Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39090 | |
Entity Registrant Name | Provident Bancorp, Inc | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 84-4132422 | |
Entity Address, Address Line One | 5 Market Street | |
Entity Address, City or Town | Amesbury | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01913 | |
City Area Code | 978 | |
Local Phone Number | 834-8555 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | PVBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,472,310 | |
Entity Central Index Key | 0001778784 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 12,327 | $ 11,990 |
Short-term investments | 25,851 | 47,668 |
Cash and cash equivalents | 38,178 | 59,658 |
Debt securities available-for-sale (at fair value) | 36,992 | 41,790 |
Federal Home Loan Bank stock, at cost | 1,050 | 1,416 |
Loans, net of allowance for loan losses of $17,158 and $13,844 as of June 30, 2020 and December 31, 2019, respectively | 1,265,091 | 959,286 |
Bank owned life insurance | 36,225 | 26,925 |
Premises and equipment, net | 14,771 | 14,728 |
Accrued interest receivable | 4,756 | 2,854 |
Right-of-use assets | 4,336 | 3,713 |
Other assets | 13,413 | 11,418 |
Total assets | 1,414,812 | 1,121,788 |
Deposits: | ||
Noninterest-bearing | 361,022 | 222,088 |
Interest-bearing | 759,463 | 627,817 |
Total deposits | 1,120,485 | 849,905 |
Borrowings | 42,021 | 24,998 |
Operating lease liabilities | 4,534 | 3,877 |
Other liabilities | 11,450 | 12,075 |
Total liabilities | 1,178,490 | 890,855 |
Shareholders' equity: | ||
Preferred stock; authorized 50,000 shares: no shares issued and outstanding | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 19,472,310 and 19,473,818 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 195 | 195 |
Additional paid-in capital | 146,778 | 146,174 |
Retained earnings | 98,057 | 94,159 |
Accumulated other comprehensive income | 1,002 | 458 |
Unearned compensation - ESOP | (9,710) | (10,053) |
Total shareholders' equity | 236,322 | 230,933 |
Total liabilities and shareholders' equity | $ 1,414,812 | $ 1,121,788 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Loans, net of allowance for loan losses | $ 17,158 | $ 13,844 |
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,472,310 | 19,473,818 |
Common stock, shares outstanding | 19,472,310 | 19,473,818 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Interest and dividend income: | |||||
Interest and fees on loans | $ 14,391 | $ 12,270 | $ 28,151 | $ 23,969 | |
Interest and dividends on securities | 259 | 420 | 517 | 824 | |
Interest on short-term investments | 4 | 41 | 75 | 67 | |
Total interest and dividend income | 14,654 | 12,731 | 28,743 | 24,860 | |
Interest expense: | |||||
Interest on deposits | 1,443 | 1,531 | 3,089 | 2,968 | |
Interest on borrowings | 176 | 599 | 547 | 1,133 | |
Total interest expense | 1,619 | 2,130 | 3,636 | 4,101 | |
Net interest and dividend income | 13,035 | 10,601 | 25,107 | 20,759 | |
Provision for loan losses | 872 | 1,354 | 3,971 | 2,816 | |
Net interest and dividend income after provision for loan losses | 12,163 | 9,247 | 21,136 | 17,943 | |
Noninterest income: | |||||
Gain on sale of securities, net | 113 | ||||
Bank owned life insurance income | 171 | 173 | 350 | 350 | |
Other income | 8 | 21 | 27 | 36 | |
Total noninterest income | 704 | 1,056 | 1,714 | 2,102 | |
Noninterest expense: | |||||
Salaries and employee benefits | 5,799 | 4,274 | 11,201 | 8,568 | |
Occupancy expense | 429 | 550 | 870 | 1,194 | |
Equipment expense | 144 | 109 | 281 | 215 | |
Data processing | 195 | 150 | 396 | 354 | |
Marketing expense | 71 | 69 | 135 | 124 | |
Professional fees | 367 | 496 | 753 | 918 | |
Directors' compensation | 171 | 188 | 365 | 369 | |
Software depreciation and implemenation | 238 | 182 | 438 | 345 | |
Write down of note receivable | 500 | ||||
Other | 947 | 865 | 1,728 | 1,542 | |
Total noninterest expense | 8,361 | 6,883 | 16,667 | 13,629 | |
Income before income tax expense | 4,506 | 3,420 | 6,183 | 6,416 | |
Income tax expense | 1,256 | 889 | 1,702 | 1,667 | |
Net income | $ 3,250 | $ 2,531 | $ 4,481 | $ 4,749 | |
Earnings per share: | |||||
Basic | [1] | $ 0.18 | $ 0.13 | $ 0.25 | $ 0.25 |
Diluted | [1] | $ 0.18 | $ 0.13 | $ 0.25 | $ 0.25 |
Weighted Average Shares: | |||||
Basic | [1] | 18,150,106 | 18,758,735 | 18,131,421 | 18,744,781 |
Diluted | [1] | 18,179,858 | 18,895,918 | 18,197,646 | 18,856,903 |
Customer Service Fees On Deposit Accounts [Member] | |||||
Noninterest income: | |||||
Fees and commission | $ 264 | $ 356 | $ 616 | $ 685 | |
Service Charges And Fees - Other [Member] | |||||
Noninterest income: | |||||
Fees and commission | $ 261 | $ 506 | $ 721 | $ 918 | |
[1] | Amounts related to periods prior to the date of the Conversion (October 16, 2019) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion ( 2.0212 -to-one). |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENTS OF INCOME [Abstract] | ||||
Exchange ratio | 2.0212 | 2.0212 | 2.0212 | 2.0212 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 3,250 | $ 2,531 | $ 4,481 | $ 4,749 |
Other comprehensive income: | ||||
Unrealized holding gains arising during the period on debt securities available-for-sale | 721 | 760 | 731 | 975 |
Reclassification adjustment for realized gains in net income | (113) | |||
Unrealized gain | 721 | 760 | 731 | 862 |
Income tax effect | (160) | (190) | (187) | (223) |
Total other comprehensive income | 561 | 570 | 544 | 639 |
Comprehensive income | $ 3,811 | $ 3,101 | $ 5,025 | $ 5,388 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Unearned Compensation ESOP [Member] | Treasury Stock [Member] | Total | |
Balance at Dec. 31, 2018 | $ 45,895 | $ 83,351 | $ (255) | $ (2,619) | $ (788) | $ 125,584 | ||
Balance (in shares) at Dec. 31, 2018 | [1] | 19,455,503 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 4,749 | 4,749 | ||||||
Other comprehensive income | 639 | 639 | ||||||
Stock-based compensation expense, net of forfeitures | 510 | 510 | ||||||
Restricted stock award forfeiture (in shares) | [1] | (7,876) | ||||||
ESOP shares earned | 162 | 119 | 281 | |||||
Balance at Jun. 30, 2019 | 46,567 | 88,100 | 384 | (2,500) | (788) | 131,763 | ||
Balance (in shares) at Jun. 30, 2019 | [1] | 19,447,627 | ||||||
Balance at Mar. 31, 2019 | 46,236 | 85,569 | (186) | (2,559) | (788) | 128,272 | ||
Balance (in shares) at Mar. 31, 2019 | [1] | 19,447,627 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2,531 | 2,531 | ||||||
Other comprehensive income | 570 | 570 | ||||||
Stock-based compensation expense, net of forfeitures | 245 | 245 | ||||||
ESOP shares earned | 86 | 59 | 145 | |||||
Balance at Jun. 30, 2019 | 46,567 | 88,100 | 384 | (2,500) | $ (788) | 131,763 | ||
Balance (in shares) at Jun. 30, 2019 | [1] | 19,447,627 | ||||||
Balance at Dec. 31, 2019 | $ 195 | 146,174 | 94,159 | 458 | (10,053) | 230,933 | ||
Balance (in shares) at Dec. 31, 2019 | [1] | 19,473,818 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 4,481 | 4,481 | ||||||
Dividends declared | (583) | (583) | ||||||
Other comprehensive income | 544 | 544 | ||||||
Stock-based compensation expense, net of forfeitures | 503 | 503 | ||||||
Restricted stock award grants net of forfeitures (in shares) | [1] | (1,508) | ||||||
ESOP shares earned | 101 | 343 | 444 | |||||
Balance at Jun. 30, 2020 | $ 195 | 146,778 | 98,057 | 1,002 | (9,710) | 236,322 | ||
Balance (in shares) at Jun. 30, 2020 | [1] | 19,472,310 | ||||||
Balance at Mar. 31, 2020 | $ 195 | 146,500 | 95,390 | 441 | (9,868) | 232,658 | ||
Balance (in shares) at Mar. 31, 2020 | [1] | 19,476,248 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 3,250 | 3,250 | ||||||
Dividends declared | (583) | (583) | ||||||
Other comprehensive income | 561 | 561 | ||||||
Stock-based compensation expense, net of forfeitures | 242 | 242 | ||||||
Restricted stock award forfeiture (in shares) | [1] | (3,938) | ||||||
ESOP shares earned | 36 | 158 | 194 | |||||
Balance at Jun. 30, 2020 | $ 195 | $ 146,778 | $ 98,057 | $ 1,002 | $ (9,710) | $ 236,322 | ||
Balance (in shares) at Jun. 30, 2020 | [1] | 19,472,310 | ||||||
[1] | Amounts related to periods prior to the date of the Conversion (October 16, 2019) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion ( 2.0212 -to-one). |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020$ / shares | Jun. 30, 2020$ / shares | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Abstract] | ||
Dividends declared, per share | $ 0.03 | $ 0.03 |
Exchange ratio | 2.0212 | 2.0212 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Cash flows from operating activities: | |||
Net income | $ 4,481 | $ 4,749 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of securities premiums, net of accretion | 144 | 97 | |
ESOP expense | 444 | 281 | |
Gain on sale of securities, net | (113) | ||
Change in deferred loan fees, net | 3,198 | 357 | |
Provision for loan losses | 3,971 | 2,816 | |
Depreciation and amortization | 538 | 768 | |
Gain on disposals of premises and equipment | (9) | ||
Increase in accrued interest receivable | (1,652) | (588) | |
Deferred tax benefit | (1,977) | (185) | |
Share-based compensation expense | 503 | 510 | |
Bank owned life insurance income | (350) | (350) | |
Principal repayments of operating lease obligations | (36) | (36) | |
Increase in other assets | (186) | (1,804) | |
Decrease in other liabilities | (625) | (2,129) | |
Net cash provided by operating activities | 8,453 | 4,364 | |
Cash flows from investing activities: | |||
Purchases of debt securities available-for-sale | (13,729) | ||
Proceeds from sales of debt securities available-for-sale | 13,565 | ||
Proceeds from pay downs, maturities and calls of debt securities available-for-sale | 5,385 | 3,855 | |
Redemption (purchase) of Federal Home Loan Bank stock | 366 | (1,186) | |
Loan originations and purchases, net of paydowns | (246,302) | (52,771) | |
Cash paid for warehouse asset purchase, net | [1] | (66,962) | |
Additions to premises and equipment | (490) | (3,698) | |
Proceeds from the sale of equipment | 85 | ||
Additions to other real estate owned | (64) | ||
Purchase of bank owned life insurance | (8,950) | ||
Net cash used in investing activities | (316,953) | (53,943) | |
Cash flows from financing activities: | |||
Net increase in noninterest-bearing accounts | 138,934 | 24,204 | |
Net increase in interest-bearing accounts | 131,646 | 11,102 | |
Cash dividends paid on common stock | (583) | ||
Net change in short-term borrowings | 25,023 | 13,941 | |
Payments made on Federal Home Loan Bank long-term advances | (8,000) | ||
Net cash provided by financing activities | 287,020 | 49,247 | |
Net decrease in cash and cash equivalents | (21,480) | (332) | |
Cash and cash equivalents at beginning of period | 59,658 | 28,613 | |
Cash and cash equivalents at end of period | 38,178 | 28,281 | |
Supplemental disclosures: | |||
Interest paid | 3,636 | 4,126 | |
Income taxes paid | 3,380 | 2,391 | |
Reclassification of premises and equipment to other assets | 3 | ||
Recognition of right-of-use assets | 693 | 3,836 | |
Recognition of operating lease liabilities | $ 693 | 3,938 | |
Reclassification of accrued rent from other liabilities to premises and equipment | $ 102 | ||
[1] | See Note 15 for information regarding the warehouse asset purchase. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited financial statements of Provident Bancorp, Inc., a Maryland corporation (the “Company”), were prepared in accordance with the instructions for Form 10-Q and with Regulation S-X and do not include information or footnotes necessary for a complete presentation of the financial condition, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, in the opinion of management, all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three and six month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for future periods, including the entire fiscal year. Certain amounts in 2019 have been reclassified to be consistent with the 2020 consolidated financial statement presentation, and had no effect on the net income reported in the consolidated statement of income. These financial statements should be read in conjunction with the annual financial statements and notes thereto included in the annual report on Form 10-K the Company filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2020. The consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, The Provident Bank, which also operates under the name BankProv (the “Bank”), and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All significant inter-company balances and transactions have been eliminated in consolidation. |
Corporate Structure
Corporate Structure | 6 Months Ended |
Jun. 30, 2020 | |
Corporate Structure [Abstract] | |
Corporate Structure | (2) Corporate Structure The Company is a Maryland corporation that was incorporated in June 2019 to be the successor corporation to Provident Bancorp, Inc. (“Old Provident”), a Massachusetts corporation, upon completion of the second-step mutual-to-stock conversion (the “Conversion”) of Provident Bancorp (the “MHC”), the top tier mutual holding company of Old Provident. Old Provident was the former mid-tier holding company for the Bank. Prior to completion of the Conversion, approximately 52 % of the shares of common stock of Old Provident were owned by the MHC. In conjunction with the Conversion, the MHC was merged into the Company (and ceased to exist) and the Company became its successor under the name Provident Bancorp, Inc. The Conversion was completed on October 16, 2019. The Company raised gross proceeds of $ 102.1 million by selling 10,212,397 shares of common stock at $ 10.00 per share in the second-step stock offering. The Company utilized $ 8.2 million of the proceeds to lend to its Employee Stock Ownership Plan (“ESOP”) for the acquisition of an additional 816,992 shares at $ 10.00 per share. Expenses incurred related to the offering were $ 2.4 million, and have been recorded against offering proceeds. The Company invested $ 45.8 million of the net proceeds it received from the sale into the Bank’s operations and has retained the remaining amount for general corporate purposes. Concurrent with the completion of the stock offering, each share of Old Provident common stock owned by public stockholders (stockholders other than the MHC) was exchanged for 2.0212 shares of Company common stock. A total of 19,484,343 shares of common stock were outstanding following the completion of the stock offering. The Bank, headquartered in Amesbury, Massachusetts operates its business from seven banking offices located in Amesbury and Newburyport, Massachusetts and Portsmouth, Exeter, Bedford, and Seabrook, New Hampshire. The Bank also has two loan production offices in Boston, Massachusetts and Ponte Vedra, Florida. The Bank provides a variety of financial services to small businesses and individuals. Its primary deposit products are checking, savings and term certificate accounts and its primary lending products are commercial mortgages and commercial loans. |
