[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
CHICOPEE BANCORP, INC. | |
(Exact name of registrant as specified in its charter) | |
Massachusetts | 20-4840562 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
70 Center Street, Chicopee, Massachusetts | 01013 |
(Address of principal executive offices) | (Zip Code) |
(413) 594-6692 | |
(Registrant’s telephone number, including area code) | |
Large Accelerated Filer [ ] | Accelerated Filer [X] |
Non-Accelerated Filer [ ] | Smaller Reporting Company [ ] |
Page | |||
PART I. FINANCIAL INFORMATION | |||
Consolidated Statements of Financial Condition at June 30, 2016 and December 31, 2015 | |||
Consolidated Statements of Income for the three and six months ended June 30, 2016 and 2015 | |||
Consolidated Statements of Comprehensive Income for the three and six months ended | |||
June 30, 2016 and 2015 | |||
Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended | |||
June 30, 2016 and 2015 | |||
Consolidated Statements of Cash Flows for the three and six months ended June 30, 2016 | |||
and 2015 | |||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||
PART II. OTHER INFORMATION | |||
CHICOPEE BANCORP, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
(Dollars In Thousands) | |||||||
(Unaudited) | |||||||
June 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 8,740 | $ | 9,975 | |||
Federal funds sold | 4,619 | 4,613 | |||||
Interest-bearing deposits with the Federal Reserve Bank of Boston | 20,933 | 13,641 | |||||
Total cash and cash equivalents | 34,292 | 28,229 | |||||
Securities available-for-sale, at fair value | 406 | 426 | |||||
Securities held-to-maturity, at cost (fair value of $31,618 at June 30, 2016 and $32,935 at December 31, 2015) | 31,591 | 32,229 | |||||
Federal Home Loan Bank stock, at cost | 4,225 | 4,764 | |||||
Loans, net of allowance for loan losses of $5,743 at June 30, 2016 and $5,615 at December 31, 2015 | 599,296 | 580,959 | |||||
Loans held for sale | 596 | 296 | |||||
Other real estate owned | 1,061 | 1,435 | |||||
Mortgage servicing rights | 158 | 192 | |||||
Bank owned life insurance | 15,044 | 14,881 | |||||
Premises and equipment, net | 8,305 | 8,509 | |||||
Accrued interest and dividends receivable | 1,728 | 1,668 | |||||
Deferred income tax asset | 3,787 | 3,780 | |||||
Other assets | 1,300 | 1,206 | |||||
Total assets | $ | 701,789 | $ | 678,574 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Deposits | |||||||
Demand deposits | $ | 116,463 | $ | 102,424 | |||
NOW accounts | 46,967 | 45,228 | |||||
Savings accounts | 54,872 | 52,359 | |||||
Money market deposit accounts | 125,459 | 116,226 | |||||
Certificates of deposit | 196,873 | 190,872 | |||||
Total deposits | 540,634 | 507,109 | |||||
Federal Home Loan Bank of Boston advances | 70,454 | 81,330 | |||||
Accrued expenses and other liabilities | 948 | 861 | |||||
Total liabilities | 612,036 | 589,300 | |||||
Stockholders' equity | |||||||
Common stock (no par value, 20,000,000 shares authorized, 7,439,368 shares issued; 5,222,339 and 5,210,739 shares outstanding at June 30, 2016 and December 31, 2015, respectively) | 72,479 | 72,479 | |||||
Treasury stock, at cost (2,217,029 and 2,228,629 shares at June 30, 2016 and December 31, 2015, respectively) | (30,169 | ) | (30,327 | ) | |||
Additional paid-in-capital | 4,289 | 4,111 | |||||
Unearned compensation (restricted stock awards) | — | (1 | ) | ||||
Unearned compensation (Employee Stock Ownership Plan) | (2,827 | ) | (2,976 | ) | |||
Retained earnings | 45,957 | 45,951 | |||||
Accumulated other comprehensive income | 24 | 37 | |||||
Total stockholders' equity | 89,753 | 89,274 | |||||
Total liabilities and stockholders' equity | $ | 701,789 | $ | 678,574 | |||
See accompanying notes to unaudited consolidated financial statements. |
CHICOPEE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(In Thousands, Except for Number of Shares and Per Share Amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest and dividend income: | |||||||||||||||
Loans, including fees | $ | 6,143 | $ | 5,877 | $ | 12,196 | $ | 11,481 | |||||||
Interest and dividends on securities | 385 | 376 | 773 | 753 | |||||||||||
Interest on other interest-earning assets | 28 | 20 | 60 | 39 | |||||||||||
Total interest and dividend income | 6,556 | 6,273 | 13,029 | 12,273 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 750 | 703 | 1,477 | 1,415 | |||||||||||
Federal Home Loan Bank of Boston advances | 297 | 317 | 603 | 581 | |||||||||||
Total interest expense | 1,047 | 1,020 | 2,080 | 1,996 | |||||||||||
Net interest income | 5,509 | 5,253 | 10,949 | 10,277 | |||||||||||
Provision for loan losses | 121 | 207 | 176 | 607 | |||||||||||
Net interest income, after provision for loan losses | 5,388 | 5,046 | 10,773 | 9,670 | |||||||||||
Non-interest income: | |||||||||||||||
Service charges, fees and commissions | 633 | 584 | 1,222 | 1,099 | |||||||||||
Net loan sales and servicing | 60 | 77 | 135 | 116 | |||||||||||
Net gain on sale of other real estate owned | 20 | — | 21 | — | |||||||||||
Other real estate owned writedowns | — | — | (104 | ) | — | ||||||||||
Increase in cash surrender value of bank owned life insurance | 78 | 87 | 163 | 175 | |||||||||||
Total non-interest income | 791 | 748 | 1,437 | 1,390 | |||||||||||
Non-interest expenses: | |||||||||||||||
Salaries and employee benefits | 2,701 | 2,571 | 5,409 | 5,107 | |||||||||||
Occupancy expenses | 384 | 370 | 804 | 844 | |||||||||||
Furniture and equipment | 155 | 168 | 308 | 349 | |||||||||||
FDIC insurance and assessment | 103 | 118 | 209 | 241 | |||||||||||
Data processing services | 447 | 431 | 911 | 842 | |||||||||||
Professional fees | 128 | 202 | 339 | 380 | |||||||||||
Advertising expense | 160 | 144 | 320 | 289 | |||||||||||
Stationery, supplies and postage | 55 | 56 | 143 | 132 | |||||||||||
Foreclosure expense | 78 | 94 | 163 | 254 | |||||||||||
Merger related expenses | 775 | — | 775 | — | |||||||||||
Other non-interest expense | 602 | 620 | 1,250 | 1,206 | |||||||||||
Total non-interest expenses | 5,588 | 4,774 | 10,631 | 9,644 | |||||||||||
Income before income taxes | 591 | 1,020 | 1,579 | 1,416 | |||||||||||
Income tax expense | 370 | 278 | 661 | 360 | |||||||||||
Net income | $ | 221 | $ | 742 | $ | 918 | $ | 1,056 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.04 | $ | 0.15 | $ | 0.19 | $ | 0.21 | |||||||
Diluted | $ | 0.04 | $ | 0.15 | $ | 0.18 | $ | 0.21 | |||||||
Adjusted weighted average shares outstanding: | |||||||||||||||
Basic | 4,924,764 | 4,943,290 | 4,919,896 | 4,942,965 | |||||||||||
Diluted | 5,046,062 | 5,018,601 | 5,039,791 | 5,015,703 | |||||||||||
See accompanying notes to unaudited consolidated financial statements. |
CHICOPEE BANCORP, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||
(In Thousands) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
Net income | $ | 221 | $ | 742 | |||
Other comprehensive (loss) income, net of tax | |||||||
Unrealized holding (losses) gains arising during period on securities available-for-sale | (17 | ) | 1 | ||||
Tax effect | 6 | — | |||||
Total other comprehensive (loss) income, net of tax | (11 | ) | 1 | ||||
Total comprehensive income | $ | 210 | $ | 743 | |||
Six Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
Net income | $ | 918 | $ | 1,056 | |||
Other comprehensive loss, net of tax | |||||||
Unrealized holding losses arising during period on securities available-for-sale | (20 | ) | (14 | ) | |||
Tax effect | 7 | 5 | |||||
Total other comprehensive loss, net of tax | (13 | ) | (9 | ) | |||
Total comprehensive income | $ | 905 | $ | 1,047 | |||
CHICOPEE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||||
Six Months Ended June 30, 2016 and 2015 | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Unearned Compensation(restricted stock awards) | Unearned Compensation (Employee Stock Ownership Plan) | Retained Earnings | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 72,479 | $ | (29,119 | ) | $ | 3,595 | $ | (7 | ) | $ | (3,273 | ) | $ | 44,430 | $ | 29 | $ | 88,134 | ||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,056 | — | 1,056 | |||||||||||||||||||||||
Change in net unrealized gain on available-for-sale securities (net of deferred income taxes of $5) | — | — | — | — | — | — | (9 | ) | (9 | ) | |||||||||||||||||||||
Total comprehensive income | 1,047 | ||||||||||||||||||||||||||||||
Stock option expense | — | 53 | — | — | — | — | 53 | ||||||||||||||||||||||||
Stock options exercised (800 shares) | — | 13 | (2 | ) | — | — | — | — | 11 | ||||||||||||||||||||||
Change in unearned compensation: | |||||||||||||||||||||||||||||||
Restricted stock award expense | — | — | — | 3 | — | — | — | 3 | |||||||||||||||||||||||
Common stock held by ESOP committed to be released | — | — | 97 | — | 149 | — | — | 246 | |||||||||||||||||||||||
Cash dividends declared ($0.14 per share) | — | — | — | — | — | (715 | ) | — | (715 | ) | |||||||||||||||||||||
Balance at June 30, 2015 | $ | 72,479 | $ | (29,106 | ) | $ | 3,743 | $ | (4 | ) | $ | (3,124 | ) | $ | 44,771 | $ | 20 | $ | 88,779 | ||||||||||||
Balance at December 31, 2015 | $ | 72,479 | $ | (30,327 | ) | $ | 4,111 | $ | (1 | ) | $ | (2,976 | ) | $ | 45,951 | $ | 37 | $ | 89,274 | ||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 918 | — | 918 | |||||||||||||||||||||||
Change in net unrealized gain on available-for-sale securities (net of deferred income taxes of $7) | — | — | — | — | — | — | (13 | ) | (13 | ) | |||||||||||||||||||||
Total comprehensive income | 905 | ||||||||||||||||||||||||||||||
Stock option expense | — | — | 51 | — | — | — | — | 51 | |||||||||||||||||||||||
Stock options exercised (11,600 shares) | — | 158 | 8 | — | — | — | — | 166 | |||||||||||||||||||||||
Change in unearned compensation: | |||||||||||||||||||||||||||||||
Restricted stock award expense | — | — | — | 1 | — | — | — | 1 | |||||||||||||||||||||||
Common stock held by ESOP committed to be released | — | — | 119 | — | 149 | — | — | 268 | |||||||||||||||||||||||
Cash dividends declared ($0.18 per share) | — | — | — | — | — | (912 | ) | — | (912 | ) | |||||||||||||||||||||
Balance at June 30, 2016 | $ | 72,479 | $ | (30,169 | ) | $ | 4,289 | $ | — | $ | (2,827 | ) | $ | 45,957 | $ | 24 | $ | 89,753 | |||||||||||||
See accompanying notes to unaudited consolidated financial statements. |
CHICOPEE BANCORP, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | (In Thousands) | ||||||
Net income | $ | 918 | $ | 1,056 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 336 | 359 | |||||
Loss on disposal of premises and equipment | 13 | — | |||||
Provision for loan losses | 176 | 607 | |||||
Increase in cash surrender value of bank owned life insurance | (163 | ) | (175 | ) | |||
Change in mortgage servicing rights | 34 | 47 | |||||
Net loss on other real estate owned | 83 | — | |||||
Loans originated for sale | (2,761 | ) | (1,212 | ) | |||
Proceeds from loan sales | 2,514 | 1,228 | |||||
Realized gains on sales of mortgage loans | (53 | ) | (16 | ) | |||
(Increase) decrease in other assets | (95 | ) | 299 | ||||
Increase in accrued interest and dividends receivable | (60 | ) | (130 | ) | |||
Increase in other liabilities | 88 | 7 | |||||
Change in unearned compensation | 269 | 249 | |||||
Stock option expense | 51 | 53 | |||||
Net cash provided by operating activities | 1,350 | 2,372 | |||||
Cash flows from investing activities: | |||||||
Purchase of premises and equipment | (145 | ) | (252 | ) | |||
Loan originations, net of principal payments | (18,513 | ) | (47,890 | ) | |||
Proceeds from sales of other real estate owned | 291 | 185 | |||||
Proceeds from principal paydowns of held-to-maturity securities | 638 | 646 | |||||
Redemption (purchase) of Federal Home Loan Bank stock | 539 | (691 | ) | ||||
Net cash used by investing activities | (17,190 | ) | (48,002 | ) | |||
Cash flows from financing activities: | |||||||
Net increase in deposits | 33,525 | 9,194 | |||||
Proceeds from long-term FHLB advances | — | 33,100 | |||||
Repayments of long-term FHLB advances | (15,876 | ) | (9,713 | ) | |||
Proceeds from short-term FHLB advances | 5,000 | — | |||||
Cash dividends paid on common stock | (912 | ) | (715 | ) | |||
Stock options exercised | 166 | 11 | |||||
Net cash provided by financing activities | 21,903 | 31,877 | |||||
Net increase (decrease) in cash and cash equivalents | 6,063 | (13,753 | ) | ||||
Cash and cash equivalents at beginning of period | 28,229 | 49,769 | |||||
Cash and cash equivalents at end of period | $ | 34,292 | $ | 36,016 | |||
Supplemental cash flow information: | |||||||
