Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 01, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-38779 | ||
Entity Registrant Name | Rhinebeck Bancorp, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 83-2117268 | ||
Entity Address, Address Line One | 2 Jefferson Plaza | ||
Entity Address, City or Town | Poughkeepsie | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 12601 | ||
City Area Code | 845 | ||
Local Phone Number | 454-8555 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | RBKB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Common Stock, Shares Outstanding | 11,072,607 | ||
Entity Public Float | $ 24,809,797 | ||
Auditor Name | Wolf & Company, P.C. | ||
Auditor Firm ID | 392 | ||
Auditor Location | Boston, Massachusetts | ||
Entity Central Index Key | 0001751783 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 14,178 | $ 13,294 |
Federal funds sold | 7,524 | 14,569 |
Interest bearing depository accounts | 427 | 3,521 |
Total cash and cash equivalents | 22,129 | 31,384 |
Available for sale securities (at fair value) | 223,659 | |
Available for sale securities (at fair value) | 191,985 | |
Loans receivable (net of allowance for credit losses of $8,124 and $7,943, respectively) | 994,368 | |
Loans receivable (net of allowance for credit losses of $8,124 and $7,943, respectively) | 1,008,851 | |
Federal Home Loan Bank stock | 6,514 | 3,258 |
Accrued interest receivable | 4,616 | 4,255 |
Cash surrender value of life insurance | 30,031 | 29,794 |
Deferred tax assets (net of valuation allowance of $598 and $450, respectively) | 9,936 | 10,131 |
Premises and equipment, net | 17,567 | 18,722 |
Other real estate owned | 25 | |
Goodwill | 2,235 | 2,235 |
Intangible assets, net | 246 | 334 |
Other assets | 19,067 | 17,837 |
Total assets | 1,313,202 | 1,335,977 |
Deposits | ||
Non-interest bearing | 249,793 | 283,563 |
Interest bearing | 780,710 | 846,370 |
Total deposits | 1,030,503 | 1,129,933 |
Mortgagors' escrow accounts | 9,274 | 9,732 |
Advances from the Federal Home Loan Bank | 128,064 | 57,723 |
Subordinated debt | 5,155 | 5,155 |
Accrued expenses and other liabilities | 26,521 | 25,302 |
Total liabilities | 1,199,517 | 1,227,845 |
Stockholders' Equity | ||
Preferred stock (par value $0.01 per share; 5,000,000 authorized, no shares issued) | ||
Common stock (par value $0.01; authorized 25,000,000; issued and outstanding 11,072,607 and 11,284,565 at December 31, 2023 and December 31, 2022, respectively) | 111 | 113 |
Additional paid-in capital | 45,959 | 47,075 |
Unearned common stock held by the employee stock ownership plan | (3,273) | (3,491) |
Retained earnings | 100,386 | 96,624 |
Accumulated other comprehensive loss: | ||
Net unrealized loss on available for sale securities, net of taxes | (26,077) | (28,191) |
Defined benefit pension plan, net of taxes | (3,421) | (3,998) |
Total accumulated other comprehensive loss | (29,498) | (32,189) |
Total stockholders' equity | 113,685 | 108,132 |
Total liabilities and stockholders' equity | $ 1,313,202 | $ 1,335,977 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Statements of Financial Condition | ||
Allowance for loan losses | $ 7,943 | |
Allowance for credit losses | $ 8,124 | 7,943 |
Deferred tax valuation allowance | $ 598 | $ 450 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, share authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 25,000,000 | 25,000,000 |
Common Stock, shares issued | 11,072,607 | 11,284,565 |
Common stock, shares outstanding | 11,072,607 | 11,284,565 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 55,077 | $ 44,419 |
Interest and dividends on securities | 4,409 | 3,848 |
Other income | 1,173 | 325 |
Total interest and dividend income | 60,659 | 48,592 |
Interest Expense | ||
Interest expense on deposits | 17,617 | 5,611 |
Interest expense on borrowings | 5,077 | 1,145 |
Total interest expense | 22,694 | 6,756 |
Net interest income | 37,965 | 41,836 |
Provision for credit losses | 1,414 | |
Provision for credit losses | 1,702 | |
Provision for (reversal of) credit losses | 1,702 | |
Net interest income after provision for credit losses | 36,263 | 40,422 |
Non-interest Income | ||
Service charges on deposit accounts | 2,880 | 2,829 |
Net realized loss on sales and calls of securities | (170) | |
Net gain on sales of loans | 118 | 864 |
Increase in cash surrender value of life insurance | 665 | 640 |
Gain (loss) on disposal of premises and equipment | 46 | (38) |
Gain on life insurance | 221 | |
Investment advisory income | 1,164 | 1,233 |
Other | 686 | 538 |
Total non-interest income | 5,780 | 5,896 |
Non-interest Expense | ||
Salaries and employee benefits | 19,459 | 21,599 |
Occupancy | 4,256 | 4,583 |
Data processing | 2,015 | 1,882 |
Professional fees | 1,919 | 1,743 |
Marketing | 555 | 693 |
FDIC deposit insurance and other insurance | 1,232 | 829 |
Other real estate owned expense | 3 | |
Amortization of intangible assets | 88 | 99 |
Write-down on branch held-for-sale | 375 | |
Other | 6,527 | 5,994 |
Total non-interest expense | 36,429 | 37,422 |
Income before income taxes | 5,614 | 8,896 |
Provision for income taxes | 1,219 | 1,899 |
Net income | $ 4,395 | $ 6,997 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.41 | $ 0.65 |
Diluted (in dollars per share) | $ 0.40 | $ 0.64 |
Weighted average shares outstanding, basic (in shares) | 10,789,009 | 10,839,335 |
Weighted average shares outstanding, diluted (in shares) | 10,855,552 | 11,004,597 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Consolidated Statements of Comprehensive Income (Loss) | |||
Net Income (Loss) | $ 4,395 | $ 6,997 | |
Other Comprehensive Income (Loss) | |||
Unrealized holding gains (losses) arising during the period | [1] | 2,676 | (32,395) |
Reclassification adjustment for gains or losses included in net realized loss on sales and calls of securities on the consolidated statements of income | [1] | 170 | |
Net unrealized gains (losses) on available for sale securities | [1] | 2,676 | (32,225) |
Tax effect | [1] | (562) | 6,767 |
Unrealized gains (losses) on available for sale securities, net of tax | [1] | 2,114 | (25,458) |
Defined benefit pension plan: | |||
Actuarial gains (losses) arising during the period | [1] | 356 | (389) |
Reclassification adjustment for amortization of net actuarial loss | [1] | 374 | 267 |
Total | [1] | 730 | (122) |
Tax effect | [1] | (153) | 26 |
Defined benefit pension plan gains (losses), net of tax | [1] | 577 | (96) |
Other comprehensive income (loss): | [1] | 2,691 | (25,554) |
Total Comprehensive Income (Loss) | $ 7,086 | $ (18,557) | |
[1] For additional details related to other comprehensive loss see Note 15, “Accumulated Other Comprehensive Loss.” |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Unearned Common Stock held by the ESOP Cumulative Effect, Period of Adoption, Adjusted Balance | Unearned Common Stock held by the ESOP | Retained Earnings Cumulative effect of change in accounting principle | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Cumulative effect of change in accounting principle | Cumulative Effect, Period of Adoption, Adjusted Balance | Total | |
Balance at Dec. 31, 2021 | $ 113 | $ 46,573 | $ (3,709) | $ 89,627 | $ (6,635) | $ 125,969 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 6,997 | 6,997 | |||||||||||||
Other comprehensive income (loss) | (25,554) | (25,554) | [1] | ||||||||||||
ESOP shares committed to be allocated | (2) | 218 | 216 | ||||||||||||
Share-based compensation expense | 615 | 615 | |||||||||||||
Share redemption for tax withholding on restricted stock vesting | (111) | (111) | |||||||||||||
Balance at Dec. 31, 2022 | $ 113 | 113 | $ 47,075 | 47,075 | $ (3,491) | (3,491) | $ (633) | $ 95,991 | 96,624 | $ (32,189) | (32,189) | $ (633) | $ 107,499 | 108,132 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 4,395 | 4,395 | |||||||||||||
Other comprehensive income (loss) | 2,691 | 2,691 | [1] | ||||||||||||
ESOP shares committed to be allocated | (56) | 218 | 162 | ||||||||||||
Share-based compensation expense | 396 | 396 | |||||||||||||
Repurchase of common stock | (2) | (1,378) | (1,380) | ||||||||||||
Share redemption for tax withholding on restricted stock vesting | (78) | (78) | |||||||||||||
Balance at Dec. 31, 2023 | $ 111 | $ 45,959 | $ (3,273) | $ 100,386 | $ (29,498) | $ 113,685 | |||||||||
[1] For additional details related to other comprehensive loss see Note 15, “Accumulated Other Comprehensive Loss.” |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net income | $ 4,395 | $ 6,997 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and accretion of premiums and discounts on investments, net | 281 | 230 |
Net realized loss on sales and calls of securities | 170 | |
Provision for credit losses | 1,414 | |
Provision for credit losses | 1,702 | |
Loans originated for sale | (5,420) | (20,090) |
Proceeds from sale of loans | 4,877 | 24,656 |
Net gain on sale of loans | (118) | (864) |
Amortization of intangible assets | 88 | 99 |
Depreciation and amortization | 1,404 | 1,555 |
Write-down on branch held for sale | 375 | |
Net (gain) loss from disposal of premises and equipment | (46) | 38 |
Deferred income tax (benefit) expense | (352) | 14 |
Increase in cash surrender value of insurance | (665) | (640) |
Gain on life insurance | (221) | |
Net increase in accrued interest receivable | (361) | (889) |
Expense of earned ESOP shares | 162 | 216 |
Share-based compensation expense | 396 | 615 |
Net increase in other assets | (1,398) | (3,034) |
Net increase in accrued expenses and other liabilities | 1,949 | 4,308 |
Net cash provided by operating activities | 7,048 | 14,795 |
Cash Flows from Investing Activities | ||
Proceeds from sales and calls of securities | 14,816 | |
Proceeds from maturities and principal repayments of securities | 34,069 | 39,407 |
Purchases of securities | (30,224) | |
Net purchases of FHLB Stock | (3,256) | (1,936) |
Net increase in loans | (16,157) | (144,517) |
Purchases of bank owned life insurance | (23) | (23) |
Purchases of bank premises and equipment | (578) | (1,132) |
Net proceeds from life insurance | 672 | |
Net increase of other real estate owned | (25) | |
Net cash provided by (used in) investing activities | 14,702 | (123,609) |
Cash Flows from Financing Activities | ||
Net decrease in demand deposits, NOW, money market and savings accounts | (201,094) | (31,549) |
Net increase in time deposits | 101,664 | 59,483 |
Net (decrease) increase in mortgagors' escrow accounts | (458) | 602 |
Net increase in short-term debt | 28,727 | 34,505 |
Net increase in long-term debt | 41,614 | 5,177 |
Stock repurchase | (1,458) | (111) |
Net cash (used in) provided by financing activities | (31,005) | 68,107 |
Net decrease in cash and cash equivalents | (9,255) | (40,707) |
Cash and Cash Equivalents | ||
Beginning balance | 31,384 | 72,091 |
Ending balance | 22,129 | 31,384 |
Supplemental Disclosures of Cash Flow Information | ||
Interest | 21,976 | 6,070 |
Income taxes | $ 1,501 | $ 1,898 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Business and Significant Accounting Policies | |
Nature of Business and Significant Accounting Policies | 1. Nature of Business and Significant Accounting Policies The consolidated financial statements include accounts of Rhinebeck Bancorp, Inc. (the “Company”), a stock holding company, and its wholly-owned subsidiary, Rhinebeck Bank (the “Bank”), a New York chartered stock savings bank and its wholly-owned subsidiaries. The primary purpose of the Company is to act as a holding company for the Bank. The Bank provides a full range of banking and financial services to consumer and commercial customers through its fourteen branches and two representative offices located in Dutchess, Ulster, Orange, and Albany counties. Financial services including investment advisory and financial product sales are offered through a division of the Bank doing business as Rhinebeck Asset Management (“RAM”). On November 16, 2023, the Bank entered into an agreement with Heritage Financial Credit Union, a New York State chartered credit union, to sell the Bank’s Beacon branch office in Wappingers Falls, New York, for $2.9 million The sale included the land and building as well of all branch premises and equipment. All of the branch accounts have been redomiciled to the customer’s nearest branch and all employees will be placed in open positions. The branch sale closed on February 23, 2024. A description of the Company’s significant accounting policies are presented below. Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with GAAP and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the evaluation of goodwill for impairment and the valuation of deferred tax assets. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the New York State counties of Dutchess, Ulster, Orange, and Albany. The Company does not have any significant concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, the ability of its customers to repay their loans is substantially dependent on the economic conditions in the market areas in which the Company operates. Cash and Cash Equivalents Cash and due from banks and federal funds sold are recognized as cash equivalents in the consolidated statements of financial condition and cash flows. Federal funds sold generally mature in one day. The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Investment in Debt Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and are recorded at amortized cost. “Trading” securities, if any, are carried at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as held to maturity or trading are classified as “available for sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive loss, net of taxes. Purchase discounts are recognized in interest income using the interest method over the contractual terms of the security. Purchase premiums are recognized in interest income using the interest method to the instrument’s earliest call date. Realized gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates securities in an unrealized loss position for impairment related to credit losses on at least a quarterly basis. Securities in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Investment in FHLB Stock The Company is required to maintain an investment in FHLB capital stock, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for unearned income, including any allowance for credit losses and any unamortized deferred fees or costs. Interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized using the interest method over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Consumer, automobile and 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 not recognized until the loan returns to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses Effective January 1, 2023, the Company has modified its accounting policy for the ACL on loans as described below. The ACL on loans is management’s estimate of expected credit losses over the expected life of the loans at the reporting date. The ACL on loans is increased through a provision for credit losses recognized in the Consolidated Statements of Income and by recoveries of amounts previously charged off. The ACL on loans is reduced by charge-offs on loans. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on individually analyzed loans are generally recognized when the collateral or future cash flows are deemed to be insufficient to support the carrying value of the loan. The level of the ACL on loans is based on management’s ongoing review of relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable economic forecasts. Historical credit loss experience provides the basis for the calculation of loss given default and the estimation of expected credit losses. As discussed further below, adjustments to historical information are made for differences in specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency levels, or terms, as well as for changes in environmental conditions, that may not be reflected in historical loss rates. Management estimates the ACL on loans using both quantitative and qualitative factors. The methodology for evaluating quantitative factors consists of two basic components. The first component involves pooling loans into portfolio segments for loans that share similar risk characteristics. Pooled loan portfolio segments include commercial construction, commercial real estate, multi-family, commercial and industrial, residential real estate (including homeowner construction), home equity, indirect automobile and other consumer loans. The second component involves individually analyzed loans that do not share similar risk characteristics with loans that are pooled into portfolio segments or are determined for foreclosure. Loans not included in the pooled loans and that have generally aged into a non-accrual status are individually analyzed loans for which the ACL is measured using a discounted cash flow (“DCF”) methodology based upon the loan’s contractual effective interest rate, or, if the loan is collateral-dependent, at the fair value of the collateral. Factors management considers when measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due. For collateral-dependent loans for which repayment is to be provided substantially through the sale of the collateral, management adjusts the fair value for estimated costs to sell. Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of circumstances associated with the collateral. For pooled loans, the Company utilizes a DCF methodology to estimate credit losses over the expected life of the loans. The life of the loan excludes expected extensions, renewals and modifications. Management utilizes the national unemployment rate as an econometric factor with a one-year forecast period and one-year straight-line reversion period to the historical mean of its macroeconomic assumption in order to estimate the probability of default for each loan portfolio segment. The DCF methodology combines the probability of default, the loss given default, maturity date and prepayment speeds to estimate a reserve for each loan. The sum of all the loan level reserves is aggregated for each portfolio segment and a loss rate factor is derived. Because the methodology is based upon historical experience and trends, current economic data, reasonable and supportable economic forecasts, as well as management’s judgment, factors may arise that result in different estimations. Deteriorating conditions or assumptions could lead to further increases in the ACL on loans. In addition, various regulatory agencies periodically review the ACL on loans. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. The ACL on loans is an estimate, and ultimate losses may vary from management’s estimate. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial non-residential real estate Multi-family Construction and land development . Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Residential real estate . All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Generally we will originate loans with a loan-to-value ratio of up to 80% of the appraised value. Loans with loan-to-value ratios greater than 80% require the purchase of private mortgage insurance. Commercial . Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Indirect Automobile. All loans in this segment are secured by motor vehicles, which can depreciate rapidly. Loan collectability is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates, will have an effect on the credit quality of this segment. Home Equity Loans and Lines of Credit Consumer . Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. The Company made an accounting policy election to exclude accrued interest from the amortized cost basis of loans. In addition, the Company elected not to measure an allowance for credit losses for accrued interest receivable, because a timely write-off policy exists. The policy generally requires loans to be placed on non-accrual when principal or interest is 90 days or more past due unless the loan is well-secured and in the process of collection. When a loan is placed on non-accrual, accrued interest is reversed against interest income. Effective January 1, 2023, the Company has modified its accounting policy for the ACL on unfunded commitments as described below. The ACL on unfunded commitments is management’s estimate of expected credit losses over the expected contractual term (or life) in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. For each portfolio, estimated loss rates and funding factors are applied to the corresponding balance of unfunded commitments. For each portfolio, the estimated loss rates applied to unfunded commitments are the same quantitative and qualitative loss rates applied to the corresponding on-balance sheet amounts in determining the ACL on loans. The estimated funding factor applied to unfunded commitments represents the likelihood that the funding will occur and is based upon the Company’s average historical utilization rate for each portfolio. As a result of adopting ASU 2016-13, the Company recognized an increase in the ACL on unfunded commitments of $221 on January 1, 2023. Derivative Financial Instruments Derivative financial instruments are recognized as assets and liabilities on the consolidated statements of financial condition and measured at fair value. Loan Level Interest Rate Swaps Loans Held for Sale Loans held for sale are those mortgage loans the Company has the intent to sell in the foreseeable future and are carried at the lower of aggregate cost or market value, with valuation changes recorded in non-interest income. Gains and losses on sales of loans are recognized at the trade dates and are determined by the difference between the sales proceeds and the carrying value of the loans. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. Servicing Servicing assets are recognized as separate assets developed through the sale of residential mortgages. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain or loss on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to and over the period of the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance and charged to non-interest income, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Revenue Recognition The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of operations are as follows: ● Fees for services to customers include service charges on deposits which are included in non-interest income in the consolidated statements of income and consist of transaction-based fees: stop payment fees, Automated Clearing House (ACH) fees, account maintenance fees, wire fees, official check fees and overdraft services fees for various retail and business checking customers. These fees are earned on the day of the transaction or within the month of the service. Service charges on deposits are withdrawn directly from the customer’s account balance. ATM and debit card fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Sales of checks to depositors earn fees as a contractual discount to the retail price of the sale from a third-party provider. These fees earned are remitted by the third-party to the Company quarterly. ● The Company earns interchange fee income from credit/debit cardholder transactions conducted through MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized monthly, concurrently with the transaction processing services provided to the cardholder within the month. ● The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed; at such time, the OREO asset is derecognized and the gain or loss on the sale is recorded. Rental income received from leased OREO property is recognized during the month it is earned. ● Retail brokerage and advisory fee income is accrued monthly to properly record the revenues in the month they are earned. Advisory fees are collected in advance on a quarterly basis. These advisory fees are recorded in the first month of the quarter for which the service is being performed. Investments into mutual funds and annuities generate fees that are recorded as revenue at the time of the initial sale. In subsequent years the mutual funds and variable annuities generate recurring fees (referred to as 12B-1 fees) that are paid in advance on the anniversary of the original transaction. Fees that are transaction based are recognized at the point in time that the transaction is executed (i.e., trade date). Life insurance products are sold on a commission basis that generates a fee that is recorded as revenue within the month of the approved transaction. Other income includes rental income, mortgage origination and service fees and late fees on serviced mortgages. All items are recorded as revenue within the month that the service is provided. Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in operations. Costs relating to the development and improvement of the property are capitalized, subject to the resulting limit of fair value of the collateral. Gains or losses are included in operations upon disposal. Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms. Gains and losses on dispositions are recognized upon realization. Maintenance and repairs are expensed as incurred and improvements are capitalized. Rent expense is charged to operations over the expected lease term using the straight-line method. Bank-Owned Life Insurance The Company purchased bank owned life insurance (“BOLI”) on a chosen group of employees and directors. The Company is the owner and sole beneficiary of the policies. Earnings from BOLI are recognized as part of non-interest income. BOLI is carried at cash surrender value. Death benefit proceeds received in excess of the policies cash surrender values are recognized in income upon receipt. The Company does not intend to surrender these policies and, accordingly, no deferred taxes have been provided. Goodwill and Amortizable Intangible Assets The excess of the purchase price of an acquisition over the net fair value of the identifiable tangible and intangible assets and liabilities is assigned to goodwill. Goodwill is not amortizable, but is subject to at least an annual assessment, or more frequently in the presence of certain circumstances, for impairment. Other intangible assets are stated at cost, less accumulated amortization and consist of purchased customer accounts and core deposit intangibles. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships. The value of these assets are amortized over their estimated lives of 13 years. In the presence of certain circumstances, intangible assets may be assessed for impairment as well. Impairment exists when the carrying value exceeds its fair value. In such circumstances a charge for the relevant impairment is recognized and the net book value is reduced to the appropriate value. Employee Benefit Plans The Bank maintains the Rhinebeck Bank 401(k) Plan (the “401(k) Plan”) for substantially all of its employees, a defined benefit pension plan (frozen as of June 30, 2012), as well as Supplemental Executive Retirement Plans (the “SERPs”), all of which are tax qualified under the Internal Revenue Code. Employee 401(k) plan expense is the amount of matching contributions. Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. SERP expense is the net of interest cost and service cost, which allocates the benefits over years of service. We account for benefits under the defined benefit plan in accordance with Accounting Standards Codification (“ASC”) Topic 715 “Pension and Other Postretirement Benefits.” The guidance requires an employer to: (1) recognize in its statement of financial condition the over funded or underfunded status of a defined benefit postretirement plan measured as the difference between the fair value of plan assets and the benefit obligation; (2) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (3) recognize as a component of other comprehensive income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period. The Bank created an employee stock ownership plan (the “ESOP”) for the benefit of employees who meet certain eligibility requirements. Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated statements of financial condition. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The Company maintains an equity incentive plan to provide for issuance or granting of shares of common stock for stock options or restricted stock. The Company has recorded stock-based employee compensation cost using the fair value method as allowed under generally accepted accounting principles. Management estimated the fair values of all option grants using the Black-Scholes option-pricing model. Management estimated the expected life of the options using the simplified method as allowed under generally accepted accounting principles. The risk-free rate was determined utilizing the treasury yield for the expected life of the option contract. Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized. When tax returns are filed, it is highly expected that most positions taken would be sustained upon examination by the taxing authorities, while others may be subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company has no liabilities for uncertain tax positions at December 31, 2023 and 2022. Interest and penalties associated with unrecognized tax benefits, if any, would be classified in other non-interest expense in the consolidated statements of income. Earnings Per Share (“EPS”) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding under the treasury stock method if all potentially dilutive common shares (such as stock options) issued became vested during the period. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for either the basic or diluted earnings per share calculations. See Note 16 for the calculation of EPS. Comprehensive Income GAAP requires that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and the net actuarial gain (loss) of the defined benefit pension plan, are reported as a separate component of the stockholders’ equity section of the consolidated statements of financial condition, such items, along with net income, are components of comprehensive income. Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in certain instances, there are no quoted market prices for certain assets or liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. Fair value measurements focus on exit prices in an orderly transaction (that is, not a forced liq |