COVID-19
COVID-19 | 6 Months Ended |
Jun. 30, 2020 | |
COVID-19 [Abstract] | |
COVID-19 | (3) COVID-19 The outbreak of COVID-19 has adversely impacted a broad range of industries in which the Company’s customers operate and could impair their ability to fulfill their financial obligations. The World Health Organization declared COVID-19 to be a global pandemic indicating that almost all public commerce and related business activities were to be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The spread of the outbreak has caused significant disruption in the U.S. economy and has disrupted banking and other financial activity in the areas in which the Company operates. The U.S. government and regulatory agencies have taken several actions to provide support to the U.S. economy. Most notably, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law on March 27, 2020 as a $2 trillion legislative package. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The CARES Act also includes extensive emergency funding for hospitals and providers. In addition to the general impact of the COVID-19 pandemic, certain provisions of the CARES Act, as well as other recent legislative and regulatory relief efforts, are expected to have a material impact on the Company’s operations. Also, the actions of the Board of Governors of the Federal Reserve System (the “FRB”) to combat the economic contraction caused by the COVID-19 pandemic, including the reduction of the target federal funds rate and quantitative easing programs, could, if prolonged, adversely affect the Company’s net interest income and margins, and profitability. Federal banking agencies issued guidance encouraging financial institutions to work with borrowers that may be unable to meet contractual obligations due to the effects of COVID-19. In addition, section 4013 of the CARES Act states, “banks may elect not to categorize loan modifications as TDRs [troubled debt restructurings] if they are (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020.” The Company did not classify any modifications related to COVID-19 which met other CARES Act conditions as TDRs. The Company implemented its business continuity and pandemic plans, which include remote working arrangements for the majority of its workforce. While there has been no material impact to the Company’s employees as of this report date, if COVID-19 escalates further it could also potentially create business continuity issues. The Company does not currently anticipate significant challenges to its ability to maintain systems and controls in light of the measures the Company has taken to prevent the spread of COVID-19. While it is not possible to know the full extent of these impacts as of the date of this filing, detailed below are potentially material items of which we are aware. Financial position and results of operations The Company’s fee income will be reduced due to COVID-19. In keeping with the guidance from regulators, the Company is actively working with COVID-19 affected customers to waive fees from a variety of sources, such as, but not limited to, insufficient funds, account maintenance, minimum balance, and ATM fees. These reductions in fees are thought to be temporary in conjunction with the length of the expected COVID-19 related economic crisis. At this time, the Company is unable to project the materiality of such an impact. The Company’s interest income could be reduced due to COVID-19. In keeping with the guidance from the regulators, the Company is actively working with COVID-19 affected borrowers to defer payments, interest and fees. While interest and fees will accrue to income through normal GAAP accounting, should eventual credit losses on these deferred payments emerge, interest income and fees accrued would need to be reversed. As a result, interest income in future periods could be negatively impacted. Allowance for loan losses Continued uncertainty regarding the severity and duration of the COVID-19 pandemic and related economic effects will continue to affect the accounting for credit losses, which could cause the provision for loan losses to increase. It also is possible that asset quality could worsen, expenses associated with collection efforts could increase and loan charge-offs could increase. The Company is actively participating in the Small Business Administration’s (“SBA’s”) Paycheck Protection Program (“PPP”), providing loans to small businesses negatively impacted by the COVID-19 pandemic. PPP loans are fully guaranteed by the U.S. government; if that should change, the Company could be required to increase its allowance for loan losses through an additional provision for loan losses charged to earnings. In accordance with guidance issued by federal banking agencies, the Company is actively working with borrowers that may be unable to meet contractual obligations due to the effects of COVID-19. As of June 30, 2020, the Company modified 287 loans totaling $ 264.2 million or 20.6 % of the total loan portfolio. In order to mitigate the risk associated with these modifications the Company has incorporated covenants that require borrowers to submit quarterly financial statements, prohibits them from distributing funds to any owner or stockholder (with the exception of payroll) and also prohibits them from making any payments on debt owed to subordinated debt holders for the duration of their modification. If borrowers are unable return to their normal payment plan following their modification period, the Company could be required to increase its allowance for loan losses through an additional provision for loan losses charged to earnings. Valuation Valuation and fair value measurement challenges may occur. For example, COVID-19 could cause further and sustained decline in the financial markets or the occurrence of what management would deem a valuation triggering event that could result in an impairment charge to earnings, such as our investment securities. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | (4) Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” The ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace the current “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. On October 16, 2019, FASB approved a delay on the implementation until January 2023 for smaller reporting companies as defined by the SEC. The amendments in this update will be effective for the Company on January 1, 2023. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact of its pending adoption of this guidance on the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The Company adopted the provision of ASU 2018-13 effective January 1, 2020 and the adoption did not have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes (“ASU 2019-12”) . This ASU simplifies the accounting for income taxes and is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Certain provisions under ASU 2019-12 require prospective application, some require modified retrospective application through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, while other provisions require retrospective application to all periods presented in the consolidated financial statements upon adoption. The adoption of ASU 2019-12 is not expected to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , to ease the potential burden in accounting for recognizing the effects of reference rate reform on financial reporting. Such challenges include the accounting and operational implications for contract modifications and hedge accounting. The provisions in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to loan and lease agreements, contracts, hedging relationships, and other transactions affected by reference rate reform. These provisions apply to contract modifications that reference LIBOR or another reference rate expected to be discounted because of reference rate reform. Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification would be considered "minor" so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company is currently evaluating the effect that this ASU will have on the Company’s consolidated financial statements. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investment Securities [Abstract] | |
Investment Securities | (5) Investment Securities The following summarizes the amortized cost of investment securities classified as available-for-sale and their approximate fair values at June 30, 2020 and December 31, 2019: Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value June 30, 2020 State and municipal securities $ 10,519 $ 582 $ — $ 11,101 Asset-backed securities 4,906 220 — 5,126 Government mortgage-backed securities 20,241 536 12 20,765 Total debt securities available-for-sale $ 35,666 $ 1,338 $ 12 $ 36,992 December 31, 2019 State and municipal securities $ 10,808 $ 398 $ — $ 11,206 Asset-backed securities 5,433 71 4 5,500 Government mortgage-backed securities 24,954 197 67 25,084 Total debt securities available-for-sale $ 41,195 $ 666 $ 71 $ 41,790 The scheduled maturities of debt securities at June 30, 2020 are summarized in the table below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary. Available-for-Sale Amortized Fair (In thousands) Cost Value Due after one year through five years $ 1,204 $ 1,229 Due after five years through ten years 912 917 Due after ten years 8,403 8,955 Government mortgage-backed securities 20,241 20,765 Asset-backed securities 4,906 5,126 $ 35,666 $ 36,992 There were no realized gains or losses on sales and calls during the six months ended June 30, 2020. During the six months ended June 30, 2019, gross realized gains on sales and calls were $ 216,000 , and gross realized losses were $ 103,000 . Securities with carrying amounts of $ 25.9 million and $ 30.6 million were pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank at June 30, 2020 and December 31, 2019, respectively. Other-than-temporary impairment assessment: Management assesses whether the decline in fair value of investment securities is other-than-temporary on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates impairments in value both qualitatively and quantitatively to assess whether they are other-than-temporary. The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or longer are as follows at June 30, 2020 and December 31, 2019: Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses June 30, 2020 Temporarily impaired securities: Government mortgage-backed securities $ 402 $ 3 $ 509 $ 9 $ 911 $ 12 Total temporarily impaired debt securities $ 402 $ 3 $ 509 $ 9 $ 911 $ 12 December 31, 2019 Temporarily impaired securities: Asset-backed securities $ 606 $ 4 $ — $ — $ 606 $ 4 Government mortgage-backed securities 5,207 8 5,418 59 10,625 67 Total temporarily impaired debt securities $ 5,813 $ 12 $ 5,418 $ 59 $ 11,231 $ 71 Government mortgage-backed securities : The gross unrealized losses on government mortgage-backed securities were primarily attributable to relative changes in interest rates since the time of purchase. Management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at June 30, 2020. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2020 | |
Loans [Abstract] | |
Loans | (6) Loans A summary of loans is as follows: At At June 30, December 31, 2020 2019 (Dollars in thousands) Amount Amount Commercial real estate $ 421,836 $ 418,356 Commercial 760,828 451,791 Residential real estate 39,401 45,695 Construction and land development 57,087 46,763 Consumer 8,507 12,737 1,287,659 975,342 Allowance for loan losses ( 17,158 ) ( 13,844 ) Deferred loan fees, net ( 5,410 ) ( 2,212 ) Net loans $ 1,265,091 $ 959,286 The following tables set forth information regarding the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2020 and 2019: For the three months ended June 30, (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total Allowance for loan losses: Balance at March 31, 2020 $ 6,499 $ 8,057 $ 213 $ 789 $ 1,049 $ 67 $ 16,674 Charge-offs — ( 142 ) — — ( 284 ) — ( 426 ) Recoveries — — — — 38 — 38 Provision (credit) 259 472 ( 6 ) 166 48 ( 67 ) 872 Balance at June 30, 2020 $ 6,758 $ 8,387 $ 207 $ 955 $ 851 $ — $ 17,158 Balance at March 31, 2019 $ 4,247 $ 5,746 $ 240 $ 734 $ 812 $ 78 $ 11,857 Charge-offs — ( 1,190 ) — — ( 266 ) — ( 1,456 ) Recoveries — 5 4 — 26 — 35 Provision (credit) 332 728 ( 13 ) ( 85 ) 356 36 1,354 Balance at June 30, 2019 $ 4,579 $ 5,289 $ 231 $ 649 $ 928 $ 114 $ 11,790 For the six months ended June 30, (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total Allowance for loan losses: Balance at December 31, 2019 $ 6,104 $ 6,086 $ 254 $ 749 $ 650 $ 1 $ 13,844 Charge-offs — ( 239 ) — — ( 513 ) — ( 752 ) Recoveries — 7 4 — 84 — 95 Provision (credit) 654 2,533 ( 51 ) 206 630 ( 1 ) 3,971 Balance at June 30, 2020 $ 6,758 $ 8,387 $ 207 $ 955 $ 851 $ — $ 17,158 Balance at December 31, 2018 $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Charge-offs — ( 2,223 ) — — ( 547 ) — ( 2,770 ) Recoveries — 15 4 — 45 — 64 Provision (credit) 427 1,755 ( 24 ) ( 89 ) 720 27 2,816 Balance at June 30, 2019 $ 4,579 $ 5,289 $ 231 $ 649 $ 928 $ 114 $ 11,790 The following table sets forth information regarding the allowance for loan losses and related loan balances by portfolio segment at June 30, 2020 and December 31, 2019: (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total June 30, 2020 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ 1,480 $ 421 $ — $ — $ — $ — $ 1,901 Ending balance: Collectively evaluated for impairment 5,278 7,966 207 955 851 — 15,257 Total allowance for loan losses ending balance $ 6,758 $ 8,387 $ 207 $ 955 $ 851 $ — $ 17,158 Loans: Ending balance: Individually evaluated for impairment $ 22,269 $ 4,618 $ 163 $ — $ — $ 27,050 Ending balance: Collectively evaluated for impairment 399,567 756,210 39,238 57,087 8,507 1,260,609 Total loans ending balance $ 421,836 $ 760,828 $ 39,401 $ 57,087 $ 8,507 $ 1,287,659 (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total December 31, 2019 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ 1,508 $ 174 $ — $ — $ — $ — $ 1,682 Ending balance: Collectively evaluated for impairment 4,596 5,912 254 749 650 1 12,162 Total allowance for loan losses ending balance $ 6,104 $ 6,086 $ 254 $ 749 $ 650 $ 1 $ 13,844 Loans: Ending balance: Individually evaluated for impairment $ 20,990 $ 3,326 $ 182 $ 165 $ — $ 24,663 Ending balance: Collectively evaluated for impairment 397,366 448,465 45,513 46,598 12,737 950,679 Total loans ending balance $ 418,356 $ 451,791 $ 45,695 $ 46,763 $ 12,737 $ 975,342 The following tables set forth information regarding non-accrual loans and loan delinquencies by portfolio segment at June 30, 2020 and December 31, 2019: 90 Days 90 Days Total or More 30 - 59 60 - 89 or More Past Total Total Past Due Non-accrual (In thousands) Days Days Past Due Due Current Loans and Accruing Loans June 30, 2020 Commercial real estate $ — $ — $ 786 $ 786 $ 421,050 $ 421,836 $ — $ 20,865 Commercial — 50 