Interest paid on deposits | $ | 1,477 | $ | 1,415 | |||
Interest paid on borrowings | 622 | 559 | |||||
Income taxes paid | 212 | 299 | |||||
Transfers from loans to other real estate owned | — | 195 | |||||
See accompanying notes to unaudited consolidated financial statements. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
($ in thousands, except share data ) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income | $ | 221 | $ | 742 | $ | 918 | $ | 1,056 | |||||||
Average number of shares issued | 7,439,368 | 7,439,368 | 7,439,368 | 7,439,368 | |||||||||||
Less: average number of treasury shares | (2,217,029 | ) | (2,168,346 | ) | (2,221,745 | ) | (2,168,521 | ) | |||||||
Less: average number of unallocated ESOP shares | (297,575 | ) | (327,332 | ) | (297,575 | ) | (327,332 | ) | |||||||
Less: average number of outstanding restricted stock awards | — | (400 | ) | (152 | ) | (550 | ) | ||||||||
Adjusted weighted average number of common shares outstanding | 4,924,764 | 4,943,290 | 4,919,896 | 4,942,965 | |||||||||||
Plus: dilutive outstanding restricted stock awards | — | 122 | 146 | 228 | |||||||||||
Plus: dilutive outstanding stock options | 121,298 | 75,189 | 119,749 | 72,510 | |||||||||||
Weighted average number of diluted shares outstanding | 5,046,062 | 5,018,601 | 5,039,791 | 5,015,703 | |||||||||||
Net income per share: | |||||||||||||||
Basic-common stock | $ | 0.04 | $ | 0.15 | $ | 0.19 | $ | 0.21 | |||||||
Basic-unvested share-based payment awards | $ | 0.04 | $ | 0.15 | $ | 0.19 | $ | 0.21 | |||||||
Diluted-common stock | $ | 0.04 | $ | 0.15 | $ | 0.18 | $ | 0.21 | |||||||
Diluted-unvested share-based payment awards | $ | 0.04 | $ | 0.15 | $ | 0.18 | $ | 0.21 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (000's) | ||||||||||
Outstanding at December 31, 2015 | 646,098 | $ | 14.55 | 2.79 | $ | 1,800 | |||||||
Exercised | (11,600 | ) | 14.29 | 1.07 | 43 | ||||||||
Forfeited or expired | — | — | — | — | |||||||||
Outstanding at June 30, 2016 | 634,498 | $ | 14.56 | 2.31 | $ | 2,348 | |||||||
Exercisable at June 30, 2016 | 588,897 | $ | 14.45 | 2.00 | $ | 2,245 | |||||||
Exercisable at June 30, 2015 | 570,097 | $ | 14.39 | 2.76 | $ | 1,547 |
Nonvested Shares | Number of Shares | Weighted Average Grant-Date Fair Value | |||||
Outstanding at December 31, 2015 | 400 | $ | 14.08 | ||||
Vested | 400 | 14.08 | |||||
Outstanding at June 30, 2016 | — | $ | — |
June 30, 2016 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(In Thousands) | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Marketable equity securities | $ | 369 | $ | 37 | $ | — | $ | 406 | |||||||
Total available-for-sale securities | $ | 369 | $ | 37 | $ | — | $ | 406 | |||||||
Held-to-maturity securities: | |||||||||||||||
Corporate and industrial revenue bonds | $ | 31,472 | $ | 24 | $ | — | $ | 31,496 | |||||||
Collateralized mortgage obligations | 119 | 3 | — | 122 | |||||||||||
Total held-to-maturity securities | $ | 31,591 | $ | 27 | $ | — | $ | 31,618 | |||||||
Non-marketable securities: | |||||||||||||||
Federal Home Loan Bank stock | $ | 4,225 | $ | — | $ | — | $ | 4,225 | |||||||
Banker's Bank Northeast stock | 183 | — | — | 183 | |||||||||||
Total non-marketable securities | $ | 4,408 | $ | — | $ | — | $ | 4,408 |
December 31, 2015 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(In Thousands) | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Marketable equity securities | $ | 369 | $ | 57 | $ | — | $ | 426 | |||||||
Total available-for-sale securities | $ | 369 | $ | 57 | $ | — | $ | 426 | |||||||
Held-to-maturity securities: | |||||||||||||||
Corporate and industrial revenue bonds | $ | 32,029 | $ | 700 | $ | — | $ | 32,729 | |||||||
Collateralized mortgage obligations | 200 | 6 | — | 206 | |||||||||||
Total held-to-maturity securities | $ | 32,229 | $ | 706 | $ | — | $ | 32,935 | |||||||
Non-marketable securities: | |||||||||||||||
Federal Home Loan Bank stock | $ | 4,764 | $ | — | $ | — | $ | 4,764 | |||||||
Banker's Bank Northeast stock | 183 | — | — | 183 | |||||||||||
Total non-marketable securities | $ | 4,947 | $ | — | $ | — | $ | 4,947 |
Held-to-maturity | |||||||
Amortized Cost | Fair Value | ||||||
(In Thousands) | |||||||
Due in one year or less | $ | — | $ | — | |||
Due after one year through five years | 7,771 | 7,963 | |||||
Due after five years through ten years | 6,458 | 6,413 | |||||
Due after ten years | 17,362 | 17,242 | |||||
Total | $ | 31,591 | $ | 31,618 |
June 30, 2016 | December 31, 2015 | ||||||||||||
Amount | Percent of Total | Amount | Percent of Total | ||||||||||
(Dollars In Thousands) | |||||||||||||
Real estate loans: | |||||||||||||
Residential | $ | 133,980 | 22.2 | % | $ | 127,610 | 21.8 | % | |||||
Home equity | 41,868 | 6.9 | % | 39,554 | 6.8 | % | |||||||
Commercial | 297,673 | 49.3 | % | 287,849 | 49.1 | % | |||||||
Total | 473,521 | 78.4 | % | 455,013 | 77.7 | % | |||||||
Construction-residential | 6,936 | 1.2 | % | 8,490 | 1.5 | % | |||||||
Construction-commercial | 50,077 | 8.3 | % | 48,128 | 8.2 | % | |||||||
Total | 57,013 | 9.5 | % | 56,618 | 9.7 | % | |||||||
Total real estate loans | 530,534 | 87.9 | % | 511,631 | 87.4 | % | |||||||
Consumer loans | 2,646 | 0.4 | % | 2,516 | 0.4 | % | |||||||
Commercial and industrial loans | 70,927 | 11.7 | % | 71,530 | 12.2 | % | |||||||
Total loans | 604,107 | 100.0 | % | 585,677 | 100.0 | % | |||||||
Deferred loan origination costs, net | 932 | 897 | |||||||||||
Allowance for loan losses | (5,743 | ) | (5,615 | ) | |||||||||
Loans, net | $ | 599,296 | $ | 580,959 | |||||||||
Commercial Credit Risk Exposure | |||||||||||||||
Commercial and Industrial | Commercial Construction | Commercial Real Estate | Total | ||||||||||||
(In Thousands) | |||||||||||||||
Pass | $ | 61,962 | $ | 44,823 | $ | 284,821 | $ | 391,606 | |||||||
Special mention | 5,852 | 5,041 | 8,346 | 19,239 | |||||||||||
Substandard | 3,113 | 213 | 4,506 | 7,832 | |||||||||||
Total commercial loans | $ | 70,927 | $ | 50,077 | $ | 297,673 | $ | 418,677 | |||||||
Residential Credit Risk Exposure | |||||||||||||||
Residential Real Estate | Residential Construction | Total | |||||||||||||
(In Thousands) | |||||||||||||||
Performing | $ | 129,684 | $ | 6,936 | $ | 136,620 | |||||||||
Nonperforming | 4,296 | — | 4,296 | ||||||||||||
Total residential loans (1) | $ | 133,980 | $ | 6,936 | $ | 140,916 | |||||||||
Consumer Credit Risk Exposure | |||||||||||||||
Consumer | Home Equity | Total | |||||||||||||
(In Thousands) | |||||||||||||||
Performing | $ | 2,631 | $ | 41,587 | $ | 44,218 | |||||||||
Nonperforming | 15 | 281 | 296 | ||||||||||||
Total consumer loans | $ | 2,646 | $ | 41,868 | $ | 44,514 |
Commercial Credit Risk Exposure | |||||||||||||||
Commercial and Industrial | Commercial Construction | Commercial Real Estate | Total | ||||||||||||
(In Thousands) | |||||||||||||||
Pass | $ | 63,499 | $ | 42,585 | $ | 275,628 | $ | 381,712 | |||||||
Special mention | 4,163 | 5,330 | 8,454 | 17,947 | |||||||||||
Substandard | 3,868 | 213 | 3,767 | 7,848 | |||||||||||
Total commercial loans | $ | 71,530 | $ | 48,128 | $ | 287,849 | $ | 407,507 | |||||||
Residential Credit Risk Exposure | |||||||||||||||
Residential Real Estate | Residential Construction | Total | |||||||||||||
(In Thousands) | |||||||||||||||
Performing | $ | 123,697 | $ | 8,490 | $ | 132,187 | |||||||||
Nonperforming | 3,913 | — | 3,913 | ||||||||||||
Total residential loans (1) | $ | 127,610 | $ | 8,490 | $ | 136,100 | |||||||||
Consumer Credit Risk Exposure | |||||||||||||||
Consumer | Home Equity | Total | |||||||||||||
(In Thousands) | |||||||||||||||
Performing | $ | 2,516 | $ | 39,366 | $ | 41,882 | |||||||||
Nonperforming | — | 188 | 188 | ||||||||||||
Total consumer loans | $ | 2,516 | $ | 39,554 | $ | 42,070 |
Residential Real Estate | Residential Construction | Commercial Real Estate | Commercial Construction | Commercial and Industrial | Consumer Loans | Home Equity | Total | ||||||||||||||||||||||||
Allowance for loan losses | (In Thousands) | ||||||||||||||||||||||||||||||
Balance as of March 31, 2016 | $ | 730 | $ | 81 | $ | 3,037 | $ | 772 | $ | 841 | $ | 28 | $ | 195 | $ | 5,684 | |||||||||||||||
Provision for (reduction of) loan losses | (26 | ) | (8 | ) | 46 | 43 | (12 | ) | 23 | 55 | 121 | ||||||||||||||||||||
Recoveries | — | — | — | — | 9 | — | 1 | 10 | |||||||||||||||||||||||
Loans charged off | (32 | ) | — | — | — | (19 | ) | (21 | ) | — | (72 | ) | |||||||||||||||||||
Balance as of June 30, 2016 | $ | 672 | $ | 73 | $ | 3,083 | $ | 815 | $ | 819 | $ | 30 | $ | 251 | $ | 5,743 |
Residential Real Estate | Residential Construction | Commercial Real Estate | Commercial Construction | Commercial and Industrial | Consumer Loans | Home Equity | Total | ||||||||||||||||||||||||
Allowance for loan losses | (In Thousands) | ||||||||||||||||||||||||||||||
Balance as of December 31, 2015 | $ | 658 | $ | 89 | $ | 3,012 | $ | 783 | $ | 856 | $ | 31 | $ | 186 | $ | 5,615 | |||||||||||||||
Provision for (reduction of) loan losses | 29 | (16 | ) | 71 | 32 | (36 | ) | 35 | 61 | 176 | |||||||||||||||||||||
Recoveries | 17 | — | — | — | 18 | — | 4 | 39 | |||||||||||||||||||||||
Loans charged off | (32 | ) | — | — | — | (19 | ) | (36 | ) | — | (87 | ) | |||||||||||||||||||
Balance as of June 30, 2016 | $ | 672 | $ | 73 | $ | 3,083 | $ | 815 | $ | 819 | $ | 30 | $ | 251 | $ | 5,743 | |||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 535 | $ | 73 | $ | 3,045 | $ | 815 | $ | 727 | $ | 30 | $ | 194 | $ | 5,419 | |||||||||||||||
Individually evaluated for impairment | 137 | — | 38 | — | 92 | — | 57 | 324 | |||||||||||||||||||||||
Total ending balance | $ | 672 | $ | 73 | $ | 3,083 | $ | 815 | $ | 819 | $ | 30 | $ | 251 | $ | 5,743 | |||||||||||||||
Total loans | |||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 129,684 | $ | 6,936 | $ | 295,775 | $ | 49,864 | $ | 68,257 | $ | 2,646 | $ | 41,587 | $ | 594,749 | |||||||||||||||
Individually evaluated for impairment | 4,296 | — | 1,898 | 213 | 2,670 | — | 281 | 9,358 | |||||||||||||||||||||||
Total ending balance | $ | 133,980 | $ | 6,936 | $ | 297,673 | $ | 50,077 | $ | 70,927 | $ | 2,646 | $ | 41,868 | $ | 604,107 |
Residential Real Estate | Residential Construction | Commercial Real Estate | Commercial Construction | Commercial and Industrial | Consumer Loans | Home Equity | Total | ||||||||||||||||||||||||
Allowance for loan losses | (In Thousands) | ||||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 486 | $ | 107 | $ | 2,699 | $ | 568 | $ | 879 | $ | 35 | $ | 153 | $ | 4,927 | |||||||||||||||
Provision for (reduction of) loan losses | 306 | (18 | ) | 403 | 177 | 4 | 24 | 45 | 941 | ||||||||||||||||||||||
Recoveries | 27 | — | 3 | 38 | 12 | 29 | 4 | 113 | |||||||||||||||||||||||
Loans charged off | (161 | ) | — | (93 | ) | — | (39 | ) | (57 | ) | (16 | ) | (366 | ) | |||||||||||||||||
Balance as of December 31, 2015 | $ | 658 | $ | 89 | $ | 3,012 | $ | 783 | $ | 856 | $ | 31 | $ | 186 | $ | 5,615 | |||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 513 | $ | 89 | $ | 2,988 | $ | 783 | $ | 746 | $ | 31 | $ | 185 | $ | 5,335 | |||||||||||||||
Individually evaluated for impairment | 145 | — | 24 | — | 110 | — | 1 | 280 | |||||||||||||||||||||||
Total ending balance | $ | 658 | $ | 89 | $ | 3,012 | $ | 783 | $ | 856 | $ | 31 | $ | 186 | $ | 5,615 | |||||||||||||||
Total loans | |||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 123,697 | $ | 8,490 | $ | 286,519 | $ | 47,915 | $ | 68,765 | $ | 2,516 | $ | 39,366 | $ | 577,268 | |||||||||||||||
Individually evaluated for impairment | 3,913 | — | 1,330 | 213 | 2,765 | — | 188 | 8,409 | |||||||||||||||||||||||
Total ending balance | $ | 127,610 | $ | 8,490 | $ | 287,849 | $ | 48,128 | $ | 71,530 | $ | 2,516 | $ | 39,554 | $ | 585,677 |
Residential Real Estate | Residential Construction | Commercial Real Estate | Commercial Construction | Commercial and Industrial | Consumer Loans | Home Equity | Total | ||||||||||||||||||||||||
Allowance for loan losses | (In Thousands) | ||||||||||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 546 | $ | 100 | $ | 2,849 | $ | 651 | $ | 850 | $ | 36 | $ | 152 | $ | 5,184 | |||||||||||||||
Provision for (reduction of) loan losses | 24 | (40 | ) | 291 | (59 | ) | (31 | ) | 3 | 19 | 207 | ||||||||||||||||||||
Recoveries | — | — | 1 | 38 | 4 | 6 | 1 | 50 | |||||||||||||||||||||||
Loans charged off | — | — | (3 | ) | — | (9 | ) | (14 | ) | (16 | ) | (42 | ) | ||||||||||||||||||
Balance as of June 30, 2015 | $ | 570 | $ | 60 | $ | 3,138 | $ | 630 | $ | 814 | $ | 31 | $ | 156 | $ | 5,399 |