Available for Sale Securities
Available for Sale Securities | 12 Months Ended |
Dec. 31, 2023 | |
Available for Sale Securities | |
Available for Sale Securities | 2. Available for Sale Securities The amortized cost, gross unrealized gains and losses and fair values of available for sale securities are as follows: December 31, 2023 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 25,072 $ — $ (1,066) $ 24,006 U.S. government agency mortgage-backed securities–residential 156,523 — (27,943) 128,580 U.S. government agency securities 24,774 — (1,616) 23,158 Municipal securities (1) 3,163 — (260) 2,903 Corporate bonds 14,700 — (2,060) 12,640 Other 763 — (65) 698 Total $ 224,995 $ — $ (33,010) $ 191,985 December 31, 2022 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 40,172 $ — $ (2,315) $ 37,857 U.S. government agency mortgage-backed securities–residential 173,926 — (29,392) 144,534 U.S. government agency securities 24,785 — (2,336) 22,449 Municipal securities (1) 5,117 — (331) 4,786 Corporate bonds 14,700 — (1,483) 13,217 Other 644 172 — 816 Total $ 259,344 $ 172 $ (35,857) $ 223,659 (1) The following tables present the fair value and unrealized losses of the Company’s available for sale securities with gross unrealized losses aggregated by the length of time the individual securities have been in a continuous unrealized loss position: December 31, 2023 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ — $ — $ 24,006 $ (1,066) $ 24,006 $ (1,066) U.S. government agency mortgage-backed securities-residential — — 128,580 (27,943) 128,580 (27,943) U.S. government agency securities — — 23,158 (1,616) 23,158 (1,616) Municipal securities 512 (18) 2,276 (242) 2,788 (260) Corporate bonds — — 12,640 (2,060) 12,640 (2,060) Other 672 (65) — — 672 (65) Total $ 1,184 $ (83) $ 190,660 $ (32,927) $ 191,844 $ (33,010) December 31, 2022 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ — $ — $ 37,857 $ (2,315) $ 37,857 $ (2,315) U.S. government agency mortgage-backed securities-residential 23,384 (2,711) 121,151 (26,681) 144,535 (29,392) U.S. government agency securities 9,160 (869) 13,289 (1,467) 22,449 (2,336) Municipal securities 1,529 (4) 3,127 (327) 4,656 (331) Corporate bonds 6,873 (627) 5,844 (856) 12,717 (1,483) Total $ 40,946 $ (4,211) $ 181,268 $ (31,646) $ 222,214 $ (35,857) At December 31, 2023 and 2022, the Company had 233 and 242 individual available-for-sale securities with unrealized losses totaling $33,010 and $35,857, respectively, with an aggregate depreciation of 14.68% and 13.89%, respectively, from the Company’s amortized cost. On January 1, 2023, the Company adopted ASU 2016-13 and implemented the updated methodology for allowance for credit losses on its investment securities available-for-sale. The new methodology replaces the other-than-temporary impairment model that previously existed. The Company did not have a day 1 impact attributable to its investment securities portfolio. Unrealized losses on asset backed securities, state and municipal securities, and corporate bonds have not been recognized into income because the issuers are of high credit quality, we do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery. The decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available-for-sale securities was recorded as of December 31, 2023. Treasury securities, federal agency obligations, residential mortgage backed pass-through securities and commercial mortgage backed pass-through securities are issued by U.S. Government agencies and U.S. Government sponsored enterprises. Although a government guarantee exists on these investments, these entities are not legally backed by the full faith and credit of the federal government. Nonetheless, at this time we do not foresee any set of circumstances in which the government would not fund its commitments on these investments. The Company elected not to measure an allowance for credit losses for accrued interest receivable, because a timely write-off policy exists. A security is placed on non-accrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on non-accrual is reversed against interest income. There were no securities on non-accrual status, and therefore there was no accrued interest related to securities reversed against interest income, for the years ended December 31, 2023 and 2022. Total accrued interest receivable on available for sale securities totaled $602 and $533, at December 31, 2023 and 2022, respectively, and was reported in accrued interest receivable on the consolidated statements of financial condition. The amortized cost and fair value of available for sale debt securities at December 31, 2023 and 2022, by contractual maturities, are presented below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be called or repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary: December 31, 2023 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 15,449 $ 15,170 $ 16,923 $ 16,512 After 1 but within 5 years 32,860 30,569 46,162 42,225 After 5 but within 10 years 19,400 16,968 21,689 19,572 After 10 years — — — — Total Maturities 67,709 62,707 84,774 78,309 Mortgage-backed securities 156,523 128,580 173,926 144,534 Other 763 698 644 816 Total $ 224,995 $ 191,985 $ 259,344 $ 223,659 At December 31, 2023 and 2022, available for sale securities with a carrying value of $13,130 and $15,407, respectively, were pledged to secure Federal Home Loan Bank of New York borrowings. In addition, $75,769 and $958 of available for sale securities, respectively, were pledged to secure borrowings at the Federal Reserve Bank of New York (“FRBNY”). Proceeds from the sale of available for sale securities aggregated $0 and $14,816 for the years ended December 31, 2023 and 2022, respectively. There were no gross gains during the periods ended December 31, 2023 and December 31, 2022. During the periods ended December 31, 2023 and 2022, there were gross losses of |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Allowance for Credit Losses | |
Loans and Allowance for Credit Losses | 3. Loans and Allowance for credit losses As of and prior to December 31, 2022, loans receivable was accounted for under the incurred loss model. As of January 1, 2023, portfolio loans are accounted for under the current expected credit loss model. In accordance with the adoption of the current expected credit loss model, December 31, 2023 loan balances are reported at their amortized cost basis, to include net deferred origination fees and unearned income. Accordingly, some of the information presented is not comparable from period to period. A summary of the Company’s loan portfolio is as follows: At December 31, 2023 2022 Commercial real estate loans: Construction $ 20,208 $ 20,329 Non-residential 324,493 282,422 Multi-family 83,376 67,777 Residential real estate loans 77,259 53,720 Commercial and industrial loans (1) 88,927 87,982 Consumer loans: Indirect automobile 394,245 457,223 Home equity 11,990 11,507 Other consumer 8,095 9,479 Total gross loans 1,008,593 990,439 Dealer reserves (2) 8,382 11,872 Allowance for credit losses (8,124) (7,943) Total net loans $ 1,008,851 $ 994,368 (1) Includes $272 and $537 in SBA PPP loans at December 31, 2023 and 2022, respectively. (2) At December 31, 2022, dealer reserves totaled $11,109 and other deferred origination fees totaled $763 . At December 31, 2023 and 2022, the unpaid principal balances of loans held for sale, included in the residential real estate category above, were $908 and $247, respectively. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, multifamily, construction and commercial loans. To assist in the review process, the Company engages an independent third-party to review a significant portion of loans within these segments. Consumer loans are rated as performing or non-performing based on payment status in accordance with regulatory retail credit guidance. Management uses the results of these reviews as part of its annual review process. In addition, management utilizes delinquency reports, the watch list and other loan reports to monitor credit quality of other loan segments. Credit Quality Indicators The Company uses the following definitions for risk ratings: Watch Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered Pass The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category, as well as gross write-offs for the year ended December 31, 2023, and by fiscal year of origination as of December 31, 2023. Revolving Loans by Origination Year Loans 2023 2022 2021 2020 2019 Prior Amortized Cost Total Commercial construction Pass $ - $ 8,227 $ - $ - $ - $ - $ - $ 8,227 Watch 9,328 2,653 - - - - - 11,981 Total commercial construction 9,328 10,880 - - - - - 20,208 Commercial non-residential Pass $ 34,508 $ 43,534 $ 26,600 $ 16,673 $ 39,943 $ 44,412 $ - $ 205,670 Watch 16,575 19,235 14,854 12,747 7,573 38,004 - 108,988 Special mention - - - - 5,884 963 - 6,847 Substandard - - - - 465 2,523 - 2,988 Total commercial non-residential 51,083 62,769 41,454 29,420 53,865 85,902 - 324,493 Multifamily Pass $ 807 $ 18,765 $ 30,374 $ 2,100 $ 1,540 $ 4,348 $ - $ 57,934 Watch 1,000 6,754 6,925 - 1,265 9,498 - 25,442 Total multifamily 1,807 25,519 37,299 2,100 2,805 13,846 - 83,376 Residential Performing $ 28,670 $ 25,260 $ 2,150 $ 2,732 $ 2,626 $ 14,197 $ - $ 75,635 Non-performing - 257 - - - 1,367 - 1,624 Total residential 28,670 25,517 2,150 2,732 2,626 15,564 - 77,259 Commercial and industrial Pass $ 12,637 $ 26,070 $ 10,804 $ 1,474 $ 962 $ 1,254 $ 11,662 $ 64,863 Watch 2,082 3,227 321 620 482 1,603 14,204 22,539 Special mention 224 - 301 - 33 - - 558 Substandard - - - - 83 841 43 967 Total commercial and industrial 14,943 29,297 11,426 2,094 1,560 3,698 25,909 88,927 Current-period gross write-offs - - 710 - - 126 - 836 Indirect automobile Performing $ 101,230 $ 160,439 $ 72,941 $ 34,196 $ 19,035 $ 5,773 $ - $ 393,614 Non-performing 31 259 196 69 63 13 - 631 Total indirect automobile 101,261 160,698 73,137 34,265 19,098 5,786 - 394,245 Current-period gross write-offs 198 1,492 1,034 418 309 126 - 3,577 Home equity Performing $ - $ - $ - $ - $ 34 $ 4,064 $ 7,793 $ 11,891 Non-performing - - - - - 99 - 99 Total home equity - - - - 34 4,163 7,793 11,990 Other consumer Performing $ 2,928 $ 3,477 $ 856 $ 411 $ 138 $ 22 $ 238 $ 8,070 Non-performing - - - 24 - - 1 25 Total other consumer 2,928 3,477 856 435 138 22 239 8,095 Current-period gross write-offs 8 30 10 11 - 3 - 62 Total Loans Pass/performing $ 180,780 $ 285,772 $ 143,725 $ 57,586 $ 64,278 $ 74,070 $ 19,693 $ 825,904 Watch 28,985 31,869 22,100 13,367 9,320 49,105 14,204 168,950 Special mention 224 - 301 0 5,917 963 - 7,405 Substandard - - - - 548 3,364 43 3,955 Non-performing 31 516 196 93 63 1,479 1 2,379 Total Loans $ 210,020 $ 318,157 $ 166,322 $ 71,046 $ 80,126 $ 128,981 $ 33,941 $ 1,008,593 Total Current-period gross write-offs $ 206 $ 1,522 $ 1,754 $ 429 $ 309 $ 255 $ - $ 4,475 The following table presents the classes of the loan portfolio summarized by the pass category and the criticized categories of special mention and substandard within the internal risk system for the year ended December 31, 2022. December 31, 2022 Pass Special Mention Substandard Total Commercial real estate: Construction $ 20,329 $ — $ — $ 20,329 Non-residential 271,491 7,904 3,027 282,422 Multifamily 67,777 — — 67,777 Residential real estate 52,265 — 1,455 53,720 Commercial and industrial 83,680 3,825 477 87,982 Consumer: Indirect automobile 456,112 — 1,111 457,223 Home equity 11,290 — 217 11,507 Other consumer 9,428 — 51 9,479 Total $ 972,372 $ 11,729 $ 6,338 $ 990,439 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The past due status of all classes of loans is determined based on contractual due dates for loan payments. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans: December 31, 2023 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 20,208 $ — $ — $ — $ 20,208 $ — Non-residential 319,467 1,276 2,129 1,621 324,493 1,621 Multifamily 83,376 — — — 83,376 — Residential real estate 75,998 888 37 336 77,259 1,624 Commercial and industrial 88,646 17 83 181 88,927 181 Consumer: Indirect automobile 382,042 10,155 1,478 570 394,245 631 Home equity 11,843 — 48 99 11,990 99 Other consumer 7,844 202 24 25 8,095 25 Total $ 989,424 $ 12,538 $ 3,799 $ 2,832 $ 1,008,593 $ 4,181 December 31, 2022 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 20,329 $ — $ — $ — $ 20,329 $ — Non-residential 275,860 4,701 479 1,382 282,422 1,382 Multifamily 67,413 364 — — 67,777 — Residential real estate 51,476 1,417 246 581 53,720 1,794 Commercial and industrial 87,742 57 — 183 87,982 183 Consumer: Indirect automobile 444,418 10,714 1,389 702 457,223 797 Home equity 11,279 51 58 119 11,507 217 Other consumer 9,208 149 71 51 9,479 51 Total $ 967,725 $ 17,453 $ 2,243 $ 3,018 $ 990,439 $ 4,424 All of our non-accrual loans are individually analyzed. The Company has one individually analyzed home equity loan of $98 that was accruing interest at December 31, 2023. The following table presents the Company’s amortized cost basis of non-accrual loans for which there is no related ACL at December 31, 2023: December 31, 2023 Commercial real estate: Non-residential $ 1,152 Residential real estate 1,624 Commercial and industrial 150 Consumer: Indirect automobile 160 Home equity 99 Other consumer 24 Total $ 3,209 For the year ended December 31, 2023, $242 in accrued interest was reversed for non-accrual loans. Total accrued interest receivable associated with loans totaled $4,014 and $3,723, at December 31, 2023 and December 31, 2022, respectively, and was reported in accrued interest receivable on the consolidated statements of financial condition. Impaired loans disclosures presented below as of December 31, 2022 represent requirements prior to the adoption of CECL on January 1, 2023. The following table summarizes information regarding impaired loans by loan portfolio class: December 31, 2022 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 1,382 $ 2,472 $ — $ 1,967 Residential real estate 1,794 2,445 — 1,890 Commercial and industrial 183 242 — 309 Consumer: Indirect automobile 371 439 — 336 Home equity 217 219 — 146 Other consumer 49 53 — 38 Total $ 3,996 $ 5,870 $ — $ 4,686 With an allowance recorded: Commercial real estate: Commercial and industrial $ — $ — $ — $ 114 Consumer: Indirect automobile 426 435 107 293 Other consumer 2 2 2 11 Total $ 428 $ 437 $ 109 $ 418 Total: Commercial real estate: Non-residential $ 1,382 $ 2,472 $ — $ 1,967 Residential real estate 1,794 2,445 — 1,890 Commercial and industrial 183 242 — 423 Consumer: Indirect automobile 797 874 107 629 Home equity 217 219 — 146 Other consumer 51 55 2 49 Total $ 4,424 $ 6,307 $ 109 $ 5,104 The Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying statements of financial condition. The Company and participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments to participating lenders and disburses required escrow funds to relevant parties. At December 31, 2023 and 2022, the Company was servicing loans for participants aggregating $44,418 and $8,466, respectively. The Company services certain loans that it has sold to third parties. The aggregate balances of loans serviced for others were $282,269 and $301,235 as of December 31, 2023 and 2022, respectively. Included in these loans serviced for others are loans serviced for the Federal Home Loan Mortgage Corporation with a recourse provision whereby the Company is obligated to bear all costs when a default, including foreclosure, occurs. At December 31, 2023 and 2022, the maximum contingent liability associated with loans sold with recourse was $1,873 and $276, respectively, which is not recorded in the consolidated financial statements. Losses are borne in priority order by the borrower, private mortgage insurance and The balance of capitalized servicing rights, included in other assets at December 31, 2023 and 2022, were $1,977 and $2,409, respectively. Fair value exceeds carrying value. No impairment charges related to servicing rights were recognized during the years ended December 31, 2023 or 2022. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $152 and $625 at December 31, 2023 and 2022, respectively. Activity in the Company’s ACL for loans for the year ended December 31, 2023 is summarized in the table below. The Adoption of the CECL Standard row presents adjustments recorded on January 1, 2023 through retained earnings. Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2023 Allowance for credit losses: Beginning balance $ 3,031 $ 103 $ 881 $ 3,868 $ 60 $ 7,943 Adoption of CECL standard (860) 54 (383) 1,710 59 580 Provision for (reversal of) credit losses 545 137 833 165 (14) 1,666 Loans charged-off — — (836) (3,577) (62) (4,475) Recoveries — 52 111 2,182 65 2,410 Ending balance $ 2,716 $ 346 $ 606 $ 4,348 $ 108 $ 8,124 Ending balance: Loans individually analyzed $ 16 $ — $ 32 $ 166 $ 2 $ 216 Loans collectively analyzed $ 2,700 $ 346 $ 574 $ 4,182 $ 106 $ 7,908 Loan receivables: Ending balance $ 428,077 $ 77,259 $ 88,927 $ 394,245 $ 20,085 $ 1,008,593 Ending balance: Loans individually analyzed $ 1,621 $ 1,624 $ 181 $ 631 $ 222 $ 4,279 Loans collectively analyzed $ 426,456 $ 75,635 $ 88,746 $ 393,614 $ 19,863 $ 1,004,314 Activity in the Company’s allowance for loan losses for the year ended December 31, 2022 is summarized in the table below. Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals December 31, 2022 Allowance for loan losses: Beginning balance $ 3,317 $ 54 $ 725 $ 3,416 $ 47 $ 7,559 (Credit to) provision for loan losses (286) (63) 493 1,205 65 1,414 Loans charged-off — (44) (456) (2,660) (107) (3,267) Recoveries — 156 119 1,907 55 2,237 Ending balance $ 3,031 $ 103 $ 881 $ 3,868 $ 60 $ 7,943 Ending balance: Loans deemed impaired $ — $ — $ — $ 107 $ 2 $ 109 Loans not deemed impaired $ 3,031 $ 103 $ 881 $ 3,761 $ 58 $ 7,834 Loan receivables: Ending balance $ 370,528 $ 53,720 $ 87,982 $ 457,223 $ 20,986 $ 990,439 Ending balance: Loans deemed impaired $ 1,382 $ 1,794 $ 183 $ 797 $ 268 $ 4,424 Loans not deemed impaired $ 369,146 $ 51,926 $ 87,799 $ 456,426 $ 20,718 $ 986,015 The Company has also recorded an ACL for unfunded commitments, which was recorded in other liabilities; see Note 11 to the consolidated financial statements. The provision is recorded within the provision for credit losses on the Company’s income statement. The following table summarizes the provision for credit losses for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Provision for credit losses - loans $ 1,666 $ 1,414 Provision for credit losses - unfunded commitments 36 — Provision for credit losses $ 1,702 $ 1,414 In the normal course of business, the Company grants loans to officers, directors and other related parties. Balances and activity of such loans during the years presented were not material. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 4. The changes in the carrying value of goodwill are as follows: Year Ended December 31, 2023 2022 Beginning balance $ 2,235 $ 2,235 Activity during the period — — Ending balance $ 2,235 $ 2,235 The Company performs its annual goodwill impairment test during the fourth quarter. The results of the Company’s impairment tests indicated that the reporting unit’s fair value was greater than its carrying value and therefore no impairment of goodwill existed at either December 31, 2023 or 2022. Even though the Company determined that there was no goodwill impairment, a sustained decline in the value of its stock price as well as values of other financial institutions, declines in revenue for the Company beyond our current forecasts or significant adverse changes in the operating environment for the reporting unit may result in a future impairment charge. The changes in the carrying value of the customer list and core deposit intangibles are as follows: Years Ended December 31, 2023 2022 Beginning balance $ 334 $ 433 Acquisition activity — — Amortization (88) (99) Ending balance $ 246 $ 334 Accumulated amortization and impairment $ 1,031 $ 943 Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized over their estimated useful lives. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. The values assigned to customer lists and core deposit intangibles is based upon the application of the income approach. The intangibles are expected to have useful lives of approximately 13 years. The Company recognized $88 and $99 of amortization expense related to its intangible assets for the years ended December 31, 2023 and 2022, respectively. At December 31, 2023, based upon a review of the intangibles, the Company determined that the fair value of the amortizable intangible assets exceeded their carrying values. As of December 31, 2023, the future amortization expense for amortizable intangible assets for the respective years is as follows: 2024 $ 79 2025 60 2026 29 2027 21 2028 16 Thereafter 41 Total $ 246 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Premises and Equipment | 5. Premises and Equipment Premises and equipment are summarized as follows: December 31, 2023 2022 Land $ 3,356 $ 3,732 Buildings and improvements 27,774 27,617 Furniture, fixtures and equipment 14,889 14,652 Construction in process 461 230 Total 46,480 46,231 Less accumulated depreciation (28,913) (27,509) Net $ 17,567 $ 18,722 Depreciation expense totaled $1,512 and $1,555 for the years ended December 31, 2023 and 2022, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits | |
Deposits | 6. Deposits Deposits balances are summarized as follows: December 31, December 31, 2023 2022 Non-interest bearing demand deposits $ 249,793 $ 283,563 Interest bearing accounts: NOW 125,628 156,285 Savings 146,172 176,916 Money market 190,864 296,787 Time certificates of deposit 318,046 216,382 Total interest bearing accounts 780,710 846,370 Total deposits $ 1,030,503 $ 1,129,933 The Company has established a relationship to participate in a reciprocal deposit program with other financial institutions. The reciprocal deposit program provides access to FDIC-insured deposit products in aggregate amounts exceeding the current limits for depositors. At December 31, 2023 and 2022, total reciprocal deposits were $40,009 and $10,023, respectively. Included in time certificates of deposit at December 31, 2023 and 2022 were reciprocal deposits totaling $23,357 and $10,023, respectively, with original maturities of one Time deposits included brokered deposits of $0 and $34,041 at December 31, 2023 and 2022, respectively. Time certificates of deposit in denominations of $250 or greater were Contractual maturities of time certificates of deposit at December 31, 2023 are summarized below: December 31, 2023 Within 1 year $ 291,212 1 – 2 years 23,124 2 – 3 years 1,735 3 – 4 years 450 4 – 5 years 1,525 Total $ 318,046 |
Debt and FHLB Stock
Debt and FHLB Stock | 12 Months Ended |
Dec. 31, 2023 | |
Debt and FHLB Stock | |
