Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 06, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Period End Date | Jun. 30, 2021 | |
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 | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,096,001 | |
Entity Central Index Key | 0001778784 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 17,808 | $ 11,830 |
Short-term investments | 122,576 | 71,989 |
Cash and cash equivalents | 140,384 | 83,819 |
Debt securities available-for-sale (at fair value) | 32,597 | 32,215 |
Federal Home Loan Bank stock, at cost | 785 | 895 |
Loans, net of allowance for loan losses of $19,412 and $18,518 as of June 30, 2021 and December 31, 2020, respectively | 1,334,635 | 1,314,810 |
Bank owned life insurance | 37,126 | 36,684 |
Premises and equipment, net | 14,471 | 14,716 |
Accrued interest receivable | 5,821 | 6,371 |
Right-of-use assets | 4,180 | 4,258 |
Other assets | 15,107 | 12,013 |
Total assets | 1,585,106 | 1,505,781 |
Deposits: | ||
Noninterest-bearing | 484,066 | 383,079 |
Interest-bearing | 837,723 | 854,349 |
Total deposits | 1,321,789 | 1,237,428 |
Long-term borrowings | 13,500 | 13,500 |
Operating lease liabilities | 4,438 | 4,488 |
Other liabilities | 13,771 | 14,509 |
Total liabilities | 1,353,498 | 1,269,925 |
Shareholders' equity: | ||
Preferred stock; authorized 50,000 shares: no shares issued and outstanding | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 18,246,136 and 19,047,544 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 182 | 191 |
Additional paid-in capital | 128,666 | 139,450 |
Retained earnings | 110,752 | 104,508 |
Accumulated other comprehensive income | 999 | 1,058 |
Unearned compensation - ESOP | (8,991) | (9,351) |
Total shareholders' equity | 231,608 | 235,856 |
Total liabilities and shareholders' equity | $ 1,585,106 | $ 1,505,781 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Loans, net of allowance for loan losses | $ 19,412 | $ 18,518 |
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 | 18,246,136 | 19,047,544 |
Common stock, shares outstanding | 18,246,136 | 19,047,544 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 15,298 | $ 14,391 | $ 30,995 | $ 28,151 |
Interest and dividends on debt securities available-for-sale | 186 | 259 | 355 | 517 |
Interest on short-term investments | 29 | 4 | 52 | 75 |
Total interest and dividend income | 15,513 | 14,654 | 31,402 | 28,743 |
Interest expense: | ||||
Interest on deposits | 839 | 1,443 | 1,750 | 3,089 |
Interest on borrowings | 71 | 176 | 141 | 547 |
Total interest expense | 910 | 1,619 | 1,891 | 3,636 |
Net interest and dividend income | 14,603 | 13,035 | 29,511 | 25,107 |
Provision for loan losses | 1,669 | 872 | 2,422 | 3,971 |
Net interest and dividend income after provision for loan losses | 12,934 | 12,163 | 27,089 | 21,136 |
Noninterest income: | ||||
Customer service fees on deposit accounts | 433 | 264 | 812 | 616 |
Service charges and fees - other | 438 | 261 | 788 | 721 |
Bank owned life insurance income | 223 | 171 | 442 | 350 |
Other income | 9 | 8 | 79 | 27 |
Total noninterest income | 1,103 | 704 | 2,121 | 1,714 |
Noninterest expense: | ||||
Salaries and employee benefits | 6,704 | 5,799 | 13,181 | 11,201 |
Occupancy expense | 417 | 429 | 829 | 870 |
Equipment expense | 127 | 144 | 249 | 281 |
Deposit insurance | 111 | 93 | 217 | 124 |
Data processing | 314 | 222 | 635 | 448 |
Marketing expense | 81 | 71 | 118 | 135 |
Professional fees | 469 | 367 | 900 | 753 |
Directors' compensation | 261 | 171 | 515 | 365 |
Software depreciation and implemenation | 241 | 238 | 487 | 438 |
Write down of other assets and receivables | 500 | |||
Other | 803 | 827 | 1,610 | 1,552 |
Total noninterest expense | 9,528 | 8,361 | 18,741 | 16,667 |
Income before income tax expense | 4,509 | 4,506 | 10,469 | 6,183 |
Income tax expense | 1,343 | 1,256 | 3,006 | 1,702 |
Net income | $ 3,166 | $ 3,250 | $ 7,463 | $ 4,481 |
Earnings per share: | ||||
Basic | $ 0.19 | $ 0.18 | $ 0.44 | $ 0.25 |
Diluted | $ 0.18 | $ 0.18 | $ 0.43 | $ 0.25 |
Weighted Average Shares: | ||||
Basic | 16,778,698 | 18,150,106 | 17,019,889 | 18,131,421 |
Diluted | 17,338,662 | 18,179,858 | 17,442,411 | 18,197,646 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 3,166 | $ 3,250 | $ 7,463 | $ 4,481 |
Other comprehensive income: | ||||
Unrealized holding gains (losses) arising during the period on debt securities available-for-sale | 160 | 721 | (84) | 731 |
Unrealized gain (loss) | 160 | 721 | (84) | 731 |
Income tax effect | (34) | (160) | 25 | (187) |
Total other comprehensive income (loss) | 126 | 561 | (59) | 544 |
Comprehensive income | $ 3,292 | $ 3,811 | $ 7,404 | $ 5,025 |
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] | Total |
Balance at Dec. 31, 2019 | $ 195 | $ 146,174 | $ 94,159 | $ 458 | $ (10,053) | $ 230,933 |
Balance (in shares) at Dec. 31, 2019 | 19,473,818 | |||||
Net income | 4,481 | 4,481 | ||||
Dividends declared | (583) | (583) | ||||
Other comprehensive (loss) income | 544 | 544 | ||||
Stock-based compensation expense, net of forfeitures | 503 | 503 | ||||
Restricted stock award grants, net of forfeitures (in shares) | (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 | 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 | 19,476,248 | |||||
Net income | 3,250 | 3,250 | ||||
Dividends declared | (583) | (583) | ||||
Other comprehensive (loss) income | 561 | 561 | ||||
Stock-based compensation expense, net of forfeitures | 242 | 242 | ||||
Restricted stock award grants, net of forfeitures (in shares) | (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 | 19,472,310 | |||||
Balance at Dec. 31, 2020 | $ 191 | 139,450 | 104,508 | 1,058 | (9,351) | 235,856 |
Balance (in shares) at Dec. 31, 2020 | 19,047,544 | |||||
Net income | 7,463 | 7,463 | ||||
Dividends declared | (1,219) | (1,219) | ||||
Other comprehensive (loss) income | (59) | (59) | ||||
Stock-based compensation expense, net of forfeitures | 1,278 | 1,278 | ||||
Restricted stock award grants, net of forfeitures (in shares) | 60,000 | |||||
Repurchase of common stock | $ (9) | (12,356) | (12,365) | |||
Repurchase of common stock (in shares) | (869,099) | |||||
Shares surrendered related to tax withholdings on restricted stock awards | (2) | (2) | ||||
Shares surrendered related to tax withholdings on restricted stock awards (in shares) | (202) | |||||
Stock options exercised, net | 9 | 9 | ||||
Stock options exercised, net (in shares) | 7,893 | |||||
ESOP shares earned | 287 | 360 | 647 | |||
Balance at Jun. 30, 2021 | $ 182 | 128,666 | 110,752 | 999 | (8,991) | 231,608 |
Balance (in shares) at Jun. 30, 2021 | 18,246,136 | |||||
Balance at Mar. 31, 2021 | $ 186 | 133,981 | 108,273 | 873 | (9,171) | 234,142 |
Balance (in shares) at Mar. 31, 2021 | 18,574,127 | |||||
Net income | 3,166 | 3,166 | ||||
Dividends declared | (687) | (687) | ||||
Other comprehensive (loss) income | 126 | 126 | ||||
Stock-based compensation expense, net of forfeitures | 674 | 674 | ||||
Restricted stock award grants, net of forfeitures (in shares) | 60,000 | |||||
Repurchase of common stock | $ (4) | (6,179) | (6,183) | |||
Repurchase of common stock (in shares) | (395,884) | |||||
Stock options exercised, net | 9 | 9 | ||||
Stock options exercised, net (in shares) | 7,893 | |||||
ESOP shares earned | 181 | 180 | 361 | |||
Balance at Jun. 30, 2021 | $ 182 | $ 128,666 | $ 110,752 | $ 999 | $ (8,991) | $ 231,608 |
Balance (in shares) at Jun. 30, 2021 | 18,246,136 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Abstract] | ||||
Dividends declared, per share | $ 0.04 | $ 0.03 | $ 0.04 | $ 0.03 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 7,463 | $ 4,481 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of securities premiums, net of accretion | 91 | 144 |
ESOP expense | 647 | 444 |
Change in deferred loan fees, net | 1,071 | 3,198 |
Provision for loan losses | 2,422 | 3,971 |
Depreciation and amortization | 503 | 538 |
Decrease (increase) in accrued interest receivable | 550 | (1,652) |
Deferred tax benefit | (1,010) | (1,977) |
Share-based compensation expense | 1,278 | 503 |
Bank owned life insurance income | (442) | (350) |
Principal repayments of operating lease obligations | (50) | (36) |
Net increase in other assets | (2,058) | (186) |
Net decrease in other liabilities | (738) | (625) |
Net cash provided by operating activities | 9,727 | 8,453 |
Cash flows from investing activities: | ||
Purchases of debt securities available-for-sale | (5,038) | |
Proceeds from pay downs, maturities and calls of debt securities available-for-sale | 4,481 | 5,385 |
Redemption of Federal Home Loan Bank stock | 110 | 366 |
Loan originations and purchases, net of paydowns | (23,318) | (246,302) |
Cash paid for mortgage warehouse asset purchase, net | (66,962) | |
Additions to premises and equipment | (181) | (490) |
Purchase of bank owned life insurance | (8,950) | |
Net cash used in investing activities | (23,946) | (316,953) |
Cash flows from financing activities: | ||
Net increase in noninterest-bearing accounts | 100,987 | 138,934 |
Net (decrease) increase in interest-bearing accounts | (16,626) | 131,646 |
Repurchase of common stock | (12,365) | |
Cash dividends paid on common stock | (1,219) | (583) |
Proceeds from exercise of stock options, net | 9 | |
Net change in short-term borrowings | 25,023 | |
Payments made on Federal Home Loan Bank long-term advances | (8,000) | |
Shares surrendered related to tax withholdings on restricted stock awards | (2) | |
Net cash provided by financing activities | 70,784 | 287,020 |
Net increase (decrease) in cash and cash equivalents | 56,565 | (21,480) |
Cash and cash equivalents at beginning of period | 83,819 | 59,658 |
Cash and cash equivalents at end of period | 140,384 | 38,178 |
Supplemental disclosures: | ||
Interest paid | 1,891 | 3,636 |
Income taxes paid | $ 4,969 | 3,380 |
Reclassification of premises and equipment to other assets | 3 | |
Recognition of right-of-use assets | 693 | |
Recognition of operating lease liabilities | $ 693 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 are not necessarily indicative of the results that may be expected for future periods, including the entire fiscal year. Certain amounts in 2020 have been reclassified to be consistent with the 2021 consolidated financial statement presentation and had no effect on the net income reported in the consolidated statements 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 26, 2021. The consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, The Provident Bank (“BankProv” or 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, 2021 | |
Corporate Structure [Abstract] | |
Corporate Structure | (2) Corporate Structure The Company is a Maryland corporation whose primary purpose is to act as the holding company for the Bank. 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. Our primary deposit products are checking, savings and term certificate accounts and our primary lending products are commercial mortgages and commercial loans. BankProv is a commercial bank for corporate clients, specializing in offering adaptive and technology-first banking solutions to niche markets, including cryptocurrency, renewable energy, fin-tech and search fund lending. |
COVID-19
COVID-19 | 6 Months Ended |
Jun. 30, 2021 | |
COVID-19 [Abstract] | |