Residential Real Estate | Residential Construction | Commercial Real Estate | Commercial Construction | Commercial and Industrial | Consumer Loans | Home Equity | Total | ||||||||||||||||||||||||
Allowance for loan losses | (In Thousands) | ||||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 486 | $ | 107 | $ | 2,699 | $ | 568 | $ | 879 | $ | 35 | $ | 153 | $ | 4,927 | |||||||||||||||
Provision for (reduction of) loan losses | 169 | (47 | ) | 444 | 24 | (7 | ) | 7 | 17 | 607 | |||||||||||||||||||||
Recoveries | — | — | 1 | 38 | 4 | 14 | 2 | 59 | |||||||||||||||||||||||
Loans charged off | (85 | ) | — | (6 | ) | — | (62 | ) | (25 | ) | (16 | ) | (194 | ) | |||||||||||||||||
Balance as of June 30, 2015 | $ | 570 | $ | 60 | $ | 3,138 | $ | 630 | $ | 814 | $ | 31 | $ | 156 | $ | 5,399 | |||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 525 | $ | 60 | $ | 3,112 | $ | 630 | $ | 784 | $ | 31 | $ | 155 | $ | 5,297 | |||||||||||||||
Individually evaluated for impairment | 45 | — | 26 | — | 30 | — | 1 | 102 | |||||||||||||||||||||||
Total ending balance | $ | 570 | $ | 60 | $ | 3,138 | $ | 630 | $ | 814 | $ | 31 | $ | 156 | $ | 5,399 | |||||||||||||||
Total loans | |||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 122,101 | $ | 5,732 | $ | 289,786 | $ | 36,854 | $ | 71,223 | $ | 2,599 | $ | 35,247 | $ | 563,542 | |||||||||||||||
Individually evaluated for impairment | 3,224 | — | 2,032 | 734 | 1,663 | — | 183 | 7,836 | |||||||||||||||||||||||
Total ending balance | $ | 125,325 | $ | 5,732 | $ | 291,818 | $ | 37,588 | $ | 72,886 | $ | 2,599 | $ | 35,430 | $ | 571,378 |
Recorded Investment | Unpaid Balance | Average Recorded Investment | Related Allowance | Interest Income Recognized | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 2,588 | $ | 2,795 | $ | 2,507 | $ | — | $ | 23 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 1,260 | 1,910 | 1,092 | — | 20 | ||||||||||||||
Commercial construction | 213 | 213 | 213 | — | 3 | ||||||||||||||
Commercial and industrial | 2,190 | 2,190 | 2,152 | — | 21 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 106 | 107 | 134 | — | 1 | ||||||||||||||
Total | $ | 6,357 | $ | 7,215 | $ | 6,098 | $ | — | $ | 68 | |||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 1,708 | $ | 1,709 | $ | 1,800 | $ | 137 | $ | 18 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 638 | 638 | 528 | 38 | 9 | ||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||
Commercial and industrial | 480 | 480 | 483 | 92 | 3 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 175 | 174 | 126 | 57 | 1 | ||||||||||||||
Total | $ | 3,001 | $ | 3,001 | $ | 2,937 | $ | 324 | $ | 31 | |||||||||
Total impaired loans: | |||||||||||||||||||
Residential real estate | $ | 4,296 | $ | 4,504 | $ | 4,307 | $ | 137 | $ | 41 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 1,898 | 2,548 | 1,620 | 38 | 29 | ||||||||||||||
Commercial construction | 213 | 213 | 213 | — | 3 | ||||||||||||||
Commercial and industrial | 2,670 | 2,670 | 2,635 | 92 | 24 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 281 | 281 | 260 | 57 | 2 | ||||||||||||||
Total | $ | 9,358 | $ | 10,216 | $ | 9,035 | $ | 324 | $ | 99 |
Recorded Investment | Unpaid Balance | Average Recorded Investment | Related Allowance | Interest Income Recognized | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 2,588 | $ | 2,795 | $ | 2,425 | $ | — | $ | 52 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 1,260 | 1,910 | 1,031 | — | 34 | ||||||||||||||
Commercial construction | 213 | 213 | 213 | — | 6 | ||||||||||||||
Commercial and industrial | 2,190 | 2,190 | 2,186 | — | 43 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 106 | 107 | 129 | — | 2 | ||||||||||||||
Total | $ | 6,357 | $ | 7,215 | $ | 5,984 | $ | — | $ | 137 | |||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 1,708 | $ | 1,709 | $ | 1,750 | $ | 137 | $ | 43 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 638 | 638 | 493 | 38 | 17 | ||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||
Commercial and industrial | 480 | 480 | 492 | 92 | 10 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 175 | 174 | 107 | 57 | 3 | ||||||||||||||
Total | $ | 3,001 | $ | 3,001 | $ | 2,842 | $ | 324 | $ | 73 | |||||||||
Total impaired loans: | |||||||||||||||||||
Residential real estate | $ | 4,296 | $ | 4,504 | $ | 4,175 | $ | 137 | $ | 95 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 1,898 | 2,548 | 1,524 | 38 | 51 | ||||||||||||||
Commercial construction | 213 | 213 | 213 | — | 6 | ||||||||||||||
Commercial and industrial | 2,670 | 2,670 | 2,678 | 92 | 53 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 281 | 281 | 236 | 57 | 5 | ||||||||||||||
Total | $ | 9,358 | $ | 10,216 | $ | 8,826 | $ | 324 | $ | 210 |
Recorded Investment | Unpaid Balance | Average Recorded Investment | Related Allowance | Interest Income Recognized | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 2,262 | $ | 2,402 | $ | 2,631 | $ | — | $ | 105 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 908 | 1,559 | 1,679 | — | 90 | ||||||||||||||
Commercial construction | 213 | 213 | 1,144 | — | 14 | ||||||||||||||
Commercial and industrial | 2,255 | 2,255 | 1,484 | — | 71 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 119 | 119 | 210 | — | 3 | ||||||||||||||
Total | $ | 5,757 | $ | 6,548 | $ | 7,148 | $ | — | $ | 283 | |||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 1,651 | $ | 1,651 | $ | 1,113 | $ | 145 | $ | 64 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 422 | 422 | 527 | 24 | 21 | ||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||
Commercial and industrial | 510 | 510 | 366 | 110 | 24 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 69 | 69 | 63 | 1 | 3 | ||||||||||||||
Total | $ | 2,652 | $ | 2,652 | $ | 2,069 | $ | 280 | $ | 112 | |||||||||
Total impaired loans: | |||||||||||||||||||
Residential real estate | $ | 3,913 | $ | 4,053 | $ | 3,744 | $ | 145 | $ | 169 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 1,330 | 1,981 | 2,206 | 24 | 111 | ||||||||||||||
Commercial construction | 213 | 213 | 1,144 | — | 14 | ||||||||||||||
Commercial and industrial | 2,765 | 2,765 | 1,850 | 110 | 95 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 188 | 188 | 273 | 1 | 6 | ||||||||||||||
Total | $ | 8,409 | $ | 9,200 | $ | 9,217 | $ | 280 | $ | 395 |
Recorded Investment | Unpaid Balance | Average Recorded Investment | Related Allowance | Interest Income Recognized | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 2,369 | $ | 2,541 | $ | 2,775 | $ | — | $ | 27 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 1,605 | 2,256 | 1,530 | — | 26 | ||||||||||||||
Commercial construction | 734 | 2,272 | 1,451 | — | 4 | ||||||||||||||
Commercial and industrial | 1,230 | 1,247 | 1,286 | — | 23 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 151 | 178 | 224 | — | — | ||||||||||||||
Total | $ | 6,089 | $ | 8,494 | $ | 7,266 | $ | — | $ | 80 | |||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 855 | $ | 855 | $ | 858 | $ | 45 | $ | 12 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 427 | 427 | 490 | 26 | 7 | ||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||
Commercial and industrial | 433 | 433 | 435 | 30 | 7 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 32 | 32 | 40 | 1 | 1 | ||||||||||||||
Total | $ | 1,747 | $ | 1,747 | $ | 1,823 | $ | 102 | $ | 27 | |||||||||
Total impaired loans: | |||||||||||||||||||
Residential real estate | $ | 3,224 | $ | 3,396 | $ | 3,633 | $ | 45 | $ | 39 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 2,032 | 2,683 | 2,020 | 26 | 33 | ||||||||||||||
Commercial construction | 734 | 2,272 | 1,451 | — | 4 | ||||||||||||||
Commercial and industrial | 1,663 | 1,680 | 1,721 | 30 | 30 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 183 | 210 | 264 | 1 | 1 | ||||||||||||||
Total | $ | 7,836 | $ | 10,241 | $ | 9,089 | $ | 102 | $ | 107 |
Recorded Investment | Unpaid Balance | Average Recorded Investment | Related Allowance | Interest Income Recognized | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 2,369 | $ | 2,541 | $ | 3,015 | $ | — | $ | 61 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 1,605 | 2,256 | 1,920 | — | 55 | ||||||||||||||
Commercial construction | 734 | 2,272 | 1,765 | — | 8 | ||||||||||||||
Commercial and industrial | 1,230 | 1,247 | 1,206 | — | 30 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 151 | 178 | 250 | — | 1 | ||||||||||||||
Total | $ | 6,089 | $ | 8,494 | $ | 8,156 | $ | — | $ | 155 | |||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||
Residential real estate | $ | 855 | $ | 855 | $ | 776 | $ | 45 | $ | 24 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 427 | 427 | 596 | 26 | 13 | ||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||
Commercial and industrial | 433 | 433 | 290 | 30 | 9 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 32 | 32 | 42 | 1 | 1 | ||||||||||||||
Total | $ | 1,747 | $ | 1,747 | $ | 1,704 | $ | 102 | $ | 47 | |||||||||
Total impaired loans: | |||||||||||||||||||
Residential real estate | $ | 3,224 | $ | 3,396 | $ | 3,791 | $ | 45 | $ | 85 | |||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Commercial real estate | 2,032 | 2,683 | 2,516 | 26 | 68 | ||||||||||||||
Commercial construction | 734 | 2,272 | 1,765 | — | 8 | ||||||||||||||
Commercial and industrial | 1,663 | 1,680 | 1,496 | 30 | 39 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Home equity | 183 | 210 | 292 | 1 | 2 | ||||||||||||||
Total | $ | 7,836 | $ | 10,241 | $ | 9,860 | $ | 102 | $ | 202 |
31-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Current | Total Loans | Loans on Nonaccrual | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Residential real estate | $ | 529 | $ | 47 | $ | 261 | $ | 837 | $ | 133,143 | $ | 133,980 | $ | 3,701 | |||||||||||||
Residential construction | — | — | — | — | 6,936 | 6,936 | — | ||||||||||||||||||||
Commercial real estate | 796 | 400 | 225 | 1,421 | 296,252 | 297,673 | 1,658 | ||||||||||||||||||||
Commercial construction | — | — | — | — | 50,077 | 50,077 | 213 | ||||||||||||||||||||
Commercial and industrial | 155 | 404 | 461 | 1,020 | 69,907 | 70,927 | 1,196 | ||||||||||||||||||||
Consumer | 15 | — | 1 | 16 | 2,630 | 2,646 | 15 | ||||||||||||||||||||
Home equity | 82 | — | 58 | 140 | 41,728 | 41,868 | 251 | ||||||||||||||||||||
Total | $ | 1,577 | $ | 851 | $ | 1,006 | $ | 3,434 | $ | 600,673 | $ | 604,107 | $ | 7,034 |
31-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Current | Total Loans | Loans on Nonaccrual | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Residential real estate | $ | 2,396 | $ | 514 | $ | 196 | $ | 3,106 | $ | 124,504 | $ | 127,610 | $ | 3,355 | |||||||||||||
Residential construction | — | — | — | — | 8,490 | 8,490 | — | ||||||||||||||||||||
Commercial real estate | 786 | 71 | 413 | 1,270 | 286,579 | 287,849 | 1,330 | ||||||||||||||||||||
Commercial construction | 245 | — | — | 245 | 47,883 | 48,128 | 213 | ||||||||||||||||||||
Commercial and industrial | 139 | 72 | 360 | 571 | 70,959 | 71,530 | 1,276 | ||||||||||||||||||||
Consumer | 9 | — | — | 9 | 2,507 | 2,516 | 18 | ||||||||||||||||||||
Home equity | 87 | 47 | 71 | 205 | 39,349 | 39,554 | 205 | ||||||||||||||||||||
Total | $ | 3,662 | $ | 704 | $ | 1,040 | $ | 5,406 | $ | 580,271 | $ | 585,677 | $ | 6,397 |
For the Six Months Ended June 30, 2016 | Number of Modifications | Recorded Investment Pre-Modification | Recorded Investment Post-Modification | ||||||||
(In Thousands) | |||||||||||
Residential real estate | 2 | $ | 432 | $ | 437 | ||||||
Residential construction | — | — | — | ||||||||
Commercial real estate | 1 | — | — | ||||||||
Commercial construction | — | 49 | 49 | ||||||||
Commercial and industrial | — | — | — | ||||||||
Consumer | — | — | — | ||||||||
Home equity | — | — | — | ||||||||
Total | 3 | $ | 481 | $ | 486 |
As of June 30, 2016 | As of December 31, 2015 | |||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||
(Dollars In Thousands) | ||||||||||||||
Residential real estate | 6 | $ | 1,274 | 4 | $ | 847 | ||||||||
Residential construction | — | — | — | — | ||||||||||
Commercial real estate | 3 | 355 | 3 | 442 | ||||||||||
Commercial construction | — | — | — | — | ||||||||||
Commercial and industrial | 2 | 228 | 3 | 236 | ||||||||||
Consumer | — | — | — | — | ||||||||||
Home equity | 2 | 67 | 2 | 69 | ||||||||||
Total | 13 | $ | 1,924 | 12 | $ | 1,594 |
Fair Value Measurements Using | |||||||||||||||
June 30, 2016 | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Determined Fair Value (Level 3) | ||||||||||||