Debt and FHLB Stock | . FHLB Borrowings and Stock The Company is a member of the FHLB. At December 31, 2023 and 2022, the Company had access to a preapproved secured line of credit with the FHLB of $656,516 and $667,905, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At December 31, 2023 and 2022, the Company had pledged assets of $228,172 and $195,455, respectively. The Company had no outstanding overnight line of credit balances with the FHLB at either December 31, 2023 or 2022. These borrowings would mature the following business day. At December 31, 2023, the Company had structured borrowings in the amount of $128,064. The outstanding principal amounts and the related terms and rates at December 31, 2023 were as follows: Term Principal Maturity Rate Due in one year Long term Fixed short-term 10,000 January 8, 2024 5.64 % 10,000 — Fixed short-term 10,000 February 6, 2024 5.68 % 10,000 — Fixed medium-term 20,000 March 21, 2024 5.18 % 20,000 — Fixed short-term 10,000 April 23, 2024 5.70 % 10,000 — Fixed short-term 10,000 May 17, 2024 5.59 % 10,000 — Fixed short-term 10,000 June 17, 2024 5.60 % 10,000 — Fixed short-term 10,000 July 17, 2024 5.59 % 10,000 — Fixed medium-term 20,000 March 20, 2025 4.47 % — 20,000 Fixed medium-term 722 October 31, 2025 4.87 % — 722 Fixed medium-term 5,000 November 3, 2025 4.87 % — 5,000 Fixed medium-term 728 December 5, 2025 4.34 % — 728 Fixed medium-term 1,233 September 21, 2026 5.20 % — 1,233 Fixed medium-term 381 November 9, 2026 5.04 % — 381 Fixed medium-term 20,000 May 2, 2028 3.88 % — 20,000 Total $ 128,064 Weighted Average Rate 5.06 % $ 80,000 $ 48,064 The Company is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. The Company evaluates for impairment based on the ultimate recovery ability of the cost. No impairment was recognized at either December 31, 2023 or 2022. Subordinated Debt In addition to the Bank, the Company has one other wholly-owned subsidiary, RSB Capital Trust I (the “Trust”). In 2005, the Trust issued $5,000 of pooled trust preferred securities in a private placement and issued 155 shares of common stock at $1 par value per share, now owned by the Company. The Trust, which has no independent assets or operations, was formed in 2005 for the sole purpose of issuing trust preferred securities and investing the proceeds thereof in an equivalent amount of junior subordinated debentures. The proceeds from the issuance of the trust preferred securities were down-streamed to the Bank and are currently considered Tier 1 capital for purposes of determining the Bank’s capital ratios. The duration of the Trust is 30 years. The subordinated debt securities of $5,155 are unsecured obligations of the Company and are subordinate and junior in right of payment to all present and future senior indebtedness of the Company. The Company has entered into a guarantee, which together with its obligations under the subordinated debt securities and the declaration of trust governing the Trust, including its obligations to pay costs, expenses, debts and liabilities, other than trust securities, provides a full and unconditional guarantee of amounts on the capital securities. The subordinated debentures, which bear interest at three month CME term Secured Overnight Financing Rate (“SOFR”) plus 2% and a relative spread adjustment of 0.26% was 7.64% at December 31, 2023. The rate at December 31, 2022 was 6.69% and was based on the three month LIBOR plus 2.00% . The subordinated debentures mature on Other Borrowings The Company has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at December 31, 2023 or 2022. On October 1, 2021, the Company entered into an agreement with Pacific Community Bankers Bank, for a $50,000 line of credit. There were no advances outstanding under this line of credit at December 31, 2023 or 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | 8. Income Taxes The components of the provision for income taxes are as follows: Years Ended December 31, 2023 2022 Current expense: Federal $ 1,314 $ 1,621 State 257 264 Total current expense 1,571 1,885 Deferred expense: Federal (352) 14 State (148) 4 Change in valuation allowance 148 (4) Total deferred expense (352) 14 Total provision for income taxes $ 1,219 $ 1,899 The following is a reconciliation between the expected federal statutory income tax rate of 21% (2023 and 2022) and the Company’s actual income tax expense and rate: Years ended December 31, 2023 2022 Provision at statutory rate $ 1,179 21.00 % $ 1,868 21.00 % Tax exempt income (192) (3.42) % (145) (1.63) % State income taxes, net of federal income tax benefit 213 3.79 % 209 2.35 % Other, net 19 0.34 % (33) (0.37) % Effective income tax and rate $ 1,219 21.71 % $ 1,899 21.35 % Provision for income taxes directly reflects the expected tax associated with the pre-tax income generated for the given year and certain regulatory requirements. The effective tax rate was 21.71% and 21.35% for the years ended December 31, 2023 and 2022, respectively. The statutory tax rate is impacted by the benefits derived mainly from tax-exempt bond income and income received on the bank owned life insurance to arrive at the effective tax rate. The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 are presented below: December 31, 2023 2022 Deferred tax assets: Allowance for credit losses $ 2,263 $ 2,145 Deferred expenses 18 28 Deferred compensation 1,652 1,493 Unrecognized pension liability 910 1,063 Postretirement liability 1,002 975 Unrealized loss on securities 6,932 7,494 Other 658 576 Gross deferred tax assets 13,435 13,774 Deferred tax liabilities: Prepaid expenses (515) (467) Prepaid pension (1,222) (1,304) Deferred loan fees (154) (209) Depreciation and amortization (476) (563) Mortgage servicing rights (534) (650) Gross deferred tax liabilities (2,901) (3,193) Net deferred tax asset 10,534 10,581 Deferred tax valuation allowance (598) (450) Deferred tax assets, net of allowance $ 9,936 $ 10,131 Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the relative federal or state tax law to the taxable income determined. The Company determines deferred income taxes using the liability (or balance sheet method). Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases at the currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. Deferred income tax expense or benefit results from changes in deferred tax assets (“DTAs”) and liabilities between periods. DTAs are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. New York State (“NYS”) tax law provides for a permanent deduction of income from “qualified” loans for community banks. Accordingly, the Company has generally incurred NYS taxable losses and incurred minimal NYS income tax liability. As the Company has not established a history of strong NYS taxable income, the Company has established a full valuation allowance against the NYS deferred tax asset. Retained earnings at December 31, 2023 and 2022 include a contingency reserve for loan losses of $1,534, which represents the tax reserve balance existing at December 31, 1987 and is maintained in accordance with provisions of the Internal Revenue Code applicable to mutual savings banks. Amounts transferred to the reserve have been claimed as deductions from taxable income and, if the reserve is used for purposes other than to absorb losses on loans, a federal income tax liability could be incurred. It is not anticipated that the Company will incur a federal income tax liability relating to this reserve balance and accordingly, deferred income taxes of $414 at December 31, 2023 and $414 at December 31, 2022 have not been recognized. The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2020 through 2023. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2020 are open. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefits | |
Employee Benefits | 9. Employee Benefits Employee Stock Ownership Plan On January 1, 2019, the Bank established an ESOP to provide eligible employees the opportunity to own Company stock. The plan is a tax-qualified retirement plan for the benefit of Bank employees. On January 16, 2019, the Company granted a loan to the ESOP to purchase 436,425 shares of the Company’s common stock at a price of $10.00 per share. The loan is payable annually over 20 years at a rate per annum equal to the Prime Rate, reset annually on January 1st (7.50% at January 1, 2023 and 8.50% at January 1, 2024). Loan payments are principally funded by cash contributions from the Bank. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. The balance of the ESOP loan was $3,612 and $3,741 at December 31, 2023 and 2022, respectively. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released annually is 21,821 through 2039. Shares held by the ESOP include the following: Year ended December 31, 2023 2022 Allocated 87,286 65,463 Committed to be allocated 21,821 21,821 Unallocated 327,318 349,141 Paid out to participants (10,988) (4,376) Total shares 425,437 432,049 The fair value of unallocated shares was $2,635 and $3,181 at December 31, 2023 and 2022, respectively. Total compensation expense recognized in connection with the ESOP for the years ended December 31, 2023 and 2022 was $162 and $216, respectively. Share-Based Compensation Plan On May 26, 2020, stockholders of the Company approved the 2020 Equity Incentive Plan (the “EIP”). The EIP authorizes the issuance or delivery to participants of up to 763,743 shares of Rhinebeck Bancorp common stock pursuant to grants of incentive and non-qualified stock options, restricted stock awards and restricted stock units. Of this number, the maximum number of shares of Rhinebeck Bancorp common stock that may be issued under the EIP pursuant to the exercise of stock options is 545,531 shares, and the maximum number of shares of Rhinebeck Bancorp common stock that may be issued as restricted stock awards or restricted stock units is 218,212 shares. These amounts represented 4.90% and 1.96%, respectively, of the number of shares of common stock issued in the stock offering of Rhinebeck Bancorp, including the shares issued to Rhinebeck Bancorp, MHC. Pursuant to terms of the EIP, on August 25, 2020, the Board of Directors granted restricted stock and stock options to employees and directors. All of the awards granted to date vest annually over a three-year period from the date of the grant and the term of each option is ten years. As of December 31, 2023, there were 103,813 stock options and 49,778 restricted stock awards that remain available for future grants. The fair value of each option granted under the EIP is estimated on the date of grant using the Black-Scholes Option-Pricing Model. The expected volatility is based on the historical volatility of a peer group of comparable SEC-reporting bank holding companies. The dividend yield assumption is based on the Company’s expectation that it will not pay dividends. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the date of grant. The Company has elected to recognize forfeitures as they occur. The Company followed SEC safe-harbor guidelines when determining the expected term of the options granted. The weighted average assumptions used and fair value for options granted under the EIP as of the grant date were as follows: Expected term (years) 6 Expected dividend yield 0% Weighted-average expected volatility 25.45% Weighted-average risk-free interest rate 0.29% Weighted-average fair value of options granted $1.67 A summary of options under the EIP as of December 31, 2023 is presented below: Weighted - Weighted-Average Number of Average Remaining Contractual Shares Exercise Price Term (in Years) Options outstanding at beginning of year 437,930 $ 6.62 7.66 Expired (666) 6.57 - Forfeited (1,001) 6.57 - Options outstanding at December 31, 2023 436,263 $ 6.62 6.64 Options exercisable at December 31, 2023 436,263 $ 6.62 6.64 The aggregate intrinsic value of the options outstanding and exercisable, which fluctuates based on changes in the fair market value of the Company’s stock, at December 31, 2023, was $626 . The aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of period and the weighted-average exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on December 31, 2023. As of December 31, 2023, there was no unrecognized compensation cost related to the nonvested stock options granted under the EIP, as all options were fully vested at December 31, 2023. The following table summarizes the Company’s restricted stock activity for the year ended December 31, 2023: Weighted-Average Number Grant Date of Shares Fair Value per Share Non-vested restricted stock at beginning of year 56,266 $ 6.57 Vested (55,598) 6.57 Forfeited (668) 6.57 Non-vested restricted stock at December 31, 2023 - $ - As of December 31, 2023, there was no unrecognized compensation cost related to the nonvested restricted stock awards granted under the EIP, as all restricted stock awards were fully vested at December 31, 2023. The aggregate fair value of the options and restricted stock awards that vested during the year ended December 31, 2023 was $245 and $385, respectively. For the years ended December 31, 2023 and 2022, share-based compensation expense under the plan was $396 and $615, respectively. Pension Plan The Bank maintains a noncontributory defined benefit pension plan covering substantially all of its employees 21 years of age or older who have completed at least one year of service. The Bank’s defined benefit plan was frozen as of June 30, 2012. The following table sets forth the plan’s funded status and amounts recognized in the Company’s consolidated statements of financial condition: December 31, 2023 2022 Projected and accumulated benefit obligation $ (17,868) $ (17,138) Plan assets at fair value 18,062 16,906 Funded status included in accrued expenses and other liabilities $ 194 $ (232) The following table details the plan’s funded status: 2023 2022 Change in benefit projected obligation: Projected benefit obligation at beginning of year $ 17,138 $ 23,055 Service cost - - Interest cost 861 634 Actuarial loss (gain) 570 (5,874) Benefits paid (701) (677) Projected benefit obligation at end of year 17,868 17,138 Change in plan assets: Fair value of plan assets at beginning of year 16,906 22,839 Actual return on plan assets 1,857 (5,256) Contributions - - Benefits paid (701) (677) Fair value of plan assets at end of year 18,062 16,906 Funded status $ 194 $ (232) In 2023, the net actuarial loss in the projected benefit obligation resulted primarily from a decrease in the discount rate. The gain on plan assets during the fiscal year ended December 31, 2023 of $1,857 was due to favorable asset market conditions. The weighted-average assumptions used by the Company to determine the pension benefit obligation consisted of the following: Years ended December 31, 2023 2022 Discount rate 4.90 % 5.15 % Rate of compensation increase N/A N/A Amounts recognized in accumulated other comprehensive loss consisted of the following: Years ended December 31, 2023 2022 Net actuarial loss $ 4,330 $ 5,060 The net periodic pension cost (benefit) and amounts recognized in other comprehensive income are as follows: Years ended December 31, 2023 2022 Interest cost $ 861 $ 634 Expected return on plan assets (932) (1,007) Amortization of unrecognized loss 374 267 Net periodic cost (benefit) $ 303 $ (106) Weighted-average assumptions used by the Company to determine the net periodic pension cost consisted of the following: Years ended December 31, 2023 2022 Discount rate 5.15 % 2.80 % Expected long-term return on plan assets 6.00 % 4.75 % Rate of compensation increase N/A N/A The expected long-term rate of return on plan assets has been determined by applying historical average investment returns from published indexes relating to the current allocation of assets in the plan. Plan assets are invested in pooled separate accounts consisting of underlying investments in nine diversified investment funds. As of December 31, 2023, the investment funds included six equity funds and two bond funds. As of December 31, 2022, the investment funds included The assets of the plan are invested under the supervision of the Company’s investment committee in accordance with the investment policy statement. The investment options of the plan are chosen in a manner consistent with generally accepted standards of fiduciary responsibility. The investment performance of the Company’s individual investment managers, with the assistance of the Company’s investment consultant, is monitored on a quarterly basis and is reviewed at least annually relative to the objectives and guidelines as stated in the Company’s investment policy statement. The fair value of the Company’s pension plan assets, by fair value hierarchy, are as follows: December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 12,293 $ — $ — $ 12,293 Equity 5,769 — — 5,769 Total assets at fair value $ 18,062 $ — $ — $ 18,062 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 11,600 $ — $ — $ 11,600 Equity 5,306 — — 5,306 Total assets at fair value $ 16,906 $ — $ — $ 16,906 The pooled separate accounts are valued at the net asset per unit based on either the observable net asset value of the underlying investment or the net asset value of the underlying pool of securities. Net asset value is based on the value of the underlying assets owned by the fund, minus its liabilities and then divided by the number of shares outstanding. Benefit payments are as follows: Year ended December 31, 2023 2022 Benefits paid $ 701 $ 677 As of December 31, 2023, the following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Fiscal Year Ending Pension Benefits 2024 $ 930 2025 970 2026 990 2027 1,040 2028 1,090 2029 – 2033 6,050 The Company made no contributions to the plan in either 2023 or 2022. Defined Contribution Plan The Company sponsors a 401(k) defined contribution plan. Participants are permitted, in accordance with the provisions of Section 401(k) of the Internal Revenue Code, to contribute up to 25% of their earnings (as defined) into the plan with the Company matching up to 6%, subject to Internal Revenue Service limitations. The Company’s contributions charged to operations amounted to $1,071 and $1,152 for the years ended December 31, 2023 and 2022, respectively. Bank Owned Life Insurance The Company has an investment in and is the beneficiary of life insurance policies on the lives of certain officers and directors. The purpose of these life insurance policies is to provide income through the appreciation in cash surrender value of the policies, which is expected to offset the cost of the deferred compensation plans. These policies had aggregate cash surrender values of $30,031 and $29,794 at December 31, 2023 and 2022, respectively. Net earnings on these policies aggregated $665 and $640 for the years ended December 31, 2023 and 2022, respectively, which are included in non-interest income in the consolidated statements of income. Deferred Compensation Arrangements Directors’ Plan, (formerly the “Trustees Plan”) The Company’s 1991 Plan (the “Directors’ Plan”) covers directors who elect to defer fees earned. Under the terms of the Directors’ Plan, each participant may elect to defer all or part of their annual director’s fees. Upon resignation, retirement, or death, the participants’ total deferred compensation, including earnings thereon, will be paid out. At December 31, 2023 and 2022, $3,278 and $2,761, respectively, are included in accrued expenses and other liabilities, which represents cumulative amounts deferred and earnings thereon. Total expense related to the Directors’ Plan years ended December 31, 2023 and 2022 were $207 and $232, respectively, which are included in non-interest expense in the consolidated statements of income. Executive Long-Term Incentive and Retention Plan The Company maintains an Executive Long-Term Incentive and Retention Plan (the “Executive Plan”). Participation in the Executive Plan is limited to officers of the Company designated as participants by the Board of Directors and who filed a properly completed and executed participation agreement in accordance with the terms of the Executive Plan. Under the Executive Plan, the Board of Directors may grant annual cash incentive awards equal to a percentage of a participant’s base salary at the rate in effect on the last day of the Plan year, as determined by the Board of Directors based on the attainment of criteria established annually by the Board of Directors. Incentive awards under the Executive Plan are credited to the participant’s incentive benefit account as of the last day of the Executive Plan year to which the award relates and earn interest at a rate determined annually by the Board of Directors. Participants vest in their benefit accounts in accordance with the vesting schedule approved by the Board of Directors, which ranges from one Group Term Replacement Plan Under the terms of the “Group Term Replacement Plan”, the Company provides postretirement life insurance benefits to certain officers. The liability related to these postretirement benefits is being accrued over the individual participants’ service period and aggregated $1,642 and $1,580 at December 31, 2023 and 2022, respectively. The Company recognized expenses of $61 and $157 for the years ended December 31, 2023 and 2022, respectively, related to this plan which are included in salaries and employee benefits expense in the consolidated statements of income. Other Director and Officer Postretirement Benefits The Company has individual fee continuation agreements with certain directors and a supplemental retirement agreement with an executive officer which provide for fixed postretirement benefits to be paid to the directors and the officer, or their beneficiaries, for periods ranging from 15 to 20 years. In addition, the Company has agreements with certain directors which provide for certain postretirement life insurance benefits. The liability related to these postretirement benefits is being accrued over the individual participants’ service period and aggregated $2,068 and $2,031 , respectively, at December 31, 2023 and 2022. The Company recognized expenses of |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 10. Leases As of December 31, 2023, the Company leases real estate for seven branch offices and two administrative offices under various lease agreements. All of our leases are classified as operating leases. The calculated amount of the right-of-use (“ROU”) assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s leases have maturities which range from 2024 to 2041, some of which include lessee options to extend the lease term. If the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The weighted average remaining life of the lease terms for these leases was 10.1 and 11.6 years as of December 31, 2023 and 2022, respectively. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company calculated a weighted average discount rate of 2.43% and 2.58% in determining the lease liability as of December 31, 2023 and 2022, respectively. For the years ended December 31, 2023 and 2022, total operating lease costs were $717 and $898, respectively, and were included in occupancy and other expense. Deferred rent liability was $68 at December 31, 2023 and $105 at December 31, 2022. The ROU asset, included in other assets, was $6,307 and $6,896 as of December 31, 2023 and 2022, respectively. The corresponding lease liability, included in accrued expenses and other liabilities was $6,307 and $6,896 as of December 31, 2023 and 2022, respectively. Future minimum payments for operating leases with initial terms of one year or more as of December 31, 2023 were as follows: Years ending December 31: 2024 $ 764 2025 739 2026 720 2027 676 2028 677 Thereafter 3,717 Total future minimum lease payments 7,293 Amounts representing interest (986) Present Value of Net Future Minimum Lease Payments $ 6,307 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Legal Matters The Company is involved in various legal proceedings which have arisen in the normal course of business. Management believes that resolution of these matters will not have a material effect on the Company’s financial condition or results of operations. Employment Agreements The Company has entered into employment agreements with certain officers. The agreements provide for base salaries and incentive compensation based on performance criteria outlined in the agreements. The agreements also provide for insurance, various other benefits and addresses other contractual issues, such as a change of control. Financial Instruments with Off-Balance-Sheet Risk In the normal course of business, the Company is a party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include standby letters of credit and commitments to extend credit, which include new loan commitments and undisbursed portions of construction loans and other lines of credit. These financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the statements of financial condition. The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer defaults and the value of any existing collateral become worthless. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments whose contract amounts represent off-balance sheet credit risk are as follows: Years ended December 31, 2023 2022 Commitments to extend credit summarized as follows: Future loan commitments $ 5,318 $ 3,815 Undisbursed construction loans 42,482 30,274 Undisbursed home equity lines of credit 10,727 9,561 Undisbursed commercial and other line of credit 69,258 77,719 Standby letters of credit 4,965 4,571 Loans sold with recourse 1,873 276 Total $ 134,623 $ 126,216 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Since these commitments could expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include residential and commercial property, deposits and securities. Activity in the Company’s ACL for unfunded commitments for the year ended December 31, 2023 is summarized in the tables below and included in accrued expenses and other liabilities. The Adoption of the CECL Standard row presents adjustments recorded on January 1, 2023 through retained earnings. Commercial Commercial Real Estate Residential and Industrial Indirect Consumer Totals Year ended December 31, 2023 Allowance for credit losses: Beginning balance $ — $ — $ — $ — $ — $ — Adoption of CECL standard 149 — 65 — 7 221 Provision for credit losses 23 — 7 — 6 36 Ending balance $ 172 $ — $ 72 $ — $ 13 $ 257 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivatives | |
Derivatives | 12. Derivatives Interest Rate Swaps The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate loan agreement to a fixed-rate loan agreement. Under these agreements, the Company simultaneously enters into a variable-rate loan and interest rate swap agreements with a customer. The Company then enters into a corresponding and offsetting swap agreement with a third party to hedge its exposure created by the customer agreements. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC Topic 815, Derivatives and Hedging, and are marked to market through earnings. The fair values of the swaps are recorded as both an asset and a liability, in other assets and other liabilities, respectively, in equal offsetting amounts for these transactions. The accrued interest receivable payable Summary information regarding these derivatives is presented below: December 31, 2023 2022 Notational amount $ 65,420 $ 26,541 Fair value $ 5,343 $ 3,578 Weighted average pay rates 5.06 % 3.69 % Weighted average receive rates 7.49 % 6.30 % Weighted average maturity (in years) 8.88 8.79 Number of Contracts 14 7 Not included in the table above as of December 31, 2023 are five contracted forward rate swaps with a notional value of $35,326 and a fair value of $935 with effective dates at various points in 2024. These forward swaps have a fixed weighted average pay rate of Not included in the table above as of December 31, 2022 are five contracted forward rate swaps with a notional value of $30,211 and a fair value of $970 with effective dates at various points in 2023 and 2024. These forward swaps have a fixed weighted average pay rate of |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Matters | |
Regulatory Matters | 13. Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the tables below) of total, common equity Tier 1 and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2023 and 2022, that the Bank met all capital adequacy requirements to which they are subject. The most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, common equity Tier 1, Tier I risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since then, which management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios were: To be Well Capitalized under For Capital Adequacy Prompt Corrective Action Actual Purposes Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Rhinebeck Bank Total capital (to risk-weighted assets) $ 144,675 12.70 % $ 91,154 8.00 % $ 113,942 10.00 % Tier 1 capital (to risk-weighted assets) 136,295 11.96 % 68,365 6.00 % 91,154 8.00 % Common equity tier one capital (to risk weighted assets) 136,295 11.96 % 51,274 4.50 % 74,062 6.50 % Tier 1 capital (to average assets) 136,295 10.10 % 53,990 4.00 % 67,488 5.00 % December 31, 2022 Rhinebeck Bank Total capital (to risk-weighted assets) $ 139,257 12.25 % $ 90,980 8.00 % $ 113,725 10.00 % Tier 1 capital (to risk-weighted assets) 131,314 11.55 % 68,235 6.00 % 90,980 8.00 % Common equity tier one capital (to risk weighted assets) 131,314 11.55 % 51,176 4.50 % 73,921 6.50 % Tier 1 capital (to average assets) 131,314 9.75 % 53,868 4.00 % 67,335 5.00 % |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value | |