301 351 760,477 760,828 — 4,309 Residential real estate 328 185 721 1,234 38,167 39,401 — 844 Construction and land development — — — — 57,087 57,087 — — Consumer 38 18 21 77 8,430 8,507 — 21 Total $ 366 $ 253 $ 1,829 $ 2,448 $ 1,285,211 $ 1,287,659 $ — $ 26,039 December 31, 2019 Commercial real estate $ 473 $ 18,256 $ 1,368 $ 20,097 $ 398,259 $ 418,356 $ — $ 1,701 Commercial 529 85 484 1,098 450,693 451,791 — 2,955 Residential real estate 715 154 832 1,701 43,994 45,695 — 969 Construction and land development — — 165 165 46,598 46,763 — 165 Consumer 111 58 38 207 12,530 12,737 — 37 Total $ 1,828 $ 18,553 $ 2,887 $ 23,268 $ 952,074 $ 975,342 $ — $ 5,827 The following tables provide information with respect to the Company’s impaired loans: June 30, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related (In thousands) Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: Commercial real estate $ 1,557 $ 1,557 $ — $ 2,070 $ 2,082 $ — Commercial 363 370 — 1,348 1,745 — Residential real estate 163 163 — 182 182 — Construction and land development — — — 165 165 — Consumer — — — — — — Total impaired with no related allowance 2,083 2,090 — 3,765 4,174 — With an allowance recorded: Commercial real estate 20,712 20,792 1,480 18,920 18,921 1,508 Commercial 4,255 4,845 421 1,978 2,085 174 Residential real estate — — — — — — Construction and land development — — — — — — Consumer — — — — — — Total impaired with an allowance recorded 24,967 25,637 1,901 20,898 21,006 1,682 Total Commercial real estate 22,269 22,349 1,480 20,990 21,003 1,508 Commercial 4,618 5,215 421 3,326 3,830 174 Residential real estate 163 163 — 182 182 — Construction and land development — — — 165 165 — Consumer — — — — — — Total impaired loans $ 27,050 $ 27,727 $ 1,901 $ 24,663 $ 25,180 $ 1,682 Three Months Ended June 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income (In thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial real estate $ 1,565 $ 9 $ 1,831 $ 9 Commercial 371 4 1,053 7 Residential real estate 164 2 382 3 Construction and land development 83 — — — Consumer — — — — Total impaired with no related allowance 2,183 15 3,266 19 With an allowance recorded: Commercial real estate 20,879 41 — — Commercial 4,484 — 4,701 — Residential real estate — — — — Construction and land development — — — — Consumer — — — — Total impaired with an allowance recorded 25,363 41 4,701 — Total Commercial real estate 22,444 50 1,831 9 Commercial 4,855 4 5,754 7 Residential real estate 164 2 382 3 Construction and land development 83 — — — Consumer — — — — Total impaired loans $ 27,546 $ 56 $ 7,967 $ 19 Six Months Ended June 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income (In thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial real estate $ 1,573 $ 28 $ 1,838 $ 30 Commercial 383 10 1,120 13 Residential real estate 164 5 384 8 Construction and land development 110 — — — Consumer — — — — Total impaired with no related allowance 2,230 43 3,342 51 With an allowance recorded: Commercial real estate 20,936 252 — — Commercial 4,596 1 4,994 — Residential real estate — — — — Construction and land development — — — — Consumer — — — — Total impaired with an allowance recorded 25,532 253 4,994 — Total Commercial real estate 22,509 280 1,838 30 Commercial 4,979 11 6,114 13 Residential real estate 164 5 384 8 Construction and land development 110 — — — Consumer — — — — Total impaired loans $ 27,762 $ 296 $ 8,336 $ 51 Troubled debt restructurings: Loans are considered to be troubled debt restructurings (“TDRs”) when the Company has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions may include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt may be bifurcated with separate terms for each tranche of the restructured debt. Restructuring of a loan in lieu of aggressively enforcing the collection of the loan may benefit the Company by increasing the ultimate probability of collection. Restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately six months before management considers such loans for return to accruing status. Accruing restructured loans are placed into nonaccrual status if and when the borrower fails to comply with the restructured terms and management deems it unlikely that the borrower will return to a status of compliance in the near term. TDRs are reported as such for at least one year from the date of the restructuring. In years after the restructuring, troubled debt restructured loans are removed from this classification if the restructuring did not involve a below-market rate concession and the loan is not deemed to be impaired based on the terms specified in the restructuring agreement. The following tables summarize TDRs entered into during the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 (Dollars in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial real estate 2 $ 165 $ 165 — $ — $ — Commercial 1 81 81 — — — 3 $ 246 $ 246 — $ — $ — Six Months Ended June 30, 2020 2019 (Dollars in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial real estate 9 $ 18,811 $ 20,311 — $ — $ — Commercial 1 81 81 1 1,963 1,963 10 $ 18,892 $ 20,392 1 $ 1,963 $ 1,963 During the six months ended June 30, 2020, the Company approved 10 TDRs. Of the 10 troubled debt restructurings, seven were for one commercial real estate loan relationship totaling $ 20.1 million. The Bank analyzed the relationship and modified the relationship as follows: $ 16.5 million was placed on interest-only payments for three year s at a reduced rate; $ 2.1 million was restructured to amortize and pay out over a 10 -year term at a reduced rate; and $ 1.5 million was advanced for necessary capital expenditures. The advance was placed on interest-only payments for three year s at a reduced rate. This commercial relationship is currently on non-accrual until satisfactory demonstration of payments. An impairment analysis was performed and a specific reserve of $ 1.4 million was allocated to this relationship. As of June 30, 2020, the loan relationship has been paying as agreed upon in the modified terms. The Bank approved two troubled debt restructurings for another commercial real estate relationship totaling $ 165,000 . These loans have a reduced rate for a period of two year s. An impairment analysis was performed and a specific reserve of $ 8,000 was allocated to this relationship. The Bank also approved one troubled debt restructuring of a commercial loan totaling $ 81,000 . This commercial loan was placed on an extended six-month interest-only period with a new term and re-amortization to follow. An impairment analysis was performed and a specific reserve of $ 40,000 was allocated to this relationship. In the six months ended June 30, 2019, the Company approved one troubled debt restructuring totaling $ 1.9 million. This commercial loan was placed on an extended 12-month interest-only period with re-amortization to follow. An impairment analysis was performed and a specific reserve of $ 136,000 was allocated to this relationship. For the three and six months ended June 30, 2020 and 2019 there were no payment defaults on troubled debt restructured loans modified within the previous 12 months. As of June 30, 2020, there were no significant commitments to lend additional funds to borrowers whose loans had been restructured. The recorded investment in TDRs was $ 23.9 million and $ 4.2 million at June 30, 2020 and December 31, 2019, respectively. The following tables present the Company’s loans by risk rating and portfolio segment at June 30, 2020 and December 31, 2019: (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Total June 30, 2020 Grade: Pass $ 386,553 $ 738,468 $ — $ 57,087 $ — $ 1,182,108 Special mention 14,418 14,112 — — — 28,530 Substandard 20,865 8,248 1,132 — — 30,245 Not formally rated — — 38,269 — 8,507 46,776 Total $ 421,836 $ 760,828 $ 39,401 $ 57,087 $ 8,507 $ 1,287,659 December 31, 2019 Grade: Pass $ 396,217 $ 433,076 $ — $ 46,598 $ — $ 875,891 Special mention 1,936 14,044 — — — 15,980 Substandard 20,203 4,671 1,379 165 — 26,418 Not formally rated — — 44,316 — 12,737 57,053 Total $ 418,356 $ 451,791 $ 45,695 $ 46,763 $ 12,737 $ 975,342 Credit Quality Information The Company utilizes a seven grade internal loan risk rating system for commercial real estate, construction and land development, and commercial loans as follows: Loans rated 1-3 : Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 4 : Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 5 : Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 6 : Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 7 : Loans in this category are considered uncollectible “loss” and of such little value that their continuance as loans is not warranted. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and land development, and commercial loans. For residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and rates such loans as pass. Ongoing monitoring is based upon the borrower’s payment activity. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2020 | |
Deposits [Abstract] | |
Deposits | (7) Deposits A summary of deposit balances, by type is as follows: June 30, December 31, (In thousands) 2020 2019 NOW and demand $ 502,772 $ 369,423 Regular savings 154,747 115,593 Money market deposits 291,872 270,471 Total non-certificate accounts 949,391 755,487 Certificate accounts of $250,000 or more 19,610 15,575 Certificate accounts less than $250,000 151,484 78,843 Total certificate accounts 171,094 94,418 Total deposits $ 1,120,485 $ 849,905 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2020 | |
Borrowings [Abstract] | |
Borrowings | (8) Borrowings Advances consist of funds borrowed the Federal Home Loan Bank (the “FHLB”) and the Federal Reserve Bank (the “FRB”) borrower-in-custody (“BIC”) program. Maturities of advances from the FHLB and FRB as of June 30, 2020 are summarized as follows: (In thousands) Fiscal Year-End Dollar Amount 2020 $ 28,521 2021 5,000 2023 8,500 Total $ 42,021 Borrowings from the FRB BIC program are secured by a Uniform Commercial Code (“UCC”) financing statement on qualified collateral, consisting of certain commercial loans and qualified mortgage-backed government securities. At June 30, 2020, FRB borrowings consisted of overnight borrowings totaling $ 25.0 million and had an interest rate of 0.25 %. Borrowings from the FHLB, which aggregated $ 17.0 million at June 30, 2020, are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one to four family properties, certain commercial loans and qualified mortgage-backed government securities. The interest rates on FHLB advances ranged from 1.96 % to 3.01 %, and the weighted average interest rate on FHLB advances was 2.54 % at June 30, 2020. All of the FHLB borrowings at June 30, 2020 are long-term with an original maturity of more than one year . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (9) Fair Value Measurements The Company reports certain assets at fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value in accordance with generally accepted accounting principles. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Basis of Fair Value Measurements Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). An asset’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair Values of Assets Measured on a Recurring Basis The Company’s investments in state and municipal, asset-backed and government mortgage-backed debt securities available-for-sale are generally classified within Level 2 of the fair value hierarchy. For these investments, the Company obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. The following summarizes financial instruments measured at fair value on a recurring basis at June 30, 2020 and December 31, 2019: Fair Value Measurements at Reporting Date Using Significant Significant Other Observable Unobservable Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 June 30, 2020 State and municipal securities $ 11,101 $ — $ 11,101 $ — Asset-backed securities 5,126 — 5,126 — Mortgage-backed securities 20,765 — 20,765 — Totals $ 36,992 $ — $ 36,992 $ — December 31, 2019 State and municipal securities $ 11,206 $ — $ 11,206 $ — Asset-backed securities 5,500 — 5,500 — Mortgage-backed securities 25,084 — 25,084 — Totals $ 41,790 $ — $ 41,790 $ — Fair Values of Assets Measured on a Non-Recurring Basis The Company may also be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from the application of lower-of-cost-or market accounting or write-downs of individual assets. Certain impaired loans were adjusted to fair value, less cost to sell, of the underlying collateral securing these loans resulting in losses. The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for loan losses. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. The following summarizes assets measured at fair value on a nonrecurring basis at June 30, 2020 and December 31, 2019: Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 June 30, 2020 Impaired loans Commercial real estate $ 553 $ — $ — $ 553 Commercial 3,834 — — 3,834 Totals $ 4,387 $ — $ — $ 4,387 December 31, 2019 Impaired loans Commercial real estate $ 215 $ — $ — $ 215 Commercial 1,805 — — 1,805 Totals $ 2,020 $ — $ — $ 2,020 The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at June 30, 2020 and December 31, 2019: (In thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2020 Impaired loans Commercial real estate $ 553 Real estate appraisals Discount for dated appraisals 6 - 10 % Commercial 3,834 Business valuation Comparable company evaluations — December 31, 2019 Impaired loans Commercial real estate $ 215 Real estate appraisals Discount for dated appraisals 6 - 10 % Commercial 1,805 Business valuation Comparable company evaluations — Fair Values of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Certain financial instruments and all nonfinancial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company's financial instruments, all of which are held or issued for purposes other than trading, are as follows at June 30, 2020 and December 31, 2019: Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total June 30, 2020 Financial assets: Cash and cash equivalents $ 38,178 $ 38,178 $ — $ — $ 38,178 Available-for-sale securities 36,992 — 36,992 — 36,992 Federal Home Loan Bank of Boston stock 1,050 N/A N/A N/A N/A Loans, net 1,265,091 — — 1,278,953 1,278,953 Accrued interest receivable 4,756 — 4,756 — 4,756 Financial liabilities: Deposits 1,120,485 — 1,121,459 — 1,121,459 Borrowings 42,021 — 42,710 — 42,710 December 31, 2019 Financial assets: Cash and cash equivalents $ 59,658 $ 59,658 $ — $ — $ 59,658 Available-for-sale securities 41,790 — 41,790 — 41,790 Federal Home Loan Bank of Boston stock 1,416 N/A N/A N/A N/A Loans, net 959,286 — — 958,270 958,270 Accrued interest receivable 2,854 — 2,854 — 2,854 Financial liabilities: Deposits 849,905 — 850,774 — 850,774 Borrowings 24,998 — 25,351 — 25,351 |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2020 | |
Regulatory Capital [Abstract] | |