COVID-19 | (3) COVID-19 Since the distribution of COVID-19 vaccinations began in December 2020, significant progress has been made to combat the spread of the virus and as a result, there has been an uptick in economic activity, particularly those industries that had been most heavily impacted by the economic downturn caused by the COVID-19 pandemic. Despite the progress, COVID-19 has caused significant disruption in the U.S. economy and has adversely impacted a broad range of industries in which the Company’s customers operate which could impair their ability to fulfill their financial obligations. 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. Congress, the President, and the Board of Governors of the Federal Reserve System (the “Federal Reserve”) have taken several actions designed to cushion the economic fallout. Most notably, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), a $2 trillion legislative package, was signed into law at the end of March 2020. 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. Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings,” provides banks the option to temporarily suspend certain requirements under U.S. GAAP related to trouble debt restructurings (“TDR”) for a limited period of time to account for the effects of COVID-19. Additionally, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) was enacted on December 27, 2020, providing for a second round of Paycheck Protection Program (“PPP”) loans. Also on December 27, 2020, the Consolidated Appropriations Act (“CAA”) was signed into law. Section 541 of the CAA extends the provision in Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings”, to January 1, 2022. The Federal Reserve also took actions to mitigate the economic impact of the COVID-19 pandemic, including cutting the federal funds rate 150 basis points and targeting a 0 to 25 basis point rate. In addition to the general impact of the COVID-19 pandemic, certain provisions of the CARES Act as well as other legislative and regulatory relief efforts are expected to have a material impact on the Company’s operations. The Economic Aid Act amended the PPP by extending the authority of the Small Business Administration (“SBA”) to guarantee loans and the ability of PPP lenders to disburse PPP loans until March 31, 2021. The PPP Extension Act of 2021, which was enacted on March 30, 2021, extended the PPP application deadline to May 31, 2021, and provided the SBA additional time to process applications through June 30, 2021. Financial position and results of operations In keeping with the guidance from regulators, during the height of the pandemic the Company worked with COVID-19 affected customers to waive fees from a variety of sources and worked with affected borrowers to defer payments, interest and fees. As the impacts of the pandemic have begun to subside the Company continues to assess customer requests and grant concessions on an as-needed, case-by-case basis. The Company continues to monitor and measure the impact and potential future impact on operations. 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 participated in both rounds of the 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 worked with borrowers that were unable to meet contractual obligations due to the effects of COVID-19 by providing modifications to allow for deferral of interest or principal and interest payments on an as-needed and case-by-case basis. In order to mitigate the risk associated with these modifications the Company incorporated covenants that require borrowers to submit quarterly financial statements, prohibit them from distributing funds to any owner or stockholder (with the exception of payroll) and also prohibit them from making any payments on debt owed to subordinated debt holders for the duration of their modification. If borrowers are unable to 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 a 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, 2021 | |
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 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 Company adopted the provision of ASU 2019-12 effective January 1, 2021 and the adoption did not 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. In October 2020, the FASB issued ASU No. 2020-08, Receivables (Topic 310) – Nonrefundable Fees and Other Costs (“ASU 2020-08”) , to provide further clarification and update the previously issued guidance in ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities” (“ASU 2017-08”) . ASU 2017-08 shortened the amortization period for certain callable debt securities purchased at a premium by requiring that the premium be amortized to the earliest call date. The Company early adopted the provisions of ASU 2017-08, effective January 1, 2017. ASU 2017-08 requires that at each reporting period, to the extent that the amortized cost of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess premium should be amortized to the next call date. ASU 2020-08 is effective for fiscal years ending after December 15, 2020 and early adoption was not permitted. The provisions under ASU 2020-08 are required to be applied prospectively. The Company adopted the provision of ASU 2020-08 effective January 1, 2021 and the adoption did not have a material impact on the consolidated financial statements. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investment Securities [Abstract] | |
Investment Securities | (5) Investment Securities The following summarizes the amortized cost and fair value of securities available-for-sale at June 30, 2021 and December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value June 30, 2021 State and municipal securities $ 9,358 $ 671 $ — $ 10,029 Asset-backed securities 8,994 299 — 9,293 Government mortgage-backed securities 12,929 350 4 13,275 Total debt securities available-for-sale $ 31,281 $ 1,320 $ 4 $ 32,597 December 31, 2020 State and municipal securities $ 10,211 $ 683 $ — $ 10,894 Asset-backed securities 4,432 278 — 4,710 Government mortgage-backed securities 16,172 449 10 16,611 Total debt securities available-for-sale $ 30,815 $ 1,410 $ 10 $ 32,215 The scheduled maturities of debt securities at June 30, 2021 are summarized in the table below. Actual maturities of asset and mortgage-backed securities may differ from contractual maturities because the assets and mortgages underlying the securities may be repaid without any penalties. Because asset and 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 $ 763 $ 803 Due after five years through ten years 738 741 Due after ten years 7,857 8,485 Government mortgage-backed securities 12,929 13,275 Asset-backed securities 8,994 9,293 $ 31,281 $ 32,597 There were no realized gains or losses on sales and calls during the six months ended June 30, 2021 or June 30, 2020. Securities with carrying amounts of $ 17.5 million and $ 21.3 million were pledged to secure available borrowings with the Federal Home Loan Bank at June 30, 2021 and December 31, 2020, 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, 2021 and December 31, 2020: 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, 2021 Temporarily impaired securities: Government mortgage-backed securities $ — $ — $ 142 $ 4 $ 142 $ 4 Total temporarily impaired debt securities $ — $ — $ 142 $ 4 $ 142 $ 4 December 31, 2020 Temporarily impaired securities: Government mortgage-backed securities $ — $ — $ 817 $ 10 $ 817 $ 10 Total temporarily impaired debt securities $ — $ — $ 817 $ 10 $ 817 $ 10 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, 2021. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2021 | |
Loans [Abstract] | |
Loans | (6) Loans A summary of loans is as follows: At At June 30, December 31, (In thousands) 2021 2020 Commercial real estate $ 431,242 $ 438,949 Commercial (1) 637,780 565,976 Residential real estate 26,618 32,785 Construction and land development 33,524 28,927 Consumer 3,047 5,547 Mortgage warehouse 227,142 265,379 1,359,353 1,337,563 Allowance for loan losses ( 19,412 ) ( 18,518 ) Deferred loan fees, net (2) ( 5,306 ) ( 4,235 ) Net loans $ 1,334,635 $ 1,314,810 (1) Includes $ 43.3 million and $ 41.8 million in PPP loans at June 30, 2021 and December 31, 2020, respectively. (2) Includes $ 1.7 million and $ 933,000 in deferred fees related to PPP loans at June 30, 2021 and December 31, 2020, respectively. 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, 2021 and 2020: For the three months ended June 30, (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Unallocated Total Allowance for loan losses: Balance at March 31, 2021 $ 6,102 $ 11,512 $ 155 $ 452 $ 445 $ 366 $ — $ 19,032 Charge-offs — ( 1,366 ) — — ( 35 ) — — ( 1,401 ) Recoveries — 97 2 — 13 — — 112 Provision (credit) ( 349 ) 2,153 ( 16 ) ( 7 ) ( 87 ) ( 25 ) — 1,669 Balance at June 30, 2021 $ 5,753 $ 12,396 $ 141 $ 445 $ 336 $ 341 $ — $ 19,412 Balance at March 31, 2020 $ 6,499 $ 7,761 $ 213 $ 789 $ 1,049 $ 296 $ 67 $ 16,674 Charge-offs — ( 142 ) — — ( 284 ) — — ( 426 ) Recoveries — — — — 38 — — 38 Provision (credit) 259 306 ( 6 ) 166 48 166 ( 67 ) 872 Balance at June 30, 2020 $ 6,758 $ 7,925 $ 207 $ 955 $ 851 $ 462 $ — $ 17,158 For the six months ended June 30, (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Unallocated Total Allowance for loan losses: Balance at December 31, 2020 $ 6,095 $ 10,543 $ 184 $ 447 $ 586 $ 663 $ — $ 18,518 Charge-offs ( 150 ) ( 1,409 ) — — ( 191 ) — — ( 1,750 ) Recoveries 81 97 2 — 42 — — 222 Provision (credit) ( 273 ) 3,165 ( 45 ) ( 2 ) ( 101 ) ( 322 ) — 2,422 Balance at June 30, 2021 $ 5,753 $ 12,396 $ 141 $ 445 $ 336 $ 341 $ — $ 19,412 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 2,071 ( 51 ) 206 630 462 ( 1 ) 3,971 Balance at June 30, 2020 $ 6,758 $ 7,925 $ 207 $ 955 $ 851 $ 462 $ — $ 17,158 The following table sets forth information regarding the allowance for loan losses and related loan balances by portfolio segment at June 30, 2021 and December 31, 2020: (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total June 30, 2021 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ — $ 2,831 $ — $ — $ — $ — $ 2,831 Ending balance: Collectively evaluated for impairment 5,753 9,565 141 445 336 341 16,581 Total allowance for loan losses ending balance $ 5,753 $ 12,396 $ 141 $ 445 $ 336 $ 341 $ 19,412 Loans (1): Ending balance: Individually evaluated for impairment $ 20,968 $ 5,470 $ 160 $ — $ — $ — $ 26,598 Ending balance: Collectively evaluated for impairment 410,274 632,310 26,458 33,524 3,047 227,142 1,332,755 Total loans ending balance $ 431,242 $ 637,780 $ 26,618 $ 33,524 $ 3,047 $ 227,142 $ 1,359,353 (1) Balances represent gross loans. The difference between gross loans versus recorded investment, which would consist of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs, is not material. (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total December 31, 2020 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ — $ 2,024 $ — $ — $ — $ — $ 2,024 Ending balance: Collectively evaluated for impairment 6,095 8,519 184 447 586 663 16,494 Total allowance for loan losses ending balance $ 6,095 $ 10,543 $ 184 $ 447 $ 586 $ 663 $ 18,518 Loans (1): Ending balance: Individually evaluated for impairment $ 21,039 $ 4,458 $ 162 $ — $ — $ — $ 25,659 Ending balance: Collectively evaluated for impairment 417,910 561,518 32,623 28,927 5,547 265,379 1,311,904 Total loans ending balance $ 438,949 $ 565,976 $ 32,785 $ 28,927 $ 5,547 $ 265,379 $ 1,337,563 (1) Balances represent gross loans. The difference between gross loans versus recorded investment, which would consist of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs, is not material. The following tables set forth information regarding non-accrual loans and loan delinquencies by portfolio segment at June 30, 2021 and December 31, 2020: 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, 2021 Commercial real estate $ 132 $ — $ — $ 132 $ 431,110 $ 431,242 $ — $ 114 Commercial 3,782 137 1,373 5,292 632,488 637,780 — 3,615 Residential real estate — 399 747 1,146 25,472 26,618 — 923 Construction and land development — — — — 33,524 33,524 — — Consumer 14 15 13 42 3,005 3,047 — 14 Mortgage warehouse — — — — 227,142 227,142 — — Total $ 3,928 $ 551 $ 2,133 $ 6,612 $ 1,352,741 $ 1,359,353 $ — $ 4,666 December 31, 2020 Commercial real estate $ — $ — $ — $ — $ 438,949 $ 438,949 $ — $ — Commercial 4,358 — 291 4,649 561,327 565,976 — 4,198 Residential real estate 255 346 1,030 1,631 31,154 32,785 — 1,156 Construction and land development — — — — 28,927 28,927 — — Consumer 61 21 64 146 5,401 5,547 — 65 Mortgage warehouse — — — — 265,379 265,379 — — Total $ 4,674 $ 367 $ 1,385 $ 6,426 $ 1,331,137 $ 1,337,563 $ — $ 5,419 The following tables provide information with respect to the Company’s impaired loans: June 30, 2021 December 31, 2020 Unpaid Unpaid Recorded Principal Related Recorded Principal Related (In thousands) Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: Commercial real estate $ 20,968 $ 21,158 $ — $ 21,039 $ 21,312 $ — Commercial 2,079 2,346 — 434 441 — Residential real estate 160 160 — 162 162 — Construction and land development — — — — — — Consumer — — — — — — Mortgage warehouse — — — — — — Total impaired with no related allowance 23,207 23,664 — 21,635 21,915 — With an allowance recorded: Commercial real estate — — — — — — Commercial 3,391 3,422 2,831 4,024 4,605 2,024 Residential real estate — — — — — — Construction and land development — — — — — — Consumer — — — — — — Mortgage warehouse — — — — — — Total impaired with an allowance recorded 3,391 3,422 2,831 4,024 4,605 2,024 Total Commercial real estate 20,968 21,158 — 21,039 21,312 — Commercial 5,470 5,768 2,831 4,458 5,046 2,024 Residential real estate 160 160 — 162 162 — Construction and land development — — — — — — Consumer — — — — — — Mortgage warehouse — — — — — — Total impaired loans $ 26,598 $ 27,086 $ 2,831 $ 25,659 $ 26,520 $ 2,024 Three Months Ended June 30, 2021 2020 Average Interest Average Interest Recorded Income Recorded Income (In thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial real estate $ 20,984 $ 161 $ 1,565 $ 9 Commercial 2,090 47 371 4 Residential real estate 161 3 164 2 Construction and land development — — 83 — Consumer — — — — Mortgage warehouse — — — — Total impaired with no related allowance 23,235 211 2,183 15 With an allowance recorded: Commercial real estate — — 20,879 41 Commercial 3,342 1 4,484 — Residential real estate — — — — Construction and land development — — — — Consumer — — — — Mortgage warehouse — — — — Total impaired with an allowance recorded 3,342 1 25,363 41 Total Commercial real estate 20,984 161 22,444 50 Commercial 5,432 48 4,855 4 Residential real estate 