 1,462 | $ 614 | $ 1,421 | 638 | 656 | $ 462 | $ 1,012 | $ 892 | 563 | 3,329 | 2,929 | |||
Ending balance | 11,857 | 11,680 | 10,236 | 9,757 | 11,680 | 9,757 | ||||||||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | $ 886 | $ 1,101 | $ 0 | |||||||||||
Ending balance: Collectively evaluated for impairment | 10,971 | 10,579 | 9,757 | |||||||||||
Total allowance for loan losses ending balance | 11,680 | 11,680 | 10,236 | 9,757 | 9,757 | 8,590 | 9,757 | 8,590 | 11,857 | 11,680 | 9,757 | |||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 9,549 | 7,532 | 12,229 | |||||||||||
Ending balance: Collectively evaluated for impairment | 863,085 | 840,899 | 740,511 | |||||||||||
Loans and Leases Receivable, Gross | 872,634 | 848,431 | 752,740 | |||||||||||
Commercial Real Estate | ||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||
Beginning balance | 4,152 | 4,607 | 4,483 | 4,503 | 4,483 | 4,503 | ||||||||
Charge-offs | 0 | 0 | (670) | (1,522) | ||||||||||
Recoveries | 0 | 0 | 0 | 0 | ||||||||||
Provision (credit) | 95 | 124 | 339 | 1,502 | ||||||||||
Ending balance | 4,247 | 4,152 | 4,607 | 4,483 | 4,152 | 4,483 | ||||||||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 0 | 62 | 0 | |||||||||||
Ending balance: Collectively evaluated for impairment | 4,247 | 4,090 | 4,483 | |||||||||||
Total allowance for loan losses ending balance | 4,152 | 4,152 | 4,607 | 4,483 | 4,483 | 4,503 | 4,483 | 4,503 | 4,247 | 4,152 | 4,483 | |||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 1,838 | 1,853 | 8,623 | |||||||||||
Ending balance: Collectively evaluated for impairment | 371,597 | 363,014 | 362,887 | |||||||||||
Loans and Leases Receivable, Gross | 373,435 | 364,867 | 371,510 | |||||||||||
Commercial | ||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||
Beginning balance | 5,742 | 3,668 | 3,280 | 2,513 | 3,280 | 2,513 | ||||||||
Charge-offs | (1,033) | (20) | (190) | (107) | ||||||||||
Recoveries | 10 | 1 | 87 | 45 | ||||||||||
Provision (credit) | 1,027 | 407 | 2,565 | 829 | ||||||||||
Ending balance | 5,746 | 5,742 | 3,668 | 3,280 | 5,742 | 3,280 | ||||||||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 886 | 1,039 | 0 | |||||||||||
Ending balance: Collectively evaluated for impairment | 4,860 | 4,703 | 3,280 | |||||||||||
Total allowance for loan losses ending balance | 5,742 | 5,742 | 3,668 | 3,280 | 3,280 | 2,513 | 3,280 | 2,513 | 5,746 | 5,742 | 3,280 | |||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 7,328 | 5,291 | 3,202 | |||||||||||
Ending balance: Collectively evaluated for impairment | 375,222 | 356,491 | 237,021 | |||||||||||
Loans and Leases Receivable, Gross | 382,550 | 361,782 | 240,223 | |||||||||||
Residential Real Estate | ||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||
Beginning balance | 251 | 292 | 300 | 328 | 300 | 328 | ||||||||
Charge-offs | 0 | 0 | 0 | 0 | ||||||||||
Recoveries | 0 | 0 | 2 | 0 | ||||||||||
Provision (credit) | (11) | (8) | (51) | (28) | ||||||||||
Ending balance | 240 | 251 | 292 | 300 | 251 | 300 | ||||||||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | |||||||||||
Ending balance: Collectively evaluated for impairment | 240 | 251 | 300 | |||||||||||
Total allowance for loan losses ending balance | 251 | 251 | 292 | 300 | 300 | 328 | 300 | 328 | 240 | 251 | 300 | |||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 383 | 388 | 404 | |||||||||||
Ending balance: Collectively evaluated for impairment | 54,515 | 56,973 | 67,320 | |||||||||||
Loans and Leases Receivable, Gross | 54,898 | 57,361 | 67,724 | |||||||||||
Construction and Land Development | ||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||
Beginning balance | 738 | 939 | 965 | 882 | 965 | 882 | ||||||||
Charge-offs | 0 | 0 | 0 | 0 | ||||||||||
Recoveries | 0 | 0 | 0 | 0 | ||||||||||
Provision (credit) | (4) | (26) | (227) | 83 | ||||||||||
Ending balance | 734 | 738 | 939 | 965 | 738 | 965 | ||||||||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | |||||||||||
Ending balance: Collectively evaluated for impairment | 734 | 738 | 965 | |||||||||||
Total allowance for loan losses ending balance | 738 | 738 | 939 | 965 | 965 | 882 | 965 | 882 | 734 | 738 | 965 | |||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | |||||||||||
Ending balance: Collectively evaluated for impairment | 42,441 | 44,606 | 55,828 | |||||||||||
Loans and Leases Receivable, Gross | 42,441 | 44,606 | 55,828 | |||||||||||
Consumer | ||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||
Beginning balance | 710 | 678 | 649 | 279 | 649 | 279 | ||||||||
Charge-offs | (281) | (166) | (699) | (190) | ||||||||||
Recoveries | 19 | 8 | 64 | 12 | ||||||||||
Provision (credit) | 364 | 187 | 696 | 548 | ||||||||||
Ending balance | 812 | 710 | 678 | 649 | 710 | 649 | ||||||||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | |||||||||||
Ending balance: Collectively evaluated for impairment | 812 | 710 | 649 | |||||||||||
Total allowance for loan losses ending balance | 710 | 710 | 678 | 649 | 649 | 279 | 649 | 279 | 812 | 710 | 649 | |||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | |||||||||||
Ending balance: Collectively evaluated for impairment | 19,310 | 19,815 | 17,455 | |||||||||||
Loans and Leases Receivable, Gross | 19,310 | 19,815 | 17,455 | |||||||||||
Unallocated | ||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||
Beginning balance | 87 | 52 | 80 | 85 | 80 | 85 | ||||||||
Charge-offs | 0 | 0 | 0 | 0 | ||||||||||
Recoveries | 0 | 0 | 0 | 0 | ||||||||||