Regulatory Capital | (10) Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Bank is subject to capital regulations that require a Common Equity Tier 1 (“CET1”) capital ratio of 4.5 %, a minimum Tier 1 capital to risk-weighted assets ratio of 6.0 %, a minimum total capital to risk-weighted assets ratio of 8.0 % and a minimum Tier 1 leverage ratio of 4.0 %. CET1 generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. In order to be considered “well capitalized,” the Bank must maintain a CET1 capital ratio of 6.5 % and a Tier 1 ratio of 8.0 %, a total risk-based capital ratio of 10 % and a Tier 1 leverage ratio of 5.0 %. As of June 30, 2020 and December 31, 2019, the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. Applicable regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5 % of common equity Tier 1 capital to risk-weighted asset above the amount necessary to meet its minimum risk-based capital requirements. At June 30, 2020, the Bank exceeded the regulatory requirement for the capital conservation buffer. In September 2019, the federal banking agencies adopted a final rule to implement Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, effective January 1, 2020, establishing a community bank leverage ratio (“CBLR”) framework for community banking organizations having total consolidated assets of less than $ 10 billion, having a leverage ratio of greater than 9 %, and satisfying other criteria, such as limitations on the amount of off-balance sheet exposures and on trading assets and liabilities. A community banking organization that qualifies for and elects to use the CBLR framework and that maintains a leverage ratio of greater than 9 % will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the banking agencies’ generally applicable capital rules and, if applicable, will be considered to have met the well-capitalized ratio requirements for purposes of Section 38 of the Federal Deposit Insurance Act. The final rule includes a two-quarter grace period during which a qualifying banking organization that temporarily fails to meet any of the qualifying criteria, including the greater than 9 % leverage ratio requirement, generally would still be deemed well-capitalized so long as the banking organization maintains a leverage ratio greater than 8 %. At the end of the grace period, the banking organization must meet all qualifying criteria to remain in the community bank leverage ratio framework or otherwise must comply with and report under the generally applicable rule. The CARES Act temporarily lowered the community bank leverage ratio to 8 %. As of June 30, 2020, the Bank has not opted into the CBLR framework. The Bank’s actual capital amounts and ratios are presented in the following table. To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2020 Total Capital (to Risk Weighted Assets) $ 189,668 14.72 % 103,053 > 8.0 % $ 128,816 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 173,553 13.47 77,290 > 6.0 103,053 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 173,553 13.47 57,967 > 4.5 83,731 > 6.5 Tier 1 Capital (to Average Assets) 173,553 13.10 52,991 > 4.0 66,239 > 5.0 December 31, 2019 Total Capital (to Risk Weighted Assets) $ 181,135 17.62 % $ 82,238 > 8.0 % $ 102,798 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 168,273 16.37 61,679 > 6.0 82,238 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 168,273 16.37 46,259 > 4.5 66,819 > 6.5 Tier 1 Capital (to Average Assets) 168,273 15.18 44,352 > 4.0 55,440 > 5.0 Liquidation Accounts Upon the completion of Old Provident’s stock offering in 2015, a special “liquidation account” was established for the benefit of certain depositors of the Bank in an amount equal to the percentage ownership interest in the equity of Old Provident held by persons other than the MHC as of the date of the latest balance sheet contained in the prospectus utilized in connection with the offering. The Company is not permitted to pay dividends on its capital stock if the Company’s shareholders’ equity would be reduced below the amount of the liquidation account. The liquidation account is reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account. Upon the completion of the Conversion, special “liquidation accounts” for the benefit of certain depositors of the Bank in an amount equal to the MHC’s ownership interest in the retained earnings of the Company as of the date of the latest balance sheet contained in the 2019 prospectus plus the MHC’s net assets (excluding its ownership of the Company) were established by the Company and the Bank. The Company and the Bank are not permitted to pay dividends on their capital stock if the shareholders’ equity of the Company, or the shareholder’s equity of the Bank, would be reduced below the amount of the liquidation accounts. The liquidation accounts will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation accounts. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 6 Months Ended |
Jun. 30, 2020 | |
Employee Stock Ownership Plan [Abstract] | |
Employee Stock Ownership Plan | (11) Employee Stock Ownership Plan Old Provident established an ESOP for its eligible employees to provide eligible employees the opportunity to own Old Provident stock. The plan is a tax-qualified plan for the benefit of all Bank employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax law limits. The ESOP acquired 721,876 shares in Old Provident’s initial stock offering with the proceeds of a loan totaling $ 3.6 million. The loan was payable annually over 15 years at a rate per annum equal to the prime rate. In conjunction with the Conversion, the Company refinanced the original loan to the ESOP with an additional $ 8.2 million payable over 15 years at a rate per annum equal to the prime rate ( 4.75 % as December 31, 2019) to acquire an additional 816,992 shares at $ 10.00 per share, representing 8 % of the shares sold in the Company’s second-step offering. After the Conversion, the unallocated shares had an average price of $ 8.20 per share. Shares used as collateral to secure the loan are released and available for allocation to eligible employees as the principal and interest on the loan is paid. The number of shares committed to be released per year through 2033 is 89,757 . Shares held by the ESOP include the following: June 30, 2020 December 31, 2019 Allocated 282,256 192,499 Committed to be allocated 44,879 89,757 Unallocated 1,211,733 1,256,612 Total 1,538,868 1,538,868 The fair value of unallocated shares was approximately $ 9.5 million at June 30, 2020. Share amounts related to periods prior to the date of the Conversion (October 16, 2019) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion ( 2.0212 -to-one). Total compensation expense recognized in connection with the ESOP for the three months ended June 30, 2020 and 2019 was $ 194,000 and $ 145,000 , respectively. Total compensation expense recognized for the six months ended June 30, 2020 and 2019 was $ 444,000 and $ 281,000 respectively. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | (12) Earnings Per Common Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated ESOP shares, treasury stock and unvested restricted stock is not deemed outstanding for earnings per share calculations. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share amounts) 2020 2019 2020 2019 Net Income attributable to common shareholders $ 3,250 $ 2,531 $ 4,481 $ 4,749 Average number of common shares issued 19,474,950 19,521,324 19,475,599 19,525,241 Less: average unallocated ESOP shares ( 1,219,215 ) ( 528,896 ) ( 1,230,434 ) ( 538,797 ) average unvested restricted stock ( 105,629 ) ( 160,360 ) ( 113,744 ) ( 168,330 ) average treasury stock acquired — ( 73,333 ) — ( 73,333 ) Average number of common shares outstanding to calculate basic earnings per common share 18,150,106 18,758,735 18,131,421 18,744,781 Effect of dilutive unvested restricted stock and stock option awards 29,752 137,183 66,225 112,122 Average number of common shares outstanding to calculate diluted earnings per common share 18,179,858 18,895,918 18,197,646 18,856,903 Earnings per common share: Basic $ 0.18 $ 0.13 $ 0.25 $ 0.25 Diluted $ 0.18 $ 0.13 $ 0.25 $ 0.25 Share amounts related to periods prior to the date of the Conversion (October 16, 2019) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion ( 2.0212 -to-one). |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | (13) Share-Based Compensation Under the Provident Bancorp, Inc. 2016 Equity Incentive Plan (the "Equity Plan"), the Company may grant options, restricted stock, restricted units or performance awards to its directors, officers and employees. Both incentive stock options and non-qualified stock options may be granted under the Equity Plan, with the total shares reserved for options equaling 902,344 . The exercise price of each option equals the market price of the Company’s stock on the date of grant and the term of each option is generally ten year s. The total number of shares reserved for restricted stock or restricted units is 360,935 . Options and other awards vest in equal annual installments on each anniversary of the date of the grant over the vesting period, which is typically three year s to five year s. Expense related to options and restricted stock granted to directors is recognized in directors’ compensation within non-interest expense. Stock Options The fair value of each option is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions: Volatility is based on peer group volatility because the Company does not have a sufficient trading history. Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, and the vesting period. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. The fair value of options granted in 2020 is based on the following assumptions: 2020 Vesting period (years) 3 Expiration date (years) 10 Expected volatility 30.92 % Expected life (years) 7.5 Expected dividend yield —% Risk free interest rate 1.74 % Fair value per option $ 4.60 A summary of the status of the Company’s stock option grants for the six months ended June 30, 2020 is presented in the table below: Stock Option Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2019 816,057 $ 8.93 Granted 7,293 12.35 Forfeited ( 9,844 ) 8.61 Exercised — — Outstanding at June 30, 2020 813,506 $ 8.96 6.45 $ — Outstanding and expected to vest at June 30, 2020 813,506 $ 8.96 6.45 $ — Vested and Exercisable at June 30, 2020 465,994 $ 8.73 6.25 $ — Unrecognized compensation cost $ 693,000 Weighted average remaining recognition period (years) 1.74 For the three months ended June 30, 2020 and 2019, total expense for the stock options was $ 104,000 and $ 103,000 , respectively. For the six months ended June 30, 2020 and 2019, total expense for the stock options was $ 214,000 and $ 201,000 , respectively. Restricted Stock Shares issued upon the granting of restricted stock may be either authorized but unissued shares or reacquired shares held by the Company. Any shares forfeited because vesting requirements are not met will again be available for issuance under the Equity Plan. The fair market value of shares awarded, based on the market prices at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period. The following table presents the activity in restricted stock awards under the Equity Plan for six months ended June 30, 2020: Unvested Restricted Stock Awards Weighted Average Grant Date Price Unvested restricted stock awards at January 1, 2020 140,019 $ 9.19 Granted 2,430 12.35 Forfeited ( 3,938 ) 8.61 Vested — — Unvested restricted stock awards at June 30, 2020 138,511 $ 9.26 Unrecognized compensation cost $ 917,000 Weighted average remaining recognition period (years) 1.70 For the three months ended June 30, 2020 and 2019, total expense for the restricted stock awards was $ 138,000 and $ 142,000 , respectively. For the six months ended June 30, 2020 and 2019, total expense for the restricted stock awards was $ 289,000 and $ 309,000 , respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | (14) Leases The Company recognized right-of-use assets totaling $ 4.3 million and $ 3.7 million and operating lease liabilities totaling $ 4.5 million and $ 3.9 million at June 30, 2020 and December 31, 2019, respectively. The lease liabilities recognized by the Company represent two leased branch locations and one loan production office. Rent expense for the operating leases has been amortized over a straight line basis for the remaining lease term. For the six months ended June 30, 2020 and 2019, rent expense for the operating leases totaled $ 150,000 and $ 144,000 , respectively. Variable lease components are expensed as incurred and are not included in the right-of-use assets and operating lease liabilities. The following table presents information regarding the Company’s operating leases: June 30, December 31, 2020 2019 Weighted-average discount rate 3.53 % 3.78 % Range of lease expiration dates 3 - 15.5 years 4.5 - 16 years Range of lease renewal options 5 - 20 years 20 years Weighted-average remaining lease term 28.0 years 31.9 years The following table presents the undiscounted annual lease payments under the terms of the Company's operating leases at June 30, 2020, including a reconciliation to the present value of operating lease liabilities recognized in the unaudited Consolidated Balance Sheets: (Dollars in thousands) Fiscal Year-End Dollar Amount 2020 $ 126 2021 258 2022 261 2023 264 2024 270 Thereafter 6,604 Total lease payments 7,783 Less imputed interest ( 3,249 ) Total lease liabilities $ 4,534 The lease liabilities recognized include certain lease extensions as it is expected that the Company will use substantially all lease renewal options. |
Asset Purchase
Asset Purchase | 6 Months Ended |
Jun. 30, 2020 | |
Asset Purchase [Abstract] | |
