Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Nov. 13, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-29599 | |
Entity Registrant Name | PATRIOT NATIONAL BANCORP INC | |
Entity Incorporation, State or Country Code | CT | |
Entity Tax Identification Number | 06-1559137 | |
Entity Address, Address Line One | 900 Bedford Street | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06901 | |
City Area Code | 203 | |
Local Phone Number | 252-5900 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | PNBK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,965,186 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001098146 | |
Amendment Flag | true | |
Amendment Description | The Company is filing this Amendment No. 1 on Form 10-Q/A (this “Amended Filing”) to its Quarterly Report on Form 10-Q for the three and six months ended June 30, 2023 (“Original Filing”) to: (i) restate management's conclusions regarding the effectiveness of its disclosure controls and procedures as of June 30, 2023; (ii) reissue the consolidated financial statements for the three and six months ended June 30, 2023 to reflect changes in the provision for credit losses resulting from the material weaknesses in internal controls over financial reporting. Accordingly, the Company hereby amends and replaces in their entirety Items 1, 2, and 4 in Part I.Subsequent to filing the Original Filing on August 10, 2023, management became aware of an accounting error related to the calculation of the current expected credit loss (“CECL”) transition adjustment and corresponding credit loss provisions for a portfolio of unsecured consumer loans (the “Portfolio”) purchased by the Company from an originator/servicer mostly during the 2022 calendar year. Management determined that the error was due to the use of unsupported and incorrect data points used in conjunction with the data provided by the third party originator/servicer. The necessary changes to the CECL transition adjustment affected the reported total shareholders’ equity/accumulated deficit, totaling $5.3 million net of tax. The adjustments to the retained earnings were determined to be material to total shareholders equity. The restatement has no impact on the audit report for the year ended December 31, 2022.The Company has concluded that there is a material weakness in internal control over financial reporting, related to the allowance for credit losses, as the Company did not maintain effective controls over (i) the recording, monitoring and valuation when calculating the accumulated credit losses on the purchased Portfolio of loans and related commitments; Specifically the Company’s management has determined that the Company’s financial reporting controls and procedures with respect to the allowance for credit losses were not operating effectively for the quarter ended June 30, 2023. Accordingly, management has determined that the Company's disclosure controls and procedures were not effective as of June 30, 2023.As required by Rule 12b-15, the Company's principal executive officer and principal financial officer are providing new currently dated certifications. Accordingly, the Company hereby amends Item 6 in Part II in the Original Filing to reflect the filing of the new certifications.For the convenience of the reader, this Amended Filing sets forth the complete form of the Original Filing, as modified where necessary to reflect the restatement and revisions. Except as described above, this Amended Filing does not amend, update or change any other items or disclosures in the Original Filing and does not purport to reflect any information or events subsequent to the filing thereof. As such, this Amended Filing speaks only as of the date the Original Filing was filed, and the Company has not undertaken herein to amend, supplement or update any information contained in the Original Filing to give effect to any subsequent events. Accordingly, this Amended Filing should be read in conjunction with the Company's filings made with the SEC subsequent to the filing of the Original Filing, including any amendment to those filings.For additional information about this restatement refer to Note 1. Basis of Presentation and Restatement of Consolidated Financial Statements, of the Notes to consolidated financial statements. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Cash and due from banks: | ||
Noninterest bearing deposits and cash | $ 2,320 | $ 5,182 |
Interest bearing deposits | 68,489 | 33,311 |
Total cash and cash equivalents | 70,809 | 38,493 |
Investment securities: | ||
Available-for-sale securities, at fair value | 90,547 | 84,520 |
Other investments, at cost | 4,450 | 4,450 |
Total investment securities | 94,997 | 88,970 |
Federal Reserve Bank stock, at cost | 2,523 | 2,627 |
Federal Home Loan Bank stock, at cost | 8,072 | 3,874 |
Loans receivable (net of allowance for credit losses: 2023: $24,098 and 2022: $10,310) | 906,636 | 838,006 |
Loans held for sale | 5,860 | 5,211 |
Accrued interest and dividends receivable | 7,628 | 7,267 |
Premises and equipment, net | 30,262 | 30,641 |
Deferred tax asset | 20,386 | 15,527 |
Goodwill | 1,107 | 1,107 |
Core deposit intangible, net | 226 | 249 |
Other assets | 9,202 | 11,387 |
Total assets | 1,157,708 | 1,043,359 |
Deposits: | ||
Noninterest bearing deposits | 127,817 | 269,636 |
Interest bearing deposits | 735,562 | 590,810 |
Total deposits | 863,379 | 860,446 |
Federal Home Loan Bank and correspondent bank borrowings | 207,000 | 85,000 |
Senior notes, net | 11,653 | 11,640 |
Subordinated debt, net | 9,854 | 9,840 |
Junior subordinated debt owed to unconsolidated trust, net | 8,132 | 8,128 |
Note payable | 481 | 585 |
Advances from borrowers for taxes and insurance | 3,094 | 886 |
Accrued expenses and other liabilities | 7,704 | 7,251 |
Total liabilities | 1,111,297 | 983,776 |
Commitments and Contingencies | ||
Shareholders' equity | ||
Preferred stock, no par value; 1,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 100,000,000 shares authorized; As of June 30, 2023: 4,038,927 shares issued; 3,965,186 shares outstanding; As of December 31, 2022: 4,038,927 shares issued; 3,965,186 shares outstanding. | 106,611 | 106,565 |
Accumulated deficit | (44,161) | (31,337) |
Accumulated other comprehensive loss | (16,039) | (15,645) |
Total shareholders' equity | 46,411 | 59,583 |
Total liabilities and shareholders' equity | $ 1,157,708 | $ 1,043,359 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 24,098 | $ 10,310 |
Preferred stock, par value (usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 4,038,927 | 4,038,927 |
Common stock, shares outstanding (in shares) | 3,965,186 | 3,965,186 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest and Dividend Income | ||||
Interest and fees on loans | $ 14,052 | $ 9,044 | $ 26,602 | $ 16,708 |
Interest on investment securities | 687 | 510 | 1,367 | 1,080 |
Dividends on investment securities | 171 | 65 | 306 | 130 |
Other interest income | 399 | 68 | 680 | 89 |
Total interest and dividend income | 15,309 | 9,687 | 28,955 | 18,007 |
Interest Expense | ||||
Interest on deposits | 5,248 | 757 | 8,827 | 1,166 |
Interest on Federal Home Loan Bank and correspondent bank borrowings | 1,723 | 747 | 3,159 | 1,484 |
Interest on senior debt | 289 | 210 | 579 | 420 |
Interest on subordinated debt | 333 | 251 | 659 | 485 |
Interest on note payable | 3 | 2 | 5 | 6 |
Total interest expense | 7,596 | 1,967 | 13,229 | 3,561 |
Net interest income | 7,713 | 7,720 | 15,726 | 14,446 |
Provision for credit losses | 1,325 | 275 | 3,545 | 275 |
Net interest income after provision for credit losses | 6,388 | 7,445 | 12,181 | 14,171 |
Non-interest Income | ||||
Loan application, inspection and processing fees | 121 | 89 | 244 | 176 |
Deposit fees and service charges | 74 | 60 | 142 | 124 |
Gains on sales of loans | 85 | 301 | 166 | 509 |
Rental income | 105 | 132 | 224 | 324 |
Gain on sale of investment securities | 0 | 0 | 24 | 0 |
Other income | 444 | 216 | 864 | 479 |
Total non-interest income | 829 | 798 | 1,664 | 1,612 |
Non-interest Expense | ||||
Salaries and benefits | 4,661 | 3,763 | 8,928 | 7,109 |
Occupancy and equipment expense | 839 | 881 | 1,723 | 1,717 |
Data processing expense | 316 | 283 | 610 | 613 |
Professional and other outside services | 727 | 559 | 1,641 | 1,348 |
Project expenses, net | 66 | 29 | 93 | 81 |
Advertising and promotional expense | 77 | 73 | 162 | 141 |
Loan administration and processing expense | 103 | 42 | 154 | 147 |
Regulatory assessments | 317 | 179 | 499 | 353 |
Insurance expense, net | 68 | 76 | 145 | 153 |
Communications, stationary and supplies | 241 | 139 | 432 | 274 |
Other operating expense | 648 | 478 | 1,260 | 995 |
Total non-interest expense | 8,063 | 6,502 | 15,647 | 12,931 |
(Loss) income before income taxes | (846) | 1,741 | (1,802) | 2,852 |
(Benefit) provision for income taxes | (231) | 476 | (488) | 787 |
Net (loss) income | $ (615) | $ 1,265 | $ (1,314) | $ 2,065 |
Basic earnings (loss) per share (usd per share) | $ (0.16) | $ 0.32 | $ (0.33) | $ 0.52 |
Diluted earnings (loss) per share (usd per share) | $ (0.16) | $ 0.32 | $ (0.33) | $ 0.52 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (615) | $ 1,265 | $ (1,314) | $ 2,065 |
Other comprehensive (loss) income | ||||
Unrealized holding loss on securities | (2,211) | (5,614) | (507) | (13,003) |
Income tax effect | 570 | 1,448 | 131 | 3,355 |
Reclassification for realized gain on sale of investment securities | 0 | 0 | (24) | 0 |
Income tax effect | 0 | 0 | 6 | 0 |
Total securities available-for-sale | (1,641) | (4,166) | (394) | (9,648) |
Comprehensive loss | $ (2,256) | $ (2,901) | $ (1,708) | $ (7,583) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance (in shares) at Dec. 31, 2021 | 3,956,492 | |||
Balance at Dec. 31, 2021 | $ 67,344 | $ 106,479 | $ (37,498) | $ (1,637) |
Comprehensive loss: | ||||
Net (loss) income | 2,065 | 2,065 | ||
Unrealized holding gain (loss) on available-for-sale securities, net of tax | (9,648) | (9,648) | ||
Comprehensive loss | (7,583) | 2,065 | (9,648) | |
Share-based compensation expense | 41 | $ 41 | ||
Vesting of restricted stock (in shares) | 777 | |||
Balance (in shares) at Jun. 30, 2022 | 3,957,269 | |||
Balance at Jun. 30, 2022 | 59,802 | $ 106,520 | (35,433) | (11,285) |
Balance (in shares) at Mar. 31, 2022 | 3,956,492 | |||
Balance at Mar. 31, 2022 | 62,683 | $ 106,500 | (36,698) | (7,119) |
Comprehensive loss: | ||||
Net (loss) income | 1,265 | 1,265 | ||
Unrealized holding gain (loss) on available-for-sale securities, net of tax | (4,166) | (4,166) | ||
Comprehensive loss | (2,901) | 1,265 | (4,166) | |
Share-based compensation expense | 20 | $ 20 | ||
Vesting of restricted stock (in shares) | 777 | |||
Balance (in shares) at Jun. 30, 2022 | 3,957,269 | |||
Balance at Jun. 30, 2022 | $ 59,802 | $ 106,520 | (35,433) | (11,285) |
Balance (in shares) at Dec. 31, 2022 | 3,965,186 | 3,965,186 | ||
Balance at Dec. 31, 2022 | $ 59,583 | $ 106,565 | (31,337) | (15,645) |
Comprehensive loss: | ||||
Net (loss) income | (1,314) | (1,314) | ||
Unrealized holding gain (loss) on available-for-sale securities, net of tax | (394) | (394) | ||
Comprehensive loss | (1,708) | (1,314) | (394) | |
Share-based compensation expense | $ 46 | $ 46 | ||
Balance (in shares) at Jun. 30, 2023 | 3,965,186 | 3,965,186 | ||
Balance at Jun. 30, 2023 | $ 46,411 | $ 106,611 | (44,161) | (16,039) |
Balance (in shares) at Mar. 31, 2023 | 3,965,186 | |||
Balance at Mar. 31, 2023 | 48,644 | $ 106,588 | (43,546) | (14,398) |
Comprehensive loss: | ||||
Net (loss) income | (615) | (615) | ||
Unrealized holding gain (loss) on available-for-sale securities, net of tax | (1,641) | (1,641) | ||
Comprehensive loss | (2,256) | (615) | (1,641) | |
Share-based compensation expense | $ 23 | $ 23 | ||
Balance (in shares) at Jun. 30, 2023 | 3,965,186 | 3,965,186 | ||
Balance at Jun. 30, 2023 | $ 46,411 | $ 106,611 | $ (44,161) | $ (16,039) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ (1,314) | $ 2,065 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Amortization and accretion of investment premiums and discounts, net | (52) | (13) |
Amortization and accretion of purchase loan premiums and discounts, net | 1,227 | 1,245 |
Amortization of debt issuance costs | 87 | 18 |
Amortization of core deposit intangible | 23 | 23 |
Amortization of servicing assets of sold SBA loans | 62 | 30 |
Provision for credit losses | 3,545 | 275 |
Depreciation and amortization | 615 | 653 |
Gain on sales of available-for-sale securities | (24) | 0 |
Share-based compensation | 46 | 41 |
(Increase) decrease in deferred income taxes, net | (494) | 591 |
Originations of SBA loans held for sale | (3,578) | (11,305) |
Proceeds from sale of SBA loans held for sale | 3,095 | 7,315 |
Gains on sale of SBA loans held for sale, net | (166) | (509) |
Changes in assets and liabilities: | ||
(Increase) decrease in accrued interest and dividends receivable | (361) | 95 |
Decrease (increase) in other assets | 1,984 | (712) |
Decrease in accrued expenses and other liabilities | (899) | (2,053) |
Net cash provided by (used in) operating activities | 3,796 | (2,241) |
Cash Flows from Investing Activities: | ||
Proceeds from maturity or sales on available-for-sale securities | 1,780 | 3,600 |
Principal repayments on available-for-sale securities | 2,153 | 3,819 |
Purchases of available-for-sale securities | (10,415) | (3,039) |
Redemptions of Federal Reserve Bank stock | 104 | 81 |
Purchases of Federal Home Loan Bank stock | (4,198) | (290) |
Origination of loans receivable | (132,611) | (138,414) |
Purchases of loans receivable | (16,443) | (98,720) |
Payments received on loans receivable | 61,343 | 115,960 |
Purchases of premises and equipment | (230) | (270) |
Net cash used in investing activities | (98,517) | (117,273) |
Cash Flows from Financing Activities: | ||
Increase in deposits, net | 2,933 | 98,221 |
Increase in FHLB and correspondent bank borrowings | 122,000 | 10,000 |
Principal repayments of note payable | (104) | (102) |
Decrease in advances from borrowers for taxes and insurance | 2,208 | 1,866 |
Net cash provided by financing activities | 127,037 | 109,985 |
Net increase (decrease) in cash and cash equivalents | 32,316 | (9,529) |
Cash and cash equivalents at beginning of period | 38,493 | 47,045 |
Cash and cash equivalents at end of period | 70,809 | 37,516 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 12,609 | 3,482 |
Cash paid for income taxes | 44 | 102 |
Non-cash transactions: | ||
Capitalized servicing assets | 58 | 131 |
Transfers of loans held for sale to loans receivable | 0 | 72 |
Operating lease right-of-use assets | 16 | 80 |
Decrease in interest rate swaps | 41 | (637) |
Capital raise deferred costs | 0 | 1,094 |
Expected credit loss for loans - ASC 326 adoption | 13,001 | 0 |
Expected credit loss for unfunded loan commitments - ASC 326 adoption | 2,737 | 0 |
Deferred tax assets - ASC 326 adoption | $ (4,228) | $ 0 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation and Restatement of Consolidated Financial Statements | Basis of Financial Statement Presentation and Restatement of Consolidated Financial Statements The accompanying unaudited interim condensed Consolidated Financial Statements of Patriot National Bancorp, Inc. (the “Company” or “PNBK”) and its wholly-owned subsidiaries, Patriot Bank, N.A. (the “Bank”), Patriot National Statutory Trust I and PinPat Acquisition Corporation (collectively, “Patriot”), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been omitted. The accompanying unaudited interim condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included on the Annual Report on Form 10-K for the year ended December 31, 2022. The Consolidated Balance Sheet at December 31, 2022 presented herein has been derived from the audited Consolidated Financial Statements of the Company at that date, but does not include all of the information and footnotes required by US GAAP for complete financial statements. The preparation of consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and to disclose contingent assets and liabilities. Actual results could differ from those estimates. Management has identified accounting for the allowance for credit losses, the analysis and valuation of its investment securities, the valuation of deferred tax assets, the impairment of goodwill, the valuation of derivatives, and the valuation of servicing assets as certain of the Company’s more significant accounting policies and estimates, in that they are critical to the presentation of the Company’s consolidated financial condition and results of operations. As they concern matters that are inherently uncertain, these estimates require management to make subjective and complex judgments in the preparation of the Company’s Consolidated Financial Statements. The information furnished reflects, in the opinion of management, all normal recurring adjustments necessary for a fair presentation of the results for the interim periods presented. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results of operations that may be expected for the remainder of 2023. Certain prior period amounts have been reclassified to conform to current year presentation. Restatement of Consolidated Financial Statements The Company has determined an error related to the calculation of the current expected credit loss (“CECL”) transition adjustment and corresponding credit loss provisions relating to a portfolio of unsecured consumer loans (the “portfolio”) purchased by the Company from an originator/servicer mostly during the 2022 calendar year. The error in the Company’s calculations of the CECL transition adjustment was due to the use of unsupported and incorrect data points used in conjunction with data provided by the third-party originator/servicer. The Company identified the following problems with its data and methodology: 1) The original weighted average life, which impacted the calculation of aggregate future losses, was understated. 2) The loss rate applied to the portfolio was applied as a straight percentage with some minor adjustments to account for the vintage/age of the portfolio purchased. While the Company attempted to capture the age impact in its analysis, it did not fully capture such impact on the projected losses of the portfolio. 3) The Company did not adequately adjust for the status of loan delinquencies as of the date of its analysis. The Company is currently negotiating with the third-party originator/servicer with the intention of recovering all or a portion of the losses incurred. Such potential recoveries would be recognized in future periods. The Company has restated its previously filed interim financial statements as of and for the quarter ended June 30, 2023. The restatement had the effect of increasing the CECL transition adjustment, effective January 1, 2023. As a result, there was a significant impact on the reported total shareholders’ equity/accumulated deficit, amounting to $5.3 million, net of tax. The restatement also increased the net loss for the three months ended June 30, 2023, from $546,000 to $615,000. Basic and diluted loss per share were reduced from $(0.14) to $(0.16) for the three months ended June 30, 2023. For the six months the net loss increased from $599,000 to $1.3 million, and basic and diluted loss per share was reduced from $(0.15) to $(0.33). The increase in the Company’s provision for credit losses has been reflected herein, as well as its impact on net loss, net loss per share, loans receivable, the allowance for credit losses, deferred tax assets, regulatory capital and equity. The effect of these changes on the consolidated financial statements of the Company is as follows. (In thousands) As of January 1, 2023 Adoption of CECL effective January 1, 2023: Previously Reported Adjustment Restated CECL adoption transition_ ACL on loans $ (7,371) $ (5,630) $ (13,001) CECL adoption transition_ ACL on Off-BS exposure (1,094) (1,643) (2,737) CECL adoption transition_ DTA Adjustment 2,274 1,954 4,228 Cumulative change in accounting principle Balance at January 1, 2023 - Adoption of CECL (6,191) (5,319) (11,510) As of June 30, 2023 (In thousands) Previously Reported Adjustment Restated Loans receivable, net of allowance for credit losses $ 913,876 $ (7,240) $ 906,636 Deferred tax asset 18,169 2,217 20,386 Total assets 1,162,731 (5,023) 1,157,708 Accrued expenses and other liabilities 6,693 1,011 7,704 Accumulated deficit (38,127) (6,034) (44,161) Total shareholders' equity 52,445 (6,034) 46,411 Tier 1 Leverage ratio 8.70 % (0.16) % 8.54 % Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (In thousands, except shares and per share amounts) Previously Reported Adjustment Restated Previously Reported Adjustment Restated Provision for credit losses $ 1,231 $ 94 $ 1,325 $ 2,567 $ 978 $ 3,545 Net interest income after provision for credit losses 6,482 (94) 6,388 13,159 (978) 12,181 Loss before income taxes (752) (94) (846) (824) (978) (1,802) Benefit for income taxes (206) (25) (231) (225) (263) (488) Net loss (546) (69) (615) (599) (715) (1,314) Total comprehensive loss (2,187) (69) (2,256) (993) (715) (1,708) Basic and diluted income per share $ (0.14) $ (0.02) $ (0.16) $ (0.15) $ (0.18) $ (0.33) Consolidated Statement of Cash Flows: Net loss N/A N/A N/A $ (599) $ (715) $ (1,314) Provision for credit losses N/A N/A N/A 2,567 978 3,545 Deferred income taxes N/A N/A N/A (231) (263) (494) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Please refer to the summary of Significant Accounting Policies included in the Company’s 2022 Annual Report on Form 10-K for a list of all policies in effect as of December 31, 2022. Allowance for Credit Losses (“ACL”) and Impairment of Debt Securities As described below under Recently Adopted Accounting Pronouncements, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Accounting Standard Codification (“ASC”) 326, effective January 1, 2023. Impairment of Debt Securities Available for Sale For available-for-sale debt securities in an unrealized loss position, the Company will first assess whether i) it intends to sell or ii) it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis. If either case is applicable, any previously recognized allowances are charged off and the debt security’s amortized cost is written down to fair value through income. If neither case is applicable, the debt security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the debt security by a rating agency and any adverse conditions specifically related to the debt security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the debt security are compared to the amortized cost basis of the debt security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount by which the fair value is less than the amortized cost basis. Any impairment that has not been recorded through allowance for credit losses is recognized in other comprehensive income, net of tax. Adjustments to the allowance are reported in the income statement as a component of credit loss expense. Debt securities are charged off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible by the Company or when either of the aforementioned criteria regarding intent or requirement to sell is met specifically for available-for-sale debt securities. The Company excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on debt securities and does not record an ACL on accrued interest receivable. ACL – Loans The ACL is based on the Company’s evaluation of the loan portfolios, past loan loss experience, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The process is inherently subjective and subject to significant change as it requires material estimates. The allowance is increased by a provision for credit losses, which is charged to expense, and reduced by charge-offs, net of recoveries. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the allowance for credit losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination. The Company evaluates loans with similar risk characteristics in pools using a probability of default/loss given default ("PD/LGD") method. Unlike the previous allowance for loan losses approach, which applied historical loss rates to similar loan pools, the current expected credit loss ("CECL") methodology forecasts the probability of default, loss given default, and exposure at default for loans in a given pool over their remaining life. This allows the Company to derive an ACL that can absorb estimated losses over the remaining life of the portfolio. Qualitative factors play a greatly diminished role under the Company's CECL framework as reserve rates for the model in use are influenced by change in: real domestic Gross Domestic Product ("GDP"); State of Connecticut unemployment rate; New York Fed recession indicator; CoStar composite index; New York Case Schiller index; Coincident activity index; Michigan consumer activity index; S&P's BBB credit spreads; the Company's loan delinquencies and charge off data. Credit losses for loans that no longer share similar risk characteristics with the collectively evaluated pools are excluded from the collective evaluation and estimated on an individual basis. Individual evaluations are performed for nonaccrual loans and loans rated substandard that are in excess of $100,000. Specific allowances were estimated based on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows. The Company measures expected credit losses over the contractual term of a loan, adjusted for estimated prepayments. The contractual term excludes expected extensions, renewals and modifications unless there is a reasonable expectation that a troubled debt restructuring will be executed. Credit losses are estimated on the amortized cost basis of loans, which includes the principal balance outstanding, purchase discounts and premiums and deferred loan fees and costs. Accrued interest receivable on loans is excluded from the estimate of credit losses. ACL – Unfunded Loan Commitments The ACL for unfunded loan commitments represents expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if the Company has the unconditional right to cancel the obligation. The ACL for unfunded loan commitments is reported as a component of other liabilities within the Consolidated Balance Sheets. Adjustments to the ACL for unfunded loan commitments are reported in the Consolidated Statements of Operations as a component of provision for credit losses. Recently Issued Accounting Standards New Accounting Standards Adopted in 2023 ASU 2016-13 In June 2016 , the FASB issued ASU 2016 - 13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) . The ASU changes the methodology for measuring credit losses on financial instruments measured at amortized cost to a CECL model. Under the CECL model, entities are required to estimate credit losses over the entire contractual term of a financial instrument from the date of initial recognition of the instrument. The ASU also changes the existing impairment model for available-for-sale debt securities. In cases where there is neither the intent nor a more-likely-than-not requirement to sell the debt security, an entity should record credit losses as an allowance rather than a direct write-down of the amortized cost basis. Additionally, ASU 2016-13 notes that credit losses related to available-for-sale debt securities and purchased credit impaired loans should be recorded through an allowance for credit losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. In November 2019, the FASB issued ASU 2019-10, which amended the effective date of ASU 2016-13 for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities, and delayed the effective date to fiscal years beginning after December 31, 2022, including interim periods within those fiscal periods. As the Company is a small reporting company, the delay was applicable to the Company. The Company adopted ASU 2016-13 effective January 1, 2023. This resulted in the Company recording an increase to the allowance for credit losses of $13.0 million and an increase to reserve for unfunded loan commitments of $2.7 million (which is included in other liabilities on the Company’s Consolidated Balance Sheets), and a cumulative-effect adjustment to increase the opening balance of accumulated deficit of $11.5 million, net of $4.2 million tax at the date of adoption. ASU 2020-02 In January 2020, the FASB issued ASU No. 2020-02, Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) . This ASU adds and amends SEC paragraphs in the Accounting Standards Codification to reflect the issuance of SEC Staff Accounting Bulletin No. 119, related to the new credit losses standard, and comments by the SEC staff related to the revised effective date of the new leases standard. This ASU is effective upon issuance. The Company adopted ASU 2016-13 and ASU 2020-02 effective January 1, 2023. ASU 2020-03 In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments. This ASU clarifies various financial instruments topics, including the CECL standard issued in 2016 . Amendments related to ASU 2016-13 for entities that have not yet adopted that guidance are effective upon adoption of the amendments in ASU 2016-13. Early adoption is not permitted before an entity’s adoption of ASU 2016-13. Other amendments are effective upon issuance of this ASU. See the discussion regarding the adoption of ASU 2016-13 above. ASU 2022-02 In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments — Credit Losses (Topic 326 ): Troubled Debt Restructurings ("TDR") and Vintage Disclosures. ASU 2022-02 updates guidance in Topic 326, to eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty and to require entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted if an entity has adopted the amendments in ASU 2016-03, including adoption in an interim period. The Company adopted ASU 2016-13 effective January 1, 2023. The adoption of this guidance did not have any material impact on the Company's Consolidated Financial Statements. ASU 2022-06 On December 21, 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . This ASU defers the sunset date of the temporary, optional expedients related to the accounting for contract modifications and hedging transactions as a result of the anticipated transition away from the use of LIBOR and other interbank offered rates to alternative reference rates. In response to the United Kingdom’s Financial Conduct Authority's extension of the cessation date of LIBOR in the United States to June 30, 2023, the FASB has deferred the expiration date of these optional expedients to December 31, 2024. The ASU became effective upon issuance and affords the Company an extended period to utilize the currently available optional expedients related to the accounting for contract modifications and hedging transactions as a result of the anticipated transition away from the use of LIBOR and other inter-bank offered rates. The adoption of this guidance did not have a material impact on the Company's Consolidated Financial Statements. |