Fair Value | 14. Fair Value As described in Note 1, the Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. 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 Cash Equivalents The carrying amount is a reasonable estimate of fair value. Available for Sale Securities Where quoted prices are available in an active market for identical securities, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include marketable equity securities and U.S. Treasury obligations. If quoted prices are not available, then fair values are estimated by using pricing models (i.e., matrix pricing) or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency bonds, mortgage-backed securities and municipal bonds. Level 3 securities include securities for which significant unobservable inputs are utilized. Available for sale securities are recorded at fair value on a recurring basis. FHLB Stock The carrying value of FHLB stock approximates fair value based on the redemption provisions of the FHLB. Loans Loans receivable are carried at cost. For variable rate loans which reprice frequently carrying values are a reasonable estimate of fair values, adjusted for credit losses inherent in the portfolios. The fair value of fixed rate loans is estimated by discounting the future cash flows using the year end rates, estimated using local market data, at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, adjusted for credit losses inherent in the portfolios. The Company does not record loans at fair value on a recurring basis. However, from time to time, nonrecurring fair value adjustments to collateral-dependent impaired loans are recorded to reflect partial write-downs based on the observable market price or current appraised value of collateral. Other Real Estate Owned Other real estate owned represents real estate acquired through foreclosure and is carried at the lower of cost or fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. These assets are included as Level 3 fair values, based upon the lowest level of input that is utilized in the fair value measurements. Accrued Interest The carrying amounts of accrued interest approximate fair value. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated future net servicing income. Mortgage servicing rights are carried at the lower of amortized cost or estimated fair value and are included in other assets on the consolidated statements of financial condition. Deposits Deposit liabilities are carried at cost. The fair value of NOW, savings and money market deposits is the amount payable on demand at the reporting date. The fair value of time certificates of deposit 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. Mortgagors’ escrow account The carrying amount is a reasonable estimate of fair value. Advances from the FHLB The fair value of the 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. Subordinated Debt Based on the floating rate characteristic of these instruments, the carrying value is considered to approximate fair value. Off-Balance-Sheet Instruments Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standings. Such amounts are not significant. Loan Level Interest Rate Swaps The fair value is based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves. The following tables detail the assets that are carried at fair value on a recurring basis as of the periods shown and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2023 Assets: U.S. Treasury securities $ 24,006 $ 24,006 $ — $ — U.S. government agency mortgage-backed securities-residential 128,580 — 128,580 — U.S. government agency securities 23,158 — 23,158 — Municipal securities 2,903 — 2,788 115 Corporate Bonds 12,640 — 12,640 — Other 698 — 698 — Total available for sale securities 191,985 24,006 167,864 115 Loan level interest rate swaps 6,278 — 6,278 — Total assets $ 198,263 $ 24,006 $ 174,142 $ 115 Liabilities: Loan level interest rate swaps $ 6,278 $ — $ 6,278 $ — Total liabilities $ 6,278 $ — $ 6,278 $ — December 31, 2022 Assets: U.S. Treasury securities $ 37,857 $ 37,857 $ — $ — U.S. government agency mortgage-backed securities – residential 144,534 — 144,534 — U.S. government agency securities 22,449 — 22,449 — Municipal securities 4,786 — 4,656 130 Corporate Bonds 13,217 — 13,217 — Other 816 — 816 — Total available for sale securities 223,659 37,857 185,672 130 Loan level interest rate swaps 4,548 — 4,548 — Total assets $ 228,207 $ 37,857 $ 190,220 $ 130 Liabilities: Loan level interest rate swaps $ 4,548 $ — $ 4,548 $ — Total liabilities $ 4,548 $ — $ 4,548 $ — The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2023 Individually analyzed loans, with specific reserves $ 758 $ — $ — $ 758 Other real estate owned 25 — — 25 Total $ 783 $ — $ — $ 783 December 31, 2022 Impaired loans, with specific reserves $ 319 $ — $ — $ 319 Total $ 319 $ — $ — $ 319 The Company may record adjustments to the carrying value of loans based on fair value measurements, either as specific reserves or as partial charge-offs of the uncollectible portions of these loans. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. The fair value of these individually analyzed loans is based on the fair value of the collateral. Loans with specific reserves that were determined to be collateral dependent are categorized as Level 3 due to ongoing real estate market conditions resulting in inactive market data, which in turn required the use of unobservable inputs and assumptions in fair value measurements. Individually analyzed loans evaluated under the discounted cash flow method are excluded from the table above. The discounted cash flow method as prescribed by ASC 310 is not a fair value measurement since the discount rate utilized is the loan’s effective interest rate which is not a market rate. There were no changes in valuation techniques used during the year ended December 31, 2023. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value is compared with independent data sources such as recent market data or industry-wide statistics. Loans that were individually analyzed using the fair value of the collateral had recorded investments of $973 and $428 with valuation allowances of $215 and $109 resulting in fair values of $758 and $319 at December 31, 2023 and 2022, respectively. The valuation allowance represents specific allocations to the allowance for credit losses. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Average) December 31, 2023 Individually analyzed loans, with specific reserves $ 758 Appraisal of collateral (1) Liquidation expenses (3) 0% to 8% Appraisal adjustments (2) 0% to 20% Other real estate owned 25 Appraisal of collateral (1) Liquidation expenses (3) 0% to 8% Appraisal adjustments (2) 0% to 20% December 31, 2022 Impaired loans $ 319 Appraisal of collateral (1) Liquidation expenses (3) 0% to 8% Appraisal adjustments (2) 0% to 20% (1) Fair value is generally through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraised value. (3) Estimated costs to sell. The Company discloses fair value information about financial instruments, whether or not recognized in the statements of financial condition, for which it is practicable to estimate that value. Certain financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The estimated fair value amounts for 2023 and 2022 have been measured as of their respective reporting dates and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than amounts reported at each year-end. The fair value estimates presented and discussed are based on pertinent information available to management as of the dates specified. The estimated fair value amounts are based on the exit price notion set forth by ASC 820. Although management is not aware of any factors that would significantly affect the estimated fair values, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since the balance sheet dates. Therefore, current estimates of fair value may differ significantly from the amounts presented herein. The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. As of the following dates, the carrying value and fair values of the Company’s financial instruments were: December 31, December 31, 2023 2022 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and cash equivalents (Level 1) $ 22,129 $ 22,129 $ 31,384 $ 31,384 Available for sale securities (Level 1) 24,006 24,006 37,857 37,857 Available for sale securities (Level 2) 167,864 167,864 185,672 185,672 Available for sale securities (Level 3) 115 115 130 130 Loan level interest rate swaps (Level 2) 6,278 6,278 4,548 4,548 FHLB stock (Level 2) 6,514 6,514 3,258 3,258 Loans, net (Level 3) 1,008,851 979,037 994,368 953,432 Accrued interest receivable (Level 2) 4,616 4,616 4,255 4,255 Mortgage servicing rights (Level 3) 1,977 4,720 2,409 5,211 Financial Liabilities: Deposits (Level 2) 1,030,503 948,140 1,129,933 1,001,455 Mortgagors' escrow accounts (Level 2) 9,274 9,274 9,732 9,723 FHLB advances (Level 2) 128,064 127,592 57,723 57,739 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 Loan level interest rate swaps (Level 2) 6,278 6,278 4,548 4,548 Accrued interest payable (Level 2) 1,488 1,488 774 774 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | 15. Accumulated Other Comprehensive Loss The activity in accumulated other comprehensive loss for the years ended December 31, 2023 and 2022, is as follows: Accumulated Other Comprehensive Loss (1) Unrealized (losses) gains on Defined Benefit available for sale Pension Plan securities Total Balance at December 31, 2022 $ (3,998) $ (28,191) $ (32,189) Other comprehensive gain before reclassifications 282 2,114 2,396 Amounts reclassified from accumulated other comprehensive loss 295 — 295 Period change 577 2,114 2,691 Balance at December 31, 2023 $ (3,421) $ (26,077) $ (29,498) Balance at December 31, 2021 $ (3,902) $ (2,733) $ (6,635) Other comprehensive loss before reclassifications (307) (25,592) (25,899) Amounts reclassified from accumulated other comprehensive loss 211 134 345 Period change (96) (25,458) (25,554) Balance at December 31, 2022 $ (3,998) $ (28,191) $ (32,189) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0% . Details about accumulated other comprehensive loss components are as follows: Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended Affected Line Item in the Consolidated December 31, Statement of Income 2023 2022 Securities available for sale (1) Net securities losses reclassified into earnings $ — $ (170) Net realized loss on sales and calls of securities Related income tax expense — 36 Provision for income taxes Net effect on accumulated other comprehensive loss for the period — (134) Defined benefit pension plan (2) Amortization of net loss and prior service costs (374) (267) Other non-interest expense Related income tax expense 79 56 Provision for income taxes Net effect on accumulated other comprehensive gain or loss for the period (295) (211) Total reclassifications for the period $ (295) $ (345) (1) For additional details related to unrealized gains and losses on securities and related amounts reclassified from accumulated other comprehensive loss see Note 2, “Available for Sale Securities. ” (2) Included in the computation of net periodic pension cost. See Note 9, “Employee Benefits” for additional details . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share | |
Earnings Per Share | 16. Earnings Per Share Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents (such as options) were issued during the period. For the year ended December 31, 2023, there were 15,000 options outstanding at an average weighted price of $7.90 per share that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive. There were no anti-dilutive options for year ended December 31, 2022. Unearned ESOP shares are not deemed outstanding for earnings per share calculations. Year Ended December 31, 2023 2022 Net income applicable to common stock $ 4,395 $ 6,997 Average number of common shares outstanding 11,127,247 11,199,387 Less: Average unearned ESOP shares 338,238 360,052 Average number of common shares outstanding used to calculate basic earnings per common share 10,789,009 10,839,335 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 25,652 49,650 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 40,891 115,612 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 10,855,552 11,004,597 Earnings per Common share: Basic $ 0.41 $ 0.65 Diluted $ 0.40 $ 0.64 |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Business and Significant Accounting Policies | |
Basis of Financial Statements Presentation | Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with GAAP and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the evaluation of goodwill for impairment and the valuation of deferred tax assets. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the New York State counties of Dutchess, Ulster, Orange, and Albany. The Company does not have any significant concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, the ability of its customers to repay their loans is substantially dependent on the economic conditions in the market areas in which the Company operates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and due from banks and federal funds sold are recognized as cash equivalents in the consolidated statements of financial condition and cash flows. Federal funds sold generally mature in one day. The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. |
Investment in Debt Securities | Investment in Debt Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and are recorded at amortized cost. “Trading” securities, if any, are carried at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as held to maturity or trading are classified as “available for sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive loss, net of taxes. Purchase discounts are recognized in interest income using the interest method over the contractual terms of the security. Purchase premiums are recognized in interest income using the interest method to the instrument’s earliest call date. Realized gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates securities in an unrealized loss position for impairment related to credit losses on at least a quarterly basis. Securities in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. |
Investment in FHLB Stock | Investment in FHLB Stock The Company is required to maintain an investment in FHLB capital stock, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. |
Loans Receivable | Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for unearned income, including any allowance for credit losses and any unamortized deferred fees or costs. Interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized using the interest method over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Consumer, automobile and 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 not recognized until the loan returns to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Credit Losses | Allowance for Credit Losses Effective January 1, 2023, the Company has modified its accounting policy for the ACL on loans as described below. The ACL on loans is management’s estimate of expected credit losses over the expected life of the loans at the reporting date. The ACL on loans is increased through a provision for credit losses recognized in the Consolidated Statements of Income and by recoveries of amounts previously charged off. The ACL on loans is reduced by charge-offs on loans. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on individually analyzed loans are generally recognized when the collateral or future cash flows are deemed to be insufficient to support the carrying value of the loan. The level of the ACL on loans is based on management’s ongoing review of relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable economic forecasts. Historical credit loss experience provides the basis for the calculation of loss given default and the estimation of expected credit losses. As discussed further below, adjustments to historical information are made for differences in specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency levels, or terms, as well as for changes in environmental conditions, that may not be reflected in historical loss rates. Management estimates the ACL on loans using both quantitative and qualitative factors. The methodology for evaluating quantitative factors consists of two basic components. The first component involves pooling loans into portfolio segments for loans that share similar risk characteristics. Pooled loan portfolio segments include commercial construction, commercial real estate, multi-family, commercial and industrial, residential real estate (including homeowner construction), home equity, indirect automobile and other consumer loans. The second component involves individually analyzed loans that do not share similar risk characteristics with loans that are pooled into portfolio segments or are determined for foreclosure. Loans not included in the pooled loans and that have generally aged into a non-accrual status are individually analyzed loans for which the ACL is measured using a discounted cash flow (“DCF”) methodology based upon the loan’s contractual effective interest rate, or, if the loan is collateral-dependent, at the fair value of the collateral. Factors management considers when measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due. For collateral-dependent loans for which repayment is to be provided substantially through the sale of the collateral, management adjusts the fair value for estimated costs to sell. Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of circumstances associated with the collateral. For pooled loans, the Company utilizes a DCF methodology to estimate credit losses over the expected life of the loans. The life of the loan excludes expected extensions, renewals and modifications. Management utilizes the national unemployment rate as an econometric factor with a one-year forecast period and one-year straight-line reversion period to the historical mean of its macroeconomic assumption in order to estimate the probability of default for each loan portfolio segment. The DCF methodology combines the probability of default, the loss given default, maturity date and prepayment speeds to estimate a reserve for each loan. The sum of all the loan level reserves is aggregated for each portfolio segment and a loss rate factor is derived. Because the methodology is based upon historical experience and trends, current economic data, reasonable and supportable economic forecasts, as well as management’s judgment, factors may arise that result in different estimations. Deteriorating conditions or assumptions could lead to further increases in the ACL on loans. In addition, various regulatory agencies periodically review the ACL on loans. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. The ACL on loans is an estimate, and ultimate losses may vary from management’s estimate. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial non-residential real estate Multi-family Construction and land development . Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Residential real estate . All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Generally we will originate loans with a loan-to-value ratio of up to 80% of the appraised value. Loans with loan-to-value ratios greater than 80% require the purchase of private mortgage insurance. Commercial . Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Indirect Automobile. All loans in this segment are secured by motor vehicles, which can depreciate rapidly. Loan collectability is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates, will have an effect on the credit quality of this segment. Home Equity Loans and Lines of Credit Consumer . Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. The Company made an accounting policy election to exclude accrued interest from the amortized cost basis of loans. In addition, the Company elected not to measure an allowance for credit losses for accrued interest receivable, because a timely write-off policy exists. The policy generally requires loans to be placed on non-accrual when principal or interest is 90 days or more past due unless the loan is well-secured and in the process of collection. When a loan is placed on non-accrual, accrued interest is reversed against interest income. Effective January 1, 2023, the Company has modified its accounting policy for the ACL on unfunded commitments as described below. The ACL on unfunded commitments is management’s estimate of expected credit losses over the expected contractual term (or life) in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. For each portfolio, estimated loss rates and funding factors are applied to the corresponding balance of unfunded commitments. For each portfolio, the estimated loss rates applied to unfunded commitments are the same quantitative and qualitative loss rates applied to the corresponding on-balance sheet amounts in determining the ACL on loans. The estimated funding factor applied to unfunded commitments represents the likelihood that the funding will occur and is based upon the Company’s average historical utilization rate for each portfolio. As a result of adopting ASU 2016-13, the Company recognized an increase in the ACL on unfunded commitments of $221 on January 1, 2023. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are recognized as assets and liabilities on the consolidated statements of financial condition and measured at fair value. Loan Level Interest Rate Swaps |
Loans Held for Sale | Loans Held for Sale Loans held for sale are those mortgage loans the Company has the intent to sell in the foreseeable future and are carried at the lower of aggregate cost or market value, with valuation changes recorded in non-interest income. Gains and losses on sales of loans are recognized at the trade dates and are determined by the difference between the sales proceeds and the carrying value of the loans. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. |
Servicing | Servicing Servicing assets are recognized as separate assets developed through the sale of residential mortgages. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain or loss on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to and over the period of the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance and charged to non-interest income, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. |
Revenue Recognition | Revenue Recognition The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of operations are as follows: ● Fees for services to customers include service charges on deposits which are included in non-interest income in the consolidated statements of income and consist of transaction-based fees: stop payment fees, Automated Clearing House (ACH) fees, account maintenance fees, wire fees, official check fees and overdraft services fees for various retail and business checking customers. These fees are earned on the day of the transaction or within the month of the service. Service charges on deposits are withdrawn directly from the customer’s account balance. ATM and debit card fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Sales of checks to depositors earn fees as a contractual discount to the retail price of the sale from a third-party provider. These fees earned are remitted by the third-party to the Company quarterly. ● The Company earns interchange fee income from credit/debit cardholder transactions conducted through MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized monthly, concurrently with the transaction processing services provided to the cardholder within the month. ● The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed; at such time, the OREO asset is derecognized and the gain or loss on the sale is recorded. Rental income received from leased OREO property is recognized during the month it is earned. ● Retail brokerage and advisory fee income is accrued monthly to properly record the revenues in the month they are earned. Advisory fees are collected in advance on a quarterly basis. These advisory fees are recorded in the first month of the quarter for which the service is being performed. Investments into mutual funds and annuities generate fees that are recorded as revenue at the time of the initial sale. In subsequent years the mutual funds and variable annuities generate recurring fees (referred to as 12B-1 fees) that are paid in advance on the anniversary of the original transaction. Fees that are transaction based are recognized at the point in time that the transaction is executed (i.e., trade date). Life insurance products are sold on a commission basis that generates a fee that is recorded as revenue within the month of the approved transaction. Other income includes rental income, mortgage origination and service fees and late fees on serviced mortgages. All items are recorded as revenue within the month that the service is provided. |
Other Real Estate Owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in operations. Costs relating to the development and improvement of the property are capitalized, subject to the resulting limit of fair value of the collateral. Gains or losses are included in operations upon disposal. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms. Gains and losses on dispositions are recognized upon realization. Maintenance and repairs are expensed as incurred and improvements are capitalized. Rent expense is charged to operations over the expected lease term using the straight-line method. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company purchased bank owned life insurance (“BOLI”) on a chosen group of employees and directors. The Company is the owner and sole beneficiary of the policies. Earnings from BOLI are recognized as part of non-interest income. BOLI is carried at cash surrender value. Death benefit proceeds received in excess of the policies cash surrender values are recognized in income upon receipt. The Company does not intend to surrender these policies and, accordingly, no deferred taxes have been provided. |
Goodwill and Amortizable Intangible Assets | Goodwill and Amortizable Intangible Assets The excess of the purchase price of an acquisition over the net fair value of the identifiable tangible and intangible assets and liabilities is assigned to goodwill. Goodwill is not amortizable, but is subject to at least an annual assessment, or more frequently in the presence of certain circumstances, for impairment. Other intangible assets are stated at cost, less accumulated amortization and consist of purchased customer accounts and core deposit intangibles. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships. The value of these assets are amortized over their estimated lives of 13 years. In the presence of certain circumstances, intangible assets may be assessed for impairment as well. Impairment exists when the carrying value exceeds its fair value. In such circumstances a charge for the relevant impairment is recognized and the net book value is reduced to the appropriate value. |
Employee Benefit Plans | Employee Benefit Plans The Bank maintains the Rhinebeck Bank 401(k) Plan (the “401(k) Plan”) for substantially all of its employees, a defined benefit pension plan (frozen as of June 30, 2012), as well as Supplemental Executive Retirement Plans (the “SERPs”), all of which are tax qualified under the Internal Revenue Code. Employee 401(k) plan expense is the amount of matching contributions. Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. SERP expense is the net of interest cost and service cost, which allocates the benefits over years of service. We account for benefits under the defined benefit plan in accordance with Accounting Standards Codification (“ASC”) Topic 715 “Pension and Other Postretirement Benefits.” The guidance requires an employer to: (1) recognize in its statement of financial condition the over funded or underfunded status of a defined benefit postretirement plan measured as the difference between the fair value of plan assets and the benefit obligation; (2) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (3) recognize as a component of other comprehensive income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period. The Bank created an employee stock ownership plan (the “ESOP”) for the benefit of employees who meet certain eligibility requirements. Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated statements of financial condition. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The Company maintains an equity incentive plan to provide for issuance or granting of shares of common stock for stock options or restricted stock. The Company has recorded stock-based employee compensation cost using the fair value method as allowed under generally accepted accounting principles. Management estimated the fair values of all option grants using the Black-Scholes option-pricing model. Management estimated the expected life of the options using the simplified method as allowed under generally accepted accounting principles. The risk-free rate was determined utilizing the treasury yield for the expected life of the option contract. |