161 3 164 2 Construction and land development — — 83 — Consumer — — — — Mortgage warehouse — — — — Total impaired loans $ 26,577 $ 212 $ 27,546 $ 56 Six Months Ended June 30, 2021 2020 Average Interest Average Interest Recorded Income Recorded Income (In thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial real estate $ 21,040 $ 344 $ 1,573 $ 28 Commercial 2,128 50 383 10 Residential real estate 161 5 164 5 Construction and land development — — 110 — Consumer — — — — Mortgage warehouse — — — — Total impaired with no related allowance 23,329 399 2,230 43 With an allowance recorded: Commercial real estate — — 20,936 252 Commercial 3,349 3 4,596 1 Residential real estate — — — — Construction and land development — — — — Consumer — — — — Mortgage warehouse — — — — Total impaired with an allowance recorded 3,349 3 25,532 253 Total Commercial real estate 21,040 344 22,509 280 Commercial 5,477 53 4,979 11 Residential real estate 161 5 164 5 Construction and land development — — 110 — Consumer — — — — Mortgage warehouse — — — — Total impaired loans $ 26,678 $ 402 $ 27,762 $ 296 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, TDRs 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, 2021 and 2020: Three Months Ended June 30, 2021 2020 (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, 2021 2020 (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 3 1,868 1,868 1 81 81 3 $ 1,868 $ 1,868 10 $ 18,892 $ 20,392 During the six months ended June 30, 2021, the Bank approved three TDRs, all related to one commercial relationship. A troubled debt restructuring was completed to provide the borrower with a three-month principal and interest deferral through April 2021; upon review in the second quarter an additional three-month principal and interest deferral was granted through August 2021. As of December 31, 2020, this relationship was deemed impaired, placed on non-accrual status and specific reserves of $ 1.8 million were allocated. As of June 30, 2021, this commercial relationship remained on non-accrual status with specific reserves of $ 1.8 million. During the six months ended June 30, 2020, the Bank 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 years 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 years at a reduced rate. Upon completion of the restructuring in the first quarter of 2020, the commercial relationship was placed on non-accrual status and after demonstrating the ability to pay the loan under the restructured terms, it was taken off non-accrual status in the fourth quarter of 2020 and specific reserves of $ 1.2 million were removed due to sufficient collateral. As of June 30, 2021, these loans were paying in accordance with the restructured terms and no new specific reserves have been attributed to the relationship. Also during the six months ended June 30, 2020 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 years . 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. The total recorded investment in TDRs was $ 25.0 million and $ 23.3 million at June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, there were no significant commitments to lend additional funds to borrowers whose loans had been restructured. Additionally, the Company has worked with borrowers impacted by COVID-19 by providing modifications to allow for deferral of interest or principal and interest payments on an as-needed and case-by-case basis. These modifications are excluded from troubled debt restructuring classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. As previously noted, loan modifications and payment deferrals as a result of COVID-19 that meet the criteria established under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators are excluded from evaluation of TDR classification and will continue to be reported as current during the payment deferral period. The Company’s policy is to continue to accrue interest during the deferral period. Loans not meeting the CARES Act or regulatory guidance are evaluated for TDR and non-accrual treatment under the Company’s existing policies and procedures. Loan modifications made pursuant to the CARES Act or interagency guidance that were in payment deferral at June 30, 2021 and December 31, 2020 totaled approximately $ 18.9 million and $ 44.0 million, respectively. At June 30, 2021, there were five commercial real estate loans that amounted to $ 3.8 million, 14 commercial and industrial loans that amounted to $ 5.8 million, and one construction loan that amounted to $ 9.3 million that were in payment deferral pursuant to the CARES Act. There were no consumer, residential or mortgage warehouse loans that were in payment deferral at June 30, 2021 based on modifications made pursuant to the CARES Act. At December 31, 2020 there were eight commercial real estate loans that amounted to $ 12.4 million, 28 commercial and industrial loans that amounted to $ 22.4 million, one construction and land development loan that amounted to $ 9.0 million, and one residential mortgage loan that amounted to $ 177,000 that were in payment deferral pursuant to the CARES Act or interagency guidance. There were no consumer or mortgage warehouse loans that were in payment deferral at December 31, 2020 based on modifications made pursuant to the CARES Act or interagency guidance. The following tables present the Company’s loans by risk rating and portfolio segment at June 30, 2021 and December 31, 2020: (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total June 30, 2021 Grade: Pass $ 390,847 $ 596,505 $ — $ 32,486 $ — $ 227,142 $ 1,246,980 Special mention 20,589 26,948 — — — — 47,537 Substandard 19,806 12,358 923 1,038 — — 34,125 Doubtful — 1,969 — — — — 1,969 Not formally rated — — 25,695 — 3,047 — 28,742 Total $ 431,242 $ 637,780 $ 26,618 $ 33,524 $ 3,047 $ 227,142 $ 1,359,353 December 31, 2020 Grade: Pass $ 401,541 $ 538,449 $ — $ 28,927 $ — $ 265,379 $ 1,234,296 Special mention 17,702 13,625 — — — — 31,327 Substandard 19,706 13,902 1,560 — — — 35,168 Not formally rated — — 31,225 — 5,547 — 36,772 Total $ 438,949 $ 565,976 $ 32,785 $ 28,927 $ 5,547 $ 265,379 $ 1,337,563 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. On an annual basis, or more often if needed, the Company completes a credit recertification on all mortgage warehouse originators. 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. Consumer loans are not formally rated. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
Deposits | (7) Deposits A summary of deposit balances, by type is as follows: June 30, December 31, (In thousands) 2021 2020 NOW and demand $ 646,033 $ 554,095 Regular savings 154,201 151,341 Money market deposits 395,953 353,793 Total non-certificate accounts 1,196,187 1,059,229 Certificate accounts of $250,000 or more 4,864 5,167 Certificate accounts less than $250,000 120,738 173,032 Total certificate accounts 125,602 178,199 Total deposits $ 1,321,789 $ 1,237,428 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Borrowings [Abstract] | |
Borrowings | (8) Borrowings Advances consist of funds borrowed from the Federal Home Loan Bank (the “FHLB”). Maturities of advances from the FHLB as of June 30, 2021 are summarized as follows: (In thousands) Fiscal Year-End 2023 $ 8,500 2025 5,000 Total $ 13,500 Borrowings from the FHLB, which aggregated $ 13.5 million at June 30, 2021, 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 1.21 % to 3.01 %, and the weighted average interest rate on FHLB advances was 2.11 % at June 30, 2021. All the FHLB borrowings at June 30, 2021 are long-term with an original maturity of more than one year . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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. The Company used the following methods and significant assumptions to estimate fair value: Cash and cash equivalents : The carrying amounts of cash and cash equivalents approximate fair values. Debt Securities Available-For-Sale : Fair values for investments are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or pricing models. Loans receivable : Fair values are based on an exit price notion in which an orderly transaction would take place between market participants at the measurement date under current market conditions. Accrued interest receivable : The carrying amount of accrued interest receivable approximates its fair value. Deposit liabilities : The fair values disclosed for deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Borrowings : Fair values of Federal Reserve Bank (“FRB”) Discount Window and Federal Home Loan Bank advances are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Off-balance sheet instruments : The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portions of loans, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date. 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, 2021 and December 31, 2020: 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, 2021 State and municipal securities $ 10,029 $ — $ 10,029 $ — Asset-backed securities 9,293 — 9,293 — Mortgage-backed securities 13,275 — 13,275 — Totals $ 32,597 $ — $ 32,597 $ — December 31, 2020 State and municipal securities $ 10,894 $ — $ 10,894 $ — Asset-backed securities 4,710 — 4,710 — Mortgage-backed securities 16,611 — 16,611 — Totals $ 32,215 $ — $ 32,215 $ — 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, 2021 and December 31, 2020: 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, 2021 Impaired loans Commercial $ 560 $ — $ — $ 560 Totals $ 560 $ — $ — $ 560 December 31, 2020 Impaired loans Commercial $ 2,000 — $ — $ 2,000 Totals $ 2,000 $ — $ — $ 2,000 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, 2021 and December 31, 2020: (In thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2021 Impaired loans Commercial $ 560 Business valuation Comparable company evaluations 0 % - 10 % December 31, 2020 Impaired loans Commercial $ 2,000 Business valuation Comparable company evaluations — The carrying amount of impaired commercial loans measured at fair value on a nonrecurring basis was $ 3.4 million and $ 4.0 million with specific reserves of $ 2.8 million and $ 2.0 million at June 30, 2021 and December 31, 2020, respectively. 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, 2021 and December 31, 2020: Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total June 30, 2021 Financial assets: Cash and cash equivalents $ 140,384 $ 140,384 $ — $ — $ 140,384 Available-for-sale debt securities 32,597 — 32,597 — 32,597 Federal Home Loan Bank of Boston stock 785 N/A N/A N/A N/A Loans, net 1,334,635 — — 1,341,490 1,341,490 Accrued interest receivable 5,821 — 5,821 — 5,821 Financial liabilities: Deposits 1,321,789 — 1,321,955 — 1,321,955 Borrowings 13,500 — 13,907 — 13,907 December 31, 2020 Financial assets: Cash and cash equivalents $ 83,819 $ 83,819 $ — $ — $ 83,819 Available-for-sale debt securities 32,215 — 32,215 — 32,215 Federal Home Loan Bank of Boston stock 895 N/A N/A N/A N/A Loans, net 1,314,810 — — 1,321,143 1,321,143 Accrued interest receivable 6,371 — 6,371 — 6,371 Financial liabilities: Deposits 1,237,428 — 1,237,867 — 1,237,867 Borrowings 13,500 — 14,016 — 14,016 |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and December 31, 2020, 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, 2021, 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 CARES Act temporarily lowered the community bank leverage ratio to 8 % through 2020. The CBLR requirement transitioned from 8 % to 8.5 % for calendar year 2021 and will transition to 9 % beginning in 2022. As of June 30, 2021, 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, 2021 Total Capital (to Risk Weighted Assets) $ 208,982 15.11 % $ 110,667 > 8.0 % $ 138,334 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 191,665 13.86 83,001 > 6.0 110,667 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 191,665 13.86 62,250 > 4.5 89,917 > 6.5 Tier 1 Capital (to Average Assets) 191,665 12.38 61,914 > 4.0 77,393 > 5.0 December 31, 2020 Total Capital (to Risk Weighted Assets) $ 199,377 14.60 % $ 109,273 > 8.0 % $ 136,591 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 182,286 13.35 81,955 > 6.0 109,273 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 182,286 13.35 61,466 > 4.5 88,784 > 6.5 Tier 1 Capital (to Average Assets) 182,286 12.37 58,926 > 4.0 73,658 > 5.0 Liquidation Accounts Upon the completion of the Company’s initial stock offering in 2015 and the second step offering in 2019, liquidation accounts were established for the benefit of certain depositors of the Bank in amounts equal to: 1. The product of (i) the percentage of the stock issued in the initial stock offering in 2015 to persons other than MHC and (ii) the net worth of the mid-tier holding company as of the date of the latest balance sheet contained in the prospectus utilized in connection with the offering. 2. 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). 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 respective 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. Other Restrictions The Company’s principal source of funds for dividend payments is dividends received from the Bank. Federal and state banking regulations restrict the amount of dividends that may be paid in a year, without prior approval of regulatory agencies, to the net income of the Bank for the year plus the retained net income of the previous two years. For the six months ended June 30, 2021 net income of the Bank was $ 7.5 million and for the years ended December 31, 2020 and 2019, $ 12.1 million and $ 10.7 million, respectively, of retained earnings was available to pay dividends. The Company may, at times, repurchase its own shares in the open market. Such transactions are subject to the Federal Reserve Board’s notice provisions for stock repurchases. In October 2020, the Company announced its plan to repurchase 1,000,000 shares of its common stock. The repurchase program was adopted following the receipt of non-objection from the Federal Reserve Bank of Boston, and in compliance with applicable state and federal regulations. The Company completed the repurchase of 1,000,000 shares of its common stock under this repurchase program in February 2021. In March 2021, the Company announced its plan to repurchase 1,400,000 shares of its common stock. The repurchase program was adopted following the receipt of non-objection from the Federal Reserve Bank of Boston, and in compliance with applicable state and federal regulations. During the six months ended June 30, 2021, the Company had repurchased 869,099 shares of its outstanding common stock under these programs. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 6 Months Ended |