Assets (market approach) | (Dollars In Thousands) | ||||||||||||||
Available-for-sale securities: | |||||||||||||||
Equity securities by industry type: | |||||||||||||||
Financial | $ | 406 | $ | 406 | $ | — | $ | — | |||||||
Total equity securities | $ | 406 | $ | 406 | $ | — | $ | — | |||||||
Fair Value Measurements Using | |||||||||||||||
December 31, 2015 | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Determined Fair Value (Level 3) | ||||||||||||
Assets (market approach) | (Dollars In Thousands) | ||||||||||||||
Available-for-sale securities: | |||||||||||||||
Equity securities by industry type: | |||||||||||||||
Financial | $ | 426 | $ | 426 | $ | — | $ | — | |||||||
Total equity securities | $ | 426 | $ | 426 | $ | — | $ | — |
Fair Value Measurements Using | ||||||||||||||||
June 30, 2016 | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Determined Fair Value (Level 3) | |||||||||||||
(Dollars In Thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Impaired loans | $ | 4,300 | $ | — | $ | — | $ | 4,300 | ||||||||
Other real estate owned | 1,061 | — | 1,061 | — | ||||||||||||
Loans held for sale | 596 | — | 596 | — | ||||||||||||
Mortgage servicing rights | 158 | — | 158 | — | ||||||||||||
Impaired loans are presented net of their related specific reserves of $324,000 and charge offs of $858,000 as of June 30, 2016. | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
December 31, 2015 | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Determined Fair Value (Level 3) | |||||||||||||
(Dollars In Thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Impaired loans | $ | 3,614 | $ | — | $ | — | $ | 3,614 | ||||||||
Other real estate owned | 1,435 | — | 1,435 | — | ||||||||||||
Loans held for sale | 296 | — | 296 | — | ||||||||||||
Mortgage servicing rights | 192 | — | 192 | — |
Fair Value Using | |||||||||||||||
Carrying Amount at June 30, 2016 | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Determined Fair Value (Level 3) | ||||||||||||
(Dollars In Thousands) | |||||||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 34,292 | $ | 34,292 | $ | — | $ | — | |||||||
Available-for-sale securities | 406 | 406 | — | — | |||||||||||
Held-to-maturity securities | 31,591 | — | 31,618 | — | |||||||||||
FHLB stock | 4,225 | — | 4,225 | — | |||||||||||
Loans held for sale | 596 | — | 596 | — | |||||||||||
Loans: | |||||||||||||||
Residential real estate | 133,890 | — | — | 136,620 | |||||||||||
Residential construction | 6,863 | — | — | 6,839 | |||||||||||
Commercial real estate | 294,940 | — | — | 297,644 | |||||||||||
Commercial construction | 49,262 | — | — | 49,496 | |||||||||||
Commercial and industrial | 70,108 | — | — | 70,339 | |||||||||||
Consumer | 2,616 | — | — | 2,825 | |||||||||||
Home equity | 41,617 | — | — | 41,622 | |||||||||||
Net loans | 599,296 | — | — | 605,385 | |||||||||||
Accrued interest and dividends receivable | 1,728 | — | 1,728 | — | |||||||||||
Mortgage servicing rights | 158 | — | 458 | — | |||||||||||
Financial liabilities: | |||||||||||||||
Deposits | $ | 540,634 | $ | — | $ | 541,744 | $ | — | |||||||
FHLB advances | 70,454 | — | 71,441 | — | |||||||||||
Accrued interest payable | 94 | — | 94 | — |
Fair Value Using | |||||||||||||||
Carrying Amount at December 31, 2015 | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Determined Fair Value (Level 3) | ||||||||||||
(Dollars In Thousands) | |||||||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 28,229 | $ | 28,229 | $ | — | $ | — | |||||||
Available-for-sale securities | 426 | 426 | — | — | |||||||||||
Held-to-maturity securities | 32,229 | — | 32,935 | — | |||||||||||
FHLB stock | 4,764 | — | 4,764 | — | |||||||||||
Loans held for sale | 296 | — | 296 | — | |||||||||||
Loans: | |||||||||||||||
Residential real estate | 127,551 | — | — | 129,514 | |||||||||||
Residential construction | 8,401 | — | — | 8,365 | |||||||||||
Commercial real estate | 285,135 | — | — | 283,566 | |||||||||||
Commercial construction | 47,345 | — | — | 47,480 | |||||||||||
Commercial and industrial | 70,674 | — | — | 71,090 | |||||||||||
Consumer | 2,485 | — | — | 2,657 | |||||||||||
Home equity | 39,368 | — | — | 39,273 | |||||||||||
Net loans | 580,959 | — | — | 581,945 | |||||||||||
Accrued interest and dividends receivable | 1,668 | — | 1,668 | — | |||||||||||
Mortgage servicing rights | 192 | — | 517 | — | |||||||||||
Financial liabilities: | |||||||||||||||
Deposits | $ | 507,109 | $ | — | $ | 507,493 | $ | — | |||||||
FHLB advances | 81,330 | — | 81,646 | — | |||||||||||
Accrued interest payable | 109 | — | 109 | — |
At or for the Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(Dollars In Thousands) | |||||||
Allowance for loan losses, beginning of period: | $ | 5,615 | $ | 4,927 | |||
Charged off loans: | |||||||
Residential real estate | (32 | ) | (85 | ) | |||
Construction | — | — | |||||
Commercial real estate | — | (6 | ) | ||||
Commercial and industrial | (19 | ) | (62 | ) | |||
Home equity | — | (16 | ) | ||||
Consumer | (36 | ) | (25 | ) | |||
Total charged off loans | (87 | ) | (194 | ) | |||
Recoveries on loans previously charged off: | |||||||
Residential real estate | 17 | — | |||||
Construction | — | 38 | |||||
Commercial real estate | — | 1 | |||||
Commercial and industrial | 18 | 4 | |||||
Home equity | 4 | 2 | |||||
Consumer | — | 14 | |||||
Total recoveries | 39 | 59 | |||||
Net loan charge offs | (48 | ) | (135 | ) | |||
Provision for loan losses | 176 | 607 | |||||
Allowance for loan losses, end of period | $ | 5,743 | $ | 5,399 | |||
Ratios: | |||||||
Net loan charge offs to total average loans | 0.01 | % | 0.02 | % | |||
Allowance for loan losses to total loans (1) | 0.95 | % | 0.94 | % | |||
Allowance for loan losses to nonperforming loans (2) | 81.63 | % | 85.47 | % | |||
Recoveries to charge offs | 44.83 | % | 30.41 | % | |||
Net loans charged off to allowance for loan losses | 0.84 | % | 2.50 | % |
(1) | Total loans includes net loans plus the allowance for loan losses, excludes deferred loan origination costs. |
(2) | Nonperforming loans consist of all loans 90 days or more past due and other loans which have been identified by the Company as presenting uncertainty with respect to the collectability of interest or principal. At June 30, 2016, the Company had thirteen troubled debt restructured loans totaling $1.9 million, of which seven totaling $991,000 were included in nonperforming loans. Six of the thirteen restructured loans totaling $933,000 were performing as modified and on accrual status. At June 30, 2015, the Company had thirteen troubled debt restructured loans totaling $1.8 million, of which eight totaling $495,000 were included in nonperforming loans. Five of the thirteen restructured loans totaling $1.3 were performing as modified and on accrual status. |
June 30, 2016 | December 31, 2015 | ||||||
(Dollars In Thousands) | |||||||
Nonaccrual loans (3): | |||||||
Residential real estate | $ | 3,701 | $ | 3,355 | |||
Commercial real estate | 1,658 | 1,330 | |||||
Commercial construction | 213 | 213 | |||||
Commercial and industrial | 1,196 | 1,276 | |||||
Home equity | 251 | 205 | |||||
Consumer | 15 | 18 | |||||
Total nonaccrual loans | 7,034 | 6,397 | |||||
Other real estate owned | 1,061 | 1,435 | |||||
Total nonperforming assets | $ | 8,095 | $ | 7,832 | |||
Ratios: | |||||||
Total nonperforming loans as a percentage of total loans (1) | 1.16 | % | 1.09 | % | |||
Total nonperforming assets as a percentage of total assets (2) | 1.15 | % | 1.15 | % |
(1) | Total loans equals net loans plus the allowance for loan losses, and excludes deferred loan origination costs. |
(2) | Nonperforming assets consist of OREO and nonperforming loans including nonperforming TDRs. Nonperforming loans consist of all loans 90 days or more past due and other loans which have been identified by the Company as presenting uncertainty with respect to the collectability of interest or principal. |
(3) | Loans are placed on nonaccrual status either when reasonable doubt exists as to the timely collection of principal and interest or when a loan becomes 90 days past due unless an evaluation clearly indicates that the loan is well-secured and in the process of collection. At June 30, 2016, there were no loans that were over 90 days delinquent and still accruing interest. |
June 30, 2016 | December 31, 2015 | ||||||||||||
Balance | Percent of Total Deposits | Balance | Percent of Total Deposits | ||||||||||
Deposit Type: | (Dollars In Thousands) | ||||||||||||
Demand deposits | $ | 116,463 | 21.5 | % | $ | 102,424 | 20.2 | % | |||||
NOW accounts | 46,967 | 8.7 | % | 45,228 | 8.9 | % | |||||||
Savings accounts | 54,872 | 10.2 | % | 52,359 | 10.3 | % | |||||||
Money market deposit accounts | 125,459 | 23.2 | % | 116,226 | 22.9 | % | |||||||
Total core deposits | 343,761 | 63.6 | % | 316,237 | 62.4 | % | |||||||
Certificates of deposit | 196,873 | 36.4 | % | 190,872 | 37.6 | % | |||||||
Total deposits | $ | 540,634 | 100.0 | % | $ | 507,109 | 100.0 | % |
For the Three Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Investments (1) | $ | 36,364 | $ | 619 | 6.85 | % | $ | 37,950 | $ | 619 | 6.54 | % | |||||||||
Loans: | |||||||||||||||||||||
Residential real estate | 134,369 | 1,236 | 3.70 | % | 124,010 | 1,191 | 3.85 | % | |||||||||||||
Home equity | 40,723 | 306 | 3.02 | % | 35,000 | 271 | 3.11 | % | |||||||||||||
Commercial real estate | 293,154 | 3,252 | 4.46 | % | 281,614 | 3,199 | 4.56 | % | |||||||||||||
Residential construction | 7,594 | 68 | 3.60 | % | 6,201 | 60 | 3.88 | % | |||||||||||||
Commercial construction | 49,660 | 532 | 4.31 | % | 37,023 | 381 | 4.13 | % | |||||||||||||
Consumer | 2,503 | 40 | 6.43 | % | 2,578 | 42 | 6.53 | % | |||||||||||||
Commercial and industrial | 69,421 | 709 | 4.11 | % | 72,600 | 733 | 4.05 | % | |||||||||||||
Total loans (2) | 597,424 | 6,143 | 4.14 | % | 559,026 | 5,877 | 4.22 | % | |||||||||||||
Other interest-earning assets | 24,067 | 28 | 0.47 | % | 28,686 | 20 | 0.28 | % | |||||||||||||
Total interest-earning assets | 657,855 | 6,790 | 4.15 | % | 625,662 | 6,516 | 4.18 | % | |||||||||||||
Non-interest earning assets | 42,364 | 42,674 | |||||||||||||||||||
Less: Allowance for loan losses | (5,666 | ) | (5,243 | ) | |||||||||||||||||
Total assets | $ | 694,553 | $ | 663,093 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Money market deposit accounts | $ | 119,210 | $ | 76 | 0.26 | % | $ | 122,166 | $ | 74 | 0.24 | % | |||||||||
Savings accounts (3) | 53,860 | 14 | 0.10 | % | 52,064 | 14 | 0.10 | % | |||||||||||||
NOW accounts | 46,389 | 75 | 0.65 | % | 42,775 | 72 | 0.68 | % | |||||||||||||
Certificates of deposit | 197,079 | 585 | 1.19 | % | 178,509 | 543 | 1.22 | % | |||||||||||||
Total interest-bearing deposits | 416,538 | 750 | 0.72 | % | 395,514 | 703 | 0.71 | % | |||||||||||||
Federal Home Loan Bank advances | 72,490 | 297 | 1.65 | % | 82,690 | 317 | 1.54 | % | |||||||||||||
Total interest-bearing borrowings | 72,490 | 297 | 1.65 | % | 82,690 | 317 | 1.54 | % | |||||||||||||
Total interest-bearing liabilities | 489,028 | 1,047 | 0.86 | % | 478,204 | 1,020 | 0.86 | % | |||||||||||||
Demand deposits | 114,439 | 95,348 | |||||||||||||||||||
Other non-interest bearing liabilities | 785 | 552 | |||||||||||||||||||
Total liabilities | 604,252 | 574,104 | |||||||||||||||||||
Total stockholders' equity | 90,301 | 88,989 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 694,553 | $ | 663,093 | |||||||||||||||||
Net interest-earning assets | $ | 168,827 | $ | 147,458 | |||||||||||||||||
Net interest income (fully-taxable equivalent) | 5,743 | 5,496 | |||||||||||||||||||
Less: tax equivalent adjustment (1) | (234 | ) | (243 | ) | |||||||||||||||||
Net interest income | $ | 5,509 | $ | 5,253 | |||||||||||||||||
Net interest rate spread (fully-taxable equivalent) (4) | 3.29 | % | 3.32 | % | |||||||||||||||||
Net interest margin (fully-taxable equivalent) (5) | 3.51 | % | 3.52 | % | |||||||||||||||||
Ratio of interest earning assets to interest-bearing liabilities | 134.52 | % | 130.84 | % |
(1) | Municipal securities income and net interest income are presented on a tax equivalent basis using a tax rate of 41%. The tax equivalent adjustment is deducted from the tax equivalent net interest income to agree to the amount reported on the statement of income. See 'Explanation of Use of Non-GAAP Financial Measurements'. |
(2) | Total loans excludes loans held for sale and includes nonperforming loans. |
(3) | Savings accounts include mortgagors' escrow deposits. |
(4) | Tax equivalent interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. See 'Explanation of Use of Non-GAAP Financial Measurements'. |
(5) | Tax equivalent net interest margin represents tax equivalent net interest income divided by total average interest-earning assets. |
For the Six Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Investments (1) | $ | 36,718 | $ | 1,243 | 6.81 | % | $ | 37,949 | $ | 1,239 | 6.58 | % | |||||||||
Loans: | |||||||||||||||||||||
Residential real estate | 132,978 | 2,450 | 3.71 | % | 122,627 | 2,341 | 3.85 | % | |||||||||||||
Home equity | 40,057 | 599 | 3.01 | % | 34,636 | 543 | 3.16 | % | |||||||||||||
Commercial real estate | 290,000 | 6,428 | 4.46 | % | 271,329 | 6,171 | 4.59 | % | |||||||||||||
Residential construction | 7,616 | 138 | 3.64 | % | 6,892 | 133 | 3.89 | % | |||||||||||||
Commercial construction | 48,922 | 1,045 | 4.30 | % | 36,413 | 750 | 4.15 | % | |||||||||||||
Consumer | 2,482 | 79 | 6.40 | % | 2,596 | 84 | 6.53 | % | |||||||||||||
Commercial and industrial | 69,598 | 1,457 | 4.21 | % | 72,950 | 1,459 | 4.03 | % | |||||||||||||
Total loans (2) | 591,653 | 12,196 | 4.15 | % | 547,443 | 11,481 | 4.23 | % | |||||||||||||
Other interest-earning assets | 24,296 | 60 | 0.50 | % | 31,166 | 39 | 0.25 | % | |||||||||||||
Total interest-earning assets | 652,667 | 13,499 | 4.16 | % | 616,558 | 12,759 | 4.17 | % | |||||||||||||
Non-interest earning assets | 42,209 | 42,205 | |||||||||||||||||||
Less: Allowance for loan losses | (5,648 | ) | (5,125 | ) | |||||||||||||||||
Total assets | $ | 689,228 | $ | 653,638 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Money market deposit accounts | $ | 118,628 | $ | 147 | 0.25 | % | $ | 119,375 | $ | 153 | 0.26 | % | |||||||||
Savings accounts (3) | 53,303 | 27 | 0.10 | % | 51,864 | 26 | 0.10 | % | |||||||||||||
NOW accounts | 46,368 | 146 | 0.63 | % | 42,535 | 143 | 0.68 | % | |||||||||||||
Certificates of deposit | 194,918 | 1,157 | 1.19 | % | 178,631 | 1,093 | 1.23 | % | |||||||||||||
Total interest-bearing deposits | 413,217 | 1,477 | 0.72 | % | 392,405 | 1,415 | 0.73 | % | |||||||||||||
Federal Home Loan Bank advances | 74,629 | 603 | 1.62 | % | 76,556 | 581 | 1.53 | % | |||||||||||||
Total interest-bearing liabilities | 487,846 | 2,080 | 0.86 | % | 468,961 | 1,996 | 0.86 | % | |||||||||||||
Demand deposits | 110,461 | 95,328 | |||||||||||||||||||
Other non-interest bearing liabilities | 794 | 525 | |||||||||||||||||||
Total liabilities | 599,101 | 564,814 | |||||||||||||||||||
Total stockholders' equity | 90,127 | 88,824 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 689,228 | $ | 653,638 | |||||||||||||||||
Net interest-earning assets | $ | 164,821 | $ | 147,597 | |||||||||||||||||
Net interest income (fully-taxable equivalent) | 11,419 | 10,763 | |||||||||||||||||||
Less: tax equivalent adjustment (1) | (470 | ) | (486 | ) | |||||||||||||||||
Net interest income | $ | 10,949 | $ | 10,277 | |||||||||||||||||
Net interest rate spread (fully-taxable equivalent) (4) | 3.30 | % | 3.31 | % | |||||||||||||||||
Net interest margin (fully-taxable equivalent) (5) | 3.52 | % | 3.52 | % | |||||||||||||||||
Ratio of interest earning assets to interest-bearing liabilities | 133.79 | % | 131.47 | % |
(1) | Municipal securities income and net interest income are presented on a tax equivalent basis using a tax rate of 41%. The tax equivalent adjustment is deducted from the tax equivalent net interest income to agree to the amount reported on the statement of income. See 'Explanation of Use of Non-GAAP Financial Measurements'. |
(2) | Total loans excludes loans held for sale and includes nonperforming loans. |
(3) | Savings accounts include mortgagors' escrow deposits. |
(4) | Tax equivalent interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. See 'Explanation of Use of Non-GAAP Financial Measurements'. |
(5) | Tax equivalent net interest margin represents tax equivalent net interest income divided by total average interest-earning assets. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | ||||||||||||||||||||||||||
Interest | Average Yield | Interest | Average Yield | Interest | Average Yield | Interest | Average Yield | ||||||||||||||||||||
Investment securities (no tax adjustment) | $ | 385 | 4.26 | % | $ | 376 | 3.97 | % | $ | 773 | 4.23 | % | $ | 753 | 4.00 | % | |||||||||||
Tax equivalent adjustment (1) | 234 | 243 | 470 | 486 | |||||||||||||||||||||||
Investment securities (tax equivalent basis) | $ | 619 | 6.85 | % | $ | 619 | 6.54 | % | $ | 1,243 | 6.81 | % | $ | 1,239 | 6.58 | % | |||||||||||
Net interest income (no tax adjustment) | $ | 5,509 | $ | 5,253 | $ | 10,949 | $ | 10,277 | |||||||||||||||||||
Tax equivalent adjustment (1) | 234 | 243 | 470 | 486 | |||||||||||||||||||||||
Net interest income (tax equivalent basis) | $ | 5,743 | $ | 5,496 | $ | 11,419 | $ | 10,763 | |||||||||||||||||||
Interest rate spread (no tax adjustment) | 3.15 | % | 3.17 | % | 3.16 | % | 3.16 | % | |||||||||||||||||||
Net interest margin (no tax adjustment) | 3.37 | % | 3.37 | % | 3.37 | % | 3.36 | % | |||||||||||||||||||
(1) The tax equivalent adjustment is based on a combined federal and state tax rate of 41% for all periods presented. |
Minimum to be Well Capitalized Under | ||||||||||||||||||||
Minimum for Capital | Prompt Corrective | |||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||
As of June 30, 2016 | ||||||||||||||||||||
Total Capital to Risk Weighted Assets | ||||||||||||||||||||
Company | $ | 94,766 | 16.3 | % | $ | 46,594 | 8.0 | % | N/A | N/A | ||||||||||
Bank | $ | 82,732 | 14.2 | % | $ | 46,531 | 8.0 | % | $ | 58,164 | 10.0 | % | ||||||||
Tier 1 Capital to Risk Weighted Assets | ||||||||||||||||||||
Company | $ | 89,007 | 15.3 | % | $ | 34,945 | 6.0 | % | N/A | N/A | ||||||||||
Bank | $ | 76,973 | 13.2 | % | $ | 34,898 | 6.0 | % | $ | 46,531 | 8.0 | % | ||||||||
Tier 1 Capital to Average Assets | ||||||||||||||||||||
Company | $ | 89,007 | 12.8 | % | $ | 27,753 | 4.0 | % | N/A | N/A | ||||||||||
Bank | $ | 76,973 | 11.1 | % | $ | 27,712 | 4.0 | % | $ | 34,639 | 5.0 | % | ||||||||
Common Equity Tier 1 Capital to Risk Weighted Assets | ||||||||||||||||||||
Company | $ | 89,007 | 15.3 | % | $ | 26,208 | 4.5 | % | N/A | N/A | ||||||||||
Bank | $ | 76,973 | 13.2 | % | $ | 26,174 | 4.5 | % | $ | 37,806 | 6.5 | % |
Minimum to be Well Capitalized Under | ||||||||||||||||||||
Minimum for Capital | Prompt Corrective | |||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||
As of December 31, 2015 | ||||||||||||||||||||
Total Capital to Risk Weighted Assets | ||||||||||||||||||||
Company | $ | 93,862 | 16.5 | % | $ | 45,560 | 8.0 | % | N/A | N/A | ||||||||||
Bank | $ | 83,502 | 14.7 | % | $ | 45,458 | 8.0 | % | $ | 56,822 | 10.0 | % | ||||||||
Tier 1 Capital to Risk Weighted Assets | ||||||||||||||||||||
Company | $ | 88,222 | 15.5 | % | $ | 34,170 | 6.0 | % | N/A | N/A | ||||||||||
Bank | $ | 77,862 | 13.7 | % | $ | 34,093 | 6.0 | % | $ | 45,458 | 8.0 | % | ||||||||
Tier 1 Capital to Average Assets | ||||||||||||||||||||
Company | $ | 88,222 | 12.8 | % | $ | 27,525 | 4.0 | % | N/A | N/A | ||||||||||
Bank | $ | 77,862 | 11.3 | % | $ | 27,492 | 4.0 | % | $ | 34,365 | 5.0 | % | ||||||||
Common Equity Tier 1 Capital Ratio | ||||||||||||||||||||
Company | $ | 88,222 | 15.5 | % | $ | 25,627 | 4.5 | % | N/A | N/A | ||||||||||
Bank | $ | 77,862 | 13.7 | % | $ | 25,570 | 4.5 | % | $ | 36,934 | 6.5 | % |
June 30, 2016 | December 31, 2015 | ||||||
(In Thousands) | |||||||
Total equity determined under GAAP | $ | 89,753 | $ | 89,274 | |||
Net unrealized gain on available-for-sale securities, net of tax | (24 | ) | — | ||||
Disallowed mortgage servicing assets | — | — | |||||
Disallowed deferred tax assets | (722 | ) | (1,052 | ) | |||
Tier 1 Capital | 89,007 | 88,222 | |||||
Allowable allowance for loan losses | 5,742 | 5,615 | |||||
Unrealized gain on available-for-sale equity securities, net of tax | 17 | 25 | |||||
Total regulatory capital | $ | 94,766 | $ | 93,862 |
June 30, 2016 | December 31, 2015 | ||||||
Commitments to grant loans | $ | 17,663 | $ | 16,188 | |||
Unfunded commitments for construction loans | 17,321 | 20,963 | |||||
Unfunded commitments under lines of credit | 91,393 | 88,342 | |||||
Standby letters of credit | 1,268 | 976 |
Changes in Interest Rates (Basis Points) | Percentage Change in Estimated Net Interest Income over Twelve Months |
Up 500 - 24 months | (1.8)% |
Up 400 - 24 months | (1.3)% |
Up 300 - 12 months shock | (3.0)% |
Up 200 - 12 months | (1.3)% |
Up 100 - 12 months shock | (0.7)% |
Base | |
Down 100 - 12 months | (1.7)% |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid Per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||
April 1-30, 2016 | — | $ | — | — | 260,000 | |||||||||
May 1-31, 2016 | — | — | — | 260,000 | ||||||||||
June 1-30, 2016 | — | — | — | 260,000 | ||||||||||
Total | — | $ | — | $ | — |
2.1 | Agreement and Plan of Merger dated April 4, 2016 (1) |
3.1 | Articles of Incorporation of Chicopee Bancorp, Inc. (2) |
3.2 | Bylaws of Chicopee Bancorp, Inc. (3) |
4.0 | Stock Certificate of Chicopee Bancorp, Inc. (2) |
10.1 | Form of Voting Agreement (1) |
10.2 | Employment Agreement between William J. Wagner and Westfield Financial, Inc. (1) |
10.3 | Employment Agreement between William J. Wagner and Westfield Bank (3) |
10.4 | Settlement Agreement by and among William J. Wagner and Westfield Financial, Inc., Westfield Bank, Chicopee Bancorp, Inc. and Chicopee Savings Bank (1) |
10.5 | Settlement Agreement by and among Russell J. Omer J. Wagner and Westfield Financial, Inc., Westfield Bank, Chicopee Bancorp, Inc. and Chicopee Savings Bank (1) |
10.6 | Settlement Agreement by and among Guida R. Sajdak and Westfield Financial, Inc., Westfield Bank, Chicopee Bancorp, Inc. and Chicopee Savings Bank (1) |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer |
32.0 | Section 1350 Certification |
101.0 | The following financial information from Chicopee Bancorp Inc.'s Quarterly Report on Form 10-Q for the six months ended June 30, 2016, formatted in XBRL (Extensible Business Reporting Language) includes: (i) the Consolidated Statements of Financial Condition as of June 30, 2016 and December 31, 2015, (ii) the Consolidated Statements of Income for the three and six months ended June 30, 2016 and 2015, (iii) the Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2016 and 2015, (iv) the Consolidated Statements of Changes in Stockholders' Equity for each of the six months ended June 30, 2016 and 2015, (v) the Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015, and (vi) the Notes to Consolidated Financial Statements, tagged in summary and detail. |
(1) | Incorporated by reference to the Company's Current Report on Form 8-K filed with the SEC on April 7, 2016. |
(2) | Incorporated herein by reference to the Exhibits to the Company’s Registration Statement on Form S-1 (File No. 333-132512), as amended, initially filed with the Securities and Exchange Commission on March 17, 2006. |
(3) | Incorporated herein by reference to Exhibit 3.2 to the Company’s 8-K (File No. 000-51996) filed with the Securities and Exchange Commission on August 1, 2007. |
CHICOPEE BANCORP, INC. | |||
Dated: August 8, 2016 | By: | /s/ William J. Wagner | |
William J. Wagner | |||
Chairman of the Board, President and | |||
Chief Executive Officer | |||
(principal executive officer) | |||
Dated: August 8, 2016 | /s/ Guida R. Sajdak | ||
By: | Guida R. Sajdak | ||
Senior Vice President, | |||
Chief Financial Officer and Treasurer | |||
(principal financial and chief accounting officer) |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 8, 2016 |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company as of and for the period covered by the Report. |
/s/ William J. Wagner | ||
William J. Wagner | ||
President and Chief Executive Officer | ||
August 8, 2016 | ||
/s/ Guida R. Sajdak | ||
Guida R. Sajdak | ||
Senior Vice President, Chief Financial Officer and Treasurer | ||
August 8, 2016 |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 02, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CHICOPEE BANCORP, INC. | |
Entity Central Index Key | 0001355786 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Trading Symbol | CBNK | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,222,339 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Held-to-maturity securities, fair value | $ 31,618 | $ 32,935 |
Loans receivable, allowance for loan losses | $ 5,743 | $ 5,615 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 7,439,368 | 7,439,368 |
Common stock, outstanding (in shares) | 5,222,339 | 5,210,739 |
Treasury stock (in shares) | 2,217,029 | 2,228,629 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 221 | $ 742 | $ 918 | $ 1,056 |
Other comprehensive (loss) income, net of tax | ||||
Unrealized holding (losses) gains arising during period on securities available-for-sale | (17) | 1 | (20) | (14) |
Tax effect | 6 | 0 | 7 | 5 |
Total other comprehensive (loss) income, net of tax | (11) | 1 | (13) | (9) |
Total comprehensive income | $ 210 | $ 743 | $ 905 | $ 1,047 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Apr. 18, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Stockholders' Equity [Abstract] | |||||
Unrealized gain on available-for-sale securities, tax | $ 6 | $ 0 | $ 7 | $ 5 | |
Stock options exercised, shares | 11,600 | 800 | |||
Cash dividends declared (in dollars per share) | $ 0.09 | $ 0.18 | $ 0.14 |
Basis of Presentation |
6 Months Ended |
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Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Chicopee Bancorp, Inc. (the “Corporation”) has no significant assets other than all of the outstanding shares of its wholly-owned subsidiaries, Chicopee Savings Bank (the “Bank”) and Chicopee Funding Corporation (collectively, the “Company”). The Corporation was formed on March 14, 2006 and became the holding company for the Bank upon completion of the Bank’s conversion from a mutual savings bank to a stock savings bank. The conversion of the Bank was completed on July 19, 2006. The accounts of the Bank include its wholly-owned subsidiaries and a 99% owned subsidiary. The consolidated financial statements of the Company as of June 30, 2016 and for the periods ended June 30, 2016 and 2015 included herein are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the financial condition, results of operations, changes in stockholders’ equity and cash flows, as of and for the periods covered herein, have been made. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K. The results for the six months ended June 30, 2016 are not necessarily indicative of the operating results for a full year. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the adjusted weighted-average number of common shares outstanding during the period. The adjusted outstanding common shares equals the gross number of common shares issued less average treasury shares, unallocated shares of the Chicopee Savings Bank Employee Stock Ownership Plan (“ESOP”), and average dilutive restricted stock awards under the 2007 Equity Incentive Plan. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and certain stock awards and are determined using the treasury stock method. Earnings per share have been computed based on the following:
There were 634,000 stock options that were not included in the calculation of diluted earnings per share for the six months ended June 30, 2016 because the effect was anti-dilutive. There were 87,000 stock options that were not included in the calculation of diluted earnings per share for the six months ended June 30, 2015 because the effect was anti-dilutive. |
Equity Incentive Plan |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plan | Equity Incentive Plan Stock Options The Company’s 2007 Equity Incentive Plan (the “Plan”) was approved by the Company’s stockholders at the annual meeting of the Company’s stockholders on May 30, 2007. The Plan provides that the Company may grant options to directors, officers and employees for up to 743,936 shares of common stock. Both incentive stock options and non-qualified stock options may be granted under the Plan. The exercise price for each option is equal to the market price of the Company’s stock on the date of grant and the maximum term of each option is ten years. The stock options vest over five years in five equal installments on each anniversary of the date of grant. The Company recognizes compensation expense over the vesting period, based on the grant-date fair value of the options granted. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. There were no stock options granted during the six month periods ended June 30, 2016 or 2015. A summary of options under the Plan as of June 30, 2016, and changes during the six months ended June 30, 2016, is as follows:
The weighted-average grant-date fair value of the options outstanding and exercisable at June 30, 2016 was $3.81 and $3.83, respectively. For the six months ended June 30, 2016, share based compensation expense applicable to options granted under the Plan was $51,000. For the six months ended June 30, 2015, share based compensation expense applicable to options granted under the Plan was $53,000. As of June 30, 2016, unrecognized stock-based compensation expense related to non-vested options amounted to $110,000. This amount is expected to be recognized over a period of 1.31 years. Stock Awards The Plan provides that the Company may grant stock awards to its directors, officers and employees for up to 297,574 shares of common stock. The stock awards vest 20% per year beginning on the first anniversary of the date of grant. The fair market value of the stock awards, based on the market price at the date of grant, is recorded as unearned compensation. Unearned compensation is amortized over the applicable vesting period. The Company recorded compensation cost related to stock awards of approximately $1,000 and $3,000 for each of the six month periods ended June 30, 2016 and 2015, respectively. There were no stock awards granted prior to July 1, 2007. There were no stock awards granted by the Company during the six months ended June 30, 2016 and 2015. The Company granted 2,000 stock awards during the year ended December 31, 2011 with a grant price of $14.08. As of June 30, 2016, there was no unrecognized stock-based compensation expense related to non-vested restricted stock awards. A summary of the status of the Company’s stock awards as of June 30, 2016, and changes during the six months ended June 30, 2016, is as follows:
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Long-term Incentive Plan |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-term Incentive Plan | Long-term Incentive Plan On March 13, 2012, the Company adopted the Chicopee Bancorp, Inc. 2012 Phantom Stock Unit Award and Long-Term Incentive Plan (the “Phantom Stock Plan”), effective January 1, 2012, to promote the long-term financial success of the Company and its subsidiaries by providing a means to attract, retain and reward individuals who contribute to such success and to further align their interest with those of the Company’s stockholders. A total of 150,000 phantom stock units are available for awards under the Phantom Stock Plan. The only awards that may be granted under the Phantom Stock Plan are Phantom Stock Units. A Phantom Stock Unit represents the right to receive a cash payment on the determination date equal to the book value of a share of the Company’s stock on the determination date. The settlement of a Phantom Stock Unit on the determination date shall be in cash. Unless the Compensation Committee of the Board of Directors of the Company determines otherwise, the required period of service for full vesting will be three years. The Company's total expense under the Phantom Stock Plan for the six months ended June 30, 2016 and 2015, was $140,000 and $13,000, respectively. There were 11,365 phantom stock units granted during the six months ended June 30, 2016. There were no phantom stock units granted during the six months ended June 30, 2015. As of June 30, 2016 and December 31, 2015, 14,308 and 7,016 phantom stock units were outstanding. |
Recent Accounting Pronouncements (Applicable to the Company) |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements (Applicable to the Company) | Recent Accounting Pronouncements (Applicable to the Company) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU was issued to clarify the principles for recognizing revenue and to develop a common revenue standard. The effective date for this ASU was deferred to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the potential impact of the ASU on its consolidated financial statements. In June 2014, FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The ASU was issued because current U.S. GAAP does not contain explicit guidance on how to account for share-based payments when a performance target could be achieved after the requisite service period. The ASU was effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The ASU did not have a material effect on the Company's consolidated financial statements. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This ASU changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. The ASU also changes certain disclosure requirements and other aspects of U.S. GAAP, including a requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The ASU will not have a material effect on the Company’s consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements. In March 2016, FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU was issued to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model, requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as available for sale. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the potential impact of the ASU on its consolidated financial statements. |
Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The following tables set forth, at the dates indicated, information regarding the amortized cost and fair value, with gross unrealized gains and losses, of the Company's investment securities:
The amortized cost and estimated fair value of debt securities by contractual maturity at June 30, 2016 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. The collateralized mortgage obligations are allocated to maturity categories according to final maturity date.
There were no sales of available-for-sale securities during the six months ended June 30, 2016 and 2015. Management conducts, at least on a monthly basis, a review of its investment portfolio including available-for-sale and held-to-maturity securities to determine if the fair value of any security has declined below its cost or amortized cost and whether such security is other-than-temporarily impaired. Unrealized Losses on Investment Securities There were no continuous unrealized losses as of June 30, 2016 and December 31, 2015. Non-Marketable Securities The Company is a member of the Federal Home Loan Bank of Boston (“FHLB”). The FHLB is a cooperatively owned wholesale bank for housing and finance in the six New England States. Its mission is to support the residential mortgage and community development lending activities of its members, which include over 450 financial institutions across New England. As a requirement of membership in the FHLB, the Company must own a minimum required amount of FHLB stock, calculated periodically based primarily on the Company’s level of borrowings from the FHLB. The Company uses the FHLB for much of its wholesale funding needs. The Company’s investment in FHLB stock totaled $4.2 million and $4.8 million at June 30, 2016 and December 31, 2015, respectively. FHLB stock is a non-marketable equity security and therefore is reported at cost, which equals par value. Shares held in excess of the minimum required amount are generally redeemable at par value. For each of the six months ended June 30, 2016 and 2015, the Company received $83,000 and $35,000, respectively, in dividend income from its FHLB stock investment. The Company periodically evaluates its investment in FHLB stock for impairment based on, among other factors, the capital adequacy of the FHLB and its overall financial condition. There have not been any impairment losses recorded through June 30, 2016 and the Company will continue to monitor its FHLB stock investment. Banker’s Bank Northeast (BBN) stock is reported under other assets in the consolidated statement of financial condition and is carried at cost. The BBN stock investment is evaluated for impairment based on an estimate of the ultimate recovery to par value. As of June 30, 2016 and December 31, 2015, the Company’s investment in BBN totaled $183,000. There have not been any impairment losses recorded through June 30, 2016 and the Company will continue to monitor its BBN stock investment. |
Loans and Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses The following table sets forth the composition of the Company’s loan portfolio in dollar amounts and as a percentage of the total loan portfolio at the dates indicated.
The Company has transferred a portion of its originated commercial real estate and commercial loans to participating lenders. The amounts transferred have been accounted for as sales and therefore not included in the Company’s consolidated statements of financial condition. The Company and participating lenders share proportionally, based on participating agreements, any gains or losses that may result from the borrowers lack of compliance with the terms of the loan. The Company continues to service the loans on behalf of the participating lenders. At June 30, 2016 and December 31, 2015, the Company was servicing loans for participating lenders totaling $20.9 million and $23.7 million, respectively. In accordance with the Company’s asset/liability management strategy and in an effort to reduce interest rate risk, the Company continues to sell fixed rate, low coupon residential real estate loans to the secondary market. The Company sold $819,000 and $1.2 million in residential real estate loans to the secondary market during the six month periods ended June 30, 2016 and 2015, respectively. The unpaid principal balance of residential real estate loans serviced for others was $79.8 million at June 30, 2016 and $82.1 million at December 31, 2015. Management expects to continue to retain servicing rights on all loans written and sold in the secondary market. Credit Quality To evaluate the risk in the loan portfolio, internal credit risk ratings are used for the following loan classes: commercial real estate, commercial construction and commercial and industrial. The risks evaluated in determining an adequate credit risk rating include the financial strength of the borrower and the collateral securing the loan. Commercial loans, including commercial and industrial, commercial real estate and commercial construction loans, are rated from one through nine. Credit risk ratings one through five are considered pass ratings. Classified assets include credit risk ratings of special mention through loss. At least quarterly, classified loans are reviewed by management and by an independent third party. Credit risk ratings are updated as soon as information is obtained that indicates a change in the credit risk rating may be warranted. Residential real estate and residential construction loans are categorized into performing and nonperforming risk ratings. They are considered nonperforming when they are 90 days past due or have not returned to accrual status. Nonperforming residential loans are individually evaluated for impairment. Consumer loans are considered nonperforming when they are 90 days past due or have not returned to accrual status. Consumer loans are not individually evaluated for impairment. Home equity loans are considered nonperforming when they are 90 days past due or have not returned to accrual status. Each nonperforming home equity loan is individually evaluated for impairment. The following describes the credit risk ratings for classified assets: Special mention. Assets that do not currently expose the Company to sufficient risk to warrant classification in one of the following categories but possess potential weaknesses. Substandard. Assets that have one or more defined weaknesses and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Non-accruing loans are typically classified as substandard. Doubtful. Assets that have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. Loss. Assets rated in this category are considered uncollectible and are charged off against the allowance for loan losses. The following table presents an analysis of total loans segregated by risk rating and segment as of June 30, 2016:
(1) At June 30, 2016, the Company had a total of $252,000 in residential real estate loans in the process of foreclosure. The following table presents an analysis of total loans segregated by risk rating and segment as of December 31, 2015:
(1) At December 31, 2015, the Company had a total of $63,000 in residential real estate loans in the process of foreclosure. 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 uncollectibility 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. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and allocated components, as further described below. Loans charged off Commercial and industrial loans. Loans past due more than 120 days are considered for one of three options: charge off the balance of the loan, charge off any excess balance over the fair value of the collateral securing the loan, or continue collection efforts subject to a monthly review until either the balance is collected or a charge-off recommendation can be reasonably made. Commercial real estate loans. Commercial real estate loans that are delinquent 90 days or more or are on nonaccrual status are classified nonperforming. An updated appraisal may be obtained when the loan is 90 days or more delinquent. Any outstanding balance in excess of the fair value of the property, less cost to sell, may be charged-off against the allowance for loan losses. Residential loans. In general, one-to-four family residential loans and home equity loans that are delinquent 90 days or more or are on nonaccrual status are classified nonperforming. An updated appraisal is obtained when the loan is 90 days or more delinquent. Any outstanding balance in excess of the fair value of the property, less cost to sell, is charged-off against the allowance for loan losses. Consumer loans. Generally all loans are automatically considered for charge-off at 90 to 120 days past due from the contractual due date, unless there is liquid collateral in hand sufficient to repay principal and interest in full. General Component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following portfolio segments: residential real estate, residential construction, commercial real estate, commercial and industrial, commercial construction, consumer and home equity. Management uses an average of historical losses based on a time frame appropriate to capture relevant loss data for each portfolio segment. Management deems 48 months to be an appropriate time frame on which to base historical losses for each portfolio segment. This historical loss factor is adjusted for qualitative factors for each portfolio segment including, but not limited to: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and changes in lending policies, experience, ability, depth of lending management and staff; and national and local economic conditions. Management follows a similar process to estimate its liability for off-balance-sheet commitments to extend credit. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate loans enable the borrower to purchase or refinance existing homes, most of which serve as the primary residence of the owner. Repayment is dependent on the credit quality of the borrower. Factors attributable to failure of repayment may include a weakened economy and/or unemployment, as well as possible personal considerations. While management anticipates adjustable-rate mortgages will better offset the potential adverse effects of an increase in interest rates as compared to fixed-rate mortgages, the increased mortgage payments required of adjustable-rate loan borrowers in a rising interest rate environment could cause an increase in delinquencies and defaults. The marketability of the underlying property also may be adversely affected in a high interest rate environment. Commercial real estate loans are secured by commercial real estate and residential investment real estate and generally have larger balances and involve a greater degree of risk than one- to four-family residential mortgage loans. Risks in commercial real estate and residential investment lending are borrower’s creditworthiness and the feasibility and cash flow potential of the project. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a greater extent than residential real estate loans to adverse conditions in the real estate market or the economy. Commercial and residential construction loans are generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. Commercial and industrial loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself as well as national and local economic conditions. Further, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value. Consumer and home equity loans may entail greater risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly. In such cases, repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and the remaining deficiency often does not warrant further substantial collection efforts against the borrower. In addition, consumer loan collections depend on the borrower’s continuing financial stability, and therefore are more likely to be adversely affected by job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. The Company does not disaggregate its portfolio segments into loan classes. Allocated Component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for residential real estate, home equity loans, commercial real estate and commercial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. The Company recognizes the change in present value attributable to the passage of time as provision for loan losses. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment, and the resulting allowance is reported as the general component, as described above. Loans are 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. The Company may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment evaluation, except for home equity loans. During the six months ended June 30, 2016, there were no changes in the Company's allowance methodology related to the qualitative or quantitative factors. The following table presents the allowance for loan losses and select loan information as of and for the three months ended June 30, 2016:
The following table presents the allowance for loan losses and select loan information as of and for the six months ended June 30, 2016:
The following table presents the allowance for loan losses and select loan information as of and for the year ended December 31, 2015:
The following table presents the allowance for loan losses and select loan information as of and for the three months ended June 30, 2015:
The following table presents the allowance for loan losses and select loan information as of and for the six months ended June 30, 2015:
Impairment The following table presents a summary of information pertaining to impaired loans by segment as of and for the three months ended June 30, 2016:
The $9.4 million of impaired loans include $7.0 million of non-accrual loans. The remaining impaired loans are TDRs or loans for which the Company believes, 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. The following table presents a summary of information pertaining to impaired loans by segment as of and for the six months ended June 30, 2016:
The $9.4 million of impaired loans include $7.0 million of non-accrual loans. The remaining impaired loans are TDRs or loans for which the Company believes, 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. The following table presents a summary of information pertaining to impaired loans by segment as of and for the year ended December 31, 2015:
The $8.4 million of impaired loans include $6.4 million of non-accrual loans. The remaining impaired loans are TDRs or loans for which the Company believes, 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. The following table presents a summary of information pertaining to impaired loans by segment as of and for the three months ended June 30, 2015:
The $7.8 million of impaired loans include $6.3 million of non-accrual loans. The remaining impaired loans are TDRs or loans for which the Company believes, 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. The following table presents a summary of information pertaining to impaired loans by segment as of and for the six months ended June 30, 2015:
Delinquency and Nonaccrual All loan segments greater than 30 days past due are considered delinquent. The Company calculates the number of days past due based on a 30 day month. Management continuously monitors delinquency and nonaccrual levels and trends. It is the Company’s policy to discontinue the accrual of interest on all loan classes when principal or interest payments are delinquent 90 days or more. The accrual of interest is also discontinued for impaired loans that are delinquent 90 days or more or at management’s discretion. All interest accrued, but not collected, for all loan classes, including impaired loans that are placed on nonaccrual or charged off, is reversed against interest income. Interest recognized on these loans is limited to interest payments received until qualifying for return to accrual. All loan classes are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table presents an aging analysis of past due loans and non-accrual loans at June 30, 2016:
The following table presents an aging analysis of past due loans and non-accrual loans at December 31, 2015:
Troubled Debt Restructuring (TDR) TDR loans consist of loans where the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession to the borrower that the Company would not otherwise consider. TDR loans can take the form of a reduction in the stated interest rate, receipts of assets from a debtor in partial or full satisfaction of a loan, the extension of the maturity date, or the reduction of either the interest or principal. Once a loan has been identified as a TDR, it is classified as impaired and will continue to be reported as a TDR until the loan is paid in full. In the normal course of business, the Company may modify a loan for a credit worthy borrower where the modified loan is not considered a TDR. In these cases, the modified terms are consistent with loan terms available to credit worthy borrowers and within normal loan pricing. The modifications to such loans are done according to existing underwriting standards which include review of historical financial statements, including current interim information if available, and an analysis of the borrower’s performance and projections to assess repayment ability going forward. During the six months ended June 30, 2016, the Company had three TDRs that had defaulted and had been modified within the previous twelve month period. During the six months ended June 30, 2015, the Company had no TDRs that had defaulted and had been modified within the previous twelve month period. TDR loans are considered defaulted at 90 days past due. The Company did not have any new TDR activity during the three months ended June 30, 2016, or during the three and six months ended June 30, 2015. The following table provides new TDR activity by segment during the period indicated:
The following is a summary of TDR loans by segment as of the dates indicated:
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Fair Value Measurements and Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures Accounting Standards Codification ("ASC") Topic 825, "Financial Instruments," requires disclosures of fair value information about financial instruments, whether or not recognized in the statement of financial condition, if the fair values can be reasonably determined. Certain assets and liabilities are recorded at fair value to provide additional insight into the Company's quality of earnings. Some of these assets and liabilities are measured on a recurring basis while others are measured on a nonrecurring basis, with the determination based upon applicable existing accounting pronouncements. For example, available-for-sale securities are recorded at fair value on a recurring basis. Other assets, such as mortgage servicing rights, loans held for sale, and impaired loans, are recorded at fair value on a nonrecurring basis using the lower of cost or market methodology to determine impairment of individual assets. The Company groups assets and liabilities which are recorded at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Levels within the fair value hierarchy are based on the lowest level of input that is significant to the fair value measurement (with Level 1 considered highest and Level 3 considered lowest). A brief description of each level follows. Level 1 - Valuation is based upon quoted prices for identical instruments in active markets. Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation includes use of discounted cash flow models and similar techniques. The fair value methods and assumptions are set forth below. Cash and cash equivalents. The carrying amounts of cash equivalents, due from banks and federal funds sold approximate their relative fair values. As such, the Company classifies these financial instruments as Level 1. Held-to-maturity and non-marketable securities. The fair values of held-to-maturity securities are estimated by independent providers using matrix pricing and quoted market prices for similar securities. In obtaining such valuation information from third parties, the Company has evaluated their valuation methodologies used to develop the fair values in order to determine whether the valuations are representative of an exit price in the Company's principal markets. The Company's principal markets for its securities portfolios are the secondary institutional markets, with an exit price that is predominately reflective of bid level pricing in those markets. Fair values are calculated based on the value of one unit without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications, or estimated transaction costs. If these considerations had been incorporated into the fair value estimates, the aggregate fair value could have been changed. The carrying values of non-marketable securities approximate fair values. As such, the Company classifies held-to-maturity and non-marketable securities as Level 2. Available-for-sale securities. Fair value of securities are primarily measured using unadjusted information from an independent pricing service. The securities measured at fair value in Level 1 are based on quoted market prices in an active exchange market. These securities include marketable equity securities. Loans. Fair values are estimated for portfolios of loans with similar financial characteristics. The fair values of performing loans are calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest risk inherent in the loan. The estimates of maturity are based on the Company's historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions, and the effects of estimated prepayments. Assumptions regarding risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. Management has made estimates of fair value presented below that would be indicative of the value negotiated in an actual sale. As such, the Company classifies loans as Level 3. Fair values of impaired loans are based on estimated cash flows and are discounted using a rate commensurate with the risk associated with the estimated cash flows, or if collateral dependent, discounted to the appraised value of the collateral, less costs to sell. Loans held for sale. Loans held for sale are recorded at the lower of carrying value or fair value. The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies loans held for sale as nonrecurring Level 2. Other real estate owned ("OREO"). Real estate acquired through foreclosure is recorded at fair value. The fair value of OREO is based on property appraisals and an analysis of similar properties currently available. As such, the Company records OREO as nonrecurring Level 2. Mortgage servicing rights. Mortgage servicing rights represent the value associated with servicing residential mortgage loans. Servicing assets and servicing liabilities are reported using the amortization method and compared to fair value for impairment. In evaluating the fair values of the mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. As such, the Company classifies mortgage servicing rights as Level 2. Accrued interest and dividends receivable. The fair value estimate of this financial instrument approximates the carrying value as this financial instrument has a short maturity. It is the Company's policy to stop accruing interest on loans for which it is probable that the interest is not collectable. Therefore, this financial instrument has been adjusted for estimated credit loss. As such, the Company classifies accrued interest and dividends receivable as Level 2. Deposits. The fair value of deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposits compared to the cost of borrowing funds in the market. If that value were considered, the fair value of the Company's net assets could increase. As such, the Company classifies deposits as Level 2. Borrowed funds. The fair value of borrowed funds is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently available for borrowings of similar remaining maturities. As such, the Company classifies borrowed funds as Level 2. Accrued interest payable. The fair value estimate approximates the carrying amount as this financial instrument has a short maturity. As such, the Company classifies accrued interest payable as Level 2. Off-balance-sheet instruments. Off-balance-sheet instruments include loan commitments. Fair values for loan commitments have not been presented as the future revenue derived from such financial instruments is not significant. Limitations. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These values do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on Management's judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial instruments include the deferred tax asset, premises and equipment, and OREO. In addition, tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. Assets measured at fair value as of June 30, 2016 and December 31, 2015 on a recurring basis are summarized below:
Assets measured at fair value on a nonrecurring basis as of June 30, 2016 and December 31, 2015 are summarized below:
Impaired loans are presented net of their related specific reserves of $280,000 and charge offs of $790,000 as of December 31, 2015. Fair Value of Financial Instruments Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted prices are not available, fair values are based on estimates using present value or other valuation techniques using observable inputs when available. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. FASB ASC Topic 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The carrying amounts and estimated fair values for financial instruments as of June 30, 2016 and December 31, 2015 were as follows:
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Common Stock |
6 Months Ended |
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Jun. 30, 2016 | |
Equity [Abstract] | |
Common Stock | Common Stock On September 16, 2015, the Company announced that the Board of Directors authorized an Eighth Stock Repurchase Program to purchase up to 260,000 shares, or approximately 5% of the Company’s then outstanding stock. The Company intends to repurchase its shares from time to time at prevailing prices in the open market, in block transactions or in privately negotiated transactions. Repurchases will be made under Rule 10b-5(1) repurchase plans. The shares will be repurchased by the Company as treasury stock and will be available for general corporate purposes. Pursuant to the Agreement and Plan of Merger between the Company and Westfield Financial, Inc. ("Westfield Financial") dated April 4, 2016, the Company may not repurchase any shares of its common stock without the prior written consent of Westfield Financial. |