Income Taxes | Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized. When tax returns are filed, it is highly expected that most positions taken would be sustained upon examination by the taxing authorities, while others may be subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company has no liabilities for uncertain tax positions at December 31, 2023 and 2022. Interest and penalties associated with unrecognized tax benefits, if any, would be classified in other non-interest expense in the consolidated statements of income. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding under the treasury stock method if all potentially dilutive common shares (such as stock options) issued became vested during the period. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for either the basic or diluted earnings per share calculations. See Note 16 for the calculation of EPS. |
Comprehensive Income | Comprehensive Income GAAP requires that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and the net actuarial gain (loss) of the defined benefit pension plan, are reported as a separate component of the stockholders’ equity section of the consolidated statements of financial condition, such items, along with net income, are components of comprehensive income. |
Fair Value | Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in certain instances, there are no quoted market prices for certain assets or liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. Fair value measurements focus on exit prices in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The Company’s fair value measurements are classified into a fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The three categories within the hierarchy are as follows: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active; and model-based valuation techniques for which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Reclassifications | Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. |
Emerging Growth Company Status | Emerging Growth Company Status As an emerging growth company, the Company may delay adoption of new or revised financial accounting standards until such date that the standards are required to be adopted by non-public companies. The Company is taking advantage of the benefits of the extended transition periods allowed under the Jumpstart Our Business Startups Act. Accordingly, the Company’s financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. The effective dates of the following recent accounting standards reflect those that relate to non-public companies. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards in 2023 Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13 “ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the prior incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL” or the “CECL Standard”). The measurement of expected credit losses under the CECL Standard is applicable to financial assets measured at amortized cost, including portfolio loans and investment securities classified as held-to-maturity. It also applies to off-balance sheet credit exposures including loan commitments, standby letters of credit, financial guarantees and other similar instruments that are not unconditionally cancellable. In addition, the CECL Standard changes the accounting for investment securities classified as available for sale, including a requirement that estimated credit losses on available for sale securities be presented as an allowance rather than as a direct write-down of the carrying balance of securities which we do not intend to sell, or believe that it is more likely than not, that we will be required to sell. The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning on or after January 1, 2023 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2023: Change in Consolidated Change to Retained Earnings Statement of Condition Tax Effect from Adoption of CECL ACL (loans) $ 580 $ 122 $ 458 ACL (unfunded credit commitments) 221 46 175 Total impact of CECL adoption $ 801 $ 168 $ 633 Effective January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the CECL model introduced by ASU 2016-13. ASU 2022-02 also requires that public business entities disclose current-period gross charge-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”. The Company adopted ASU 2022-02 on January 1, 2023. The adoption of ASU 2022-02 did not have a material effect on the Company’s consolidated financial statements. In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” , Recent Accounting Standards In October 2023, the FASB issued ASU 2023-06, which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. In annual periods, this requires disclosure of an entity’s accounting policy related to where in the statement of cash flows the entity presents cash flows associated with derivative instruments and the related gains and losses. This also requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods. The effective dates of ASU 2023-06 will depend, in part, on whether an entity is already subject to the SEC’s current disclosure requirements. For such entities and those that must “file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer,” the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years after the date of such removal. The Company is evaluating the impact of this ASU but does not expect it to have a material impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis. Under ASU 2023-07, public entities must disclose significant expense categories and amounts for each reportable segment, where significant expense categories are defined as those that are regularly reported to an entity’s chief operating decision-maker and included in a segment’s reported measures of profit or loss. Additionally, public entities must disclose the amount of other segment items and a description of its composition. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023. As the Company has only one reportable segment, ASU 2023-07 is not expected to have a significant impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures.” |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update 2016-13 | |
Nature Of Business And Significant Accounting Policies [Line Items] | |
Schedule of adoption of CECL adjustments | The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2023: Change in Consolidated Change to Retained Earnings Statement of Condition Tax Effect from Adoption of CECL ACL (loans) $ 580 $ 122 $ 458 ACL (unfunded credit commitments) 221 46 175 Total impact of CECL adoption $ 801 $ 168 $ 633 |
Available for Sale Securities (
Available for Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Available for Sale Securities | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities | The amortized cost, gross unrealized gains and losses and fair values of available for sale securities are as follows: December 31, 2023 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 25,072 $ — $ (1,066) $ 24,006 U.S. government agency mortgage-backed securities–residential 156,523 — (27,943) 128,580 U.S. government agency securities 24,774 — (1,616) 23,158 Municipal securities (1) 3,163 — (260) 2,903 Corporate bonds 14,700 — (2,060) 12,640 Other 763 — (65) 698 Total $ 224,995 $ — $ (33,010) $ 191,985 December 31, 2022 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value U.S. Treasury securities $ 40,172 $ — $ (2,315) $ 37,857 U.S. government agency mortgage-backed securities–residential 173,926 — (29,392) 144,534 U.S. government agency securities 24,785 — (2,336) 22,449 Municipal securities (1) 5,117 — (331) 4,786 Corporate bonds 14,700 — (1,483) 13,217 Other 644 172 — 816 Total $ 259,344 $ 172 $ (35,857) $ 223,659 (1) |
Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position | The following tables present the fair value and unrealized losses of the Company’s available for sale securities with gross unrealized losses aggregated by the length of time the individual securities have been in a continuous unrealized loss position: December 31, 2023 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ — $ — $ 24,006 $ (1,066) $ 24,006 $ (1,066) U.S. government agency mortgage-backed securities-residential — — 128,580 (27,943) 128,580 (27,943) U.S. government agency securities — — 23,158 (1,616) 23,158 (1,616) Municipal securities 512 (18) 2,276 (242) 2,788 (260) Corporate bonds — — 12,640 (2,060) 12,640 (2,060) Other 672 (65) — — 672 (65) Total $ 1,184 $ (83) $ 190,660 $ (32,927) $ 191,844 $ (33,010) December 31, 2022 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities $ — $ — $ 37,857 $ (2,315) $ 37,857 $ (2,315) U.S. government agency mortgage-backed securities-residential 23,384 (2,711) 121,151 (26,681) 144,535 (29,392) U.S. government agency securities 9,160 (869) 13,289 (1,467) 22,449 (2,336) Municipal securities 1,529 (4) 3,127 (327) 4,656 (331) Corporate bonds 6,873 (627) 5,844 (856) 12,717 (1,483) Total $ 40,946 $ (4,211) $ 181,268 $ (31,646) $ 222,214 $ (35,857) |
Schedule of maturities of debt securities | The amortized cost and fair value of available for sale debt securities at December 31, 2023 and 2022, by contractual maturities, are presented below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be called or repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary: December 31, 2023 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 15,449 $ 15,170 $ 16,923 $ 16,512 After 1 but within 5 years 32,860 30,569 46,162 42,225 After 5 but within 10 years 19,400 16,968 21,689 19,572 After 10 years — — — — Total Maturities 67,709 62,707 84,774 78,309 Mortgage-backed securities 156,523 128,580 173,926 144,534 Other 763 698 644 816 Total $ 224,995 $ 191,985 $ 259,344 $ 223,659 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Allowance for Credit Losses | |
Schedule of summary loan portfolio | A summary of the Company’s loan portfolio is as follows: At December 31, 2023 2022 Commercial real estate loans: Construction $ 20,208 $ 20,329 Non-residential 324,493 282,422 Multi-family 83,376 67,777 Residential real estate loans 77,259 53,720 Commercial and industrial loans (1) 88,927 87,982 Consumer loans: Indirect automobile 394,245 457,223 Home equity 11,990 11,507 Other consumer 8,095 9,479 Total gross loans 1,008,593 990,439 Dealer reserves (2) 8,382 11,872 Allowance for credit losses (8,124) (7,943) Total net loans $ 1,008,851 $ 994,368 (1) Includes $272 and $537 in SBA PPP loans at December 31, 2023 and 2022, respectively. (2) At December 31, 2022, dealer reserves totaled $11,109 and other deferred origination fees totaled $763 . |
Schedule of loans by risk rating and portfolio segment | The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category, as well as gross write-offs for the year ended December 31, 2023, and by fiscal year of origination as of December 31, 2023. Revolving Loans by Origination Year Loans 2023 2022 2021 2020 2019 Prior Amortized Cost Total Commercial construction Pass $ - $ 8,227 $ - $ - $ - $ - $ - $ 8,227 Watch 9,328 2,653 - - - - - 11,981 Total commercial construction 9,328 10,880 - - - - - 20,208 Commercial non-residential Pass $ 34,508 $ 43,534 $ 26,600 $ 16,673 $ 39,943 $ 44,412 $ - $ 205,670 Watch 16,575 19,235 14,854 12,747 7,573 38,004 - 108,988 Special mention - - - - 5,884 963 - 6,847 Substandard - - - - 465 2,523 - 2,988 Total commercial non-residential 51,083 62,769 41,454 29,420 53,865 85,902 - 324,493 Multifamily Pass $ 807 $ 18,765 $ 30,374 $ 2,100 $ 1,540 $ 4,348 $ - $ 57,934 Watch 1,000 6,754 6,925 - 1,265 9,498 - 25,442 Total multifamily 1,807 25,519 37,299 2,100 2,805 13,846 - 83,376 Residential Performing $ 28,670 $ 25,260 $ 2,150 $ 2,732 $ 2,626 $ 14,197 $ - $ 75,635 Non-performing - 257 - - - 1,367 - 1,624 Total residential 28,670 25,517 2,150 2,732 2,626 15,564 - 77,259 Commercial and industrial Pass $ 12,637 $ 26,070 $ 10,804 $ 1,474 $ 962 $ 1,254 $ 11,662 $ 64,863 Watch 2,082 3,227 321 620 482 1,603 14,204 22,539 Special mention 224 - 301 - 33 - - 558 Substandard - - - - 83 841 43 967 Total commercial and industrial 14,943 29,297 11,426 2,094 1,560 3,698 25,909 88,927 Current-period gross write-offs - - 710 - - 126 - 836 Indirect automobile Performing $ 101,230 $ 160,439 $ 72,941 $ 34,196 $ 19,035 $ 5,773 $ - $ 393,614 Non-performing 31 259 196 69 63 13 - 631 Total indirect automobile 101,261 160,698 73,137 34,265 19,098 5,786 - 394,245 Current-period gross write-offs 198 1,492 1,034 418 309 126 - 3,577 Home equity Performing $ - $ - $ - $ - $ 34 $ 4,064 $ 7,793 $ 11,891 Non-performing - - - - - 99 - 99 Total home equity - - - - 34 4,163 7,793 11,990 Other consumer Performing $ 2,928 $ 3,477 $ 856 $ 411 $ 138 $ 22 $ 238 $ 8,070 Non-performing - - - 24 - - 1 25 Total other consumer 2,928 3,477 856 435 138 22 239 8,095 Current-period gross write-offs 8 30 10 11 - 3 - 62 Total Loans Pass/performing $ 180,780 $ 285,772 $ 143,725 $ 57,586 $ 64,278 $ 74,070 $ 19,693 $ 825,904 Watch 28,985 31,869 22,100 13,367 9,320 49,105 14,204 168,950 Special mention 224 - 301 0 5,917 963 - 7,405 Substandard - - - - 548 3,364 43 3,955 Non-performing 31 516 196 93 63 1,479 1 2,379 Total Loans $ 210,020 $ 318,157 $ 166,322 $ 71,046 $ 80,126 $ 128,981 $ 33,941 $ 1,008,593 Total Current-period gross write-offs $ 206 $ 1,522 $ 1,754 $ 429 $ 309 $ 255 $ - $ 4,475 The following table presents the classes of the loan portfolio summarized by the pass category and the criticized categories of special mention and substandard within the internal risk system for the year ended December 31, 2022. December 31, 2022 Pass Special Mention Substandard Total Commercial real estate: Construction $ 20,329 $ — $ — $ 20,329 Non-residential 271,491 7,904 3,027 282,422 Multifamily 67,777 — — 67,777 Residential real estate 52,265 — 1,455 53,720 Commercial and industrial 83,680 3,825 477 87,982 Consumer: Indirect automobile 456,112 — 1,111 457,223 Home equity 11,290 — 217 11,507 Other consumer 9,428 — 51 9,479 Total $ 972,372 $ 11,729 $ 6,338 $ 990,439 |
Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans | The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans: December 31, 2023 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 20,208 $ — $ — $ — $ 20,208 $ — Non-residential 319,467 1,276 2,129 1,621 324,493 1,621 Multifamily 83,376 — — — 83,376 — Residential real estate 75,998 888 37 336 77,259 1,624 Commercial and industrial 88,646 17 83 181 88,927 181 Consumer: Indirect automobile 382,042 10,155 1,478 570 394,245 631 Home equity 11,843 — 48 99 11,990 99 Other consumer 7,844 202 24 25 8,095 25 Total $ 989,424 $ 12,538 $ 3,799 $ 2,832 $ 1,008,593 $ 4,181 December 31, 2022 Greater Than 30-59 Days 60-89 Days 90 Days Past Total Loans Current Past Due Past Due Due Receivable Non-accrual Commercial real estate: Construction $ 20,329 $ — $ — $ — $ 20,329 $ — Non-residential 275,860 4,701 479 1,382 282,422 1,382 Multifamily 67,413 364 — — 67,777 — Residential real estate 51,476 1,417 246 581 53,720 1,794 Commercial and industrial 87,742 57 — 183 87,982 183 Consumer: Indirect automobile 444,418 10,714 1,389 702 457,223 797 Home equity 11,279 51 58 119 11,507 217 Other consumer 9,208 149 71 51 9,479 51 Total $ 967,725 $ 17,453 $ 2,243 $ 3,018 $ 990,439 $ 4,424 |
Schedule of amortized cost basis of nonaccrual loans | The following table presents the Company’s amortized cost basis of non-accrual loans for which there is no related ACL at December 31, 2023: December 31, 2023 Commercial real estate: Non-residential $ 1,152 Residential real estate 1,624 Commercial and industrial 150 Consumer: Indirect automobile 160 Home equity 99 Other consumer 24 Total $ 3,209 |
Schedule of information to impaired loans by loan portfolio class | Impaired loans disclosures presented below as of December 31, 2022 represent requirements prior to the adoption of CECL on January 1, 2023. The following table summarizes information regarding impaired loans by loan portfolio class: December 31, 2022 Recorded Unpaid Principal Related Average Recorded Investment Balance Allowance Investment With no related allowance recorded: Commercial real estate: Non-residential $ 1,382 $ 2,472 $ — $ 1,967 Residential real estate 1,794 2,445 — 1,890 Commercial and industrial 183 242 — 309 Consumer: Indirect automobile 371 439 — 336 Home equity 217 219 — 146 Other consumer 49 53 — 38 Total $ 3,996 $ 5,870 $ — $ 4,686 With an allowance recorded: Commercial real estate: Commercial and industrial $ — $ — $ — $ 114 Consumer: Indirect automobile 426 435 107 293 Other consumer 2 2 2 11 Total $ 428 $ 437 $ 109 $ 418 Total: Commercial real estate: Non-residential $ 1,382 $ 2,472 $ — $ 1,967 Residential real estate 1,794 2,445 — 1,890 Commercial and industrial 183 242 — 423 Consumer: Indirect automobile 797 874 107 629 Home equity 217 219 — 146 Other consumer 51 55 2 49 Total $ 4,424 $ 6,307 $ 109 $ 5,104 |
Schedule of loan balances by segment | Activity in the Company’s ACL for loans for the year ended December 31, 2023 is summarized in the table below. The Adoption of the CECL Standard row presents adjustments recorded on January 1, 2023 through retained earnings. Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals Year ended December 31, 2023 Allowance for credit losses: Beginning balance $ 3,031 $ 103 $ 881 $ 3,868 $ 60 $ 7,943 Adoption of CECL standard (860) 54 (383) 1,710 59 580 Provision for (reversal of) credit losses 545 137 833 165 (14) 1,666 Loans charged-off — — (836) (3,577) (62) (4,475) Recoveries — 52 111 2,182 65 2,410 Ending balance $ 2,716 $ 346 $ 606 $ 4,348 $ 108 $ 8,124 Ending balance: Loans individually analyzed $ 16 $ — $ 32 $ 166 $ 2 $ 216 Loans collectively analyzed $ 2,700 $ 346 $ 574 $ 4,182 $ 106 $ 7,908 Loan receivables: Ending balance $ 428,077 $ 77,259 $ 88,927 $ 394,245 $ 20,085 $ 1,008,593 Ending balance: Loans individually analyzed $ 1,621 $ 1,624 $ 181 $ 631 $ 222 $ 4,279 Loans collectively analyzed $ 426,456 $ 75,635 $ 88,746 $ 393,614 $ 19,863 $ 1,004,314 Activity in the Company’s allowance for loan losses for the year ended December 31, 2022 is summarized in the table below. Commercial Residential Commercial Real Estate Real Estate and Industrial Indirect Consumer Totals December 31, 2022 Allowance for loan losses: Beginning balance $ 3,317 $ 54 $ 725 $ 3,416 $ 47 $ 7,559 (Credit to) provision for loan losses (286) (63) 493 1,205 65 1,414 Loans charged-off — (44) (456) (2,660) (107) (3,267) Recoveries — 156 119 1,907 55 2,237 Ending balance $ 3,031 $ 103 $ 881 $ 3,868 $ 60 $ 7,943 Ending balance: Loans deemed impaired $ — $ — $ — $ 107 $ 2 $ 109 Loans not deemed impaired $ 3,031 $ 103 $ 881 $ 3,761 $ 58 $ 7,834 Loan receivables: Ending balance $ 370,528 $ 53,720 $ 87,982 $ 457,223 $ 20,986 $ 990,439 Ending balance: Loans deemed impaired $ 1,382 $ 1,794 $ 183 $ 797 $ 268 $ 4,424 Loans not deemed impaired $ 369,146 $ 51,926 $ 87,799 $ 456,426 $ 20,718 $ 986,015 |
Summary of provision for credit losses | The following table summarizes the provision for credit losses for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Provision for credit losses - loans $ 1,666 $ 1,414 Provision for credit losses - unfunded commitments 36 — Provision for credit losses $ 1,702 $ 1,414 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying value of goodwill | The changes in the carrying value of goodwill are as follows: Year Ended December 31, 2023 2022 Beginning balance $ 2,235 $ 2,235 Activity during the period — — Ending balance $ 2,235 $ 2,235 |
Schedule of changes in the carrying value of customer list and core deposit intangibles | The changes in the carrying value of the customer list and core deposit intangibles are as follows: Years Ended December 31, 2023 2022 Beginning balance $ 334 $ 433 Acquisition activity — — Amortization (88) (99) Ending balance $ 246 $ 334 Accumulated amortization and impairment $ 1,031 $ 943 |
Schedule of future amortization expense for amortizable intangible assets | As of December 31, 2023, the future amortization expense for amortizable intangible assets for the respective years is as follows: 2024 $ 79 2025 60 2026 29 2027 21 2028 16 Thereafter 41 Total $ 246 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Schedule of premises and equipment | Premises and equipment are summarized as follows: December 31, 2023 2022 Land $ 3,356 $ 3,732 Buildings and improvements 27,774 27,617 Furniture, fixtures and equipment 14,889 14,652 Construction in process 461 230 Total 46,480 46,231 Less accumulated depreciation (28,913) (27,509) Net $ 17,567 $ 18,722 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits | |
Schedule of deposits | Deposits balances are summarized as follows: December 31, December 31, 2023 2022 Non-interest bearing demand deposits $ 249,793 $ 283,563 Interest bearing accounts: NOW 125,628 156,285 Savings 146,172 176,916 Money market 190,864 296,787 Time certificates of deposit 318,046 216,382 Total interest bearing accounts 780,710 846,370 Total deposits $ 1,030,503 $ 1,129,933 |
Schedule of contractual maturities of time certificates of deposit | Contractual maturities of time certificates of deposit at December 31, 2023 are summarized below: December 31, 2023 Within 1 year $ 291,212 1 – 2 years 23,124 2 – 3 years 1,735 3 – 4 years 450 4 – 5 years 1,525 Total $ 318,046 |
Debt and FHLB Stock (Tables)
Debt and FHLB Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt and FHLB Stock | |
Schedule of outstanding principal amounts and related terms of FHLBNY borrowings | The outstanding principal amounts and the related terms and rates at December 31, 2023 were as follows: Term Principal Maturity Rate Due in one year Long term Fixed short-term 10,000 January 8, 2024 5.64 % 10,000 — Fixed short-term 10,000 February 6, 2024 5.68 % 10,000 — Fixed medium-term 20,000 March 21, 2024 5.18 % 20,000 — Fixed short-term 10,000 April 23, 2024 5.70 % 10,000 — Fixed short-term 10,000 May 17, 2024 5.59 % 10,000 — Fixed short-term 10,000 June 17, 2024 5.60 % 10,000 — Fixed short-term 10,000 July 17, 2024 5.59 % 10,000 — Fixed medium-term 20,000 March 20, 2025 4.47 % — 20,000 Fixed medium-term 722 October 31, 2025 4.87 % — 722 Fixed medium-term 5,000 November 3, 2025 4.87 % — 5,000 Fixed medium-term 728 December 5, 2025 4.34 % — 728 Fixed medium-term 1,233 September 21, 2026 5.20 % — 1,233 Fixed medium-term 381 November 9, 2026 5.04 % — 381 Fixed medium-term 20,000 May 2, 2028 3.88 % — 20,000 Total $ 128,064 Weighted Average Rate 5.06 % $ 80,000 $ 48,064 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of components of the provision for income taxes | The components of the provision for income taxes are as follows: Years Ended December 31, 2023 2022 Current expense: Federal $ 1,314 $ 1,621 State 257 264 Total current expense 1,571 1,885 Deferred expense: Federal (352) 14 State (148) 4 Change in valuation allowance 148 (4) Total deferred expense (352) 14 Total provision for income taxes $ 1,219 $ 1,899 |
Schedule of differences between the provision for income taxes and statutory federal income tax rate | The following is a reconciliation between the expected federal statutory income tax rate of 21% (2023 and 2022) and the Company’s actual income tax expense and rate: Years ended December 31, 2023 2022 Provision at statutory rate $ 1,179 21.00 % $ 1,868 21.00 % Tax exempt income (192) (3.42) % (145) (1.63) % State income taxes, net of federal income tax benefit 213 3.79 % 209 2.35 % Other, net 19 0.34 % (33) (0.37) % Effective income tax and rate $ 1,219 21.71 % $ 1,899 21.35 % |
Schedule of tax effects of temporary differences of the deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 are presented below: December 31, 2023 2022 Deferred tax assets: Allowance for credit losses $ 2,263 $ 2,145 Deferred expenses 18 28 Deferred compensation 1,652 1,493 Unrecognized pension liability 910 1,063 Postretirement liability 1,002 975 Unrealized loss on securities 6,932 7,494 Other 658 576 Gross deferred tax assets 13,435 13,774 Deferred tax liabilities: Prepaid expenses (515) (467) Prepaid pension (1,222) (1,304) Deferred loan fees (154) (209) Depreciation and amortization (476) (563) Mortgage servicing rights (534) (650) Gross deferred tax liabilities (2,901) (3,193) Net deferred tax asset 10,534 10,581 Deferred tax valuation allowance (598) (450) Deferred tax assets, net of allowance $ 9,936 $ 10,131 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefits | |
Schedule of employee stock ownership plan | Shares held by the ESOP include the following: Year ended December 31, 2023 2022 Allocated 87,286 65,463 Committed to be allocated 21,821 21,821 Unallocated 327,318 349,141 Paid out to participants (10,988) (4,376) Total shares 425,437 432,049 |
Schedule of assumptions used and fair value for options granted | The Company followed SEC safe-harbor guidelines when determining the expected term of the options granted. The weighted average assumptions used and fair value for options granted under the EIP as of the grant date were as follows: Expected term (years) 6 Expected dividend yield 0% Weighted-average expected volatility 25.45% Weighted-average risk-free interest rate 0.29% Weighted-average fair value of options granted $1.67 |
Summary of options | A summary of options under the EIP as of December 31, 2023 is presented below: Weighted - Weighted-Average Number of Average Remaining Contractual Shares Exercise Price Term (in Years) Options outstanding at beginning of year 437,930 $ 6.62 7.66 Expired (666) 6.57 - Forfeited (1,001) 6.57 - Options outstanding at December 31, 2023 436,263 $ 6.62 6.64 Options exercisable at December 31, 2023 436,263 $ 6.62 6.64 |
Summary of Company's restricted stock activity | The following table summarizes the Company’s restricted stock activity for the year ended December 31, 2023: Weighted-Average Number Grant Date of Shares Fair Value per Share Non-vested restricted stock at beginning of year 56,266 $ 6.57 Vested (55,598) 6.57 Forfeited (668) 6.57 Non-vested restricted stock at December 31, 2023 - $ - |
Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition | The following table sets forth the plan’s funded status and amounts recognized in the Company’s consolidated statements of financial condition: December 31, 2023 2022 Projected and accumulated benefit obligation $ (17,868) $ (17,138) Plan assets at fair value 18,062 16,906 Funded status included in accrued expenses and other liabilities $ 194 $ (232) |
Schedule of plan's funded status | The following table details the plan’s funded status: 2023 2022 Change in benefit projected obligation: Projected benefit obligation at beginning of year $ 17,138 $ 23,055 Service cost - - Interest cost 861 634 Actuarial loss (gain) 570 (5,874) Benefits paid (701) (677) Projected benefit obligation at end of year 17,868 17,138 Change in plan assets: Fair value of plan assets at beginning of year 16,906 22,839 Actual return on plan assets 1,857 (5,256) Contributions - - Benefits paid (701) (677) Fair value of plan assets at end of year 18,062 16,906 Funded status $ 194 $ (232) |
Schedule of weighted-average assumptions used to determine the pension benefit obligation | The weighted-average assumptions used by the Company to determine the pension benefit obligation consisted of the following: Years ended December 31, 2023 2022 Discount rate 4.90 % 5.15 % Rate of compensation increase N/A N/A Weighted-average assumptions used by the Company to determine the net periodic pension cost consisted of the following: Years ended December 31, 2023 2022 Discount rate 5.15 % 2.80 % Expected long-term return on plan assets 6.00 % 4.75 % Rate of compensation increase N/A N/A |