Jun. 30, 2021 | |
Employee Stock Ownership Plan [Abstract] | |
Employee Stock Ownership Plan | (11) Employee Stock Ownership Plan The Bank established an ESOP to provide eligible employees the opportunity to own company 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 a total of 1,538,868 shares between the initial and second-step stock offerings with the proceeds of a loan totaling $ 11.8 million. The loan is payable over 15 years at a rate per annum equal to the prime rate ( 3.25 % as of December 31, 2020). 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, 2021 December 31, 2020 Allocated 372,014 282,256 Committed to be released 44,879 89,758 Unallocated 1,121,975 1,166,854 Total 1,538,868 1,538,868 The fair value of unallocated shares was approximately $ 18.3 million at June 30, 2021. Total compensation expense recognized in connection with the ESOP for the three months ended June 30, 2021 and 2020 was $ 361,000 and $ 194,000 , respectively. Total compensation expense recognized for the six months ended June 30, 2021 and 2020 was $ 647,000 and $ 444,000 , respectively. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
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) 2021 2020 2021 2020 Net Income attributable to common shareholders $ 3,166 $ 3,250 $ 7,463 $ 4,481 Average number of common shares issued 18,293,573 19,474,950 18,532,879 19,475,599 Less: average unallocated ESOP shares ( 1,129,452 ) ( 1,219,215 ) ( 1,140,610 ) ( 1,230,434 ) average unvested restricted stock ( 385,423 ) ( 105,629 ) ( 372,380 ) ( 113,744 ) Average number of common shares outstanding to calculate basic earnings per common share 16,778,698 18,150,106 17,019,889 18,131,421 Effect of dilutive unvested restricted stock and stock option awards 559,964 29,752 422,522 66,225 Average number of common shares outstanding to calculate diluted earnings per common share 17,338,662 18,179,858 17,442,411 18,197,646 Earnings per common share: Basic $ 0.19 $ 0.18 $ 0.44 $ 0.25 Diluted $ 0.18 $ 0.18 $ 0.43 $ 0.25 Stock options for 115,385 and 821,186 shares of common stock were not considered in computing diluted earnings per common share for the three months ended June 30, 2021 and 2020, respectively, because they were antidilutive, meaning the exercise price for such options were higher than the average price for the Company for such period. For the six months ended June 30, 2021 and 2020, 706,408 shares and 70,639 shares, respectively, were not considered in computing diluted earnings per common share because they were antidilutive. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation [Abstract] | |
Share-Based Compensation | (13) Share-Based Compensation The shareholders of the Company approved the Provident Bancorp, Inc. 2020 Equity Incentive Plan (the “2020 Equity Plan”) on November 23, 2020, which is in addition to the Provident Bancorp, Inc. 2016 Equity Incentive Plan (the “2016 Equity Plan”), (collectively called the “Equity Incentive Plans”). Under the Equity Incentive Plans 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 Incentive Plans, with 902,344 and 1,021,239 shares reserved for options under the 2016 Equity Plan and 2020 Equity Plan, respectively. The exercise price of each option equals the market price of the Company’s stock on the date of grant and the maximum term of each option is ten years . The total number of shares reserved for restricted stock or restricted units is 360,935 and 408,495 under the 2016 Equity Plan and 2020 Equity Plan, respectively. The value of restricted stock grants is based on the market price of the stock on grant date. Options and awards vest ratably over 3 to 5 years. 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: Expected volatility is based on historical volatility because the Company’s common stock price. 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 dividend yield assumption is based on the Company’s expectation of dividend payouts. 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 2021 is based on the following assumptions: 2021 Vesting period (years) 5 Expiration date (years) 10 Expected volatility 34.41 % Expected life (years) 7.5 Expected dividend yield 1.07 % Risk free interest rate 1.19 % Fair value per option $ 5.06 A summary of the status of the Company’s stock option grants for the six months ended June 30, 2021 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, 2020 1,644,731 $ 10.25 Granted 150,000 15.00 Forfeited — — Exercised ( 15,764 ) 8.61 Outstanding at June 30, 2021 1,778,967 $ 10.66 7.74 $ 10,047,000 Outstanding and expected to vest at June 30, 2021 1,778,967 $ 10.66 7.74 $ 10,047,000 Vested and Exercisable at June 30, 2021 612,925 $ 8.81 5.48 $ 4,597,000 Unrecognized compensation cost $ 3,766,000 Weighted average remaining recognition period (years) 4.15 For the three months ended June 30, 2021 and 2020, total expense for the stock options was $ 304,000 and $ 104,000 , respectively. For the six months ended June 30, 2021 and 2020, total expense for the stock options was $ 576,000 and $ 214,000 , 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 the six months ended June 30, 2021: Unvested Restricted Stock Awards Weighted Average Grant Date Price Unvested restricted stock awards at December 31, 2020 387,683 $ 11.10 Granted 60,000 15.00 Forfeited — — Vested ( 810 ) 12.35 Unvested restricted stock awards at June 30, 2021 446,873 $ 11.62 Unrecognized compensation cost $ 4,374,000 Weighted average remaining recognition period (years) 4.14 For the three months ended June 30, 2021 and 2020, total expense for the restricted stock awards was $ 370,000 and $ 138,000 , respectively. For the six months ended June 30, 2021 and 2020, total expense for the restricted stock awards was $ 702,000 and $ 289,000 , respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | (14) Leases The Company recognized right-of-use assets (“ROU”) totaling $ 4.2 million and $ 4.3 million at June 30, 2021 and December 31, 2020, respectively, and operating lease liabilities totaling $ 4.4 million and $ 4.5 million at June 30, 2021 and December 31, 2020, respectively. The lease liabilities recognized by the Company represent two leased branch locations and one loan production office. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease components, such as fair market value adjustments, are expensed as incurred and are not included in ROU assets and operating lease liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For the six months ended June 30, 2021 and 2020, rent expense for the operating leases totaled $ 157,000 and $ 150,000 , respectively. The following table presents information regarding the Company’s operating leases: June 30, December 31, 2021 2020 Weighted-average discount rate 3.56 % 3.54 % Range of lease expiration dates 2 - 14.5 years 2 - 15 years Range of lease renewal options 5 - 20 years 5 - 20 years Weighted-average remaining lease term 27.3 years 27.6 years The following table presents the undiscounted annual lease payments under the terms of the Company's operating leases at June 30, 2021 and December 31, 2020, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets: June 30, December 31, Fiscal Year-End 2021 2020 (In thousands) (unaudited) 2021 $ 129 $ 258 2022 261 261 2023 264 264 2024 270 270 2025 280 280 Thereafter 6,325 6,325 Total lease payments 7,529 7,658 Less imputed interest ( 3,091 ) ( 3,170 ) Total lease liabilities $ 4,438 $ 4,488 The lease liabilities recognized include certain lease extensions as it is expected that the Company will use substantially all lease renewal options. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (15) 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. 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, 2021 | |
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, 2021 are not necessarily indicative of the results that may be expected for future periods, including the entire fiscal year. Certain amounts in 2020 have been reclassified to be consistent with the 2021 consolidated financial statement presentation and had no effect on the net income reported in the consolidated statements 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 26, 2021. The consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, The Provident Bank (“BankProv” or 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, 2021 | |
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 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 Company adopted the provision of ASU 2019-12 effective January 1, 2021 and the adoption did not 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. In October 2020, the FASB issued ASU No. 2020-08, Receivables (Topic 310) – Nonrefundable Fees and Other Costs (“ASU 2020-08”) , to provide further clarification and update the previously issued guidance in ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities” (“ASU 2017-08”) . ASU 2017-08 shortened the amortization period for certain callable debt securities purchased at a premium by requiring that the premium be amortized to the earliest call date. The Company early adopted the provisions of ASU 2017-08, effective January 1, 2017. ASU 2017-08 requires that at each reporting period, to the extent that the amortized cost of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess premium should be amortized to the next call date. ASU 2020-08 is effective for fiscal years ending after December 15, 2020 and early adoption was not permitted. The provisions under ASU 2020-08 are required to be applied prospectively. The Company adopted the provision of ASU 2020-08 effective January 1, 2021 and the adoption did not have a material impact on the consolidated financial statements. |
Revenue Recognition (Policy)
Revenue Recognition (Policy) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition [Abstract] | |
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. 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investment Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Securities Available-for-Sale | Amortized Gross Gross Cost Unrealized Unrealized Fair (In thousands) Basis Gains Losses Value June 30, 2021 State and municipal securities $ 9,358 $ 671 $ — $ 10,029 Asset-backed securities 8,994 299 — 9,293 Government mortgage-backed securities 12,929 350 4 13,275 Total debt securities available-for-sale $ 31,281 $ 1,320 $ 4 $ 32,597 December 31, 2020 State and municipal securities $ 10,211 $ 683 $ — $ 10,894 Asset-backed securities 4,432 278 — 4,710 Government mortgage-backed securities 16,172 449 10 16,611 Total debt securities available-for-sale $ 30,815 $ 1,410 $ 10 $ 32,215 |
Schedule of Maturities of Debt Securities | Available-for-Sale Amortized Fair (In thousands) Cost Value Due after one year through five years $ 763 $ 803 Due after five years through ten years 738 741 Due after ten years 7,857 8,485 Government mortgage-backed securities 12,929 13,275 Asset-backed securities 8,994 9,293 $ 31,281 $ 32,597 |
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, 2021 Temporarily impaired securities: Government mortgage-backed securities $ — $ — $ 142 $ 4 $ 142 $ 4 Total temporarily impaired debt securities $ — $ — $ 142 $ 4 $ 142 $ 4 December 31, 2020 Temporarily impaired securities: Government mortgage-backed securities $ — $ — $ 817 $ 10 $ 817 $ 10 Total temporarily impaired debt securities $ — $ — $ 817 $ 10 $ 817 $ 10 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Loans [Abstract] | |