Provision (credit) | (9) | (28) | 7 | (5) | ||||||||||
Ending balance | 78 | 87 | 52 | 80 | 87 | 80 | ||||||||
Loans: | ||||||||||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | |||||||||||
Ending balance: Collectively evaluated for impairment | 78 | 87 | 80 | |||||||||||
Total allowance for loan losses ending balance | $ 87 | $ 87 | $ 52 | $ 80 | $ 80 | $ 85 | $ 80 | $ 85 | $ 78 | $ 87 | $ 80 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance beginning January 1 | $ 22,273 | $ 7,739 |
Effect of changes in composition of related parties | (339) | (85) |
Advances | 11 | 18,809 |
Principal payments | 9,988 | 4,190 |
Ending balance, December 31 | $ 11,957 | $ 22,273 |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 3,354 | $ 5,209 | $ 4,807 |
Total Current | 869,280 | 843,222 | 747,933 |
Total Loans | 872,634 | 848,431 | 752,740 |
90 Days or More Past Due and Accruing | 0 | 0 | 0 |
Nonaccrual Loans | 8,375 | 6,261 | 9,033 |
30 - 59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 388 | 1,165 | 774 |
60 - 89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 443 | 269 | 3,892 |
90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,523 | 3,775 | 141 |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 519 | 1,261 | 3,669 |
Total Current | 372,916 | 363,606 | 367,841 |
Total Loans | 373,435 | 364,867 | 371,510 |
90 Days or More Past Due and Accruing | 0 | 0 | 0 |
Nonaccrual Loans | 519 | 519 | 7,102 |
Commercial real estate | 30 - 59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 742 | 0 |
Commercial real estate | 60 - 89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 3,669 |
Commercial real estate | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 519 | 519 | 0 |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,992 | 3,207 | 12 |
Total Current | 380,558 | 358,575 | 240,211 |
Total Loans | 382,550 | 361,782 | 240,223 |
90 Days or More Past Due and Accruing | 0 | 0 | |
Nonaccrual Loans | 6,919 | 4,830 | 1,505 |
Commercial | 30 - 59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 131 | 40 | 12 |
Commercial | 60 - 89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Commercial | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,861 | 3,167 | 0 |
Residential real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 614 | 574 | 958 |
Total Current | 54,284 | 56,787 | 66,766 |
Total Loans | 54,898 | 57,361 | 67,724 |
90 Days or More Past Due and Accruing | 0 | 0 | 0 |
Nonaccrual Loans | 822 | 850 | 364 |
Residential real estate | 30 - 59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 227 | 321 | 699 |
Residential real estate | 60 - 89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 358 | 223 | 178 |
Residential real estate | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 29 | 30 | 81 |
Construction and land development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Total Current | 42,441 | 44,606 | 55,828 |
Total Loans | 42,441 | 44,606 | 55,828 |
90 Days or More Past Due and Accruing | 0 | 0 | 0 |
Nonaccrual Loans | 0 | 0 | 0 |
Construction and land development | 30 - 59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Construction and land development | 60 - 89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 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 | 0 |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 229 | 167 | 168 |
Total Current | 19,081 | 19,648 | 17,287 |
Total Loans | 19,310 | 19,815 | 17,455 |
90 Days or More Past Due and Accruing | 0 | 0 | 0 |
Nonaccrual Loans | 115 | 62 | 62 |
Consumer | 30 - 59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 30 | 62 | 63 |
Consumer | 60 - 89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 85 | 46 | 45 |
Consumer | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 114 | $ 59 | $ 60 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
With no related allowance recorded: | |||
Recorded Investment | $ 4,187 | $ 5,772 | $ 12,229 |
Unpaid Principal Balance | 4,207 | 5,832 | 13,745 |
Average Recorded Investment | 4,252 | 10,904 | 7,028 |
Interest Income Recognized | 32 | 127 | 213 |
With an allowance recorded: | |||
Recorded Investment | 5,362 | 1,760 | 0 |
Unpaid Principal Balance | 5,385 | 1,786 | 0 |
Related Allowance | 886 | 1,101 | 0 |
Average Recorded Investment | 5,369 | 2,214 | 0 |
Interest Income Recognized | 0 | 52 | 0 |
Total | |||
Recorded Investment | 9,549 | 7,532 | 12,229 |
Unpaid Principal Balance | 9,592 | 7,618 | 13,745 |
Related Allowance | 886 | 1,101 | 0 |
Average Recorded Investment | 9,621 | 13,118 | 7,028 |
Interest Income Recognized | 32 | 179 | 213 |
Commercial real estate | |||
With no related allowance recorded: | |||
Recorded Investment | 1,838 | 1,334 | 8,623 |
Unpaid Principal Balance | 1,838 | 1,334 | 10,139 |
Average Recorded Investment | 1,846 | 5,614 | 4,562 |
Interest Income Recognized | 21 | 69 | 70 |
With an allowance recorded: | |||
Recorded Investment | 0 | 519 | 0 |
Unpaid Principal Balance | 0 | 519 | 0 |
Related Allowance | 0 | 62 | 0 |
Average Recorded Investment | 0 | 519 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Total | |||
Recorded Investment | 1,838 | 1,853 | 8,623 |
Unpaid Principal Balance | 1,838 | 1,853 | 10,139 |
Related Allowance | 0 | 62 | 0 |
Average Recorded Investment | 1,846 | 6,133 | 4,562 |
Interest Income Recognized | 21 | 69 | 70 |
Commercial | |||
With no related allowance recorded: | |||
Recorded Investment | 1,966 | 4,050 | 3,202 |
Unpaid Principal Balance | 1,986 | 4,110 | 3,202 |