Schedule of amounts recognized in accumulated other comprehensive loss | Amounts recognized in accumulated other comprehensive loss consisted of the following: Years ended December 31, 2023 2022 Net actuarial loss $ 4,330 $ 5,060 |
Schedule of net periodic pension (benefit) cost and amounts recognized in other comprehensive income | The net periodic pension cost (benefit) and amounts recognized in other comprehensive income are as follows: Years ended December 31, 2023 2022 Interest cost $ 861 $ 634 Expected return on plan assets (932) (1,007) Amortization of unrecognized loss 374 267 Net periodic cost (benefit) $ 303 $ (106) |
Schedule of fair value of pension plan assets, by fair value hierarchy | The fair value of the Company’s pension plan assets, by fair value hierarchy, are as follows: December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 12,293 $ — $ — $ 12,293 Equity 5,769 — — 5,769 Total assets at fair value $ 18,062 $ — $ — $ 18,062 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ 11,600 $ — $ — $ 11,600 Equity 5,306 — — 5,306 Total assets at fair value $ 16,906 $ — $ — $ 16,906 |
Schedule of employer contributions and benefit payments | Benefit payments are as follows: Year ended December 31, 2023 2022 Benefits paid $ 701 $ 677 |
Schedule of benefit payments, which reflect expected future service | As of December 31, 2023, the following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Fiscal Year Ending Pension Benefits 2024 $ 930 2025 970 2026 990 2027 1,040 2028 1,090 2029 – 2033 6,050 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of future minimum payments for operating leases | Future minimum payments for operating leases with initial terms of one year or more as of December 31, 2023 were as follows: Years ending December 31: 2024 $ 764 2025 739 2026 720 2027 676 2028 677 Thereafter 3,717 Total future minimum lease payments 7,293 Amounts representing interest (986) Present Value of Net Future Minimum Lease Payments $ 6,307 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Schedule of contract amounts represent off-balance sheet credit risk | Financial instruments whose contract amounts represent off-balance sheet credit risk are as follows: Years ended December 31, 2023 2022 Commitments to extend credit summarized as follows: Future loan commitments $ 5,318 $ 3,815 Undisbursed construction loans 42,482 30,274 Undisbursed home equity lines of credit 10,727 9,561 Undisbursed commercial and other line of credit 69,258 77,719 Standby letters of credit 4,965 4,571 Loans sold with recourse 1,873 276 Total $ 134,623 $ 126,216 |
Schedule of unfunded commitments | Activity in the Company’s ACL for unfunded commitments for the year ended December 31, 2023 is summarized in the tables below and included in accrued expenses and other liabilities. The Adoption of the CECL Standard row presents adjustments recorded on January 1, 2023 through retained earnings. Commercial Commercial Real Estate Residential and Industrial Indirect Consumer Totals Year ended December 31, 2023 Allowance for credit losses: Beginning balance $ — $ — $ — $ — $ — $ — Adoption of CECL standard 149 — 65 — 7 221 Provision for credit losses 23 — 7 — 6 36 Ending balance $ 172 $ — $ 72 $ — $ 13 $ 257 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivatives | |
Schedule of information regarding derivatives | Summary information regarding these derivatives is presented below: December 31, 2023 2022 Notational amount $ 65,420 $ 26,541 Fair value $ 5,343 $ 3,578 Weighted average pay rates 5.06 % 3.69 % Weighted average receive rates 7.49 % 6.30 % Weighted average maturity (in years) 8.88 8.79 Number of Contracts 14 7 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Matters | |
Schedule of actual capital amounts and ratios | The Bank’s actual capital amounts and ratios were: To be Well Capitalized under For Capital Adequacy Prompt Corrective Action Actual Purposes Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Rhinebeck Bank Total capital (to risk-weighted assets) $ 144,675 12.70 % $ 91,154 8.00 % $ 113,942 10.00 % Tier 1 capital (to risk-weighted assets) 136,295 11.96 % 68,365 6.00 % 91,154 8.00 % Common equity tier one capital (to risk weighted assets) 136,295 11.96 % 51,274 4.50 % 74,062 6.50 % Tier 1 capital (to average assets) 136,295 10.10 % 53,990 4.00 % 67,488 5.00 % December 31, 2022 Rhinebeck Bank Total capital (to risk-weighted assets) $ 139,257 12.25 % $ 90,980 8.00 % $ 113,725 10.00 % Tier 1 capital (to risk-weighted assets) 131,314 11.55 % 68,235 6.00 % 90,980 8.00 % Common equity tier one capital (to risk weighted assets) 131,314 11.55 % 51,176 4.50 % 73,921 6.50 % Tier 1 capital (to average assets) 131,314 9.75 % 53,868 4.00 % 67,335 5.00 % |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value | |
Schedule of assets carried at fair value on a recurring basis | The following tables detail the assets that are carried at fair value on a recurring basis as of the periods shown and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2023 Assets: U.S. Treasury securities $ 24,006 $ 24,006 $ — $ — U.S. government agency mortgage-backed securities-residential 128,580 — 128,580 — U.S. government agency securities 23,158 — 23,158 — Municipal securities 2,903 — 2,788 115 Corporate Bonds 12,640 — 12,640 — Other 698 — 698 — Total available for sale securities 191,985 24,006 167,864 115 Loan level interest rate swaps 6,278 — 6,278 — Total assets $ 198,263 $ 24,006 $ 174,142 $ 115 Liabilities: Loan level interest rate swaps $ 6,278 $ — $ 6,278 $ — Total liabilities $ 6,278 $ — $ 6,278 $ — December 31, 2022 Assets: U.S. Treasury securities $ 37,857 $ 37,857 $ — $ — U.S. government agency mortgage-backed securities – residential 144,534 — 144,534 — U.S. government agency securities 22,449 — 22,449 — Municipal securities 4,786 — 4,656 130 Corporate Bonds 13,217 — 13,217 — Other 816 — 816 — Total available for sale securities 223,659 37,857 185,672 130 Loan level interest rate swaps 4,548 — 4,548 — Total assets $ 228,207 $ 37,857 $ 190,220 $ 130 Liabilities: Loan level interest rate swaps $ 4,548 $ — $ 4,548 $ — Total liabilities $ 4,548 $ — $ 4,548 $ — |
Schedule of assets carried at fair value and measured at fair value on a nonrecurring basis | The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Balance Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2023 Individually analyzed loans, with specific reserves $ 758 $ — $ — $ 758 Other real estate owned 25 — — 25 Total $ 783 $ — $ — $ 783 December 31, 2022 Impaired loans, with specific reserves $ 319 $ — $ — $ 319 Total $ 319 $ — $ — $ 319 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Average) December 31, 2023 Individually analyzed loans, with specific reserves $ 758 Appraisal of collateral (1) Liquidation expenses (3) 0% to 8% Appraisal adjustments (2) 0% to 20% Other real estate owned 25 Appraisal of collateral (1) Liquidation expenses (3) 0% to 8% Appraisal adjustments (2) 0% to 20% December 31, 2022 Impaired loans $ 319 Appraisal of collateral (1) Liquidation expenses (3) 0% to 8% Appraisal adjustments (2) 0% to 20% (1) Fair value is generally through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraised value. (3) Estimated costs to sell. |
Schedule of carrying value and fair values of the financial instruments | As of the following dates, the carrying value and fair values of the Company’s financial instruments were: December 31, December 31, 2023 2022 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and cash equivalents (Level 1) $ 22,129 $ 22,129 $ 31,384 $ 31,384 Available for sale securities (Level 1) 24,006 24,006 37,857 37,857 Available for sale securities (Level 2) 167,864 167,864 185,672 185,672 Available for sale securities (Level 3) 115 115 130 130 Loan level interest rate swaps (Level 2) 6,278 6,278 4,548 4,548 FHLB stock (Level 2) 6,514 6,514 3,258 3,258 Loans, net (Level 3) 1,008,851 979,037 994,368 953,432 Accrued interest receivable (Level 2) 4,616 4,616 4,255 4,255 Mortgage servicing rights (Level 3) 1,977 4,720 2,409 5,211 Financial Liabilities: Deposits (Level 2) 1,030,503 948,140 1,129,933 1,001,455 Mortgagors' escrow accounts (Level 2) 9,274 9,274 9,732 9,723 FHLB advances (Level 2) 128,064 127,592 57,723 57,739 Subordinated debt (Level 2) 5,155 5,155 5,155 5,155 Loan level interest rate swaps (Level 2) 6,278 6,278 4,548 4,548 Accrued interest payable (Level 2) 1,488 1,488 774 774 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Loss. | |
Schedule of accumulated other comprehensive loss components | The activity in accumulated other comprehensive loss for the years ended December 31, 2023 and 2022, is as follows: Accumulated Other Comprehensive Loss (1) Unrealized (losses) gains on Defined Benefit available for sale Pension Plan securities Total Balance at December 31, 2022 $ (3,998) $ (28,191) $ (32,189) Other comprehensive gain before reclassifications 282 2,114 2,396 Amounts reclassified from accumulated other comprehensive loss 295 — 295 Period change 577 2,114 2,691 Balance at December 31, 2023 $ (3,421) $ (26,077) $ (29,498) Balance at December 31, 2021 $ (3,902) $ (2,733) $ (6,635) Other comprehensive loss before reclassifications (307) (25,592) (25,899) Amounts reclassified from accumulated other comprehensive loss 211 134 345 Period change (96) (25,458) (25,554) Balance at December 31, 2022 $ (3,998) $ (28,191) $ (32,189) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0% . |
Schedule of accumulated other comprehensive loss activity | Details about accumulated other comprehensive loss components are as follows: Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended Affected Line Item in the Consolidated December 31, Statement of Income 2023 2022 Securities available for sale (1) Net securities losses reclassified into earnings $ — $ (170) Net realized loss on sales and calls of securities Related income tax expense — 36 Provision for income taxes Net effect on accumulated other comprehensive loss for the period — (134) Defined benefit pension plan (2) Amortization of net loss and prior service costs (374) (267) Other non-interest expense Related income tax expense 79 56 Provision for income taxes Net effect on accumulated other comprehensive gain or loss for the period (295) (211) Total reclassifications for the period $ (295) $ (345) (1) For additional details related to unrealized gains and losses on securities and related amounts reclassified from accumulated other comprehensive loss see Note 2, “Available for Sale Securities. ” (2) Included in the computation of net periodic pension cost. See Note 9, “Employee Benefits” for additional details . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | Year Ended December 31, 2023 2022 Net income applicable to common stock $ 4,395 $ 6,997 Average number of common shares outstanding 11,127,247 11,199,387 Less: Average unearned ESOP shares 338,238 360,052 Average number of common shares outstanding used to calculate basic earnings per common share 10,789,009 10,839,335 Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share 25,652 49,650 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 40,891 115,612 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 10,855,552 11,004,597 Earnings per Common share: Basic $ 0.41 $ 0.65 Diluted $ 0.40 $ 0.64 |
Nature of Business and Signif_4
Nature of Business and Significant Accounting Policies (Details) | 12 Months Ended | |||
Feb. 23, 2024 USD ($) | Jan. 01, 2023 USD ($) | Dec. 31, 2023 USD ($) item segment | Dec. 31, 2022 USD ($) | |
Nature Of Business And Significant Accounting Policies [Line Items] | ||||
Number of branches | item | 14 | |||
Number of representative offices | item | 2 | |||
Provision for credit losses - unfunded commitments | $ 221,000 | $ 36,000 | ||
Useful life of purchased customer accounts | 13 years | |||
Real Estate Acquired Through Foreclosure | $ 25,000 | |||
Uncertain tax positions | $ 0 | $ 0 | ||
Number of reportable segments | segment | 1 | |||
Subsequent Event | ||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||
Proceeds from sale of branch property | $ 2,900,000 |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies (Adoption of new accounting standard 2023) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Allowance for credit losses | $ 8,124 | $ 7,943 | |
Effective income tax | 1,219 | 1,899 | |
Retained earnings | $ 100,386 | 96,624 | |
Adoption of CECL Standard | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Allowance for credit losses | $ 580 | ||
Accounting Standards Update 2016-13 | Adoption of CECL Standard | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Allowance for credit losses | $ 801 | ||
Effective income tax | 168 | ||
Retained earnings | 633 | ||
Accounting Standards Update 2016-13 | Adoption of CECL Standard | Allowance for credit losses (loans) | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Allowance for credit losses | 580 | ||
Effective income tax | 122 | ||
Retained earnings | 458 | ||
Accounting Standards Update 2016-13 | Adoption of CECL Standard | ACL (Unfunded credit commitments) | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Allowance for credit losses | 221 | ||
Effective income tax | 46 | ||
Retained earnings | $ 175 |
Available for Sale Securities_2
Available for Sale Securities (Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | $ 224,995 | |
Gross Unrealized Gains | $ 172 | |
Gross Unrealized Losses | (33,010) | (35,857) |
Fair Value | 191,985 | |
Amortized Cost | 259,344 | |
Fair Value | 191,985 | |
Fair Value | 223,659 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 25,072 | |
Gross Unrealized Losses | (1,066) | (2,315) |
Fair Value | 24,006 | |
Amortized Cost | 40,172 | |
Fair Value | 24,006 | |
Fair Value | 37,857 | |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 156,523 | |
Gross Unrealized Losses | (27,943) | (29,392) |
Fair Value | 128,580 | |
Amortized Cost | 173,926 | |
Fair Value | 128,580 | |
Fair Value | 144,534 | |
U.S. government agency securities | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 24,774 | |
Gross Unrealized Losses | (1,616) | (2,336) |
Fair Value | 23,158 | |
Amortized Cost | 24,785 | |
Fair Value | 23,158 | |
Fair Value | 22,449 | |
Municipal securities | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 3,163 | |
Gross Unrealized Losses | (260) | (331) |
Fair Value | 2,903 | |
Amortized Cost | 5,117 | |
Fair Value | 2,903 | |
Fair Value | 4,786 | |
Corporate Bonds | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 14,700 | |
Gross Unrealized Losses | (2,060) | (1,483) |
Fair Value | 12,640 | |
Amortized Cost | 14,700 | |
Fair Value | 12,640 | |
Fair Value | 13,217 | |
Other | ||
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 763 | |
Gross Unrealized Gains | 172 | |
Gross Unrealized Losses | (65) | |
Fair Value | 698 | |
Amortized Cost | 644 | |
Fair Value | $ 698 | |
Fair Value | $ 816 |
Available for Sale Securities_3
Available for Sale Securities (Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | $ 1,184 | $ 40,946 |
Less Than 12 Months Unrealized Losses | (83) | (4,211) |
12 Months or Longer Fair Value | 190,660 | 181,268 |
12 Months or Longer Unrealized Losses | (32,927) | (31,646) |
Fair Value | 191,844 | 222,214 |
Unrealized Losses | (33,010) | (35,857) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
12 Months or Longer Fair Value | 24,006 | 37,857 |
12 Months or Longer Unrealized Losses | (1,066) | (2,315) |
Fair Value | 24,006 | 37,857 |
Unrealized Losses | (1,066) | (2,315) |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 23,384 | |
Less Than 12 Months Unrealized Losses | (2,711) | |
12 Months or Longer Fair Value | 128,580 | 121,151 |
12 Months or Longer Unrealized Losses | (27,943) | (26,681) |
Fair Value | 128,580 | 144,535 |
Unrealized Losses | (27,943) | (29,392) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 9,160 | |
Less Than 12 Months Unrealized Losses | (869) | |
12 Months or Longer Fair Value | 23,158 | 13,289 |
12 Months or Longer Unrealized Losses | (1,616) | (1,467) |
Fair Value | 23,158 | 22,449 |
Unrealized Losses | (1,616) | (2,336) |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 512 | 1,529 |
Less Than 12 Months Unrealized Losses | (18) | (4) |
12 Months or Longer Fair Value | 2,276 | 3,127 |
12 Months or Longer Unrealized Losses | (242) | (327) |
Fair Value | 2,788 | 4,656 |
Unrealized Losses | (260) | (331) |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 6,873 | |
Less Than 12 Months Unrealized Losses | (627) | |
12 Months or Longer Fair Value | 12,640 | 5,844 |
12 Months or Longer Unrealized Losses | (2,060) | (856) |
Fair Value | 12,640 | 12,717 |
Unrealized Losses | (2,060) | $ (1,483) |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 672 | |
Less Than 12 Months Unrealized Losses | (65) | |
Fair Value | 672 | |
Unrealized Losses | $ (65) |
Available for Sale Securities_4
Available for Sale Securities (Schedule of maturities of debt securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Within 1 year | $ 15,449 | $ 16,923 |
After 1 but within 5 years | 32,860 | 46,162 |
After 5 but within 10 years | 19,400 | 21,689 |
Total Maturities | 67,709 | 84,774 |
Mortgage-backed securities | 156,523 | 173,926 |
Other | 763 | 644 |
Amortized Cost | 224,995 | |
Amortized Cost | 259,344 | |
Fair Value | ||
Within 1 year | 15,170 | 16,512 |
After 1 but within 5 years | 30,569 | 42,225 |
After 5 but within 10 years | 16,968 | 19,572 |
Total Maturities | 62,707 | 78,309 |
Mortgage-backed securities | 128,580 | 144,534 |
Other | 698 | 816 |
Fair Value | $ 191,985 | |
Fair Value | $ 223,659 |
Available for Sale Securities_5
Available for Sale Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | |
Debt Securities, Available-for-sale [Line Items] | ||
Number of individual available-for-sale securities with unrealized losses | security | 233 | 242 |
Unrealized Losses | $ 33,010 | $ 35,857 |
Aggregate percentage of depreciation | 14.68% | 13.89% |
Allowance for credit losses for available-for-sale securities | $ 0 | |
Available for sale securities on non-accrual status | 0 | $ 0 |
Accrued interest related to securities reversed | 0 | 0 |
Accrued interest receivable on available for sale securities | $ 602 | $ 533 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Interest Receivable | Interest Receivable |
Proceeds from the sale of available for sale securities and calls | $ 0 | $ 14,816 |
Gains on sales of investment securities | 0 | 0 |
Losses on sales of investment securities | 0 | 170 |
Federal Home Loan Bank Advances [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale securities pledged to secure Federal Home Loan Bank of New York ("FHLBNY") borrowings | 13,130 | 15,407 |
Asset Pledged as Collateral [Member] | Federal Reserve Bank Advances [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale securities pledged to secure Federal Home Loan Bank of New York ("FHLBNY") borrowings | $ 75,769 | $ 958 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses (Schedule of summary loan portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | $ 1,008,593 | ||
Allowance for credit losses | (8,124) | $ (7,943) | |
Total net loans | 1,008,851 | ||
Total gross loans | 990,439 | ||
Net deferred loan costs | 11,872 | ||
Dealer reserves | 8,382 | 11,109 | |
Other deferred origination fees | 763 | ||
Allowance for loan losses | (7,943) | $ (7,559) | |
Total net loans | 994,368 | ||
Indirect automobile | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 394,245 | ||
Allowance for credit losses | (4,348) | (3,868) | |
Total gross loans | 457,223 | ||
Allowance for loan losses | (3,868) | (3,416) | |
Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 428,077 | ||
Allowance for credit losses | (2,716) | (3,031) | |
Total gross loans | 370,528 | ||
Allowance for loan losses | (3,031) | (3,317) | |
Commercial real estate | Construction | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 20,208 | ||
Total gross loans | 20,329 | ||
Commercial real estate | Non-residential | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 324,493 | ||
Total gross loans | 282,422 | ||
Commercial real estate | Multifamily | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 83,376 | ||
Total gross loans | 67,777 | ||
Residential | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 77,259 | ||
Allowance for credit losses | (346) | (103) | |
Total gross loans | 53,720 | ||
Allowance for loan losses | (103) | (54) | |
Unpaid principal balances of loans held for sale | 908 | 247 | |
Commercial and industrial | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 88,927 | ||
Allowance for credit losses | (606) | (881) | |
Total gross loans | 87,982 | ||
Allowance for loan losses | (881) | (725) | |
Commercial and industrial | Small Business Administration Paycheck Protection Program | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 272 | ||
Total gross loans | 537 | ||
Consumer | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 20,085 | ||
Allowance for credit losses | (108) | (60) | |
Total gross loans | 20,986 | ||
Allowance for loan losses | (60) | $ (47) | |
Consumer | Indirect automobile | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 394,245 | ||
Total gross loans | 457,223 | ||
Consumer | Home equity | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | 11,990 | ||
Total gross loans | 11,507 | ||
Consumer | Other consumer | |||
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract] | |||
Total gross loans | $ 8,095 | ||
Total gross loans | $ 9,479 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually analyzed loans | $ 4,279 | $ 4,424 |
Financing Receivable, Accrued Interest, Writeoff | 242 | |
Accrued interest receivable | $ 4,014 | $ 3,723 |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Interest Receivable | Interest Receivable |
Aggregate balances of loans serviced to participants | $ 44,418 | $ 8,466 |
Aggregate balances of loans serviced to third party | 282,269 | 301,235 |
Balance of capitalized servicing rights | 1,977 | 2,409 |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 0 | 0 |
Amount of consumer mortgages and loans secured by residential real estate properties in process of foreclosure | 152 | 625 |
Financial instruments represent off-balance sheet credit risk, asset | 134,623 | 126,216 |
Loans sold with recourse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financial instruments represent off-balance sheet credit risk, asset | 1,873 | 276 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually analyzed loans | 1,624 | 1,794 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually analyzed loans | 222 | $ 268 |
Consumer | Home equity | Consumer Borrower | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually analyzed loans | $ 98 | |
Financing Receivable Individually Evaluated For Impairment, Number Of Contracts | loan | 1 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses (Schedule of loans by risk rating and portfolio segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | $ 210,020 | |
2022 | 318,157 | |
2021 | 166,322 | |
2020 | 71,046 | |
2019 | 80,126 | |
Prior | 128,981 | |
Revolving Loans Amortized Cost | 33,941 | |
Total gross loans | 1,008,593 | |
Current-period gross write-offs | ||
2023 | 206 | |
2022 | 1,522 | |
2021 | 1,754 | |
2020 | 429 | |
2019 | 309 | |
Prior | 255 | |
Total | 4,475 | |
Total gross loans | $ 990,439 | |
Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 31 | |
2022 | 516 | |
2021 | 196 | |
2020 | 93 | |
2019 | 63 | |
Prior | 1,479 | |
Revolving Loans Amortized Cost | 1 | |
Total gross loans | 2,379 | |
Pass | ||
Current-period gross write-offs | ||
Total gross loans | 972,372 | |
Pass | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 180,780 | |
2022 | 285,772 | |
2021 | 143,725 | |
2020 | 57,586 | |
2019 | 64,278 | |
Prior | 74,070 | |
Revolving Loans Amortized Cost | 19,693 | |
Total gross loans | 825,904 | |
Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 28,985 | |
2022 | 31,869 | |
2021 | 22,100 | |
2020 | 13,367 | |
2019 | 9,320 | |
Prior | 49,105 | |
Revolving Loans Amortized Cost | 14,204 | |
Total gross loans | 168,950 | |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 224 | |
2021 | 301 | |
2020 | 0 | |
2019 | 5,917 | |
Prior | 963 | |
Total gross loans | 7,405 | |
Current-period gross write-offs | ||
Total gross loans | 11,729 | |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 548 | |
Prior | 3,364 | |
Revolving Loans Amortized Cost | 43 | |
Total gross loans | 3,955 | |
Current-period gross write-offs | ||
Total gross loans | 6,338 | |
Indirect automobile | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 394,245 | |
Current-period gross write-offs | ||
Total | 3,577 | |
Total gross loans | 457,223 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 428,077 | |
Current-period gross write-offs | ||
Total gross loans | 370,528 | |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 9,328 | |
2022 | 10,880 | |
Total gross loans | 20,208 | |
Current-period gross write-offs | ||
Total gross loans | 20,329 | |
Commercial real estate | Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 8,227 | |
Total gross loans | 8,227 | |
Current-period gross write-offs | ||
Total gross loans | 20,329 | |
Commercial real estate | Construction | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 9,328 | |
2022 | 2,653 | |
Total gross loans | 11,981 | |
Commercial real estate | Non-residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 51,083 | |
2022 | 62,769 | |
2021 | 41,454 | |
2020 | 29,420 | |
2019 | 53,865 | |
Prior | 85,902 | |
Total gross loans | 324,493 | |
Current-period gross write-offs | ||
Total gross loans | 282,422 | |
Commercial real estate | Non-residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 34,508 | |
2022 | 43,534 | |
2021 | 26,600 | |
2020 | 16,673 | |
2019 | 39,943 | |
Prior | 44,412 | |
Total gross loans | 205,670 | |
Current-period gross write-offs | ||
Total gross loans | 271,491 | |
Commercial real estate | Non-residential | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 16,575 | |
2022 | 19,235 | |
2021 | 14,854 | |
2020 | 12,747 | |
2019 | 7,573 | |
Prior | 38,004 | |
Total gross loans | 108,988 | |
Commercial real estate | Non-residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 5,884 | |
Prior | 963 | |
Total gross loans | 6,847 | |
Current-period gross write-offs | ||
Total gross loans | 7,904 | |
Commercial real estate | Non-residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 465 | |
Prior | 2,523 | |
Total gross loans | 2,988 | |
Current-period gross write-offs | ||
Total gross loans | 3,027 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 1,807 | |
2022 | 25,519 | |
2021 | 37,299 | |
2020 | 2,100 | |
2019 | 2,805 | |
Prior | 13,846 | |
Total gross loans | 83,376 | |
Current-period gross write-offs | ||
Total gross loans | 67,777 | |
Commercial real estate | Multifamily | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 807 | |
2022 | 18,765 | |
2021 | 30,374 | |
2020 | 2,100 | |
2019 | 1,540 | |
Prior | 4,348 | |
Total gross loans | 57,934 | |
Current-period gross write-offs | ||
Total gross loans | 67,777 | |
Commercial real estate | Multifamily | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 1,000 | |
2022 | 6,754 | |
2021 | 6,925 | |
2019 | 1,265 | |
Prior | 9,498 | |
Total gross loans | 25,442 | |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 28,670 | |
2022 | 25,517 | |
2021 | 2,150 | |
2020 | 2,732 | |
2019 | 2,626 | |
Prior | 15,564 | |
Total gross loans | 77,259 | |
Current-period gross write-offs | ||
Total gross loans | 53,720 | |
Residential | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 28,670 | |
2022 | 25,260 | |