Asset Purchase | (15) Asset Purchase On January 17, 2020, the Company completed an asset purchase of a warehouse line of business, which comprised primarily of warehouse loans. This line of business was originally developed by United Bank in Connecticut. People’s United Bank, N.A. acquired United Bank in 2019 and made the business decision to no longer support the warehouse lending business developed by United Bank. On December 20, 2019, the Company entered into an agreement with People’s United Bank, N.A. to complete the asset purchase at par. The Company acquired the loan portfolio, plus aggregate accrued interest and fees, fixed assets, and prepaid expenses. The Company also assumed the employment contracts of the six employees in the department and agreed to pay all costs associated with the acquisition, which totaled $ 80,000 and were reflected in the Company’s income statement for the six months ended June 30, 2020. The following table summarizes the consideration paid for the warehouse lending business and the amounts of assets purchased: (In thousands) Consideration: Cash $ 66,962 Recognized amounts of identifiable assets acquired: Loans 66,672 Accrued interest and fees 250 Premises and equipment 24 Other assets 16 Total identifiable assets $ 66,962 The Company paid par for the purchase. A valuation was performed and the fair value of the loans purchased approximates the purchase price. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (16) Revenue Recognition Revenue from contracts with customers in the scope of Accounting Standards Codification (“ASC”) ("Topic 606") is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations. The Company’s performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements. In certain cases, other parties are involved with providing services to our customers. If the Company is a principal in the transaction (providing services itself or through a third party on its behalf), revenues are reported based on the gross consideration received from the customer and any related expenses are reported gross in non-interest expense. If the Company is an agent in the transaction (referring to another party to provide services), the Company reports its net fee or commission retained as revenue. The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying unaudited financial statements of Provident Bancorp, Inc., a Maryland corporation (the “Company”), were prepared in accordance with the instructions for Form 10-Q and with Regulation S-X and do not include information or footnotes necessary for a complete presentation of the financial condition, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, in the opinion of management, all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three and six month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for future periods, including the entire fiscal year. Certain amounts in 2019 have been reclassified to be consistent with the 2020 consolidated financial statement presentation, and had no effect on the net income reported in the consolidated statement of income. These financial statements should be read in conjunction with the annual financial statements and notes thereto included in the annual report on Form 10-K the Company filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2020. The consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, The Provident Bank, which also operates under the name BankProv (the “Bank”), and the Bank’s wholly owned subsidiaries, Provident Security Corporation and 5 Market Street Security Corporation. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. All significant inter-company balances and transactions have been eliminated in consolidation. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policy) | 6 Months Ended |
Jun. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” The ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace the current “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. On October 16, 2019, FASB approved a delay on the implementation until January 2023 for smaller reporting companies as defined by the SEC. The amendments in this update will be effective for the Company on January 1, 2023. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact of its pending adoption of this guidance on the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): “Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The Company adopted the provision of ASU 2018-13 effective January 1, 2020 and the adoption did not have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes (“ASU 2019-12”) . This ASU simplifies the accounting for income taxes and is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Certain provisions under ASU 2019-12 require prospective application, some require modified retrospective application through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, while other provisions require retrospective application to all periods presented in the consolidated financial statements upon adoption. The adoption of ASU 2019-12 is not expected to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , to ease the potential burden in accounting for recognizing the effects of reference rate reform on financial reporting. Such challenges include the accounting and operational implications for contract modifications and hedge accounting. The provisions in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to loan and lease agreements, contracts, hedging relationships, and other transactions affected by reference rate reform. These provisions apply to contract modifications that reference LIBOR or another reference rate expected to be discounted because of reference rate reform. Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification would be considered "minor" so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company is currently evaluating the effect that this ASU will have on the Company’s consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investment Securities [Abstract] | |
Summary of Amortized Cost of Investment Securities Classified as Available-for-sale and their Approximate Fair Values | Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value June 30, 2020 State and municipal securities $ 10,519 $ 582 $ — $ 11,101 Asset-backed securities 4,906 220 — 5,126 Government mortgage-backed securities 20,241 536 12 20,765 Total debt securities available-for-sale $ 35,666 $ 1,338 $ 12 $ 36,992 December 31, 2019 State and municipal securities $ 10,808 $ 398 $ — $ 11,206 Asset-backed securities 5,433 71 4 5,500 Government mortgage-backed securities 24,954 197 67 25,084 Total debt securities available-for-sale $ 41,195 $ 666 $ 71 $ 41,790 |
Schedule of Maturities of Debt Securities | Available-for-Sale Amortized Fair (In thousands) Cost Value Due after one year through five years $ 1,204 $ 1,229 Due after five years through ten years 912 917 Due after ten years 8,403 8,955 Government mortgage-backed securities 20,241 20,765 Asset-backed securities 4,906 5,126 $ 35,666 $ 36,992 |
Schedule of Aggregate Fair Value and Unrealized Losses of Securities | Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses June 30, 2020 Temporarily impaired securities: Government mortgage-backed securities $ 402 $ 3 $ 509 $ 9 $ 911 $ 12 Total temporarily impaired debt securities $ 402 $ 3 $ 509 $ 9 $ 911 $ 12 December 31, 2019 Temporarily impaired securities: Asset-backed securities $ 606 $ 4 $ — $ — $ 606 $ 4 Government mortgage-backed securities 5,207 8 5,418 59 10,625 67 Total temporarily impaired debt securities $ 5,813 $ 12 $ 5,418 $ 59 $ 11,231 $ 71 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Loans [Abstract] | |
Schedule of Loans | At At June 30, December 31, 2020 2019 (Dollars in thousands) Amount Amount Commercial real estate $ 421,836 $ 418,356 Commercial 760,828 451,791 Residential real estate 39,401 45,695 Construction and land development 57,087 46,763 Consumer 8,507 12,737 1,287,659 975,342 Allowance for loan losses ( 17,158 ) ( 13,844 ) Deferred loan fees, net ( 5,410 ) ( 2,212 ) Net loans $ 1,265,091 $ 959,286 |
Schedule of Allowance for Loan Losses by Portfolio Segment | For the three months ended June 30, (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total Allowance for loan losses: Balance at March 31, 2020 $ 6,499 $ 8,057 $ 213 $ 789 $ 1,049 $ 67 $ 16,674 Charge-offs — ( 142 ) — — ( 284 ) — ( 426 ) Recoveries — — — — 38 — 38 Provision (credit) 259 472 ( 6 ) 166 48 ( 67 ) 872 Balance at June 30, 2020 $ 6,758 $ 8,387 $ 207 $ 955 $ 851 $ — $ 17,158 Balance at March 31, 2019 $ 4,247 $ 5,746 $ 240 $ 734 $ 812 $ 78 $ 11,857 Charge-offs — ( 1,190 ) — — ( 266 ) — ( 1,456 ) Recoveries — 5 4 — 26 — 35 Provision (credit) 332 728 ( 13 ) ( 85 ) 356 36 1,354 Balance at June 30, 2019 $ 4,579 $ 5,289 $ 231 $ 649 $ 928 $ 114 $ 11,790 For the six months ended June 30, (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total Allowance for loan losses: Balance at December 31, 2019 $ 6,104 $ 6,086 $ 254 $ 749 $ 650 $ 1 $ 13,844 Charge-offs — ( 239 ) — — ( 513 ) — ( 752 ) Recoveries — 7 4 — 84 — 95 Provision (credit) 654 2,533 ( 51 ) 206 630 ( 1 ) 3,971 Balance at June 30, 2020 $ 6,758 $ 8,387 $ 207 $ 955 $ 851 $ — $ 17,158 Balance at December 31, 2018 $ 4,152 $ 5,742 $ 251 $ 738 $ 710 $ 87 $ 11,680 Charge-offs — ( 2,223 ) — — ( 547 ) — ( 2,770 ) Recoveries — 15 4 — 45 — 64 Provision (credit) 427 1,755 ( 24 ) ( 89 ) 720 27 2,816 Balance at June 30, 2019 $ 4,579 $ 5,289 $ 231 $ 649 $ 928 $ 114 $ 11,790 |
Schedule of Loan Balances by Segment | (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total June 30, 2020 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ 1,480 $ 421 $ — $ — $ — $ — $ 1,901 Ending balance: Collectively evaluated for impairment 5,278 7,966 207 955 851 — 15,257 Total allowance for loan losses ending balance $ 6,758 $ 8,387 $ 207 $ 955 $ 851 $ — $ 17,158 Loans: Ending balance: Individually evaluated for impairment $ 22,269 $ 4,618 $ 163 $ — $ — $ 27,050 Ending balance: Collectively evaluated for impairment 399,567 756,210 39,238 57,087 8,507 1,260,609 Total loans ending balance $ 421,836 $ 760,828 $ 39,401 $ 57,087 $ 8,507 $ 1,287,659 (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Unallocated Total December 31, 2019 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ 1,508 $ 174 $ — $ — $ — $ — $ 1,682 Ending balance: Collectively evaluated for impairment 4,596 5,912 254 749 650 1 12,162 Total allowance for loan losses ending balance $ 6,104 $ 6,086 $ 254 $ 749 $ 650 $ 1 $ 13,844 Loans: Ending balance: Individually evaluated for impairment $ 20,990 $ 3,326 $ 182 $ 165 $ — $ 24,663 Ending balance: Collectively evaluated for impairment 397,366 448,465 45,513 46,598 12,737 950,679 Total loans ending balance $ 418,356 $ 451,791 $ 45,695 $ 46,763 $ 12,737 $ 975,342 |
Schedule of Non-Accrual Loans and Loan Delinquencies by Portfolio Segment | 90 Days 90 Days Total or More 30 - 59 60 - 89 or More Past Total Total Past Due Non-accrual (In thousands) Days Days Past Due Due Current Loans and Accruing Loans June 30, 2020 Commercial real estate $ — $ — $ 786 $ 786 $ 421,050 $ 421,836 $ — $ 20,865 Commercial — 50 301 351 760,477 760,828 — 4,309 Residential real estate 328 185 721 1,234 38,167 39,401 — 844 Construction and land development — — — — 57,087 57,087 — — Consumer 38 18 21 77 8,430 8,507 — 21 Total $ 366 $ 253 $ 1,829 $ 2,448 $ 1,285,211 $ 1,287,659 $ — $ 26,039 December 31, 2019 Commercial real estate $ 473 $ 18,256 $ 1,368 $ 20,097 $ 398,259 $ 418,356 $ — $ 1,701 Commercial 529 85 484 1,098 450,693 451,791 — 2,955 Residential real estate 715 154 832 1,701 43,994 45,695 — 969 Construction and land development — — 165 165 46,598 46,763 — 165 Consumer 111 58 38 207 12,530 12,737 — 37 Total $ 1,828 $ 18,553 $ 2,887 $ 23,268 $ 952,074 $ 975,342 $ — $ 5,827 |
Schedule of Impaired Loans | June 30, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related (In thousands) Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: Commercial real estate $ 1,557 $ 1,557 $ — $ 2,070 $ 2,082 $ — Commercial 363 370 — 1,348 1,745 — Residential real estate 163 163 — 182 182 — Construction and land development — — — 165 165 — Consumer — — — — — — Total impaired with no related allowance 2,083 2,090 — 3,765 4,174 — With an allowance recorded: Commercial real estate 20,712 20,792 1,480 18,920 18,921 1,508 Commercial 4,255 4,845 421 1,978 2,085 174 Residential real estate — — — — — — Construction and land development — — — — — — Consumer — — — — — — Total impaired with an allowance recorded 24,967 25,637 1,901 20,898 21,006 1,682 Total Commercial real estate 22,269 22,349 1,480 20,990 21,003 1,508 Commercial 4,618 5,215 421 3,326 3,830 174 Residential real estate 163 163 — 182 182 — Construction and land development — — — 165 165 — Consumer — — — — — — Total impaired loans $ 27,050 $ 27,727 $ 1,901 $ 24,663 $ 25,180 $ 1,682 Three Months Ended June 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income (In thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial real estate $ 1,565 $ 9 $ 1,831 $ 9 Commercial 371 4 1,053 7 Residential real estate 164 2 382 3 Construction and land development 83 — — — Consumer — — — — Total impaired with no related allowance 2,183 15 3,266 19 With an allowance recorded: Commercial real estate 20,879 41 — — Commercial 4,484 — 4,701 — Residential real estate — — — — Construction and land development — — — — Consumer — — — — Total impaired with an allowance recorded 25,363 41 4,701 — Total Commercial real estate 22,444 50 1,831 9 Commercial 4,855 4 5,754 7 Residential real estate 164 2 382 3 Construction and land development 83 — — — Consumer — — — — Total impaired loans $ 27,546 $ 56 $ 7,967 $ 19 Six Months Ended June 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income (In thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial real estate $ 1,573 $ 28 $ 1,838 $ 30 Commercial 383 10 1,120 13 Residential real estate 164 5 384 8 Construction and land development 110 — — — Consumer — — — — Total impaired with no related allowance 2,230 43 3,342 51 With an allowance recorded: Commercial real estate 20,936 252 — — Commercial 4,596 1 4,994 — Residential real estate — — — — Construction and land development — — — — Consumer — — — — Total impaired with an allowance recorded 25,532 253 4,994 — Total Commercial real estate 22,509 280 1,838 30 Commercial 4,979 11 6,114 13 Residential real estate 164 5 384 8 Construction and land development 110 — — — Consumer — — — — Total impaired loans $ 27,762 $ 296 $ 8,336 $ 51 |
Schedule of Troubled Debt Restructurings | Three Months Ended June 30, 2020 2019 (Dollars in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial real estate 2 $ 165 $ 165 — $ — $ — Commercial 1 81 81 — — — 3 $ 246 $ 246 — $ — $ — Six Months Ended June 30, 2020 2019 (Dollars in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial real estate 9 $ 18,811 $ 20,311 — $ — $ — Commercial 1 81 81 1 1,963 1,963 10 $ 18,892 $ 20,392 1 $ 1,963 $ 1,963 |
Schedule of Loans by Risk Rating and Portfolio Segment | (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Total June 30, 2020 Grade: Pass $ 386,553 $ 738,468 $ — $ 57,087 $ — $ 1,182,108 Special mention 14,418 14,112 — — — 28,530 Substandard 20,865 8,248 1,132 — — 30,245 Not formally rated — — 38,269 — 8,507 46,776 Total $ 421,836 $ 760,828 $ 39,401 $ 57,087 $ 8,507 $ 1,287,659 December 31, 2019 Grade: Pass $ 396,217 $ 433,076 $ — $ 46,598 $ — $ 875,891 Special mention 1,936 14,044 — — — 15,980 Substandard 20,203 4,671 1,379 165 — 26,418 Not formally rated — — 44,316 — 12,737 57,053 Total $ 418,356 $ 451,791 $ 45,695 $ 46,763 $ 12,737 $ 975,342 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deposits [Abstract] | |
Schedule of Deposit Balances by Type | June 30, December 31, (In thousands) 2020 2019 NOW and demand $ 502,772 $ 369,423 Regular savings 154,747 115,593 Money market deposits 291,872 270,471 Total non-certificate accounts 949,391 755,487 Certificate accounts of $250,000 or more 19,610 15,575 Certificate accounts less than $250,000 151,484 78,843 Total certificate accounts 171,094 94,418 Total deposits $ 1,120,485 $ 849,905 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Borrowings [Abstract] | |