Available-for-Sale Securities
Available-for-Sale Securities | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Available-for-Sale Securities | Available-for-Sale Securities The amortized cost, gross unrealized gains, gross unrealized losses and fair values of available-for-sale securities at June 30, 2023 and December 31, 2022 are as follows: (In thousands) Amortized Gross Gross Fair June 30, 2023: U. S. Government agency and mortgage-backed securities $ 82,192 $ 63 $ (15,007) $ 67,248 Corporate bonds 18,002 — (4,747) 13,255 Subordinated notes 5,000 — (764) 4,236 SBA loan pools 6,409 — (1,083) 5,326 Municipal bonds 560 — (78) 482 Total available-for-sale securities $ 112,163 $ 63 $ (21,679) $ 90,547 December 31, 2022: U. S. Government agency and mortgage-backed securities $ 73,480 $ — $ (14,434) $ 59,046 Corporate bonds 19,773 7 (5,125) 14,655 Subordinated notes 5,000 — (398) 4,602 SBA loan pools 6,791 — (1,073) 5,718 Municipal bonds 561 — (62) 499 Total available-for-sale securities $ 105,605 $ 7 $ (21,092) $ 84,520 The following table presents the available-for-sale securities’ gross unrealized losses and fair value, aggregated by the length of time the individual securities have been in a continuous loss position as of June 30, 2023 and December 31, 2022: (In thousands) Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2023: U. S. Government agency and mortgage-backed securities $ 18,306 $ (1,077) $ 46,807 $ (13,930) $ 65,113 $ (15,007) Corporate bonds — — 13,255 (4,747) 13,255 (4,747) Subordinated notes 2,543 (457) 1,693 (307) 4,236 (764) SBA loan pools 1,276 (13) 4,050 (1,070) 5,326 (1,083) Municipal bonds — — 482 (78) 482 (78) Total available-for-sale securities $ 22,125 $ (1,547) $ 66,287 $ (20,132) $ 88,412 $ (21,679) December 31, 2022: U. S. Government agency and mortgage-backed securities $ 11,126 $ (633) $ 47,920 $ (13,801) $ 59,046 $ (14,434) Corporate bonds 1,959 (64) 10,934 (5,061) 12,893 (5,125) Subordinated notes 4,602 (398) — — 4,602 (398) SBA loan pools 1,437 (12) 4,280 (1,061) 5,717 (1,073) Municipal bonds — — 498 (62) 498 (62) Total available-for-sale securities $ 19,124 $ (1,107) $ 63,632 $ (19,985) $ 82,756 $ (21,092) As of June 30, 2023 and December 31, 2022, forty-nine of fifty and forty-six of forty-seven available-for-sale securities had unrealized losses with an aggregate decline of (19.7)% and (20.3)% from the amortized cost of those securities, respectively. At June 30, 2023, no allowance for credit losses has been recognized on available for sale debt securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to available for sale debt securities. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities. The Company does not intend to sell these debt securities and it is more likely than not that the Company will not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses are due to increases in market interest rates over the yields available at the time the debt securities were purchased. With regard to U.S. mortgage-backed securities and municipal bonds issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost basis of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities. With regard to corporate bonds, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, and (iv) internal forecasts. Securities under the U.S. Small Business Administration (“SBA”) government guaranteed loan pools program were purchased at a premium and the impairment was attributable primarily to increased prepayment speeds. The timely payment of principal and interest on these securities is guaranteed by the U.S. Government agency. The contractual terms of the subordinated notes do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Furthermore, as of June 30, 2023, there were no past due principal or interest payments associated with these securities. Based upon (i) the issuer’s strong bond ratings and (ii) a zero historical loss rate, no allowance for credit losses has been recorded for available-for-sale securities at June 30, 2023. All debt securities in an unrealized loss position as of June 30, 2023 continue to perform as scheduled and the Company does not believe there is a possible credit loss or that an allowance for credit loss on these debt securities is necessary. As of June 30, 2023 and December 31, 2022, available-for-sale securities of $70.3 million and $30.8 million, respectively, were pledged to the Federal Home Loan Bank ("FHLB") and Federal Reserve Bank (“FRB”). The securities were pledged primarily to secure borrowings from the FHLB and municipal deposits. The following summarizes, by class and contractual maturity, the amortized cost and estimated fair value of available-for-sale debt securities held as of June 30, 2023 and December 31, 2022. The mortgages underlying the mortgage-backed securities are not due at a single maturity date. Additionally, these mortgages often are and generally may be pre-paid without penalty, creating a degree of uncertainty that such investments can be held until maturity. For convenience, mortgage-backed securities have been included in the summary as a separate line item. (In thousands) Amortized Cost Fair Value Due Due After Due Total Due Due After Due Total June 30, 2023: Corporate bonds $ 2,007 $ 15,995 $ — $ 18,002 $ 1,855 $ 11,400 $ — $ 13,255 Subordinated notes 3,000 2,000 — 5,000 2,543 1,693 — 4,236 SBA loan pools — 1,289 5,120 6,409 — 1,276 4,050 5,326 Municipal bonds 154 406 — 560 139 343 — 482 Available-for-sale securities with stated maturity dates 5,161 19,690 5,120 29,971 4,537 14,712 4,050 23,299 U. S. Government agency and mortgage-backed securities — 5,237 76,955 82,192 — 4,134 63,114 67,248 Total available-for-sale securities $ 5,161 $ 24,927 $ 82,075 $ 112,163 $ 4,537 $ 18,846 $ 67,164 $ 90,547 December 31, 2022: Corporate bonds $ 3,778 $ 15,995 $ — $ 19,773 $ 3,721 $ 10,934 $ — $ 14,655 Subordinated notes 3,000 2,000 — 5,000 2,830 1,772 — 4,602 SBA loan pools — 1,449 5,342 6,791 — 1,438 4,280 5,718 Municipal bonds 154 407 — 561 139 360 — 499 Available-for-sale securities with stated maturity dates 6,932 19,851 5,342 32,125 6,690 14,504 4,280 25,474 U. S. Government agency and mortgage-backed securities — 5,276 68,204 73,480 — 4,129 54,917 59,046 Total available-for-sale securities $ 6,932 $ 25,127 $ 73,546 $ 105,605 $ 6,690 $ 18,633 $ 59,197 $ 84,520 |
Loans Receivable and Allowance
Loans Receivable and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Credit Loss [Abstract] | |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses As of June 30, 2023 and December 31, 2022, loans receivable, net, consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Loan portfolio segment: Commercial Real Estate $ 511,655 $ 437,443 Residential Real Estate 116,454 124,140 Commercial and Industrial 171,574 138,787 Consumer and Other 123,063 141,091 Construction 5,525 4,922 Construction to Permanent - CRE 2,463 1,933 Loans receivable, gross 930,734 848,316 Allowance for credit losses (24,098) (10,310) Loans receivable, net $ 906,636 $ 838,006 Patriot's lending activities are conducted principally in: Connecticut; the southern counties of New York including Westchester, Nassau, Suffolk, and the five Boroughs of New York City; and the Northern Counties of New Jersey, including Passaic, Bergen, Essex, Hudson and Union. Patriot originates commercial real estate loans, commercial business loans, a variety of consumer loans, and construction loans, and has purchased residential loans since 2016. All commercial and residential real estate loans are collateralized primarily by first or second mortgages on real estate. The ability and willingness of borrowers to satisfy their loan obligations is dependent to some degree on the status of the regional economy as well as upon the regional real estate market. Accordingly, the ultimate collectability of a substantial portion of the loan portfolio and the recovery of a substantial portion of any resulting real estate acquired is susceptible to changes in market conditions. Patriot has established credit policies applicable to each type of lending activity in which it engages and evaluates the creditworthiness of each borrower. Unless extenuating circumstances exist, Patriot limits the extension of credit on commercial real estate loans to 75% of the market value of the underlying collateral. Patriot’s loan origination policy for multi-family residential real estate is limited to 80% of the market value of the underlying collateral. In the case of construction loans, the maximum loan-to-value is 75% of the “as completed” appraised value of the real estate project. Management monitors the appraised value of collateral on an on-going basis and additional collateral is requested when warranted. Real estate is the primary form of collateral, although other forms of collateral do exist and may include such assets as accounts receivable, inventory, marketable securities, time deposits, and other business assets. Risk characteristics of the Company ’ s portfolio classes include the following: Commercial Real Estate Loans In underwriting commercial real estate loans, Patriot evaluates both the prospective borrower’s ability to make timely payments on the loan and the value of the property securing the loans. Repayment of such loans may be negatively impacted should the borrower default, the value of the property collateralizing the loan substantially decline, or there are declines in general economic conditions. Where the owner occupies the property, Patriot also evaluates the business’ ability to repay the loan on a timely basis and may require personal guarantees, lease assignments, and/or the guarantee of the operating company. During the three and six months ended June 30, 2023, Patriot did not purchase any commercial real estate loans. There were zero and $20.7 million commercial real estate loans purchased during the three and six months ended June 30, 2022, respectively. Residential Real Estate Loans In 2013, Patriot discontinued offering primary mortgages on personal residences. Repayment of residential real estate loans may be negatively impacted should the borrower have financial difficulties, should there be a significant decline in the value of the property securing the loan, or should there be declines in general economic conditions. During the three and six months ended June 30, 2023 and 2022, Patriot did not purchase any residential real estate loans. Commercial and Industrial Loans Patriot’s commercial and industrial loan portfolio consists primarily of commercial business loans and lines of credit to businesses and professionals. These loans are generally for the financing of accounts receivable, purchases of inventory, purchases of new or used equipment, or for other short- or long-term working capital purposes. These loans are generally secured by business assets but are also occasionally offered on an unsecured basis. In granting these types of loans, Patriot considers the borrower’s cash flow as the primary source of repayment, supported by the value of collateral, if any, and personal guarantees, as applicable. Repayment of commercial and industrial loans may be negatively impacted by adverse changes in economic conditions, ineffective management, claims on the borrower’s assets by others that are superior to Patriot’s claims, a loss of demand for the borrower’s products or services, or the death or disability of the borrower or other key management personnel. Patriot’s syndicated and leveraged loan portfolio totaled $5.8 million at both June 30, 2023 and December 31, 2022. The syndicated and leveraged loans are included in the commercial and industrial loan classification and are primarily comprised of loan transactions led by major financial institutions and regional banks, which are the Agent Bank or Lead Arranger, and are referred to as syndicated loans or "Shared National Credits (SNC)". SNC loans were determined to be complementary to the Bank’s existing commercial and industrial loan portfolio and product offerings. Further originations in this loan class are not expected. Consumer and Other Loans Patriot offers individual consumers various forms of credit including installment loans, credit cards, overdraft protection, auto loans and reserve lines of credit. Repayments of such loans are generally dependent on the personal income of the borrower, which may be negatively impacted by adverse changes in economic conditions. The Company does not place a high emphasis on originating these types of loans. The Company has purchased unsecured consumer loans from a third party which are higher yielding loans of 2-5 year terms that are expected to incur an increased level of charge-offs. Loans outstanding under this program at June 30, 2023 and December 31, 2022 totaled $68.3 million and $78.9 million, respectively. Loans purchased under this program totaled $4.3 million and $13.6 million for three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2022, the Bank purchased $32.0 million and $50.4 million unsecured consumer loans, respectively. The Company does not originate any loans commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories that are typically characterized by payment delinquencies, previous charge-offs, judgments against the consumer, a history of bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burdened ratios. During the three and six months ended June 30, 2023, Patriot purchased home equity line of credit loans (“HELOC”) of $1.5 million. During the three and six months ended June 30, 2022, the Bank purchased HELOC loans of $27.7 million. Construction Loans Construction loans are of a short-term nature, generally of eighteen months or less, that are secured by land and improvements intended for commercial, residential, or mixed-use development. Loan proceeds may be used for the acquisition of or improvements to the land under development and funds are generally disbursed as phases of construction are completed. Included in this category are loans to construct single family homes where no contract of sale exists, based upon the experience and financial strength of the builder, the type and location of the property, and other factors. Construction loans tend to be personally guaranteed by the principal(s). Repayment of such loans may be negatively impacted by an inability to complete construction, a downturn in the market for new construction, by a significant increase in interest rates, or by decline in general economic conditions. The construction loans outstanding at June 30, 2023 and December 31, 2022 totaled $5.5 million and $4.9 million, respectively. Construction to Permanent - Commercial Real Estate Loans in this category represent a one-time close of a construction facility with simultaneous conversion to an amortizing mortgage loan. Construction to permanent loans combine a short-term period similar to a construction loan, generally with a variable rate, and a longer term commercial real estate loan typically 20-25 years, resetting every five years to the Federal Home Loan Bank (“FHLB”) rate. Close of the construction facility typically occurs when events dictate, such as receipt of a certificate of occupancy and property stabilization, which is defined as cash flow sufficient to support a predefined minimum debt coverage ratio and other conditions and covenants particular to the loan. Construction facilities are typically variable rate instruments that, upon conversion to an amortizing mortgage loan, reset to a fixed rate instrument that is the greater of the in-force variable rate plus a predetermined spread over a reference rate (e.g., prime) or a minimum interest rate. SBA Loans Patriot originates SBA 7(a) loans, on which the SBA has historically provided guarantees of 75% of the principal balance. However, during the pandemic in 2021, the SBA temporarily increased the guarantees to 90% and reverted to 75% on October 1, 2021. The guaranteed portion of the Company’s SBA loans is generally sold in the secondary market with the unguaranteed portion held in the portfolio as a loan held for investment. SBA loans are for the purpose of providing working capital, financing the purchase of equipment, inventory, or commercial real estate and for other business purposes. Loans are guaranteed by the businesses' major owners. SBA loans are made based primarily on the historical and projected cash flow of the business and secondarily on the underlying collateral provided. SBA loans held for investment are included in the commercial real estate loans and commercial and industrial loan classifications, which totaled $32.8 million and $32.5 million as of June 30, 2023 and December 31, 2022, respectively. During the six months ended June 30, 2023 and 2022, no SBA loans previously classified as held for sale were transferred to held for investment. Small Business Administration Paycheck Protection Program Under the Paycheck Protection Program of the CARES Act, small business loans were authorized to pay payroll and group health costs, salaries and commissions, mortgage and rent payments, utilities, and interest on other debt. The loans are provided through participating financial institutions that process loan applications and service the loans. The Bank participated in the SBA’s Paycheck Protection Program in 2021. Paycheck Protection Program loans totaled $135,000 and $157,000 as of June 30, 2023 and December 31, 2022, respectively, which are included in the commercial and industrial loan classifications. Allowance for Credit Losses As described in Note 2, “Summary of Significant Accounting Policies,” the Company adopted ASU 2016-13 on January 1, 2023, which introduced the CECL methodology for estimating all expected losses over the life of a financial asset. Under the CECL methodology, the ACL is measured on a collective basis for pools of loans with similar risk characteristics. For loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. For all loan segments collectively evaluated, losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable forecast period losses are reverted to long-term historical averages. The estimated loan losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The Company estimates expected credit losses for pooled loans using a modeling method that incorporates probability of default and loss given default. The PD model employs a quarterly risk-rating transition method to estimate the probability of default by simulating loan downgrades and assigning increasing default probabilities to each loan. This captures the likelihood that borrowers will be unable to repay their loans according to the original terms. The LGD calculation considers characteristics such as collateral value and vintage, underlying collateral characteristics (e.g., CRE vs. residential, owner-occupied vs. investment), and other relevant underwriting characteristics. Commercial and industrial loans include risks associated with borrower’s cash flow, debt service coverage and management’s expertise. These loans are subject to the risk that the Company may have difficulty converting collateral to a liquid asset if necessary, as well as risks associated with degree of specialization, mobility and general collectability in a default situation. These commercial loans may be subject to many different types of risks, including fraud, bankruptcy, economic downturn, deteriorated or non-existent collateral, and changes in interest rates. Real estate construction loans include risks associated with the borrower’s credit-worthiness, contractor’s qualifications, borrower and contractor performance, and the overall risk and complexity of the proposed project. Construction lending is also subject to risks associated with sub-market dynamics, including population, employment trends and household income. During times of economic stress, this type of loan has typically had a greater degree of risk than other loan types. Real estate mortgage loans consist of loans secured by commercial and residential real estate. Commercial real estate lending is divided into Investment CRE and Owner-Occupied CRE. Investment CRE is dependent upon successful management, marketing and expense supervision necessary to maintain the property. Repayment of these loans may be adversely affected by conditions in the real estate market or the general economy. Owner-Occupied CRE is utilized by a business for the purpose of providing the space needs for that business and the running of its operations. Repayment is dependent on the cash flow and successful operations of the business. Repayment of these loans may be adversely affected by conditions in the specific owner’s industry. Also, commercial real estate loans typically involve relatively large loan balances to a single borrower. Residential real estate lending risks are generally less significant than those of other loans. Real estate lending risks include fluctuations in the value of real estate, bankruptcies, economic downturn and customer financial problems. Consumer loans carry a moderate degree of risk compared to other loans. They are generally more risky than traditional residential real estate loans and CRE loans, but less risky than many commercial loans and carry generally low relative balances across a diverse borrowing pool. Risk of default is usually determined by the well-being of the local economies. During times of economic stress, there is usually some level of job loss both nationally and locally, which directly affects the ability of the consumer to repay debt. The Company maintains an ACL for credit losses on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the ACL for loans, modified to take into account the probability of a drawdown on the commitment. The ACL on unfunded loan commitments is classified as a liability account on the Consolidated Balance Sheets within other liabilities, while the corresponding provision for these credit losses is recorded as a component of provision for credit losses. The allowance for credit losses on unfunded commitments was $1,495,000 at June 30, 2023. The following tables summarize the activity in the allowance for credit losses, allocated to segments of the loan portfolio, for the three and six months ended June 30, 2023 and allowance for loan and lease losses for three and six months ended June 30, 2022: (In thousands) Commercial Residential Commercial Consumer Construction Construction to Unallocated Total Three Months Ended June 30, 2023 Allowance for credit losses: March 31, 2023 $ 9,809 $ 853 $ 1,799 $ 12,251 $ 21 $ 47 $ — $ 24,780 Charge-offs — — (4) (2,516) (150) — — (2,670) Recoveries — 11 9 260 — — — 280 Provisions (credits) 230 163 (131) 1,280 162 4 — 1,708 -1 June 30, 2023 $ 10,039 $ 1,027 $ 1,673 $ 11,275 $ 33 $ 51 $ — $ 24,098 Three Months Ended June 30, 2022 Allowance for loan and lease losses: March 31, 2022 $ 4,889 $ 1,512 $ 2,860 $ 319 $ 56 $ 9 $ 92 $ 9,737 Charge-offs — — — (100) — — — (100) Recoveries — — 11 6 — — — 17 Provisions (credits) 91 (117) (555) 838 2 6 10 275 June 30, 2022 $ 4,980 $ 1,395 $ 2,316 $ 1,063 $ 58 $ 15 $ 102 $ 9,929 The allowance and provision for the three and six months ended June 30, 2023 are not comparable to prior periods due to the adoption of CECL. (1) The provision on credit losses for three months ended June 30, 2023 does not include the credit on unfunded loan commitments of $383,000 for the three months ended June 30, 2023. (In thousands) Commercial Residential Real Estate Commercial Consumer Construction Construction Unallocated Total Six Months Ended June 30, 2023 Allowance for credit losses: December 31, 2022 $ 6,966 $ 665 $ 1,403 $ 1,207 $ 24 $ 10 $ 35 $ 10,310 Impact of ASC 326 Adoption 1,626 189 219 10,977 (4) 29 (35) 13,001 Charge-offs — — (6) (4,312) (150) — — (4,468) Recoveries — 11 16 433 — — — 460 Provisions 1,447 162 41 2,970 163 12 — 4,795 (2) June 30, 2023 $ 10,039 $ 1,027 $ 1,673 $ 11,275 $ 33 $ 51 $ — $ 24,098 Six Months Ended June 30, 2022 Allowance for loan and lease losses: December 31, 2021 $ 5,063 $ 1,700 $ 2,532 $ 253 $ 78 $ 41 $ 238 $ 9,905 Charge-offs — — (68) (147) (70) — — (285) Recoveries — 1 26 7 — — — 34 (Credits) provisions (83) (306) (174) 950 50 (26) (136) 275 June 30, 2022 $ 4,980 $ 1,395 $ 2,316 $ 1,063 $ 58 $ 15 $ 102 $ 9,929 (2) The provision on credit losses for six months ended June 30, 2023 does not include the credit on unfunded loan commitments of $1.3 million. The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of June 30, 2023: (In thousands) Commercial Residential Commercial Consumer Construction Construction to Unallocated Total June 30, 2023 Allowance for credit losses: Individually evaluated for impairment $ 6,387 $ 196 $ 719 $ — $ — $ — $ — $ 7,302 Collectively evaluated for impairment 3,652 831 954 11,275 33 51 — 16,796 Total allowance for credit losses $ 10,039 $ 1,027 $ 1,673 $ 11,275 $ 33 $ 51 $ — $ 24,098 Loans receivable, gross: Individually evaluated for impairment $ 11,368 $ 2,355 $ 6,582 $ — $ — $ — $ — $ 20,305 Collectively evaluated for impairment 500,287 114,099 164,992 123,063 5,525 2,463 — 910,429 Total loans receivable, gross $ 511,655 $ 116,454 $ 171,574 $ 123,063 $ 5,525 $ 2,463 $ — $ 930,734 The following tables presents the balance in the allowance for loan and lease losses and the recorded investment in loans by portfolio segment based on impairment method as of December 31, 2022: (In thousands) Commercial Residential Commercial Consumer Construction Construction to Unallocated Total December 31, 2022 Allowance for loan and lease losses: Individually evaluated for impairment $ 5,430 $ 5 $ 608 $ — $ — $ — $ — $ 6,043 Collectively evaluated for impairment 1,536 660 795 1,207 24 10 35 4,267 Total allowance for loan losses $ 6,966 $ 665 $ 1,403 $ 1,207 $ 24 $ 10 $ 35 $ 10,310 Loans receivable, gross: Individually evaluated for impairment $ 11,241 $ 2,508 $ 4,653 $ 514 $ — $ — $ — $ 18,916 Collectively evaluated for impairment 426,202 121,632 134,134 140,577 4,922 1,933 — 829,400 Total loans receivable, gross $ 437,443 $ 124,140 $ 138,787 $ 141,091 $ 4,922 $ 1,933 $ — $ 848,316 Patriot monitors the credit quality of its loans receivable on an ongoing basis. Credit quality is monitored by reviewing certain indicators, including cash flow from business operations, loan to value ratios, debt service coverage ratios, and credit scores. Patriot employs a risk rating system as part of the risk assessment of its loan portfolio. At origination, credit officers are required to assign a risk rating to each loan in their portfolio, which is ratified or modified by the Loan Committee to which the loan is submitted for approval. If financial developments occur on a loan in the credit officer’s portfolio of responsibility, the risk rating is reviewed and adjusted, as applicable. In carrying out its oversight responsibilities, the Loan Committee can adjust a risk rating based on available information. In addition, the risk ratings on all commercial loans over $250,000 are reviewed by the Credit Department either annually, biannually, or every 4 years, depending upon the amount of the bank’s exposure and other credit metrics. Additionally, Patriot retains an independent third-party loan review expert to perform a semi-annual analysis of the results of its risk rating process. The semi-annual review is based on a randomly selected sample of loans within established parameters (e.g., value, concentration), in order to assess and validate the risk ratings assigned to individual loans. Any changes to the assigned risk ratings, based on the semi-annual review, are required to be reported to the Audit Committee of the Board of Directors. When assigning a risk rating to a loan, management utilizes the Bank’s internal eleven-point risk rating system. An asset is considered “special mention” when it has a potential weakness based on objective evidence, but does not currently expose the Company to sufficient risk to warrant classification in one of the following categories: • Substandard: An asset is classified “substandard” if it is not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Substandard assets have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss, if noted deficiencies are not corrected. • Doubtful: Assets classified as “doubtful” have all of the weaknesses inherent in those classified as “substandard”, with the added characteristic that the identified weaknesses make collection or liquidation-in-full improbable, on the basis of currently existing facts, conditions, and values. Charge-offs of loans to reduce the loan to its recoverable value that are solely collateral dependent generally occur upon confirmation of the partial loss amount, but may be deferred in certain cases until the credit moves from doubtful to a partial or full loss classification. Loans that are cash flow dependent are modeled to reflect the expected cash flows through expected loan maturity, including any proceeds from refinancing or principal curtailment. A specific reserve is established for the amount by which the net investment in the loan exceeds the present value of discounted cash flows. If either type of loan is classified as "full loss”, meaning full loss on the loan is expected, the full balance of the loan receivable is charged off, regardless of the potential recovery from a sale of the underlying collateral. Any amount that may be recovered on the sale of collateral underlying a loan is recognized as a “recovery” in the period in which the collateral is sold. In accordance with Federal Financial Institutions Examination Council published policies establishing uniform criteria for the classification of retail credit based on delinquency status, “Open-end” and “Closed-end” credits are charged off when 180 days and 90 days delinquent, respectively. The following tables summarize loan amortized cost by vintage, credit quality indicator and class of loans based on year of origination: Term of Loans by Origination As of June 30, 2023: 2023 2022 2021 2020 2019 Prior Revolving Total Loans Loan portfolio segment: Commercial Real Estate: Pass $ 94,387 $ 157,102 $ 129,284 $ 3,728 $ 30,112 $ 69,815 $ — $ 484,428 Special mention — — — — 550 — — 550 Substandard — — — — 21,296 5,381 — 26,677 94,387 157,102 129,284 3,728 51,958 75,196 — 511,655 Residential Real Estate: Pass 18 1,267 3,297 12,081 15,897 80,192 528 113,280 Special mention — — — — — 609 — 609 Substandard — — — — — 2,565 — 2,565 18 1,267 3,297 12,081 15,897 83,366 528 116,454 Commercial and Industrial: Pass 1,470 15,000 24,677 8,312 8,908 7,810 97,560 163,737 Special mention 11 — — — 513 11 — 535 Substandard — 732 938 — 4,295 1,268 69 7,302 1,481 15,732 25,615 8,312 13,716 9,089 97,629 171,574 Consumer and Other: Pass 7,864 53,517 7,026 — 5,992 15,816 32,779 122,994 Substandard — — — — — 69 — 69 7,864 53,517 7,026 — 5,992 15,885 32,779 123,063 Construction: Pass — — 5,033 — — — — 5,033 Substandard — — — — 492 — — 492 — — 5,033 — 492 — — 5,525 Construction to Permanent -CRE: Pass — — 2,463 — — — — 2,463 — — 2,463 — — — — 2,463 Total $ 103,750 $ 227,618 $ 172,718 $ 24,121 $ 88,055 $ 183,536 $ 130,936 $ 930,734 Loans receivable, gross: Pass $ 103,739 $ 226,886 $ 171,780 $ 24,121 $ 60,909 $ 173,633 $ 130,867 $ 891,935 Special mention 11 — — — 1,063 620 — 1,694 Substandard — 732 938 — 26,083 9,283 69 37,105 Loans receivable, gross $ 103,750 $ 227,618 $ 172,718 $ 24,121 $ 88,055 $ 183,536 $ 130,936 $ 930,734 Loan Portfolio Aging Analysis The following tables summarize performing and non-performing (i.e., non-accruing) loans receivable by portfolio segment, by aging category, by delinquency status as of June 30, 2023. (In thousands) Performing (Accruing) Loans As of June 30, 2023: 30 - 59 60 - 89 90 Days Total Current Total Non- Loans Loan portfolio segment: Commercial Real Estate: Pass $ 3,284 $ — $ — $ 3,284 $ 481,144 $ 484,428 $ — $ 484,428 Special mention — — — — 550 550 — 550 Substandard 322 — — 322 14,987 15,309 11,368 26,677 3,606 — — 3,606 496,681 500,287 11,368 511,655 Residential Real Estate: Pass 1,054 74 330 1,458 111,822 113,280 — 113,280 Special mention — — — — 609 609 — 609 Substandard — — — — — — 2,565 2,565 1,054 74 330 1,458 112,431 113,889 2,565 116,454 Commercial and Industrial: Pass 1,678 — 230 1,908 161,829 163,737 — 163,737 Special mention — — — — 535 535 — 535 Substandard — 541 — 541 106 647 6,655 7,302 1,678 541 230 2,449 162,470 164,919 6,655 171,574 Consumer and Other: Pass 1,397 1,543 868 3,808 119,186 122,994 — 122,994 Substandard — — — — 23 23 46 69 1,397 1,543 868 3,808 119,209 123,017 46 123,063 Construction: Pass — — — — 5,033 5,033 — 5,033 Substandard — — — — 492 492 — 492 — — — — 5,525 5,525 — 5,525 Construction to Permanent - CRE: Pass — — — — 2,463 2,463 — 2,463 — — — — 2,463 2,463 — 2,463 Total $ 7,735 $ 2,158 $ 1,428 $ 11,321 $ 898,779 $ 910,100 $ 20,634 $ 930,734 Loans receivable, gross: Pass $ 7,413 $ 1,617 $ 1,428 $ 10,458 $ 881,477 $ 891,935 $ — $ 891,935 Special mention — — — — 1,694 1,694 — 1,694 Substandard 322 541 — 863 15,608 16,471 20,634 37,105 Loans receivable, gross $ 7,735 $ 2,158 $ 1,428 $ 11,321 $ 898,779 $ 910,100 $ 20,634 $ 930,734 The following tables summarize performing and non-performing loans (i.e., non-accruing) receivable by portfolio segment, by aging category, by delinquency status as of December 31, 2022. (In thousands) Performing (Accruing) Loans As of December 31, 2022: 30 - 59 Days 60 - 89 Days 90 Days Total Current Total Non-accruing Loans Loan portfolio segment: Commercial Real Estate: Pass $ — $ — $ — $ — $ 401,313 $ 401,313 $ — $ 401,313 Special mention — — — — 24,559 24,559 — 24,559 Substandard 330 — — 330 — 330 11,241 11,571 330 — — 330 425,872 426,202 11,241 437,443 Residential Real Estate: Pass 330 — — 330 120,715 121,045 — 121,045 Special mention — — — — 625 625 — 625 Substandard — — — — — — 2,470 2,470 330 — — 330 121,340 121,670 2,470 124,140 Commercial and Industrial: Pass 2 — 230 232 131,092 131,324 — 131,324 Special mention — — — — 597 597 — 597 Substandard 1,488 412 — 1,900 133 2,033 4,833 6,866 1,490 412 230 2,132 131,822 133,954 4,833 138,787 Consumer and Other: Pass 929 3,175 925 5,029 135,990 141,019 — 141,019 Substandard — — — — 23 23 49 72 929 3,175 925 5,029 136,013 141,042 49 141,091 Construction: Pass 895 — — 895 3,503 4,398 — 4,398 Special mention — — — — 524 524 — 524 895 — — 895 4,027 4,922 — 4,922 Construction to Permanent - CRE: Pass — — — — 1,933 1,933 — 1,933 — — — — 1,933 1,933 — 1,933 Total $ 3,974 $ 3,587 $ 1,155 $ 8,716 $ 821,007 $ 829,723 $ 18,593 $ 848,316 Loans receivable, gross: Pass $ 2,156 $ 3,175 $ 1,155 $ 6,486 $ 794,546 $ 801,032 $ — $ 801,032 Special mention — — — — 26,305 26,305 — 26,305 Substandard 1,818 412 — 2,230 156 2,386 18,593 20,979 Loans receivable, gross $ 3,974 $ 3,587 $ 1,155 $ 8,716 $ 821,007 $ 829,723 $ 18,593 $ 848,316 The following tables summarize non-performing (i.e., non-accruing) loans by aging category and status, within the applicable loan portfolio segment as of June 30, 2023 and December 31, 2022: (In thousands) Non-accruing Loans 30 - 59 60 - 89 90 Days or Total Current Total As of June 30, 2023: Loan portfolio segment: Commercial Real Estate: Substandard $ — $ — $ 11,368 $ 11,368 $ — $ 11,368 Residential Real Estate: Substandard 89 71 1,795 1,955 610 2,565 Commercial and Industrial: Substandard 940 — 5,570 6,510 145 6,655 Consumer and Other: Substandard — — 26 26 20 46 Total non-accruing loans $ 1,029 $ 71 $ 18,759 $ 19,859 $ 775 $ 20,634 As of December 31, 2022: Loan portfolio segment: Commercial Real Estate: Substandard $ — $ — $ 11,241 $ 11,241 $ — $ 11,241 Residential Real Estate: Substandard 657 — 1,796 2,453 17 2,470 Commercial and Industrial: Substandard 46 395 3,196 3,637 1,196 4,833 Consumer and Other: Substandard — — 27 27 22 49 Total non-accruing loans $ 703 $ 395 $ 16,260 $ 17,358 $ 1,235 $ 18,593 The accrual of interest on loans is discontinued at the time the loan is 90 days past due for payment unless the loan is well-secured and in process of collection. Consumer installment loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual status or charged-off, at an earlier date, if collection of principal or interest is considered doubtful. All interest accrued, but not collected for loans that are placed on non-accrual status or charged off, is reversed against interest income. The interest on these loans is accounted for on the cash-basis method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, future payments are reasonably assured, after at least six months of timely payment history. The Bank considers loans under $100,000 and consumer installment loans to be pools of smaller homogeneous loan balances, and therefore are collectively evaluated for impairment, and not individually measured for impairment. If non-accrual loans had been performing in accordance with the original contractual terms, additional interest income (net of cash collected) of approximately $133,000 and $268,000 would have been recognized during the three and six months ended June 30, 2023, respectively. During the three and six months ended June 30, 2022, additional interest income (net of cash collected) of approximately $115,000 and $221,000 would have been recognized, respectively. Interest income collected and recognized on non-accruing loans for the three and six months ended June 30, 2023 was $193,000 and $336,000, respectively. During the three and six months ended June 30, 2022, interest income collected and recognized on non-accruing loans was $114,000 and $204,000, respectively. Individually Evaluated Loans The following table reflects information about the individually evaluated loans by class as of June 30, 2023 and December 31, 2022: (In thousands) June 30, 2023 December 31, 2022 Recorded Principal Related Recorded Investment Principal Outstanding Related Allowance With no related allowance recorded: Commercial Real Estate $ 387 $ 430 $ — $ 2,435 $ 2,428 $ — Residential Real Estate 732 872 — 2,402 2,224 — Commercial and Industrial 1,859 2,223 — 1,939 2,424 — Consumer and Other — — — 514 514 — 2,978 3 |
Loans Held for Sale
Loans Held for Sale | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans Held for Sale | Loans Held for Sale Loans held for sale represent the guaranteed portion of SBA loans originated and are reflected at the lower of aggregate cost or market value. As of June 30, 2023, SBA loans held for sale was $5.9 million, consisting of $2.3 million SBA commercial and industrial loans and $3.6 million SBA commercial real estate loans, respectively. There were $5.2 million of SBA loans held for sale at December 31, 2022, consisting of $3.1 million SBA commercial and industrial loans and $2.1 million SBA commercial real estate loans. During the three and six months ended June 30, 2023 and 2022, no SBA loans previously classified as held for sale were transferred to held for investment. The Company generally sells the guaranteed portion of its SBA loans to a third party and retains the servicing, holding the unguaranteed portion in its portfolio. When sales of SBA loans do occur, the premium received on the sale and the present value of future cash flows of the servicing assets, less the discount of the retained portion of the loan are recognized in income. Servicing assets represent the estimated fair value of retained servicing rights, net of servicing costs, at the time loans are sold. Servicing assets are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment will be evaluated based on stratifying the underlying financial assets by date of origination and term. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment, if temporary, would be reported as a valuation allowance. Serviced loans sold to others are not included in the accompanying Consolidated Balance Sheets. The total amount of such loans serviced, but owned by third party, amounted to approximately $47.5 million and $47.3 million at June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, the servicing asset has a carrying value of $882,000 and $886,000, respectively, and fair value of $977,000 and $1.0 million, respectively. Income and fees collected for loan servicing are credited to noninterest income when earned, net of amortization on the related servicing assets. The servicing asset is included in other assets on the Consolidated Balance Sheets. The following table presents an analysis of the activity in the SBA servicing assets for the three and six months ended June 30, 2023 and 2022: (In thousands) Three Month Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 893 $ 626 $ 886 $ 584 Servicing rights capitalized 24 79 58 131 Servicing rights amortized (11) (12) (22) (20) Servicing rights disposed (24) (8) (40) (10) Ending balance $ 882 $ 685 $ 882 $ 685 |
Business Combination, Goodwill
Business Combination, Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination, Goodwill and Other Intangible Assets | Business Combination, Goodwill and Other Intangible Assets The Company completed its acquisition of Prime Bank in May 2018, and recorded goodwill balance was $1.1 million as of June 30, 2023 and December 31, 2022. Goodwill is evaluated for impairment annually, in the fourth quarter of the year, or whenever we identify certain triggering events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Events or circumstances that might indicate an interim evaluation is warranted include, among other things, unexpected adverse business conditions, macro and reporting unit specific economic factors, supply costs, unanticipated competitive activities, and acts by governments and courts. The Company did not perform an interim goodwill test in the first six months of 2023 as no events occurred which would trigger an impairment assessment. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Deposits | Deposits The following table presents the balance of deposits held, by category as of June 30, 2023 and December 31, 2022. (In thousands) June 30, 2023 December 31, 2022 Non-interest bearing $ 127,817 $ 269,636 Interest bearing: Negotiable order of withdrawal accounts 37,970 34,440 Savings deposits 50,981 71,002 Money market deposits 298,717 211,000 Certificates of deposit, less than $250,000 182,680 165,793 Certificates of deposit, $250,000 or greater 56,088 59,877 Brokered deposits 109,126 48,698 Interest bearing, Total 735,562 590,810 Total Deposits $ 863,379 $ 860,446 The prepaid debit card deposits are included in the non-interest-bearing deposits and money market deposits, which totaled approximately $158.1 million and $197.3 million as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, contractual maturities of Certificates of Deposit (“CDs”), and brokered deposits is summarized as follows: (In thousands) CDs CDs Brokered Total 1 year or less $ 136,053 $ 45,467 $ 104,517 $ 286,037 More than 1 year through 2 years 29,447 9,362 4,358 43,167 More than 2 years through 3 years 4,887 1,259 251 6,397 More than 3 years through 4 years 496 — — 496 More than 4 years through 5 years 11,797 — — 11,797 $ 182,680 $ 56,088 $ 109,126 $ 347,894 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Derivatives Not Designated in Hedge Relationships Patriot is a party to four interest rate swaps derivatives that are not designated as hedging instruments. Under a program, Patriot will execute interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Patriot executes with a third party, such that Patriot minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties. Patriot entered into two initial interest rate swaps under the program in November 2018, and another two swaps were entered into in May 2019 . As of June 30, 2023 and December 31, 2022 , Patriot did not have any cash pledged for collateral on its interest rate swaps. The Company did not recognize any net gain or loss in other noninterest income on the Consolidated Statements of Operations during the three and six months ended June 30, 2023 and 2022. Derivatives Designated in Hedge Relationships Interest rate swaps allow the Company to change the fixed or variable nature of an interest rate without the exchange of the underlying notional amount. In April 2021 , Patriot entered into an interest rate swap, which was designated as a cash flow hedge that effectively converted variable-rate receivable into fixed-rate receivable. The Company’s objectives in using the cash flow hedge are to add stability to interest receivable and to manage its exposure to contractually specified interest rate movements. Under the term of the swap contract, the Company hedged the cash flows associated with a pool of 1-month LIBOR floating rate loans by converting a $50 million portion of that pool of loans into fixed rates with the swap. The Bank received fixed and paid floating rate based on 1 month LIBOR for a 7-year rolling period beginning April 29, 2021. A hedging instrument is expected at inception to be highly effective at offsetting changes in the hedged transactions attributable to the changes in the hedged risk. Changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. In August 2021, the cash flow hedge interest rate swap contract was terminated. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The Company does not offset derivative assets and derivative liabilities for financial statement presentation purposes. Information about the valuation methods used to measure the fair value of derivatives is provided in Note 13 to the Consolidated Financial Statements. The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands): (In thousands) Notional Maturity Fixed Rate Variable Fair Value June 30, 2023 Classified in Other Assets: 3rd party interest rate swap $ 4,680 5.84 5.25 % 1 Mo. LIBOR + 1.96% $ 146 3rd party interest rate swap 1,346 6.00 4.38 % 1 Mo. LIBOR + 2.00% 98 Classified in Other Liabilities: Customer interest rate swap $ 4,680 5.84 5.25 % 1 Mo. LIBOR + 1.96% $ (146) Customer interest rate swap 1,346 6.00 4.38 % 1 Mo. LIBOR + 2.00% (98) December 31, 2022 Classified in Other Assets: 3rd party interest rate swap $ 4,736 6.30 5.25 % 1 Mo. LIBOR + 1.96% $ 106 3rd party interest rate swap 1,363 6.50 4.38 % 1 Mo. LIBOR + 2.00% 97 Classified in Other Liabilities: Customer interest rate swap $ 4,736 6.30 5.25 % 1 Mo. LIBOR + 1.96% $ (106) Customer interest rate swap 1,363 6.50 4.38 % 1 Mo. LIBOR + 2.00% (97) |
Share-based Compensation and Em
Share-based Compensation and Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation and Employee Benefit Plan | Share-Based Compensation and Employee Benefit Plan In 2011, the Company adopted the Patriot National Bancorp, Inc. 2012 Stock Plan (the “2012 Plan”). The 2012 Plan was amended in 2020 and renamed as the Patriot National Bancorp, Inc. 2020 Restricted Stock Award Plan (the “2020 Plan”). A copy of the 2020 Plan was filed as Exhibit 10.1 to the Company’s Amendment No. 1 to Annual Report on Form 10-K/A for the year ended December 31, 2020 filed on April 30, 2021. The 2020 Plan provides an incentive to directors and employees of the Company by the grant of restricted stock awards (“RSA”).On November 10, 2022, the Board of Directors approved the Amendment and Restatement of the 2020 Plan (the “Amended and Restated 2020 Plan”), which was approved and ratified by shareholders of the Company on December 14, 2022. The 2020 Plan was amended primarily to (i) reduce the total number of shares authorized for issuance thereunder from 3,000,000 shares to 400,000 shares; and (ii) limit the maximum number of shares of Company’s Common Stock granted during a single fiscal year to any non-employee director, together with any cash fees paid to such director, to be no more than a total value of $300,000. As of June 30, 2023, 234,617 shares of stock were available for issuance under the Plan. In accordance with the terms of the Plan, the vesting of RSAs may be accelerated at the discretion of the Compensation Committee of the Board of Directors. The Compensation Committee sets the terms and conditions applicable to the vesting of RSAs. RSAs granted to directors and employees generally vest in quarterly or annual installments over a three four The following is a summary of the status of the Company’s restricted shares and changes for the three and six months ended June 30, 2023 and 2022: Three months ended June 30, 2023: Number of Weighted Average Unvested at March 31, 2023 22,660 $7.11 Unvested at June 30, 2023 22,660 $7.11 Six months ended June 30, 2023: Unvested at December 31, 2022 22,660 $7.11 Unvested at June 30, 2023 22,660 $7.11 Three months ended June 30, 2022 Number of Weighted Average Unvested at March 31, 2022 21,468 $6.48 Granted 2,496 $17.25 Vested (777) $18.55 Unvested at June 30, 2022 23,187 $7.24 Six months ended June 30, 2022: Unvested at December 31, 2021 21,468 $6.48 Granted 2,496 $17.25 Vested (777) $18.55 Unvested at June 30, 2022 23,187 $7.24 The Company recognizes compensation expense for all director and employee share-based compensation awards on a straight-line basis over the requisite service period, which is equal to the vesting schedule of each award, for each vesting portion of an award equal to its grant date fair value. For the three and six months ended June 30, 2023, the Company recognized total share-based compensation expense of $23,000 and $46,000, respectively. The share-based compensation attributable to employees of Patriot amounted to $14,000 and $28,000, respectively. Included in share-based compensation expense attributable to Patriot’s external directors, were $9,000 and $18,000, respectively. The directors received total compensation of $53,000 and $108,000 respectively, which amounts are included in other operating expenses in the consolidated statements of operations. For the three and six months ended June 30, 2022, the Company recognized total share-based compensation expense of $20,000 and 41,000, respectively. The share-based compensation attributable to employees of Patriot amounted to $8,000 and $16,000, respectively. Included in share-based compensation expense were $12,000 and $25,000 attributable to Patriot’s external directors, who received total compensation of $37,000 and $100,000 for each of those periods, respectively. Dividends The Company has not paid any dividends since 2020 and has no present plans to pay dividends. Retirement Plan Patriot offers employees participation in the Patriot Bank, N.A. 401(k) Savings Plan (the "401(k) Plan") under Section 401(k) of the Internal Revenue Code, along with the ROTH feature to the Plan. The 401(k) Plan covers substantially all employees who have completed one month of service, are 21 years of age and who elect to participate. Under the terms of the 401(k) Plan, participants can contribute up to the maximum amount allowed, subject to Federal limitations. At its discretion, Patriot may match eligible participating employee contributions at the rate of 50% of the first 6% of the participants’ salary contributed to the 401(k) Plan. During the three and six months ended June 30, 2023, Patriot made matching contributions to the 401(k) Plan of $82,000 and $157,000, respectively. During the three and six months ended June 30, 2022, compensation expense under the 401(k) aggregated $67,000 and $141,000, respectively. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The Company is required to present basic earnings per share and diluted earnings per share in its Consolidated Statements of Operations. Basic earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share reflects additional shares of common stock that would have been outstanding if potentially dilutive shares of common stock had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential shares of common stock that may be issued by the Company relate to outstanding unvested RSAs granted to directors and employees. The dilutive effect resulting from these potential shares is determined using the treasury stock method. The Company is also required to provide a reconciliation of the numerator and denominator used in the computation of both basic and diluted earnings per share. The following table summarizes the computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022: (Net income in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Basis (loss) earnings per share: Net (loss) income attributable to Common shareholders $ (615) $ 1,265 $ (1,314) $ 2,065 Divided by: Weighted average shares outstanding 3,965,186 3,957,260 3,965,186 3,956,878 Basic (loss) earnings per share of common stock $ (0.16) $ 0.32 $ (0.33) $ 0.52 Diluted (loss) earnings per share: Net (loss) income attributable to Common shareholders $ (615) $ 1,265 $ (1,314) $ 2,065 Weighted average shares outstanding 3,965,186 3,957,260 3,965,186 3,956,878 Effect of potentially dilutive restricted shares of common stock — (1) 9,819 — (2) 8,395 Divided by: Weighted average diluted shares outstanding 3,965,186 3,967,079 3,965,186 3,965,273 Diluted (loss) earnings per share of common stock $ (0.16) $ 0.32 $ (0.33) $ 0.52 (1) The weighted average diluted shares outstanding does not include 1,528 anti-dilutive restricted shares of common stock for the three months ended June 30, 2023. (2) The weighted average diluted shares outstanding does not include 427 anti-dilutive restricted shares of common stock for the six months ended June 30, 2023. |