Subsequent Events |
6 Months Ended |
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Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events represent events or transactions occurring after the statements of financial condition date but before the financial statements are issued or are available to be issued. Financial statements are considered “issued” when they are widely distributed to shareholders and others for general use and reliance in a form and format that complies with GAAP. Financial statements are considered “available to be issued” when they are complete in form and format that complies with GAAP and all approvals necessary for their issuance have been obtained. The Company is an SEC filer and management has evaluated subsequent events through the date that the financial statements were issued. On April 4, 2016, the Company, and Westfield Financial, the holding company for Westfield Bank (“Westfield Bank”), entered into an Agreement and Plan of Merger pursuant to which (i) the Company will merge with and into Westfield Financial, the separate corporate existence of the Company will thereupon cease and Westfield Financial will continue as the surviving corporation (the “Merger”), and (ii) it is anticipated that the Bank will merge with and into Westfield Bank, the separate corporate existence of the Bank will thereupon cease and Westfield Bank will continue as the surviving corporation. The consummation of the Merger is subject to customary closing conditions, including the receipt of regulatory approvals and approval of the Merger by the stockholders of the Company. The Merger is currently expected to be completed early in the fourth quarter of 2016. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger, each outstanding share of common stock of the Company will be exchanged for 2.425 shares of common stock of Westfield Financial. The Merger Agreement provides each of the Company and Westfield Financial with specified termination rights. If the Merger is not consummated under specified circumstances, including if Chicopee Bancorp, Inc. terminates the Merger Agreement for a Superior Proposal (as defined in the Merger Agreement), Chicopee Bancorp, Inc. has agreed to pay Westfield Financial a termination fee equal to $4.0 million or an expense reimbursement fee of up to $750,000. On April 18, 2016, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.09 per share of its common stock to stockholders of record as of the close of business on May 6, 2016, payable on or about May 23, 2016. On July 22, 2016, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.09 per share of its common stock to stockholders of record as of the close of business on August 5, 2016, payable on or about August 19, 2016. |
Recent Accounting Pronouncements (Applicable to the Company) - (Policies) |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the adjusted weighted-average number of common shares outstanding during the period. The adjusted outstanding common shares equals the gross number of common shares issued less average treasury shares, unallocated shares of the Chicopee Savings Bank Employee Stock Ownership Plan (“ESOP”), and average dilutive restricted stock awards under the 2007 Equity Incentive Plan. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and certain stock awards and are determined using the treasury stock method. |
Recent Accounting Pronouncements (Applicable to the Company) | Recent Accounting Pronouncements (Applicable to the Company) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU was issued to clarify the principles for recognizing revenue and to develop a common revenue standard. The effective date for this ASU was deferred to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the potential impact of the ASU on its consolidated financial statements. In June 2014, FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The ASU was issued because current U.S. GAAP does not contain explicit guidance on how to account for share-based payments when a performance target could be achieved after the requisite service period. The ASU was effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The ASU did not have a material effect on the Company's consolidated financial statements. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This ASU changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. The ASU also changes certain disclosure requirements and other aspects of U.S. GAAP, including a requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The ASU will not have a material effect on the Company’s consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements. In March 2016, FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU was issued to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model, requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as available for sale. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the potential impact of the ASU on its consolidated financial statements. |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures Accounting Standards Codification ("ASC") Topic 825, "Financial Instruments," requires disclosures of fair value information about financial instruments, whether or not recognized in the statement of financial condition, if the fair values can be reasonably determined. Certain assets and liabilities are recorded at fair value to provide additional insight into the Company's quality of earnings. Some of these assets and liabilities are measured on a recurring basis while others are measured on a nonrecurring basis, with the determination based upon applicable existing accounting pronouncements. For example, available-for-sale securities are recorded at fair value on a recurring basis. Other assets, such as mortgage servicing rights, loans held for sale, and impaired loans, are recorded at fair value on a nonrecurring basis using the lower of cost or market methodology to determine impairment of individual assets. The Company groups assets and liabilities which are recorded at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Levels within the fair value hierarchy are based on the lowest level of input that is significant to the fair value measurement (with Level 1 considered highest and Level 3 considered lowest). A brief description of each level follows. Level 1 - Valuation is based upon quoted prices for identical instruments in active markets. Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation includes use of discounted cash flow models and similar techniques. The fair value methods and assumptions are set forth below. Cash and cash equivalents. The carrying amounts of cash equivalents, due from banks and federal funds sold approximate their relative fair values. As such, the Company classifies these financial instruments as Level 1. Held-to-maturity and non-marketable securities. The fair values of held-to-maturity securities are estimated by independent providers using matrix pricing and quoted market prices for similar securities. In obtaining such valuation information from third parties, the Company has evaluated their valuation methodologies used to develop the fair values in order to determine whether the valuations are representative of an exit price in the Company's principal markets. The Company's principal markets for its securities portfolios are the secondary institutional markets, with an exit price that is predominately reflective of bid level pricing in those markets. Fair values are calculated based on the value of one unit without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications, or estimated transaction costs. If these considerations had been incorporated into the fair value estimates, the aggregate fair value could have been changed. The carrying values of non-marketable securities approximate fair values. As such, the Company classifies held-to-maturity and non-marketable securities as Level 2. Available-for-sale securities. Fair value of securities are primarily measured using unadjusted information from an independent pricing service. The securities measured at fair value in Level 1 are based on quoted market prices in an active exchange market. These securities include marketable equity securities. Loans. Fair values are estimated for portfolios of loans with similar financial characteristics. The fair values of performing loans are calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest risk inherent in the loan. The estimates of maturity are based on the Company's historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions, and the effects of estimated prepayments. Assumptions regarding risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. Management has made estimates of fair value presented below that would be indicative of the value negotiated in an actual sale. As such, the Company classifies loans as Level 3. Fair values of impaired loans are based on estimated cash flows and are discounted using a rate commensurate with the risk associated with the estimated cash flows, or if collateral dependent, discounted to the appraised value of the collateral, less costs to sell. Loans held for sale. Loans held for sale are recorded at the lower of carrying value or fair value. The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies loans held for sale as nonrecurring Level 2. Other real estate owned ("OREO"). Real estate acquired through foreclosure is recorded at fair value. The fair value of OREO is based on property appraisals and an analysis of similar properties currently available. As such, the Company records OREO as nonrecurring Level 2. Mortgage servicing rights. Mortgage servicing rights represent the value associated with servicing residential mortgage loans. Servicing assets and servicing liabilities are reported using the amortization method and compared to fair value for impairment. In evaluating the fair values of the mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. As such, the Company classifies mortgage servicing rights as Level 2. Accrued interest and dividends receivable. The fair value estimate of this financial instrument approximates the carrying value as this financial instrument has a short maturity. It is the Company's policy to stop accruing interest on loans for which it is probable that the interest is not collectable. Therefore, this financial instrument has been adjusted for estimated credit loss. As such, the Company classifies accrued interest and dividends receivable as Level 2. Deposits. The fair value of deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposits compared to the cost of borrowing funds in the market. If that value were considered, the fair value of the Company's net assets could increase. As such, the Company classifies deposits as Level 2. Borrowed funds. The fair value of borrowed funds is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently available for borrowings of similar remaining maturities. As such, the Company classifies borrowed funds as Level 2. Accrued interest payable. The fair value estimate approximates the carrying amount as this financial instrument has a short maturity. As such, the Company classifies accrued interest payable as Level 2. Off-balance-sheet instruments. Off-balance-sheet instruments include loan commitments. Fair values for loan commitments have not been presented as the future revenue derived from such financial instruments is not significant. Limitations. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These values do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on Management's judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial instruments include the deferred tax asset, premises and equipment, and OREO. In addition, tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. |
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings per share have been computed based on the following:
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Equity Incentive Plan (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Options under Plan and Changes | A summary of options under the Plan as of June 30, 2016, and changes during the six months ended June 30, 2016, is as follows:
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Summary of Status of Stock Awards and Changes | A summary of the status of the Company’s stock awards as of June 30, 2016, and changes during the six months ended June 30, 2016, is as follows:
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Investment Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Securities, with Gross Unrealized Gains and Losses | The following tables set forth, at the dates indicated, information regarding the amortized cost and fair value, with gross unrealized gains and losses, of the Company's investment securities:
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Collateralized Mortgage Obligations Allocated to Maturity Categories According to Final Maturity Date | The collateralized mortgage obligations are allocated to maturity categories according to final maturity date.
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Loans and Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Loan Portfolio | The following table sets forth the composition of the Company’s loan portfolio in dollar amounts and as a percentage of the total loan portfolio at the dates indicated.
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Analysis of Total Loans Segregated by Risk Rating and Segment | The following table presents an analysis of total loans segregated by risk rating and segment as of June 30, 2016:
(1) At June 30, 2016, the Company had a total of $252,000 in residential real estate loans in the process of foreclosure. The following table presents an analysis of total loans segregated by risk rating and segment as of December 31, 2015:
(1) At December 31, 2015, the Company had a total of $63,000 in residential real estate loans in the process of foreclosure. |
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Allowance for Loan Losses and Select Loan Information | The following table presents the allowance for loan losses and select loan information as of and for the three months ended June 30, 2016:
The following table presents the allowance for loan losses and select loan information as of and for the six months ended June 30, 2016:
The following table presents the allowance for loan losses and select loan information as of and for the year ended December 31, 2015:
The following table presents the allowance for loan losses and select loan information as of and for the three months ended June 30, 2015:
The following table presents the allowance for loan losses and select loan information as of and for the six months ended June 30, 2015:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Pertaining to Impaired Loans by Segment | The following table presents a summary of information pertaining to impaired loans by segment as of and for the three months ended June 30, 2016:
The $9.4 million of impaired loans include $7.0 million of non-accrual loans. The remaining impaired loans are TDRs or loans for which the Company believes, 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. The following table presents a summary of information pertaining to impaired loans by segment as of and for the six months ended June 30, 2016:
The $9.4 million of impaired loans include $7.0 million of non-accrual loans. The remaining impaired loans are TDRs or loans for which the Company believes, 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. The following table presents a summary of information pertaining to impaired loans by segment as of and for the year ended December 31, 2015:
The $8.4 million of impaired loans include $6.4 million of non-accrual loans. The remaining impaired loans are TDRs or loans for which the Company believes, 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. The following table presents a summary of information pertaining to impaired loans by segment as of and for the three months ended June 30, 2015:
The $7.8 million of impaired loans include $6.3 million of non-accrual loans. The remaining impaired loans are TDRs or loans for which the Company believes, 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. The following table presents a summary of information pertaining to impaired loans by segment as of and for the six months ended June 30, 2015:
|
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Aging Analysis of Past Due Loans | The following table presents an aging analysis of past due loans and non-accrual loans at June 30, 2016:
The following table presents an aging analysis of past due loans and non-accrual loans at December 31, 2015:
|
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Summary of Accruing and Non-Accruing Troubled Debt Restructuring Loans By Class | The following table provides new TDR activity by segment during the period indicated:
The following is a summary of TDR loans by segment as of the dates indicated:
|
Fair Value Measurements and Disclosures (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value as of June 30, 2016 and December 31, 2015 on a recurring basis are summarized below:
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Assets Measured at Fair Value on Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis as of June 30, 2016 and December 31, 2015 are summarized below:
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Carrying Amounts and Estimated Fair Values of Instruments | The carrying amounts and estimated fair values for financial instruments as of June 30, 2016 and December 31, 2015 were as follows:
|
Basis of Presentation - Additional Information (Detail) |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Entity incorporation date of incorporation | Mar. 14, 2006 |
Percentage of owned subsidiary (as percent) | 99.00% |
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Earnings Per Share [Abstract] | ||
Stock options that were not included in the calculation of diluted earnings per share (in shares) | 634 | 87 |
Equity Incentive Plan - Summary of Status of Stock Awards and Changes (Detail) |
6 Months Ended |
---|---|
Jun. 30, 2016
$ / shares
shares
| |
Number of Shares | |
Nonvested shares at beginning of period (in shares) | shares | 400 |
Vested (in shares) | shares | 400 |
Nonvested shares at end of period (in shares) | shares | 0 |
Weighted Average Grant-Date Fair Value | |
Nonvested shares at beginning of period (in dollars per share) | $ / shares | $ 14.08 |
Vested (in dollars per share) | $ / shares | 14.08 |
Nonvested shares at end of period (in dollars per share) | $ / shares | $ 0.00 |
Long-term Incentive Plan - Additional Information (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 01, 2007 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2011 |
Dec. 31, 2015 |
May 30, 2007 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units available for awards (in shares) | 297,574 | |||||
Share based compensation expense | $ 1 | $ 3 | ||||
Phantom shares granted (in shares) | 0 | 0 | 0 | 2,000 | ||
Phantom stock units outstanding (in shares) | 0 | 400 | ||||
Phantom Share Units (PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units available for awards (in shares) | 150,000 | |||||
Stock plan award, required period of service for full vesting | 3 years | |||||
Share based compensation expense | $ 140 | $ 13 | ||||
Phantom shares granted (in shares) | 11,365 | 0 | ||||
Phantom stock units outstanding (in shares) | 14,308 | 7,016 |
Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 7,771 | |
Due after five years through ten years | 6,458 | |
Due after ten years | 17,362 | |
Amortized Cost | 31,591 | $ 32,229 |
Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 7,963 | |
Due after five years through ten years | 6,413 | |
Due after ten years | 17,242 | |
Total | $ 31,618 | $ 32,935 |
Investment Securities - Additional Information (Detail) |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2016
USD ($)
financial_institution
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Unrealized losses | $ 0 | $ 0 | |
Number of financial institutions (more than) | financial_institution | 450 | ||
Federal Home Loan Bank stock, at cost | $ 4,225,000 | 4,764,000 | |
Dividends income received from FHLB stock investment | 83,000 | $ 35,000 | |
Investments in Banker's Bank | 4,408,000 | 4,947,000 | |
Banker's Bank Northeast stock | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Investments in Banker's Bank | $ 183,000 | $ 183,000 |
Loans and Allowance for Loan Losses - Additional Information (Detail) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2016
USD ($)
contract
|
Jun. 30, 2015
USD ($)
contract
|
Dec. 31, 2015
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount of servicing loans for participating lenders | $ 20,900 | $ 23,700 | |
Unpaid principal balance of mortgages serviced for others | $ 79,800 | 82,100 | |
Loan portfolio review period | 48 months | ||
Total impaired loans | $ 9,358 | $ 7,836 | 8,409 |
Total non-accrual impaired loans | $ 7,000 | $ 6,300 | 6,400 |
Recorded investment post-modification defaulted, number of contracts | contract | 3 | 0 | |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold | $ 819 | $ 1,200 | |
Loans in the process of foreclosure | 252 | 63 | |
Total impaired loans | $ 4,296 | $ 3,224 | $ 3,913 |
Fair Value Measurements and Disclosures - Additional Information (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
|
Fair Value Disclosures [Abstract] | |||
Individually evaluated for impairment | $ 324 | $ 280 | $ 102 |
Financing receivables charge offs | $ 858 | $ 790 |
Common Stock - Additional Information (Detail) - Eighth Stock Repurchase Program |
Sep. 16, 2015
shares
|
---|---|
Class of Stock [Line Items] | |
Number of shares authorized to be repurchased (in shares) | 260,000 |
Number of shares authorized to be repurchased (as a percent) | 5.00% |
Subsequent Events - Additional Information (Detail) |
6 Months Ended | ||||
---|---|---|---|---|---|
Jul. 22, 2016
$ / shares
|
Apr. 18, 2016
$ / shares
|
Apr. 04, 2016
USD ($)
|
Jun. 30, 2016
$ / shares
|
Jun. 30, 2015
$ / shares
|
|
Subsequent Event [Line Items] | |||||
Cash dividends declared (in dollars per share) | $ / shares | $ 0.09 | $ 0.18 | $ 0.14 | ||
Cash dividends, date of record | May 06, 2016 | ||||
Cash dividends, payable date | May 23, 2016 | ||||
Westfield Financial | |||||
Subsequent Event [Line Items] | |||||
Conversion of Stock, conversion ratio of Westfield Financial's common stock for Chicopee's common stock | 2.425 | ||||
Early contract termination fees | $ | $ 4,000,000 | ||||
Expense reimbursement fee | $ | $ 750,000 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared (in dollars per share) | $ / shares | $ 0.09 | ||||
Cash dividends, date of record | Aug. 05, 2016 | ||||
Cash dividends, payable date | Aug. 19, 2016 |
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