Schedule of Maturities of Advances from FHLB and FRB | (In thousands) Fiscal Year-End Dollar Amount 2020 $ 28,521 2021 5,000 2023 8,500 Total $ 42,021 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | Fair Value Measurements at Reporting Date Using Significant Significant Other Observable Unobservable Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 June 30, 2020 State and municipal securities $ 11,101 $ — $ 11,101 $ — Asset-backed securities 5,126 — 5,126 — Mortgage-backed securities 20,765 — 20,765 — Totals $ 36,992 $ — $ 36,992 $ — December 31, 2019 State and municipal securities $ 11,206 $ — $ 11,206 $ — Asset-backed securities 5,500 — 5,500 — Mortgage-backed securities 25,084 — 25,084 — Totals $ 41,790 $ — $ 41,790 $ — |
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis | Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total Level 1 Level 2 Level 3 June 30, 2020 Impaired loans Commercial real estate $ 553 $ — $ — $ 553 Commercial 3,834 — — 3,834 Totals $ 4,387 $ — $ — $ 4,387 December 31, 2019 Impaired loans Commercial real estate $ 215 $ — $ — $ 215 Commercial 1,805 — — 1,805 Totals $ 2,020 $ — $ — $ 2,020 |
Schedule of Valuation Methodology and Unobservable Inputs for Level 3 Assets Measured at Fair Value on a Nonrecurring Basis | (In thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2020 Impaired loans Commercial real estate $ 553 Real estate appraisals Discount for dated appraisals 6 - 10 % Commercial 3,834 Business valuation Comparable company evaluations — December 31, 2019 Impaired loans Commercial real estate $ 215 Real estate appraisals Discount for dated appraisals 6 - 10 % Commercial 1,805 Business valuation Comparable company evaluations — |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments, Held or Issued for Purposes Other Than Trading | Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total June 30, 2020 Financial assets: Cash and cash equivalents $ 38,178 $ 38,178 $ — $ — $ 38,178 Available-for-sale securities 36,992 — 36,992 — 36,992 Federal Home Loan Bank of Boston stock 1,050 N/A N/A N/A N/A Loans, net 1,265,091 — — 1,278,953 1,278,953 Accrued interest receivable 4,756 — 4,756 — 4,756 Financial liabilities: Deposits 1,120,485 — 1,121,459 — 1,121,459 Borrowings 42,021 — 42,710 — 42,710 December 31, 2019 Financial assets: Cash and cash equivalents $ 59,658 $ 59,658 $ — $ — $ 59,658 Available-for-sale securities 41,790 — 41,790 — 41,790 Federal Home Loan Bank of Boston stock 1,416 N/A N/A N/A N/A Loans, net 959,286 — — 958,270 958,270 Accrued interest receivable 2,854 — 2,854 — 2,854 Financial liabilities: Deposits 849,905 — 850,774 — 850,774 Borrowings 24,998 — 25,351 — 25,351 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Regulatory Capital [Abstract] | |
Schedule of Bank's Actual Capital Amounts and Ratios | To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2020 Total Capital (to Risk Weighted Assets) $ 189,668 14.72 % 103,053 > 8.0 % $ 128,816 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 173,553 13.47 77,290 > 6.0 103,053 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 173,553 13.47 57,967 > 4.5 83,731 > 6.5 Tier 1 Capital (to Average Assets) 173,553 13.10 52,991 > 4.0 66,239 > 5.0 December 31, 2019 Total Capital (to Risk Weighted Assets) $ 181,135 17.62 % $ 82,238 > 8.0 % $ 102,798 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 168,273 16.37 61,679 > 6.0 82,238 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 168,273 16.37 46,259 > 4.5 66,819 > 6.5 Tier 1 Capital (to Average Assets) 168,273 15.18 44,352 > 4.0 55,440 > 5.0 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Employee Stock Ownership Plan [Abstract] | |
Schedule of Shares Held by the ESOP | June 30, 2020 December 31, 2019 Allocated 282,256 192,499 Committed to be allocated 44,879 89,757 Unallocated 1,211,733 1,256,612 Total 1,538,868 1,538,868 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Common Share [Abstract] | |
Schedule of Earning per Share | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share amounts) 2020 2019 2020 2019 Net Income attributable to common shareholders $ 3,250 $ 2,531 $ 4,481 $ 4,749 Average number of common shares issued 19,474,950 19,521,324 19,475,599 19,525,241 Less: average unallocated ESOP shares ( 1,219,215 ) ( 528,896 ) ( 1,230,434 ) ( 538,797 ) average unvested restricted stock ( 105,629 ) ( 160,360 ) ( 113,744 ) ( 168,330 ) average treasury stock acquired — ( 73,333 ) — ( 73,333 ) Average number of common shares outstanding to calculate basic earnings per common share 18,150,106 18,758,735 18,131,421 18,744,781 Effect of dilutive unvested restricted stock and stock option awards 29,752 137,183 66,225 112,122 Average number of common shares outstanding to calculate diluted earnings per common share 18,179,858 18,895,918 18,197,646 18,856,903 Earnings per common share: Basic $ 0.18 $ 0.13 $ 0.25 $ 0.25 Diluted $ 0.18 $ 0.13 $ 0.25 $ 0.25 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-Based Compensation [Abstract] | |
Schedule of Fair Value of Options Granted Assumptions | 2020 Vesting period (years) 3 Expiration date (years) 10 Expected volatility 30.92 % Expected life (years) 7.5 Expected dividend yield —% Risk free interest rate 1.74 % Fair value per option $ 4.60 |
Schedule of Stock Option Grants Activity | Stock Option Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2019 816,057 $ 8.93 Granted 7,293 12.35 Forfeited ( 9,844 ) 8.61 Exercised — — Outstanding at June 30, 2020 813,506 $ 8.96 6.45 $ — Outstanding and expected to vest at June 30, 2020 813,506 $ 8.96 6.45 $ — Vested and Exercisable at June 30, 2020 465,994 $ 8.73 6.25 $ — Unrecognized compensation cost $ 693,000 Weighted average remaining recognition period (years) 1.74 |
Schedule of Activity in Restricted Stock Awards Under the Equity Plan | Unvested Restricted Stock Awards Weighted Average Grant Date Price Unvested restricted stock awards at January 1, 2020 140,019 $ 9.19 Granted 2,430 12.35 Forfeited ( 3,938 ) 8.61 Vested — — Unvested restricted stock awards at June 30, 2020 138,511 $ 9.26 Unrecognized compensation cost $ 917,000 Weighted average remaining recognition period (years) 1.70 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Information Regarding Operating Leases | June 30, December 31, 2020 2019 Weighted-average discount rate 3.53 % 3.78 % Range of lease expiration dates 3 - 15.5 years 4.5 - 16 years Range of lease renewal options 5 - 20 years 20 years Weighted-average remaining lease term 28.0 years 31.9 years |
Schedule of Maturities of Lease Liabilities | (Dollars in thousands) Fiscal Year-End Dollar Amount 2020 $ 126 2021 258 2022 261 2023 264 2024 270 Thereafter 6,604 Total lease payments 7,783 Less imputed interest ( 3,249 ) Total lease liabilities $ 4,534 |
Asset Purchase (Tables)
Asset Purchase (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Asset Purchase [Abstract] | |
Summary of Consideration Paid for the Warehouse Lending Business and the Amounts of Assets Acquired | (In thousands) Consideration: Cash $ 66,962 Recognized amounts of identifiable assets acquired: Loans 66,672 Accrued interest and fees 250 Premises and equipment 24 Other assets 16 Total identifiable assets $ 66,962 |
Corporate Structure (Narrative)
Corporate Structure (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020itemshares | Jun. 30, 2019 | Jun. 30, 2020USD ($)item$ / sharesshares | Jun. 30, 2019 | Dec. 31, 2019USD ($)shares | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Common Stock, Shares, Outstanding | shares | 19,472,310 | 19,472,310 | 19,473,818 | ||
Exchange ratio | 2.0212 | 2.0212 | 2.0212 | 2.0212 | |
Proceeds used to fund ESOP | $ | $ 8.2 | ||||
Purchase by ESOP (in shares) | shares | 816,992 | ||||
Number of banking offices | item | 7 | 7 | |||
Number of loan production offices | item | 2 | 2 | |||
Second-step Stock Offering [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Gross proceeds | $ | $ 102.1 | ||||
Common stock, shares sold (in shares) | shares | 10,212,397 | ||||
Common stock, share issue price per share (in dollars per share) | $ / shares | $ 10 | ||||
Proceeds used to fund ESOP | $ | $ 8.2 | ||||
Purchase by ESOP (in shares) | shares | 816,992 | ||||
Purchase by ESOP (in dollars per share) | $ / shares | $ 10 | ||||
Share issue, related expenses | $ | $ 2.4 | ||||
Net proceeds invested in Bank's operations | $ | $ 45.8 | ||||
Mutual Holding Company Mhc [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Percentage of ownership (as a percent) | 52.00% | 52.00% | |||
Common Stock, Shares, Outstanding | shares | 19,484,343 | 19,484,343 | |||
Exchange ratio | 2.0212 |
COVID-19 (Narrative) (Details)
COVID-19 (Narrative) (Details) $ in Millions | Jun. 30, 2020USD ($)loan |
COVID-19 [Abstract] | |
Number of modified loans | loan | 287 |
Total amount of modified loans | $ | $ 264.2 |
Percentage of modified loans in total loan portfolio | 20.60% |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Investment Securities [Abstract] | |||
Gross realized gains or losses on sales and calls | $ 0 | $ 216,000 | |
Gross losses realized | $ 103,000 | ||
Securities pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank | $ 25,900,000 | $ 30,600,000 |
Investment Securities (Summary
Investment Securities (Summary of Amortized Cost of Investment Securities Classified as Available-for-sale and their Approximate Fair Values) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 35,666 | $ 41,195 |
Gross Unrealized Gains | 1,338 | 666 |
Gross Unrealized Losses | 12 | 71 |
Fair Value | 36,992 | 41,790 |
State and Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 10,519 | 10,808 |
Gross Unrealized Gains | 582 | 398 |
Fair Value | 11,101 | 11,206 |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 4,906 | 5,433 |
Gross Unrealized Gains | 220 | 71 |
Gross Unrealized Losses | 4 | |
Fair Value | 5,126 | 5,500 |
Government Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 20,241 | 24,954 |
Gross Unrealized Gains | 536 | 197 |
Gross Unrealized Losses | 12 | 67 |
Fair Value | $ 20,765 | $ 25,084 |
Investment Securities (Schedule
Investment Securities (Schedule of Maturities of Debt Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-Sale, Amortized Cost | ||
Due after one year through five years | $ 1,204 | |
Due after five years through ten years | 912 | |
Due after ten years | 8,403 | |
Amortized Cost | 35,666 | $ 41,195 |
Available-for-Sale, Fair Value | ||
Due after one year through five years | 1,229 | |
Due after five years through ten years | 917 | |
Due after ten years | 8,955 | |
Fair Value | 36,992 | 41,790 |
Government Mortgage-backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost | 20,241 | 24,954 |
Available-for-Sale, Fair Value | ||
Fair Value | 20,765 | 25,084 |
Asset-backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost | 4,906 | 5,433 |
Available-for-Sale, Fair Value | ||
Fair Value | $ 5,126 | $ 5,500 |
Investment Securities (Schedu_2
Investment Securities (Schedule of Aggregate Fair Value and Unrealized Losses of Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 402 | $ 5,813 |
Unrealized Losses, Less than 12 Months | 3 | 12 |
Fair Value, 12 Months or Longer | 509 | 5,418 |
Unrealized Losses, 12 Months or Longer | 9 | 59 |
Fair Value, Total | 911 | 11,231 |
Unrealized Losses, Total | 12 | 71 |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 606 | |
Unrealized Losses, Less than 12 Months | 4 | |
Fair Value, Total | 606 | |
Unrealized Losses, Total | 4 | |
Government Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 402 | 5,207 |
Unrealized Losses, Less than 12 Months | 3 | 8 |
Fair Value, 12 Months or Longer | 509 | 5,418 |
Unrealized Losses, 12 Months or Longer | 9 | 59 |
Fair Value, Total | 911 | 10,625 |
Unrealized Losses, Total | $ 12 | $ 67 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($)contract | Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of TDR contracts | contract | 3 | 10 | 1 | ||
Troubled debt restructurings | $ 23,900,000 | $ 23,900,000 | $ 4,200,000 | ||
Payment defaults on TDR loans modified | 0 | $ 0 | $ 0 | $ 0 | |
Commercial Real Estate One [Member] | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of TDR contracts | contract | 7 | ||||
Troubled debt restructurings | 20,100,000 | $ 20,100,000 | |||
Impairment analysis performed and specific reserve | $ 1,400,000 | ||||
Commercial Real Estate One [Member] | Interest Only [Member] | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Troubled debt restructurings | 16,500,000 | $ 16,500,000 | |||
Period for interest-only at reduced rate | 3 years | ||||
Commercial Real Estate One [Member] | Restructured to Amortize and Payout [Member] | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Troubled debt restructurings | 2,100,000 | $ 2,100,000 | |||
Commercial Real Estate One [Member] | Restructured to Amortize and Payout [Member] | Minimum [Member] | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Pay out period | 10 years | ||||
Commercial Real Estate One [Member] | Advance for Capital Expenditures [Member] | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Troubled debt restructurings | 1,500,000 | $ 1,500,000 | |||
Period for interest-only at reduced rate | 3 years | ||||
Commercial Real Estate Two [Member] | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of TDR contracts | contract | 2 | ||||
Troubled debt restructurings | $ 165,000 | $ 165,000 | |||
Period for interest-only at reduced rate | 2 years | ||||
Impairment analysis performed and specific reserve | $ 8,000 | ||||
Commercial Real Estate [Member] | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of TDR contracts | contract | 2 | 9 | |||
Commercial [Member] | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of TDR contracts | contract | 1 | 1 | 1 | ||
Troubled debt restructurings | $ 81,000 | $ 1,900,000 | $ 81,000 | $ 1,900,000 | |
Impairment analysis performed and specific reserve | $ 40,000 | $ 136,000 |
Loans (Schedule of Loans) (Deta
Loans (Schedule of Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, Amount | $ 1,287,659 | $ 975,342 | ||||
Allowance for loan losses | (17,158) | $ (16,674) | (13,844) | $ (11,790) | $ (11,857) | $ (11,680) |
Deferred loan fees, net | (5,410) | (2,212) | ||||
Net loans | 1,265,091 | 959,286 | ||||
Commercial Real Estate [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, Amount | 421,836 | 418,356 | ||||
Allowance for loan losses | (6,758) | (6,499) | (6,104) | (4,579) | (4,247) | (4,152) |
Commercial [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, Amount | 760,828 | 451,791 | ||||
Allowance for loan losses | (8,387) | (8,057) | (6,086) | (5,289) | (5,746) | (5,742) |
Residential Real Estate [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, Amount | 39,401 | 45,695 | ||||
Allowance for loan losses | (207) | (213) | (254) | (231) | (240) | (251) |
Construction and Land Development [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, Amount | 57,087 | 46,763 | ||||