Average Recorded Investment | 2,020 | 4,894 | 2,054 |
Interest Income Recognized | 6 | 38 | 123 |
With an allowance recorded: | |||
Recorded Investment | 5,362 | 1,241 | 0 |
Unpaid Principal Balance | 5,385 | 1,267 | 0 |
Related Allowance | 886 | 1,039 | 0 |
Average Recorded Investment | 5,369 | 1,695 | 0 |
Interest Income Recognized | 0 | 52 | 0 |
Total | |||
Recorded Investment | 7,328 | 5,291 | 3,202 |
Unpaid Principal Balance | 7,371 | 5,377 | 3,202 |
Related Allowance | 886 | 1,039 | 0 |
Average Recorded Investment | 7,389 | 6,589 | 2,054 |
Interest Income Recognized | 6 | 90 | 123 |
Residential real estate | |||
With no related allowance recorded: | |||
Recorded Investment | 383 | 388 | 404 |
Unpaid Principal Balance | 383 | 388 | 404 |
Average Recorded Investment | 386 | 396 | 412 |
Interest Income Recognized | 5 | 20 | 20 |
With an allowance recorded: | |||
Recorded Investment | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Total | |||
Recorded Investment | 383 | 388 | 404 |
Unpaid Principal Balance | 383 | 388 | 404 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 386 | 396 | 412 |
Interest Income Recognized | 5 | 20 | 20 |
Construction and land development | |||
With no related allowance recorded: | |||
Recorded Investment | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
With an allowance recorded: | |||
Recorded Investment | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Total | |||
Recorded Investment | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Consumer | |||
With no related allowance recorded: | |||
Recorded Investment | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
With an allowance recorded: | |||
Recorded Investment | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Total | |||
Recorded Investment | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 |
LOANS (Details 5)
LOANS (Details 5) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)Contract | Dec. 31, 2017USD ($)Contract | |
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | Contract | 1 | 1 |
Pre- Modification Outstanding Recorded Investment | $ 1,963 | $ 249 |
Post-Modification Outstanding Recorded Investment | $ 1,963 | $ 249 |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | Contract | 1 | 1 |
Pre- Modification Outstanding Recorded Investment | $ 1,963 | $ 249 |
Post-Modification Outstanding Recorded Investment | $ 1,963 | $ 249 |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 872,634 | $ 848,431 | $ 752,740 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 755,011 | 740,100 | 635,641 |
Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 33,361 | 17,870 | 16,007 |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 10,615 | 12,939 | 16,592 |
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 | 84,500 |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 373,435 | 364,867 | 371,510 |
Commercial Real Estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 349,204 | 356,415 | 355,623 |
Commercial Real Estate | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 22,321 | 6,531 | 6,852 |
Commercial Real Estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,910 | 1,921 | 9,035 |
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 | 0 |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 382,550 | 361,782 | 240,223 |
Commercial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 363,366 | 339,079 | 224,190 |
Commercial | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 11,040 | 11,339 | 9,155 |
Commercial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 8,144 | 10,447 | 6,878 |
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 | 0 |
Residential Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 54,898 | 57,361 | 67,724 |
Residential Real Estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Residential Real Estate | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Residential Real Estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 561 | 571 | 679 |
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 | 67,045 |
Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 42,441 | 44,606 | 55,828 |
Construction and Land Development | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 42,441 | 44,606 | 55,828 |
Construction and Land Development | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Construction and Land Development | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 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 | 0 |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 19,310 | 19,815 | 17,455 |
Consumer | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Consumer | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Consumer | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 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 | $ 17,455 |
LOANS (Detail Textuals)
LOANS (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Aggregate principal balance pledged to secure possible borrowings | $ 423,200,000 | $ 393,800,000 | $ 357,100,000 |
Troubled debt restructuring, total | $ 2,000,000 | 249,000 | |
Re-amortization term of commercial loan | 12 months | 3 years | |
Impairment analysis performed and specific reserve | $ 100,000 | ||
Unpaid principal balance | 9,592,000 | $ 7,618,000 | 13,745,000 |
Servicing portfolio | 294,000 | ||
Mortgage and other loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balance | $ 18,600,000 | $ 18,800,000 | $ 15,600,000 |
PREMISES AND EQUIPMENT - Summar
PREMISES AND EQUIPMENT - Summary of premises and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 26,167 | $ 20,555 | |
Accumulated depreciation and amortization | (10,081) | (9,574) | |
Premises and equipment, net | $ 21,467 | 16,086 | 10,981 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 2,424 | 2,424 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 9,241 | 9,241 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 4,520 | 4,649 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 4,234 | 4,241 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 5,748 | $ 0 |
PREMISES AND EQUIPMENT (Detail
PREMISES AND EQUIPMENT (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 404 | $ 185 | $ 721 | $ 811 |
DEPOSITS - Summary of deposit b
DEPOSITS - Summary of deposit balances by type (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | |||
NOW and demand | $ 312,286 | $ 332,064 | $ 309,514 |
Regular savings | 115,614 | 109,322 | 112,610 |
Money market deposits | 227,256 | 229,314 | 225,735 |
Total non-certificate accounts | 655,156 | 670,700 | 647,859 |
Certificate accounts of $250,000 or more | 15,583 | 14,164 | 5,061 |
Certificate accounts less than $250,000 | 104,538 | 83,232 | 97,137 |
Total certificate accounts | 120,121 | 97,396 | 102,198 |
Total deposits | $ 775,277 | $ 768,096 | $ 750,057 |
DEPOSITS - Scheduled maturities
DEPOSITS - Scheduled maturities for time deposits (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | |||
2018 | $ 0 | $ 81,791 | |
2019 | $ 77,622 | 55,061 | 16,105 |
2020 | 32,457 | 32,089 | 3,052 |
2021 | 8,740 | 8,938 | 410 |
2022 | 840 | 794 | 840 |
2023 | 462 | 514 | 0 |
Total | $ 120,121 | $ 97,396 | $ 102,198 |
DEPOSITS (Detail Textuals)
DEPOSITS (Detail Textuals) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | |||
Brokered certificates of deposit | $ 69.1 | $ 55.8 | $ 62.3 |
Deposits from related parties held | $ 7.4 | $ 16 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Advances from Federal Home Loan Banks [Abstract] | |||
2019 | $ 54,979 | ||
2020 | 11,463 | ||
2021 | 5,000 | ||
2023 | 8,500 | ||
Total | $ 79,942 | $ 68,022 | $ 26,841 |
BORROWINGS (Details 1)
BORROWINGS (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Advances from Federal Home Loan Banks [Abstract] | |||
2018 | $ 0 | $ 12,000 | |
2019 | 43,071 | 4,936 | |
2020 | 11,451 | 6,405 | |
2021 | 5,000 | 0 | |
2023 | 8,500 | 0 | |
Thereafter | 0 | 3,500 | |
Total | $ 79,942 | $ 68,022 | $ 26,841 |
BORROWINGS (Detail Textuals)
BORROWINGS (Detail Textuals) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2017 | Aug. 31, 2015 |
Federal Home Loan Bank, Advances [Line Items] | |||||
Aggregate borrowings from FHLB | $ 79,942,000 | $ 68,022,000 | $ 26,841,000 | ||
Federal reserve bank advances | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Overnight borrowings | $ 8,100,000 | ||||
Interest rate on overnight borrowings | 3.00% | ||||
Federal Home Loan Bank Advances | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Aggregate borrowings from FHLB | $ 59,922 | $ 26,841 | |||
Modified FHLB borrowings | $ 5,000,000 | $ 3,500,000 | |||
Prepayment penalty | $ 87,000 | $ 233,000 | |||
Federal Home Loan Bank Advances | Minimum | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Interest rates on FHLB advances ranged from | 1.53% | ||||
Federal Home Loan Bank Advances | Maximum | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Interest rates on FHLB advances ranged from | 3.01% | ||||
Federal Home Loan Bank Advances | Weighted average | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Interest rates on FHLB advances ranged from | 2.52% |
INCOME TAXES - Components of in
INCOME TAXES - Components of income tax expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense (benefit): | |||||||||||
Federal | $ 3,214 | $ 5,044 | |||||||||
State | 1,278 | 1,079 | |||||||||
Net operating loss carryforward | (14) | (14) | |||||||||
Current tax expense (benefit), total | 4,478 | 6,109 | |||||||||
Deferred tax expense (benefit): | |||||||||||
Federal | (926) | 1,523 | |||||||||
State | (315) | (214) | |||||||||
Deferred tax expense (benefit), total | $ (185) | (1,241) | 1,309 | ||||||||
Income tax expense | $ 778 | $ 975 | $ 741 | $ 843 | $ 678 | $ 4,498 | $ 1,434 | $ 639 | $ 847 | $ 3,237 | $ 7,418 |
INCOME TAXES - Differences betw
INCOME TAXES - Differences between statutory federal income tax rate and effective tax rates (Details 1) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax at statutory rate | 21.00% | 34.00% |
Increase (decrease) in tax resulting from: | ||
State tax, net of federal tax benefit | 5.70% | 4.60% |
Tax exempt income and dividends received deduction | (1.00%) | (3.30%) |
Change in enacted federal tax rate | 0.00% | 13.40% |
Other | 0.10% | (0.30%) |
Effective tax rate | 25.80% | 48.40% |
INCOME TAXES - Gross deferred t
INCOME TAXES - Gross deferred tax assets and gross deferred tax liabilities (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | |||
Allowance for loan losses | $ 3,251 | $ 2,743 | |
Depreciation | 160 | 41 | |
Net operating loss carryforward | 16 | 25 | |
Employee benefit plans and share-based compensation plans | 2,498 | 1,979 | |
Deferred loan fees, net | 339 | 238 | |
Reserve for unfunded commitments | 31 | 39 | |
Net unrealized loss on securities | 107 | 0 | |
Other | 109 | 140 | |
Gross deferred tax assets | 6,511 | 5,205 | |
Deferred tax liabilities: | |||
Prepaid expenses | (45) | (64) | |
FHLB restructure fees | (29) | (52) | |
Net unrealized holding gain on securities | 0 | (169) | |
Gross deferred tax liabilities | (74) | (285) | |
Net deferred tax asset | $ 6,589 | $ 6,437 | $ 4,920 |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
US corporate income tax rate | 21.00% | 34.00% |
Impact of rate reduction a decrease in net deferred tax asset | $ 2,000,000 | |
Deferred taxes includes unrealized gains and losses | 97,000 | |
Adjustment to deferred taxes resulted in a disproportionate tax effect | 97,000 | |
Federal net operating loss carryovers | $ 76,000 | |
Annual operating loss carryforwards | $ 42,000 | |
Previous tax year | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
US corporate income tax rate | 35.00% | |
Current tax year | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
US corporate income tax rate | 21.00% | |
New accounting pronouncement | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassified from retained earnings to accumulated other comprehensive income | $ 97,000 |
EMPLOYEE BENEFITS & SHARE-BAS_3
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS - Shares held by ESOP (Details) - shares | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Shares held by the ESOP include the following: | |||
Allocated | 95,240 | 71,430 | 47,620 |
Committed to be allocated | 5,952 | 23,810 | 23,810 |
Unallocated | 255,960 | 261,912 | 285,722 |
Total | 357,152 | 357,152 | 357,152 |
EMPLOYEE BENEFITS & SHARE-BAS_4
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Vesting period (years) | 5 years | 5 years |
Expiration date (years) | 10 years | 10 years |
Expected volatility | 21.23% | 21.53% |
Expected life (years) | 7 years 6 months | 7 years 6 months |
Expected dividend yield | 0.00% | 0.00% |
Risk free interest rate | 2.97% | 2.25% |
Fair value per option | $ 8.71 | $ 7.05 |
EMPLOYEE BENEFITS & SHARE-BAS_5
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Details 2) - Stock option - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Stock Option Awards | ||
Outstanding | 396,438 | 396,443 |
Granted | 0 | 12,170 |
Forfeited | 0 | (9,740) |
Exercised | 0 | (2,435) |
Outstanding | 396,438 | 396,438 |
Outstanding and expected to vest | 396,438 | 396,438 |
Vested and Exercisable | 151,272 | 151,272 |
Unrecognized compensation cost | $ 1,136,000 | $ 1,233,000 |
Weighted average remaining recognition period (years) | 2 years 9 months 4 days | 3 years 4 days |
Weighted Average Exercise Price | ||
Outstanding | $ 17.89 | $ 17.61 |
Granted | 0 | 27.2 |
Forfeited | 0 | 17.4 |
Exercised | 0 | 17.4 |
Outstanding | 17.89 | 17.89 |
Outstanding and expected to vest | 17.89 | 17.89 |
Vested and Exercisable | $ 17.50 | $ 17.5 |
Weighted Average Remaining Contractual Term (years) | ||
Outstanding | 7 years 9 months 4 days | 8 years |
Outstanding and expected to vest | 7 years 9 months 4 days | 8 years |
Vested and Exercisable | 7 years 7 months 28 days | 7 years 10 months 24 days |
Aggregate Intrinsic Value | ||
Outstanding | $ 1,888,000 | $ 1,503,000 |
Outstanding and expected to vest | 1,888,000 | 1,503,000 |
Vested and Exercisable | $ 632,000 | $ 632,000 |
EMPLOYEE BENEFITS & SHARE-BAS_6
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Details 3) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Unvested Restricted Stock Awards | ||
Unvested restricted stock awards | 98,073 | 127,852 |
Granted | 0 | 4,862 |
Forfeited | 0 | (3,896) |
Vested | 0 | (30,745) |
Unvested restricted stock awards | 98,073 | 98,073 |
Unrecognized compensation cost | $ 1,557,000 | $ 1,724,000 |
Weighted average remaining recognition period (years) | 2 years 9 months 4 days | 3 years 4 days |
Weighted Average Grant Price | ||
Unvested restricted stock awards | $ 18.13 | $ 17.59 |
Granted | 27.2 | |
Forfeited | 17.4 | |
Vested | 17.59 | |
Unvested restricted stock awards | $ 18.13 | $ 18.13 |
EMPLOYEE BENEFITS & SHARE-BAS_7
EMPLOYEE BENEFITS & SHARE-BASED COMPENSATION PLANS (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting period (years) | 5 years | 5 years | ||
Expiration date (years) | 10 years | 10 years | ||
Number of shares purchased | 357,152 | 357,152 | 357,152 | |
Number of shares committed to be released per year through 2029 | 23,810 | 23,810 | ||
Share price | $ 10 | $ 10 | ||
ESOP payable term | 15 years | |||
ESOP prime rate percentage | 5.50% | |||
Fair value of unallocated shares | $ 5,800,000 | |||
Compensation expense | 136,000 | $ 150,000 | $ 613,000 | $ 511,000 |
Restricted stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Shares reserved for future issuance | 178,575 | |||
Share based compensation expenses | 168,000 | 139,000 | $ 524,000 | 538,000 |
Stock option | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Shares reserved for future issuance | 446,440 | |||
Expiration date (years) | 10 years | |||
Share based compensation expenses | $ 97,000 | $ 101,000 | $ 404,000 | 388,000 |
Supplemental Executive Retirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liability for retirement benefits | 6,800,000 | 5,600,000 | ||
Expense recognized for benefits | $ 1,100,000 | 1,200,000 | ||
401(k) Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer matching contribution, percent of match | 100.00% | |||
Employee contributions | 6.00% | |||
Percent of Employees' Gross Pay contribution | 75.00% | |||
Expense recognized | $ 494,000 | $ 440,000 | ||
Employee Stock Ownership Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of shares purchased | 357,152 | |||
Share price | $ 10 | |||
ESOP payable term | 15 years | |||
ESOP prime rate percentage | 5.50% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to common shareholders | $ 2,218 | $ 2,022 | $ 9,325 | $ 7,915 | |||||||
Average number of common shares outstanding | 9,662,181 | 9,657,319 | 9,659,357 | 9,652,448 | |||||||
Less: | |||||||||||
Average unallocated ESOP shares | (271,525) | (286,226) | (283,337) | (298,680) | |||||||
Average unvested restricted stock | (87,268) | (122,405) | (106,033) | (136,986) | |||||||
Average treasury stock acquired | (36,282) | (28,823) | (29,901) | (17,508) | |||||||
Average number of common shares outstanding to calculate basic earnings per common share | 9,267,106 | 9,258,858 | 9,247,367 | 9,233,745 | 9,219,865 | 9,208,854 | 9,201,634 | 9,193,836 | 9,192,568 | 9,240,086 | 9,199,274 |
Effect of dilutive unvested restricted stock and stock option awards | 38,178 | 75,138 | 66,230 | 613 | |||||||
Average number of common shares outstanding to calculate diluted earnings per common share | 9,305,284 | 9,339,431 | 9,355,410 | 9,302,425 | 9,295,003 | 9,257,702 | 9,213,056 | 9,198,286 | 9,192,568 | 9,306,316 | 9,199,887 |
Earnings per common share: | |||||||||||
Basic | $ 0.24 | $ 0.31 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 1.01 | $ 0.86 |
Diluted | $ 0.24 | $ 0.30 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 1 | $ 0.86 |
REGULATORY MATTERS - Bank's act
REGULATORY MATTERS - Bank's actual capital amounts and ratios (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | |||
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 131,884 | $ 128,939 | $ 116,869 |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 14.50% | 14.55% | 14.96% |
Total Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 73,014 | $ 70,891 | $ 62,514 |
Total Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | 8.00% |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 91,267 | $ 88,614 | $ 78,142 |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% | 10.00% |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 120,471 | $ 117,855 | $ 107,112 |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 13.20% | 13.30% | 13.71% |
Tier I Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 54,760 | $ 53,168 | $ 46,885 |
Tier I Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | 6.00% |
Tier I Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 73,014 | $ 70,891 | $ 62,514 |
Tier I Capital to Risk-Weighted AssetsTo be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% | 8.00% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 107,112 | $ 117,855 | $ 107,112 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Ratio | 13.71% | 13.30% | 13.71% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 35,164 | $ 39,876 | $ 35,164 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 50,792 | $ 57,599 | $ 50,792 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% | 6.50% |
Tier I Capital to Average Assets, Actual Capital, Amount | $ 120,471 | $ 117,855 | $ 107,112 |
Tier I Capital to Average Assets, Actual Capital, Ratio | 12.20% | 12.69% | 11.80% |
Tier I Capital to Average Assets, For Capital Adequacy Purposes, Amount | $ 39,512 | $ 37,157 | $ 36,299 |
Tier I Capital to Average Assets, For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | 4.00% |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 49,391 | $ 46,446 | $ 45,374 |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% | 5.00% |
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 ($)Contract | |
Leases [Line Items] | |
Total lease liabilities | $ 3,919,000 |
Adopted ASU No. 2016-02, Leases (Topic 842) | |
Leases [Line Items] | |
Recognized right-of-use assets | 3,800,000 |
Total lease liabilities | $ 3,919,000 |
Number of leases branch location | Contract | 3 |
Description of leases options to extend | Leases include options to extend the lease for up to 20 years |
Number of leases | Contract | 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 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Notional amounts of financial instrument with off-balance sheet credit risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | $ 240,275 | $ 186,959 |
Commitments to originate loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | 42,625 | 18,641 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | 1,546 | 2,004 |
Unadvanced portions of loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | $ 196,104 | $ 166,314 |
FINANCIAL INSTRUMENTS WITH OF_5
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financial and standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Maximum potential amount of obligation | $ 1.5 | $ 2 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial instruments measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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 | $ 61,429 |
State and municipal | |||
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 | 21,454 |
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 | 7,517 |
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 | 32,458 |
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 | 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 | 61,429 |
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 | 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 | 61,429 |
Recurring basis | State and municipal | |||
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 | 21,454 |
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 | 7,517 |
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 | 32,458 |
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 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | State and municipal | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in available-for-sale securities (at fair value) | 0 | 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 | 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 | 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 | 61,429 |
Recurring basis | Significant Other Observable Inputs Level 2 | State and municipal | |||
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 | 21,454 |
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 | 7,517 |
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 | 32,458 |
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 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | State and municipal | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in available-for-sale securities (at fair value) | 0 | 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 | 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 | $ 0 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values of Financial Instruments Measured on Nonrecurring Basis (Details 1) - Nonrecurring basis - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 4,476 | $ 659 | $ 3,670 |
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 | 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 | 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 | $ 3,670 |
Other real estate owned | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Valua
FAIR VALUE MEASUREMENTS - Valuation methodology and unobservable inputs for Level 3 assets (Details 2) - Nonrecurring basis - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Impaired loans, fair value | $ 4,476 | $ 659 | $ 3,670 |
Level 3 | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Impaired loans, fair value | $ 4,476 | $ 659 | $ 3,670 |
DISCLOSURES ABOUT FAIR VALUES_3
DISCLOSURES ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS - Carrying amounts and estimated fair values (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | |||||
Cash and cash equivalents | $ 23,726 | $ 28,613 | $ 22,320 | $ 47,689 | $ 10,705 |
Available-for-sale securities | 49,662 | 51,403 | 61,429 | ||
Federal Home Loan Bank of Boston stock | 3,515 | 2,650 | 1,854 | ||
Accrued interest receivable | 3,171 | 2,638 | 2,345 | ||
Financial liabilities: | |||||
Borrowings | 79,942 | 68,022 | 26,841 | ||
Carrying Amount | |||||
Financial assets: | |||||
Cash and cash equivalents | 23,726 | 28,613 | 47,689 | ||
Available-for-sale securities | 49,662 | 51,403 | 61,429 | ||
Federal Home Loan Bank of Boston stock | 3,515 | 2,650 | 1,854 | ||
Loans, net | 859,269 | 835,528 | 742,138 | ||
Accrued interest receivable | 3,171 | 2,638 | 2,345 | ||
Financial liabilities: | |||||
Deposits | 775,277 | 768,096 | 750,057 | ||
Borrowings | 79,942 | 68,022 | 26,841 | ||
Fair Value | |||||
Financial assets: | |||||
Cash and cash equivalents | 23,726 | 28,613 | 47,689 | ||
Available-for-sale securities | 49,662 | 51,403 | 61,429 | ||
Federal Home Loan Bank of Boston stock | 3,515 | 2,650 | 1,854 | ||
Loans, net | 852,305 | 827,090 | 745,637 | ||
Accrued interest receivable | 3,171 | 2,638 | 2,345 | ||
Financial liabilities: | |||||
Deposits | 775,554 | 768,010 | 749,898 | ||
Borrowings | 79,984 | 67,846 | 26,655 | ||
Level 1 | |||||
Financial assets: | |||||
Cash and cash equivalents | 23,726 | 28,613 | 47,689 | ||
Available-for-sale securities | 0 | 0 | 0 | ||
Federal Home Loan Bank of Boston stock | 3,515 | 2,650 | 1,854 | ||
Loans, net | 0 | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | 0 | ||
Financial liabilities: | |||||
Deposits | 0 | 0 | 0 | ||
Borrowings | 0 | 0 | 0 | ||
Level 2 | |||||
Financial assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Available-for-sale securities | 49,662 | 51,403 | 61,429 | ||
Federal Home Loan Bank of Boston stock | 0 | 0 | 0 | ||
Loans, net | 0 | 0 | 0 | ||
Accrued interest receivable | 3,171 | 2,638 | 2,345 | ||
Financial liabilities: | |||||
Deposits | 0 | 0 | 0 | ||
Borrowings | 79,984 | 67,846 | 26,655 | ||
Level 3 | |||||
Financial assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Available-for-sale securities | 0 | 0 | 0 | ||
Federal Home Loan Bank of Boston stock | 0 | 0 | 0 | ||
Loans, net | 852,305 | 827,090 | 745,637 | ||
Accrued interest receivable | 0 | 0 | 0 | ||
Financial liabilities: | |||||
Deposits | 775,554 | 768,010 | 749,898 | ||
Borrowings | $ 0 | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES - Total minimum rental due in future periods (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 285 |
2020 | 244 |
2021 | 252 |
2022 | 252 |
2023 | 252 |
Years thereafter | 1,908 |
Total minimum lease payments | $ 3,193 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Detail Textuals) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | $ 460,000 | $ 349,000 | |
Aggregate principal outstanding balance foreclosure sale | $ 7,500,000 | ||
Aggregate principal outstanding balance retain by bank | 4,900,000 | ||
Aggregate principal outstanding balance retain by another institution | 2,600,000 | ||
Proceeds from sale of foreclosed assets | 8,300,000 | ||
Amount retain from proceeds of foreclosure sale | 2,000,000 | ||
Dispute proceeds deposit in suspense account | 1,400,000 | ||
Dispute proceeds deposit in suspense account by another institution | $ 543,000 |
SUBSEQUENT EVENT (Detail Textua