Schedule of Loans | At At June 30, December 31, (In thousands) 2021 2020 Commercial real estate $ 431,242 $ 438,949 Commercial (1) 637,780 565,976 Residential real estate 26,618 32,785 Construction and land development 33,524 28,927 Consumer 3,047 5,547 Mortgage warehouse 227,142 265,379 1,359,353 1,337,563 Allowance for loan losses ( 19,412 ) ( 18,518 ) Deferred loan fees, net (2) ( 5,306 ) ( 4,235 ) Net loans $ 1,334,635 $ 1,314,810 (1) Includes $ 43.3 million and $ 41.8 million in PPP loans at June 30, 2021 and December 31, 2020, respectively. (2) Includes $ 1.7 million and $ 933,000 in deferred fees related to PPP loans at June 30, 2021 and December 31, 2020, respectively. |
Schedule of Allowance for Loans and Gross Impaired Loans by Portfolio Segment | For the three months ended June 30, (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Unallocated Total Allowance for loan losses: Balance at March 31, 2021 $ 6,102 $ 11,512 $ 155 $ 452 $ 445 $ 366 $ — $ 19,032 Charge-offs — ( 1,366 ) — — ( 35 ) — — ( 1,401 ) Recoveries — 97 2 — 13 — — 112 Provision (credit) ( 349 ) 2,153 ( 16 ) ( 7 ) ( 87 ) ( 25 ) — 1,669 Balance at June 30, 2021 $ 5,753 $ 12,396 $ 141 $ 445 $ 336 $ 341 $ — $ 19,412 Balance at March 31, 2020 $ 6,499 $ 7,761 $ 213 $ 789 $ 1,049 $ 296 $ 67 $ 16,674 Charge-offs — ( 142 ) — — ( 284 ) — — ( 426 ) Recoveries — — — — 38 — — 38 Provision (credit) 259 306 ( 6 ) 166 48 166 ( 67 ) 872 Balance at June 30, 2020 $ 6,758 $ 7,925 $ 207 $ 955 $ 851 $ 462 $ — $ 17,158 For the six months ended June 30, (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Unallocated Total Allowance for loan losses: Balance at December 31, 2020 $ 6,095 $ 10,543 $ 184 $ 447 $ 586 $ 663 $ — $ 18,518 Charge-offs ( 150 ) ( 1,409 ) — — ( 191 ) — — ( 1,750 ) Recoveries 81 97 2 — 42 — — 222 Provision (credit) ( 273 ) 3,165 ( 45 ) ( 2 ) ( 101 ) ( 322 ) — 2,422 Balance at June 30, 2021 $ 5,753 $ 12,396 $ 141 $ 445 $ 336 $ 341 $ — $ 19,412 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 2,071 ( 51 ) 206 630 462 ( 1 ) 3,971 Balance at June 30, 2020 $ 6,758 $ 7,925 $ 207 $ 955 $ 851 $ 462 $ — $ 17,158 |
Schedule of Allowance for Loan Losses and Related Loan Balances by Portfolio Segment | (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total June 30, 2021 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ — $ 2,831 $ — $ — $ — $ — $ 2,831 Ending balance: Collectively evaluated for impairment 5,753 9,565 141 445 336 341 16,581 Total allowance for loan losses ending balance $ 5,753 $ 12,396 $ 141 $ 445 $ 336 $ 341 $ 19,412 Loans (1): Ending balance: Individually evaluated for impairment $ 20,968 $ 5,470 $ 160 $ — $ — $ — $ 26,598 Ending balance: Collectively evaluated for impairment 410,274 632,310 26,458 33,524 3,047 227,142 1,332,755 Total loans ending balance $ 431,242 $ 637,780 $ 26,618 $ 33,524 $ 3,047 $ 227,142 $ 1,359,353 (1) Balances represent gross loans. The difference between gross loans versus recorded investment, which would consist of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs, is not material. (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total December 31, 2020 Allowance for loan losses: Ending balance: Individually evaluated for impairment $ — $ 2,024 $ — $ — $ — $ — $ 2,024 Ending balance: Collectively evaluated for impairment 6,095 8,519 184 447 586 663 16,494 Total allowance for loan losses ending balance $ 6,095 $ 10,543 $ 184 $ 447 $ 586 $ 663 $ 18,518 Loans (1): Ending balance: Individually evaluated for impairment $ 21,039 $ 4,458 $ 162 $ — $ — $ — $ 25,659 Ending balance: Collectively evaluated for impairment 417,910 561,518 32,623 28,927 5,547 265,379 1,311,904 Total loans ending balance $ 438,949 $ 565,976 $ 32,785 $ 28,927 $ 5,547 $ 265,379 $ 1,337,563 (1) Balances represent gross loans. The difference between gross loans versus recorded investment, which would consist of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs, is not material. |
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, 2021 Commercial real estate $ 132 $ — $ — $ 132 $ 431,110 $ 431,242 $ — $ 114 Commercial 3,782 137 1,373 5,292 632,488 637,780 — 3,615 Residential real estate — 399 747 1,146 25,472 26,618 — 923 Construction and land development — — — — 33,524 33,524 — — Consumer 14 15 13 42 3,005 3,047 — 14 Mortgage warehouse — — — — 227,142 227,142 — — Total $ 3,928 $ 551 $ 2,133 $ 6,612 $ 1,352,741 $ 1,359,353 $ — $ 4,666 December 31, 2020 Commercial real estate $ — $ — $ — $ — $ 438,949 $ 438,949 $ — $ — Commercial 4,358 — 291 4,649 561,327 565,976 — 4,198 Residential real estate 255 346 1,030 1,631 31,154 32,785 — 1,156 Construction and land development — — — — 28,927 28,927 — — Consumer 61 21 64 146 5,401 5,547 — 65 Mortgage warehouse — — — — 265,379 265,379 — — Total $ 4,674 $ 367 $ 1,385 $ 6,426 $ 1,331,137 $ 1,337,563 $ — $ 5,419 |
Schedule of Impaired Loans | June 30, 2021 December 31, 2020 Unpaid Unpaid Recorded Principal Related Recorded Principal Related (In thousands) Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: Commercial real estate $ 20,968 $ 21,158 $ — $ 21,039 $ 21,312 $ — Commercial 2,079 2,346 — 434 441 — Residential real estate 160 160 — 162 162 — Construction and land development — — — — — — Consumer — — — — — — Mortgage warehouse — — — — — — Total impaired with no related allowance 23,207 23,664 — 21,635 21,915 — With an allowance recorded: Commercial real estate — — — — — — Commercial 3,391 3,422 2,831 4,024 4,605 2,024 Residential real estate — — — — — — Construction and land development — — — — — — Consumer — — — — — — Mortgage warehouse — — — — — — Total impaired with an allowance recorded 3,391 3,422 2,831 4,024 4,605 2,024 Total Commercial real estate 20,968 21,158 — 21,039 21,312 — Commercial 5,470 5,768 2,831 4,458 5,046 2,024 Residential real estate 160 160 — 162 162 — Construction and land development — — — — — — Consumer — — — — — — Mortgage warehouse — — — — — — Total impaired loans $ 26,598 $ 27,086 $ 2,831 $ 25,659 $ 26,520 $ 2,024 Three Months Ended June 30, 2021 2020 Average Interest Average Interest Recorded Income Recorded Income (In thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial real estate $ 20,984 $ 161 $ 1,565 $ 9 Commercial 2,090 47 371 4 Residential real estate 161 3 164 2 Construction and land development — — 83 — Consumer — — — — Mortgage warehouse — — — — Total impaired with no related allowance 23,235 211 2,183 15 With an allowance recorded: Commercial real estate — — 20,879 41 Commercial 3,342 1 4,484 — Residential real estate — — — — Construction and land development — — — — Consumer — — — — Mortgage warehouse — — — — Total impaired with an allowance recorded 3,342 1 25,363 41 Total Commercial real estate 20,984 161 22,444 50 Commercial 5,432 48 4,855 4 Residential real estate 161 3 164 2 Construction and land development — — 83 — Consumer — — — — Mortgage warehouse — — — — Total impaired loans $ 26,577 $ 212 $ 27,546 $ 56 Six Months Ended June 30, 2021 2020 Average Interest Average Interest Recorded Income Recorded Income (In thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial real estate $ 21,040 $ 344 $ 1,573 $ 28 Commercial 2,128 50 383 10 Residential real estate 161 5 164 5 Construction and land development — — 110 — Consumer — — — — Mortgage warehouse — — — — Total impaired with no related allowance 23,329 399 2,230 43 With an allowance recorded: Commercial real estate — — 20,936 252 Commercial 3,349 3 4,596 1 Residential real estate — — — — Construction and land development — — — — Consumer — — — — Mortgage warehouse — — — — Total impaired with an allowance recorded 3,349 3 25,532 253 Total Commercial real estate 21,040 344 22,509 280 Commercial 5,477 53 4,979 11 Residential real estate 161 5 164 5 Construction and land development — — 110 — Consumer — — — — Mortgage warehouse — — — — Total impaired loans $ 26,678 $ 402 $ 27,762 $ 296 |
Schedule of Troubled Debt Restructurings | Three Months Ended June 30, 2021 2020 (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, 2021 2020 (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 3 1,868 1,868 1 81 81 3 $ 1,868 $ 1,868 10 $ 18,892 $ 20,392 |
Schedule of Loans by Risk Rating and Portfolio Segment | (In thousands) Commercial Real Estate Commercial Residential Real Estate Construction and Land Development Consumer Mortgage Warehouse Total June 30, 2021 Grade: Pass $ 390,847 $ 596,505 $ — $ 32,486 $ — $ 227,142 $ 1,246,980 Special mention 20,589 26,948 — — — — 47,537 Substandard 19,806 12,358 923 1,038 — — 34,125 Doubtful — 1,969 — — — — 1,969 Not formally rated — — 25,695 — 3,047 — 28,742 Total $ 431,242 $ 637,780 $ 26,618 $ 33,524 $ 3,047 $ 227,142 $ 1,359,353 December 31, 2020 Grade: Pass $ 401,541 $ 538,449 $ — $ 28,927 $ — $ 265,379 $ 1,234,296 Special mention 17,702 13,625 — — — — 31,327 Substandard 19,706 13,902 1,560 — — — 35,168 Not formally rated — — 31,225 — 5,547 — 36,772 Total $ 438,949 $ 565,976 $ 32,785 $ 28,927 $ 5,547 $ 265,379 $ 1,337,563 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
Schedule of Deposit Balances by Type | June 30, December 31, (In thousands) 2021 2020 NOW and demand $ 646,033 $ 554,095 Regular savings 154,201 151,341 Money market deposits 395,953 353,793 Total non-certificate accounts 1,196,187 1,059,229 Certificate accounts of $250,000 or more 4,864 5,167 Certificate accounts less than $250,000 120,738 173,032 Total certificate accounts 125,602 178,199 Total deposits $ 1,321,789 $ 1,237,428 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Borrowings [Abstract] | |
Schedule of Maturities of Advances from FHLB | (In thousands) Fiscal Year-End 2023 $ 8,500 2025 5,000 Total $ 13,500 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Schedule of Assets 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, 2021 State and municipal securities $ 10,029 $ — $ 10,029 $ — Asset-backed securities 9,293 — 9,293 — Mortgage-backed securities 13,275 — 13,275 — Totals $ 32,597 $ — $ 32,597 $ — December 31, 2020 State and municipal securities $ 10,894 $ — $ 10,894 $ — Asset-backed securities 4,710 — 4,710 — Mortgage-backed securities 16,611 — 16,611 — Totals $ 32,215 $ — $ 32,215 $ — |
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, 2021 Impaired loans Commercial $ 560 $ — $ — $ 560 Totals $ 560 $ — $ — $ 560 December 31, 2020 Impaired loans Commercial $ 2,000 — $ — $ 2,000 Totals $ 2,000 $ — $ — $ 2,000 |
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, 2021 Impaired loans Commercial $ 560 Business valuation Comparable company evaluations 0 % - 10 % December 31, 2020 Impaired loans Commercial $ 2,000 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, 2021 Financial assets: Cash and cash equivalents $ 140,384 $ 140,384 $ — $ — $ 140,384 Available-for-sale debt securities 32,597 — 32,597 — 32,597 Federal Home Loan Bank of Boston stock 785 N/A N/A N/A N/A Loans, net 1,334,635 — — 1,341,490 1,341,490 Accrued interest receivable 5,821 — 5,821 — 5,821 Financial liabilities: Deposits 1,321,789 — 1,321,955 — 1,321,955 Borrowings 13,500 — 13,907 — 13,907 December 31, 2020 Financial assets: Cash and cash equivalents $ 83,819 $ 83,819 $ — $ — $ 83,819 Available-for-sale debt securities 32,215 — 32,215 — 32,215 Federal Home Loan Bank of Boston stock 895 N/A N/A N/A N/A Loans, net 1,314,810 — — 1,321,143 1,321,143 Accrued interest receivable 6,371 — 6,371 — 6,371 Financial liabilities: Deposits 1,237,428 — 1,237,867 — 1,237,867 Borrowings 13,500 — 14,016 — 14,016 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 Total Capital (to Risk Weighted Assets) $ 208,982 15.11 % $ 110,667 > 8.0 % $ 138,334 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 191,665 13.86 83,001 > 6.0 110,667 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 191,665 13.86 62,250 > 4.5 89,917 > 6.5 Tier 1 Capital (to Average Assets) 191,665 12.38 61,914 > 4.0 77,393 > 5.0 December 31, 2020 Total Capital (to Risk Weighted Assets) $ 199,377 14.60 % $ 109,273 > 8.0 % $ 136,591 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 182,286 13.35 81,955 > 6.0 109,273 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 182,286 13.35 61,466 > 4.5 88,784 > 6.5 Tier 1 Capital (to Average Assets) 182,286 12.37 58,926 > 4.0 73,658 > 5.0 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Employee Stock Ownership Plan [Abstract] | |
Schedule of Shares Held by the ESOP | June 30, 2021 December 31, 2020 Allocated 372,014 282,256 Committed to be released 44,879 89,758 Unallocated 1,121,975 1,166,854 Total 1,538,868 1,538,868 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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) 2021 2020 2021 2020 Net Income attributable to common shareholders $ 3,166 $ 3,250 $ 7,463 $ 4,481 Average number of common shares issued 18,293,573 19,474,950 18,532,879 19,475,599 Less: average unallocated ESOP shares ( 1,129,452 ) ( 1,219,215 ) ( 1,140,610 ) ( 1,230,434 ) average unvested restricted stock ( 385,423 ) ( 105,629 ) ( 372,380 ) ( 113,744 ) Average number of common shares outstanding to calculate basic earnings per common share 16,778,698 18,150,106 17,019,889 18,131,421 Effect of dilutive unvested restricted stock and stock option awards 559,964 29,752 422,522 66,225 Average number of common shares outstanding to calculate diluted earnings per common share 17,338,662 18,179,858 17,442,411 18,197,646 Earnings per common share: Basic $ 0.19 $ 0.18 $ 0.44 $ 0.25 Diluted $ 0.18 $ 0.18 $ 0.43 $ 0.25 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation [Abstract] | |
Schedule of Fair Value of Options Granted Assumptions | 2021 Vesting period (years) 5 Expiration date (years) 10 Expected volatility 34.41 % Expected life (years) 7.5 Expected dividend yield 1.07 % Risk free interest rate 1.19 % Fair value per option $ 5.06 |
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, 2020 1,644,731 $ 10.25 Granted 150,000 15.00 Forfeited — — Exercised ( 15,764 ) 8.61 Outstanding at June 30, 2021 1,778,967 $ 10.66 7.74 $ 10,047,000 Outstanding and expected to vest at June 30, 2021 1,778,967 $ 10.66 7.74 $ 10,047,000 Vested and Exercisable at June 30, 2021 612,925 $ 8.81 5.48 $ 4,597,000 Unrecognized compensation cost $ 3,766,000 Weighted average remaining recognition period (years) 4.15 |
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 December 31, 2020 387,683 $ 11.10 Granted 60,000 15.00 Forfeited — — Vested ( 810 ) 12.35 Unvested restricted stock awards at June 30, 2021 446,873 $ 11.62 Unrecognized compensation cost $ 4,374,000 Weighted average remaining recognition period (years) 4.14 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Information Regarding Operating Leases | June 30, December 31, 2021 2020 Weighted-average discount rate 3.56 % 3.54 % Range of lease expiration dates 2 - 14.5 years 2 - 15 years Range of lease renewal options 5 - 20 years 5 - 20 years Weighted-average remaining lease term 27.3 years 27.6 years |
Schedule of Maturities of Lease Liabilities | June 30, December 31, Fiscal Year-End 2021 2020 (In thousands) (unaudited) 2021 $ 129 $ 258 2022 261 261 2023 264 264 2024 270 270 2025 280 280 Thereafter 6,325 6,325 Total lease payments 7,529 7,658 Less imputed interest ( 3,091 ) ( 3,170 ) Total lease liabilities $ 4,438 $ 4,488 |
Corporate Structure (Narrative)
Corporate Structure (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2021item | |
Corporate Structure [Abstract] | |
Number of banking offices | 7 |
Number of loan production offices | 2 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Investment Securities [Abstract] | |||
Realized gains or losses on sales and calls | $ 0 | $ 0 | |
Securities pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank | $ 17,500,000 | $ 21,300,000 |
Investment Securities (Summary
Investment Securities (Summary of Amortized Cost and Fair Value of Securities Available-for-Sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 31,281 | $ 30,815 |
Gross Unrealized Gains | 1,320 | 1,410 |
Gross Unrealized Losses | 4 | 10 |
Fair Value | 32,597 | 32,215 |
State And Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 9,358 | 10,211 |
Gross Unrealized Gains | 671 | 683 |
Fair Value | 10,029 | 10,894 |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 8,994 | 4,432 |
Gross Unrealized Gains | 299 | 278 |
Fair Value | 9,293 | 4,710 |
Government Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 12,929 | 16,172 |
Gross Unrealized Gains | 350 | 449 |
Gross Unrealized Losses | 4 | 10 |
Fair Value | $ 13,275 | $ 16,611 |
Investment Securities (Schedule
Investment Securities (Schedule of Maturities of Debt Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale, Amortized Cost | ||
Due after one year through five years | $ 763 | |
Due after five years through ten years | 738 | |
Due after ten years | 7,857 | |
Amortized Cost Basis | 31,281 | $ 30,815 |
Available-for-Sale, Fair Value | ||
Due after one year through five years | 803 | |
Due after five years through ten years | 741 | |
Due after ten years | 8,485 | |
Fair Value | 32,597 | 32,215 |
Government Mortgage-Backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost Basis | 12,929 | 16,172 |
Available-for-Sale, Fair Value | ||
Fair Value | 13,275 | 16,611 |
Asset-Backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost Basis | 8,994 | 4,432 |
Available-for-Sale, Fair Value | ||
Fair Value | $ 9,293 | $ 4,710 |
Investment Securities (Schedu_2
Investment Securities (Schedule of Aggregate Fair Value and Unrealized Losses of Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, 12 Months or Longer | $ 142 | $ 817 |
Unrealized Losses, 12 Months or Longer | 4 | 10 |
Fair Value, Total | 142 | 817 |
Unrealized Losses, Total | 4 | 10 |
Government Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, 12 Months or Longer | 142 | 817 |
Unrealized Losses, 12 Months or Longer | 4 | 10 |
Fair Value, Total | 142 | 817 |
Unrealized Losses, Total | $ 4 | $ 10 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) $ in Thousands | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($)contract | Apr. 30, 2021 | Jun. 30, 2021USD ($)loancontract | Jun. 30, 2020USD ($)contract | Dec. 31, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of TDR | contract | 3 | 3 | 10 | |||
Troubled debt restructurings | $ 23,300 | $ 25,000 | $ 23,300 | |||
Commercial Real Estate One [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of TDR | contract | 7 | |||||
Troubled debt restructurings | $ 20,100 | $ 20,100 | ||||
Period of interest-only | 6 months | |||||
Commercial Real Estate One [Member] | Interest Only [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Troubled debt restructurings | 16,500 | $ 16,500 | ||||
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 | $ 2,100 | ||||
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 | $ 1,500 | ||||
Period for interest-only at reduced rate | 3 years | |||||
Commercial Real Estate Two [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of TDR | contract | 2 | |||||
Troubled debt restructurings | $ 165 | $ 165 | ||||
Period for interest-only at reduced rate | 2 years | |||||
Specific reserve | $ 8 | |||||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of TDR | contract | 2 | 9 | ||||
Commercial [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of TDR | contract | 1 | 3 | 1 | |||
Troubled debt restructurings | $ 81 | |||||
Period for principal and interest deferral | 3 months | |||||
Specific reserve | 1,200 | 1,800 | $ 40 | 1,800 | ||
CARES Act [Member] | Payment Deferral [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Payment deferral total | 44,000 | $ 18,900 | $ 44,000 | |||
CARES Act [Member] | Commercial Real Estate [Member] | Payment Deferral [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans in payment deferral | loan | 5 | 8 | ||||
Payment deferral total | 12,400 | $ 3,800 | $ 12,400 | |||
CARES Act [Member] | Commercial [Member] | Payment Deferral [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans in payment deferral | loan | 14 | 28 | ||||
Payment deferral total | 22,400 | $ 5,800 | $ 22,400 | |||
CARES Act [Member] | Residential Real Estate [Member] | Payment Deferral [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans in payment deferral | loan | 1 | |||||
Payment deferral total | 177 | $ 177 | ||||
CARES Act [Member] | Construction And Land Development [Member] | Payment Deferral [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans in payment deferral | loan | 1 | 1 | ||||
Payment deferral total | $ 9,000 | $ 9,300 | $ 9,000 | |||
CARES Act [Member] | Consumer, Residential Or Mortgage Warehouse [Member] | Payment Deferral [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans in payment deferral | loan | 0 | |||||
CARES Act [Member] | Consumer Or Mortgage Warehouse [Member] | Payment Deferral [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans in payment deferral | loan | 0 |
Loans (Schedule of Loans) (Deta
Loans (Schedule of Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | $ 1,359,353 | $ 1,337,563 | ||||
Allowance for loan losses | (19,412) | $ (19,032) | (18,518) | $ (17,158) | $ (16,674) | $ (13,844) |
Deferred loan fees, net | (5,306) | (4,235) | ||||
Net loans | 1,334,635 | 1,314,810 | ||||
Paycheck Protection Program [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Deferred fees | 1,700 | 933 | ||||
Commercial Real Estate [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 431,242 | 438,949 | ||||
Allowance for loan losses | (5,753) | (6,102) | (6,095) | (6,758) | (6,499) | (6,104) |
Commercial [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 637,780 | 565,976 | ||||
Allowance for loan losses | (12,396) | (11,512) | (10,543) | (7,925) | (7,761) | (6,086) |
Commercial [Member] | Paycheck Protection Program [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 43,300 | 41,800 | ||||
Residential Real Estate [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 26,618 | 32,785 | ||||
Allowance for loan losses | (141) | (155) | (184) | (207) | (213) | (254) |
Construction And Land Development [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 33,524 | 28,927 | ||||
Allowance for loan losses | (445) | (452) | (447) | (955) | (789) | (749) |
Consumer [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 3,047 | 5,547 | ||||
Allowance for loan losses | (336) | (445) | (586) | (851) | (1,049) | $ (650) |
Mortgage Warehouse [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Gross loans, amount | 227,142 | 265,379 | ||||
Allowance for loan losses | $ (341) | $ (366) | $ (663) | $ (462) | $ (296) |
Loans (Schedule of Allowance fo
Loans (Schedule of Allowance for Loans and Gross Impaired Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 19,032 | $ 16,674 | $ 18,518 | $ 13,844 |
Charge-offs | (1,401) | (426) | (1,750) | (752) |
Recoveries | 112 | 38 | 222 | 95 |
Provision (credit) | 1,669 | 872 | 2,422 | 3,971 |
Ending balance | 19,412 | 17,158 | 19,412 | 17,158 |
Commercial Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 6,102 | 6,499 | 6,095 | 6,104 |
Charge-offs | (150) | |||
Recoveries | 81 | |||
Provision (credit) | (349) | 259 | (273) | 654 |
Ending balance | 5,753 | 6,758 | 5,753 | 6,758 |
Commercial [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 11,512 | 7,761 | 10,543 | 6,086 |
Charge-offs | (1,366) | (142) | (1,409) | (239) |
Recoveries | 97 | 97 | 7 | |
Provision (credit) | 2,153 | 306 | 3,165 | 2,071 |
Ending balance | 12,396 | 7,925 | 12,396 | 7,925 |
Residential Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 155 | 213 | 184 | 254 |
Charge-offs | ||||
Recoveries | 2 | 2 | 4 | |
Provision (credit) | (16) | (6) | (45) | (51) |
Ending balance | 141 | 207 | 141 | 207 |
Construction And Land Development [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 452 | 789 | 447 | 749 |
Charge-offs | ||||
Recoveries | ||||
Provision (credit) | (7) | 166 | (2) | 206 |
Ending balance | 445 | 955 | 445 | 955 |
Consumer [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 445 | 1,049 | 586 | 650 |
Charge-offs | (35) | (284) | (191) | (513) |
Recoveries | 13 | 38 | 42 | 84 |
Provision (credit) | (87) | 48 | (101) | 630 |
Ending balance | 336 | 851 | 336 | 851 |
Mortgage Warehouse [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 366 | 296 | 663 | |
Charge-offs | ||||
Recoveries | ||||
Provision (credit) | (25) | 166 | (322) | 462 |
Ending balance | 341 | 462 | 341 | 462 |
Unallocated [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 67 | 1 | ||
Charge-offs | ||||
Recoveries | ||||
Provision (credit) | (67) | (1) | ||
Ending balance |
Loans (Schedule of Allowance _2
Loans (Schedule of Allowance for Loan Losses and Related Loan Balances by Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses: | ||||||
Ending balance: Individually evaluated for impairment | $ 2,831 | $ 2,024 | ||||
Ending balance: Collectively evaluated for impairment | 16,581 | 16,494 | ||||
Total allowance for loan losses ending balance | 19,412 | $ 19,032 | 18,518 | $ 17,158 | $ 16,674 | $ 13,844 |
Loans: | ||||||
Ending balance: Individually evaluated for impairment | 26,598 | 25,659 | ||||
Ending balance: Collectively evaluated for impairment | 1,332,755 | 1,311,904 | ||||
Total loans | 1,359,353 | 1,337,563 | ||||
Commercial Real Estate [Member] | ||||||
Allowance for loan losses: | ||||||
Ending balance: Collectively evaluated for impairment | 5,753 | 6,095 | ||||
Total allowance for loan losses ending balance | 5,753 | 6,102 | 6,095 | 6,758 | 6,499 | 6,104 |
Loans: | ||||||
Ending balance: Individually evaluated for impairment | 20,968 | 21,039 | ||||
Ending balance: Collectively evaluated for impairment | 410,274 | 417,910 | ||||
Total loans | 431,242 | 438,949 | ||||
Commercial [Member] | ||||||
Allowance for loan losses: | ||||||
Ending balance: Individually evaluated for impairment | 2,831 | 2,024 | ||||
Ending balance: Collectively evaluated for impairment | 9,565 | 8,519 | ||||
Total allowance for loan losses ending balance | 12,396 | 11,512 | 10,543 | 7,925 | 7,761 | 6,086 |