Allowance for loan losses | (955) | (789) | (749) | (649) | (734) | (738) |
Consumer [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, Amount | 8,507 | 12,737 | ||||
Allowance for loan losses | $ (851) | $ (1,049) | $ (650) | $ (928) | $ (812) | $ (710) |
Loans (Schedule of Allowance fo
Loans (Schedule of Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | $ 16,674 | $ 11,857 | $ 13,844 | $ 11,680 | ||
Charge-offs | (426) | (1,456) | (752) | (2,770) | ||
Recoveries | 38 | 35 | 95 | 64 | ||
Provision (credit) | 872 | 1,354 | 3,971 | 2,816 | ||
Ending balance | 17,158 | 11,790 | 17,158 | 11,790 | ||
Allowance for loan losses: | ||||||
Ending balance: Individually evaluated for impairment | $ 1,901 | $ 1,682 | ||||
Ending balance: Collectively evaluated for impairment | 15,257 | 12,162 | ||||
Total allowance for loan losses ending balance | 16,674 | 11,790 | 13,844 | 11,680 | 17,158 | 13,844 |
Loans: | ||||||
Ending balance: Individually evaluated for impairment | 27,050 | 24,663 | ||||
Ending balance: Collectively evaluated for impairment | 1,260,609 | 950,679 | ||||
Total loans ending balance | 1,287,659 | 975,342 | ||||
Commercial Real Estate [Member] | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 6,499 | 4,247 | 6,104 | 4,152 | ||
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | 259 | 332 | 654 | 427 | ||
Ending balance | 6,758 | 4,579 | 6,758 | 4,579 | ||
Allowance for loan losses: | ||||||
Ending balance: Individually evaluated for impairment | 1,480 | 1,508 | ||||
Ending balance: Collectively evaluated for impairment | 5,278 | 4,596 | ||||
Total allowance for loan losses ending balance | 6,758 | 4,579 | 6,758 | 4,152 | 6,758 | 6,104 |
Loans: | ||||||
Ending balance: Individually evaluated for impairment | 22,269 | 20,990 | ||||
Ending balance: Collectively evaluated for impairment | 399,567 | 397,366 | ||||
Total loans ending balance | 421,836 | 418,356 | ||||
Commercial [Member] | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 8,057 | 5,746 | 6,086 | 5,742 | ||
Charge-offs | (142) | (1,190) | (239) | (2,223) | ||
Recoveries | 5 | 7 | 15 | |||
Provision (credit) | 472 | 728 | 2,533 | 1,755 | ||
Ending balance | 8,387 | 5,289 | 8,387 | 5,289 | ||
Allowance for loan losses: | ||||||
Ending balance: Individually evaluated for impairment | 421 | 174 | ||||
Ending balance: Collectively evaluated for impairment | 7,966 | 5,912 | ||||
Total allowance for loan losses ending balance | 8,387 | 5,289 | 8,387 | 5,289 | 8,387 | 6,086 |
Loans: | ||||||
Ending balance: Individually evaluated for impairment | 4,618 | 3,326 | ||||
Ending balance: Collectively evaluated for impairment | 756,210 | 448,465 | ||||
Total loans ending balance | 760,828 | 451,791 | ||||
Residential Real Estate [Member] | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 213 | 240 | 254 | 251 | ||
Charge-offs | ||||||
Recoveries | 4 | 4 | 4 | |||
Provision (credit) | (6) | (13) | (51) | (24) | ||
Ending balance | 207 | 231 | 207 | 231 | ||
Allowance for loan losses: | ||||||
Ending balance: Collectively evaluated for impairment | 207 | 254 | ||||
Total allowance for loan losses ending balance | 207 | 231 | 254 | 251 | 207 | 254 |
Loans: | ||||||
Ending balance: Individually evaluated for impairment | 163 | 182 | ||||
Ending balance: Collectively evaluated for impairment | 39,238 | 45,513 | ||||
Total loans ending balance | 39,401 | 45,695 | ||||
Construction and Land Development [Member] | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 789 | 734 | 749 | 738 | ||
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | 166 | (85) | 206 | (89) | ||
Ending balance | 955 | 649 | 955 | 649 | ||
Allowance for loan losses: | ||||||
Ending balance: Collectively evaluated for impairment | 955 | 749 | ||||
Total allowance for loan losses ending balance | 955 | 649 | 749 | 738 | 955 | 749 |
Loans: | ||||||
Ending balance: Individually evaluated for impairment | 165 | |||||
Ending balance: Collectively evaluated for impairment | 57,087 | 46,598 | ||||
Total loans ending balance | 57,087 | 46,763 | ||||
Consumer [Member] | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,049 | 812 | 650 | 710 | ||
Charge-offs | (284) | (266) | (513) | (547) | ||
Recoveries | 38 | 26 | 84 | 45 | ||
Provision (credit) | 48 | 356 | 630 | 720 | ||
Ending balance | 851 | 928 | 851 | 928 | ||
Allowance for loan losses: | ||||||
Ending balance: Collectively evaluated for impairment | 851 | 650 | ||||
Total allowance for loan losses ending balance | 851 | 928 | 650 | 928 | 851 | 650 |
Loans: | ||||||
Ending balance: Collectively evaluated for impairment | 8,507 | 12,737 | ||||
Total loans ending balance | 8,507 | 12,737 | ||||
Unallocated [Member] | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 67 | 78 | 1 | 87 | ||
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | (67) | 36 | (1) | 27 | ||
Ending balance | 114 | 114 | ||||
Allowance for loan losses: | ||||||
Ending balance: Collectively evaluated for impairment | 1 | |||||
Total allowance for loan losses ending balance | $ 67 | $ 114 | $ 1 | $ 87 | $ 1 |
Loans (Schedule of Non-Accrual
Loans (Schedule of Non-Accrual Loans and Loan Delinquencies by Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 2,448 | $ 23,268 |
Total Current | 1,285,211 | 952,074 |
Total Loans | 1,287,659 | 975,342 |
Non-accrual Loans | 26,039 | 5,827 |
30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 366 | 1,828 |
60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 253 | 18,553 |
90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,829 | 2,887 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 786 | 20,097 |
Total Current | 421,050 | 398,259 |
Total Loans | 421,836 | 418,356 |
Non-accrual Loans | 20,865 | 1,701 |
Commercial Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 473 | |
Commercial Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18,256 | |
Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 786 | 1,368 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 351 | 1,098 |
Total Current | 760,477 | 450,693 |
Total Loans | 760,828 | 451,791 |
Non-accrual Loans | 4,309 | 2,955 |
Commercial [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 529 | |
Commercial [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 50 | 85 |
Commercial [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 301 | 484 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,234 | 1,701 |
Total Current | 38,167 | 43,994 |
Total Loans | 39,401 | 45,695 |
Non-accrual Loans | 844 | 969 |
Residential Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 328 | 715 |
Residential Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 185 | 154 |
Residential Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 721 | 832 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 165 | |
Total Current | 57,087 | 46,598 |
Total Loans | 57,087 | 46,763 |
Non-accrual Loans | 165 | |
Construction and Land Development [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 165 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 77 | 207 |
Total Current | 8,430 | 12,530 |
Total Loans | 8,507 | 12,737 |
Non-accrual Loans | 21 | 37 |
Consumer [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 38 | 111 |
Consumer [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18 | 58 |
Consumer [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 21 | $ 38 |
Loans (Schedule of Impaired Loa
Loans (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
With no related allowance recorded: | |||||
Recorded Investment | $ 2,083 | $ 2,083 | $ 3,765 | ||
Unpaid Principal Balance | 2,090 | 2,090 | 4,174 | ||
Average Recorded Investment | 2,183 | $ 3,266 | 2,230 | $ 3,342 | |
Interest Income Recognized | 15 | 19 | 43 | 51 | |
With an allowance recorded: | |||||
Recorded Investment | 24,967 | 24,967 | 20,898 | ||
Unpaid Principal Balance | 25,637 | 25,637 | 21,006 | ||
Related Allowance | 1,901 | 1,901 | 1,682 | ||
Average Recorded Investment | 25,363 | 4,701 | 25,532 | 4,994 | |
Interest Income Recognized | 41 | 253 | |||
Total | |||||
Recorded Investment | 27,050 | 27,050 | 24,663 | ||
Unpaid Principal Balance | 27,727 | 27,727 | 25,180 | ||
Related Allowance | 1,901 | 1,901 | 1,682 | ||
Average Recorded Investment | 27,546 | 7,967 | 27,762 | 8,336 | |
Interest Income Recognized | 56 | 19 | 296 | 51 | |
Commercial Real Estate [Member] | |||||
With no related allowance recorded: | |||||
Recorded Investment | 1,557 | 1,557 | 2,070 | ||
Unpaid Principal Balance | 1,557 | 1,557 | 2,082 | ||
Average Recorded Investment | 1,565 | 1,831 | 1,573 | 1,838 | |
Interest Income Recognized | 9 | 9 | 28 | 30 | |
With an allowance recorded: | |||||
Recorded Investment | 20,712 | 20,712 | 18,920 | ||
Unpaid Principal Balance | 20,792 | 20,792 | 18,921 | ||
Related Allowance | 1,480 | 1,480 | 1,508 | ||
Average Recorded Investment | 20,879 | 20,936 | |||
Interest Income Recognized | 41 | 252 | |||
Total | |||||
Recorded Investment | 22,269 | 22,269 | 20,990 | ||
Unpaid Principal Balance | 22,349 | 22,349 | 21,003 | ||
Related Allowance | 1,480 | 1,480 | 1,508 | ||
Average Recorded Investment | 22,444 | 1,831 | 22,509 | 1,838 | |
Interest Income Recognized | 50 | 9 | 280 | 30 | |
Commercial [Member] | |||||
With no related allowance recorded: | |||||
Recorded Investment | 363 | 363 | 1,348 | ||
Unpaid Principal Balance | 370 | 370 | 1,745 | ||
Average Recorded Investment | 371 | 1,053 | 383 | 1,120 | |
Interest Income Recognized | 4 | 7 | 10 | 13 | |
With an allowance recorded: | |||||
Recorded Investment | 4,255 | 4,255 | 1,978 | ||
Unpaid Principal Balance | 4,845 | 4,845 | 2,085 | ||
Related Allowance | 421 | 421 | 174 | ||
Average Recorded Investment | 4,484 | 4,701 | 4,596 | 4,994 | |
Interest Income Recognized | 1 | ||||
Total | |||||
Recorded Investment | 4,618 | 4,618 | 3,326 | ||
Unpaid Principal Balance | 5,215 | 5,215 | 3,830 | ||
Related Allowance | 421 | 421 | 174 | ||
Average Recorded Investment | 4,855 | 5,754 | 4,979 | 6,114 | |
Interest Income Recognized | 4 | 7 | 11 | 13 | |
Residential Real Estate [Member] | |||||
With no related allowance recorded: | |||||
Recorded Investment | 163 | 163 | 182 | ||
Unpaid Principal Balance | 163 | 163 | 182 | ||
Average Recorded Investment | 164 | 382 | 164 | 384 | |
Interest Income Recognized | 2 | 3 | 5 | 8 | |
Total | |||||
Recorded Investment | 163 | 163 | 182 | ||
Unpaid Principal Balance | 163 | 163 | 182 | ||
Average Recorded Investment | 164 | 382 | 164 | 384 | |
Interest Income Recognized | 2 | $ 3 | 5 | $ 8 | |
Construction and Land Development [Member] | |||||
With no related allowance recorded: | |||||
Recorded Investment | 165 | ||||
Unpaid Principal Balance | 165 | ||||
Average Recorded Investment | 83 | 110 | |||
Total | |||||
Recorded Investment | 165 | ||||
Unpaid Principal Balance | $ 165 | ||||
Average Recorded Investment | $ 83 | $ 110 |
Loans (Schedule of Troubled Deb
Loans (Schedule of Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($)contract | Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 3 | 10 | 1 |
Pre- Modification Outstanding Recorded Investment | $ 246 | $ 18,892 | $ 1,963 |
Post-Modification Outstanding Recorded Investment | $ 246 | $ 20,392 | $ 1,963 |
Commercial Real Estate [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 2 | 9 | |
Pre- Modification Outstanding Recorded Investment | $ 165 | $ 18,811 | |
Post-Modification Outstanding Recorded Investment | $ 165 | $ 20,311 | |
Commercial [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 1 | 1 |
Pre- Modification Outstanding Recorded Investment | $ 81 | $ 81 | $ 1,963 |
Post-Modification Outstanding Recorded Investment | $ 81 | $ 81 | $ 1,963 |
Loans (Schedule of Loans by Ris
Loans (Schedule of Loans by Risk Rating and Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 1,287,659 | $ 975,342 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,182,108 | 875,891 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 28,530 | 15,980 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 30,245 | 26,418 |
Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 46,776 | 57,053 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 421,836 | 418,356 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 386,553 | 396,217 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 14,418 | 1,936 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 20,865 | 20,203 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 760,828 | 451,791 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 738,468 | 433,076 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 14,112 | 14,044 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,248 | 4,671 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 39,401 | 45,695 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,132 | 1,379 |
Residential Real Estate [Member] | Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 38,269 | 44,316 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 57,087 | 46,763 |
Construction and Land Development [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 57,087 | 46,598 |
Construction and Land Development [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 165 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,507 | 12,737 |
Consumer [Member] | Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 8,507 | $ 12,737 |
Deposits (Schedule of Deposit B
Deposits (Schedule of Deposit Balances by Type) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
NOW and demand | $ 502,772 | $ 369,423 |
Regular savings | 154,747 | 115,593 |
Money market deposits | 291,872 | 270,471 |
Total non-certificate accounts | 949,391 | 755,487 |
Certificate accounts of $250,000 or more | 19,610 | 15,575 |
Certificate accounts less than $250,000 | 151,484 | 78,843 |
Total certificate accounts | 171,094 | 94,418 |
Total deposits | $ 1,120,485 | $ 849,905 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Federal Reserve Bank of Boston's [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Overnight borrowings | $ 25 |
Interest rate on overnight borrowings | 0.25% |
Federal Home Loan Bank of Boston [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Aggregate borrowings from FHLB | $ 17 |
Federal Home Loan Bank of Boston [Member] | Minimum [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Interest rates on FHLB advances ranged from | 1.96% |
Term of FHLB borrowings | 1 year |
Federal Home Loan Bank of Boston [Member] | Maximum [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Interest rates on FHLB advances ranged from | 3.01% |
Federal Home Loan Bank of Boston [Member] | Weighted Average [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Interest rates on FHLB advances ranged from | 2.54% |
Borrowings (Schedule of Maturit
Borrowings (Schedule of Maturities of Advances from FHLB and FRB) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Borrowings [Abstract] | ||
2020 | $ 28,521 | |
2021 | 5,000 | |
2023 | 8,500 | |
Total | $ 42,021 | $ 24,998 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | $ 36,992 | $ 41,790 |
State and Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 11,101 | 11,206 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 5,126 | 5,500 |
Government Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 20,765 | 25,084 |
Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 36,992 | 41,790 |
Recurring Basis [Member] | State and Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 11,101 | 11,206 |
Recurring Basis [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 5,126 | 5,500 |
Recurring Basis [Member] | Government Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 20,765 | 25,084 |
Recurring Basis [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 36,992 | 41,790 |
Recurring Basis [Member] | Level 2 [Member] | State and Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 11,101 | 11,206 |
Recurring Basis [Member] | Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | 5,126 | 5,500 |
Recurring Basis [Member] | Level 2 [Member] | Government Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale (at fair value) | $ 20,765 | $ 25,084 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - Nonrecurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 4,387 | $ 2,020 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 4,387 | 2,020 |
Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 553 | 215 |
Commercial Real Estate [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 553 | 215 |
Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,834 | 1,805 |
Commercial [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 3,834 | $ 1,805 |
Fair Value Measurements (Sche_3
Fair Value Measurements (Schedule of Valuation Methodology and Unobservable Inputs for Level 3 Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - Nonrecurring Basis [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | $ 4,387 | $ 2,020 |
Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | 4,387 | 2,020 |
Commercial Real Estate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | 553 | 215 |
Commercial Real Estate [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | $ 553 | $ 215 |
Commercial Real Estate [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 6.00% | 6.00% |
Commercial Real Estate [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 10.00% | 10.00% |
Commercial [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | $ 3,834 | $ 1,805 |
Commercial [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | $ 3,834 | $ 1,805 |
Fair Value Measurements (Sche_4
Fair Value Measurements (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments, Held or Issued for Purposes Other Than Trading) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||||
Cash and cash equivalents | $ 38,178 | $ 59,658 | $ 28,281 | $ 28,613 |
Available-for-sale securities | 36,992 | 41,790 | ||
Federal Home Loan Bank of Boston stock | 1,050 | 1,416 | ||
Loans, net | 1,265,091 | 959,286 | ||
Accrued interest receivable | 4,756 | 2,854 | ||
Financial liabilities: | ||||
Borrowings | 42,021 | 24,998 | ||
Carrying Amount [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 38,178 | 59,658 | ||
Available-for-sale securities | 36,992 | 41,790 | ||
Federal Home Loan Bank of Boston stock | 1,050 | 1,416 | ||
Loans, net | 1,265,091 | 959,286 | ||
Accrued interest receivable | 4,756 | 2,854 | ||
Financial liabilities: | ||||
Deposits | 1,120,485 | 849,905 | ||
Borrowings | 42,021 | 24,998 | ||
Fair Value [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 38,178 | 59,658 | ||
Available-for-sale securities | 36,992 | 41,790 | ||
Loans, net | 1,278,953 | 958,270 | ||
Accrued interest receivable | 4,756 | 2,854 | ||
Financial liabilities: | ||||
Deposits | 1,121,459 | 850,774 | ||
Borrowings | 42,710 | 25,351 | ||
Level 1 [Member] | Fair Value [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 38,178 | 59,658 | ||
Level 2 [Member] | Fair Value [Member] | ||||
Financial assets: | ||||
Available-for-sale securities | 36,992 | 41,790 | ||
Accrued interest receivable | 4,756 | 2,854 | ||
Financial liabilities: | ||||
Deposits | 1,121,459 | 850,774 | ||
Borrowings | 42,710 | 25,351 | ||
Level 3 [Member] | Fair Value [Member] | ||||
Financial assets: | ||||
Loans, net | $ 1,278,953 | $ 958,270 |
Regulatory Capital (Narrative)
Regulatory Capital (Narrative) (Details) - USD ($) $ in Billions | 6 Months Ended | ||
Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common equity Tier 1 ("CETI") capital ratio | 4.50% | 4.50% | |
Minimum Tier 1 capital to risk-weighted assets ratio | 6.00% | 6.00% | |
Minimum total capital to risk-weighted assets ratio | 8.00% | 8.00% | |
Minimum Tier 1 leverage ratio | 4.00% | 4.00% | |
CETI capital ratio | 6.50% | 6.50% | |
Tier 1 ratio | 8.00% | 8.00% | |
Total risk based capital ratio | 10.00% | 10.00% | |
Tier 1 leverage ratio | 5.00% | ||
Capital conservation buffer above required capital ratios in beginning January 1, 2016 | 2.50% | ||
Minimum [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 ratio | 8.00% | ||
Growth Act [Member] | Minimum [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
CBLR leverage ratio | 9.00% | 9.00% | |
Growth Act [Member] | Maximum [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
CBLR total consolidated assets | $ 10 | ||
CARES Act [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
CBLR leverage ratio | 8.00% |
Regulatory Capital (Schedule of
Regulatory Capital (Schedule of Bank's Actual Capital Amounts and Ratios) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Regulatory Capital [Abstract] | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 189,668 | $ 181,135 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 14.72% | 17.62% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 103,053 | $ 82,238 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 128,816 | $ 102,798 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Amount | $ 173,553 | $ 168,273 |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Ratio | 13.47% | 16.37% |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 77,290 | $ 61,679 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 103,053 | $ 82,238 |
Tier 1 Capital (to Risk Weighted Assets),To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 173,553 | $ 168,273 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Ratio | 13.47% | 16.37% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 57,967 | $ 46,259 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 83,731 | $ 66,819 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets), Actual Capital, Amount | $ 173,553 | $ 168,273 |
Tier 1 Capital (to Average Assets), Actual Capital, Ratio | 13.10% | 15.18% |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Amount | $ 52,991 | $ 44,352 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 66,239 | $ 55,440 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | |
Employee Stock Ownership Plan [Abstract] | ||||||
ESOP shares | shares | 1,538,868 | 1,538,868 | 1,538,868 | 721,876 | ||
Initial stock offering | $ 3,600 | |||||
ESOP payable term | 15 years | 15 years | ||||
Additional amount funded | $ 8,200 | |||||
ESOP prime rate percentage | 4.75% | |||||
Purchase by ESOP (in shares) | shares | 816,992 | |||||
Purchase by ESOP (in dollars per share) | $ / shares | $ 10 | |||||
Purchase by ESOP, as a percentage of shares sold in the Company's second-step offering | 8.00% | |||||
Average price of unallocated shares | $ / shares | $ 8.20 | |||||
Number of shares committed to be released per year through 2033 | shares | 89,757 | 89,757 | ||||
Fair value of unallocated shares | $ 9,500 | $ 9,500 | ||||
Exchange ratio | 2.0212 | 2.0212 | 2.0212 | 2.0212 | ||
Compensation expense | $ 194 | $ 145 | $ 444 | $ 281 |
Employee Stock Ownership Plan_3
Employee Stock Ownership Plan (Schedule of Shares Held by the ESOP) (Details) - shares | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2015 |
Share-Based Compensation | |||
Allocated | 282,256 | 192,499 | |
Committed to be allocated | 44,879 | 89,757 | |
Unallocated | 1,211,733 | 1,256,612 | |
Total | 1,538,868 | 1,538,868 | 721,876 |
Earnings Per Common Share (Sche
Earnings Per Common Share (Schedule of Earning per Share) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | ||
Earnings Per Common Share [Abstract] | |||||
Net Income attributable to common shareholders | $ | $ 3,250 | $ 2,531 | $ 4,481 | $ 4,749 | |
Average number of common shares issued | 19,474,950 | 19,521,324 | 19,475,599 | 19,525,241 | |
Less: | |||||
average unallocated ESOP shares | (1,219,215) | (528,896) | (1,230,434) | (538,797) | |
average unvested restricted stock | (105,629) | (160,360) | (113,744) | (168,330) | |
average treasury stock acquired | (73,333) | (73,333) | |||
Average number of common shares outstanding to calculate basic earnings per common share | [1] | 18,150,106 | 18,758,735 | 18,131,421 | 18,744,781 |
Effect of dilutive unvested restricted stock and stock option awards | 29,752 | 137,183 | 66,225 | 112,122 | |
Average number of common shares outstanding to calculate diluted earnings per common share | [1] | 18,179,858 | 18,895,918 | 18,197,646 | 18,856,903 |
Earnings per common share: | |||||
Basic (in dollars per share) | $ / shares | [1] | $ 0.18 | $ 0.13 | $ 0.25 | $ 0.25 |
Diluted (in dollars per share) | $ / shares | [1] | $ 0.18 | $ 0.13 | $ 0.25 | $ 0.25 |
Exchange ratio | 2.0212 | 2.0212 | 2.0212 | 2.0212 | |
[1] | Amounts related to periods prior to the date of the Conversion (October 16, 2019) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion ( 2.0212 -to-one). |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stock Option [Member] | ||||
Share-Based Compensation | ||||
Options expiration period | 10 years | |||
Vesting period (years) | 3 years | |||
Share based compensation expenses | $ 104 | $ 103 | $ 214 | $ 201 |
Restricted Stock [Member] | ||||
Share-Based Compensation | ||||
Share based compensation expenses | $ 138 | $ 142 | $ 289 | $ 309 |
2016 Equity Incentive Plan (the "Equity Plan") [Member] | Stock Option [Member] | ||||
Share-Based Compensation | ||||
Shares reserved for future issuance | 902,344 | 902,344 | ||
Options expiration period | 10 years | |||
2016 Equity Incentive Plan (the "Equity Plan") [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation | ||||
Shares reserved for future issuance | 360,935 | 360,935 | ||
Minimum [Member] | ||||
Share-Based Compensation | ||||
Vesting period (years) | 3 years | |||
Maximum [Member] | 2016 Equity Incentive Plan (the "Equity Plan") [Member] | ||||
Share-Based Compensation | ||||
Vesting period (years) | 5 years |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Fair Value of Options Granted Assumptions) (Details) - Stock Option [Member] | 6 Months Ended |
Jun. 30, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (years) | 3 years |
Expiration date (years) | 10 years |
Expected volatility | 30.92% |
Expected life (years) | 7 years 6 months |
Expected dividend yield | |
Risk free interest rate | 1.74% |
Fair value per option | $ 4.60 |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Stock Option Grants Activity) (Details) - Stock Option [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Stock Option Awards | |
Outstanding at December 31, 2019 | shares | 816,057 |
Granted | shares | 7,293 |
Forfeited | shares | (9,844) |
Exercised | shares | |
Outstanding at June 30, 2020 | shares | 813,506 |
Outstanding and expected to vest at June 30, 2020 | shares | 813,506 |
Vested and Exercisable at June 30, 2020 | shares | 465,994 |
Unrecognized compensation cost | $ | $ 693,000 |
Weighted average remaining recognition period (years) | 1 year 8 months 26 days |
Weighted Average Exercise Price | |
Outstanding at December 31, 2019 | $ / shares | $ 8.93 |
Granted | $ / shares | 12.35 |
Forfeited | $ / shares | 8.61 |
Exercised | $ / shares | |
Outstanding at June 30, 2020 | $ / shares | 8.96 |
Outstanding and expected to vest at June 30, 2020 | $ / shares | 8.96 |
Vested and Exercisable at June 30, 2020 | $ / shares | $ 8.73 |
Weighted Average Remaining Contractual Term (years) | |
Outstanding at June 30, 2020 | 6 years 5 months 12 days |
Outstanding and expected to vest at June 30, 2020 | 6 years 5 months 12 days |
Vested and Exercisable at June 30, 2020 | 6 years 3 months |
Share-Based Compensation (Sch_3
Share-Based Compensation (Schedule of Activity in Restricted Stock Awards Under the Equity Plan) (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Unvested Restricted Stock Awards | |
Unvested restricted stock awards at January 1, 2020 | shares | 140,019 |
Granted | shares | 2,430 |
Forfeited | shares | (3,938) |
Vested | shares | |
Unvested restricted stock awards at June 30, 2020 | shares | 138,511 |
Unrecognized compensation cost | $ | $ 917,000 |
Weighted average remaining recognition period (years) | 1 year 8 months 12 days |
Weighted Average Grant Date Price | |
Unvested restricted stock awards at January 1, 2020 | $ / shares | $ 9.19 |
Granted | $ / shares | 12.35 |
Forfeited | $ / shares | 8.61 |
Vested | $ / shares | |
Unvested restricted stock awards at June 30, 2020 | $ / shares | $ 9.26 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020USD ($)item | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Leases [Abstract] | |||
Operating right-of-use assets | $ 4,336 | $ 3,713 | |
Operating lease liabilities | $ 4,534 | $ 3,877 | |
Number of leases branch location | item | 2 | ||
Number of production offices | item | 1 | ||
Operating leases rent expense | $ 150 | $ 144 |
Leases (Schedule of Information
Leases (Schedule of Information Regarding Operating Leases) (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Line Items] | ||
Weighted-average discount rate - operating leases | 3.53% | 3.78% |
Range of lease renewal options | 20 years | |
Weighted-average remaining lease term - operating leases | 28 years | 31 years 10 months 24 days |
Minimum [Member] | ||
Leases [Line Items] | ||
Range of lease expiration dates | 3 years | 4 years 6 months |
Range of lease renewal options | 5 years | |
Maximum [Member] | ||
Leases [Line Items] | ||
Range of lease expiration dates | 15 years 6 months | 16 years |
Range of lease renewal options | 20 years |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fiscal Year-End | ||
2020 | $ 126 | |
2021 | 258 | |
2022 | 261 | |
2023 | 264 | |
2024 | 270 | |
Thereafter | 6,604 | |
Total lease payments | 7,783 | |
Less imputed interest | (3,249) | |
Total lease liabilities | $ 4,534 | $ 3,877 |
Asset Purchase (Narrative) (Det
Asset Purchase (Narrative) (Details) - Warehouse Lending Business [Member] | 6 Months Ended |
Jun. 30, 2020USD ($)employee | |
Business Acquisition [Line Items] | |
Number of employees assumed for employment contracts | employee | 6 |
Assumption of employment contracts | $ 80,000 |
Consideration: | |
Cash | 66,962,000 |
Recognized amounts of identifiable assets acquired: | |
Loans | 66,672,000 |
Accrued interest and fees | 250,000 |
Premises and equipment | 24,000 |
Other assets | 16,000 |
Total identifiable assets | $ 66,962,000 |