SUBSEQUENT EVENT (Detail Textuals) | Mar. 31, 2019USD ($) |
Subsequent Events [Abstract] | |
Conversion cost | $ 30,000 |
CONDENSED FINANCIAL STATEMENT_3
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY - Parent Only Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||||
Cash and due from banks | $ 9,151 | $ 10,941 | $ 10,326 | ||
Other assets | 2,997 | 2,822 | 2,083 | ||
Total assets | 998,519 | 974,079 | 902,265 | ||
Liabilities and Shareholders' Equity | |||||
Shareholders' equity | 128,272 | 125,584 | $ 117,330 | 115,777 | $ 109,149 |
Total liabilities and shareholders' equity | $ 998,519 | 974,079 | 902,265 | ||
PROVIDENT BANCORP, INC. | |||||
Assets | |||||
Cash and due from banks | 5,249 | 5,224 | |||
Investment in common stock of The Provident Bank | 117,615 | 107,629 | |||
Other assets | 2,755 | 2,946 | |||
Total assets | 125,619 | 115,799 | |||
Liabilities and Shareholders' Equity | |||||
Accrued expenses | 35 | 22 | |||
Shareholders' equity | 125,584 | 115,777 | |||
Total liabilities and shareholders' equity | $ 125,619 | $ 115,799 |
CONDENSED FINANCIAL STATEMENT_4
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY - Parent Only Income Statement (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total income | $ 26 | $ 42 | $ 313 | $ 100 | |||||||
Applicable income tax provision | 778 | $ 975 | $ 741 | $ 843 | 678 | $ 4,498 | $ 1,434 | $ 639 | $ 847 | 3,237 | 7,418 |
Net income | $ 2,218 | $ 2,835 | $ 2,078 | $ 2,390 | $ 2,022 | $ 1,741 | $ 2,771 | $ 1,601 | $ 1,802 | 9,325 | 7,915 |
PROVIDENT BANCORP, INC. | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total income | 140 | 120 | |||||||||
Operating expenses | 90 | 88 | |||||||||
Income before income taxes and equity in undistributed net income of The Provident Bank | 50 | 32 | |||||||||
Applicable income tax provision | 14 | 13 | |||||||||
Income before equity in income of subsidiaries | 36 | 19 | |||||||||
Equity in undistributed net income of The Provident Bank | 9,289 | 7,896 | |||||||||
Net income | $ 9,325 | $ 7,915 |
CONDENSED FINANCIAL STATEMENT_5
CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY - Parent Only Statement of Cash Flows (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 2,218 | $ 2,835 | $ 2,078 | $ 2,390 | $ 2,022 | $ 1,741 | $ 2,771 | $ 1,601 | $ 1,802 | $ 9,325 | $ 7,915 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Decrease in other assets | 175 | (611) | (613) | 539 | |||||||
Increase (decrease) in other liabilities | (1,166) | (664) | 2,787 | 1,036 | |||||||
Cash flows from financing activities: | |||||||||||
Purchase of treasury stock | (215) | (594) | |||||||||
Net increase (decrease) in cash and cash equivalents | (4,887) | (25,369) | (19,076) | 36,984 | |||||||
Cash and cash equivalents at beginning of year | 28,613 | $ 22,320 | 47,689 | 10,705 | 47,689 | 10,705 | |||||
Cash and cash equivalents at end of year | 23,726 | 28,613 | 22,320 | 47,689 | 28,613 | 47,689 | |||||
PROVIDENT BANCORP, INC. | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 9,325 | 7,915 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Equity in undistributed earnings of subsidiaries | (9,289) | (7,896) | |||||||||
Decrease in other assets | 191 | 191 | |||||||||
Increase (decrease) in other liabilities | 13 | (51) | |||||||||
Net cash provided by operating activities | 240 | 159 | |||||||||
Cash flows from financing activities: | |||||||||||
Purchase of treasury stock | (215) | (594) | |||||||||
Net cash used in financing activities | (215) | (594) | |||||||||
Net increase (decrease) in cash and cash equivalents | 25 | (435) | |||||||||
Cash and cash equivalents at beginning of year | $ 5,249 | $ 5,224 | $ 5,659 | 5,224 | 5,659 | ||||||
Cash and cash equivalents at end of year | $ 5,249 | $ 5,224 | $ 5,249 | $ 5,224 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 12,129 | $ 11,377 | $ 10,833 | $ 10,377 | $ 9,753 | $ 9,615 | $ 9,239 | $ 8,816 | $ 8,112 | $ 42,340 | $ 35,782 |
Interest expense | 1,971 | 1,537 | 1,429 | 1,213 | 1,034 | 1,062 | 1,005 | 879 | 781 | 5,213 | 3,726 |
Net interest and dividend income | 10,158 | 9,840 | 9,404 | 9,164 | 8,719 | 8,553 | 8,234 | 7,937 | 7,331 | 37,127 | 32,056 |
Provision for loan losses | 1,462 | 614 | 1,421 | 638 | 656 | 462 | 1,012 | 892 | 563 | 3,329 | 2,929 |
Gain on sale of securities, net | 113 | 3,521 | 1,851 | 58 | 482 | 5,912 | |||||
Other income | 15 | 988 | 1,059 | 1,118 | 25 | 966 | 1,046 | 1,012 | 1,020 | 64 | 87 |
Total noninterest income | 1,046 | 988 | 1,059 | 1,118 | 1,013 | 4,487 | 2,897 | 1,070 | 1,502 | 4,178 | 9,955 |
Total noninterest expense | 6,746 | 6,404 | 6,223 | 6,411 | 6,376 | 6,339 | 5,914 | 5,875 | 5,621 | 25,414 | 23,749 |
Income tax expense | 778 | 975 | 741 | 843 | 678 | 4,498 | 1,434 | 639 | 847 | 3,237 | 7,418 |
Net income | $ 2,218 | $ 2,835 | $ 2,078 | $ 2,390 | $ 2,022 | $ 1,741 | $ 2,771 | $ 1,601 | $ 1,802 | $ 9,325 | $ 7,915 |
Income per share: | |||||||||||
Basic (in dollars per share) | $ 0.24 | $ 0.31 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 1.01 | $ 0.86 |
Diluted (in dollars per share) | $ 0.24 | $ 0.30 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.16 | $ 1 | $ 0.86 |
Weighted Average Shares: | |||||||||||
Basic (in shares) | 9,267,106 | 9,258,858 | 9,247,367 | 9,233,745 | 9,219,865 | 9,208,854 | 9,201,634 | 9,193,836 | 9,192,568 | 9,240,086 | 9,199,274 |
Diluted (in shares) | 9,305,284 | 9,339,431 | 9,355,410 | 9,302,425 | 9,295,003 | 9,257,702 | 9,213,056 | 9,198,286 | 9,192,568 | 9,306,316 | 9,199,887 |