Loans: | ||||||
Ending balance: Individually evaluated for impairment | 5,470 | 4,458 | ||||
Ending balance: Collectively evaluated for impairment | 632,310 | 561,518 | ||||
Total loans | 637,780 | 565,976 | ||||
Residential Real Estate [Member] | ||||||
Allowance for loan losses: | ||||||
Ending balance: Collectively evaluated for impairment | 141 | 184 | ||||
Total allowance for loan losses ending balance | 141 | 155 | 184 | 207 | 213 | 254 |
Loans: | ||||||
Ending balance: Individually evaluated for impairment | 160 | 162 | ||||
Ending balance: Collectively evaluated for impairment | 26,458 | 32,623 | ||||
Total loans | 26,618 | 32,785 | ||||
Construction And Land Development [Member] | ||||||
Allowance for loan losses: | ||||||
Ending balance: Collectively evaluated for impairment | 445 | 447 | ||||
Total allowance for loan losses ending balance | 445 | 452 | 447 | 955 | 789 | 749 |
Loans: | ||||||
Ending balance: Collectively evaluated for impairment | 33,524 | 28,927 | ||||
Total loans | 33,524 | 28,927 | ||||
Consumer [Member] | ||||||
Allowance for loan losses: | ||||||
Ending balance: Collectively evaluated for impairment | 336 | 586 | ||||
Total allowance for loan losses ending balance | 336 | 445 | 586 | 851 | 1,049 | $ 650 |
Loans: | ||||||
Ending balance: Collectively evaluated for impairment | 3,047 | 5,547 | ||||
Total loans | 3,047 | 5,547 | ||||
Mortgage Warehouse [Member] | ||||||
Allowance for loan losses: | ||||||
Ending balance: Collectively evaluated for impairment | 341 | 663 | ||||
Total allowance for loan losses ending balance | 341 | $ 366 | 663 | $ 462 | $ 296 | |
Loans: | ||||||
Ending balance: Collectively evaluated for impairment | 227,142 | 265,379 | ||||
Total loans | $ 227,142 | $ 265,379 |
Loans (Schedule of Non-Accrual
Loans (Schedule of Non-Accrual Loans and Loan Delinquencies by Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 6,612 | $ 6,426 |
Total Current | 1,352,741 | 1,331,137 |
Total loans | 1,359,353 | 1,337,563 |
Non-accrual Loans | 4,666 | 5,419 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,928 | 4,674 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 551 | 367 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,133 | 1,385 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 132 | |
Total Current | 431,110 | 438,949 |
Total loans | 431,242 | 438,949 |
Non-accrual Loans | 114 | |
Commercial Real Estate [Member] | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 132 | |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,292 | 4,649 |
Total Current | 632,488 | 561,327 |
Total loans | 637,780 | 565,976 |
Non-accrual Loans | 3,615 | 4,198 |
Commercial [Member] | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,782 | 4,358 |
Commercial [Member] | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 137 | |
Commercial [Member] | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,373 | 291 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,146 | 1,631 |
Total Current | 25,472 | 31,154 |
Total loans | 26,618 | 32,785 |
Non-accrual Loans | 923 | 1,156 |
Residential Real Estate [Member] | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 255 | |
Residential Real Estate [Member] | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 399 | 346 |
Residential Real Estate [Member] | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 747 | 1,030 |
Construction And Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Current | 33,524 | 28,927 |
Total loans | 33,524 | 28,927 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 42 | 146 |
Total Current | 3,005 | 5,401 |
Total loans | 3,047 | 5,547 |
Non-accrual Loans | 14 | 65 |
Consumer [Member] | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14 | 61 |
Consumer [Member] | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15 | 21 |
Consumer [Member] | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13 | 64 |
Mortgage Warehouse [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Current | 227,142 | 265,379 |
Total loans | $ 227,142 | $ 265,379 |
Loans (Schedule of Impaired Loa
Loans (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
With no related allowance recorded: | |||||
Recorded Investment | $ 23,207 | $ 23,207 | $ 21,635 | ||
Unpaid Principal Balance | 23,664 | 23,664 | 21,915 | ||
Average Recorded Investment | 23,235 | $ 2,183 | 23,329 | $ 2,230 | |
Interest Income Recognized | 211 | 15 | 399 | 43 | |
With an allowance recorded: | |||||
Recorded Investment | 3,391 | 3,391 | 4,024 | ||
Unpaid Principal Balance | 3,422 | 3,422 | 4,605 | ||
Average Recorded Investment | 3,342 | 25,363 | 3,349 | 25,532 | |
Interest Income Recognized | 1 | 41 | 3 | 253 | |
Total | |||||
Recorded Investment | 26,598 | 26,598 | 25,659 | ||
Unpaid Principal Balance | 27,086 | 27,086 | 26,520 | ||
Related Allowance | 2,831 | 2,831 | 2,024 | ||
Average Recorded Investment | 26,577 | 27,546 | 26,678 | 27,762 | |
Interest Income Recognized | 212 | 56 | 402 | 296 | |
Commercial Real Estate [Member] | |||||
With no related allowance recorded: | |||||
Recorded Investment | 20,968 | 20,968 | 21,039 | ||
Unpaid Principal Balance | 21,158 | 21,158 | 21,312 | ||
Average Recorded Investment | 20,984 | 1,565 | 21,040 | 1,573 | |
Interest Income Recognized | 161 | 9 | 344 | 28 | |
With an allowance recorded: | |||||
Average Recorded Investment | 20,879 | 20,936 | |||
Interest Income Recognized | 41 | 252 | |||
Total | |||||
Recorded Investment | 20,968 | 20,968 | 21,039 | ||
Unpaid Principal Balance | 21,158 | 21,158 | 21,312 | ||
Average Recorded Investment | 20,984 | 22,444 | 21,040 | 22,509 | |
Interest Income Recognized | 161 | 50 | 344 | 280 | |
Commercial [Member] | |||||
With no related allowance recorded: | |||||
Recorded Investment | 2,079 | 2,079 | 434 | ||
Unpaid Principal Balance | 2,346 | 2,346 | 441 | ||
Average Recorded Investment | 2,090 | 371 | 2,128 | 383 | |
Interest Income Recognized | 47 | 4 | 50 | 10 | |
With an allowance recorded: | |||||
Recorded Investment | 3,391 | 3,391 | 4,024 | ||
Unpaid Principal Balance | 3,422 | 3,422 | 4,605 | ||
Average Recorded Investment | 3,342 | 4,484 | 3,349 | 4,596 | |
Interest Income Recognized | 1 | 3 | 1 | ||
Total | |||||
Recorded Investment | 5,470 | 5,470 | 4,458 | ||
Unpaid Principal Balance | 5,768 | 5,768 | 5,046 | ||
Related Allowance | 2,831 | 2,831 | 2,024 | ||
Average Recorded Investment | 5,432 | 4,855 | 5,477 | 4,979 | |
Interest Income Recognized | 48 | 4 | 53 | 11 | |
Residential Real Estate [Member] | |||||
With no related allowance recorded: | |||||
Recorded Investment | 160 | 160 | 162 | ||
Unpaid Principal Balance | 160 | 160 | 162 | ||
Average Recorded Investment | 161 | 164 | 161 | 164 | |
Interest Income Recognized | 3 | 2 | 5 | 5 | |
Total | |||||
Recorded Investment | 160 | 160 | 162 | ||
Unpaid Principal Balance | 160 | 160 | $ 162 | ||
Average Recorded Investment | 161 | 164 | 161 | 164 | |
Interest Income Recognized | $ 3 | 2 | $ 5 | 5 | |
Construction And Land Development [Member] | |||||
With no related allowance recorded: | |||||
Average Recorded Investment | 83 | 110 | |||
Total | |||||
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 ($)contract | Jun. 30, 2021USD ($)contract | Jun. 30, 2020USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 3 | 3 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 246 | $ 1,868 | $ 18,892 |
Post-Modification Outstanding Recorded Investment | $ 246 | $ 1,868 | $ 20,392 |
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 | 3 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 81 | $ 1,868 | $ 81 |
Post-Modification Outstanding Recorded Investment | $ 81 | $ 1,868 | $ 81 |
Loans (Schedule of Loans by Ris
Loans (Schedule of Loans by Risk Rating and Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 1,359,353 | $ 1,337,563 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,246,980 | 1,234,296 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 47,537 | 31,327 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 34,125 | 35,168 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,969 | |
Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 28,742 | 36,772 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 431,242 | 438,949 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 390,847 | 401,541 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 20,589 | 17,702 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 19,806 | 19,706 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 637,780 | 565,976 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 596,505 | 538,449 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 26,948 | 13,625 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 12,358 | 13,902 |
Commercial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,969 | |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 26,618 | 32,785 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 923 | 1,560 |
Residential Real Estate [Member] | Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 25,695 | 31,225 |
Construction And Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 33,524 | 28,927 |
Construction And Land Development [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 32,486 | 28,927 |
Construction And Land Development [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,038 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,047 | 5,547 |
Consumer [Member] | Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,047 | 5,547 |
Mortgage Warehouse [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 227,142 | 265,379 |
Mortgage Warehouse [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 227,142 | $ 265,379 |
Deposits (Schedule of Deposit B
Deposits (Schedule of Deposit Balances by Type) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
NOW and demand | $ 646,033 | $ 554,095 |
Regular savings | 154,201 | 151,341 |
Money market deposits | 395,953 | 353,793 |
Total non-certificate accounts | 1,196,187 | 1,059,229 |
Certificate accounts of $250,000 or more | 4,864 | 5,167 |
Certificate accounts less than $250,000 | 120,738 | 173,032 |
Total certificate accounts | 125,602 | 178,199 |
Total deposits | $ 1,321,789 | $ 1,237,428 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - Federal Home Loan Bank [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Federal Home Loan Bank, Advances [Line Items] | |
Aggregate borrowings from FHLB | $ 13.5 |
Minimum [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Interest rates on FHLB advances ranged from | 1.21% |
Term of FHLB borrowings | 1 year |
Maximum [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Interest rates on FHLB advances ranged from | 3.01% |
Weighted Average [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Interest rates on FHLB advances ranged from | 2.11% |
Borrowings (Schedule of Maturit
Borrowings (Schedule of Maturities of Advances from FHLB) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Borrowings [Abstract] | ||
2023 | $ 8,500 | |
2025 | 5,000 | |
Total | $ 13,500 | $ 13,500 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Nonrecurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 560 | $ 2,000 |
Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 560 | 2,000 |
Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 560 | 2,000 |
Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 560 | 2,000 |
Carrying Amount [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,400 | 4,000 |
Reserves | $ 2,800 | $ 2,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | $ 32,597 | $ 32,215 |
State And Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 10,029 | 10,894 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 9,293 | 4,710 |
Government Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 13,275 | 16,611 |
Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 32,597 | 32,215 |
Recurring Basis [Member] | State And Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 10,029 | 10,894 |
Recurring Basis [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 9,293 | 4,710 |
Recurring Basis [Member] | Government Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 13,275 | 16,611 |
Recurring Basis [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 32,597 | 32,215 |
Recurring Basis [Member] | Significant Other Observable Inputs Level 2 [Member] | State And Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 10,029 | 10,894 |
Recurring Basis [Member] | Significant Other Observable Inputs Level 2 [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | 9,293 | 4,710 |
Recurring Basis [Member] | Significant Other Observable Inputs Level 2 [Member] | Government Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | $ 13,275 | $ 16,611 |
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, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 560 | $ 2,000 |
Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 560 | 2,000 |
Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 560 | 2,000 |
Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 560 | $ 2,000 |