2021 | 2,150 | |
2020 | 2,732 | |
2019 | 2,626 | |
Prior | 14,197 | |
Total gross loans | 75,635 | |
Residential | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 257 | |
Prior | 1,367 | |
Total gross loans | 1,624 | |
Residential | Pass | ||
Current-period gross write-offs | ||
Total gross loans | 52,265 | |
Residential | Substandard | ||
Current-period gross write-offs | ||
Total gross loans | 1,455 | |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 14,943 | |
2022 | 29,297 | |
2021 | 11,426 | |
2020 | 2,094 | |
2019 | 1,560 | |
Prior | 3,698 | |
Revolving Loans Amortized Cost | 25,909 | |
Total gross loans | 88,927 | |
Current-period gross write-offs | ||
2021 | 710 | |
Prior | 126 | |
Total | 836 | |
Total gross loans | 87,982 | |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 12,637 | |
2022 | 26,070 | |
2021 | 10,804 | |
2020 | 1,474 | |
2019 | 962 | |
Prior | 1,254 | |
Revolving Loans Amortized Cost | 11,662 | |
Total gross loans | 64,863 | |
Current-period gross write-offs | ||
Total gross loans | 83,680 | |
Commercial and industrial | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 2,082 | |
2022 | 3,227 | |
2021 | 321 | |
2020 | 620 | |
2019 | 482 | |
Prior | 1,603 | |
Revolving Loans Amortized Cost | 14,204 | |
Total gross loans | 22,539 | |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 224 | |
2021 | 301 | |
2019 | 33 | |
Total gross loans | 558 | |
Current-period gross write-offs | ||
Total gross loans | 3,825 | |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 83 | |
Prior | 841 | |
Revolving Loans Amortized Cost | 43 | |
Total gross loans | 967 | |
Current-period gross write-offs | ||
Total gross loans | 477 | |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 20,085 | |
Current-period gross write-offs | ||
Total | 62 | |
Total gross loans | 20,986 | |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 101,261 | |
2022 | 160,698 | |
2021 | 73,137 | |
2020 | 34,265 | |
2019 | 19,098 | |
Prior | 5,786 | |
Total gross loans | 394,245 | |
Current-period gross write-offs | ||
2023 | 198 | |
2022 | 1,492 | |
2021 | 1,034 | |
2020 | 418 | |
2019 | 309 | |
Prior | 126 | |
Total | 3,577 | |
Total gross loans | 457,223 | |
Consumer | Indirect automobile | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 101,230 | |
2022 | 160,439 | |
2021 | 72,941 | |
2020 | 34,196 | |
2019 | 19,035 | |
Prior | 5,773 | |
Total gross loans | 393,614 | |
Consumer | Indirect automobile | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 31 | |
2022 | 259 | |
2021 | 196 | |
2020 | 69 | |
2019 | 63 | |
Prior | 13 | |
Total gross loans | 631 | |
Consumer | Indirect automobile | Pass | ||
Current-period gross write-offs | ||
Total gross loans | 456,112 | |
Consumer | Indirect automobile | Substandard | ||
Current-period gross write-offs | ||
Total gross loans | 1,111 | |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 34 | |
Prior | 4,163 | |
Revolving Loans Amortized Cost | 7,793 | |
Total gross loans | 11,990 | |
Current-period gross write-offs | ||
Total gross loans | 11,507 | |
Consumer | Home equity | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 34 | |
Prior | 4,064 | |
Revolving Loans Amortized Cost | 7,793 | |
Total gross loans | 11,891 | |
Consumer | Home equity | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Prior | 99 | |
Total gross loans | 99 | |
Consumer | Home equity | Pass | ||
Current-period gross write-offs | ||
Total gross loans | 11,290 | |
Consumer | Home equity | Substandard | ||
Current-period gross write-offs | ||
Total gross loans | 217 | |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 2,928 | |
2022 | 3,477 | |
2021 | 856 | |
2020 | 435 | |
2019 | 138 | |
Prior | 22 | |
Revolving Loans Amortized Cost | 239 | |
Total gross loans | 8,095 | |
Current-period gross write-offs | ||
2023 | 8 | |
2022 | 30 | |
2021 | 10 | |
2020 | 11 | |
Prior | 3 | |
Total | 62 | |
Total gross loans | 9,479 | |
Consumer | Other consumer | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 2,928 | |
2022 | 3,477 | |
2021 | 856 | |
2020 | 411 | |
2019 | 138 | |
Prior | 22 | |
Revolving Loans Amortized Cost | 238 | |
Total gross loans | 8,070 | |
Consumer | Other consumer | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 24 | |
Revolving Loans Amortized Cost | 1 | |
Total gross loans | $ 25 | |
Consumer | Other consumer | Pass | ||
Current-period gross write-offs | ||
Total gross loans | 9,428 | |
Consumer | Other consumer | Substandard | ||
Current-period gross write-offs | ||
Total gross loans | $ 51 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses (Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | $ 1,008,593 | |
Total gross loans | $ 990,439 | |
Non-accrual | 4,181 | |
Nonaccrual | 4,424 | |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 989,424 | |
Total gross loans | 967,725 | |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 12,538 | |
Total gross loans | 17,453 | |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 3,799 | |
Total gross loans | 2,243 | |
Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 2,832 | |
Total gross loans | 3,018 | |
Indirect automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 394,245 | |
Total gross loans | 457,223 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 428,077 | |
Total gross loans | 370,528 | |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 20,208 | |
Total gross loans | 20,329 | |
Commercial real estate | Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 20,208 | |
Total gross loans | 20,329 | |
Commercial real estate | Non-residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 324,493 | |
Total gross loans | 282,422 | |
Non-accrual | 1,621 | |
Nonaccrual | 1,382 | |
Commercial real estate | Non-residential | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 319,467 | |
Total gross loans | 275,860 | |
Commercial real estate | Non-residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 1,276 | |
Total gross loans | 4,701 | |
Commercial real estate | Non-residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 2,129 | |
Total gross loans | 479 | |
Commercial real estate | Non-residential | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 1,621 | |
Total gross loans | 1,382 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 83,376 | |
Total gross loans | 67,777 | |
Commercial real estate | Multifamily | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 83,376 | |
Total gross loans | 67,413 | |
Commercial real estate | Multifamily | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 364 | |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 77,259 | |
Total gross loans | 53,720 | |
Non-accrual | 1,624 | |
Nonaccrual | 1,794 | |
Residential | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 75,998 | |
Total gross loans | 51,476 | |
Residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 888 | |
Total gross loans | 1,417 | |
Residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 37 | |
Total gross loans | 246 | |
Residential | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 336 | |
Total gross loans | 581 | |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 88,927 | |
Total gross loans | 87,982 | |
Non-accrual | 181 | |
Nonaccrual | 183 | |
Commercial and industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 88,646 | |
Total gross loans | 87,742 | |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 17 | |
Total gross loans | 57 | |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 83 | |
Commercial and industrial | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 181 | |
Total gross loans | 183 | |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 20,085 | |
Total gross loans | 20,986 | |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 394,245 | |
Total gross loans | 457,223 | |
Non-accrual | 631 | |
Nonaccrual | 797 | |
Consumer | Indirect automobile | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 382,042 | |
Total gross loans | 444,418 | |
Consumer | Indirect automobile | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 10,155 | |
Total gross loans | 10,714 | |
Consumer | Indirect automobile | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 1,478 | |
Total gross loans | 1,389 | |
Consumer | Indirect automobile | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 570 | |
Total gross loans | 702 | |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 11,990 | |
Total gross loans | 11,507 | |
Non-accrual | 99 | |
Nonaccrual | 217 | |
Consumer | Home equity | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 11,843 | |
Total gross loans | 11,279 | |
Consumer | Home equity | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 51 | |
Consumer | Home equity | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 48 | |
Total gross loans | 58 | |
Consumer | Home equity | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 99 | |
Total gross loans | 119 | |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 8,095 | |
Total gross loans | 9,479 | |
Non-accrual | 25 | |
Nonaccrual | 51 | |
Consumer | Other consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 7,844 | |
Total gross loans | 9,208 | |
Consumer | Other consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 202 | |
Total gross loans | 149 | |
Consumer | Other consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 24 | |
Total gross loans | 71 | |
Consumer | Other consumer | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | $ 25 | |
Total gross loans | $ 51 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses (Schedule of amortized cost basis of non-accrual loans and related ACL) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | $ 3,209 |
Commercial real estate | Non-residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 1,152 |
Residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 1,624 |
Commercial and industrial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 150 |
Consumer | Indirect automobile | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 160 |
Consumer | Home equity | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 99 |
Consumer | Other consumer | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | $ 24 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses (Schedule of information to impaired loans by loan portfolio class) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
With no related allowance recorded: | |
Recorded Investment | $ 3,996 |
Unpaid Principal Balance | 5,870 |
Average Recorded Investment | 4,686 |
With an allowance recorded: | |
Recorded Investment | 428 |
Unpaid Principal Balance | 437 |
Related Allowance | 109 |
Average Recorded Investment | 418 |
Total: | |
Recorded Investment | 4,424 |
Unpaid Principal Balance | 6,307 |
Related Allowance | 109 |
Average Recorded Investment | 5,104 |
Commercial real estate | Non-residential | |
With no related allowance recorded: | |
Recorded Investment | 1,382 |
Unpaid Principal Balance | 2,472 |
Average Recorded Investment | 1,967 |
Total: | |
Recorded Investment | 1,382 |
Unpaid Principal Balance | 2,472 |
Average Recorded Investment | 1,967 |
Residential | |
With no related allowance recorded: | |
Recorded Investment | 1,794 |
Unpaid Principal Balance | 2,445 |
Average Recorded Investment | 1,890 |
Total: | |
Recorded Investment | 1,794 |
Unpaid Principal Balance | 2,445 |
Average Recorded Investment | 1,890 |
Commercial and industrial | |
With no related allowance recorded: | |
Recorded Investment | 183 |
Unpaid Principal Balance | 242 |
Average Recorded Investment | 309 |
With an allowance recorded: | |
Average Recorded Investment | 114 |
Total: | |
Recorded Investment | 183 |
Unpaid Principal Balance | 242 |
Average Recorded Investment | 423 |
Consumer | Indirect automobile | |
With no related allowance recorded: | |
Recorded Investment | 371 |
Unpaid Principal Balance | 439 |
Average Recorded Investment | 336 |
With an allowance recorded: | |
Recorded Investment | 426 |
Unpaid Principal Balance | 435 |
Related Allowance | 107 |
Average Recorded Investment | 293 |
Total: | |
Recorded Investment | 797 |
Unpaid Principal Balance | 874 |
Related Allowance | 107 |
Average Recorded Investment | 629 |
Consumer | Home equity | |
With no related allowance recorded: | |
Recorded Investment | 217 |
Unpaid Principal Balance | 219 |
Average Recorded Investment | 146 |
Total: | |
Recorded Investment | 217 |
Unpaid Principal Balance | 219 |
Average Recorded Investment | 146 |
Consumer | Other consumer | |
With no related allowance recorded: | |
Recorded Investment | 49 |
Unpaid Principal Balance | 53 |
Average Recorded Investment | 38 |
With an allowance recorded: | |
Recorded Investment | 2 |
Unpaid Principal Balance | 2 |
Related Allowance | 2 |
Average Recorded Investment | 11 |
Total: | |
Recorded Investment | 51 |
Unpaid Principal Balance | 55 |
Related Allowance | 2 |
Average Recorded Investment | $ 49 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses (Schedule of loan balances by segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for loan losses: | ||
Beginning balance | $ 7,943 | |
Provision for (reversal of) credit losses | 1,666 | |
Loans charged-off | (4,475) | |
Recoveries | 2,410 | |
Ending balance | 8,124 | $ 7,943 |
Allowance for loan losses: | ||
Beginning balance | 7,943 | 7,559 |
Provision for credit losses | 1,414 | |
Loans charged-off | (3,267) | |
Recoveries | 2,237 | |
Ending balance | 7,943 | |
Allowance for loan losses: | ||
Loans individually analyzed | 216 | |
Loans collectively analyzed | 7,908 | |
Ending balance: Individually evaluated for impairment | 109 | |
Ending balance: Collectively evaluated for impairment | 7,834 | |
Loan receivables: | ||
Ending balance | 990,439 | |
Ending balance | 1,008,593 | |
Ending balance: Individually evaluated for impairment | 4,279 | 4,424 |
Ending balance: Collectively evaluated for impairment | 1,004,314 | 986,015 |
Indirect automobile | ||
Allowance for loan losses: | ||
Beginning balance | 3,868 | |
Provision for (reversal of) credit losses | 165 | |
Loans charged-off | (3,577) | |
Recoveries | 2,182 | |
Ending balance | 4,348 | 3,868 |
Allowance for loan losses: | ||
Beginning balance | 3,868 | 3,416 |
Provision for credit losses | 1,205 | |
Loans charged-off | (2,660) | |
Recoveries | 1,907 | |
Ending balance | 3,868 | |
Allowance for loan losses: | ||
Loans individually analyzed | 166 | |
Loans collectively analyzed | 4,182 | |
Ending balance: Individually evaluated for impairment | 107 | |
Ending balance: Collectively evaluated for impairment | 3,761 | |
Loan receivables: | ||
Ending balance | 457,223 | |
Ending balance | 394,245 | |
Ending balance: Individually evaluated for impairment | 631 | 797 |
Ending balance: Collectively evaluated for impairment | 393,614 | 456,426 |
Adoption of CECL Standard | ||
Allowance for loan losses: | ||
Beginning balance | 580 | |
Ending balance | 580 | |
Adoption of CECL Standard | Indirect automobile | ||
Allowance for loan losses: | ||
Beginning balance | 1,710 | |
Ending balance | 1,710 | |
Commercial real estate | ||
Allowance for loan losses: | ||
Beginning balance | 3,031 | |
Provision for (reversal of) credit losses | 545 | |
Ending balance | 2,716 | 3,031 |
Allowance for loan losses: | ||
Beginning balance | 3,031 | 3,317 |
Provision for credit losses | (286) | |
Ending balance | 3,031 | |
Allowance for loan losses: | ||
Loans individually analyzed | 16 | |
Loans collectively analyzed | 2,700 | |
Ending balance: Collectively evaluated for impairment | 3,031 | |
Loan receivables: | ||
Ending balance | 370,528 | |
Ending balance | 428,077 | |
Ending balance: Individually evaluated for impairment | 1,621 | 1,382 |
Ending balance: Collectively evaluated for impairment | 426,456 | 369,146 |
Commercial real estate | Adoption of CECL Standard | ||
Allowance for loan losses: | ||
Beginning balance | (860) | |
Ending balance | (860) | |
Residential | ||
Allowance for loan losses: | ||
Beginning balance | 103 | |
Provision for (reversal of) credit losses | 137 | |
Recoveries | 52 | |
Ending balance | 346 | 103 |
Allowance for loan losses: | ||
Beginning balance | 103 | 54 |
Provision for credit losses | (63) | |
Loans charged-off | (44) | |
Recoveries | 156 | |
Ending balance | 103 | |
Allowance for loan losses: | ||
Loans collectively analyzed | 346 | |
Ending balance: Collectively evaluated for impairment | 103 | |
Loan receivables: | ||
Ending balance | 53,720 | |
Ending balance | 77,259 | |
Ending balance: Individually evaluated for impairment | 1,624 | 1,794 |
Ending balance: Collectively evaluated for impairment | 75,635 | 51,926 |
Residential | Adoption of CECL Standard | ||
Allowance for loan losses: | ||
Beginning balance | 54 | |
Ending balance | 54 | |
Commercial and industrial | ||
Allowance for loan losses: | ||
Beginning balance | 881 | |
Provision for (reversal of) credit losses | 833 | |
Loans charged-off | (836) | |
Recoveries | 111 | |
Ending balance | 606 | 881 |
Allowance for loan losses: | ||
Beginning balance | 881 | 725 |
Provision for credit losses | 493 | |
Loans charged-off | (456) | |
Recoveries | 119 | |
Ending balance | 881 | |
Allowance for loan losses: | ||
Loans individually analyzed | 32 | |
Loans collectively analyzed | 574 | |
Ending balance: Collectively evaluated for impairment | 881 | |
Loan receivables: | ||
Ending balance | 87,982 | |
Ending balance | 88,927 | |
Ending balance: Individually evaluated for impairment | 181 | 183 |
Ending balance: Collectively evaluated for impairment | 88,746 | 87,799 |
Commercial and industrial | Adoption of CECL Standard | ||
Allowance for loan losses: | ||
Beginning balance | (383) | |
Ending balance | (383) | |
Consumer | ||
Allowance for loan losses: | ||
Beginning balance | 60 | |
Provision for (reversal of) credit losses | (14) | |
Loans charged-off | (62) | |
Recoveries | 65 | |
Ending balance | 108 | 60 |
Allowance for loan losses: | ||
Beginning balance | 60 | 47 |
Provision for credit losses | 65 | |
Loans charged-off | (107) | |
Recoveries | 55 | |
Ending balance | 60 | |
Allowance for loan losses: | ||
Loans individually analyzed | 2 | |
Loans collectively analyzed | 106 | |
Ending balance: Individually evaluated for impairment | 2 | |
Ending balance: Collectively evaluated for impairment | 58 | |
Loan receivables: | ||
Ending balance | 20,986 | |
Ending balance | 20,085 | |
Ending balance: Individually evaluated for impairment | 222 | 268 |
Ending balance: Collectively evaluated for impairment | 19,863 | 20,718 |
Consumer | Indirect automobile | ||
Allowance for loan losses: | ||
Loans charged-off | (3,577) | |
Loan receivables: | ||
Ending balance | 457,223 | |
Ending balance | 394,245 | |
Consumer | Adoption of CECL Standard | ||
Allowance for loan losses: | ||
Beginning balance | $ 59 | |
Ending balance | $ 59 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses (Schedule of provision for credit losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Allowance for Credit Losses | |||
Provision for credit losses - loans | $ 1,666 | ||
Provision for credit losses | $ 1,414 | ||
Provision for credit losses - unfunded commitments | $ 221 | 36 | |
Provision for credit losses | $ 1,702 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of changes in the carrying value of goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets | ||
Beginning balance | $ 2,235 | $ 2,235 |
Ending balance | $ 2,235 | $ 2,235 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of changes in the carrying value of customer list and core deposit intangibles) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 334 | $ 433 |
Amortization | (88) | (99) |
Ending balance | 246 | 334 |
Accumulated amortization and impairment | $ 1,031 | $ 943 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets | ||
Impairment loss on goodwill | $ 0 | $ 0 |
Useful life of purchased customer accounts | 13 years | |
Amortization of Intangible Assets | $ 88 | $ 99 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of future amortization expense for amortizable intangible assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets | |||
2024 | $ 79 | ||
2025 | 60 | ||
2026 | 29 | ||
2027 | 21 | ||
2028 | 16 | ||
Thereafter | 41 | ||
Total | $ 246 | $ 334 | $ 433 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of premises and equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 46,480 | $ 46,231 |
Less accumulated depreciation | (28,913) | (27,509) |
Net | 17,567 | 18,722 |
Depreciation | 1,512 | 1,555 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,356 | 3,732 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 27,774 | 27,617 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 14,889 | 14,652 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 461 | $ 230 |
Deposits (Schedule of deposits)
Deposits (Schedule of deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits | ||
Non-interest bearing demand deposits | $ 249,793 | $ 283,563 |
Interest bearing accounts: | ||
NOW | 125,628 | 156,285 |
Savings | 146,172 | 176,916 |
Money market | 190,864 | 296,787 |
Time certificates of deposit | 318,046 | 216,382 |
Total interest bearing accounts | 780,710 | 846,370 |
Total deposits | $ 1,030,503 | $ 1,129,933 |
Deposits (Schedule of contractu
Deposits (Schedule of contractual maturities of time certificates of deposit) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits | ||
Within 1 year | $ 291,212 | |
1 - 2 years | 23,124 | |
2 - 3 years | 1,735 | |
3 - 4 years | 450 | |
4 - 5 years | 1,525 | |
Total | $ 318,046 | $ 216,382 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Line Items] | ||
Total reciprocal deposits | $ 40,009 | $ 10,023 |
Time Deposits, Reciprocal Deposits | 23,357 | 10,023 |
Money market accounts, reciprocal deposits | 16,652 | 0 |
Interest-Bearing Domestic Deposit, Brokered | 0 | 34,041 |
Time certificates of deposit in denominations of $250 or greater | $ 100,063 | $ 38,897 |
Maximum | ||
Deposits [Line Items] | ||
Maturity terms | 3 years | |
Minimum | ||
Deposits [Line Items] | ||
Maturity terms | 1 year |
Debt and FHLB Stock (Schedule o
Debt and FHLB Stock (Schedule of outstanding principal amounts and related terms of FHLBNY borrowings) (Details) - Federal Home Loan Bank of New York ("FHLBNY") $ in Thousands | Dec. 31, 2023 USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 128,064 |
Rate | 5.06% |
Due in one year | $ 80,000 |
Long term | 48,064 |
Fixed short-term on January 8, 2024 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.64% |
Due in one year | $ 10,000 |
Fixed short-term on February 6, 2024 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.68% |
Due in one year | $ 10,000 |
Fixed medium-term on March 21, 2024 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 20,000 |
Rate | 5.18% |
Due in one year | $ 20,000 |
Fixed short-term on April 23, 2024 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.70% |
Due in one year | $ 10,000 |
Fixed short-term on May 17, 2024 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.59% |
Due in one year | $ 10,000 |
Fixed short-term on June 17, 2024 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.60% |
Due in one year | $ 10,000 |
Fixed short-term on July 17, 2024 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 5.59% |
Due in one year | $ 10,000 |
Fixed medium-term on March 20, 2025 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 20,000 |
Rate | 4.47% |
Long term | $ 20,000 |
Fixed medium-term on October 31, 2025 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 722 |
Rate | 4.87% |
Long term | $ 722 |
Fixed medium-term on November 3, 2025 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 5,000 |
Rate | 4.87% |
Long term | $ 5,000 |
Fixed medium-term on December 5, 2025 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 728 |
Rate | 4.34% |
Long term | $ 728 |
Fixed medium-term on September 21, 2026 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 1,233 |
Rate | 5.20% |
Long term | $ 1,233 |
Fixed medium-term on November 9, 2026 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 381 |
Rate | 5.04% |
Long term | $ 381 |
Fixed medium-term on May 2, 2028 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 20,000 |
Rate | 3.88% |
Long term | $ 20,000 |
Debt and FHLB Stock (Narrative)
Debt and FHLB Stock (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) subsidiary $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2005 USD ($) $ / shares shares | Oct. 01, 2021 USD ($) | |
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Number Of Wholly Owned Subsidiaries | subsidiary | 1 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Advances from the Federal Home Loan Bank | $ 128,064 | $ 57,723 | ||
Zions Bank | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Line of credit, maximum borrowing capacity | 10,000 | |||
Line of credit facility, maximum amount outstanding during period | 0 | 0 | ||
Pacific Community Bankers Bank | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 50,000 | |||
Line of credit facility, maximum amount outstanding during period | $ 0 | $ 0 | ||
Subordinated Debt. | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Interest rate, variable rate basis | at three month CME term Secured Overnight Financing Rate (“SOFR”) | three month LIBOR | ||
Effective interest during period | 7.64% | 6.69% | ||
Subordinated debt securities | $ 5,155 | |||
Stated maturity date | May 23, 2035 | |||
Subordinated Debt. | London Interbank Offered Rate L I B O R Extension [Member] | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Interest variable rate | 2% | |||
Subordinated Debt. | SOFR | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Interest variable rate | 2% | |||
Relative spread adjustment | 0.26% | |||
Subordinated Debt. | RSB Capital Trust I | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Trust term | 30 years | |||
Subordinated Debt. | Private placement | RSB Capital Trust I | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Number of preferred securities issued | $ 5,000 | |||
Common stock issued | shares | 155 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | |||
Federal Home Loan Bank of New York ("FHLBNY") | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | $ 656,516 | $ 667,905 | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 228,172 | 195,455 | ||
Impairment Related To Federal Home Loan Stock | 0 | 0 | ||
Advances from the Federal Home Loan Bank | 128,064 | |||
Federal Home Loan Bank of New York ("FHLBNY") | Maturity Overnight [Member] | ||||
Long-Term Debt And Federal Home Loan Bank [Line Items] | ||||
Advances from the Federal Home Loan Bank | $ 0 | $ 0 |
Income Taxes (Schedule of compo
Income Taxes (Schedule of components of the provision for income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current expense: | ||
Federal | $ 1,314 | $ 1,621 |
State | 257 | 264 |
Total current expense | 1,571 | 1,885 |
Deferred expense: | ||
Federal | (352) | 14 |
State | (148) | 4 |
Change in valuation allowance | 148 | (4) |
Total deferred expense | (352) | 14 |
Total provision for income taxes | $ 1,219 | $ 1,899 |
Income Taxes (Schedule of diffe
Income Taxes (Schedule of differences between the provision for income taxes and statutory federal income tax rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||
Provision at statutory rate | $ 1,179 | $ 1,868 |
Tax exempt income | (192) | (145) |
State income taxes, net of federal income tax benefit | 213 | 209 |
Other, net | 19 | (33) |
Total provision for income taxes | $ 1,219 | $ 1,899 |
Provision at statutory rate, Percent | 21% | 21% |
Tax exempt income, percent | (3.42%) | (1.63%) |
State income taxes, net of federal income tax benefit, percent | 3.79% | 2.35% |
Other, net, percent | 0.34% | (0.37%) |
Effective Income Tax Rate Reconciliation, Percent, Total | 21.71% | 21.35% |
Income Taxes (Schedule of tax e
Income Taxes (Schedule of tax effects of temporary differences of the deferred tax assets and deferred tax liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 2,263 | $ 2,145 |