Financial Instruments With Off-
Financial Instruments With Off-balance Sheet Risk | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | Financial Instruments with Off-Balance Sheet Risk In the normal course of business, Patriot is a party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheet. The contractual amounts of these instruments reflect the extent of involvement Patriot has in particular classes of financial instruments. The contractual amount of commitments to extend credit and standby letters of credit represents the maximum amount of potential accounting loss should: the contract be fully drawn upon; the customer default; and the value of any existing collateral become worthless. Patriot applies its credit policies to entering commitments and conditional obligations and, as with its lending activates, evaluates each customer’s creditworthiness on a case-by-case basis. Management believes that it effectively mitigates the credit risk of these financial instruments through its credit approval processes, establishing credit limits, monitoring the on-going creditworthiness of recipients and grantees, and the receipt of collateral as deemed necessary. Financial instruments with credit risk at June 30, 2023 and December 31, 2022 are as follows: (In thousands) June 30, 2023 December 31, 2022 Commitments to extend credit: Unused lines of credit $ 97,432 $ 100,986 Undisbursed construction loans 4,849 12,000 Home equity lines of credit 29,134 26,878 Future loan commitments 300 14,365 Financial standby letters of credit — 78 $ 131,715 $ 154,307 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments to extend credit generally have fixed expiration dates or other termination clauses, and may require payment of a fee by the borrower. Since these commitments could expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary upon extending credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include commercial property, residential property, deposits and securities. Patriot has established an allowance for credit loss of $1.5 million and $8,000 as of June 30, 2023 and December 31, 2022, respectively, which is included in accrued expenses and other liabilities. The increase in allowance for credit loss in 2023 is primarily due to the adoption of CECL. Standby letters of credit are written commitments issued by Patriot to guarantee the performance of a customer to a third party. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. Guarantees that are not derivative contracts are recorded at fair value and included in the Consolidated Balance Sheet. |
Regulatory and Operational Matt
Regulatory and Operational Matters | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Regulatory and Operational Matters | Regulatory and Operational Matters Federal and state regulatory authorities have adopted standards requiring financial institutions to maintain increased levels of capital. Effective January 1, 2015, federal banking agencies imposed four minimum capital requirements on a community bank’s risk-based capital ratios consisting of Total Capital, Tier 1 Capital, Common Equity Tier 1 (“CET1”) Capital, and a Tier 1 Leverage Capital ratio. The risk-based capital ratios measure the adequacy of a bank's capital against the riskiness of its on- and off-balance sheet assets and activities. Failure to maintain adequate capital is a basis for "prompt corrective action" or other regulatory enforcement action. In assessing a bank's capital adequacy, regulators also consider other factors such as interest rate risk exposure, liquidity, funding and market risks, quality and level of earnings, concentrations of credit, quality of loans and investments, nontraditional activity risk, policy effectiveness, and management's overall ability to monitor and control risk. In September 2019, the community bank leverage ratio (“CBLR”) framework was jointly issued by the Federal Deposit Insurance Corporation ("FDIC"), the Office of the Comptroller of the Currency (“OCC”) and FRB. The final rule gives qualifying community banks the option to use a simplified measure of capital adequacy instead of risk based capital, beginning with their March 31, 2020 Call Report. Under the final rule a community bank may qualify for the CBLR framework if it has a Tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance sheet exposures and trading assets and liabilities. The CARES Act directed the federal banking agencies to issue an interim rule temporarily lowering the CBLR ratio to 8% which the agencies did with a transition back to 9% beginning January 1, 2022. Capital adequacy is one of the most important factors used to determine the safety and soundness of individual banks and the banking system. A community bank which meets the leverage ratio requirement and other CBLR framework requirements will not be subject to other capital and leverage requirements and will be considered “well capitalized.” In September 2021, the Bank elected to adopt the CBLR framework. The Bank’s Tier 1 leverage ratio as of June 30, 2023 and December 31, 2022 was 8.54% and 9.27%, respectively. The required leverage ratio is 9.00% under the CBLR framework. The Bank continues to be classified as "well capitalized" under the CBLR framework as the leverage ratio remains above 8% and the Bank has elected to use the two-quarter grace period provided under the framework. Per the CBLR framework, at the conclusion of the grace period (December 31, 2023), it is the Bank's intention to either meet all qualifying criteria to remain in the CBLR framework, or to comply with the generally applicable BASEL III capital rules and the associated reporting requirements. Management continuously assesses the adequacy of the Bank’s capital in order to maintain its “well capitalized” status. The Bank’s Community Bank Leverage Ratio regulatory capital amounts and ratios at June 30, 2023 and December 31, 2022 are summarized as follows: (In thousands) June 30, 2023 December 31, 2022 Patriot Bank, N.A. Amount Ratio Amount Ratio Tier 1 Leverage Capital (to average assets): Actual $ 94,871 8.54 % $ 100,267 9.27 % Designation as "Well Capitalized" does not apply to bank holding companies (the Company). Such categorization of capital adequacy only applies to insured depository institutions (the Bank). |
Fair Value and Interest Rate Ri
Fair Value and Interest Rate Risk | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value and Interest Rate Risk | Fair Value and Interest Rate Risk Patriot measures the carrying value of certain financial assets and liabilities at fair value, as required by its policies as a financial institution and by US GAAP. The carrying values of certain assets and liabilities are measured at fair value on a recurring basis, such as available-for-sale securities; while other assets and liabilities are measured at fair value on a non-recurring basis due to external factors requiring management’s judgment to estimate potential losses of value resulting in asset impairments or the establishment of valuation reserves. Measuring assets and liabilities at fair value may result in fluctuations to carrying value that have a significant impact on the results of operations or other comprehensive income for the period and period over period. Following is a detailed summary of the guidance provided by US GAAP regarding the application of fair value measurements and Patriot’s application thereof. Additionally, the following information includes detailed summaries of the effects fair value measurements have on the carrying amounts of asset and liabilities presented in the Consolidated Financial Statements. The objective of fair value measurement is to value an asset that may be sold or a liability that may be transferred at the estimated value which might be obtained in a transaction between unrelated parties under current market conditions. US GAAP establishes a framework for measuring assets and liabilities at fair value, as well as certain financial instruments classified in equity. The framework provides a fair value hierarchy, which prioritizes quoted prices in active markets for identical assets and liabilities and minimizes unobservable inputs, which are inputs for which market data are not available and that are developed by management using the best information available to develop assumptions about the value market participants might place on the asset to be sold or liability to be transferred. The three levels of the fair value hierarchy consist of: Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that the entity has the ability to access at the measurement date (such as active exchange-traded equity securities and certain U.S. and government agency debt securities). Level 2 - Observable inputs other than quoted prices included in Level 1, such as: – Quoted prices for similar assets or liabilities in active markets (such as U.S. agency and government sponsored mortgage-backed securities) – Quoted prices for identical or similar assets or liabilities in less active markets (such as certain U.S. and government agency debt securities, and corporate and municipal debt securities that trade infrequently) – Other inputs that are observable for substantially the full term of the asset or liability (i.e. interest rates, yield curves, prepayment speeds, default rates, etc.). Level 3 - Valuation techniques that require unobservable inputs that are supported by little or no market activity and are significant to the fair value measurement of the asset or liability (such as pricing and discounted cash flow models that typically reflect management’s estimates of the assumptions a market participant would use in pricing the asset or liability). A description of the valuation methodologies used for assets and liabilities recorded at fair value, and for estimating fair value for financial and non-financial instruments not recorded at fair value, is set forth below. Cash and due from banks and accrued interest receivable and payable The carrying amount is a reasonable estimate of fair value and accordingly these are classified as Level 1. These financial instruments are not recorded at fair value on a recurring basis. Available-for-sale securities The fair value of securities available for sale (carried at fair value) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities' relationship to other benchmark quoted prices, or using unobservable inputs employing various techniques and assumptions (Level 3). Other Investments The Bank’s investment portfolio includes the Solomon Hess SBA Loan Fund, which is utilized by the Bank to satisfy its Community Reinvestment Act (“CRA”) lending requirements. As this fund operates as a private fund, shares in the fund are not publicly traded but may be redeemed with 60 days’ notice at cost. For that reason, the carrying amount was considered comparable to fair value at both June 30, 2023 and December 31, 2022 due to its short-term nature. Federal Reserve Bank Stock and Federal Home Loan Bank Stock Shares in the FRB and FHLB are purchased and redeemed based upon their $100 par value. The stocks are non-marketable equity securities, and as such, are considered restricted securities that are carried at cost. Loans The fair value of loan portfolio is estimated by discounting the future cash flows using the rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. We estimate the fair value of our loan portfolio using an exit price notion resulting in prior periods no longer being comparable. The exit price notion requires determination of the price at which willing market participants would transact at the measurement date under current market conditions depending on facts and circumstances, such as origination rates, credit risk, transaction costs, liquidity, national and regional market trends and other adjustments, utilizing publicly available rates and indices. The application of an exit price notion requires the use of significant judgment. Loans Held for Sale The fair value of loans held for sale is estimated by using a market approach that includes prices for loans sold awaiting settlement and other observable inputs. The Company has determined that the inputs used to value the loans held for sale fall within Level 2 of the fair value hierarchy. SBA Servicing Asset Servicing assets do not trade in an active, open market with readily observable prices. The Company estimates the fair value of servicing assets using discounted cash flow models incorporating numerous assumptions from the perspective of a market participant including market discount rates and prepayment speeds. Due to the significant unobservable input related to the servicing rights, the SBA servicing asset is classified within Level 3 of the valuation hierarchy. Derivative asset (liability) - Interest Rate Swaps The Company’s derivative assets and liabilities consist of transactions as part of management’s strategy to manage interest rate risk. The valuation of interest rate swap agreements does not contain any counterparty risk. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy. See Note 8 for additional disclosures on derivatives. Deposits The fair value of demand deposits, regular savings and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit and other time deposits is estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities, estimated using local market data, to a schedule of aggregated expected maturities on such deposits. Patriot does not record deposits at fair value on a recurring basis. Senior Notes, Subordinated Notes, and Junior Subordinated Debt and Note Payable Patriot does not record senior notes at fair value on a recurring basis. The fair value of the senior notes was estimated by discounting future cash flows at rates at which similar notes would be made. The carrying value is considered comparable to fair value. Patriot does not record subordinated notes at fair value on a recurring basis. The fair value of the subordinated notes was estimated by discounting future cash flows at rates at which similar notes would be made. The carrying value is considered comparable to fair value. Patriot does not record junior subordinated debt at fair value on a recurring basis. Junior subordinated debt reprices quarterly, as a result, the carrying amount is considered a reasonable estimate of fair value. The Company considers its own credit worthiness in determining the fair value of its senior notes, subordinated notes, notes payable and junior subordinated debt. Federal Home Loan Bank Borrowings The fair value of FHLB advances is estimated using a discounted cash flow calculation that applies current FHLB interest rates for advances of similar maturity to a schedule of maturities of such advances. Patriot does not record FHLB advances at fair value on a recurring basis. Off-balance sheet financial instruments Off-balance sheet financial instruments are based on interest rate changes and fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Patriot does not record the off-balance-sheet financial instruments (i.e., commitments to extend credit) at fair value on a recurring basis. The following table provides a comparison of the carrying amounts and estimated fair values of Patriot’s financial assets and liabilities as of June 30, 2023 and December 31, 2022: (In thousands) June 30, 2023 December 31, 2022 Fair Value Carrying Estimated Carrying Estimated Financial Assets: Cash and noninterest bearing balances due from banks Level 1 $ 2,320 $ 2,320 $ 5,182 $ 5,182 Interest-bearing deposits due from banks Level 1 68,489 68,489 33,311 33,311 Available-for-sale securities Level 2 80,665 80,665 75,093 75,093 Available-for-sale securities Level 3 9,882 9,882 9,427 9,427 Other investments Level 2 4,450 4,450 4,450 4,450 Federal Reserve Bank stock Level 2 2,523 2,523 2,627 2,627 Federal Home Loan Bank stock Level 2 8,072 8,072 3,874 3,874 Loans receivable, net Level 3 906,636 893,639 838,006 818,960 Loans held for sale Level 2 5,860 6,320 5,211 5,534 SBA servicing assets Level 3 882 977 886 1,013 Accrued interest receivable Level 2 7,628 7,628 7,267 7,267 Interest rate swap receivable Level 2 244 244 203 203 Financial assets, total $ 1,097,651 $ 1,085,209 $ 985,537 $ 966,941 Financial Liabilities: Demand deposits Level 2 $ 127,817 $ 127,817 $ 269,636 $ 269,636 Savings deposits Level 2 50,981 50,981 71,002 71,002 Money market deposits Level 2 298,717 298,717 211,000 211,000 Negotiable order of withdrawal accounts Level 2 37,970 37,970 34,440 34,440 Time deposits Level 2 238,768 235,475 225,670 221,353 Brokered deposits Level 1 109,126 108,641 48,698 47,684 FHLB and other borrowings Level 2 207,000 205,964 85,000 83,853 Senior notes Level 2 11,653 11,127 11,640 11,103 Subordinated debt Level 2 9,854 9,826 9,840 9,680 Junior subordinated debt owed to unconsolidated trust Level 2 8,132 8,132 8,128 8,128 Note payable Level 3 481 455 585 544 Accrued interest payable Level 2 1,117 1,117 585 585 Interest rate swap liability Level 2 244 244 203 203 Financial liabilities, total $ 1,101,860 $ 1,096,466 $ 976,427 $ 969,211 The carrying amount of cash and noninterest bearing balances due from banks, interest-bearing deposits due from banks, and demand deposits approximates fair value, due to the short-term nature and high turnover of these balances. These amounts are included in the table above for informational purposes. In the normal course of its operations, Patriot assumes interest rate risk (i.e., the risk that general interest rate levels will fluctuate). As a result, the fair value of Patriot’s financial assets and liabilities are affected when interest market rates change, which change may be either favorable or unfavorable. Management attempts to mitigate interest rate risk by matching the maturities of its financial assets and liabilities. However, borrowers with fixed rate obligations are less likely to prepay their obligations in a rising interest rate environment and more likely to prepay their obligations in a falling interest rate environment. Conversely, depositors receiving fixed rates are more likely to withdraw funds before maturity in a rising interest rate environment and less likely to do so in a falling interest rate environment. Management monitors market rates of interest and the maturities of its financial assets and financial liabilities, adjusting the terms of new loans and deposits in an attempt to minimize interest rate risk. Additionally, management mitigates its overall interest rate risk through its available funds investment strategy. The following tables detail the financial assets measured at fair value on a recurring basis and the valuation techniques utilized relative to the fair value hierarchy, as of June 30, 2023 and December 31, 2022: (In thousands) Quoted Prices in Significant Significant Total June 30, 2023: U. S. Government agency and mortgage-backed securities $ — $ 67,248 $ — $ 67,248 Corporate bonds — 3,373 9,882 13,255 Subordinated notes — 4,236 — 4,236 SBA loan pools — 5,326 — 5,326 Municipal bonds — 482 — 482 Available-for-sale securities $ — $ 80,665 $ 9,882 $ 90,547 Interest rate swap receivable $ — $ 244 $ — $ 244 Interest rate swap liability $ — $ 244 $ — $ 244 December 31, 2022: U. S. Government agency and mortgage-backed securities $ — $ 59,046 $ — $ 59,046 Corporate bonds — 5,228 9,427 14,655 Subordinated notes — 4,602 — 4,602 SBA loan pools — 5,718 — 5,718 Municipal bonds — 499 — 499 Available-for-sale securities $ — $ 75,093 $ 9,427 $ 84,520 Interest rate swap receivable $ — $ 203 $ — $ 203 Interest rate swap liability $ — $ 203 $ — $ 203 Patriot measures certain financial assets and financial liabilities at fair value on a non-recurring basis. When circumstances dictate (e.g., impairment of long-lived assets, other than temporary impairment of collateral value), the carrying values of such financial assets and financial liabilities are adjusted to fair value or fair value less costs to sell, as may be appropriate. As of June 30, 2023 and December 31, 2022, four corporate bonds were classified as Level 3 instruments. The fair values of these securities were determined using a present value approach. The discount rate assumed was determined based on unobservable inputs in a pricing model. During the three and six months ended June 30, 2023 and 2022, the Company had no transfers into or out of Levels 1, 2 or 3. The reconciliation of the beginning and ending balances during 2023 for Level 3 available-for-sale securities is as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Level 3 fair value, beginning of year $ 10,205 $ 11,237 $ 9,427 $ 13,180 Purchases — — — — Realized gain (loss) — — — — Unrealized gain (loss) (323) (895) 455 (2,838) Transfers in and /or out of Level 3 — — — — Level 3 fair value, end of year $ 9,882 $ 10,342 $ 9,882 $ 10,342 The table below presents the valuation methodology and unobservable inputs for level 3 assets measured at fair value on a non-recurring basis as of June 30, 2023 and December 31, 2022: (In thousands) Fair Value Valuation Unobservable Inputs Range of Inputs June 30, 2023: Impaired loans, net $ 13,003 Real Estate Appraisals Discount for appraisal type 5.8 % - 20% SBA servicing assets 977 Discounted Cash Flows Market discount rates 14.73 % - 14.90% December 31, 2022: Impaired loans, net $ 12,873 Real Estate Appraisals Discount for appraisal type 5.8 % - 20% SBA servicing assets 1,013 Discounted Cash Flows Market discount rates 14.73 % - 14.90% Patriot discloses fair value information about financial instruments, whether or not recognized in the consolidated balance sheet, for which it is practicable to estimate that value. Certain financial instruments are excluded from disclosure requirements and, accordingly, the aggregate fair value amounts presented do not necessarily represent the complete underlying value of financial instruments included in the consolidated financial statements. The estimated fair value amounts have been measured as of June 30, 2023 and December 31, 2022, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of the financial instruments measured may be different than if they had been subsequently valued. The information presented should not be interpreted as an estimate of the total fair value of Patriot’s assets and liabilities, since only a portion of Patriot’s assets and liabilities are required to be measured at fair value for financial reporting purposes. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between Patriot’s fair value disclosures and those of other bank holding companies may not be meaningful. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Allowance for Credit Losses (“ACL”) and Impairment of Debt Securities | Allowance for Credit Losses (“ACL”) and Impairment of Debt Securities As described below under Recently Adopted Accounting Pronouncements, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Accounting Standard Codification (“ASC”) 326, effective January 1, 2023. Impairment of Debt Securities Available for Sale For available-for-sale debt securities in an unrealized loss position, the Company will first assess whether i) it intends to sell or ii) it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis. If either case is applicable, any previously recognized allowances are charged off and the debt security’s amortized cost is written down to fair value through income. If neither case is applicable, the debt security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the debt security by a rating agency and any adverse conditions specifically related to the debt security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the debt security are compared to the amortized cost basis of the debt security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount by which the fair value is less than the amortized cost basis. Any impairment that has not been recorded through allowance for credit losses is recognized in other comprehensive income, net of tax. Adjustments to the allowance are reported in the income statement as a component of credit loss expense. Debt securities are charged off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible by the Company or when either of the aforementioned criteria regarding intent or requirement to sell is met specifically for available-for-sale debt securities. The Company excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on debt securities and does not record an ACL on accrued interest receivable. ACL – Loans The ACL is based on the Company’s evaluation of the loan portfolios, past loan loss experience, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The process is inherently subjective and subject to significant change as it requires material estimates. The allowance is increased by a provision for credit losses, which is charged to expense, and reduced by charge-offs, net of recoveries. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the allowance for credit losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination. The Company evaluates loans with similar risk characteristics in pools using a probability of default/loss given default ("PD/LGD") method. Unlike the previous allowance for loan losses approach, which applied historical loss rates to similar loan pools, the current expected credit loss ("CECL") methodology forecasts the probability of default, loss given default, and exposure at default for loans in a given pool over their remaining life. This allows the Company to derive an ACL that can absorb estimated losses over the remaining life of the portfolio. Qualitative factors play a greatly diminished role under the Company's CECL framework as reserve rates for the model in use are influenced by change in: real domestic Gross Domestic Product ("GDP"); State of Connecticut unemployment rate; New York Fed recession indicator; CoStar composite index; New York Case Schiller index; Coincident activity index; Michigan consumer activity index; S&P's BBB credit spreads; the Company's loan delinquencies and charge off data. Credit losses for loans that no longer share similar risk characteristics with the collectively evaluated pools are excluded from the collective evaluation and estimated on an individual basis. Individual evaluations are performed for nonaccrual loans and loans rated substandard that are in excess of $100,000. Specific allowances were estimated based on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows. The Company measures expected credit losses over the contractual term of a loan, adjusted for estimated prepayments. The contractual term excludes expected extensions, renewals and modifications unless there is a reasonable expectation that a troubled debt restructuring will be executed. Credit losses are estimated on the amortized cost basis of loans, which includes the principal balance outstanding, purchase discounts and premiums and deferred loan fees and costs. Accrued interest receivable on loans is excluded from the estimate of credit losses. ACL – Unfunded Loan Commitments The ACL for unfunded loan commitments represents expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if the Company has the unconditional right to cancel the obligation. The ACL for unfunded loan commitments is reported as a component of other liabilities within the Consolidated Balance Sheets. Adjustments to the ACL for unfunded loan commitments are reported in the Consolidated Statements of Operations as a component of provision for credit losses. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards New Accounting Standards Adopted in 2023 ASU 2016-13 In June 2016 , the FASB issued ASU 2016 - 13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) . The ASU changes the methodology for measuring credit losses on financial instruments measured at amortized cost to a CECL model. Under the CECL model, entities are required to estimate credit losses over the entire contractual term of a financial instrument from the date of initial recognition of the instrument. The ASU also changes the existing impairment model for available-for-sale debt securities. In cases where there is neither the intent nor a more-likely-than-not requirement to sell the debt security, an entity should record credit losses as an allowance rather than a direct write-down of the amortized cost basis. Additionally, ASU 2016-13 notes that credit losses related to available-for-sale debt securities and purchased credit impaired loans should be recorded through an allowance for credit losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. In November 2019, the FASB issued ASU 2019-10, which amended the effective date of ASU 2016-13 for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities, and delayed the effective date to fiscal years beginning after December 31, 2022, including interim periods within those fiscal periods. As the Company is a small reporting company, the delay was applicable to the Company. The Company adopted ASU 2016-13 effective January 1, 2023. This resulted in the Company recording an increase to the allowance for credit losses of $13.0 million and an increase to reserve for unfunded loan commitments of $2.7 million (which is included in other liabilities on the Company’s Consolidated Balance Sheets), and a cumulative-effect adjustment to increase the opening balance of accumulated deficit of $11.5 million, net of $4.2 million tax at the date of adoption. ASU 2020-02 In January 2020, the FASB issued ASU No. 2020-02, Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) . This ASU adds and amends SEC paragraphs in the Accounting Standards Codification to reflect the issuance of SEC Staff Accounting Bulletin No. 119, related to the new credit losses standard, and comments by the SEC staff related to the revised effective date of the new leases standard. This ASU is effective upon issuance. The Company adopted ASU 2016-13 and ASU 2020-02 effective January 1, 2023. ASU 2020-03 In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments. This ASU clarifies various financial instruments topics, including the CECL standard issued in 2016 . Amendments related to ASU 2016-13 for entities that have not yet adopted that guidance are effective upon adoption of the amendments in ASU 2016-13. Early adoption is not permitted before an entity’s adoption of ASU 2016-13. Other amendments are effective upon issuance of this ASU. See the discussion regarding the adoption of ASU 2016-13 above. ASU 2022-02 In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments — Credit Losses (Topic 326 ): Troubled Debt Restructurings ("TDR") and Vintage Disclosures. ASU 2022-02 updates guidance in Topic 326, to eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty and to require entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted if an entity has adopted the amendments in ASU 2016-03, including adoption in an interim period. The Company adopted ASU 2016-13 effective January 1, 2023. The adoption of this guidance did not have any material impact on the Company's Consolidated Financial Statements. ASU 2022-06 On December 21, 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . This ASU defers the sunset date of the temporary, optional expedients related to the accounting for contract modifications and hedging transactions as a result of the anticipated transition away from the use of LIBOR and other interbank offered rates to alternative reference rates. In response to the United Kingdom’s Financial Conduct Authority's extension of the cessation date of LIBOR in the United States to June 30, 2023, the FASB has deferred the expiration date of these optional expedients to December 31, 2024. The ASU became effective upon issuance and affords the Company an extended period to utilize the currently available optional expedients related to the accounting for contract modifications and hedging transactions as a result of the anticipated transition away from the use of LIBOR and other inter-bank offered rates. The adoption of this guidance did not have a material impact on the Company's Consolidated Financial Statements. |
Basis of Financial Statement _2
Basis of Financial Statement Presentation and Restatement of Consolidated Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The effect of these changes on the consolidated financial statements of the Company is as follows. (In thousands) As of January 1, 2023 Adoption of CECL effective January 1, 2023: Previously Reported Adjustment Restated CECL adoption transition_ ACL on loans $ (7,371) $ (5,630) $ (13,001) CECL adoption transition_ ACL on Off-BS exposure (1,094) (1,643) (2,737) CECL adoption transition_ DTA Adjustment 2,274 1,954 4,228 Cumulative change in accounting principle Balance at January 1, 2023 - Adoption of CECL (6,191) (5,319) (11,510) As of June 30, 2023 (In thousands) Previously Reported Adjustment Restated Loans receivable, net of allowance for credit losses $ 913,876 $ (7,240) $ 906,636 Deferred tax asset 18,169 2,217 20,386 Total assets 1,162,731 (5,023) 1,157,708 Accrued expenses and other liabilities 6,693 1,011 7,704 Accumulated deficit (38,127) (6,034) (44,161) Total shareholders' equity 52,445 (6,034) 46,411 Tier 1 Leverage ratio 8.70 % (0.16) % 8.54 % Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (In thousands, except shares and per share amounts) Previously Reported Adjustment Restated Previously Reported Adjustment Restated Provision for credit losses $ 1,231 $ 94 $ 1,325 $ 2,567 $ 978 $ 3,545 Net interest income after provision for credit losses 6,482 (94) 6,388 13,159 (978) 12,181 Loss before income taxes (752) (94) (846) (824) (978) (1,802) Benefit for income taxes (206) (25) (231) (225) (263) (488) Net loss (546) (69) (615) (599) (715) (1,314) Total comprehensive loss (2,187) (69) (2,256) (993) (715) (1,708) Basic and diluted income per share $ (0.14) $ (0.02) $ (0.16) $ (0.15) $ (0.18) $ (0.33) Consolidated Statement of Cash Flows: Net loss N/A N/A N/A $ (599) $ (715) $ (1,314) Provision for credit losses N/A N/A N/A 2,567 978 3,545 Deferred income taxes N/A N/A N/A (231) (263) (494) |
Available-for-Sale Securities (
Available-for-Sale Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Available-for-sale Securities | The amortized cost, gross unrealized gains, gross unrealized losses and fair values of available-for-sale securities at June 30, 2023 and December 31, 2022 are as follows: (In thousands) Amortized Gross Gross Fair June 30, 2023: U. S. Government agency and mortgage-backed securities $ 82,192 $ 63 $ (15,007) $ 67,248 Corporate bonds 18,002 — (4,747) 13,255 Subordinated notes 5,000 — (764) 4,236 SBA loan pools 6,409 — (1,083) 5,326 Municipal bonds 560 — (78) 482 Total available-for-sale securities $ 112,163 $ 63 $ (21,679) $ 90,547 December 31, 2022: U. S. Government agency and mortgage-backed securities $ 73,480 $ — $ (14,434) $ 59,046 Corporate bonds 19,773 7 (5,125) 14,655 Subordinated notes 5,000 — (398) 4,602 SBA loan pools 6,791 — (1,073) 5,718 Municipal bonds 561 — (62) 499 Total available-for-sale securities $ 105,605 $ 7 $ (21,092) $ 84,520 |
Schedule of Unrealized Loss on Investments | The following table presents the available-for-sale securities’ gross unrealized losses and fair value, aggregated by the length of time the individual securities have been in a continuous loss position as of June 30, 2023 and December 31, 2022: (In thousands) Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2023: U. S. Government agency and mortgage-backed securities $ 18,306 $ (1,077) $ 46,807 $ (13,930) $ 65,113 $ (15,007) Corporate bonds — — 13,255 (4,747) 13,255 (4,747) Subordinated notes 2,543 (457) 1,693 (307) 4,236 (764) SBA loan pools 1,276 (13) 4,050 (1,070) 5,326 (1,083) Municipal bonds — — 482 (78) 482 (78) Total available-for-sale securities $ 22,125 $ (1,547) $ 66,287 $ (20,132) $ 88,412 $ (21,679) December 31, 2022: U. S. Government agency and mortgage-backed securities $ 11,126 $ (633) $ 47,920 $ (13,801) $ 59,046 $ (14,434) Corporate bonds 1,959 (64) 10,934 (5,061) 12,893 (5,125) Subordinated notes 4,602 (398) — — 4,602 (398) SBA loan pools 1,437 (12) 4,280 (1,061) 5,717 (1,073) Municipal bonds — — 498 (62) 498 (62) Total available-for-sale securities $ 19,124 $ (1,107) $ 63,632 $ (19,985) $ 82,756 $ (21,092) |
Investments Classified by Contractual Maturity Date | The following summarizes, by class and contractual maturity, the amortized cost and estimated fair value of available-for-sale debt securities held as of June 30, 2023 and December 31, 2022. The mortgages underlying the mortgage-backed securities are not due at a single maturity date. Additionally, these mortgages often are and generally may be pre-paid without penalty, creating a degree of uncertainty that such investments can be held until maturity. For convenience, mortgage-backed securities have been included in the summary as a separate line item. (In thousands) Amortized Cost Fair Value Due Due After Due Total Due Due After Due Total June 30, 2023: Corporate bonds $ 2,007 $ 15,995 $ — $ 18,002 $ 1,855 $ 11,400 $ — $ 13,255 Subordinated notes 3,000 2,000 — 5,000 2,543 1,693 — 4,236 SBA loan pools — 1,289 5,120 6,409 — 1,276 4,050 5,326 Municipal bonds 154 406 — 560 139 343 — 482 Available-for-sale securities with stated maturity dates 5,161 19,690 5,120 29,971 4,537 14,712 4,050 23,299 U. S. Government agency and mortgage-backed securities — 5,237 76,955 82,192 — 4,134 63,114 67,248 Total available-for-sale securities $ 5,161 $ 24,927 $ 82,075 $ 112,163 $ 4,537 $ 18,846 $ 67,164 $ 90,547 December 31, 2022: Corporate bonds $ 3,778 $ 15,995 $ — $ 19,773 $ 3,721 $ 10,934 $ — $ 14,655 Subordinated notes 3,000 2,000 — 5,000 2,830 1,772 — 4,602 SBA loan pools — 1,449 5,342 6,791 — 1,438 4,280 5,718 Municipal bonds 154 407 — 561 139 360 — 499 Available-for-sale securities with stated maturity dates 6,932 19,851 5,342 32,125 6,690 14,504 4,280 25,474 U. S. Government agency and mortgage-backed securities — 5,276 68,204 73,480 — 4,129 54,917 59,046 Total available-for-sale securities $ 6,932 $ 25,127 $ 73,546 $ 105,605 $ 6,690 $ 18,633 $ 59,197 $ 84,520 |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Credit Loss [Abstract] | |
Schedule of Loans Receivable | As of June 30, 2023 and December 31, 2022, loans receivable, net, consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Loan portfolio segment: Commercial Real Estate $ 511,655 $ 437,443 Residential Real Estate 116,454 124,140 Commercial and Industrial 171,574 138,787 Consumer and Other 123,063 141,091 Construction 5,525 4,922 Construction to Permanent - CRE 2,463 1,933 Loans receivable, gross 930,734 848,316 Allowance for credit losses (24,098) (10,310) Loans receivable, net $ 906,636 $ 838,006 |
Allowance for Credit Loss | The following tables summarize the activity in the allowance for credit losses, allocated to segments of the loan portfolio, for the three and six months ended June 30, 2023 and allowance for loan and lease losses for three and six months ended June 30, 2022: (In thousands) Commercial Residential Commercial Consumer Construction Construction to Unallocated Total Three Months Ended June 30, 2023 Allowance for credit losses: March 31, 2023 $ 9,809 $ 853 $ 1,799 $ 12,251 $ 21 $ 47 $ — $ 24,780 Charge-offs — — (4) (2,516) (150) — — (2,670) Recoveries — 11 9 260 — — — 280 Provisions (credits) 230 163 (131) 1,280 162 4 — 1,708 -1 June 30, 2023 $ 10,039 $ 1,027 $ 1,673 $ 11,275 $ 33 $ 51 $ — $ 24,098 Three Months Ended June 30, 2022 Allowance for loan and lease losses: March 31, 2022 $ 4,889 $ 1,512 $ 2,860 $ 319 $ 56 $ 9 $ 92 $ 9,737 Charge-offs — — — (100) — — — (100) Recoveries — — 11 6 — — — 17 Provisions (credits) 91 (117) (555) 838 2 6 10 275 June 30, 2022 $ 4,980 $ 1,395 $ 2,316 $ 1,063 $ 58 $ 15 $ 102 $ 9,929 The allowance and provision for the three and six months ended June 30, 2023 are not comparable to prior periods due to the adoption of CECL. (1) The provision on credit losses for three months ended June 30, 2023 does not include the credit on unfunded loan commitments of $383,000 for the three months ended June 30, 2023. (In thousands) Commercial Residential Real Estate Commercial Consumer Construction Construction Unallocated Total Six Months Ended June 30, 2023 Allowance for credit losses: December 31, 2022 $ 6,966 $ 665 $ 1,403 $ 1,207 $ 24 $ 10 $ 35 $ 10,310 Impact of ASC 326 Adoption 1,626 189 219 10,977 (4) 29 (35) 13,001 Charge-offs — — (6) (4,312) (150) — — (4,468) Recoveries — 11 16 433 — — — 460 Provisions 1,447 162 41 2,970 163 12 — 4,795 (2) June 30, 2023 $ 10,039 $ 1,027 $ 1,673 $ 11,275 $ 33 $ 51 $ — $ 24,098 Six Months Ended June 30, 2022 Allowance for loan and lease losses: December 31, 2021 $ 5,063 $ 1,700 $ 2,532 $ 253 $ 78 $ 41 $ 238 $ 9,905 Charge-offs — — (68) (147) (70) — — (285) Recoveries — 1 26 7 — — — 34 (Credits) provisions (83) (306) (174) 950 50 (26) (136) 275 June 30, 2022 $ 4,980 $ 1,395 $ 2,316 $ 1,063 $ 58 $ 15 $ 102 $ 9,929 (2) The provision on credit losses for six months ended June 30, 2023 does not include the credit on unfunded loan commitments of $1.3 million. |
Schedule of Individually Evaluated for Impairment | The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of June 30, 2023: (In thousands) Commercial Residential Commercial Consumer Construction Construction to Unallocated Total June 30, 2023 Allowance for credit losses: Individually evaluated for impairment $ 6,387 $ 196 $ 719 $ — $ — $ — $ — $ 7,302 Collectively evaluated for impairment 3,652 831 954 11,275 33 51 — 16,796 Total allowance for credit losses $ 10,039 $ 1,027 $ 1,673 $ 11,275 $ 33 $ 51 $ — $ 24,098 Loans receivable, gross: Individually evaluated for impairment $ 11,368 $ 2,355 $ 6,582 $ — $ — $ — $ — $ 20,305 Collectively evaluated for impairment 500,287 114,099 164,992 123,063 5,525 2,463 — 910,429 Total loans receivable, gross $ 511,655 $ 116,454 $ 171,574 $ 123,063 $ 5,525 $ 2,463 $ — $ 930,734 The following tables presents the balance in the allowance for loan and lease losses and the recorded investment in loans by portfolio segment based on impairment method as of December 31, 2022: (In thousands) Commercial Residential Commercial Consumer Construction Construction to Unallocated Total December 31, 2022 Allowance for loan and lease losses: Individually evaluated for impairment $ 5,430 $ 5 $ 608 $ — $ — $ — $ — $ 6,043 Collectively evaluated for impairment 1,536 660 795 1,207 24 10 35 4,267 Total allowance for loan losses $ 6,966 $ 665 $ 1,403 $ 1,207 $ 24 $ 10 $ 35 $ 10,310 Loans receivable, gross: Individually evaluated for impairment $ 11,241 $ 2,508 $ 4,653 $ 514 $ — $ — $ — $ 18,916 Collectively evaluated for impairment 426,202 121,632 134,134 140,577 4,922 1,933 — 829,400 Total loans receivable, gross $ 437,443 $ 124,140 $ 138,787 $ 141,091 $ 4,922 $ 1,933 $ — $ 848,316 |
Financing Receivable Credit Quality Indicators | The following tables summarize loan amortized cost by vintage, credit quality indicator and class of loans based on year of origination: Term of Loans by Origination As of June 30, 2023: 2023 2022 2021 2020 2019 Prior Revolving Total Loans Loan portfolio segment: Commercial Real Estate: Pass $ 94,387 $ 157,102 $ 129,284 $ 3,728 $ 30,112 $ 69,815 $ — $ 484,428 Special mention — — — — 550 — — 550 Substandard — — — — 21,296 5,381 — 26,677 94,387 157,102 129,284 3,728 51,958 75,196 — 511,655 Residential Real Estate: Pass 18 1,267 3,297 12,081 15,897 80,192 528 113,280 Special mention — — — — — 609 — 609 Substandard — — — — — 2,565 — 2,565 18 1,267 3,297 12,081 15,897 83,366 528 116,454 Commercial and Industrial: Pass 1,470 15,000 24,677 8,312 8,908 7,810 97,560 163,737 Special mention 11 — — — 513 11 — 535 Substandard — 732 938 — 4,295 1,268 69 7,302 1,481 15,732 25,615 8,312 13,716 9,089 97,629 171,574 Consumer and Other: Pass 7,864 53,517 7,026 — 5,992 15,816 32,779 122,994 Substandard — — — — — 69 — 69 7,864 53,517 7,026 — 5,992 15,885 32,779 123,063 Construction: Pass — — 5,033 — — — — 5,033 Substandard — — — — 492 — — 492 — — 5,033 — 492 — — 5,525 Construction to Permanent -CRE: Pass — — 2,463 — — — — 2,463 — — 2,463 — — — — 2,463 Total $ 103,750 $ 227,618 $ 172,718 $ 24,121 $ 88,055 $ 183,536 $ 130,936 $ 930,734 Loans receivable, gross: Pass $ 103,739 $ 226,886 $ 171,780 $ 24,121 $ 60,909 $ 173,633 $ 130,867 $ 891,935 Special mention 11 — — — 1,063 620 — 1,694 Substandard — 732 938 — 26,083 9,283 69 37,105 Loans receivable, gross $ 103,750 $ 227,618 $ 172,718 $ 24,121 $ 88,055 $ 183,536 $ 130,936 $ 930,734 |
Financing Receivable, Past Due | The following tables summarize performing and non-performing (i.e., non-accruing) loans receivable by portfolio segment, by aging category, by delinquency status as of June 30, 2023. (In thousands) Performing (Accruing) Loans As of June 30, 2023: 30 - 59 60 - 89 90 Days Total Current Total Non- Loans Loan portfolio segment: Commercial Real Estate: Pass $ 3,284 $ — $ — $ 3,284 $ 481,144 $ 484,428 $ — $ 484,428 Special mention — — — — 550 550 — 550 Substandard 322 — — 322 14,987 15,309 11,368 26,677 3,606 — — 3,606 496,681 500,287 11,368 511,655 Residential Real Estate: Pass 1,054 74 330 1,458 111,822 113,280 — 113,280 Special mention — — — — 609 609 — 609 Substandard — — — — — — 2,565 2,565 1,054 74 330 1,458 112,431 113,889 2,565 116,454 Commercial and Industrial: Pass 1,678 — 230 1,908 161,829 163,737 — 163,737 Special mention — — — — 535 535 — 535 Substandard — 541 — 541 106 647 6,655 7,302 1,678 541 230 2,449 162,470 164,919 6,655 171,574 Consumer and Other: Pass 1,397 1,543 868 3,808 119,186 122,994 — 122,994 Substandard — — — — 23 23 46 69 1,397 1,543 868 3,808 119,209 123,017 46 123,063 Construction: Pass — — — — 5,033 5,033 — 5,033 Substandard — — — — 492 492 — 492 — — — — 5,525 5,525 — 5,525 Construction to Permanent - CRE: Pass — — — — 2,463 2,463 — 2,463 — — — — 2,463 2,463 — 2,463 Total $ 7,735 $ 2,158 $ 1,428 $ 11,321 $ 898,779 $ 910,100 $ 20,634 $ 930,734 Loans receivable, gross: Pass $ 7,413 $ 1,617 $ 1,428 $ 10,458 $ 881,477 $ 891,935 $ — $ 891,935 Special mention — — — — 1,694 1,694 — 1,694 Substandard 322 541 — 863 15,608 16,471 20,634 37,105 Loans receivable, gross $ 7,735 $ 2,158 $ 1,428 $ 11,321 $ 898,779 $ 910,100 $ 20,634 $ 930,734 The following tables summarize performing and non-performing loans (i.e., non-accruing) receivable by portfolio segment, by aging category, by delinquency status as of December 31, 2022. (In thousands) Performing (Accruing) Loans As of December 31, 2022: 30 - 59 Days 60 - 89 Days 90 Days Total Current Total Non-accruing Loans Loan portfolio segment: Commercial Real Estate: Pass $ — $ — $ — $ — $ 401,313 $ 401,313 $ — $ 401,313 Special mention — — — — 24,559 24,559 — 24,559 Substandard 330 — — 330 — 330 11,241 11,571 330 — — 330 425,872 426,202 11,241 437,443 Residential Real Estate: Pass 330 — — 330 120,715 121,045 — 121,045 Special mention — — — — 625 625 — 625 Substandard — — — — — — 2,470 2,470 330 — — 330 121,340 121,670 2,470 124,140 Commercial and Industrial: Pass 2 — 230 232 131,092 131,324 — 131,324 Special mention — — — — 597 597 — 597 Substandard 1,488 412 — 1,900 133 2,033 4,833 6,866 1,490 412 230 2,132 131,822 133,954 4,833 138,787 Consumer and Other: Pass 929 3,175 925 5,029 135,990 141,019 — 141,019 Substandard — — — — 23 23 49 72 929 3,175 925 5,029 136,013 141,042 49 141,091 Construction: Pass 895 — — 895 3,503 4,398 — 4,398 Special mention — — — — 524 524 — 524 895 — — 895 4,027 4,922 — 4,922 Construction to Permanent - CRE: Pass — — — — 1,933 1,933 — 1,933 — — — — 1,933 1,933 — 1,933 Total $ 3,974 $ 3,587 $ 1,155 $ 8,716 $ 821,007 $ 829,723 $ 18,593 $ 848,316 Loans receivable, gross: Pass $ 2,156 $ 3,175 $ 1,155 $ 6,486 $ 794,546 $ 801,032 $ — $ 801,032 Special mention — — — — 26,305 26,305 — 26,305 Substandard 1,818 412 — 2,230 156 2,386 18,593 20,979 Loans receivable, gross $ 3,974 $ 3,587 $ 1,155 $ 8,716 $ 821,007 $ 829,723 $ 18,593 $ 848,316 |
Financing Receivable, Nonaccrual | The following tables summarize non-performing (i.e., non-accruing) loans by aging category and status, within the applicable loan portfolio segment as of June 30, 2023 and December 31, 2022: (In thousands) Non-accruing Loans 30 - 59 60 - 89 90 Days or Total Current Total As of June 30, 2023: Loan portfolio segment: Commercial Real Estate: Substandard $ — $ — $ 11,368 $ 11,368 $ — $ 11,368 Residential Real Estate: Substandard 89 71 1,795 1,955 610 2,565 Commercial and Industrial: Substandard 940 — 5,570 6,510 145 6,655 Consumer and Other: Substandard — — 26 26 20 46 Total non-accruing loans $ 1,029 $ 71 $ 18,759 $ 19,859 $ 775 $ 20,634 As of December 31, 2022: Loan portfolio segment: Commercial Real Estate: Substandard $ — $ — $ 11,241 $ 11,241 $ — $ 11,241 Residential Real Estate: Substandard 657 — 1,796 2,453 17 2,470 Commercial and Industrial: Substandard 46 395 3,196 3,637 1,196 4,833 Consumer and Other: Substandard — — 27 27 22 49 Total non-accruing loans $ 703 $ 395 $ 16,260 $ 17,358 $ 1,235 $ 18,593 |
Impaired Financing Receivables | The following table reflects information about the individually evaluated loans by class as of June 30, 2023 and December 31, 2022: (In thousands) June 30, 2023 December 31, 2022 Recorded Principal Related Recorded Investment Principal Outstanding Related Allowance With no related allowance recorded: Commercial Real Estate $ 387 $ 430 $ — $ 2,435 $ 2,428 $ — Residential Real Estate 732 872 — 2,402 2,224 — Commercial and Industrial 1,859 2,223 — 1,939 2,424 — Consumer and Other — — — 514 514 — 2,978 3,525 — 7,290 7,590 — With a related allowance recorded: Commercial Real Estate 10,981 10,955 6,387 8,806 8,656 5,430 Residential Real Estate 1,623 1,448 196 106 105 5 Commercial and Industrial 4,723 4,742 719 2,714 2,863 608 17,327 17,145 7,302 11,626 11,624 6,043 Individually evaluated loans, Total: Commercial Real Estate 11,368 11,385 6,387 11,241 11,084 5,430 Residential Real Estate 2,355 2,320 196 2,508 2,329 5 Commercial and Industrial 6,582 6,965 719 4,653 5,287 608 Consumer and Other — — — 514 514 — Total $ 20,305 $ 20,670 $ 7,302 $ 18,916 $ 19,214 $ 6,043 The following table summarizes additional information regarding individually evaluated loans by class for the three and six months ended June 30, 2023 and 2022. Three Month Ended June 30, Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 387 $ — $ 6,611 $ 32 $ 680 $ — $ 6,697 $ 64 Residential Real Estate 748 24 2,818 10 992 27 2,829 18 Commercial and Industrial 2,046 68 607 2 2,181 150 614 5 Consumer and Other 128 — 520 4 293 — 521 9 Construction 579 — — — 993 — — — 3,888 92 10,556 48 5,139 177 10,661 96 With a related allowance recorded: Commercial Real Estate 10,405 — 8,843 40 10,651 154 8,858 65 Residential Real Estate 1,352 — 368 1 1,468 — 408 3 Commercial and Industrial 4,052 98 3,961 29 4,341 139 3,762 50 Consumer and Other 18 — 126 — 10 — 143 — 15,827 98 13,298 70 16,470 293 13,171 118 Individually evaluated loans, Total: Commercial Real Estate 10,792 — 15,454 72 11,331 154 15,555 129 Residential Real Estate 2,100 24 3,186 11 2,460 27 3,237 21 Commercial and Industrial 6,098 166 4,568 31 6,522 289 4,376 55 Consumer and Other 146 — 646 4 303 — 664 9 Construction 579 — — — 993 — — — Total $ 19,715 $ 190 $ 23,854 $ 118 $ 21,609 $ 470 $ 23,832 $ 214 |
Loans Held for Sale (Tables)
Loans Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Servicing Asset at Amortized Cost | The following table presents an analysis of the activity in the SBA servicing assets for the three and six months ended June 30, 2023 and 2022: (In thousands) Three Month Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 893 $ 626 $ 886 $ 584 Servicing rights capitalized 24 79 58 131 Servicing rights amortized (11) (12) (22) (20) Servicing rights disposed (24) (8) (40) (10) Ending balance $ 882 $ 685 $ 882 $ 685 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Deposit Liabilities, Type | The following table presents the balance of deposits held, by category as of June 30, 2023 and December 31, 2022. (In thousands) June 30, 2023 December 31, 2022 Non-interest bearing $ 127,817 $ 269,636 Interest bearing: Negotiable order of withdrawal accounts 37,970 34,440 Savings deposits 50,981 71,002 Money market deposits 298,717 211,000 Certificates of deposit, less than $250,000 182,680 165,793 Certificates of deposit, $250,000 or greater 56,088 59,877 Brokered deposits 109,126 48,698 Interest bearing, Total 735,562 590,810 Total Deposits $ 863,379 $ 860,446 |
Contractual Obligation, Fiscal Year Maturity | As of June 30, 2023, contractual maturities of Certificates of Deposit (“CDs”), and brokered deposits is summarized as follows: (In thousands) CDs CDs Brokered Total 1 year or less $ 136,053 $ 45,467 $ 104,517 $ 286,037 More than 1 year through 2 years 29,447 9,362 4,358 43,167 More than 2 years through 3 years 4,887 1,259 251 6,397 More than 3 years through 4 years 496 — — 496 More than 4 years through 5 years 11,797 — — 11,797 $ 182,680 $ 56,088 $ 109,126 $ 347,894 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands): (In thousands) Notional Maturity Fixed Rate Variable Fair Value June 30, 2023 Classified in Other Assets: 3rd party interest rate swap $ 4,680 5.84 5.25 % 1 Mo. LIBOR + 1.96% $ 146 3rd party interest rate swap 1,346 6.00 4.38 % 1 Mo. LIBOR + 2.00% 98 Classified in Other Liabilities: Customer interest rate swap $ 4,680 5.84 5.25 % 1 Mo. LIBOR + 1.96% $ (146) Customer interest rate swap 1,346 6.00 4.38 % 1 Mo. LIBOR + 2.00% (98) December 31, 2022 Classified in Other Assets: 3rd party interest rate swap $ 4,736 6.30 5.25 % 1 Mo. LIBOR + 1.96% $ 106 3rd party interest rate swap 1,363 6.50 4.38 % 1 Mo. LIBOR + 2.00% 97 Classified in Other Liabilities: Customer interest rate swap $ 4,736 6.30 5.25 % 1 Mo. LIBOR + 1.96% $ (106) Customer interest rate swap 1,363 6.50 4.38 % 1 Mo. LIBOR + 2.00% (97) |
Share-based Compensation and _2
Share-based Compensation and Employee Benefit Plan (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | The following is a summary of the status of the Company’s restricted shares and changes for the three and six months ended June 30, 2023 and 2022: Three months ended June 30, 2023: Number of Weighted Average Unvested at March 31, 2023 22,660 $7.11 Unvested at June 30, 2023 22,660 $7.11 Six months ended June 30, 2023: Unvested at December 31, 2022 22,660 $7.11 Unvested at June 30, 2023 22,660 $7.11 Three months ended June 30, 2022 Number of Weighted Average Unvested at March 31, 2022 21,468 $6.48 Granted 2,496 $17.25 Vested (777) $18.55 Unvested at June 30, 2022 23,187 $7.24 Six months ended June 30, 2022: Unvested at December 31, 2021 21,468 $6.48 Granted 2,496 $17.25 Vested (777) $18.55 Unvested at June 30, 2022 23,187 $7.24 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022: (Net income in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Basis (loss) earnings per share: Net (loss) income attributable to Common shareholders $ (615) $ 1,265 $ (1,314) $ 2,065 Divided by: Weighted average shares outstanding 3,965,186 3,957,260 3,965,186 3,956,878 Basic (loss) earnings per share of common stock $ (0.16) $ 0.32 $ (0.33) $ 0.52 Diluted (loss) earnings per share: Net (loss) income attributable to Common shareholders $ (615) $ 1,265 $ (1,314) $ 2,065 Weighted average shares outstanding 3,965,186 3,957,260 3,965,186 3,956,878 Effect of potentially dilutive restricted shares of common stock — (1) 9,819 — (2) 8,395 Divided by: Weighted average diluted shares outstanding 3,965,186 3,967,079 3,965,186 3,965,273 Diluted (loss) earnings per share of common stock $ (0.16) $ 0.32 $ (0.33) $ 0.52 (1) The weighted average diluted shares outstanding does not include 1,528 anti-dilutive restricted shares of common stock for the three months ended June 30, 2023. (2) The weighted average diluted shares outstanding does not include 427 anti-dilutive restricted shares of common stock for the six months ended June 30, 2023. |
Financial Instruments With Of_2
Financial Instruments With Off-balance Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of Commitment to Extended Credit | Financial instruments with credit risk at June 30, 2023 and December 31, 2022 are as follows: (In thousands) June 30, 2023 December 31, 2022 Commitments to extend credit: Unused lines of credit $ 97,432 $ 100,986 Undisbursed construction loans 4,849 12,000 Home equity lines of credit 29,134 26,878 Future loan commitments 300 14,365 Financial standby letters of credit — 78 $ 131,715 $ 154,307 |
Regulatory and Operational Ma_2
Regulatory and Operational Matters (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Bank’s Community Bank Leverage Ratio regulatory capital amounts and ratios at June 30, 2023 and December 31, 2022 are summarized as follows: (In thousands) June 30, 2023 December 31, 2022 Patriot Bank, N.A. Amount Ratio Amount Ratio Tier 1 Leverage Capital (to average assets): Actual $ 94,871 8.54 % $ 100,267 9.27 % Designation as "Well Capitalized" does not apply to bank holding companies (the Company). Such categorization of capital adequacy only applies to insured depository institutions (the Bank). |
Fair Value and Interest Rate _2
Fair Value and Interest Rate Risk (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table provides a comparison of the carrying amounts and estimated fair values of Patriot’s financial assets and liabilities as of June 30, 2023 and December 31, 2022: (In thousands) June 30, 2023 December 31, 2022 Fair Value Carrying Estimated Carrying Estimated Financial Assets: Cash and noninterest bearing balances due from banks Level 1 $ 2,320 $ 2,320 $ 5,182 $ 5,182 Interest-bearing deposits due from banks Level 1 68,489 68,489 33,311 33,311 Available-for-sale securities Level 2 80,665 80,665 75,093 75,093 Available-for-sale securities Level 3 9,882 9,882 9,427 9,427 Other investments Level 2 4,450 4,450 4,450 4,450 Federal Reserve Bank stock Level 2 2,523 2,523 2,627 2,627 Federal Home Loan Bank stock Level 2 8,072 8,072 3,874 3,874 Loans receivable, net Level 3 906,636 893,639 838,006 818,960 Loans held for sale Level 2 5,860 6,320 5,211 5,534 SBA servicing assets Level 3 882 977 886 1,013 Accrued interest receivable Level 2 7,628 7,628 7,267 7,267 Interest rate swap receivable Level 2 244 244 203 203 Financial assets, total $ 1,097,651 $ 1,085,209 $ 985,537 $ 966,941 Financial Liabilities: Demand deposits Level 2 $ 127,817 $ 127,817 $ 269,636 $ 269,636 Savings deposits Level 2 50,981 50,981 71,002 71,002 Money market deposits Level 2 298,717 298,717 211,000 211,000 Negotiable order of withdrawal accounts Level 2 37,970 37,970 34,440 34,440 Time deposits Level 2 238,768 235,475 225,670 221,353 Brokered deposits Level 1 109,126 108,641 48,698 47,684 FHLB and other borrowings Level 2 207,000 205,964 85,000 83,853 Senior notes Level 2 11,653 11,127 11,640 11,103 Subordinated debt Level 2 9,854 9,826 9,840 9,680 Junior subordinated debt owed to unconsolidated trust Level 2 8,132 8,132 8,128 8,128 Note payable Level 3 481 455 585 544 Accrued interest payable Level 2 1,117 1,117 585 585 Interest rate swap liability Level 2 244 244 203 203 Financial liabilities, total $ 1,101,860 $ 1,096,466 $ 976,427 $ 969,211 |
Fair Value, Assets Measured on Recurring Basis | The following tables detail the financial assets measured at fair value on a recurring basis and the valuation techniques utilized relative to the fair value hierarchy, as of June 30, 2023 and December 31, 2022: (In thousands) Quoted Prices in Significant Significant Total June 30, 2023: U. S. Government agency and mortgage-backed securities $ — $ 67,248 $ — $ 67,248 Corporate bonds — 3,373 9,882 13,255 Subordinated notes — 4,236 — 4,236 SBA loan pools — 5,326 — 5,326 Municipal bonds — 482 — 482 Available-for-sale securities $ — $ 80,665 $ 9,882 $ 90,547 Interest rate swap receivable $ — $ 244 $ — $ 244 Interest rate swap liability $ — $ 244 $ — $ 244 December 31, 2022: U. S. Government agency and mortgage-backed securities $ — $ 59,046 $ — $ 59,046 Corporate bonds — 5,228 9,427 14,655 Subordinated notes — 4,602 — 4,602 SBA loan pools — 5,718 — 5,718 Municipal bonds — 499 — 499 Available-for-sale securities $ — $ 75,093 $ 9,427 $ 84,520 Interest rate swap receivable $ — $ 203 $ — $ 203 Interest rate swap liability $ — $ 203 $ — $ 203 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The reconciliation of the beginning and ending balances during 2023 for Level 3 available-for-sale securities is as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Level 3 fair value, beginning of year $ 10,205 $ 11,237 $ 9,427 $ 13,180 Purchases — — — — Realized gain (loss) — — — — Unrealized gain (loss) (323) (895) 455 (2,838) Transfers in and /or out of Level 3 — — — — Level 3 fair value, end of year $ 9,882 $ 10,342 $ 9,882 $ 10,342 |
Fair Value Measurement Inputs and Valuation Techniques | The table below presents the valuation methodology and unobservable inputs for level 3 assets measured at fair value on a non-recurring basis as of June 30, 2023 and December 31, 2022: (In thousands) Fair Value Valuation Unobservable Inputs Range of Inputs June 30, 2023: Impaired loans, net $ 13,003 Real Estate Appraisals Discount for appraisal type 5.8 % - 20% SBA servicing assets 977 Discounted Cash Flows Market discount rates 14.73 % - 14.90% December 31, 2022: Impaired loans, net $ 12,873 Real Estate Appraisals Discount for appraisal type 5.8 % - 20% SBA servicing assets 1,013 Discounted Cash Flows Market discount rates 14.73 % - 14.90% |
Basis of Financial Statement _3
Basis of Financial Statement Presentation and Restatement of Consolidated Financial Statements - Narrtive (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ 46,411 | $ 59,802 | $ 46,411 | $ 59,802 | $ 48,644 | $ 59,583 | $ 62,683 | $ 67,344 | |
Net loss | $ (615) | $ 1,265 | $ (1,314) | $ 2,065 | |||||
Basic income per share (usd per share) | $ (0.16) | $ 0.32 | $ (0.33) | $ 0.52 | |||||
Diluted income per share (usd per share) | $ (0.16) | $ 0.32 | $ (0.33) | $ 0.52 | |||||
Adjustment | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ (6,034) | $ (6,034) | |||||||
Net loss | $ (69) | $ (715) | |||||||
Basic income per share (usd per share) | $ (0.02) | $ (0.18) | |||||||
Diluted income per share (usd per share) | $ (0.02) | $ (0.18) | |||||||
Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ 52,445 | $ 52,445 | |||||||
Net loss | $ (546) | $ (599) | |||||||
Basic income per share (usd per share) | $ (0.14) | $ (0.15) | |||||||
Diluted income per share (usd per share) | $ (0.14) | $ (0.15) | |||||||
Transition adjustment related to adoption of ASC326, net of tax | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ (11,510) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Adjustment | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | (5,319) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ (6,191) |
Basis of Financial Statement _4
Basis of Financial Statement Presentation and Restatement of Consolidated Financial Statements - Restatement (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jan. 01, 2023 USD ($) | Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2022 USD ($) $ / shares | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ 46,411 | $ 59,802 | $ 46,411 | $ 59,802 | $ 48,644 | $ 59,583 | $ 62,683 | $ 67,344 | |
Loans receivable, net of allowance for credit losses | 906,636 | 906,636 | 838,006 | ||||||
Deferred tax asset | 20,386 | 20,386 | 15,527 | ||||||
Total assets | 1,157,708 | 1,157,708 | 1,043,359 | ||||||
Accrued expenses and other liabilities | 7,704 | 7,704 | 7,251 | ||||||
Accumulated deficit | $ (44,161) | $ (44,161) | $ (31,337) | ||||||
Tier 1 Leverage ratio | 0.0854 | 0.0854 | |||||||
Provision for credit losses | $ 1,325 | 275 | $ 3,545 | 275 | |||||
Net interest income after provision for credit losses | 6,388 | 7,445 | 12,181 | 14,171 | |||||
Loss before income taxes | (846) | 1,741 | (1,802) | 2,852 | |||||
Benefit for income taxes | (231) | 476 | (488) | 787 | |||||
Net loss | (615) | 1,265 | (1,314) | 2,065 | |||||
Total comprehensive income | $ (2,256) | $ (2,901) | $ (1,708) | $ (7,583) | |||||
Basic income per share (usd per share) | $ / shares | $ (0.16) | $ 0.32 | $ (0.33) | $ 0.52 | |||||
Diluted income per share (usd per share) | $ / shares | $ (0.16) | $ 0.32 | $ (0.33) | $ 0.52 | |||||
Deferred income taxes | $ (494) | $ 591 | |||||||
Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ 52,445 | 52,445 | |||||||
Loans receivable, net of allowance for credit losses | 913,876 | 913,876 | |||||||
Deferred tax asset | 18,169 | 18,169 | |||||||
Total assets | 1,162,731 | 1,162,731 | |||||||
Accrued expenses and other liabilities | 6,693 | 6,693 | |||||||
Accumulated deficit | $ (38,127) | $ (38,127) | |||||||
Tier 1 Leverage ratio | 0.0870 | 0.0870 | |||||||
Provision for credit losses | $ 1,231 | $ 2,567 | |||||||
Net interest income after provision for credit losses | 6,482 | 13,159 | |||||||
Loss before income taxes | (752) | (824) | |||||||
Benefit for income taxes | (206) | (225) | |||||||
Net loss | (546) | (599) | |||||||
Total comprehensive income | $ (2,187) | $ (993) | |||||||
Basic income per share (usd per share) | $ / shares | $ (0.14) | $ (0.15) | |||||||
Diluted income per share (usd per share) | $ / shares | $ (0.14) | $ (0.15) | |||||||
Deferred income taxes | $ (231) | ||||||||
Adjustment | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ (6,034) | (6,034) | |||||||
Loans receivable, net of allowance for credit losses | (7,240) | (7,240) | |||||||
Deferred tax asset | 2,217 | 2,217 | |||||||
Total assets | (5,023) | (5,023) | |||||||
Accrued expenses and other liabilities | 1,011 | 1,011 | |||||||
Accumulated deficit | $ (6,034) | $ (6,034) | |||||||
Tier 1 Leverage ratio | (0.0016) | (0.0016) | |||||||
Provision for credit losses | $ 94 | $ 978 | |||||||
Net interest income after provision for credit losses | (94) | (978) | |||||||
Loss before income taxes | (94) | (978) | |||||||
Benefit for income taxes | (25) | (263) | |||||||
Net loss | (69) | (715) | |||||||
Total comprehensive income | $ (69) | $ (715) | |||||||
Basic income per share (usd per share) | $ / shares | $ (0.02) | $ (0.18) | |||||||
Diluted income per share (usd per share) | $ / shares | $ (0.02) | $ (0.18) | |||||||
Deferred income taxes | $ (263) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ (11,510) | ||||||||
Benefit for income taxes | (4,200) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | CECL adoption transition_ ACL on loans | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | (13,001) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | CECL adoption transition_ ACL on Off-BS exposure | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | (2,737) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | CECL adoption transition_ DTA Adjustment | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | 4,228 | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | (6,191) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Previously Reported | CECL adoption transition_ ACL on loans | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | (7,371) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Previously Reported | CECL adoption transition_ ACL on Off-BS exposure | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | (1,094) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Previously Reported | CECL adoption transition_ DTA Adjustment | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | 2,274 | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Adjustment | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | (5,319) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Adjustment | CECL adoption transition_ ACL on loans | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | (5,630) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Adjustment | CECL adoption transition_ ACL on Off-BS exposure | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | (1,643) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Adjustment | CECL adoption transition_ DTA Adjustment | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Stockholders' equity | $ 1,954 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jan. 01, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' equity | $ 46,411 | $ 59,802 | $ 46,411 | $ 59,802 | $ 48,644 | $ 59,583 | $ 62,683 | $ 67,344 | |
Allowance for credit loss | 24,098 | 9,929 | 24,098 | 9,929 | 24,780 | 10,310 | 9,737 | 9,905 | |
Tax expense | (231) | 476 | (488) | 787 | |||||
Accumulated Deficit | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' equity | $ (44,161) | $ (35,433) | $ (44,161) | $ (35,433) | $ (43,546) | (31,337) | $ (36,698) | $ (37,498) | |
Transition adjustment related to adoption of ASC326, net of tax | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' equity | $ (11,510) | ||||||||
Allowance for credit loss | (13,000) | $ 13,001 | |||||||
Tax expense | (4,200) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Unfunded Loan Commitment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Loans receivable, gross | (2,700) | ||||||||
Transition adjustment related to adoption of ASC326, net of tax | Accumulated Deficit | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' equity | $ (11,510) |
Available-for-Sale Securities -
Available-for-Sale Securities - Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 112,163 | $ 105,605 |
Gross Unrealized Gains | 63 | 7 |
Gross Unrealized (Losses) | (21,679) | (21,092) |
Fair Value | 90,547 | 84,520 |
U. S. Government agency and mortgage-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 82,192 | 73,480 |
Gross Unrealized Gains | 63 | 0 |
Gross Unrealized (Losses) | (15,007) | (14,434) |
Fair Value | 67,248 | 59,046 |
Corporate bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 18,002 | 19,773 |
Gross Unrealized Gains | 0 | 7 |
Gross Unrealized (Losses) | (4,747) | (5,125) |
Fair Value | 13,255 | 14,655 |
Subordinated notes | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 5,000 | 5,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | (764) | (398) |
Fair Value | 4,236 | 4,602 |
SBA loan pools | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 6,409 | 6,791 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | (1,083) | (1,073) |
Fair Value | 5,326 | 5,718 |
Municipal bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 560 | 561 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | (78) | (62) |
Fair Value | $ 482 | $ 499 |
Available-for-Sale Securities_2
Available-for-Sale Securities - Investment Securities in a Continuous Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 22,125 | $ 19,124 |
Less than 12 Months, Unrealized (Loss) | (1,547) | (1,107) |
12 Months or Longer, Fair Value | 66,287 | 63,632 |
Less than 12 Months, Unrealized (Loss) | (20,132) | (19,985) |
Fair Value | 88,412 | 82,756 |
Unrealized (Loss) | (21,679) | (21,092) |
U. S. Government agency and mortgage-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 18,306 | 11,126 |
Less than 12 Months, Unrealized (Loss) | (1,077) | (633) |
12 Months or Longer, Fair Value | 46,807 | 47,920 |
Less than 12 Months, Unrealized (Loss) | (13,930) | (13,801) |
Fair Value | 65,113 | 59,046 |
Unrealized (Loss) | (15,007) | (14,434) |
Corporate bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 1,959 |
Less than 12 Months, Unrealized (Loss) | 0 | (64) |
12 Months or Longer, Fair Value | 13,255 | 10,934 |
Less than 12 Months, Unrealized (Loss) | (4,747) | (5,061) |
Fair Value | 13,255 | 12,893 |
Unrealized (Loss) | (4,747) | (5,125) |
Subordinated notes | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 2,543 | 4,602 |
Less than 12 Months, Unrealized (Loss) | (457) | (398) |
12 Months or Longer, Fair Value | 1,693 | 0 |
Less than 12 Months, Unrealized (Loss) | (307) | 0 |
Fair Value | 4,236 | 4,602 |
Unrealized (Loss) | (764) | (398) |
SBA loan pools | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 1,276 | 1,437 |
Less than 12 Months, Unrealized (Loss) | (13) | (12) |
12 Months or Longer, Fair Value | 4,050 | 4,280 |
Less than 12 Months, Unrealized (Loss) | (1,070) | (1,061) |
Fair Value | 5,326 | 5,717 |
Unrealized (Loss) | (1,083) | (1,073) |
Municipal bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized (Loss) | 0 | 0 |
12 Months or Longer, Fair Value | 482 | 498 |
Less than 12 Months, Unrealized (Loss) | (78) | (62) |
Fair Value | 482 | 498 |
Unrealized (Loss) | $ (78) | $ (62) |
Available-for-Sale Securities_3
Available-for-Sale Securities - Narrative (Details) | 6 Months Ended | ||
Jun. 30, 2023 USD ($) position | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) position | |
Debt Securities, Available-for-Sale [Line Items] | |||
Number of unrealized loss positions | position | 49 | 46 | |
Number of available-for-sale securities | position | 50 | 47 | |
Unrealized holding losses depreciation percentage from amortized cost | (19.70%) | (20.30%) | |
Purchases of available-for-sale securities | $ 10,415,000 | $ 3,039,000 | |
Proceeds from sale of debt securities, available-for-sale | 1,800,000 | ||
Gain on sales of available-for-sale securities | 24,000 | 0 | |
U. S. Government agency and mortgage-backed securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Allowance for credit loss | 0 | ||
Purchases of available-for-sale securities | 10,400,000 | ||
Corporate bonds | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Allowance for credit loss | 0 | ||
Purchases of available-for-sale securities | 2,000,000 | ||
Subordinated notes | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Purchases of available-for-sale securities | $ 1,000,000 | ||
Available-for-Sale Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Allowance for credit loss | 0 | ||
Asset Pledged as Collateral | Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Financial instruments, owned, at fair value | $ 70,300,000 | $ 30,800,000 |
Available-for-Sale Securities_4
Available-for-Sale Securities - By Maturity Date (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due Within 5 years | $ 5,161 | $ 6,932 |
Due After 5 years through 10 years | 24,927 | 25,127 |
Due After 10 years | 82,075 | 73,546 |
Amortized Cost | 112,163 | 105,605 |
Fair Value | ||
Due Within 5 years | 4,537 | 6,690 |
Due After 5 years through 10 years | 18,846 | 18,633 |
Due After 10 years | 67,164 | 59,197 |
Total | 90,547 | 84,520 |
Available-for-sale securities with stated maturity dates | ||
Amortized Cost | ||
Due Within 5 years | 5,161 | 6,932 |
Due After 5 years through 10 years | 19,690 | 19,851 |
Due After 10 years | 5,120 | 5,342 |
Amortized Cost | 29,971 | 32,125 |
Fair Value | ||
Due Within 5 years | 4,537 | 6,690 |
Due After 5 years through 10 years | 14,712 | 14,504 |
Due After 10 years | 4,050 | 4,280 |
Total | 23,299 | 25,474 |
Corporate bonds | ||
Amortized Cost | ||
Due Within 5 years | 2,007 | 3,778 |
Due After 5 years through 10 years | 15,995 | 15,995 |
Due After 10 years | 0 | 0 |
Amortized Cost | 18,002 | 19,773 |
Fair Value | ||
Due Within 5 years | 1,855 | 3,721 |
Due After 5 years through 10 years | 11,400 | 10,934 |
Due After 10 years | 0 | 0 |
Total | 13,255 | 14,655 |
Subordinated notes | ||
Amortized Cost | ||
Due Within 5 years | 3,000 | 3,000 |
Due After 5 years through 10 years | 2,000 | 2,000 |
Due After 10 years | 0 | 0 |
Amortized Cost | 5,000 | 5,000 |
Fair Value | ||
Due Within 5 years | 2,543 | 2,830 |
Due After 5 years through 10 years | 1,693 | 1,772 |
Due After 10 years | 0 | 0 |
Total | 4,236 | 4,602 |
SBA loan pools | ||
Amortized Cost | ||
Due Within 5 years | 0 | 0 |
Due After 5 years through 10 years | 1,289 | 1,449 |
Due After 10 years | 5,120 | 5,342 |
Amortized Cost | 6,409 | 6,791 |
Fair Value | ||
Due Within 5 years | 0 | 0 |
Due After 5 years through 10 years | 1,276 | 1,438 |
Due After 10 years | 4,050 | 4,280 |
Total | 5,326 | 5,718 |
Municipal bonds | ||
Amortized Cost | ||
Due Within 5 years | 154 | 154 |
Due After 5 years through 10 years | 406 | 407 |
Due After 10 years | 0 | 0 |
Amortized Cost | 560 | 561 |
Fair Value | ||
Due Within 5 years | 139 | 139 |
Due After 5 years through 10 years | 343 | 360 |
Due After 10 years | 0 | 0 |
Total | 482 | 499 |
U. S. Government agency and mortgage-backed securities | ||
Amortized Cost | ||
Due Within 5 years | 0 | 0 |
Due After 5 years through 10 years | 5,237 | 5,276 |
Due After 10 years | 76,955 | 68,204 |
Amortized Cost | 82,192 | 73,480 |
Fair Value | ||
Due Within 5 years | 0 | 0 |
Due After 5 years through 10 years | 4,134 | 4,129 |
Due After 10 years | 63,114 | 54,917 |
Total | $ 67,248 | $ 59,046 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Credit Losses - Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | $ 930,734 | $ 848,316 | ||||
Allowance for credit losses | (24,098) | $ (24,780) | (10,310) | $ (9,929) | $ (9,737) | $ (9,905) |
Loans receivable, net | 906,636 | 838,006 | ||||
Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 511,655 | 437,443 | ||||
Allowance for credit losses | (10,039) | (9,809) | (6,966) | (4,980) | (4,889) | (5,063) |
Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 116,454 | 124,140 | ||||
Allowance for credit losses | (1,027) | (853) | (665) | (1,395) | (1,512) | (1,700) |
Commercial and Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 171,574 | 138,787 | ||||
Allowance for credit losses | (1,673) | (1,799) | (1,403) | (2,316) | (2,860) | (2,532) |
Consumer and Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 123,063 | 141,091 | ||||
Allowance for credit losses | (11,275) | (12,251) | (1,207) | (1,063) | (319) | (253) |
Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 5,525 | 4,922 | ||||
Allowance for credit losses | (33) | (21) | (24) | (58) | (56) | (78) |
Construction to Permanent - CRE | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 2,463 | 1,933 | ||||
Allowance for credit losses | $ (51) | $ (47) | $ (10) | $ (15) | $ (9) | $ (41) |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Credit Losses - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | Oct. 01, 2021 | Jan. 01, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans purchased | $ 16,443,000 | $ 98,720,000 | ||||||
Loans receivable, gross | $ 930,734,000 | $ 930,734,000 | $ 848,316,000 | |||||
Maximum period of credit extension | 18 months | |||||||
Loans receivable, term to reset to FHLB rate | 5 years | |||||||
Period for charged off of open-end credits | 180 days | |||||||
Period for charged off of close-end credits | 90 days | |||||||
Interest lost on nonaccrual loans | $ 133,000 | $ 115,000 | $ 268,000 | 221,000 | ||||
Maximum period for charged off of consumer installment loans | 180 days | |||||||
Number of contract modifications | 0 | 0 | ||||||
Discount to appraisal value | 5.80% | 5.80% | ||||||
Discount of appraisal value, selling costs | 8% | 8% | ||||||
Unfunded Loan Commitment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Allowance for credit loss | $ 1,495,000 | $ 1,495,000 | ||||||
SBA Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable, gross | 32,800,000 | 32,800,000 | 32,500,000 | |||||
Percentage of principal balance guaranteed | 75% | 75% | 90% | |||||
Transfer of loans held-for-sale to portfolio loans | 0 | $ 0 | 0 | 0 | ||||
SBA CARES Act Paycheck Protection Program | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable, gross | 135,000 | 135,000 | 157,000 | |||||
Syndicated and Leveraged Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable, gross | 5,800,000 | 5,800,000 | 5,800,000 | |||||
Non-Accrual Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Impaired financing receivable, interest income, cash basis | 193,000 | 114,000 | $ 336,000 | 204,000 | ||||
Commercial Real Estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Maximum percentage of credit extension based on market value of collateral | 75% | |||||||
Loans purchased | 0 | 0 | $ 0 | 20,700,000 | ||||
Loans receivable, gross | 511,655,000 | $ 511,655,000 | 437,443,000 | |||||
Multi-family Real Estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Maximum percentage of credit extension based on market value of collateral | 80% | |||||||
Construction | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Percentage of maximum loan to value | 75% | |||||||
Loans receivable, gross | 5,525,000 | $ 5,525,000 | 4,922,000 | |||||
Residential Real Estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans purchased | 0 | 0 | 0 | 0 | ||||
Loans receivable, gross | 116,454,000 | 116,454,000 | 124,140,000 | |||||
Consumer and Other | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable, gross | 123,063,000 | $ 123,063,000 | 141,091,000 | |||||
Consumer and Other | Minimum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable term | 2 years | |||||||
Consumer and Other | Maximum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable term | 5 years | |||||||
Consumer and Other | Unsecured Consumer Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable, gross | 68,300,000 | $ 68,300,000 | 78,900,000 | |||||
Consumer and Other | Unsecured Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans purchased | 4,300,000 | 32,000,000 | 13,600,000 | 50,400,000 | ||||
Consumer and Other | Home equity lines of credit | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans purchased | 1,500,000 | $ 27,700,000 | 1,500,000 | $ 27,700,000 | ||||
Construction to Permanent - CRE | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable, gross | $ 2,463,000 | $ 2,463,000 | $ 1,933,000 | |||||
Construction to Permanent - CRE | Minimum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable term | 20 years | |||||||
Construction to Permanent - CRE | Maximum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable term | 25 years |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Credit Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | $ 24,780 | $ 9,737 | $ 10,310 | $ 9,905 |
Charge-offs | (2,670) | (100) | (4,468) | (285) |
Recoveries | 280 | 17 | 460 | 34 |
Provisions (credits) | 1,708 | 275 | 4,795 | 275 |
Balance | 24,098 | 9,929 | 24,098 | 9,929 |
Impact of ASC 326 Adoption | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 13,001 | |||
Unfunded Loan Commitment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Provisions (credits) | 383 | 1,300 | ||
Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 9,809 | 4,889 | 6,966 | 5,063 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions (credits) | 230 | 91 | 1,447 | (83) |
Balance | 10,039 | 4,980 | 10,039 | 4,980 |
Commercial Real Estate | Impact of ASC 326 Adoption | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 1,626 | |||
Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 853 | 1,512 | 665 | 1,700 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 11 | 0 | 11 | 1 |
Provisions (credits) | 163 | (117) | 162 | (306) |
Balance | 1,027 | 1,395 | 1,027 | 1,395 |
Residential Real Estate | Impact of ASC 326 Adoption | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 189 | |||
Commercial and Industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 1,799 | 2,860 | 1,403 | 2,532 |
Charge-offs | (4) | 0 | (6) | (68) |
Recoveries | 9 | 11 | 16 | 26 |
Provisions (credits) | (131) | (555) | 41 | (174) |
Balance | 1,673 | 2,316 | 1,673 | 2,316 |
Commercial and Industrial | Impact of ASC 326 Adoption | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 219 | |||
Consumer and Other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 12,251 | 319 | 1,207 | 253 |
Charge-offs | (2,516) | (100) | (4,312) | (147) |
Recoveries | 260 | 6 | 433 | 7 |
Provisions (credits) | 1,280 | 838 | 2,970 | 950 |
Balance | 11,275 | 1,063 | 11,275 | 1,063 |
Consumer and Other | Impact of ASC 326 Adoption | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 10,977 | |||
Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 21 | 56 | 24 | 78 |
Charge-offs | (150) | 0 | (150) | (70) |
Recoveries | 0 | 0 | 0 | 0 |
Provisions (credits) | 162 | 2 | 163 | 50 |
Balance | 33 | 58 | 33 | 58 |
Construction | Impact of ASC 326 Adoption | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | (4) | |||
Construction to Permanent - CRE | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 47 | 9 | 10 | 41 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions (credits) | 4 | 6 | 12 | (26) |
Balance | 51 | 15 | 51 | 15 |
Construction to Permanent - CRE | Impact of ASC 326 Adoption | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 29 | |||
Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | 0 | 92 | 35 | 238 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions (credits) | 0 | 10 | 0 | (136) |
Balance | $ 0 | $ 102 | 0 | $ 102 |
Unallocated | Impact of ASC 326 Adoption | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance | $ (35) |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Credit Losses - Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for credit loss | $ 24,098 | $ 24,780 | $ 10,310 | $ 9,929 | $ 9,737 | $ 9,905 |
Business Activities Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 7,302 | 6,043 | ||||
Allowance for credit losses, collectively evaluated for impairment | 16,796 | 4,267 | ||||
Allowance for credit loss | 24,098 | 10,310 | ||||
Individually evaluated for impairment | 20,305 | 18,916 | ||||
Collectively evaluated for impairment, amount | 910,429 | 829,400 | ||||
Loans receivable, gross | 930,734 | 848,316 | ||||
Commercial Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for credit loss | 10,039 | 9,809 | 6,966 | 4,980 | 4,889 | 5,063 |
Commercial Real Estate | Business Activities Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 6,387 | 5,430 | ||||
Allowance for credit losses, collectively evaluated for impairment | 3,652 | 1,536 | ||||
Allowance for credit loss | 10,039 | 6,966 | ||||
Individually evaluated for impairment | 11,368 | 11,241 | ||||
Collectively evaluated for impairment, amount | 500,287 | 426,202 | ||||
Loans receivable, gross | 511,655 | 437,443 | ||||
Residential Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for credit loss | 1,027 | 853 | 665 | 1,395 | 1,512 | 1,700 |
Residential Real Estate | Business Activities Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 196 | 5 | ||||
Allowance for credit losses, collectively evaluated for impairment | 831 | 660 | ||||
Allowance for credit loss | 1,027 | 665 | ||||
Individually evaluated for impairment | 2,355 | 2,508 | ||||
Collectively evaluated for impairment, amount | 114,099 | 121,632 | ||||
Loans receivable, gross | 116,454 | 124,140 | ||||
Commercial and Industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for credit loss | 1,673 | 1,799 | 1,403 | 2,316 | 2,860 | 2,532 |
Commercial and Industrial | Business Activities Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 719 | 608 | ||||
Allowance for credit losses, collectively evaluated for impairment | 954 | 795 | ||||
Allowance for credit loss | 1,673 | 1,403 | ||||
Individually evaluated for impairment | 6,582 | 4,653 | ||||
Collectively evaluated for impairment, amount | 164,992 | 134,134 | ||||
Loans receivable, gross | 171,574 | 138,787 | ||||
Consumer and Other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for credit loss | 11,275 | 12,251 | 1,207 | 1,063 | 319 | 253 |
Consumer and Other | Business Activities Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses, collectively evaluated for impairment | 11,275 | 1,207 | ||||
Allowance for credit loss | 11,275 | 1,207 | ||||
Individually evaluated for impairment | 0 | 514 | ||||
Collectively evaluated for impairment, amount | 123,063 | 140,577 | ||||
Loans receivable, gross | 123,063 | 141,091 | ||||
Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for credit loss | 33 | 21 | 24 | 58 | 56 | 78 |
Construction | Business Activities Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses, collectively evaluated for impairment | 33 | 24 | ||||
Allowance for credit loss | 33 | 24 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment, amount | 5,525 | 4,922 | ||||
Loans receivable, gross | 5,525 | 4,922 | ||||
Construction to Permanent - CRE | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for credit loss | 51 | 47 | 10 | 15 | 9 | 41 |
Construction to Permanent - CRE | Business Activities Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses, collectively evaluated for impairment | 51 | 10 | ||||
Allowance for credit loss | 51 | 10 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment, amount | 2,463 | 1,933 | ||||
Loans receivable, gross | 2,463 | 1,933 | ||||
Unallocated | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for credit loss | 0 | $ 0 | 35 | $ 102 | $ 92 | $ 238 |
Unallocated | Business Activities Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses, collectively evaluated for impairment | 0 | 35 | ||||
Allowance for credit loss | 0 | 35 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment, amount | 0 | 0 | ||||
Loans receivable, gross | $ 0 | $ 0 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Credit Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 103,750 | |
2022 | 227,618 | |
2021 | 172,718 | |
2020 | 24,121 | |
2019 | 88,055 | |
Prior | 183,536 | |
Revolving | 130,936 | |
Loans receivable, gross | 930,734 | $ 848,316 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 103,739 | |
2022 | 226,886 | |
2021 | 171,780 | |
2020 | 24,121 | |
2019 | 60,909 | |
Prior | 173,633 | |
Revolving | 130,867 | |
Loans receivable, gross | 891,935 | |
Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 11 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 1,063 | |
Prior | 620 | |
Revolving | 0 | |
Loans receivable, gross | 1,694 | |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 732 | |
2021 | 938 | |
2020 | 0 | |
2019 | 26,083 | |
Prior | 9,283 | |
Revolving | 69 | |
Loans receivable, gross | 37,105 | |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 94,387 | |
2022 | 157,102 | |
2021 | 129,284 | |
2020 | 3,728 | |
2019 | 51,958 | |
Prior | 75,196 | |
Revolving | 0 | |
Loans receivable, gross | 511,655 | 437,443 |
Commercial Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 94,387 | |
2022 | 157,102 | |
2021 | 129,284 | |
2020 | 3,728 | |
2019 | 30,112 | |
Prior | 69,815 | |
Revolving | 0 | |
Loans receivable, gross | 484,428 | |
Commercial Real Estate | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 550 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable, gross | 550 | |
Commercial Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 21,296 | |
Prior | 5,381 | |
Revolving | 0 | |
Loans receivable, gross | 26,677 | |
Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 18 | |
2022 | 1,267 | |
2021 | 3,297 | |
2020 | 12,081 | |
2019 | 15,897 | |
Prior | 83,366 | |
Revolving | 528 | |
Loans receivable, gross | 116,454 | 124,140 |
Residential Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 18 | |
2022 | 1,267 | |
2021 | 3,297 | |
2020 | 12,081 | |
2019 | 15,897 | |
Prior | 80,192 | |
Revolving | 528 | |
Loans receivable, gross | 113,280 | |
Residential Real Estate | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 609 | |
Revolving | 0 | |
Loans receivable, gross | 609 | |
Residential Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 2,565 | |
Revolving | 0 | |
Loans receivable, gross | 2,565 | |
Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,481 | |
2022 | 15,732 | |
2021 | 25,615 | |
2020 | 8,312 | |
2019 | 13,716 | |
Prior | 9,089 | |
Revolving | 97,629 | |
Loans receivable, gross | 171,574 | 138,787 |
Commercial and Industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,470 | |
2022 | 15,000 | |
2021 | 24,677 | |
2020 | 8,312 | |
2019 | 8,908 | |
Prior | 7,810 | |
Revolving | 97,560 | |
Loans receivable, gross | 163,737 | |
Commercial and Industrial | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 11 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 513 | |
Prior | 11 | |
Revolving | 0 | |
Loans receivable, gross | 535 | |
Commercial and Industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 732 | |
2021 | 938 | |
2020 | 0 | |
2019 | 4,295 | |
Prior | 1,268 | |
Revolving | 69 | |
Loans receivable, gross | 7,302 | |
Consumer and Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 7,864 | |
2022 | 53,517 | |
2021 | 7,026 | |
2020 | 0 | |
2019 | 5,992 | |
Prior | 15,885 | |
Revolving | 32,779 | |
Loans receivable, gross | 123,063 | 141,091 |
Consumer and Other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 7,864 | |
2022 | 53,517 | |
2021 | 7,026 | |
2020 | 0 | |
2019 | 5,992 | |
Prior | 15,816 | |
Revolving | 32,779 | |
Loans receivable, gross | 122,994 | |
Consumer and Other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 69 | |
Revolving | 0 | |
Loans receivable, gross | 69 | |
Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 5,033 | |
2020 | 0 | |
2019 | 492 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable, gross | 5,525 | 4,922 |
Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 5,033 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable, gross | 5,033 | |
Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 492 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable, gross | 492 | |
Construction to Permanent - CRE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 2,463 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable, gross | 2,463 | $ 1,933 |
Construction to Permanent - CRE | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 2,463 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving | 0 | |
Loans receivable, gross | $ 2,463 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Credit Losses - Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | $ 930,734 | $ 848,316 |
Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 930,734 | 848,316 |
Non- accruing Loans | 20,634 | 18,593 |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 511,655 | 437,443 |
Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 511,655 | 437,443 |
Non- accruing Loans | 11,368 | 11,241 |
Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 116,454 | 124,140 |
Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 116,454 | 124,140 |
Non- accruing Loans | 2,565 | 2,470 |
Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 171,574 | 138,787 |
Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 171,574 | 138,787 |
Non- accruing Loans | 6,655 | 4,833 |
Consumer and Other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 123,063 | 141,091 |
Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 123,063 | 141,091 |
Non- accruing Loans | 46 | 49 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 5,525 | 4,922 |
Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 5,525 | 4,922 |
Non- accruing Loans | 0 | 0 |
Construction to Permanent - CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,463 | 1,933 |
Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,463 | 1,933 |
Non- accruing Loans | 0 | 0 |
Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 891,935 | |
Pass | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 891,935 | 801,032 |
Non- accruing Loans | 0 | 0 |
Pass | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 484,428 | |
Pass | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 484,428 | 401,313 |
Non- accruing Loans | 0 | 0 |
Pass | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 113,280 | |
Pass | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 113,280 | 121,045 |
Non- accruing Loans | 0 | 0 |
Pass | Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 163,737 | |
Pass | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 163,737 | 131,324 |
Non- accruing Loans | 0 | 0 |
Pass | Consumer and Other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 122,994 | |
Pass | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 122,994 | 141,019 |
Non- accruing Loans | 0 | 0 |
Pass | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 5,033 | |
Pass | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 5,033 | 4,398 |
Non- accruing Loans | 0 | 0 |
Pass | Construction to Permanent - CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,463 | |
Pass | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,463 | 1,933 |
Non- accruing Loans | 0 | 0 |
Special mention | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,694 | |
Special mention | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,694 | 26,305 |
Non- accruing Loans | 0 | 0 |
Special mention | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 550 | |
Special mention | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 550 | 24,559 |
Non- accruing Loans | 0 | 0 |
Special mention | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 609 | |
Special mention | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 609 | 625 |
Non- accruing Loans | 0 | 0 |
Special mention | Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 535 | |
Special mention | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 535 | 597 |
Non- accruing Loans | 0 | 0 |
Special mention | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 524 | |
Non- accruing Loans | 0 | |
Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 37,105 | |
Substandard | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 37,105 | 20,979 |
Non- accruing Loans | 20,634 | 18,593 |
Substandard | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 26,677 | |
Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 26,677 | 11,571 |
Non- accruing Loans | 11,368 | 11,241 |
Substandard | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,565 | |
Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,565 | 2,470 |
Non- accruing Loans | 2,565 | 2,470 |
Substandard | Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 7,302 | |
Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 7,302 | 6,866 |
Non- accruing Loans | 6,655 | 4,833 |
Substandard | Consumer and Other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 69 | |
Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 69 | 72 |
Non- accruing Loans | 46 | 49 |
Substandard | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 492 | |
Substandard | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 492 | |
Non- accruing Loans | 0 | |
Performing (Accruing) Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 910,100 | 829,723 |
Performing (Accruing) Loans | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 500,287 | 426,202 |
Performing (Accruing) Loans | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 113,889 | 121,670 |
Performing (Accruing) Loans | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 164,919 | 133,954 |
Performing (Accruing) Loans | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 123,017 | 141,042 |
Performing (Accruing) Loans | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 5,525 | 4,922 |
Performing (Accruing) Loans | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,463 | 1,933 |
Performing (Accruing) Loans | Pass | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 891,935 | 801,032 |
Performing (Accruing) Loans | Pass | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 484,428 | 401,313 |
Performing (Accruing) Loans | Pass | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 113,280 | 121,045 |
Performing (Accruing) Loans | Pass | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 163,737 | 131,324 |
Performing (Accruing) Loans | Pass | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 122,994 | 141,019 |
Performing (Accruing) Loans | Pass | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 5,033 | 4,398 |
Performing (Accruing) Loans | Pass | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,463 | 1,933 |
Performing (Accruing) Loans | Special mention | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,694 | 26,305 |
Performing (Accruing) Loans | Special mention | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 550 | 24,559 |
Performing (Accruing) Loans | Special mention | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 609 | 625 |
Performing (Accruing) Loans | Special mention | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 535 | 597 |
Performing (Accruing) Loans | Special mention | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 524 | |
Performing (Accruing) Loans | Substandard | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 16,471 | 2,386 |
Performing (Accruing) Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 15,309 | 330 |
Performing (Accruing) Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Performing (Accruing) Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 647 | 2,033 |
Performing (Accruing) Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 23 | 23 |
Performing (Accruing) Loans | Substandard | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 492 | |
Non-accruing Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non- accruing Loans | 20,634 | 18,593 |
Non-accruing Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non- accruing Loans | 11,368 | 11,241 |
Non-accruing Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non- accruing Loans | 2,565 | 2,470 |
Non-accruing Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non- accruing Loans | 6,655 | 4,833 |
Non-accruing Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non- accruing Loans | 46 | 49 |
Total Past Due | Performing (Accruing) Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 11,321 | 8,716 |
Total Past Due | Performing (Accruing) Loans | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 3,606 | 330 |
Total Past Due | Performing (Accruing) Loans | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,458 | 330 |
Total Past Due | Performing (Accruing) Loans | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,449 | 2,132 |
Total Past Due | Performing (Accruing) Loans | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 3,808 | 5,029 |
Total Past Due | Performing (Accruing) Loans | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 895 |
Total Past Due | Performing (Accruing) Loans | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Total Past Due | Performing (Accruing) Loans | Pass | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 10,458 | 6,486 |
Total Past Due | Performing (Accruing) Loans | Pass | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 3,284 | 0 |
Total Past Due | Performing (Accruing) Loans | Pass | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,458 | 330 |
Total Past Due | Performing (Accruing) Loans | Pass | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,908 | 232 |
Total Past Due | Performing (Accruing) Loans | Pass | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 3,808 | 5,029 |
Total Past Due | Performing (Accruing) Loans | Pass | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 895 |
Total Past Due | Performing (Accruing) Loans | Pass | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Total Past Due | Performing (Accruing) Loans | Special mention | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Total Past Due | Performing (Accruing) Loans | Special mention | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Total Past Due | Performing (Accruing) Loans | Special mention | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Total Past Due | Performing (Accruing) Loans | Special mention | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Total Past Due | Performing (Accruing) Loans | Special mention | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | |
Total Past Due | Performing (Accruing) Loans | Substandard | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 863 | 2,230 |
Total Past Due | Performing (Accruing) Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 322 | 330 |
Total Past Due | Performing (Accruing) Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Total Past Due | Performing (Accruing) Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 541 | 1,900 |
Total Past Due | Performing (Accruing) Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Total Past Due | Performing (Accruing) Loans | Substandard | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | |
Total Past Due | Non-accruing Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 19,859 | 17,358 |
Total Past Due | Non-accruing Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 11,368 | 11,241 |
Total Past Due | Non-accruing Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,955 | 2,453 |
Total Past Due | Non-accruing Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 6,510 | 3,637 |
Total Past Due | Non-accruing Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 26 | 27 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 7,735 | 3,974 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 3,606 | 330 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,054 | 330 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,678 | 1,490 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,397 | 929 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 895 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Pass | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 7,413 | 2,156 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Pass | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 3,284 | 0 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Pass | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,054 | 330 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Pass | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,678 | 2 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Pass | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,397 | 929 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Pass | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 895 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Pass | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Special mention | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Special mention | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Special mention | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Special mention | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Special mention | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | |
30 - 59 Days Past Due | Performing (Accruing) Loans | Substandard | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 322 | 1,818 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 322 | 330 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 1,488 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
30 - 59 Days Past Due | Performing (Accruing) Loans | Substandard | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | |
30 - 59 Days Past Due | Non-accruing Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,029 | 703 |
30 - 59 Days Past Due | Non-accruing Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
30 - 59 Days Past Due | Non-accruing Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 89 | 657 |
30 - 59 Days Past Due | Non-accruing Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 940 | 46 |
30 - 59 Days Past Due | Non-accruing Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,158 | 3,587 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 74 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 541 | 412 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,543 | 3,175 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Pass | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,617 | 3,175 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Pass | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Pass | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 74 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Pass | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Pass | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,543 | 3,175 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Pass | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Pass | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Special mention | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Special mention | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Special mention | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Special mention | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Special mention | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | |
60 - 89 Days Past Due | Performing (Accruing) Loans | Substandard | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 541 | 412 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 541 | 412 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Performing (Accruing) Loans | Substandard | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | |
60 - 89 Days Past Due | Non-accruing Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 71 | 395 |
60 - 89 Days Past Due | Non-accruing Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
60 - 89 Days Past Due | Non-accruing Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 71 | 0 |
60 - 89 Days Past Due | Non-accruing Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 395 |
60 - 89 Days Past Due | Non-accruing Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,428 | 1,155 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 330 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 230 | 230 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 868 | 925 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Pass | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,428 | 1,155 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Pass | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Pass | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 330 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Pass | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 230 | 230 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Pass | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 868 | 925 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Pass | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Pass | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Special mention | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Special mention | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Special mention | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Special mention | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Special mention | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | |
90 Days or Greater Past Due | Performing (Accruing) Loans | Substandard | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
90 Days or Greater Past Due | Performing (Accruing) Loans | Substandard | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | |
90 Days or Greater Past Due | Non-accruing Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 18,759 | 16,260 |
90 Days or Greater Past Due | Non-accruing Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 11,368 | 11,241 |
90 Days or Greater Past Due | Non-accruing Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,795 | 1,796 |
90 Days or Greater Past Due | Non-accruing Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 5,570 | 3,196 |
90 Days or Greater Past Due | Non-accruing Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 26 | 27 |
Current | Performing (Accruing) Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 898,779 | 821,007 |
Current | Performing (Accruing) Loans | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 496,681 | 425,872 |
Current | Performing (Accruing) Loans | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 112,431 | 121,340 |
Current | Performing (Accruing) Loans | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 162,470 | 131,822 |
Current | Performing (Accruing) Loans | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 119,209 | 136,013 |
Current | Performing (Accruing) Loans | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 5,525 | 4,027 |
Current | Performing (Accruing) Loans | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,463 | 1,933 |
Current | Performing (Accruing) Loans | Pass | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 881,477 | 794,546 |
Current | Performing (Accruing) Loans | Pass | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 481,144 | 401,313 |
Current | Performing (Accruing) Loans | Pass | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 111,822 | 120,715 |
Current | Performing (Accruing) Loans | Pass | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 161,829 | 131,092 |
Current | Performing (Accruing) Loans | Pass | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 119,186 | 135,990 |
Current | Performing (Accruing) Loans | Pass | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 5,033 | 3,503 |
Current | Performing (Accruing) Loans | Pass | Construction to Permanent - CRE | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 2,463 | 1,933 |
Current | Performing (Accruing) Loans | Special mention | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 1,694 | 26,305 |
Current | Performing (Accruing) Loans | Special mention | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 550 | 24,559 |
Current | Performing (Accruing) Loans | Special mention | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 609 | 625 |
Current | Performing (Accruing) Loans | Special mention | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 535 | 597 |
Current | Performing (Accruing) Loans | Special mention | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 524 | |
Current | Performing (Accruing) Loans | Substandard | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 15,608 | 156 |
Current | Performing (Accruing) Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 14,987 | 0 |
Current | Performing (Accruing) Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Current | Performing (Accruing) Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 106 | 133 |
Current | Performing (Accruing) Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 23 | 23 |
Current | Performing (Accruing) Loans | Substandard | Construction | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 492 | |
Current | Non-accruing Loans | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 775 | 1,235 |
Current | Non-accruing Loans | Substandard | Commercial Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Current | Non-accruing Loans | Substandard | Residential Real Estate | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 610 | 17 |
Current | Non-accruing Loans | Substandard | Commercial and Industrial | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | 145 | 1,196 |
Current | Non-accruing Loans | Substandard | Consumer and Other | Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable, gross | $ 20 | $ 22 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Credit Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: average recorded investment | $ 3,888 | $ 10,556 | $ 5,139 | $ 10,661 | |
With no related allowance recorded: interest income recognized | 92 | 48 | 177 | 96 | |
With a related allowance recorded: average recorded investment | 15,827 | 13,298 | 16,470 | 13,171 | |
With a related allowance recorded: interest income recognized | 98 | 70 | 293 | 118 | |
Impaired loans, average recorded investment | 19,715 | 23,854 | 21,609 | 23,832 | |
Impaired loans, interest income recognized | 190 | 118 | 470 | 214 | |
Business Activities Loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: recorded investment | 2,978 | 2,978 | $ 7,290 | ||
With no related allowance recorded: principal outstanding | 3,525 | 3,525 | 7,590 | ||
With a related allowance recorded: recorded investment | 17,327 | 17,327 | 11,626 | ||
With a related allowance recorded: principal outstanding | 17,145 | 17,145 | 11,624 | ||
Related Allowance | 7,302 | 7,302 | 6,043 | ||
Recorded Investment | 20,305 | 20,305 | 18,916 | ||
Principal Outstanding | 20,670 | 20,670 | 19,214 | ||
Commercial Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: average recorded investment | 387 | 6,611 | 680 | 6,697 | |
With no related allowance recorded: interest income recognized | 0 | 32 | 0 | 64 | |
With a related allowance recorded: average recorded investment | 10,405 | 8,843 | 10,651 | 8,858 | |
With a related allowance recorded: interest income recognized | 0 | 40 | 154 | 65 | |
Impaired loans, average recorded investment | 10,792 | 15,454 | 11,331 | 15,555 | |
Impaired loans, interest income recognized | 0 | 72 | 154 | 129 | |
Commercial Real Estate | Business Activities Loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: recorded investment | 387 | 387 | 2,435 | ||
With no related allowance recorded: principal outstanding | 430 | 430 | 2,428 | ||
With a related allowance recorded: recorded investment | 10,981 | 10,981 | 8,806 | ||
With a related allowance recorded: principal outstanding | 10,955 | 10,955 | 8,656 | ||
Related Allowance | 6,387 | 6,387 | 5,430 | ||
Recorded Investment | 11,368 | 11,368 | 11,241 | ||
Principal Outstanding | 11,385 | 11,385 | 11,084 | ||
Residential Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: average recorded investment | 748 | 2,818 | 992 | 2,829 | |
With no related allowance recorded: interest income recognized | 24 | 10 | 27 | 18 | |
With a related allowance recorded: average recorded investment | 1,352 | 368 | 1,468 | 408 | |
With a related allowance recorded: interest income recognized | 0 | 1 | 0 | 3 | |
Impaired loans, average recorded investment | 2,100 | 3,186 | 2,460 | 3,237 | |
Impaired loans, interest income recognized | 24 | 11 | 27 | 21 | |
Residential Real Estate | Business Activities Loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: recorded investment | 732 | 732 | 2,402 | ||
With no related allowance recorded: principal outstanding | 872 | 872 | 2,224 | ||
With a related allowance recorded: recorded investment | 1,623 | 1,623 | 106 | ||
With a related allowance recorded: principal outstanding | 1,448 | 1,448 | 105 | ||
Related Allowance | 196 | 196 | 5 | ||
Recorded Investment | 2,355 | 2,355 | 2,508 | ||
Principal Outstanding | 2,320 | 2,320 | 2,329 | ||
Commercial and Industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: average recorded investment | 2,046 | 607 | 2,181 | 614 | |
With no related allowance recorded: interest income recognized | 68 | 2 | 150 | 5 | |
With a related allowance recorded: average recorded investment | 4,052 | 3,961 | 4,341 | 3,762 | |
With a related allowance recorded: interest income recognized | 98 | 29 | 139 | 50 | |
Impaired loans, average recorded investment | 6,098 | 4,568 | 6,522 | 4,376 | |
Impaired loans, interest income recognized | 166 | 31 | 289 | 55 | |
Commercial and Industrial | Business Activities Loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: recorded investment | 1,859 | 1,859 | 1,939 | ||
With no related allowance recorded: principal outstanding | 2,223 | 2,223 | 2,424 | ||
With a related allowance recorded: recorded investment | 4,723 | 4,723 | 2,714 | ||
With a related allowance recorded: principal outstanding | 4,742 | 4,742 | 2,863 | ||
Related Allowance | 719 | 719 | 608 | ||
Recorded Investment | 6,582 | 6,582 | 4,653 | ||
Principal Outstanding | 6,965 | 6,965 | 5,287 | ||
Consumer and Other | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: average recorded investment | 128 | 520 | 293 | 521 | |
With no related allowance recorded: interest income recognized | 0 | 4 | 0 | 9 | |
With a related allowance recorded: average recorded investment | 18 | 126 | 10 | 143 | |
With a related allowance recorded: interest income recognized | 0 | 0 | 0 | 0 | |
Impaired loans, average recorded investment | 146 | 646 | 303 | 664 | |
Impaired loans, interest income recognized | 0 | 4 | 0 | 9 | |
Consumer and Other | Business Activities Loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: recorded investment | 0 | 0 | 514 | ||
With no related allowance recorded: principal outstanding | 0 | 0 | 514 | ||
Related Allowance | 0 | 0 | 0 | ||
Recorded Investment | 0 | 0 | 514 | ||
Principal Outstanding | 0 | 0 | $ 514 | ||
Construction | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded: average recorded investment | 579 | 0 | 993 | 0 | |
With no related allowance recorded: interest income recognized | 0 | 0 | 0 | 0 | |
Impaired loans, average recorded investment | 579 | 0 | 993 | 0 | |
Impaired loans, interest income recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Held for Sale (Details)
Loans Held for Sale (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | $ 5,900,000 | $ 5,900,000 | $ 5,200,000 | ||
Loans serviced, but owned by third party | 47,500,000 | 47,500,000 | 47,300,000 | ||
Servicing asset | 882,000 | 882,000 | 886,000 | ||
Servicing asset at fair value | 977,000 | 977,000 | 1,000,000 | ||
SBA Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Transfer of loans held-for-sale to portfolio loans | 0 | $ 0 | 0 | $ 0 | |
Commercial and Industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | 2,300,000 | 2,300,000 | 3,100,000 | ||
Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | $ 3,600,000 | $ 3,600,000 | $ 2,100,000 |
Loans Held for Sale - Analysis
Loans Held for Sale - Analysis of the Activity in the SBA Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Beginning balance | $ 893 | $ 626 | $ 886 | $ 584 |
Servicing rights capitalized | 24 | 79 | 58 | 131 |
Servicing rights amortized | (11) | (12) | (22) | (20) |
Servicing rights disposed | (24) | (8) | (40) | (10) |
Ending balance | $ 882 | $ 685 | $ 882 | $ 685 |
Business Combination, Goodwil_2
Business Combination, Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 1,107 | $ 1,107 |
Prime Bank | ||
Goodwill [Line Items] | ||
Goodwill | $ 1,100 | $ 1,100 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Non-interest bearing | $ 127,817 | $ 269,636 |
Interest bearing: | ||
Negotiable order of withdrawal accounts | 37,970 | 34,440 |
Savings deposits | 50,981 | 71,002 |
Money market deposits | 298,717 | 211,000 |
Certificates of deposit, less than $250,000 | 182,680 | 165,793 |
Certificates of deposit, $250,000 or greater | 56,088 | 59,877 |
Brokered deposits | 109,126 | 48,698 |
Interest bearing, Total | 735,562 | 590,810 |
Total Deposits | $ 863,379 | $ 860,446 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Prepaid debit card deposits | $ 158.1 | $ 197.3 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities of Certificates of Deposit (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Deposit Liability [Line Items] | |
1 year or less | $ 286,037 |
More than 1 year through 2 years | 43,167 |
More than 2 years through 3 years | 6,397 |
More than 3 years through 4 years | 496 |
More than 4 years through 5 years | 11,797 |
Contractual maturities of certificates of deposit | 347,894 |
CDs less than $250,000 | |
Deposit Liability [Line Items] | |
1 year or less | 136,053 |
More than 1 year through 2 years | 29,447 |
More than 2 years through 3 years | 4,887 |
More than 3 years through 4 years | 496 |
More than 4 years through 5 years | 11,797 |
Contractual maturities of certificates of deposit | 182,680 |
CDs $250,000 or greater | |
Deposit Liability [Line Items] | |
1 year or less | 45,467 |
More than 1 year through 2 years | 9,362 |
More than 2 years through 3 years | 1,259 |
More than 3 years through 4 years | 0 |
More than 4 years through 5 years | 0 |
Contractual maturities of certificates of deposit | 56,088 |
Brokered Deposits | |
Deposit Liability [Line Items] | |
1 year or less | 104,517 |
More than 1 year through 2 years | 4,358 |
More than 2 years through 3 years | 251 |
More than 3 years through 4 years | 0 |
More than 4 years through 5 years | 0 |
Contractual maturities of certificates of deposit | $ 109,126 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2021 USD ($) | May 30, 2019 derivative | Nov. 30, 2018 derivative | Jun. 30, 2023 USD ($) derivative | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) derivative | Jun. 30, 2022 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain (loss) on derivative instruments, net, pretax, total | $ | $ 0 | $ 0 | $ 0 | $ 0 | |||
Interest Rate Swap | Not Designated as Hedging Instrument | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Number of instruments held | derivative | 4 | 4 | |||||
Derivative, number of instruments added during the period | derivative | 2 | 2 | |||||
Interest Rate Swap | Designated as Hedging Instrument | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, notional amount | $ | $ 50,000,000 | ||||||
Term of contract | 7 years |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities | |
Interest Rate Swap One | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative asset, notional amount | $ 4,680 | $ 4,736 | |
Derivative liability, notional amount | $ 4,680 | $ 4,736 | |
Maturity (Years) | 5 years 10 months 2 days | 6 years 3 months 18 days | |
Fixed Rate | 5.25% | 5.25% | |
Variable Rate | 1.96% | 1.96% | |
Derivative asset, fair value | $ 146 | $ 106 | |
Derivative liability, fair value | (146) | (106) | |
Interest Rate Swap Two | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative asset, notional amount | 1,346 | 1,363 | |
Derivative liability, notional amount | $ 1,346 | $ 1,363 | |
Maturity (Years) | 6 years | 6 years 6 months | |
Fixed Rate | 4.38% | 4.38% | |
Variable Rate | 2% | 2% | |
Derivative asset, fair value | $ 98 | $ 97 | |
Derivative liability, fair value | $ (98) | $ (97) |
Share-based Compensation and _3
Share-based Compensation and Employee Benefit Plan - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 42 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Nov. 20, 2022 | Dec. 31, 2011 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Salaries and benefits | $ 4,661,000 | $ 3,763,000 | $ 8,928,000 | $ 7,109,000 | |||
Payments of ordinary dividends, common stock | $ 0 | ||||||
Employer matching contribution, match | 50% | ||||||
Employer matching contribution, percent of employees' gross pay | 6% | ||||||
Defined contribution plan, cost | 82,000 | 67,000 | $ 157,000 | 141,000 | |||
Restricted Stock | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Cost not yet recognized, amount | $ 190,000 | $ 190,000 | $ 190,000 | ||||
Cost not yet recognized, period for recognition | 2 years 3 months 18 days | ||||||
2012 Stock Plan | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 400,000 | 3,000,000 | |||||
Number of shares available for grant (in shares) | 234,617 | 234,617 | 234,617 | ||||
Share based compensation expense | $ 23,000 | 20,000 | $ 46,000 | 41,000 | |||
2012 Stock Plan | Maximum | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Shares approved for issuance | $ 300,000 | ||||||
2012 Stock Plan | Share-Based Payment Arrangement, Employee | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Share based compensation expense | 14,000 | 8,000 | 9,000 | 16,000 | |||
2012 Stock Plan | Share-Based Payment Arrangement, Nonemployee | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Share based compensation expense | 28,000 | 12,000 | 18,000 | 25,000 | |||
Salaries and benefits | $ 53,000 | $ 37,000 | $ 108,000 | $ 100,000 | |||
2012 Stock Plan | Restricted Stock | Share-Based Payment Arrangement, Tranche One | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
2012 Stock Plan | Restricted Stock | Share-Based Payment Arrangement, Tranche Two | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Award vesting period | 4 years | ||||||
2012 Stock Plan | Restricted Stock | Share-Based Payment Arrangement, Tranche Three | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Award vesting period | 5 years |
Share-based Compensation and _4
Share-based Compensation and Employee Benefit Plan -Restricted Shares (Details) - Restricted Stock - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Number of Shares Awarded (in shares) | 22,660 | 22,660 | 23,187 | 21,468 | 21,468 |
Weighted Average Grant Date Fair Value (usd per share) | $ 7.11 | $ 7.11 | $ 7.24 | $ 6.48 | $ 6.48 |
Share-based Compensation and _5
Share-based Compensation and Employee Benefit Plan - Restricted Shares (Details) - Restricted Stock - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested at beginning of year (in shares) | 21,468 | 21,468 |
Granted (in shares) | 2,496 | 2,496 |
Vested (in shares) | (777) | (777) |
Unvested at end of year (in shares) | 23,187 | 23,187 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested at beginning of year, weighted average grant date fair value (in usd per share) | $ 6.48 | $ 6.48 |
Granted, weighted average grant date fair value (in usd per share) | 17.25 | 17.25 |
Vested, weighted average grant date fair value (in usd per share) | 18.55 | 18.55 |
Unvested at end of year, weighted average grant date fair value (in usd per share) | $ 7.24 | $ 7.24 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basis (loss) earnings per share: | ||||
Net (loss) income attributable to Common shareholders | $ (615) | $ 1,265 | $ (1,314) | $ 2,065 |
Divided by: | ||||
Weighted average shares outstanding (in shares) | 3,965,186 | 3,957,260 | 3,965,186 | 3,956,878 |
Basic earnings per common share (usd per share) | $ (0.16) | $ 0.32 | $ (0.33) | $ 0.52 |
Diluted (loss) earnings per share: | ||||
Net (loss) income attributable to Common shareholders | $ (615) | $ 1,265 | $ (1,314) | $ 2,065 |
Weighted average shares outstanding (in shares) | 3,965,186 | 3,957,260 | 3,965,186 | 3,956,878 |
Effect of potentially dilutive restricted common shares (in shares) | 0 | 9,819 | 0 | 8,395 |
Divided by: | ||||
Weighted average diluted shares outstanding (in shares) | 3,965,186 | 3,967,079 | 3,965,186 | 3,965,273 |
Diluted earnings (loss) per share (usd per share) | $ (0.16) | $ 0.32 | $ (0.33) | $ 0.52 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of potentially dilutive restricted common shares (in shares) | 0 | 9,819 | 0 | 8,395 |
Restricted Stock | ||||
Diluted (loss) earnings per share: | ||||
Effect of potentially dilutive restricted common shares (in shares) | 1,528 | 427 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of potentially dilutive restricted common shares (in shares) | 1,528 | 427 |
Financial Instruments With Of_3
Financial Instruments With Off-balance Sheet Risk - Financial Instruments With Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Ceded Credit Risk [Line Items] | ||
Commitments to extend credit | $ 131,715 | $ 154,307 |
Unused lines of credit | ||
Ceded Credit Risk [Line Items] | ||
Commitments to extend credit | 97,432 | 100,986 |
Undisbursed construction loans | ||
Ceded Credit Risk [Line Items] | ||
Commitments to extend credit | 4,849 | 12,000 |
Home equity lines of credit | ||
Ceded Credit Risk [Line Items] | ||
Commitments to extend credit | 29,134 | 26,878 |
Future loan commitments | ||
Ceded Credit Risk [Line Items] | ||
Commitments to extend credit | 300 | 14,365 |
Financial standby letters of credit | ||
Ceded Credit Risk [Line Items] | ||
Commitments to extend credit | $ 0 | $ 78 |
Financial Instruments With Of_4
Financial Instruments With Off-balance Sheet Risk - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Risks and Uncertainties [Abstract] | ||
Banks reserve based on analysis in unfunded commitments | $ 1,500 | $ 8 |
Regulatory and Operational Ma_3
Regulatory and Operational Matters - Narrative (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Regulatory Capital Requirements under Banking Regulations [Abstract] | ||
Banking regulation, tier one leverage capital ratio, actual | 0.0854 | 0.0927 |
Regulatory and Operational Ma_4
Regulatory and Operational Matters - Regulatory Capital Amounts and Ratios (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Leverage ratio | 0.0854 | |
Parent Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Banking regulation, total capital, actual | $ 94,871 | $ 100,267 |
Tier 1 Leverage ratio | 0.0854 | 0.0927 |
Fair Value and Interest Rate _3
Fair Value and Interest Rate Risk - Narrative (Details) | Jun. 30, 2023 $ / shares |
Fair Value Disclosures [Abstract] | |
Stock value par value (in usd per share) | $ 100 |
Fair Value and Interest Rate _4
Fair Value and Interest Rate Risk - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 90,547 | $ 84,520 |
SBA servicing assets | 977 | 1,000 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets, total | 1,097,651 | 985,537 |
Financial liabilities, total | 1,101,860 | 976,427 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets, total | 1,085,209 | 966,941 |
Financial liabilities, total | 1,096,466 | 969,211 |
Level 1 | Carrying Amount | Brokered Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 109,126 | 48,698 |
Level 1 | Carrying Amount | Cash and noninterest bearing balances due from banks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 2,320 | 5,182 |
Level 1 | Carrying Amount | Interest-bearing deposits due from banks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 68,489 | 33,311 |
Level 1 | Estimated Fair Value | Brokered Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 108,641 | 47,684 |
Level 1 | Estimated Fair Value | Cash and noninterest bearing balances due from banks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 2,320 | 5,182 |
Level 1 | Estimated Fair Value | Interest-bearing deposits due from banks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 68,489 | 33,311 |
Level 2 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 80,665 | 75,093 |
Other investments | 4,450 | 4,450 |
Federal Reserve Bank stock | 2,523 | 2,627 |
Federal Home Loan Bank stock | 8,072 | 3,874 |
Loans held for sale | 5,860 | 5,211 |
Accrued interest receivable | 7,628 | 7,267 |
FHLB and other borrowings | 207,000 | 85,000 |
Senior notes | 11,653 | 11,640 |
Subordinated debt | 9,854 | 9,840 |
Junior subordinated debt owed to unconsolidated trust | 8,132 | 8,128 |
Accrued interest payable | 1,117 | 585 |
Interest rate swap liability | 244 | 203 |
Level 2 | Carrying Amount | Demand deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 127,817 | 269,636 |
Level 2 | Carrying Amount | Savings deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 50,981 | 71,002 |
Level 2 | Carrying Amount | Money market deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 298,717 | 211,000 |
Level 2 | Carrying Amount | Negotiable order of withdrawal accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 37,970 | 34,440 |
Level 2 | Carrying Amount | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 238,768 | 225,670 |
Level 2 | Carrying Amount | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap receivable | 244 | 203 |
Level 2 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 80,665 | 75,093 |
Other investments | 4,450 | 4,450 |
Federal Reserve Bank stock | 2,523 | 2,627 |
Federal Home Loan Bank stock | 8,072 | 3,874 |
Loans held for sale | 6,320 | 5,534 |
Accrued interest receivable | 7,628 | 7,267 |
FHLB and other borrowings | 205,964 | 83,853 |
Senior notes | 11,127 | 11,103 |
Subordinated debt | 9,826 | 9,680 |
Junior subordinated debt owed to unconsolidated trust | 8,132 | 8,128 |
Accrued interest payable | 1,117 | 585 |
Interest rate swap liability | 244 | 203 |
Level 2 | Estimated Fair Value | Demand deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 127,817 | 269,636 |
Level 2 | Estimated Fair Value | Savings deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 50,981 | 71,002 |
Level 2 | Estimated Fair Value | Money market deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 298,717 | 211,000 |
Level 2 | Estimated Fair Value | Negotiable order of withdrawal accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 37,970 | 34,440 |
Level 2 | Estimated Fair Value | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits | 235,475 | 221,353 |
Level 2 | Estimated Fair Value | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap receivable | 244 | 203 |
Level 3 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,882 | 9,427 |
Loans receivable, net | 906,636 | 838,006 |
SBA servicing assets | 882 | 886 |
Note payable | 481 | 585 |
Level 3 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,882 | 9,427 |
Loans receivable, net | 893,639 | 818,960 |
SBA servicing assets | 977 | 1,013 |
Note payable | $ 455 | $ 544 |
Fair Value and Interest Rate _5
Fair Value and Interest Rate Risk - Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | $ 90,547 | $ 84,520 |
U. S. Government agency and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 67,248 | 59,046 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 13,255 | 14,655 |
Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 4,236 | 4,602 |
SBA loan pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 5,326 | 5,718 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 482 | 499 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 90,547 | 84,520 |
Interest rate swap liability | 244 | 203 |
Fair Value, Recurring | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap receivable | 244 | 203 |
Fair Value, Recurring | U. S. Government agency and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 67,248 | 59,046 |
Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 13,255 | 14,655 |
Fair Value, Recurring | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 4,236 | 4,602 |
Fair Value, Recurring | SBA loan pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 5,326 | 5,718 |
Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 482 | 499 |
Level 1 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Level 1 | Fair Value, Recurring | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap receivable | 0 | 0 |
Level 1 | Fair Value, Recurring | U. S. Government agency and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Level 1 | Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Level 1 | Fair Value, Recurring | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Level 1 | Fair Value, Recurring | SBA loan pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Level 1 | Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Level 2 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 80,665 | 75,093 |
Interest rate swap liability | 244 | 203 |
Level 2 | Fair Value, Recurring | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap receivable | 244 | 203 |
Level 2 | Fair Value, Recurring | U. S. Government agency and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 67,248 | 59,046 |
Level 2 | Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 3,373 | 5,228 |
Level 2 | Fair Value, Recurring | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 4,236 | 4,602 |
Level 2 | Fair Value, Recurring | SBA loan pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 5,326 | 5,718 |
Level 2 | Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 482 | 499 |
Level 3 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 9,882 | 9,427 |
Interest rate swap liability | 0 | 0 |
Level 3 | Fair Value, Recurring | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap receivable | 0 | 0 |
Level 3 | Fair Value, Recurring | U. S. Government agency and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Level 3 | Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 9,882 | 9,427 |
Level 3 | Fair Value, Recurring | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Level 3 | Fair Value, Recurring | SBA loan pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Level 3 | Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | $ 0 | $ 0 |
Fair Value and Interest Rate _6
Fair Value and Interest Rate Risk - Reconciliation of Level 3 Available-for-sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Level 3 fair value, beginning of year | $ 10,205 | $ 11,237 | $ 9,427 | $ 13,180 |
Purchases | 0 | 0 | 0 | 0 |
Realized gain (loss) | 0 | 0 | 0 | 0 |
Unrealized loss | (323) | (895) | 455 | (2,838) |
Transfers in and /or out of Level 3 | 0 | 0 | 0 | 0 |
Level 3 fair value, end of year | $ 9,882 | $ 10,342 | $ 9,882 | $ 10,342 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Unrealized holding loss on securities | Unrealized holding loss on securities | Unrealized holding loss on securities | Unrealized holding loss on securities |
Fair Value and Interest Rate _7
Fair Value and Interest Rate Risk - Quantitative Information About Level 3 Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA servicing assets | $ 882 | $ 886 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net | 13,003 | 12,873 |
SBA servicing assets | $ 977 | $ 1,013 |
Level 3 | Real Estate Appraisals | Minimum | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net | 0.058 | 0.058 |
Level 3 | Real Estate Appraisals | Maximum | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net | 0.20 | 0.20 |
Level 3 | Discounted Cash Flows | Minimum | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA servicing assets | 0.1473 | 0.1473 |
Level 3 | Discounted Cash Flows | Maximum | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA servicing assets | 0.1490 | 0.1490 |