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 | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | $ 560 | $ 2,000 |
Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | 560 | 2,000 |
Commercial [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | 560 | 2,000 |
Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans Fair Value | $ 560 | $ 2,000 |
Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 0.00% | |
Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 10.00% |
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, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||||
Cash and cash equivalents | $ 140,384 | $ 83,819 | $ 38,178 | $ 59,658 |
Available-for-sale debt securities | 32,597 | 32,215 | ||
Federal Home Loan Bank of Boston stock | 785 | 895 | ||
Loans, net | 1,334,635 | 1,314,810 | ||
Accrued interest receivable | 5,821 | 6,371 | ||
Financial liabilities: | ||||
Deposits | 1,321,789 | 1,237,428 | ||
Borrowings | 13,500 | 13,500 | ||
Carrying Amount [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 140,384 | 83,819 | ||
Available-for-sale debt securities | 32,597 | 32,215 | ||
Federal Home Loan Bank of Boston stock | 785 | 895 | ||
Loans, net | 1,334,635 | 1,314,810 | ||
Accrued interest receivable | 5,821 | 6,371 | ||
Financial liabilities: | ||||
Deposits | 1,321,789 | 1,237,428 | ||
Borrowings | 13,500 | 13,500 | ||
Fair Value [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 140,384 | 83,819 | ||
Available-for-sale debt securities | 32,597 | 32,215 | ||
Loans, net | 1,341,490 | 1,321,143 | ||
Accrued interest receivable | 5,821 | 6,371 | ||
Financial liabilities: | ||||
Deposits | 1,321,955 | 1,237,867 | ||
Borrowings | 13,907 | 14,016 | ||
Quoted Prices In Active Markets Identical Assets Level 1 [Member] | Fair Value [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 140,384 | 83,819 | ||
Significant Other Observable Inputs Level 2 [Member] | Fair Value [Member] | ||||
Financial assets: | ||||
Available-for-sale debt securities | 32,597 | 32,215 | ||
Accrued interest receivable | 5,821 | 6,371 | ||
Financial liabilities: | ||||
Deposits | 1,321,955 | 1,237,867 | ||
Borrowings | 13,907 | 14,016 | ||
Significant Unobservable Inputs Level 3 [Member] | Fair Value [Member] | ||||
Financial assets: | ||||
Loans, net | $ 1,341,490 | $ 1,321,143 |
Regulatory Capital (Narrative)
Regulatory Capital (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Mar. 31, 2021 | Feb. 28, 2021 | Oct. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||||
Common equity Tier 1 ("CETI") capital ratio | 0.045% | 0.045% | 0.045% | |||||||||
Minimum Tier 1 capital to risk-weighted assets ratio | 0.060 | 0.060 | 0.060 | |||||||||
Minimum total capital to risk-weighted assets ratio | 0.080 | 0.080 | 0.080 | |||||||||
Minimum Tier 1 leverage ratio | 0.040 | 0.040 | 0.040 | |||||||||
CETI capital ratio | 0.065% | 0.065% | 0.065% | |||||||||
Tier 1 ratio | 0.080 | 0.080 | 0.080 | |||||||||
Total risk based capital ratio | 0.100 | 0.100 | 0.100 | |||||||||
Tier 1 leverage ratio | 5.00% | 5.00% | ||||||||||
Capital conservation buffer | 2.50% | |||||||||||
CBLR leverage ratio | 8.00% | |||||||||||
Net income | $ 3,166 | $ 3,250 | $ 7,463 | $ 4,481 | ||||||||
Dividends | $ 12,100 | $ 10,700 | ||||||||||
Minimum [Member] | ||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||||
CBLR leverage ratio | 8.00% | |||||||||||
Growth Act [Member] | Minimum [Member] | ||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||||
CBLR leverage ratio | 9.00% | |||||||||||
Growth Act [Member] | Maximum [Member] | ||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||||
CBLR total consolidated assets | $ 10,000,000 | |||||||||||
Forecast [Member] | ||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||||
CBLR leverage ratio | 9.00% | |||||||||||
Forecast [Member] | Maximum [Member] | ||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||||
CBLR leverage ratio | 8.50% | |||||||||||
Common Stock [Member] | ||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||||
Repurchase of common stock (in shares) | 395,884 | 869,099 | ||||||||||
Retained Earnings [Member] | ||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||||
Net income | $ 3,166 | $ 3,250 | $ 7,463 | $ 4,481 | ||||||||
Repurchase Program [Member] | Common Stock [Member] | ||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||||
Plan to repurchase (in shares) | 1,400,000 | 1,000,000 | ||||||||||
Repurchase of common stock (in shares) | 1,000,000 | 869,099 |
Regulatory Capital (Schedule of
Regulatory Capital (Schedule of Bank's Actual Capital Amounts and Ratios) (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Regulatory Capital [Abstract] | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 208,982 | $ 199,377 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 0.1511 | 0.1460 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 110,667 | $ 109,273 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 0.080 | 0.080 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 138,334 | $ 136,591 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.100 | 0.100 |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Amount | $ 191,665 | $ 182,286 |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Ratio | 0.1386 | 0.1335 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 83,001 | $ 81,955 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 0.060 | 0.060 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 110,667 | $ 109,273 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.080 | 0.080 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 191,665 | $ 182,286 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.1386 | 0.1335 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 62,250 | $ 61,466 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 0.045% | 0.045% |
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 89,917 | $ 88,784 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.065% | 0.065% |
Tier 1 Capital (to Average Assets), Actual Capital, Amount | $ 191,665 | $ 182,286 |
Tier 1 Capital (to Average Assets), Actual Capital, Ratio | 0.1238 | 0.1237 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Amount | $ 61,914 | $ 58,926 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Ratio | 0.040 | 0.040 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 77,393 | $ 73,658 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.050 | 0.050 |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan (Narrative) (Details) - USD ($) $ in Thousands | Oct. 15, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Employee Stock Ownership Plan [Abstract] | ||||||
ESOP shares | 1,538,868 | 1,538,868 | 1,538,868 | |||
Proceeds of a loan | $ 11,800 | |||||
ESOP payable term | 15 years | |||||
ESOP prime rate percentage | 3.25% | |||||
Number of shares committed to be released per year through 2033 | 89,757 | 89,757 | ||||
Fair value of unallocated shares | $ 18,300 | $ 18,300 | ||||
Compensation expense | $ 361 | $ 194 | $ 647 | $ 444 |
Employee Stock Ownership Plan_3
Employee Stock Ownership Plan (Schedule of Shares Held by the ESOP) (Details) - shares | Jun. 30, 2021 | Dec. 31, 2020 |
Share-Based Compensation | ||
Allocated | 372,014 | 282,256 |
Committed to be released | 44,879 | 89,758 |
Unallocated | 1,121,975 | 1,166,854 |
Total | 1,538,868 | 1,538,868 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Common Share [Abstract] | ||||
Anti-dilutive shares | 115,385 | 821,186 | 706,408 | 70,639 |
Earnings Per Common Share (Sche
Earnings Per Common Share (Schedule of Earning per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Common Share [Abstract] | ||||
Net Income attributable to common shareholders | $ 3,166 | $ 3,250 | $ 7,463 | $ 4,481 |
Average number of common shares issued | 18,293,573 | 19,474,950 | 18,532,879 | 19,475,599 |
Less: | ||||
average unallocated ESOP shares | (1,129,452) | (1,219,215) | (1,140,610) | (1,230,434) |
average unvested restricted stock | (385,423) | (105,629) | (372,380) | (113,744) |
Average number of common shares outstanding to calculate basic earnings per common share | 16,778,698 | 18,150,106 | 17,019,889 | 18,131,421 |
Effect of dilutive unvested restricted stock and stock option awards | 559,964 | 29,752 | 422,522 | 66,225 |
Average number of common shares outstanding to calculate diluted earnings per common share | 17,338,662 | 18,179,858 | 17,442,411 | 18,197,646 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.19 | $ 0.18 | $ 0.44 | $ 0.25 |
Diluted (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.43 | $ 0.25 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Share based compensation expenses | $ 304 | $ 104 | $ 576 | $ 214 |
Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Share based compensation expenses | $ 370 | $ 138 | $ 702 | $ 289 |
2016 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 902,344 | 902,344 | ||
Options expiration period | 10 years | |||
2016 Equity Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 360,935 | 360,935 | ||
2020 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 1,021,239 | 1,021,239 | ||
2020 Equity Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 408,495 | 408,495 | ||
Minimum [Member] | 2016 And 2020 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Vesting period (years) | 3 years | |||
Maximum [Member] | 2016 And 2020 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
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, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (years) | 5 years |
Expiration date (years) | 10 years |
Expected volatility | 34.41% |
Expected life (years) | 7 years 6 months |
Expected dividend yield | 1.07% |
Risk free interest rate | 1.19% |
Fair value per option | $ 5.06 |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Stock Option Grants Activity) (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021 | |
Stock Option Awards | |
Outstanding, beginning | 1,644,731 |
Granted | 150,000 |
Forfeited | |
Exercised | (15,764) |
Outstanding, ending | 1,778,967 |
Outstanding and expected to vest at June 30, 2021 | 1,778,967 |
Vested and Exercisable at June 30, 2021 | 612,925 |
Unrecognized compensation cost | $ 3,766 |
Weighted average remaining recognition period (years) | 4 years 1 month 24 days |
Weighted Average Exercise Price | |
Outstanding, beginning | $ 10.25 |
Granted | 15 |
Forfeited | |
Exercised | 8.61 |
Outstanding, ending | 10.66 |
Outstanding and expected to vest at June 30, 2021 | 10.66 |
Vested and Exercisable at June 30, 2021 | $ 8.81 |
Weighted Average Remaining Contractual Term (years) | |
Outstanding at June 30, 2021 | 7 years 8 months 26 days |
Outstanding and expected to vest at June 30, 2021 | 7 years 8 months 26 days |
Vested and Exercisable at June 30, 2021 | 5 years 5 months 23 days |
Aggregate Intrinsic Value | |
Outstanding at June 30, 2021 | $ 10,047 |
Outstanding and expected to vest at June 30, 2021 | 10,047 |
Vested and Exercisable at June 30, 2021 | $ 4,597 |
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, 2021USD ($)$ / sharesshares | |
Number of Shares | |
Unvested restricted stock awards, beginning | shares | 387,683 |
Granted | shares | 60,000 |
Forfeited | shares | |
Vested | shares | (810) |
Unvested restricted stock awards, ending | shares | 446,873 |
Unrecognized compensation cost | $ | $ 4,374 |
Weighted average remaining recognition period (years) | 4 years 1 month 20 days |
Weighted Average Grant Price | |
Unvested restricted stock awards, beginning | $ / shares | $ 11.10 |
Granted | $ / shares | 15 |
Forfeited | $ / shares | |
Vested | $ / shares | 12.35 |
Unvested restricted stock awards, ending | $ / shares | $ 11.62 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Leases [Abstract] | |||
Operating right-of-use assets | $ 4,180 | $ 4,258 | |
Operating lease liabilities | $ 4,438 | $ 4,488 | |
Number of leased branch locations | item | 2 | ||
Number of leased loan production office | item | 1 | ||
Operating leases expense | $ 157 | $ 150 |
Leases (Schedule of Information
Leases (Schedule of Information Regarding Operating Leases) (Details) | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Line Items] | ||
Weighted-average discount rate | 3.56% | 3.54% |
Weighted-average remaining lease term | 27 years 3 months 18 days | 27 years 7 months 6 days |
Minimum [Member] | ||
Leases [Line Items] | ||
Range of lease expiration dates | 2 years | 2 years |
Range of lease renewal options | 5 years | 5 years |
Maximum [Member] | ||
Leases [Line Items] | ||
Range of lease expiration dates | 14 years 6 months | 15 years |
Range of lease renewal options | 20 years | 20 years |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fiscal Year-End | ||
2021 | $ 129 | $ 258 |
2022 | 261 | 261 |
2023 | 264 | 264 |
2024 | 270 | 270 |
2025 | 280 | 280 |
Thereafter | 6,325 | 6,325 |
Total lease payments | 7,529 | 7,658 |
Less imputed interest | (3,091) | (3,170) |
Total lease liabilities | $ 4,438 | $ 4,488 |