Deferred expenses | 18 | 28 |
Deferred compensation | 1,652 | 1,493 |
Unrecognized pension liability | 910 | 1,063 |
Postretirement liability | 1,002 | 975 |
Unrealized loss on securities | 6,932 | 7,494 |
Other | 658 | 576 |
Gross deferred tax assets | 13,435 | 13,774 |
Deferred tax liabilities: | ||
Prepaid expenses | (515) | (467) |
Prepaid pension | (1,222) | (1,304) |
Deferred loan fees | (154) | (209) |
Depreciation and amortization | (476) | (563) |
Mortgage servicing rights | (534) | (650) |
Gross deferred tax liabilities | (2,901) | (3,193) |
Net deferred tax asset | 10,534 | 10,581 |
Deferred tax valuation allowance | (598) | (450) |
Deferred tax assets, net of allowance | $ 9,936 | $ 10,131 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Taxes | ||
Retained earnings includes contingency reserve for loan losses | $ 1,534 | $ 1,534 |
Reserve balance under deferred income taxes | $ 414 | $ 414 |
Employee Benefits (Employee Sto
Employee Benefits (Employee Stock Ownership Plan (ESOP) Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2024 | Jan. 01, 2023 | Jan. 16, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of share purchase under ESOP | 425,437 | 432,049 | |||
Committed to be allocated | 21,821 | 21,821 | |||
Compensation expense | $ 162 | $ 216 | |||
Employee Stock Ownership Plan (ESOP) | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of share purchase under ESOP | 436,425 | ||||
ESOP share price | $ 10 | ||||
Terms of repurchase share under ESOP | 20 years | ||||
Interest rate | 7.50% | ||||
Balance of ESOP loan | $ 3,612 | 3,741 | |||
Committed to be allocated | 21,821 | ||||
Fair value of unallocated shares | $ 2,635 | 3,181 | |||
Compensation expense | $ 162 | $ 216 | |||
Employee Stock Ownership Plan (ESOP) | Scenario, Plan [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Interest rate | 8.50% |
Employee Benefits (Schedule of
Employee Benefits (Schedule of employee stock ownership plan) (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Employee Benefits | ||
Allocated | 87,286 | 65,463 |
Committed to be allocated | 21,821 | 21,821 |
Unallocated | 327,318 | 349,141 |
Paid out to participants | (10,988) | (4,376) |
Total shares | 425,437 | 432,049 |
Employee Benefits (Share-Based
Employee Benefits (Share-Based Compensation Plan Narrative) (Details) - EIP - USD ($) $ in Thousands | 12 Months Ended | ||
May 26, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 763,743 | ||
Vesting period | 3 years | ||
Maximum term | 10 years | ||
Allocated share-based compensation expense | $ 396 | $ 615 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 545,531 | ||
Percentage of shares of common stock issued | 4.90% | ||
Available for future grants | 103,813 | ||
Aggregate intrinsic value of options outstanding | $ 626 | ||
Unrecognized compensation cost related to the nonvested stock options granted | 0 | ||
Aggregate fair value of options vested | $ 245 | ||
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 218,212 | ||
Percentage of shares of common stock issued | 1.96% | ||
Available for future grants | 49,778 | ||
Unrecognized compensation cost related to the nonvested restricted stock awards granted | $ 0 | ||
Aggregate fair value of restricted stock awards vested | $ 385 |
Employee Benefits (Schedule o_2
Employee Benefits (Schedule of assumptions used and fair value for options granted) (Details) - EIP - Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 6 years |
Expected dividend yield | 0% |
Expected volatility | 25.45% |
Risk-free interest rate | 0.29% |
Fair value of options granted | $ 1.67 |
Employee Benefits (Summary of o
Employee Benefits (Summary of options) (Details) - EIP - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Options outstanding at beginning of year | 437,930 | |
Options Expired | (666) | |
Options Forfeited | (1,001) | |
Options outstanding at end of period | 436,263 | 437,930 |
Options exercisable at end of period | 436,263 | |
Weighted - Average Exercise Price | ||
Weighted - Average Exercise Price, beginning of year | $ 6.62 | |
Weighted - Average Exercise Price, expired | 6.57 | |
Weighted - Average Exercise Price, forfeited | 6.57 | |
Weighted - Average Exercise Price, end of period | 6.62 | $ 6.62 |
Weighted - Average Exercise Price, exercisable | $ 6.62 | |
Weighted-Average Contractual Term | ||
Weighted-Average Contractual Term, outstanding | 6 years 7 months 20 days | 7 years 7 months 28 days |
Weighted-Average Contractual Term, exercisable | 6 years 7 months 20 days |
Employee Benefits (Summary of C
Employee Benefits (Summary of Company's restricted stock activity) (Details) - Restricted stock | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Shares | |
Balance at beginning of period (in shares) | shares | 56,266 |
Vested (in shares) | shares | (55,598) |
Forfeited (in shares) | shares | (668) |
Weighted-Average Grant Date Fair Value per Share | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 6.57 |
Vested (in dollars per share) | $ / shares | 6.57 |
Forfeited (in dollars per share) | $ / shares | $ 6.57 |
Employee Benefits (Schedule o_3
Employee Benefits (Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Employee Benefits | |||
Projected and accumulated benefit obligation | $ (17,868) | $ (17,138) | $ (23,055) |
Plan assets at fair value | 18,062 | 16,906 | $ 22,839 |
Funded status included in accrued expenses and other liabilities | $ 194 | $ (232) |
Employee Benefits (Schedule o_4
Employee Benefits (Schedule of plan's funded status) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Change in benefit projected obligation: | ||
Projected benefit obligation at beginning of year | $ 17,138 | $ 23,055 |
Interest cost | 861 | 634 |
Actuarial gain | 570 | (5,874) |
Benefits paid | (701) | (677) |
Projected benefit obligation at end of year | 17,868 | 17,138 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 16,906 | 22,839 |
Actual return on plan assets | 1,857 | (5,256) |
Contributions | 0 | 0 |
Benefits paid | (701) | (677) |
Fair value of plan assets at end of year | 18,062 | 16,906 |
Funded status | 194 | (232) |
Defined Benefit Pension Plan. | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 16,906 | |
Fair value of plan assets at end of year | $ 18,062 | $ 16,906 |
Employee Benefits (Schedule o_5
Employee Benefits (Schedule of weighted-average assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Benefits | ||
Discount rate | 4.90% | 5.15% |
Rate of compensation increase | ||
Discount rate | 5.15% | 2.80% |
Expected long-term return on plan assets | 6% | 4.75% |
Rate of compensation increase |
Employee Benefits (Schedule o_6
Employee Benefits (Schedule of amounts recognized in accumulated other comprehensive loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Employee Benefits | ||
Net actuarial loss | $ 4,330 | $ 5,060 |
Employee Benefits (Schedule o_7
Employee Benefits (Schedule of net periodic pension (benefit) cost and amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Benefits | ||
Interest cost | $ 861 | $ 634 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense |
Expected return on plan assets | $ (932) | $ (1,007) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense |
Amortization of unrecognized loss | $ 374 | $ 267 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense |
Net periodic (benefit) cost | $ 303 | $ (106) |
Employee Benefits (Schedule o_8
Employee Benefits (Schedule of fair value of pension plan assets, by fair value hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 18,062 | $ 16,906 | $ 22,839 |
Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 18,062 | 16,906 | |
Defined Benefit Pension Plan | Investment in separate accounts fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 12,293 | 11,600 | |
Defined Benefit Pension Plan | Investment in separate accounts equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 5,769 | 5,306 | |
Quoted Prices Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 18,062 | 16,906 | |
Quoted Prices Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | Investment in separate accounts fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 12,293 | 11,600 | |
Quoted Prices Active Markets for Identical Assets (Level 1) | Defined Benefit Pension Plan | Investment in separate accounts equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 5,769 | $ 5,306 |
Employee Benefits (Schedule o_9
Employee Benefits (Schedule of employer contributions and benefit payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Benefits | ||
Benefits paid | $ 701 | $ 677 |
Employee Benefits (Schedule _10
Employee Benefits (Schedule of benefit payments, which reflect expected future service) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Benefits | ||
2024 | $ 930 | |
2025 | 970 | |
2026 | 990 | |
2027 | 1,040 | |
2028 | 1,090 | |
2029 - 2033 | 6,050 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 0 |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) fund | Dec. 31, 2022 USD ($) fund | |
Schedule Of Employee Benefits [Line Items] | ||
Actual return on plan assets | $ 1,857 | $ (5,256) |
Number of investment funds | fund | 9 | |
Number of equity funds | fund | 6 | 7 |
Number of bond funds | fund | 2 | 2 |
Percentage of internal revenue contribution | 25% | |
Percentage of internal revenue service limitations | 6% | |
Employer contribution in defined contribution plan | $ 1,071 | $ 1,152 |
Cash surrender value of life insurance | 30,031 | 29,794 |
Increase in cash surrender value of life insurance | 665 | 640 |
Accrued expenses and other liabilities | 26,521 | 25,302 |
Non-interest expense | 36,429 | 37,422 |
Group Term Replacement Plan | ||
Schedule Of Employee Benefits [Line Items] | ||
Liability related to these postretirement benefits | 1,642 | 1,580 |
Postemployment benefit expense | 61 | 157 |
Other Director and Officer Postretirement Benefits | ||
Schedule Of Employee Benefits [Line Items] | ||
Non-interest expense | 79 | 88 |
Liability related to these postretirement benefits | 2,068 | 2,031 |
Officers | Executive Plan | ||
Schedule Of Employee Benefits [Line Items] | ||
Accrued expenses and other liabilities | 1,962 | 1,823 |
Non-interest expense | 307 | 745 |
Directors' Plan | Directors | ||
Schedule Of Employee Benefits [Line Items] | ||
Accrued expenses and other liabilities | 3,278 | 2,761 |
Non-interest expense | $ 207 | $ 232 |
Minimum | Other Director and Officer Postretirement Benefits | ||
Schedule Of Employee Benefits [Line Items] | ||
Post retirement benefit period | 15 years | |
Minimum | Officers | Executive Plan | ||
Schedule Of Employee Benefits [Line Items] | ||
Terms of services | 1 year | |
Maximum | Other Director and Officer Postretirement Benefits | ||
Schedule Of Employee Benefits [Line Items] | ||
Post retirement benefit period | 20 years | |
Maximum | Officers | Executive Plan | ||
Schedule Of Employee Benefits [Line Items] | ||
Terms of services | 5 years |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) location | Dec. 31, 2022 USD ($) | |
Leases | ||
Number of leased branch offices | location | 7 | |
Number of leased administrative offices | location | 2 | |
Lessee options to extend | true | |
Weighted average remaining life of the lease terms | 10 years 1 month 6 days | 11 years 7 months 6 days |
Weighted average discount rate | 2.43% | 2.58% |
Operating lease costs | $ 717 | $ 898 |
Deferred rent liability | 68 | 105 |
Operating lease ROU | $ 6,307 | $ 6,896 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets. | Other Assets. |
Operating lease liability | $ 6,307 | $ 6,896 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Leases - Future minimum payment
Leases - Future minimum payments for operating leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
2024 | $ 764 | |
2025 | 739 | |
2026 | 720 | |
2027 | 676 | |
2028 | 677 | |
Thereafter | 3,717 | |
Total future minimum lease payments | 7,293 | |
Amounts representing interest | (986) | |
Present value of net future minimum lease payments | $ 6,307 | $ 6,896 |
Commitments and Contingencies_2
Commitments and Contingencies (Schedule of contract amounts represent off-balance sheet credit risk) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk, asset | $ 134,623 | $ 126,216 |
Future loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk, asset | 5,318 | 3,815 |
Construction | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk, asset | 42,482 | 30,274 |
Home equity | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk, asset | 10,727 | 9,561 |
Undisbursed commercial and other line of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk, asset | 69,258 | 77,719 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk, asset | 4,965 | 4,571 |
Loans sold with recourse | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk, asset | $ 1,873 | $ 276 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of unfunded commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2023 | Dec. 31, 2023 | |
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision for credit losses | $ 221 | $ 36 |
Ending balance | 257 | |
Commercial real estate | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision for credit losses | 23 | |
Ending balance | 172 | |
Commercial and industrial | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision for credit losses | 7 | |
Ending balance | 72 | |
Consumer | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision for credit losses | 6 | |
Ending balance | 13 | |
Cumulative effect of change in accounting principle | Accounting Standards Update 2016-13 | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Beginning balance | 221 | 221 |
Cumulative effect of change in accounting principle | Accounting Standards Update 2016-13 | Commercial real estate | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Beginning balance | 149 | 149 |
Cumulative effect of change in accounting principle | Accounting Standards Update 2016-13 | Commercial and industrial | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Beginning balance | 65 | 65 |
Cumulative effect of change in accounting principle | Accounting Standards Update 2016-13 | Consumer | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Beginning balance | $ 7 | $ 7 |
Derivatives (Schedule of inform
Derivatives (Schedule of information regarding derivatives) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) item contract | Dec. 31, 2022 USD ($) contract item | |
Derivative [Line Items] | ||
Notional amount | $ 65,420 | $ 26,541 |
Fair value | $ 5,343 | $ 3,578 |
Weighted average pay rates | 5.06% | 3.69% |
Weighted average receive rate | 7.49% | 6.30% |
Weighted average maturity (in years) | 8 years 10 months 17 days | 8 years 9 months 14 days |
Number of Contracts | contract | 14 | 7 |
Accrued interest receivable | $ 4,616 | $ 4,255 |
Interest rate swap | Other assets | ||
Derivative [Line Items] | ||
Accrued interest receivable | 132 | 56 |
Interest rate swap | Other liabilities | ||
Derivative [Line Items] | ||
Accrued interest payable | 132 | 56 |
Interest Rate Swap Commencing Subsequent To Reporting Period | ||
Derivative [Line Items] | ||
Notional amount | 35,326 | 30,211 |
Fair value | $ 935 | $ 970 |
Weighted average pay rates | 4.97% | 4.95% |
Number of Contracts | item | 5 | 5 |
Regulatory Matters (Schedule of
Regulatory Matters (Schedule of actual capital amounts and ratios) (Details) - Rhinebeck Bank $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual Amount | $ 144,675 | $ 139,257 |
Total capital (to risk-weighted assets) Actual Ratio | 0.1270 | 0.1225 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 91,154 | $ 90,980 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 113,942 | $ 113,725 |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.1000 | 0.1000 |
Tier 1 capital (to risk-weighted assets) Actual Amount | $ 136,295 | $ 131,314 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 0.1196 | 0.1155 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 68,365 | $ 68,235 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 91,154 | $ 90,980 |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.0800 | 0.0800 |
Common equity tier one capital (to risk weighted assets) Actual Amount | $ 136,295 | $ 131,314 |
Common equity tier one capital (to risk weighted assets) Actual Ratio | 0.1196 | 0.1155 |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 51,274 | $ 51,176 |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Ratio | 0.045% | 0.045% |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 74,062 | $ 73,921 |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.065% | 0.065% |
Tier 1 capital (to average assets) Actual Amount | $ 136,295 | $ 131,314 |
Tier 1 capital (to average assets) Actual Ratio | 0.1010 | 0.0975 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Amount | $ 53,990 | $ 53,868 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 67,488 | $ 67,335 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.0500 | 0.0500 |
Fair Value (Schedule of assets
Fair Value (Schedule of assets carried at fair value on a recurring basis) (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 198,263 | $ 228,207 |
Total liabilities | 6,278 | 4,548 |
Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 191,985 | 223,659 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 24,006 | 37,857 |
U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 128,580 | 144,534 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 23,158 | 22,449 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 2,903 | 4,786 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 12,640 | 13,217 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 698 | 816 |
Loan level interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 6,278 | 4,548 |
Total liabilities | 6,278 | 4,548 |
Quoted Prices Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 24,006 | 37,857 |
Quoted Prices Active Markets for Identical Assets (Level 1) | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 24,006 | 37,857 |
Quoted Prices Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 24,006 | 37,857 |
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 174,142 | 190,220 |
Total liabilities | 6,278 | 4,548 |
Significant Observable Inputs (Level 2) | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 167,864 | 185,672 |
Significant Observable Inputs (Level 2) | U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 128,580 | 144,534 |
Significant Observable Inputs (Level 2) | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 23,158 | 22,449 |
Significant Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 2,788 | 4,656 |
Significant Observable Inputs (Level 2) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 12,640 | 13,217 |
Significant Observable Inputs (Level 2) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 698 | 816 |
Significant Observable Inputs (Level 2) | Loan level interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 6,278 | 4,548 |
Total liabilities | 6,278 | 4,548 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 115 | 130 |
Significant Unobservable Inputs (Level 3) | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 115 | 130 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 115 | $ 130 |
Fair Value (Schedule of asset_2
Fair Value (Schedule of assets carried at fair value and measured at fair value on a nonrecurring basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, recorded investments | $ 428 | |
Ending balance: Individually evaluated for impairment | 109 | |
Related Allowance | 109 | |
Nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | $ 783 | 319 |
Nonrecurring basis | Impaired loans, with specific reserves | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 758 | 319 |
Impaired loans, recorded investments | 428 | |
Ending balance: Individually evaluated for impairment | 215 | |
Impaired loans, recorded investments | 973 | |
Related Allowance | 109 | |
Nonrecurring basis | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 25 | |
Nonrecurring basis | Quoted Prices Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Nonrecurring basis | Quoted Prices Active Markets for Identical Assets (Level 1) | Impaired loans, with specific reserves | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Nonrecurring basis | Quoted Prices Active Markets for Identical Assets (Level 1) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | |
Nonrecurring basis | Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Nonrecurring basis | Significant Observable Inputs (Level 2) | Impaired loans, with specific reserves | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Nonrecurring basis | Significant Observable Inputs (Level 2) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 783 | 319 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Impaired loans, with specific reserves | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 758 | $ 319 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | $ 25 |
Fair Value (Schedule of additio
Fair Value (Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis) (Details) - Nonrecurring basis $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 783 | $ 319 |
Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | 25 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 783 | $ 319 |
Impaired Loans, Valuation Technique [Extensible List] | Appraisal of collateral | Appraisal of collateral |
Other Real Estate Owned, Valuation Technique [Extensible List] | Appraisal of collateral | |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 758 | $ 319 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held at fair value | $ 25 | |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Liquidation expenses | Minimum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Liquidation expenses | Minimum | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input (in percent) | 0 | |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Liquidation expenses | Maximum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0.08 | 0.08 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Liquidation expenses | Maximum | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input (in percent) | 0.08 | |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Appraisal adjustments | Minimum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Appraisal adjustments | Minimum | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input (in percent) | 0 | |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Appraisal adjustments | Maximum | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, unobservable input (in percent) | 0.20 | 0.20 |
Significant Unobservable Inputs (Level 3) | Appraisal of collateral | Appraisal adjustments | Maximum | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, unobservable input (in percent) | 0.20 |
Fair Value (Schedule of carryin
Fair Value (Schedule of carrying value and fair values of the financial instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Quoted Prices Active Markets for Identical Assets (Level 1) | Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | $ 22,129 | $ 31,384 |
Available for sale securities | 24,006 | 37,857 |
Quoted Prices Active Markets for Identical Assets (Level 1) | Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 22,129 | 31,384 |
Available for sale securities | 24,006 | 37,857 |
Significant Observable Inputs (Level 2) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities | 167,864 | 185,672 |
Loan level interest rate swaps | 6,278 | 4,548 |
FHLB stock | 6,514 | 3,258 |
Accrued interest receivable | 4,616 | 4,255 |
Financial Liabilities: | ||
Deposits | 1,030,503 | 1,129,933 |
Mortgagors escrow accounts | 9,274 | 9,732 |
FHLB advances | 128,064 | 57,723 |
Subordinated debt | 5,155 | 5,155 |
Loan level interest rate swaps | 6,278 | 4,548 |
Accrued interest payable | 1,488 | 774 |
Significant Observable Inputs (Level 2) | Fair Value | ||
Financial Assets: | ||
Available for sale securities | 167,864 | 185,672 |
Loan level interest rate swaps | 6,278 | 4,548 |
FHLB stock | 6,514 | 3,258 |
Accrued interest receivable | 4,616 | 4,255 |
Financial Liabilities: | ||
Deposits | 948,140 | 1,001,455 |
Mortgagors escrow accounts | 9,274 | 9,723 |
FHLB advances | 127,592 | 57,739 |
Subordinated debt | 5,155 | 5,155 |
Loan level interest rate swaps | 6,278 | 4,548 |
Accrued interest payable | 1,488 | 774 |
Significant Unobservable Inputs (Level 3) | Carrying Value | ||
Financial Assets: | ||
Available for sale securities | 115 | 130 |
Loans, net | 1,008,851 | 994,368 |
Mortgage servicing rights | 1,977 | 2,409 |
Significant Unobservable Inputs (Level 3) | Fair Value | ||
Financial Assets: | ||
Available for sale securities | 115 | 130 |
Loans, net | 979,037 | 953,432 |
Mortgage servicing rights | $ 4,720 | $ 5,211 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of accumulated other comprehensive loss activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 108,132 | $ 125,969 |
Balance | $ 113,685 | $ 108,132 |
Income tax rate | 21% | 21% |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ (32,189) | $ (6,635) |
Other comprehensive gain (loss) before reclassifications | 2,396 | (25,899) |
Amounts reclassified from accumulated other comprehensive loss | 295 | 345 |
Period change | 2,691 | (25,554) |
Balance | (29,498) | (32,189) |
Defined Benefit Pension Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (3,998) | (3,902) |
Other comprehensive gain (loss) before reclassifications | 282 | (307) |
Amounts reclassified from accumulated other comprehensive loss | 295 | 211 |
Period change | 577 | (96) |
Balance | (3,421) | (3,998) |
Unrealized (losses) gains on available for sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (28,191) | (2,733) |
Other comprehensive gain (loss) before reclassifications | 2,114 | (25,592) |
Amounts reclassified from accumulated other comprehensive loss | 134 | |
Period change | 2,114 | (25,458) |
Balance | $ (26,077) | $ (28,191) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Schedule of accumulated other comprehensive loss components) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Provision for income taxes | $ 1,219 | $ 1,899 |
Net Income (Loss) | 4,395 | 6,997 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Income (Loss) | (295) | (345) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest [Member] | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net securities losses reclassified into earnings | (170) | |
Provision for income taxes | 36 | |
Net Income (Loss) | (134) | |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of net loss and prior service costs | (374) | (267) |
Provision for income taxes | 79 | 56 |
Net Income (Loss) | $ (295) | $ (211) |
Earnings Per Share - EPS Year O
Earnings Per Share - EPS Year Over Year (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income applicable to common stock | $ 4,395 | $ 6,997 |
Average number of common shares outstanding | 11,127,247 | 11,199,387 |
Less: Average unearned ESOP shares | 338,238 | 360,052 |
Average number of common shares outstanding used to calculate basic earnings per common share | 10,789,009 | 10,839,335 |
Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share | 25,652 | 49,650 |
Additional common stock equivalents (stock options) used to calculate diluted earnings per share | 40,891 | 115,612 |
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share | 10,855,552 | 11,004,597 |
Basic EPS | ||
Basic (in dollars per share) | $ 0.41 | $ 0.65 |
Diluted (in dollars per share) | $ 0.40 | $ 0.64 |
Employee Stock Option [Member] | ||
Basic EPS | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 15,000 | 0 |
Average weighted price (in dollars per share) | $ 7.90 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 4,395 | $ 6,997 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |