Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 16, 2023 | Jun. 30, 2022 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Period End Date | Dec. 31, 2022 | ||
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, $0.01 par value | ||
Trading Symbol | PVBC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 242 | ||
Entity Common Stock, Shares Outstanding | 17,703,586 | ||
Documents Incorporated by Reference | Portions of the Registrant’s proxy statement for the 2023 Annual Meeting of Stockholders (Part III). | ||
Entity Central Index Key | 0001778784 | ||
Auditor Name | Crowe LLP | ||
Auditor Location | Boston, Massachusetts | ||
Auditor Firm ID | 173 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 42,923 | $ 22,470 |
Short-term investments | 37,706 | 130,645 |
Cash and cash equivalents | 80,629 | 153,115 |
Debt securities available-for-sale (at fair value) | 28,600 | 36,837 |
Federal Home Loan Bank stock, at cost | 4,266 | 785 |
Loans held for sale | 22,846 | |
Loans, net of allowance for loan losses of $28,069 and $19,496 as of December 31, 2022 and 2021, respectively | 1,416,047 | 1,433,803 |
Bank owned life insurance | 43,615 | 42,569 |
Premises and equipment, net | 13,580 | 14,258 |
Other repossessed assets | 6,051 | |
Accrued interest receivable | 6,597 | 5,703 |
Right-of-use assets | 3,942 | 4,102 |
Deferred tax asset, net | 16,793 | 9,957 |
Other assets | 16,261 | 5,308 |
Total assets | 1,636,381 | 1,729,283 |
Deposits: | ||
Noninterest-bearing | 520,226 | 626,587 |
Interest-bearing | 759,356 | 833,308 |
Total deposits | 1,279,582 | 1,459,895 |
Borrowings: | ||
Short-term borrowings | 108,500 | |
Long-term borrowings | 18,329 | 13,500 |
Total borrowings | 126,829 | 13,500 |
Operating lease liabilities | 4,282 | 4,387 |
Other liabilities | 18,146 | 17,719 |
Total liabilities | 1,428,839 | 1,495,501 |
Shareholders' equity: | ||
Preferred stock; authorized 50,000 shares: no shares issued and outstanding | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 17,669,698 and 17,854,649 shares issued and outstanding at December 31, 2022 and 2021, respectively | 177 | 179 |
Additional paid-in capital | 122,847 | 123,498 |
Retained earnings | 94,630 | 118,087 |
Accumulated other comprehensive (loss) income | (2,200) | 649 |
Unearned compensation - ESOP | (7,912) | (8,631) |
Total shareholders' equity | 207,542 | 233,782 |
Total liabilities and shareholders' equity | $ 1,636,381 | $ 1,729,283 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Loans, allowance for loan losses | $ 28,069 | $ 19,496 |
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 | 17,669,698 | 17,854,649 |
Common stock, shares outstanding | 17,669,698 | 17,854,649 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 77,253 | $ 63,873 |
Interest and dividends on debt securities available-for-sale | 797 | 722 |
Interest on short-term investments | 1,277 | 208 |
Total interest and dividend income | 79,327 | 64,803 |
Interest expense: | ||
Interest on deposits | 3,578 | 3,085 |
Interest on short-term borrowings | 422 | |
Interest on long-term borrowings | 297 | 285 |
Total interest expense | 4,297 | 3,370 |
Net interest and dividend income | 75,030 | 61,433 |
Provision for loan losses | 56,428 | 3,887 |
Net interest and dividend income after provision for loan losses | 18,602 | 57,546 |
Noninterest income: | ||
Customer service fees on deposit accounts | 2,931 | 1,832 |
Service charges and fees - other | 1,770 | 2,003 |
Bank owned life insurance income | 1,046 | 1,195 |
Gain on loans sold, net | 272 | 47 |
Other income | 130 | 89 |
Total noninterest income | 6,149 | 5,166 |
Noninterest expense: | ||
Salaries and employee benefits | 31,737 | 28,782 |
Occupancy expense | 1,702 | 1,687 |
Equipment expense | 582 | 514 |
Deposit insurance | 1,023 | 482 |
Data processing | 1,374 | 1,325 |
Marketing expense | 412 | 279 |
Professional fees | 4,695 | 2,083 |
Directors' compensation | 1,026 | 992 |
Software depreciation and implementation | 1,450 | 1,014 |
Insurance expense | 1,791 | 152 |
Service fees | 931 | 698 |
Other | 5,286 | 2,611 |
Total noninterest expense | 52,009 | 40,619 |
(Loss) income before income tax (benefit) expense | (27,258) | 22,093 |
Income tax (benefit) expense | (5,790) | 5,954 |
Net (loss) income | $ (21,468) | $ 16,139 |
(Loss) Earnings per share: | ||
Basic | $ (1.30) | $ 0.96 |
Diluted | $ (1.30) | $ 0.93 |
Weighted Average Shares: | ||
Basic | 16,482,623 | 16,772,628 |
Diluted | 16,482,623 | 17,302,007 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Abstract] | ||
Net (loss) income | $ (21,468) | $ 16,139 |
Other comprehensive (loss) income: | ||
Unrealized holding losses arising during the period on debt securities available-for-sale | (3,709) | (548) |
Unrealized loss | (3,709) | (548) |
Income tax effect | 860 | 139 |
Total other comprehensive loss | (2,849) | (409) |
Comprehensive (loss) income | $ (24,317) | $ 15,730 |
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 (Loss) Income [Member] | Unearned Compensation ESOP [Member] | Total |
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 (loss) income | 16,139 | 16,139 | ||||
Dividends declared, net of forfeitures | (2,560) | (2,560) | ||||
Other comprehensive loss | (409) | (409) | ||||
Stock-based compensation expense, net of forfeitures | 2,545 | 2,545 | ||||
Restricted stock award grants, net of forfeitures (in shares) | (21,320) | |||||
Repurchase of common stock | $ (12) | (18,336) | (18,348) | |||
Repurchase of common stock (in shares) | (1,240,304) | |||||
Shares surrendered related to tax withholdings on restricted stock awards | (614) | (614) | ||||
Shares surrendered related to tax withholdings on restricted stock awards (in shares) | (32,303) | |||||
Stock options exercised, net | (241) | (241) | ||||
Stock options exercised, net (in shares) | 58,392 | |||||
ESOP shares earned | 694 | 720 | 1,414 | |||
Balance at Dec. 31, 2021 | $ 179 | 123,498 | 118,087 | 649 | (8,631) | 233,782 |
Balance (in shares) at Dec. 31, 2021 | 17,854,649 | |||||
Net (loss) income | (21,468) | (21,468) | ||||
Dividends declared, net of forfeitures | (1,989) | (1,989) | ||||
Other comprehensive loss | (2,849) | (2,849) | ||||
Stock-based compensation expense, net of forfeitures | 1,854 | 1,854 | ||||
Restricted stock award grants, net of forfeitures (in shares) | 9,673 | |||||
Repurchase of common stock | $ (2) | (2,858) | (2,860) | |||
Repurchase of common stock (in shares) | (180,434) | |||||
Shares surrendered related to tax withholdings on restricted stock awards | (113) | (113) | ||||
Shares surrendered related to tax withholdings on restricted stock awards (in shares) | (12,748) | |||||
Stock options exercised, net | (108) | (108) | ||||
Stock options exercised, net (in shares) | 17,904 | |||||
ESOP shares earned | 574 | 719 | 1,293 | |||
Balance at Dec. 31, 2022 | $ 177 | $ 122,847 | $ 94,630 | $ (2,200) | $ (7,912) | $ 207,542 |
Balance (in shares) at Dec. 31, 2022 | 17,669,698 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Abstract] | ||
Dividends declared, per share | $ 0.12 | $ 0.15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (21,468) | $ 16,139 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Amortization of securities premiums, net of accretion | 186 | 181 |
ESOP expense | 1,293 | 1,414 |
Change in deferred loan fees, net | 1,700 | (123) |
Provision for loan losses | 56,428 | 3,887 |
Depreciation and amortization | 1,100 | 1,026 |
(Increase) Decrease in accrued interest receivable | (894) | 668 |
Deferred tax benefit | (5,976) | (578) |
Share-based compensation expense | 1,854 | 2,545 |
Bank-owned life insurance income | (1,046) | (1,195) |
Principal repayments of operating lease obligations | (105) | (101) |
Gain on loans sold, net | (272) | |
Loss on sale of other repossessed assets | 26 | |
Net increase in other assets | (11,348) | (2,760) |
Net increase in other liabilities | 427 | 3,210 |
Net cash provided by operating activities | 21,905 | 24,313 |
Cash flows from investing activities: | ||
Purchases of debt securities available-for-sale | (13,626) | |
Proceeds from pay downs, maturities and calls of debt securities available-for-sale | 4,342 | 8,275 |
(Purchase) Redemption of Federal Home Loan Bank stock | (3,481) | 110 |
Loan originations and purchases, net of paydowns | (61,104) | (145,603) |
Proceeds from loan sales | 30,839 | |
Proceeds from other repossessed asset sales | 3,777 | |
Proceeds from principal repayments on loans held for sale | 2,560 | |
Additions to premises and equipment | (262) | (412) |
Purchase of bank owned life insurance | (5,500) | |
Proceeds from distribution of bank owned life insurance | 810 | |
Writedown of other repossessed assets | 597 | |
Write down of other assets and receivables | 395 | 225 |
Net cash used in investing activities | (22,337) | (155,721) |
Cash flows from financing activities: | ||
Net (decrease) increase in noninterest-bearing accounts | (106,361) | 243,508 |
Net decrease in interest-bearing accounts | (73,952) | (21,041) |
Cash dividends paid on common stock | (1,989) | (2,560) |
Payments from exercise of stock options, net | (108) | (241) |
Net change in short-term borrowings | 108,500 | |
Proceeds from Federal Home Loan Bank long-term advances | 4,840 | |
Payments made on Federal Home Loan Bank long-term advances | (11) | |
Shares surrendered related to tax withholdings on restricted stock awards | (113) | (614) |
Repurchase of common stock | (2,860) | (18,348) |
Net cash (used in) provided by financing activities | (72,054) | 200,704 |
Net (decrease) increase in cash and cash equivalents | (72,486) | 69,296 |
Cash and cash equivalents at beginning of year | 153,115 | 83,819 |
Cash and cash equivalents at end of year | 80,629 | 153,115 |
Supplemental disclosures: | ||
Interest paid | 4,278 | 3,085 |
Income taxes paid | 5,156 | 8,379 |
Reclassification of loans held for sale to loans held for investment | 9,599 | |
Loans transferred to other repossessed assets | $ 10,451 | |
Transfer from loans to loans held for sale | $ 22,846 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Basis of Presentation [Abstract] | |
Nature of Operations | NOTE 1 — NATURE OF OPERATIONS Provident Bancorp, Inc. (the “Company”) is a Maryland corporation that was incorporated in 2019 whose primary purpose is to act as the holding company for BankProv (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 loan production offices in Boston, Massachusetts and Ponte Vedra, Florida. The Bank’s primary deposit products are checking, savings, and term certificate accounts and its primary lending products are commercial real estate, commercial, and mortgage warehouse loans. BankProv is also a commercial bank for corporate clients, specializing in offering adaptive and technology-first banking solutions to niche markets. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | NOTE 2 — ACCOUNTING POLICIES The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and predominant practices within the banking industry. The consolidated financial statements were prepared using the accrual basis of accounting. Use of Estimates To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Basis of Presentation The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation, 5 Market Street Security Corporation, and Prov 1, LLC. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. Prov 1, LLC was established to engage in any lawful act or activity for which limited liability companies may be organized. All material intercompany balances and transactions have been eliminated in consolidation. Significant Concentrations of Credit Risk The primary lending area for the Bank includes Northeastern Massachusetts and Southern New Hampshire, with a focus on Essex County, Massachusetts, and Hillsborough and Rockingham Counties, New Hampshire, which are part of, and bedroom communities to, the technology corridor between Boston, Massachusetts and Concord, New Hampshire. The Bank also offers select products on a national basis, which includes the enterprise value loan product and mortgage warehouse product. The primary deposit-gathering area is currently concentrated in Essex County, Massachusetts, and Rockingham County and Hillsborough County, New Hampshire. The Bank does offer deposit services to customers nationally in the enterprise value and mortgage warehouse loan products, as well as banking as a service customers. The Company believes that it does not have any significant loan concentrations or investment securities in any one industry or with any customer. Reclassification Certain amounts in the prior year have been reclassified to be consistent with the current year's consolidated financial statement presentation. The reclassifications had no effect on the net income reported in the consolidated statements of operations. Cash and Cash Equivalents Cash and cash equivalents include cash and deposits with other financial institutions with maturities fewer than 90 days. Net cash flows are reported for customer loan and deposit transactions and interest-bearing deposits in other financial institutions. Debt Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Debt securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized using level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. The Company evaluates debt securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For debt securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. The Company also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the statement of operations and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank of Boston (the “FHLB”), the Company is required to invest in $ 100 par value stock of the FHLB. The FHLB capital structure mandates that members own stock as determined by their Total Stock Investment Requirement, which is the sum of a member’s Membership Stock Investment Requirement and Activity-Based Stock Investment Requirement. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Held for Sale Loans originated and intended for sale are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. As of December 31, 2021, we transferred our salable residential real estate loan portfolio to held for sale: a portion of these loans were sold with servicing released in June 2022 and the remaining portion was reclassified to held for investment. Loans Loan receivables that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for amounts due to borrowers on unadvanced loans, any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is recognized as an adjustment of the related loan yield using the interest method. The Company is amortizing these amounts over the contractual life of the related loans. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash. Residential real estate loans are generally placed on non-accrual status when reaching 90 days past due. Past due status is based on the contractual terms of the loan. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on non-accrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged-off upon reaching 120 or 180 days past due depending on the type of loan. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Interest income received on non-accrual loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. 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 non-accrual status for approximately six months before management considers such loans for return to accruing status. Accruing restructured loans are placed onto non-accrual 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. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the size and composition of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and are classified as impaired. The Company classifies a loan as impaired when, based on current information and events, it is probable that it will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, we do not separately identify individual consumer and residential loans for impairment disclosures. The specific component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The estimates and assumptions that went into the valuation of the underlying collateral for the loans secured by cryptocurrency mining rigs were based on market data and sales recorded by the Company. TDRs are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by all loan segments. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. The historical loss factors are adjusted for the following qualitative factors: levels/trends in delinquencies and non-accruals, economic conditions, portfolio trends, portfolio concentrations, loan grading and management’s discretion. The determination of qualitative factors involves significant judgment. The allowance for loan loss is determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate : Loans in this segment are primarily income-producing properties throughout Massachusetts and New Hampshire. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management periodically obtains rent rolls and continually monitors the cash flows of these loans. Commercial : Loans in this segment are made to businesses and are generally secured by assets of the business. Also included in this segment are loans to digital asset customers which are secured by digital mining asset equipment or by the United States dollar (“USD”) value of the digital currency. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Residential real estate : All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. We no longer originate residential real estate loans, and previously we did not typically originate loans with a loan-to-value ratio greater than 80 % or grant subprime loans. Loans with loan to value ratios greater than 80 % require the purchase of private mortgage insurance. Construction and land development : Loans in this segment primarily include speculative and pre-sold real estate development loans for which payment is derived from sale of the property and a conversion of the construction loans to permanent loans for which payment is then derived from cash flows of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Consumer : Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Mortgage warehouse: Loans in this segment are primarily facility lines to non-bank mortgage origination companies. The underlying collateral of these loans are residential real estate loans. Loans are originated by the mortgage companies for sale into secondary markets, which is typically within 15 days of the loan funding, with the exception of construction loans which generally take longer to pay off due to the nature of the loan. The primary source of repayment is the cash flow upon the sale of the loans. The credit risk associated with this type of lending is the risk that the mortgage companies are unable to sell the loans . An unallocated component can be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Bank Owned Life Insurance Bank owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of operations and are not subject to income taxes. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Depreciation on building and leasehold improvements is calculated primarily using the straight-line method with useful lives of seven to 40 years . Furniture and fixtures are depreciated using the straight-line method with useful lives of one to 15 years . Computer equipment is also depreciated using the straight-line method with useful lives ranging from two to five years . Other Real Estate Owned and Repossessed Assets Assets acquired through, or in lieu of, loan foreclosure or repossession are held for sale and are initially recorded at fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Qualified Affordable Housing Project Investments The Bank invests in qualified affordable housing projects. At December 31, 2022 and 2021, the balance of the investment for qualified affordable housing projects was $ 7.3 million and $ 1.1 million, respectively. These balances are reflected in the other assets line on the Consolidated Balance Sheets. The Company did no t recognize any amortization expense or tax credits for the years ended December 31, 2022 and 2021 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. Leases The Company determines if an arrangement is a lease at inception. Lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. Advertising The Company directly expenses costs associated with advertising as they are incurred. (Loss) Earnings per Share Basic (loss) earnings per common share is net (loss) income divided by the weighted average number of common shares outstanding during the period. BankProv Employee Stock Ownership Plan (the “ESOP”) shares are considered outstanding for this calculation unless unallocated. Diluted (loss) earnings per common share is computed in a manner similar to that of basic (loss) 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 are not deemed outstanding for (loss) earnings per share calculations. Losses, earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements, if applicable. Employee Stock Ownership Plan Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity on the consolidated balance sheets. The difference between the average fair value and the cost of the shares by the ESOP is recorded as an adjustment to additional paid-in-capital. Stock-Based Compensation Plans The Company measures and recognizes compensation cost relating to stock-based payment transactions based on the grant-date fair value of the equity instruments issued. Stock-based compensation is recognized over the period the employee is required to provide services for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. The determination of fair value involves a number of significant estimates, which require a number of assumptions to determine the model inputs. The fair value of restricted stock is recorded based on the grant date value of the equity instrument issued. Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on debt securities available-for-sale which are also recognized as separate components of equity. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to shareholders. Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. 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.” Commonly referred to as “CECL” , t he 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. In October 2019, FASB approved a delay in the implementation until January 2023 for smaller reporting companies as defined by the SEC. The amendments in this update were effective for the Company on January 1, 2023. As previously disclosed, the Company formed a cross-functional team to work through its implementation of CECL. The Company has completed its selection of the modeling methods, has run parallel processes and is in final review stages of completing its documentation including third party model validations. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326) – Trouble Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) , which eliminates the accounting guidance on trouble debt restructurings (“TDRs”) for creditors in Accounting Standards Codification (“ASC”) 310-40 and amends the guidance on “vintage disclosures” to require disclosures of current-period gross write-offs by year of origination. The ASC also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022 - 02 was effective for the Company on January 1, 2023 in conjunction with the adoption of ASU No. 2016-13. The Company is finalizing its assessment of the impact of the adoption of this ASU, and does not expect it to have a material impact on the Company’s Consolidated Financial Statements, however, the foregoing estimates are subject to change as management completes the implementation review in the first quarter of 2023. 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’s cross-function al working group continues to implement its plan to transition from LIBOR consistent with industry timelines. The Company has selected the Secured Overnight Financing Rate (“SOFR”) as its primary alternative to LIBOR and may also use alternative reference rates, based on the individual needs of its customers and the type of credit being extended. The cross-functional working group has identified LIBOR-indexed products and is evaluating fallback language to facilitate the transition. Legacy LIBOR-based loans will be transitioned to an alternative reference rate on or before June 30, 2023. The adoption of ASU2020-04 is not expected to sig |
Debt Securities
Debt Securities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities [Abstract] | |
Debt Securities | NOTE 3 — Debt SECURITIES The following table summarizes the amortized cost and fair value of securities available-for-sale at December 31, 2022 and 2021 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 December 31, 2022 State and municipal $ 11,894 $ 2 $ 825 $ 11,071 Asset-backed securities 7,197 — 923 6,274 Government mortgage-backed securities 12,366 — 1,111 11,255 Total debt securities available-for-sale $ 31,457 $ 2 $ 2,859 $ 28,600 December 31, 2021 State and municipal $ 12,002 $ 625 $ 36 $ 12,591 Asset-backed securities 8,141 118 4 8,255 Government mortgage-backed securities 15,842 208 59 15,991 Total debt securities available-for-sale $ 35,985 $ 951 $ 99 $ 36,837 The scheduled maturities of debt securities were as follows at December 31, 2022. Actual maturities of asset and government mortgage-backed securities may differ from contractual maturities because the 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 $ 569 $ 549 Due after five years through ten years 1,170 1,170 Due after ten years 10,155 9,352 Government mortgage-backed securities 12,366 11,255 Asset-backed securities 7,197 6,274 $ 31,457 $ 28,600 There were no realized gains or losses on sales and calls during the year ended December 31, 2022 or 2021. There were no securities of issuers whose aggregate carrying amount exceeded 10% of equity at December 31, 2022 or 2021. Securities with carrying amounts of $ 9.8 million and $ 14.4 million were pledged to secure available borrowings with the Federal Home Loan Bank at December 31, 2022 and 2021, respectively. As of December 31, 2022, the Company’s security portfolio consisted of 54 securities, 52 of which were in an unrealized loss position. 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 more, and are temporarily impaired, are as follows at December 31, 2022 and 2021: Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses December 31, 2022 Temporarily impaired securities: State and municipal $ 8,174 $ 183 $ 2,297 $ 642 $ 10,471 $ 825 Asset-backed securities 2,322 182 3,951 741 6,274 923 Government mortgage-backed securities 7,428 474 3,827 637 11,255 1,111 Total temporarily impaired debt securities $ 17,924 $ 839 $ 10,075 $ 2,020 $ 28,000 $ 2,859 December 31, 2021 Temporarily impaired securities: State and municipal $ 2,950 $ 36 $ — $ — $ 2,950 $ 36 Asset-backed securities 4,797 4 — — 4,797 4 Government mortgage-backed securities 5,022 54 113 5 5,135 59 Total temporarily impaired debt securities $ 12,769 $ 94 $ 113 $ 5 $ 12,882 $ 99 State and municipal, asset-backed and government mortgage-backed securities : The gross unrealized losses on these 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 December 31, 2022. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2022 | |
Loans [Abstract] | |
Loans | NOTE 4 — LOANS Loans consisted of the following at December 31, 2022 and 2021: (In thousands) 2022 2021 Commercial real estate $ 456,747 $ 432,275 Commercial (1) 701,434 726,241 Residential real estate 8,246 812 Construction and land development 69,739 42,800 Consumer 391 1,519 Mortgage warehouse 213,371 253,764 1,449,928 1,457,411 Allowance for loan losses ( 28,069 ) ( 19,496 ) Deferred loan fees, net ( 5,812 ) ( 4,112 ) Net loans $ 1,416,047 $ 1,433,803 (1) Includes $ 41.2 million and $ 120.5 million in digital asset loans at December 31, 2022 and December 31, 2021, respectively. Included in the digital asset loan balance was $ 26.7 million and $ 49.5 million in loans secured by cryptocurrency mining rigs at December 31, 2022 and December 31, 2021, respectively. The following tables set forth information regarding the allowance for loans and gross impaired loans by portfolio segment as of and for the years ended December 31, 2022 and 2021: Construction Commercial Residential and Land Mortgage (In thousands) Real Estate Commercial Real Estate Development Consumer Warehouse Total December 31, 2022 Allowance for loan losses: Beginning balance $ 4,935 $ 13,495 $ 38 $ 479 $ 168 $ 381 $ 19,496 Charge-offs — ( 48,039 ) — — ( 66 ) — ( 48,105 ) Recoveries — 219 — — 31 — 250 Provision (credit) 252 55,987 5 430 ( 78 ) ( 168 ) 56,428 Ending balance $ 5,187 $ 21,662 $ 43 $ 909 $ 55 $ 213 $ 28,069 Ending balance: Individually evaluated for impairment $ — $ 10,098 $ — $ — $ — $ — $ 10,098 Ending balance: Collectively evaluated for impairment 5,187 11,564 43 909 55 213 17,971 Total allowance for loan losses ending balance $ 5,187 $ 21,662 $ 43 $ 909 $ 55 $ 213 $ 28,069 Loans (1): Ending balance: Individually evaluated for impairment $ 20,111 $ 27,145 $ 154 $ — $ — $ — $ 47,410 Ending balance: Collectively evaluated for impairment 436,636 674,289 8,092 69,739 391 213,371 1,402,518 Total loans ending balance $ 456,747 $ 701,434 $ 8,246 $ 69,739 $ 391 $ 213,371 $ 1,449,928 (1) Balances represent gross loans net of charge-offs and interest payments received and applied to principal. The difference between the amounts presented and 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. Construction Commercial Residential and Land Mortgage (In thousands) Real Estate Commercial Real Estate Development Consumer Warehouse Total December 31, 2021 Allowance for loan losses: Beginning balance $ 6,095 $ 10,543 $ 184 $ 447 $ 586 $ 663 $ 18,518 Charge-offs ( 150 ) ( 2,980 ) — — ( 315 ) — ( 3,445 ) Recoveries 92 368 2 — 74 — 536 Provision (credit) ( 1,102 ) 5,564 ( 148 ) 32 ( 177 ) ( 282 ) 3,887 Ending balance $ 4,935 $ 13,495 $ 38 $ 479 $ 168 $ 381 $ 19,496 Ending balance: Individually evaluated for impairment $ — $ 1,616 $ — $ — $ — $ — $ 1,616 Ending balance: Collectively evaluated for impairment 4,935 11,879 38 479 168 381 17,880 Total allowance for loan losses ending balance $ 4,935 $ 13,495 $ 38 $ 479 $ 168 $ 381 $ 19,496 Loans (1): Ending balance: Individually evaluated for impairment $ 20,188 $ 3,929 $ — $ — $ — $ — $ 24,117 Ending balance: Collectively evaluated for impairment 412,087 722,312 812 42,800 1,519 253,764 1,433,294 Total loans ending balance $ 432,275 $ 726,241 $ 812 $ 42,800 $ 1,519 $ 253,764 $ 1,457,411 (1) Balances represent gross loans net of charge-offs and interest payments received and applied to principal. The difference between the amounts presented and 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. At December 31, 2022 and 2021, loans with an aggregate principal balance of $ 365.7 million and $ 371.5 million, respectively, were pledged to secure possible borrowings from the Federal Reserve Bank of Boston (the “FRB”), and loans with an aggregate principal balance of $ 172.1 million and $ 191.8 million, respectively, were pledged to secure possible borrowings from the FHLB. The following tables set forth information regarding non-accrual loans and loan delinquencies by portfolio segment at December 31, 2022 and 2021: 90 Days 90 Days Total or More 30 - 59 60 - 89 or More Past Total Total Past Due Nonaccrual (In thousands) Days Days Past Due Due Current Loans and Accruing Loans December 31, 2022 Commercial real estate $ 240 $ — $ — $ 240 $ 456,507 $ 456,747 $ — $ 55 Commercial — — 318 318 701,116 701,434 — 27,031 Residential real estate — — 144 144 8,102 8,246 — 297 Construction and land development — — — — 69,739 69,739 — — Consumer — 9 — 9 382 391 — — Mortgage warehouse — — — — 213,371 213,371 — — Total $ 240 $ 9 $ 462 $ 711 $ 1,449,217 $ 1,449,928 $ — $ 27,383 December 31, 2021 Commercial real estate $ — $ — $ — $ — $ 432,275 $ 432,275 $ — $ — Commercial 13 111 1,860 1,984 724,257 726,241 — 2,080 Residential real estate — — 555 555 257 812 — 812 Construction and land development — — — — 42,800 42,800 — — Consumer 15 11 — 26 1,493 1,519 — — Mortgage warehouse — — — — 253,764 253,764 — — Total $ 28 $ 122 $ 2,415 $ 2,565 $ 1,454,846 $ 1,457,411 $ — $ 2,892 Information about the Company’s impaired loans by portfolio segment was as follows at December 31, 2022 and 2021: Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2022 With no related allowance recorded: Commercial real estate $ 20,111 $ 20,122 $ — $ 20,150 $ 600 Commercial 493 2,348 — 706 8 Residential real estate 154 154 — 156 7 Construction and land development — — — — — Consumer — — — — — Mortgage warehouse — — — — — Total impaired with no related allowance $ 20,758 $ 22,624 $ — $ 21,012 $ 615 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial 26,652 26,652 10,098 26,652 — Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Mortgage warehouse — — — — — Total impaired with an allowance recorded $ 26,652 $ 26,652 $ 10,098 $ 26,652 $ — Total Commercial real estate $ 20,111 $ 20,122 $ — $ 20,150 $ 600 Commercial 27,145 29,000 10,098 27,358 8 Residential real estate 154 154 — 156 7 Construction and land development — — — — — Consumer — — — — — Mortgage warehouse — — — — — Total impaired loans $ 47,410 $ 49,276 $ 10,098 $ 47,664 $ 615 Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2021 With no related allowance recorded: Commercial real estate $ 20,188 $ 20,339 $ — $ 20,282 $ 652 Commercial 2,015 2,205 — 2,068 183 Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Mortgage Warehouse — — — — — Total impaired with no related allowance $ 22,203 $ 22,544 $ — $ 22,350 $ 835 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial 1,914 3,086 1,616 2,576 4 Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Mortgage Warehouse — — — — — Total impaired with an allowance recorded $ 1,914 $ 3,086 $ 1,616 $ 2,576 $ 4 Total Commercial real estate $ 20,188 $ 20,339 $ — $ 20,282 $ 652 Commercial 3,929 5,291 1,616 4,644 187 Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Mortgage Warehouse — — — — — Total impaired loans $ 24,117 $ 25,630 $ 1,616 $ 24,926 $ 839 The following summarizes TDRs entered into during the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 (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 — $ — $ — 3 $ 1,868 $ 1,868 — $ — $ — 3 $ 1,868 $ 1,868 There were no new TDRs entered into during the year ended December 31, 2022. In 2021, the Bank approved three TDRs, all related to one commercial relationship totaling $ 1.9 million. A TDR 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, 2021, $ 1.6 million relating to this commercial relationship was charged-off with an additional $ 351,000 charge-off in the first quarter of 2022. At December 31, 2022, the balance remaining was equal to the net value of the collateral and the relationship remained on non-accrual status. The total recorded investment in TDRs was $ 20.4 million and $ 22.7 million at December 31, 2022 and 2021, respectively. At December 31, 2022, there were no commitments to lend additional funds to borrowers whose loans were modified in troubled debt restructurings. Credit Quality Information The Company utilizes a seven grade internal loan rating system for commercial real estate, construction and land development, commercial loans and mortgage warehouse 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 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. The following tables present the Company’s loans by portfolio segment as well as risk ratings at December 31, 2022 and 2021: Construction Commercial Residential and Land Mortgage (In thousands) Real Estate Commercial Real Estate Development Consumer Warehouse Total December 31, 2022 Grade: Pass $ 402,519 $ 620,405 $ — $ 69,739 $ — $ 213,371 $ 1,306,034 Special mention 27,034 41,253 — — — — 68,287 Substandard 27,194 39,513 297 — — — 67,004 Doubtful — 263 — — — — 263 Not formally rated — — 7,949 — 391 — 8,340 Total $ 456,747 $ 701,434 $ 8,246 $ 69,739 $ 391 $ 213,371 $ 1,449,928 December 31, 2021 Grade: Pass $ 383,460 $ 676,081 $ — $ 41,762 $ — $ 253,764 $ 1,355,067 Special mention 29,004 41,921 — — — — 70,925 Substandard 19,811 7,677 812 1,038 — — 29,338 Doubtful — 562 — — — — 562 Not formally rated — — — — 1,519 — 1,519 Total $ 432,275 $ 726,241 $ 812 $ 42,800 $ 1,519 $ 253,764 $ 1,457,411 Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $ 20.6 million and $ 23.7 million at December 31, 2022 and 2021, respectively. Certain directors and executive officers of the Company and companies in which they have significant ownership interests were customers of the Bank during 2022. The following is a summary of the loans to such persons and their companies at December 31, 2022 and 2021: (In thousands) Beginning balance, January 1, 2021 $ 15,378 Advances 5,912 Principal payments ( 1,267 ) Loans transferred/sold ( 1,437 ) Ending balance, December 31, 2021 $ 18,586 Beginning balance, January 1, 2022 $ 18,586 Advances 12,105 Principal payments ( 12,434 ) Loans transferred/sold ( 25 ) Ending balance, December 31, 2022 $ 18,232 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | NOTE 5 — PREMISES AND EQUIPMENT The following is a summary of premises and equipment at December 31, 2022 and 2021: (In thousands) 2022 2021 Land $ 2,424 $ 2,424 Buildings and leasehold improvements 13,851 13,838 Furniture and equipment 5,241 5,705 Leasehold improvements 3,526 3,526 25,042 25,493 Accumulated depreciation and amortization ( 11,462 ) ( 11,235 ) Premises and equipment, net $ 13,580 $ 14,258 Depreciation and amortization expense was $ 940,000 and $ 870,000 for the years ended December 31, 2022 and 2021, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | NOTE 6 — DEPOSITS The following is a summary of deposit balances by type at December 31, 2022 and 2021: (In thousands) 2022 2021 Noninterest-bearing: Demand $ 520,226 $ 626,587 Interest-bearing: NOW 145,533 197,884 Regular savings 141,802 155,267 Money market deposits 318,417 419,625 Certificates of deposit: Certificate accounts of $250,000 or more 11,449 5,078 Certificate accounts less than $250,000 142,155 55,454 Total interest-bearing 759,356 833,308 Total deposits $ 1,279,582 $ 1,459,895 At December 31, 2022 and 2021, the aggregate amount of brokered certificates of deposit was $ 120.1 million and $ 20.2 million, respectively. Brokered certificates of deposit are not included in the totals for certificates of deposit in denominations over $250,000 listed above. At December 31, 2022, the scheduled maturities for certificate accounts for each of the following five years are as follows: (In thousands) 2023 $ 146,624 2024 5,149 2025 1,461 2026 208 2027 162 Total $ 153,604 Deposits from related parties held by the Company at December 31, 2022 and 2021 amounted to $ 11.9 million and $ 14.6 million, respectively. |
Other Repossessed Assets
Other Repossessed Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Repossessed Assets [Abstract] | |
Other Repossessed Assets | NOTE 7 — OTHER REPOSSESSED ASSETS The Company’s commercial loan segment includes loans to digital asset customers which are secured by cryptocurrency mining rigs. During the year, the Company repossessed cryptocurrency mining rigs in exchange for the forgiveness of a loan relationship. The repossessed cryptocurrency mining rigs were reported as other repossessed assets at their fair value less costs to sell. These other repossessed assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. The estimates and assumptions that went into the valuation of the repossessed cryptocurrency mining rigs held as repossessed assets, were based on market data and sales reported by the company. Activity related to other repossessed assets, which consists of cryptocurrency mining rigs, was as follows: 2022 2021 (In thousands) Amount Amount Balance at January 1, $ — $ — Loans transferred to other repossessed assets 10,451 — Direct write-downs ( 26 ) — Sales of other repossessed assets ( 3,777 ) — 6,648 — Valuation allowance/provisions charged to expense ( 597 ) — Net balance of other repossessed assets at December 31, $ 6,051 $ — Activity in the valuation allowance was as follows: Year Ended December 31, (In thousands) 2022 2021 Beginning balance $ — $ — Provisions charged to expense 597 — Ending balance $ 597 $ — Expenses related to other repossessed assets include: Year Ended December 31, (In thousands) 2022 2021 Net loss (gain) on sales $ 26 $ — Provisions charged to expense 597 — Operating expenses, net of rental income 344 — $ 967 $ — |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [Abstract] | |
Borrowings | NOTE 8 — BORROWINGS At December 31, 2022, advances consist of funds borrowed from the FHLB and the FRB borrower-in-custody (“BIC”) program. At December 31, 2021, advances consist of funds borrowed from the FHLB. Maturities of advances from the FHLB and FRB for years ending after December 31, 2022 and 2021 are summarized as follows: (In thousands) 2022 2021 2023 $ 117,132 $ 8,500 2024 134 — 2025 5,136 5,000 2026 138 — 2027 139 — Thereafter 4,150 — Total $ 126,829 $ 13,500 Borrowings from the FHLB are secured by qualified collateral, consisting primarily of certain commercial real estate loans, qualified mortgage-backed government securities and certain loans with mortgages secured by one- to four-family properties. At December 31, 2022, borrowings from the FHLB consisted of short-term borrowings, with original maturities of less than one year, totaling $ 89.0 million and long-term borrowings, with original maturities more than one year, totaling $ 18.3 million. The interest rate on FHLB short-term borrowings was 4.38 % at December 31, 2022. The interest rates on FHLB long-term advances ranged from 1.21 % to 3.01 %, with a weighted average interest rate of 1.91 % at December 31, 2022. At December 31, 2022, the Company had the ability to borrow $ 118.2 million from the FHLB. Borrowings from the FRB BIC program are secured by a Uniform Commercial Code financing statement on qualified collateral, consisting of certain commercial loans. At December 31, 2022, FRB borrowings consisted of overnight borrowings totaling $ 19.5 million and had an interest rate of 4.50 %. At December 31, 2022, the Company had the ability to borrow $ 153.3 million from the FRB. There were no outstanding FRB borrowings at December 31, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 9 — INCOME TAXES The components of income tax expense are as follows for the years ended December 31, 2022 and 2021: (In thousands) 2022 2021 Current tax (benefit) expense: Federal $ 267 $ 4,715 State ( 81 ) 1,817 Net operating loss carryforward — — 186 6,532 Deferred tax benefit: Federal ( 4,785 ) ( 401 ) State ( 1,191 ) ( 177 ) ( 5,976 ) ( 578 ) Income tax expense $ ( 5,790 ) $ 5,954 The following is a summary of the differences between the statutory federal income tax rate and the effective tax rates for the years ended December 31, 2022 and 2021: 2022 2021 Federal income tax at statutory rate ( 21.0 ) % 21.0 % Increase (decrease) in tax resulting from: State tax, net of federal tax benefit ( 3.7 ) 5.9 Tax exempt income and dividends received deduction ( 0.3 ) ( 0.3 ) Other 3.8 0.3 Effective tax rate ( 21.2 ) % 26.9 % The following is a summary of the Company’s gross deferred tax assets and gross deferred tax liabilities at December 31, 2022 and 2021: (In thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 7,646 $ 5,403 Net operating loss carryforward 3,785 — Employee benefit plans and share-based compensation plans 2,238 3,081 Deferred loan fees, net 1,583 1,140 Write down of other assets and receivables 109 111 Depreciation 82 — Reserve for unfunded commitments 60 56 Net unrealized gain on securities 657 — Other 701 467 Gross deferred tax assets 16,861 10,258 Deferred tax liabilities: Depreciation — ( 37 ) Prepaid expenses ( 68 ) ( 60 ) Net unrealized holding gain on securities — ( 203 ) Gross deferred tax liabilities ( 68 ) ( 300 ) Net deferred tax asset $ 16,793 $ 9,958 The Company reduces the deferred tax asset by a valuation allowance if, based on the weight of the available evidence, it is not “more likely than not” that some portion or all of the deferred tax assets will be realized. The Company assesses the realizability of its deferred tax assets by assessing the likelihood of the Company generating federal and state income tax, as applicable, in future periods in amounts sufficient to offset the deferred tax charges in the periods they are expected to reverse. Based on this assessment, management concluded that a valuation allowance was not required as of December 31, 2022 or 2021. At December 31, 2022, the Company had federal net operating loss carryforwards of approximately $ 15.3 million, which do not expire. The Company also had state net operating loss carryforwards of approximately $ 9.1 million, of which approximately $ 1.9 million do not expire, and the remaining $ 7.2 million expire at various dates from 2027 to 2042. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2022 and 2021, there was no material uncertain tax positions related to federal and state income tax matters. The Company is currently open to audit by the Internal Revenue Service and state taxing authorities under applicable statutes of limitations for the years ended December 31, 2019 through December 31, 2021. |
Employee Benefits & Stock-Based
Employee Benefits & Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation [Abstract] | |
Employee Benefits & Stock-Based Compensation Plans | NOTE 10 — EMPLOYEE BENEFITS & Stock-BASED COMPENSATION PLANS 401(k) Plan The Company sponsors a 401(k) plan. All employees are eligible to join the 401(k) plan. A Safe Harbor Plan was adopted by the Company effective January 1, 2007. Under the Safe Harbor Plan, the Company matches 100 % of employee contributions up to 6 % of compensation. In addition, the Company may make a discretionary contribution to the 401(k) plan determined on an annual basis. Employees may contribute a percentage of their annual compensation, on a pre-tax or after-tax basis, as defined under the 401(k) Plan, up to 100 % of eligible compensation subject to the maximum amount allowable under the provisions of the Internal Revenue Code (“IRC”). Prior to March 1, 2021, participants could contribute up to 75 % of eligible compensation subject to the maximum amount allowable under the provisions of the IRC. The expense recognized under the 401(k) plan was $ 1.1 million and $ 955,000 for the years ended December 31, 2022 and 2021, respectively, and is included in salaries and employee benefits expense. Supplemental Executive Retirement Plans The Company has Supplemental Executive Retirement Agreements with certain executive officers. These agreements are designed to supplement the benefits available through the Company’s retirement plan. The liability for the retirement benefits amounted to $ 8.5 million and $ 10.9 million at December 31, 2022 and 2021, respectively, and is included in other liabilities. The expense recognized for these benefits was $ 1.8 million for the years ended December 31, 2022 and 2021, and is included in salaries and employee benefits expense. 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 eligible Bank employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax law limits. The ESOP acquired 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 annually over 15 years at a rate per annum equal to 5.00 %. 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 89,758 . Shares held by the ESOP include the following: December 31, 2022 December 31, 2021 Allocated 461,772 372,014 Committed to be allocated 89,758 89,758 Unallocated 987,338 1,077,096 Total 1,538,868 1,538,868 The fair value of unallocated shares was approximately $ 7.2 million at December 31, 2022. Total compensation expense recognized for the years ended December 31, 2022 and 2021 was $ 1.3 million and $ 1.4 million, respectively. Stock-Based Compensation Plan 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 with the 2020 Equity Plan, the “Equity Plans”). Under the Equity 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 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. The Company has elected to recognize forfeitures of awards as they occur. Expense related to options and restricted stock granted to directors is recognized as directors’ fees 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 of 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 was determined using the following weighted-average assumptions as of grant date. 2022 2021 Expected volatility 33.47 % 34.41 % Expected life (years) 7.5 7.5 Expected dividend yield 1.01 % 1.07 % Risk free interest rate 2.63 % 1.19 % Fair value per option $ 5.82 $ 5.06 A summary of the status of the Company’s stock option grants for the year ended December 31, 2022 is presented in the table below: Stock Option Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2022 1,558,963 $ 10.72 Granted 108,360 16.03 Forfeited ( 147,570 ) 12.10 Exercised ( 51,877 ) 9.92 Outstanding at December 31, 2022 1,467,876 $ 11.00 5.21 $ — Outstanding and expected to vest at December 31, 2022 1,467,876 $ 11.00 5.21 $ — Vested and Exercisable at December 31, 2022 974,979 $ 9.96 3.65 $ — Unrecognized compensation cost $ 1,968,000 Weighted average remaining recognition period (years) 3.36 Total expense for the stock options was $ 864,000 and $ 1.1 million for the years ended December 31, 2022 and 2021, respectively. The intrinsic value of options exercised was $ 431,000 and $ 1.3 million for the years ended December 31, 2022 and 2021, respectively. The tax benefit from option exercises was $ 103,000 and $ 288,000 for the years ended December 31, 2022 and 2021, respectively. Restricted Stock Shares issued upon the granting of restricted stock may come from 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 Plans. The fair market value of shares awarded, based on the market prices at the date of grant, is recognized as compensation expense over the applicable vesting period. The following table presents the activity in unvested restricted stock awards under the Equity Plan for the year ended December 31, 2022: Weighted Number of Average Shares Grant Price Unvested restricted stock awards at January 1, 2022 277,925 $ 12.15 Granted 49,355 15.91 Forfeited ( 59,028 ) 12.10 Vested ( 75,504 ) 12.06 Unvested restricted stock awards at December 31, 2022 192,748 $ 13.16 Unrecognized compensation cost $ 2,283,000 Weighted average remaining recognition period (years) 3.41 Total expense for the restricted stock awards was $ 990,000 and $ 1.4 million for the years ended December 31, 2022 and 2021, respectively. The tax benefit from restricted awards was $ 277,000 and $ 390,000 for the years ended December 31, 2022 and 2021, respectively. The total fair value of shares vested during the years ended December 31, 2022 and 2021 was $ 662,000 and $ 2.5 million, respectively. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
(Loss) Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | NOTE 11 — (LOSS) EARNINGS PER SHARE Basic (loss) earnings per share represents (loss) income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted (loss) earnings per share is computed in a manner similar to that of basic (loss) 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 are not deemed outstanding for (loss) earnings per share calculations. (Dollars in thousands) 2022 2021 Net (loss) income attributable to common shareholders $ ( 21,468 ) $ 16,139 Average number of common shares outstanding 17,765,372 18,242,576 Less: average unallocated ESOP shares ( 1,028,283 ) ( 1,118,037 ) average unvested restricted stock ( 254,466 ) ( 351,911 ) Average number of common shares outstanding to calculate basic earnings per common share 16,482,623 16,772,628 Effect of dilutive unvested restricted stock and stock option awards — 529,379 Average number of common shares outstanding to calculate diluted earnings per common share 16,482,623 17,302,007 (Loss) earnings per common share: Basic $ ( 1.30 ) $ 0.96 Diluted ( 1.30 ) 0.93 Diluted earnings per share for the year ended December 31, 2022 was equal to the basic earnings per share due to the Company’s net loss position. Stock options for 236,722 shares of common stock were not considered in computing diluted earnings per common share for 2021 because they were antidilutive, meaning the exercise price for such options was higher than the average price for the Company for such period. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | NOTE 12 — REGULATORY MATTERS The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the 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 December 31, 2022 and 2021, 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 assets above the amount necessary to meet its minimum risk-based capital requirements. At December 31, 2022, the Bank exceeded the regulatory requirement for the capital conservation buffer. Federal banking agencies have established 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. As of December 31, 2022, the Bank has not opted into the CBLR framework. The Bank’s actual capital amounts and ratios at December 31, 2022 and 2021 are summarized as follows: To Be Well Capitalized Under Actual For Capital Prompt Corrective Capital Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Total Capital (to Risk Weighted Assets) $ 204,354 12.62 % $ 129,492 > 8.0 % $ 161,865 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 184,025 11.37 97,119 > 6.0 129,492 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 184,025 11.37 72,839 > 4.5 105,212 > 6.5 Tier 1 Capital (to Average Assets) 184,025 11.17 65,916 > 4.0 82,395 > 5.0 December 31, 2021 Total Capital (to Risk Weighted Assets) $ 221,865 14.18 % $ 125,177 > 8.0 % $ 156,472 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 202,369 12.93 93,883 > 6.0 125,177 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 202,369 12.93 70,412 > 4.5 101,706 > 6.5 Tier 1 Capital (to Average Assets) 202,369 12.07 67,072 > 4.0 83,840 > 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 Provident Bancorp, the top tier mutual holding company (“MHC”) of the Company 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 amount by which net income of the Bank for the year plus the retained net income of the previous two years exceeds any net loss reported in those respective periods. For the year ended December 31, 2022, the Bank reported a net loss of $ 21.5 million, which, netted against net income of $ 16.1 million and $ 12.1 million for the years ended December 31, 2021 and 2020, respectively, resulting in $ 6.7 million that was available to pay dividends. During the year ended December 31, 2022, $ 2.0 million was used to pay dividends leaving $ 4.7 million of retained earnings available to pay dividends as of December 31, 2022 without prior regulatory approval. The Company may, at times, repurchase its own shares in the open market. Such transactions are subject to the notice provisions for stock repurchases of the Board of Governors of the Federal Reserve System. 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 FRB, and in compliance with applicable state and federal regulations. As of December 31 2022, the Company had repurchased 1,145,479 shares of its outstanding common stock under this program, of which 180,434 were repurchased during the year. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | NOTE 13 — LEASES The Company has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Company’s balance sheet. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company’s leases do not provide an implicit rate, therefore the Company used its incremental collateralized borrowing rates commensurate with the underlying lease terms to determine present value of operating lease liabilities. The Company’s lease terms may include lease extension and termination options when it is reasonably certain that the Company will exercise the option. The Company recognized ROU assets totaling $ 3.9 million and $ 4.1 million and operating lease liabilities totaling $ 4.3 million and $ 4.4 million at December 31, 2022 and December 31, 2021, 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 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 year ended December 31, 2022 and 2021, rent expense for the operating leases totaled $ 315,000 . The following table presents information regarding the Company’s operating leases: December 31, December 31, 2022 2021 Weighted-average discount rate 3.59 % 3.57 % Range of lease expiration dates 1 - 13 years 1 - 14 years Range of lease renewal options 5 - 20 years 5 - 20 years Weighted-average remaining lease term 26.4 years 27.0 years The following table presents the undiscounted annual lease payments under the terms of the Company's operating leases at December 31, 2022, including a reconciliation to the present value of operating lease liabilities recognized in the unaudited Consolidated Balance Sheets: (In thousands) 2023 $ 264 2024 270 2025 280 2026 291 2027 293 Years thereafter 5,740 Total lease payments 7,138 Less imputed interest ( 2,856 ) Total lease liabilities $ 4,282 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | NOTE 14 — FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, standby letters of credit and unadvanced funds on loans. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company's exposure to credit loss in the event of non-performance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the borrower. Collateral held varies, but may include secured interests in real property, accounts receivable, inventory, property, plant and equipment and income producing properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s outstanding letters of credit generally have a term of less than one year. If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit. Notional amounts of financial instruments with off-balance sheet credit risk are as follows at December 31, 2022 and 2021: (In thousands) 2022 2021 Commitments to originate loans $ 6,087 $ 16,376 Letters of credit 1,686 1,314 Unadvanced portions of loans 347,674 307,453 $ 355,447 $ 325,143 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 15 — FAIR VALUE MEASUREMENTS The Company reports certain assets at fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value in accordance with generally accepted accounting principles. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Basis of Fair Value Measurements Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). An asset’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair Values of Assets Measured on a Recurring Basis The Company’s investments in state and municipal, asset-backed and government mortgage-backed debt securities available-for-sale are generally classified within Level 2 of the fair value hierarchy. For these investments, the Company obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. The following summarizes assets measured at fair value on a recurring basis at December 31, 2022 and 2021: 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 December 31, 2022 State and municipal $ 11,071 $ — $ 11,071 $ — Asset-backed securities 6,274 — 6,274 — Government mortgage-backed securities 11,255 — 11,255 — Totals $ 28,600 $ — $ 28,600 $ — December 31, 2021 State and municipal $ 12,591 $ — $ 12,591 $ — Asset-backed securities 8,255 — 8,255 — Government mortgage-backed securities 15,991 — 15,991 — Totals $ 36,837 $ — $ 36,837 $ — Fair Values of Assets Measured on a Nonrecurring 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 GAAP. 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 December 31, 2022 and 2021: 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 December 31, 2022 Impaired loans Commercial $ 16,817 $ — $ — $ 16,817 Other repossessed assets 6,051 — — 6,051 Totals $ 22,868 $ — $ — $ 22,868 December 31, 2021 Impaired loans Commercial $ 361 $ — $ — $ 361 Totals $ 361 $ — $ — $ 361 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 December 31, 2022 and 2021: (In thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2022 Impaired loans Commercial $ 16,817 Business valuation or collateral evaluation Comparable company or collateral evaluations 0 % - 10 % Other repossessed assets 6,051 Asset valuation Comparable assets evaluations 0 % - 3 % December 31, 2021 Impaired loans Commercial $ 361 Business valuation Comparable company evaluations 0 % - 24 % At December 31, 2022, the carrying amount of impaired commercial loans measured at fair value on a nonrecurring basis was $ 28.7 million, net of specific reserves of $ 10.1 million and charge-offs of $ 1.8 million. At December 31, 2021, the carrying amount of impaired commercial loans measured at fair value on a nonrecurring basis was $ 3.2 million, net of specific reserves of $ 1.6 million and charge-offs of $ 1.2 million. During 2022, the Company repossessed cryptocurrency mining rigs in exchange for the forgiveness of a loan relationship. The repossessed cryptocurrency mining rigs were reported as other repossessed assets and are accounted for at the lower of cost or fair value less estimated costs to sell. At December 31, 2022, other repossessed assets were $ 6.1 million, reflecting a provision charged to expense of $ 597,000 . 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 December 31, 2022 and 2021: Carrying Fair Value (In thousands) Amount Level 1 Level 2 Level 3 Total December 31, 2022 Financial assets: Cash and cash equivalents $ 80,629 $ 80,629 $ — $ — $ 80,629 Debt securities available-for-sale 28,600 — 28,600 — 28,600 Federal Home Loan Bank of Boston stock 4,266 N/A N/A N/A N/A Loans, net 1,416,047 — — 1,341,633 1,341,633 Accrued interest receivable 6,597 — 6,597 — 6,597 Other repossessed assets 6,051 — — 6,051 6,051 Financial liabilities: Deposits 1,279,582 — 1,279,665 — 1,279,665 Borrowings 126,829 — 124,590 — 124,590 December 31, 2021 Financial assets: Cash and cash equivalents $ 153,115 $ 153,115 $ — $ — $ 153,115 Debt securities available-for-sale 36,837 — 36,837 — 36,837 Federal Home Loan Bank of Boston stock 785 N/A N/A N/A N/A Loans and loans held for sale, net 1,456,649 — — 1,468,013 1,468,013 Accrued interest receivable 5,703 — 5,703 — 5,703 Financial liabilities: Deposits 1,459,895 — 1,459,841 — 1,459,841 Borrowings 13,500 — 13,698 — 13,698 The carrying amounts of financial instruments shown above are included in the consolidated balance sheets under the indicated captions. Accounting policies related to financial instruments are described in Note 2. |
Condensed Financial Statements
Condensed Financial Statements of Parent Only | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Statements of Parent Only [Abstract] | |
Condensed Financial Statements of Parent Only | NOTE 16 — CONDENSED FINANCIAL STATEMENTS OF PARENT ONLY Financial information pertaining only to Provident Bancorp, Inc. is as follows: Provident Bancorp, Inc. - Parent Only Balance Sheet (In thousands) 2022 2021 Assets Cash and due from banks $ 17,415 $ 21,747 Investment in common stock of BankProv 181,824 203,018 Other assets 8,588 9,215 Total assets $ 207,827 $ 233,980 Liabilities and Shareholders' Equity Other liabilities $ 285 $ 198 Shareholders' equity 207,542 233,782 Total liabilities and shareholders' equity $ 207,827 $ 233,980 Years Ended Provident Bancorp, Inc. - Parent Only Income Statement December 31, (In thousands) 2022 2021 Total income $ 160 $ 137 Operating expenses 128 117 Income before income taxes and equity in undistributed net (loss) income of BankProv 32 20 Applicable income tax provision 8 6 Income before equity in income of subsidiaries 24 14 (Loss) equity in undistributed net income of BankProv ( 21,492 ) 16,125 Net (loss) income $ ( 21,468 ) $ 16,139 Twelve Months Ended Provident Bancorp, Inc. - Parent Only Statement of Cash Flows December 31, (In thousands) 2022 2021 Cash flows from operating activities: Net (loss) income $ ( 21,468 ) $ 16,139 Adjustments to reconcile net income to net cash provided by operating activities: Loss (equity) in undistributed earnings of subsidiaries 21,492 ( 16,125 ) Deferred tax benefit 2 — Decrease in other assets 625 606 Increase in other liabilities 87 40 Net cash provided by operating activities 738 660 Cash flows from financing activities: Cash dividends paid on common stock ( 1,989 ) ( 2,560 ) Proceeds from exercise of stock options, net ( 108 ) ( 241 ) Shares surrendered related to tax withholdings on restricted stock awards ( 113 ) ( 614 ) Purchase of common stock ( 2,860 ) ( 18,348 ) Net cash used in financing activities ( 5,070 ) ( 21,763 ) Net decrease in cash and cash equivalents ( 4,332 ) ( 21,103 ) Cash and cash equivalents at beginning of year 21,747 42,850 Cash and cash equivalents at end of year $ 17,415 $ 21,747 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 17 – SUBSEQUENT EVENTS In February 2023, the Company’s management approved the negotiation of a restructure of a $ 21.8 million loan relationship that is secured by cryptocurrency mining rigs and the USD value of Bitcoin maintained by an independent custodian. The terms of the restructure are being finalized with the borrower. The Company evaluated subsequent events and given that the conditions were present at the December 31, 2022 consolidated balance sheet date, the Company placed the loan on non-accrual status and classified it as impaired as of December 31, 2022. As a result of the subsequent event, the Company also evaluated the need for any incremental reserves on the loan relationship and concluded that the reserves allocated were sufficient as of December 31, 2022. |
Risk And Uncertainties
Risk And Uncertainties | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Risks And Uncertainties | NOTE 18 – RISKS ND UNCERTAINTIES Digital Asset Lending and Other Repossessed Assets The Company’s commercial loan segment includes loans to digital asset customers which can be secured by a security interest in the digital assets, cash, a security in the purchased mining equipment or a combination of these. As of December 31, 2022, we had $ 41.2 million in outstanding loans to digital asset customers, of which $ 26.7 million was impaired with specific reserves. During the year, the Company repossessed cryptocurrency mining rigs in exchange for the forgiveness of a loan relationship. The repossessed cryptocurrency mining rigs were reported as other repossessed s at their fair value less costs to sell, which totaled $6.1 million at December 31, 2022. The estimates and assumptions that went into the valuation of the collateral on impaired loans secured by cryptocurrency mining rigs and the cryptocurrency mining rigs held as repossessed assets, were based on market data and sales recorded by the Company during the year-ended December 31, 2022. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The Bitcoin markets as well as the markets for cryptocurrency mining rigs are highly volatile and speculative and subject to a variety of risks, including market and liquidity risks. Changes in market driven factors, among others, could have a material impact on the values reported at December 31, 2022. In the event of further deterioration in the value of the collateral of impaired loans to digital asset customers the Company could recognize additional increases in the provision for loan losses and the allowance for loan losses. In addition, the Company would also likely see increases in loan workout expenses related to the portfolio of loans to digital asset customers as well as expenses related to other repossessed assets. |
Accounting Policies (Policy)
Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and predominant practices within the banking industry. The consolidated financial statements were prepared using the accrual basis of accounting. |
Use of Estimates | Use of Estimates To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Provident Bancorp, Inc., its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Provident Security Corporation, 5 Market Street Security Corporation, and Prov 1, LLC. Provident Security Corporation and 5 Market Street Security Corporation were established to buy, sell, and hold investments for their own account. Prov 1, LLC was established to engage in any lawful act or activity for which limited liability companies may be organized. All material intercompany balances and transactions have been eliminated in consolidation. |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk The primary lending area for the Bank includes Northeastern Massachusetts and Southern New Hampshire, with a focus on Essex County, Massachusetts, and Hillsborough and Rockingham Counties, New Hampshire, which are part of, and bedroom communities to, the technology corridor between Boston, Massachusetts and Concord, New Hampshire. The Bank also offers select products on a national basis, which includes the enterprise value loan product and mortgage warehouse product. The primary deposit-gathering area is currently concentrated in Essex County, Massachusetts, and Rockingham County and Hillsborough County, New Hampshire. The Bank does offer deposit services to customers nationally in the enterprise value and mortgage warehouse loan products, as well as banking as a service customers. The Company believes that it does not have any significant loan concentrations or investment securities in any one industry or with any customer. |
Reclassification | Reclassification Certain amounts in the prior year have been reclassified to be consistent with the current year's consolidated financial statement presentation. The reclassifications had no effect on the net income reported in the consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and deposits with other financial institutions with maturities fewer than 90 days. Net cash flows are reported for customer loan and deposit transactions and interest-bearing deposits in other financial institutions. |
Debt Securities | Debt Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Debt securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized using level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. The Company evaluates debt securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For debt securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. The Company also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the statement of operations and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank of Boston (the “FHLB”), the Company is required to invest in $ 100 par value stock of the FHLB. The FHLB capital structure mandates that members own stock as determined by their Total Stock Investment Requirement, which is the sum of a member’s Membership Stock Investment Requirement and Activity-Based Stock Investment Requirement. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. As of December 31, 2021, we transferred our salable residential real estate loan portfolio to held for sale: a portion of these loans were sold with servicing released in June 2022 and the remaining portion was reclassified to held for investment. |
Loans | Loans Loan receivables that management has the intent and ability to hold until maturity or payoff are reported at their outstanding principal balances adjusted for amounts due to borrowers on unadvanced loans, any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount is recognized as an adjustment of the related loan yield using the interest method. The Company is amortizing these amounts over the contractual life of the related loans. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash. Residential real estate loans are generally placed on non-accrual status when reaching 90 days past due. Past due status is based on the contractual terms of the loan. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on non-accrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged-off upon reaching 120 or 180 days past due depending on the type of loan. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Interest income received on non-accrual loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. 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 non-accrual status for approximately six months before management considers such loans for return to accruing status. Accruing restructured loans are placed onto non-accrual 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. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the size and composition of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and are classified as impaired. The Company classifies a loan as impaired when, based on current information and events, it is probable that it will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, we do not separately identify individual consumer and residential loans for impairment disclosures. The specific component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The estimates and assumptions that went into the valuation of the underlying collateral for the loans secured by cryptocurrency mining rigs were based on market data and sales recorded by the Company. TDRs are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by all loan segments. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. The historical loss factors are adjusted for the following qualitative factors: levels/trends in delinquencies and non-accruals, economic conditions, portfolio trends, portfolio concentrations, loan grading and management’s discretion. The determination of qualitative factors involves significant judgment. The allowance for loan loss is determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate : Loans in this segment are primarily income-producing properties throughout Massachusetts and New Hampshire. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management periodically obtains rent rolls and continually monitors the cash flows of these loans. Commercial : Loans in this segment are made to businesses and are generally secured by assets of the business. Also included in this segment are loans to digital asset customers which are secured by digital mining asset equipment or by the United States dollar (“USD”) value of the digital currency. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Residential real estate : All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. We no longer originate residential real estate loans, and previously we did not typically originate loans with a loan-to-value ratio greater than 80 % or grant subprime loans. Loans with loan to value ratios greater than 80 % require the purchase of private mortgage insurance. Construction and land development : Loans in this segment primarily include speculative and pre-sold real estate development loans for which payment is derived from sale of the property and a conversion of the construction loans to permanent loans for which payment is then derived from cash flows of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Consumer : Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Mortgage warehouse: Loans in this segment are primarily facility lines to non-bank mortgage origination companies. The underlying collateral of these loans are residential real estate loans. Loans are originated by the mortgage companies for sale into secondary markets, which is typically within 15 days of the loan funding, with the exception of construction loans which generally take longer to pay off due to the nature of the loan. The primary source of repayment is the cash flow upon the sale of the loans. The credit risk associated with this type of lending is the risk that the mortgage companies are unable to sell the loans . An unallocated component can be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of operations and are not subject to income taxes. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Depreciation on building and leasehold improvements is calculated primarily using the straight-line method with useful lives of seven to 40 years . Furniture and fixtures are depreciated using the straight-line method with useful lives of one to 15 years . Computer equipment is also depreciated using the straight-line method with useful lives ranging from two to five years . |
Other Real Estate Owned and Repossessed Assets | Other Real Estate Owned and Repossessed Assets Assets acquired through, or in lieu of, loan foreclosure or repossession are held for sale and are initially recorded at fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Qualified Affordable Housing Project Investments | Qualified Affordable Housing Project Investments The Bank invests in qualified affordable housing projects. At December 31, 2022 and 2021, the balance of the investment for qualified affordable housing projects was $ 7.3 million and $ 1.1 million, respectively. These balances are reflected in the other assets line on the Consolidated Balance Sheets. The Company did no t recognize any amortization expense or tax credits for the years ended December 31, 2022 and 2021 |
Revenue Recognition | 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. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. |
Advertising | Advertising The Company directly expenses costs associated with advertising as they are incurred. |
(Loss) Earnings per Share | (Loss) Earnings per Share Basic (loss) earnings per common share is net (loss) income divided by the weighted average number of common shares outstanding during the period. BankProv Employee Stock Ownership Plan (the “ESOP”) shares are considered outstanding for this calculation unless unallocated. Diluted (loss) earnings per common share is computed in a manner similar to that of basic (loss) 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 are not deemed outstanding for (loss) earnings per share calculations. Losses, earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements, if applicable. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity on the consolidated balance sheets. The difference between the average fair value and the cost of the shares by the ESOP is recorded as an adjustment to additional paid-in-capital. |
Stock-based Compensation Plans | Stock-Based Compensation Plans The Company measures and recognizes compensation cost relating to stock-based payment transactions based on the grant-date fair value of the equity instruments issued. Stock-based compensation is recognized over the period the employee is required to provide services for the award. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. The determination of fair value involves a number of significant estimates, which require a number of assumptions to determine the model inputs. The fair value of restricted stock is recorded based on the grant date value of the equity instrument issued. |
Income Taxes | Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on debt securities available-for-sale which are also recognized as separate components of equity. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Dividend Restriction | Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to shareholders. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Recent Accounting Pronouncements | 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.” Commonly referred to as “CECL” , t he 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. In October 2019, FASB approved a delay in the implementation until January 2023 for smaller reporting companies as defined by the SEC. The amendments in this update were effective for the Company on January 1, 2023. As previously disclosed, the Company formed a cross-functional team to work through its implementation of CECL. The Company has completed its selection of the modeling methods, has run parallel processes and is in final review stages of completing its documentation including third party model validations. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326) – Trouble Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) , which eliminates the accounting guidance on trouble debt restructurings (“TDRs”) for creditors in Accounting Standards Codification (“ASC”) 310-40 and amends the guidance on “vintage disclosures” to require disclosures of current-period gross write-offs by year of origination. The ASC also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022 - 02 was effective for the Company on January 1, 2023 in conjunction with the adoption of ASU No. 2016-13. The Company is finalizing its assessment of the impact of the adoption of this ASU, and does not expect it to have a material impact on the Company’s Consolidated Financial Statements, however, the foregoing estimates are subject to change as management completes the implementation review in the first quarter of 2023. 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’s cross-function al working group continues to implement its plan to transition from LIBOR consistent with industry timelines. The Company has selected the Secured Overnight Financing Rate (“SOFR”) as its primary alternative to LIBOR and may also use alternative reference rates, based on the individual needs of its customers and the type of credit being extended. The cross-functional working group has identified LIBOR-indexed products and is evaluating fallback language to facilitate the transition. Legacy LIBOR-based loans will be transitioned to an alternative reference rate on or before June 30, 2023. The adoption of ASU2020-04 is not expected to significantly impact the Company’s Consolidated Financial Statements In March 2022, the SEC released Staff Accounting Bulletin No. 121 (“SAB 121”) , which provides interpretive guidance regarding accounting for obligations to safeguard crypto-assets an entity holds for its platform users. The interpretive guidance requires an entity to recognize a liability on its balance sheet to reflect the obligation to safeguard the crypto-assets held for its platform users, along with a corresponding asset, both of which are measured at fair value. SAB 121 also requires disclosure of the nature and amount of crypto assets being safeguarded, how the fair value is determined, an entity’s accounting policy for safeguarding liabilities and corresponding assets and may require other information about risks and uncertainties arising from the entity’s safeguarding activities. SAB 121 is effective no later than the first interim or annual period ending after June 15, 2022, with retrospective application as of the beginning of the fiscal year. The Company has completed an evaluation and concluded that it does not have a safeguarding obligation under SAB 121 for the digital asset collateral associated with its loans and therefore the accounting and disclosures do not apply. |
Debt Securities (Tables)
Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt 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 December 31, 2022 State and municipal $ 11,894 $ 2 $ 825 $ 11,071 Asset-backed securities 7,197 — 923 6,274 Government mortgage-backed securities 12,366 — 1,111 11,255 Total debt securities available-for-sale $ 31,457 $ 2 $ 2,859 $ 28,600 December 31, 2021 State and municipal $ 12,002 $ 625 $ 36 $ 12,591 Asset-backed securities 8,141 118 4 8,255 Government mortgage-backed securities 15,842 208 59 15,991 Total debt securities available-for-sale $ 35,985 $ 951 $ 99 $ 36,837 |
Schedule of Maturities of Debt Securities | Available-for-Sale Amortized Fair (In thousands) Cost Value Due after one year through five years $ 569 $ 549 Due after five years through ten years 1,170 1,170 Due after ten years 10,155 9,352 Government mortgage-backed securities 12,366 11,255 Asset-backed securities 7,197 6,274 $ 31,457 $ 28,600 |
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 December 31, 2022 Temporarily impaired securities: State and municipal $ 8,174 $ 183 $ 2,297 $ 642 $ 10,471 $ 825 Asset-backed securities 2,322 182 3,951 741 6,274 923 Government mortgage-backed securities 7,428 474 3,827 637 11,255 1,111 Total temporarily impaired debt securities $ 17,924 $ 839 $ 10,075 $ 2,020 $ 28,000 $ 2,859 December 31, 2021 Temporarily impaired securities: State and municipal $ 2,950 $ 36 $ — $ — $ 2,950 $ 36 Asset-backed securities 4,797 4 — — 4,797 4 Government mortgage-backed securities 5,022 54 113 5 5,135 59 Total temporarily impaired debt securities $ 12,769 $ 94 $ 113 $ 5 $ 12,882 $ 99 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loans [Abstract] | |
Schedule of Loans | (In thousands) 2022 2021 Commercial real estate $ 456,747 $ 432,275 Commercial (1) 701,434 726,241 Residential real estate 8,246 812 Construction and land development 69,739 42,800 Consumer 391 1,519 Mortgage warehouse 213,371 253,764 1,449,928 1,457,411 Allowance for loan losses ( 28,069 ) ( 19,496 ) Deferred loan fees, net ( 5,812 ) ( 4,112 ) Net loans $ 1,416,047 $ 1,433,803 (1) Includes $ 41.2 million and $ 120.5 million in digital asset loans at December 31, 2022 and December 31, 2021, respectively. Included in the digital asset loan balance was $ 26.7 million and $ 49.5 million in loans secured by cryptocurrency mining rigs at December 31, 2022 and December 31, 2021, respectively. |
Schedule of Allowance for Loans and Gross Impaired Loans by Portfolio Segment | Construction Commercial Residential and Land Mortgage (In thousands) Real Estate Commercial Real Estate Development Consumer Warehouse Total December 31, 2022 Allowance for loan losses: Beginning balance $ 4,935 $ 13,495 $ 38 $ 479 $ 168 $ 381 $ 19,496 Charge-offs — ( 48,039 ) — — ( 66 ) — ( 48,105 ) Recoveries — 219 — — 31 — 250 Provision (credit) 252 55,987 5 430 ( 78 ) ( 168 ) 56,428 Ending balance $ 5,187 $ 21,662 $ 43 $ 909 $ 55 $ 213 $ 28,069 Ending balance: Individually evaluated for impairment $ — $ 10,098 $ — $ — $ — $ — $ 10,098 Ending balance: Collectively evaluated for impairment 5,187 11,564 43 909 55 213 17,971 Total allowance for loan losses ending balance $ 5,187 $ 21,662 $ 43 $ 909 $ 55 $ 213 $ 28,069 Loans (1): Ending balance: Individually evaluated for impairment $ 20,111 $ 27,145 $ 154 $ — $ — $ — $ 47,410 Ending balance: Collectively evaluated for impairment 436,636 674,289 8,092 69,739 391 213,371 1,402,518 Total loans ending balance $ 456,747 $ 701,434 $ 8,246 $ 69,739 $ 391 $ 213,371 $ 1,449,928 (1) Balances represent gross loans net of charge-offs and interest payments received and applied to principal. The difference between the amounts presented and 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. Construction Commercial Residential and Land Mortgage (In thousands) Real Estate Commercial Real Estate Development Consumer Warehouse Total December 31, 2021 Allowance for loan losses: Beginning balance $ 6,095 $ 10,543 $ 184 $ 447 $ 586 $ 663 $ 18,518 Charge-offs ( 150 ) ( 2,980 ) — — ( 315 ) — ( 3,445 ) Recoveries 92 368 2 — 74 — 536 Provision (credit) ( 1,102 ) 5,564 ( 148 ) 32 ( 177 ) ( 282 ) 3,887 Ending balance $ 4,935 $ 13,495 $ 38 $ 479 $ 168 $ 381 $ 19,496 Ending balance: Individually evaluated for impairment $ — $ 1,616 $ — $ — $ — $ — $ 1,616 Ending balance: Collectively evaluated for impairment 4,935 11,879 38 479 168 381 17,880 Total allowance for loan losses ending balance $ 4,935 $ 13,495 $ 38 $ 479 $ 168 $ 381 $ 19,496 Loans (1): Ending balance: Individually evaluated for impairment $ 20,188 $ 3,929 $ — $ — $ — $ — $ 24,117 Ending balance: Collectively evaluated for impairment 412,087 722,312 812 42,800 1,519 253,764 1,433,294 Total loans ending balance $ 432,275 $ 726,241 $ 812 $ 42,800 $ 1,519 $ 253,764 $ 1,457,411 (1) Balances represent gross loans net of charge-offs and interest payments received and applied to principal. The difference between the amounts presented and 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 Nonaccrual (In thousands) Days Days Past Due Due Current Loans and Accruing Loans December 31, 2022 Commercial real estate $ 240 $ — $ — $ 240 $ 456,507 $ 456,747 $ — $ 55 Commercial — — 318 318 701,116 701,434 — 27,031 Residential real estate — — 144 144 8,102 8,246 — 297 Construction and land development — — — — 69,739 69,739 — — Consumer — 9 — 9 382 391 — — Mortgage warehouse — — — — 213,371 213,371 — — Total $ 240 $ 9 $ 462 $ 711 $ 1,449,217 $ 1,449,928 $ — $ 27,383 December 31, 2021 Commercial real estate $ — $ — $ — $ — $ 432,275 $ 432,275 $ — $ — Commercial 13 111 1,860 1,984 724,257 726,241 — 2,080 Residential real estate — — 555 555 257 812 — 812 Construction and land development — — — — 42,800 42,800 — — Consumer 15 11 — 26 1,493 1,519 — — Mortgage warehouse — — — — 253,764 253,764 — — Total $ 28 $ 122 $ 2,415 $ 2,565 $ 1,454,846 $ 1,457,411 $ — $ 2,892 |
Schedule of Impaired Loans | Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2022 With no related allowance recorded: Commercial real estate $ 20,111 $ 20,122 $ — $ 20,150 $ 600 Commercial 493 2,348 — 706 8 Residential real estate 154 154 — 156 7 Construction and land development — — — — — Consumer — — — — — Mortgage warehouse — — — — — Total impaired with no related allowance $ 20,758 $ 22,624 $ — $ 21,012 $ 615 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial 26,652 26,652 10,098 26,652 — Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Mortgage warehouse — — — — — Total impaired with an allowance recorded $ 26,652 $ 26,652 $ 10,098 $ 26,652 $ — Total Commercial real estate $ 20,111 $ 20,122 $ — $ 20,150 $ 600 Commercial 27,145 29,000 10,098 27,358 8 Residential real estate 154 154 — 156 7 Construction and land development — — — — — Consumer — — — — — Mortgage warehouse — — — — — Total impaired loans $ 47,410 $ 49,276 $ 10,098 $ 47,664 $ 615 Unpaid Average Interest Recorded Principal Related Recorded Income (In thousands) Investment Balance Allowance Investment Recognized December 31, 2021 With no related allowance recorded: Commercial real estate $ 20,188 $ 20,339 $ — $ 20,282 $ 652 Commercial 2,015 2,205 — 2,068 183 Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Mortgage Warehouse — — — — — Total impaired with no related allowance $ 22,203 $ 22,544 $ — $ 22,350 $ 835 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial 1,914 3,086 1,616 2,576 4 Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Mortgage Warehouse — — — — — Total impaired with an allowance recorded $ 1,914 $ 3,086 $ 1,616 $ 2,576 $ 4 Total Commercial real estate $ 20,188 $ 20,339 $ — $ 20,282 $ 652 Commercial 3,929 5,291 1,616 4,644 187 Residential real estate — — — — — Construction and land development — — — — — Consumer — — — — — Mortgage Warehouse — — — — — Total impaired loans $ 24,117 $ 25,630 $ 1,616 $ 24,926 $ 839 |
Schedule of Troubled Debt Restructurings | Year Ended December 31, 2022 2021 (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 — $ — $ — 3 $ 1,868 $ 1,868 — $ — $ — 3 $ 1,868 $ 1,868 |
Schedule of Loans by Risk Rating and Portfolio Segment | Construction Commercial Residential and Land Mortgage (In thousands) Real Estate Commercial Real Estate Development Consumer Warehouse Total December 31, 2022 Grade: Pass $ 402,519 $ 620,405 $ — $ 69,739 $ — $ 213,371 $ 1,306,034 Special mention 27,034 41,253 — — — — 68,287 Substandard 27,194 39,513 297 — — — 67,004 Doubtful — 263 — — — — 263 Not formally rated — — 7,949 — 391 — 8,340 Total $ 456,747 $ 701,434 $ 8,246 $ 69,739 $ 391 $ 213,371 $ 1,449,928 December 31, 2021 Grade: Pass $ 383,460 $ 676,081 $ — $ 41,762 $ — $ 253,764 $ 1,355,067 Special mention 29,004 41,921 — — — — 70,925 Substandard 19,811 7,677 812 1,038 — — 29,338 Doubtful — 562 — — — — 562 Not formally rated — — — — 1,519 — 1,519 Total $ 432,275 $ 726,241 $ 812 $ 42,800 $ 1,519 $ 253,764 $ 1,457,411 |
Schedule of Loans to Directors and Executive Officers of the Company and Companies in Which They Have Significant Ownership Interest | (In thousands) Beginning balance, January 1, 2021 $ 15,378 Advances 5,912 Principal payments ( 1,267 ) Loans transferred/sold ( 1,437 ) Ending balance, December 31, 2021 $ 18,586 Beginning balance, January 1, 2022 $ 18,586 Advances 12,105 Principal payments ( 12,434 ) Loans transferred/sold ( 25 ) Ending balance, December 31, 2022 $ 18,232 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Premises and Equipment [Abstract] | |
Schedule of Premises and Equipment | (In thousands) 2022 2021 Land $ 2,424 $ 2,424 Buildings and leasehold improvements 13,851 13,838 Furniture and equipment 5,241 5,705 Leasehold improvements 3,526 3,526 25,042 25,493 Accumulated depreciation and amortization ( 11,462 ) ( 11,235 ) Premises and equipment, net $ 13,580 $ 14,258 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Deposit Balances by Type | (In thousands) 2022 2021 Noninterest-bearing: Demand $ 520,226 $ 626,587 Interest-bearing: NOW 145,533 197,884 Regular savings 141,802 155,267 Money market deposits 318,417 419,625 Certificates of deposit: Certificate accounts of $250,000 or more 11,449 5,078 Certificate accounts less than $250,000 142,155 55,454 Total interest-bearing 759,356 833,308 Total deposits $ 1,279,582 $ 1,459,895 |
Schedule of Maturities for Time Deposits | (In thousands) 2023 $ 146,624 2024 5,149 2025 1,461 2026 208 2027 162 Total $ 153,604 |
Other Repossessed Assets (Table
Other Repossessed Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Repossessed Assets [Abstract] | |
Activity Related To Other Repossessed Assets | 2022 2021 (In thousands) Amount Amount Balance at January 1, $ — $ — Loans transferred to other repossessed assets 10,451 — Direct write-downs ( 26 ) — Sales of other repossessed assets ( 3,777 ) — 6,648 — Valuation allowance/provisions charged to expense ( 597 ) — Net balance of other repossessed assets at December 31, $ 6,051 $ — |
Activity In Valuation Allowance | Year Ended December 31, (In thousands) 2022 2021 Beginning balance $ — $ — Provisions charged to expense 597 — Ending balance $ 597 $ — |
Expense Related To Other Repossessed Assets | Year Ended December 31, (In thousands) 2022 2021 Net loss (gain) on sales $ 26 $ — Provisions charged to expense 597 — Operating expenses, net of rental income 344 — $ 967 $ — |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [Abstract] | |
Schedule of Maturities of Advances from FHLB | (In thousands) 2022 2021 2023 $ 117,132 $ 8,500 2024 134 — 2025 5,136 5,000 2026 138 — 2027 139 — Thereafter 4,150 — Total $ 126,829 $ 13,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Schedule of Components for Income Tax Expense | (In thousands) 2022 2021 Current tax (benefit) expense: Federal $ 267 $ 4,715 State ( 81 ) 1,817 Net operating loss carryforward — — 186 6,532 Deferred tax benefit: Federal ( 4,785 ) ( 401 ) State ( 1,191 ) ( 177 ) ( 5,976 ) ( 578 ) Income tax expense $ ( 5,790 ) $ 5,954 |
Summary of Differences Between the Statutory Federal Income Tax Rate and Effective Tax Rates | 2022 2021 Federal income tax at statutory rate ( 21.0 ) % 21.0 % Increase (decrease) in tax resulting from: State tax, net of federal tax benefit ( 3.7 ) 5.9 Tax exempt income and dividends received deduction ( 0.3 ) ( 0.3 ) Other 3.8 0.3 Effective tax rate ( 21.2 ) % 26.9 % |
Summary of Deferred Tax Assets and Deferred Tax Liabilities | (In thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 7,646 $ 5,403 Net operating loss carryforward 3,785 — Employee benefit plans and share-based compensation plans 2,238 3,081 Deferred loan fees, net 1,583 1,140 Write down of other assets and receivables 109 111 Depreciation 82 — Reserve for unfunded commitments 60 56 Net unrealized gain on securities 657 — Other 701 467 Gross deferred tax assets 16,861 10,258 Deferred tax liabilities: Depreciation — ( 37 ) Prepaid expenses ( 68 ) ( 60 ) Net unrealized holding gain on securities — ( 203 ) Gross deferred tax liabilities ( 68 ) ( 300 ) Net deferred tax asset $ 16,793 $ 9,958 |
Employee Benefits & Stock-Bas_2
Employee Benefits & Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation [Abstract] | |
Schedule of Shares Held by the ESOP | December 31, 2022 December 31, 2021 Allocated 461,772 372,014 Committed to be allocated 89,758 89,758 Unallocated 987,338 1,077,096 Total 1,538,868 1,538,868 |
Schedule of Fair Value of Options Granted Assumptions | 2022 2021 Expected volatility 33.47 % 34.41 % Expected life (years) 7.5 7.5 Expected dividend yield 1.01 % 1.07 % Risk free interest rate 2.63 % 1.19 % Fair value per option $ 5.82 $ 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 January 1, 2022 1,558,963 $ 10.72 Granted 108,360 16.03 Forfeited ( 147,570 ) 12.10 Exercised ( 51,877 ) 9.92 Outstanding at December 31, 2022 1,467,876 $ 11.00 5.21 $ — Outstanding and expected to vest at December 31, 2022 1,467,876 $ 11.00 5.21 $ — Vested and Exercisable at December 31, 2022 974,979 $ 9.96 3.65 $ — Unrecognized compensation cost $ 1,968,000 Weighted average remaining recognition period (years) 3.36 |
Schedule of Activity in Restricted Stock Awards Under the Equity Plan | Weighted Number of Average Shares Grant Price Unvested restricted stock awards at January 1, 2022 277,925 $ 12.15 Granted 49,355 15.91 Forfeited ( 59,028 ) 12.10 Vested ( 75,504 ) 12.06 Unvested restricted stock awards at December 31, 2022 192,748 $ 13.16 Unrecognized compensation cost $ 2,283,000 Weighted average remaining recognition period (years) 3.41 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
(Loss) Earnings Per Share [Abstract] | |
Schedule of Earning per Share | (Dollars in thousands) 2022 2021 Net (loss) income attributable to common shareholders $ ( 21,468 ) $ 16,139 Average number of common shares outstanding 17,765,372 18,242,576 Less: average unallocated ESOP shares ( 1,028,283 ) ( 1,118,037 ) average unvested restricted stock ( 254,466 ) ( 351,911 ) Average number of common shares outstanding to calculate basic earnings per common share 16,482,623 16,772,628 Effect of dilutive unvested restricted stock and stock option awards — 529,379 Average number of common shares outstanding to calculate diluted earnings per common share 16,482,623 17,302,007 (Loss) earnings per common share: Basic $ ( 1.30 ) $ 0.96 Diluted ( 1.30 ) 0.93 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Matters [Abstract] | |
Schedule of Bank's Actual Capital Amounts and Ratios | To Be Well Capitalized Under Actual For Capital Prompt Corrective Capital Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Total Capital (to Risk Weighted Assets) $ 204,354 12.62 % $ 129,492 > 8.0 % $ 161,865 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 184,025 11.37 97,119 > 6.0 129,492 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 184,025 11.37 72,839 > 4.5 105,212 > 6.5 Tier 1 Capital (to Average Assets) 184,025 11.17 65,916 > 4.0 82,395 > 5.0 December 31, 2021 Total Capital (to Risk Weighted Assets) $ 221,865 14.18 % $ 125,177 > 8.0 % $ 156,472 > 10.0 % Tier 1 Capital (to Risk Weighted Assets) 202,369 12.93 93,883 > 6.0 125,177 > 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets) 202,369 12.93 70,412 > 4.5 101,706 > 6.5 Tier 1 Capital (to Average Assets) 202,369 12.07 67,072 > 4.0 83,840 > 5.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Information Regarding Operating Leases | December 31, December 31, 2022 2021 Weighted-average discount rate 3.59 % 3.57 % Range of lease expiration dates 1 - 13 years 1 - 14 years Range of lease renewal options 5 - 20 years 5 - 20 years Weighted-average remaining lease term 26.4 years 27.0 years |
Schedule of Maturities of Lease Liabilities | (In thousands) 2023 $ 264 2024 270 2025 280 2026 291 2027 293 Years thereafter 5,740 Total lease payments 7,138 Less imputed interest ( 2,856 ) Total lease liabilities $ 4,282 |
Financial Instruments With Of_2
Financial Instruments With Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Schedule of Financial Instrument with Off-Balance Sheet Credit Risk | (In thousands) 2022 2021 Commitments to originate loans $ 6,087 $ 16,376 Letters of credit 1,686 1,314 Unadvanced portions of loans 347,674 307,453 $ 355,447 $ 325,143 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring 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 December 31, 2022 State and municipal $ 11,071 $ — $ 11,071 $ — Asset-backed securities 6,274 — 6,274 — Government mortgage-backed securities 11,255 — 11,255 — Totals $ 28,600 $ — $ 28,600 $ — December 31, 2021 State and municipal $ 12,591 $ — $ 12,591 $ — Asset-backed securities 8,255 — 8,255 — Government mortgage-backed securities 15,991 — 15,991 — Totals $ 36,837 $ — $ 36,837 $ — |
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 December 31, 2022 Impaired loans Commercial $ 16,817 $ — $ — $ 16,817 Other repossessed assets 6,051 — — 6,051 Totals $ 22,868 $ — $ — $ 22,868 December 31, 2021 Impaired loans Commercial $ 361 $ — $ — $ 361 Totals $ 361 $ — $ — $ 361 |
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 December 31, 2022 Impaired loans Commercial $ 16,817 Business valuation or collateral evaluation Comparable company or collateral evaluations 0 % - 10 % Other repossessed assets 6,051 Asset valuation Comparable assets evaluations 0 % - 3 % December 31, 2021 Impaired loans Commercial $ 361 Business valuation Comparable company evaluations 0 % - 24 % |
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 December 31, 2022 Financial assets: Cash and cash equivalents $ 80,629 $ 80,629 $ — $ — $ 80,629 Debt securities available-for-sale 28,600 — 28,600 — 28,600 Federal Home Loan Bank of Boston stock 4,266 N/A N/A N/A N/A Loans, net 1,416,047 — — 1,341,633 1,341,633 Accrued interest receivable 6,597 — 6,597 — 6,597 Other repossessed assets 6,051 — — 6,051 6,051 Financial liabilities: Deposits 1,279,582 — 1,279,665 — 1,279,665 Borrowings 126,829 — 124,590 — 124,590 December 31, 2021 Financial assets: Cash and cash equivalents $ 153,115 $ 153,115 $ — $ — $ 153,115 Debt securities available-for-sale 36,837 — 36,837 — 36,837 Federal Home Loan Bank of Boston stock 785 N/A N/A N/A N/A Loans and loans held for sale, net 1,456,649 — — 1,468,013 1,468,013 Accrued interest receivable 5,703 — 5,703 — 5,703 Financial liabilities: Deposits 1,459,895 — 1,459,841 — 1,459,841 Borrowings 13,500 — 13,698 — 13,698 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Only (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Statements of Parent Only [Abstract] | |
Schedule of Parent Only Statement of Balance Sheet | Provident Bancorp, Inc. - Parent Only Balance Sheet (In thousands) 2022 2021 Assets Cash and due from banks $ 17,415 $ 21,747 Investment in common stock of BankProv 181,824 203,018 Other assets 8,588 9,215 Total assets $ 207,827 $ 233,980 Liabilities and Shareholders' Equity Other liabilities $ 285 $ 198 Shareholders' equity 207,542 233,782 Total liabilities and shareholders' equity $ 207,827 $ 233,980 |
Schedule of Parent Only Income Statement | Years Ended Provident Bancorp, Inc. - Parent Only Income Statement December 31, (In thousands) 2022 2021 Total income $ 160 $ 137 Operating expenses 128 117 Income before income taxes and equity in undistributed net (loss) income of BankProv 32 20 Applicable income tax provision 8 6 Income before equity in income of subsidiaries 24 14 (Loss) equity in undistributed net income of BankProv ( 21,492 ) 16,125 Net (loss) income $ ( 21,468 ) $ 16,139 |
Schedule of Parent Only Statement of Cash Flows | Twelve Months Ended Provident Bancorp, Inc. - Parent Only Statement of Cash Flows December 31, (In thousands) 2022 2021 Cash flows from operating activities: Net (loss) income $ ( 21,468 ) $ 16,139 Adjustments to reconcile net income to net cash provided by operating activities: Loss (equity) in undistributed earnings of subsidiaries 21,492 ( 16,125 ) Deferred tax benefit 2 — Decrease in other assets 625 606 Increase in other liabilities 87 40 Net cash provided by operating activities 738 660 Cash flows from financing activities: Cash dividends paid on common stock ( 1,989 ) ( 2,560 ) Proceeds from exercise of stock options, net ( 108 ) ( 241 ) Shares surrendered related to tax withholdings on restricted stock awards ( 113 ) ( 614 ) Purchase of common stock ( 2,860 ) ( 18,348 ) Net cash used in financing activities ( 5,070 ) ( 21,763 ) Net decrease in cash and cash equivalents ( 4,332 ) ( 21,103 ) Cash and cash equivalents at beginning of year 21,747 42,850 Cash and cash equivalents at end of year $ 17,415 $ 21,747 |
Nature of Operations (Narrative
Nature of Operations (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 item | |
Basis of Presentation [Abstract] | |
Number of banking offices | 7 |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Par value of stock bought from and sold to the federal home loan bank (in dollars per share) | $ 100 | ||
Loan-to-value ratio benchmark percent | 80% | ||
Shareholders' equity | $ 207,542,000 | $ 233,782,000 | $ 235,856,000 |
Qualified affordable housing project investments | 7,300,000 | 1,100,000 | |
Qualified affordable housing project investments, amortized expense | 0 | 0 | |
Retained Earnings [Member] | |||
Shareholders' equity | $ 94,630,000 | $ 118,087,000 | $ 104,508,000 |
Building and Leasehold Improvements [Member] | Minimum [Member] | |||
Useful lives (in year(s)) | seven | ||
Building and Leasehold Improvements [Member] | Maximum [Member] | |||
Useful lives (in year(s)) | 40 years | ||
Furniture And Equipment [Member] | Minimum [Member] | |||
Useful lives (in year(s)) | one | ||
Furniture And Equipment [Member] | Maximum [Member] | |||
Useful lives (in year(s)) | 15 years | ||
Computer Equipment [Member] | Minimum [Member] | |||
Useful lives (in year(s)) | two | ||
Computer Equipment [Member] | Maximum [Member] | |||
Useful lives (in year(s)) | five years |
Debt Securities (Narrative) (De
Debt Securities (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) item security | Dec. 31, 2021 USD ($) item | |
Debt Securities [Abstract] | ||
Realized gains or losses on sales and calls | $ | $ 0 | $ 0 |
Securities of issuers whose aggregate carrying amount exceeded 10% | item | 0 | 0 |
Securities pledged to secure available borrowings with the Federal Reserve Bank and Federal Home Loan Bank | $ | $ 9.8 | $ 14.4 |
Securities in portfolio | security | 54 | |
Securities in portfolio, unrealized loss position | security | 52 |
Debt Securities (Summary of Amo
Debt Securities (Summary of Amortized Cost and Fair Value of Securities Available-for-Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 31,457 | $ 35,985 |
Gross Unrealized Gains | 2 | 951 |
Gross Unrealized Losses | 2,859 | 99 |
Fair Value | 28,600 | 36,837 |
State And Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 11,894 | 12,002 |
Gross Unrealized Gains | 2 | 625 |
Gross Unrealized Losses | 825 | 36 |
Fair Value | 11,071 | 12,591 |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 7,197 | 8,141 |
Gross Unrealized Gains | 118 | |
Gross Unrealized Losses | 923 | 4 |
Fair Value | 6,274 | 8,255 |
Government Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 12,366 | 15,842 |
Gross Unrealized Gains | 208 | |
Gross Unrealized Losses | 1,111 | 59 |
Fair Value | $ 11,255 | $ 15,991 |
Debt Securities (Schedule of Ma
Debt Securities (Schedule of Maturities of Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available-for-Sale, Amortized Cost | ||
Due after one year through five years | $ 569 | |
Due after five years through ten years | 1,170 | |
Due after ten years | 10,155 | |
Amortized Cost Basis | 31,457 | $ 35,985 |
Available-for-Sale, Fair Value | ||
Due after one year through five years | 549 | |
Due after five years through ten years | 1,170 | |
Due after ten years | 9,352 | |
Fair Value | 28,600 | 36,837 |
Government Mortgage-Backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost Basis | 12,366 | 15,842 |
Available-for-Sale, Fair Value | ||
Fair Value | 11,255 | 15,991 |
Asset-Backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | ||
Amortized Cost Basis | 7,197 | 8,141 |
Available-for-Sale, Fair Value | ||
Fair Value | $ 6,274 | $ 8,255 |
Debt Securities (Schedule of Ag
Debt Securities (Schedule of Aggregate Fair Value and Unrealized Losses of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 17,924 | $ 12,769 |
Unrealized Losses, Less than 12 Months | 839 | 94 |
Fair Value, 12 Months or Longer | 10,075 | 113 |
Unrealized Losses, 12 Months or Longer | 2,020 | 5 |
Fair Value, Total | 28,000 | 12,882 |
Unrealized Losses, Total | 2,859 | 99 |
State And Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 8,174 | 2,950 |
Unrealized Losses, Less than 12 Months | 183 | 36 |
Fair Value, 12 Months or Longer | 2,297 | |
Unrealized Losses, 12 Months or Longer | 642 | |
Fair Value, Total | 10,471 | 2,950 |
Unrealized Losses, Total | 825 | 36 |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 2,322 | 4,797 |
Unrealized Losses, Less than 12 Months | 182 | 4 |
Fair Value, 12 Months or Longer | 3,951 | |
Unrealized Losses, 12 Months or Longer | 741 | |
Fair Value, Total | 6,274 | 4,797 |
Unrealized Losses, Total | 923 | 4 |
Government Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 7,428 | 5,022 |
Unrealized Losses, Less than 12 Months | 474 | 54 |
Fair Value, 12 Months or Longer | 3,827 | 113 |
Unrealized Losses, 12 Months or Longer | 637 | 5 |
Fair Value, Total | 11,255 | 5,135 |
Unrealized Losses, Total | $ 1,111 | $ 59 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | Dec. 31, 2020 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of TDR | contract | 3 | 3 | ||
Troubled debt restructurings | $ 20,400,000 | $ 22,700,000 | ||
Commitments to lend additional funds | 0 | |||
Total Loans | 711,000 | $ 2,565,000 | ||
Asset Pledged as Collateral [Member] | Federal Reserve Bank [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loans | 365,700,000 | 371,500,000 | ||
Asset Pledged as Collateral [Member] | Federal Home Loan Bank [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loans | $ 172,100,000 | $ 191,800,000 | ||
Commercial Real Estate One [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of TDR | contract | 1 | |||
Troubled debt restructurings | $ 1,900,000 | |||
Commercial Real Estate [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loans | 240,000 | |||
Commercial [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of TDR | contract | 3 | |||
Total Loans | 318,000 | $ 1,984,000 | ||
Residential Real Estate [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loans | 144,000 | 555,000 | ||
Consumer [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loans | 9,000 | 26,000 | ||
Trouble Debt Restructurings, Commercial [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Charged-off | $ 351,000 | 1,600,000 | ||
Mortgage And Other Loans Portfolio Segment [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Unpaid principal balance of mortgage and other loans serviced for others | $ 20,600,000 | $ 23,700,000 |
Loans (Schedule of Loans) (Deta
Loans (Schedule of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans, amount | $ 1,449,928 | $ 1,457,411 | |
Allowance for loan losses | (28,069) | (19,496) | $ (18,518) |
Deferred loan fees, net | (5,812) | (4,112) | |
Net loans | 1,416,047 | 1,433,803 | |
Commercial Real Estate [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans, amount | 456,747 | 432,275 | |
Allowance for loan losses | (5,187) | (4,935) | (6,095) |
Commercial [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans, amount | 701,434 | 726,241 | |
Allowance for loan losses | (21,662) | (13,495) | (10,543) |
Commercial [Member] | Loans Secured By Cryptocurrency Mining Rigs [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans, amount | 26,700 | 49,500 | |
Commercial [Member] | Digital Asset [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans, amount | 41,200 | 120,500 | |
Residential Real Estate [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans, amount | 8,246 | 812 | |
Allowance for loan losses | (43) | (38) | (184) |
Construction And Land Development [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans, amount | 69,739 | 42,800 | |
Allowance for loan losses | (909) | (479) | (447) |
Consumer [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans, amount | 391 | 1,519 | |
Allowance for loan losses | (55) | (168) | (586) |
Mortgage Warehouse [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross loans, amount | 213,371 | 253,764 | |
Allowance for loan losses | $ (213) | $ (381) | $ (663) |
Loans (Schedule of Allowance fo
Loans (Schedule of Allowance for Loans and Gross Impaired Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 19,496 | $ 18,518 |
Charge-offs | (48,105) | (3,445) |
Recoveries | 250 | 536 |
Provision (credit) | 56,428 | 3,887 |
Ending balance | 28,069 | 19,496 |
Commercial Real Estate [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 4,935 | 6,095 |
Charge-offs | (150) | |
Recoveries | 92 | |
Provision (credit) | 252 | (1,102) |
Ending balance | 5,187 | 4,935 |
Commercial [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 13,495 | 10,543 |
Charge-offs | (48,039) | (2,980) |
Recoveries | 219 | 368 |
Provision (credit) | 55,987 | 5,564 |
Ending balance | 21,662 | 13,495 |
Residential Real Estate [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 38 | 184 |
Charge-offs | ||
Recoveries | 2 | |
Provision (credit) | 5 | (148) |
Ending balance | 43 | 38 |
Construction And Land Development [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 479 | 447 |
Charge-offs | ||
Recoveries | ||
Provision (credit) | 430 | 32 |
Ending balance | 909 | 479 |
Consumer [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 168 | 586 |
Charge-offs | (66) | (315) |
Recoveries | 31 | 74 |
Provision (credit) | (78) | (177) |
Ending balance | 55 | 168 |
Mortgage Warehouse [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 381 | 663 |
Charge-offs | ||
Recoveries | ||
Provision (credit) | (168) | (282) |
Ending balance | $ 213 | $ 381 |
Loans (Schedule of Allowance _2
Loans (Schedule of Allowance for Loan Losses and Related Loan Balances by Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for loan losses: | |||
Ending balance: Individually evaluated for impairment | $ 10,098 | $ 1,616 | |
Ending balance: Collectively evaluated for impairment | 17,971 | 17,880 | |
Total allowance for loan losses ending balance | 28,069 | 19,496 | $ 18,518 |
Loans: | |||
Ending balance: Individually evaluated for impairment | 47,410 | 24,117 | |
Ending balance: Collectively evaluated for impairment | 1,402,518 | 1,433,294 | |
Total Loans | 1,449,928 | 1,457,411 | |
Commercial Real Estate [Member] | |||
Allowance for loan losses: | |||
Ending balance: Individually evaluated for impairment | |||
Ending balance: Collectively evaluated for impairment | 5,187 | 4,935 | |
Total allowance for loan losses ending balance | 5,187 | 4,935 | 6,095 |
Loans: | |||
Ending balance: Individually evaluated for impairment | 20,111 | 20,188 | |
Ending balance: Collectively evaluated for impairment | 436,636 | 412,087 | |
Total Loans | 456,747 | 432,275 | |
Commercial [Member] | |||
Allowance for loan losses: | |||
Ending balance: Individually evaluated for impairment | 10,098 | 1,616 | |
Ending balance: Collectively evaluated for impairment | 11,564 | 11,879 | |
Total allowance for loan losses ending balance | 21,662 | 13,495 | 10,543 |
Loans: | |||
Ending balance: Individually evaluated for impairment | 27,145 | 3,929 | |
Ending balance: Collectively evaluated for impairment | 674,289 | 722,312 | |
Total Loans | 701,434 | 726,241 | |
Residential Real Estate [Member] | |||
Allowance for loan losses: | |||
Ending balance: Individually evaluated for impairment | |||
Ending balance: Collectively evaluated for impairment | 43 | 38 | |
Total allowance for loan losses ending balance | 43 | 38 | 184 |
Loans: | |||
Ending balance: Individually evaluated for impairment | 154 | ||
Ending balance: Collectively evaluated for impairment | 8,092 | 812 | |
Total Loans | 8,246 | 812 | |
Construction And Land Development [Member] | |||
Allowance for loan losses: | |||
Ending balance: Individually evaluated for impairment | |||
Ending balance: Collectively evaluated for impairment | 909 | 479 | |
Total allowance for loan losses ending balance | 909 | 479 | 447 |
Loans: | |||
Ending balance: Individually evaluated for impairment | |||
Ending balance: Collectively evaluated for impairment | 69,739 | 42,800 | |
Total Loans | 69,739 | 42,800 | |
Consumer [Member] | |||
Allowance for loan losses: | |||
Ending balance: Individually evaluated for impairment | |||
Ending balance: Collectively evaluated for impairment | 55 | 168 | |
Total allowance for loan losses ending balance | 55 | 168 | 586 |
Loans: | |||
Ending balance: Individually evaluated for impairment | |||
Ending balance: Collectively evaluated for impairment | 391 | 1,519 | |
Total Loans | 391 | 1,519 | |
Mortgage Warehouse [Member] | |||
Allowance for loan losses: | |||
Ending balance: Individually evaluated for impairment | |||
Ending balance: Collectively evaluated for impairment | 213 | 381 | |
Total allowance for loan losses ending balance | 213 | 381 | $ 663 |
Loans: | |||
Ending balance: Individually evaluated for impairment | |||
Ending balance: Collectively evaluated for impairment | 213,371 | 253,764 | |
Total Loans | $ 213,371 | $ 253,764 |
Loans (Schedule of Non-Accrual
Loans (Schedule of Non-Accrual Loans and Loan Delinquencies by Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | $ 711 | $ 2,565 |
Total Current | 1,449,217 | 1,454,846 |
Nonaccrual Loans | 27,383 | 2,892 |
30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 240 | 28 |
60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 9 | 122 |
90 Days Or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 462 | 2,415 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 240 | |
Total Current | 456,507 | 432,275 |
Nonaccrual Loans | 55 | |
Commercial Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 240 | |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 318 | 1,984 |
Total Current | 701,116 | 724,257 |
Nonaccrual Loans | 27,031 | 2,080 |
Commercial [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 13 | |
Commercial [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 111 | |
Commercial [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 318 | 1,860 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 144 | 555 |
Total Current | 8,102 | 257 |
Nonaccrual Loans | 297 | 812 |
Residential Real Estate [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 144 | 555 |
Construction And Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Current | 69,739 | 42,800 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 9 | 26 |
Total Current | 382 | 1,493 |
Consumer [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 15 | |
Consumer [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 9 | 11 |
Mortgage Warehouse [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Current | $ 213,371 | $ 253,764 |
Loans (Schedule of Impaired Loa
Loans (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
With no related allowance recorded: | ||
Recorded Investment | $ 20,758 | $ 22,203 |
Unpaid Principal Balance | 22,624 | 22,544 |
Average Recorded Investment | 21,012 | 22,350 |
Interest Income Recognized | 615 | 835 |
With an allowance recorded: | ||
Recorded Investment | 26,652 | 1,914 |
Unpaid Principal Balance | 26,652 | 3,086 |
Average Recorded Investment | 26,652 | 2,576 |
Interest Income Recognized | 4 | |
Total | ||
Recorded Investment | 47,410 | 24,117 |
Unpaid Principal Balance | 49,276 | 25,630 |
Related Allowance | 10,098 | 1,616 |
Average Recorded Investment | 47,664 | 24,926 |
Interest Income Recognized | 615 | 839 |
Commercial Real Estate [Member] | ||
With no related allowance recorded: | ||
Recorded Investment | 20,111 | 20,188 |
Unpaid Principal Balance | 20,122 | 20,339 |
Average Recorded Investment | 20,150 | 20,282 |
Interest Income Recognized | 600 | 652 |
Total | ||
Recorded Investment | 20,111 | 20,188 |
Unpaid Principal Balance | 20,122 | 20,339 |
Average Recorded Investment | 20,150 | 20,282 |
Interest Income Recognized | 600 | 652 |
Commercial [Member] | ||
With no related allowance recorded: | ||
Recorded Investment | 493 | 2,015 |
Unpaid Principal Balance | 2,348 | 2,205 |
Average Recorded Investment | 706 | 2,068 |
Interest Income Recognized | 8 | 183 |
With an allowance recorded: | ||
Recorded Investment | 26,652 | 1,914 |
Unpaid Principal Balance | 26,652 | 3,086 |
Average Recorded Investment | 26,652 | 2,576 |
Interest Income Recognized | 4 | |
Total | ||
Recorded Investment | 27,145 | 3,929 |
Unpaid Principal Balance | 29,000 | 5,291 |
Related Allowance | 10,098 | 1,616 |
Average Recorded Investment | 27,358 | 4,644 |
Interest Income Recognized | 8 | $ 187 |
Residential Real Estate [Member] | ||
With no related allowance recorded: | ||
Recorded Investment | 154 | |
Unpaid Principal Balance | 154 | |
Average Recorded Investment | 156 | |
Interest Income Recognized | 7 | |
Total | ||
Recorded Investment | 154 | |
Unpaid Principal Balance | 154 | |
Average Recorded Investment | 156 | |
Interest Income Recognized | $ 7 |
Loans (Schedule of Troubled Deb
Loans (Schedule of Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 contract | Dec. 31, 2021 USD ($) contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 3 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 1,868 | |
Post-Modification Outstanding Recorded Investment | $ 1,868 | |
Commercial [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 1,868 | |
Post-Modification Outstanding Recorded Investment | $ 1,868 |
Loans (Schedule of Loans by Ris
Loans (Schedule of Loans by Risk Rating and Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 1,449,928 | $ 1,457,411 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,306,034 | 1,355,067 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 68,287 | 70,925 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 67,004 | 29,338 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 263 | 562 |
Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,340 | 1,519 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 456,747 | 432,275 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 402,519 | 383,460 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 27,034 | 29,004 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 27,194 | 19,811 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 701,434 | 726,241 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 620,405 | 676,081 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 41,253 | 41,921 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 39,513 | 7,677 |
Commercial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 263 | 562 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,246 | 812 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 297 | 812 |
Residential Real Estate [Member] | Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7,949 | |
Construction And Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 69,739 | 42,800 |
Construction And Land Development [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 69,739 | 41,762 |
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 | 391 | 1,519 |
Consumer [Member] | Not Formally Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 391 | 1,519 |
Mortgage Warehouse [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 213,371 | 253,764 |
Mortgage Warehouse [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 213,371 | $ 253,764 |
Loans (Schedule of Loans to Dir
Loans (Schedule of Loans to Directors and Executive Officers of the Company and Companies in Which They Have Significant Ownership Interest) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance Beginning January 1 | $ 18,586 | $ 15,378 |
Advances | 12,105 | 5,912 |
Principal payments | (12,434) | (1,267) |
Loans transferred/sold | (25) | (1,437) |
Ending Balance, December 31 | $ 18,232 | $ 18,586 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Premises and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 940 | $ 870 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 25,042 | $ 25,493 |
Accumulated depreciation and amortization | (11,462) | (11,235) |
Premises and equipment, net | 13,580 | 14,258 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 2,424 | 2,424 |
Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 13,851 | 13,838 |
Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 5,241 | 5,705 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 3,526 | $ 3,526 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Brokered certificates of deposit | $ 120.1 | $ 20.2 |
Deposits from related parties held | $ 11.9 | $ 14.6 |
Deposits (Schedule of Deposit B
Deposits (Schedule of Deposit Balances by Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Demand | $ 520,226 | $ 626,587 |
NOW | 145,533 | 197,884 |
Regular savings | 141,802 | 155,267 |
Money market deposits | 318,417 | 419,625 |
Certificate accounts of $250,000 or more | 11,449 | 5,078 |
Certificate accounts less than $250,000 | 142,155 | 55,454 |
Total interest-bearing | 759,356 | 833,308 |
Total deposits | $ 1,279,582 | $ 1,459,895 |
Deposits (Schedule of Maturitie
Deposits (Schedule of Maturities for Time Deposits) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Deposits [Abstract] | |
2023 | $ 146,624 |
2024 | 5,149 |
2025 | 1,461 |
2026 | 208 |
2027 | 162 |
Total | $ 153,604 |
Other Repossessed Assets (Narra
Other Repossessed Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Repossessed Assets [Abstract] | |||
Repossessed Cryptocurrency Mining Rigs In Exchange For Loan Forgiveness, Amount | $ 6,100 | ||
Other repossessed assets | 6,051 | ||
Valuation allowance for other repossessed assets | $ 597 |
Other Repossessed Assets (Activ
Other Repossessed Assets (Activity Related To Other Repossessed Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Repossessed Assets [Abstract] | |||
Balance at January 1, | |||
Loans transferred to other repossessed assets | 10,451 | ||
Direct write-downs | (26) | ||
Sale of other repossessed assets | (3,777) | ||
Other repossessed assets | 6,648 | ||
Valuation allowance/provision charged to expense | (597) | ||
Net balance of other repossessed assets at December 31, 2022 | $ 6,051 |
Other Repossessed Assets (Act_2
Other Repossessed Assets (Activity In Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other Repossessed Assets [Abstract] | ||
Beginning balance | ||
Provision charged to expense | 597 | |
Ending balance | $ 597 |
Other Repossessed Assets (Expen
Other Repossessed Assets (Expense Related To Other Repossessed Assets) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Other Repossessed Assets [Abstract] | |
Net loss (gain) on sales | $ 26 |
Provision charged to expense | 597 |
Operating expenses, net of rental income | 344 |
Other repossessed assets expense | $ 967 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Federal Home Loan Bank, Advances [Line Items] | ||
Short-term borrowings | $ 108,500,000 | |
Long-term Debt | $ 18,329,000 | $ 13,500,000 |
Minimum [Member] | Federal Home Loan Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rates on FHLB advances ranged from | 1.21% | |
Maximum [Member] | Federal Home Loan Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rates on FHLB advances ranged from | 3.01% | |
Weighted Average [Member] | Federal Home Loan Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rates on FHLB advances ranged from | 1.91% | |
Federal Reserve Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rate on overnight borrowings | 4.50% | |
Short-term borrowings | $ 19,500,000 | $ 0 |
Federal Reserve Bank, maximum amount available | 153,300,000 | |
Federal Home Loan Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Short-term borrowings | 89,000,000 | |
long-term borrowings, with original maturities more than one year | $ 18,300,000 | |
Interest rates on FHLB advances ranged from | 4.38% | |
Amount available | $ 118,200,000 |
Borrowings (Schedule of Maturit
Borrowings (Schedule of Maturities of Advances from FHLB) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Borrowings [Abstract] | ||
2023 | $ 117,132 | $ 8,500 |
2024 | 134 | |
2025 | 5,136 | 5,000 |
2026 | 138 | |
2027 | 139 | |
Thereafter | 4,150 | |
Total borrowings | $ 126,829 | $ 13,500 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Federal net operating loss carryovers | $ 15.3 |
State net operating loss carryovers | 9.1 |
Not Expiring [Member] | |
Operating Loss Carryforwards [Line Items] | |
State net operating loss carryovers | 1.9 |
Expire At Various Dates From 2027 To 2042 [Member] | |
Operating Loss Carryforwards [Line Items] | |
State net operating loss carryovers | $ 7.2 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components for Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax (benefit) expense: | ||
Federal | $ 267 | $ 4,715 |
State | (81) | 1,817 |
Current tax expense (benefit) | 186 | 6,532 |
Deferred tax benefit: | ||
Federal | (4,785) | (401) |
State | (1,191) | (177) |
Deferred tax benefit | (5,976) | (578) |
Income tax expense | $ (5,790) | $ 5,954 |
Income Taxes (Summary of Differ
Income Taxes (Summary of Differences Between the Statutory Federal Income Tax Rate and Effective Tax Rates) (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Abstract] | ||
Federal income tax at statutory rate | (21.00%) | 21% |
Increase (decrease) in tax resulting from: | ||
State tax, net of federal tax benefit | (3.70%) | 5.90% |
Tax exempt income and dividends received deduction | (0.30%) | (0.30%) |
Other | 3.80% | 0.30% |
Effective tax rate | (21.20%) | 26.90% |
Income Taxes (Summary of Deferr
Income Taxes (Summary of Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 7,646 | $ 5,403 |
Net operating loss carryforward | 3,785 | |
Employee benefit plans and share-based compensation plans | 2,238 | 3,081 |
Deferred loan fees, net | 1,583 | 1,140 |
Write down of other assets and receivables | 109 | 111 |
Depreciation | 82 | |
Reserve for unfunded commitments | 60 | 56 |
Net unrealized gain on securities | 657 | |
Other | 701 | 467 |
Gross deferred tax assets | 16,861 | 10,258 |
Deferred tax liabilities: | ||
Depreciation | (37) | |
Prepaid expenses | (68) | (60) |
Net unrealized holding gain on securities | (203) | |
Gross deferred tax liabilities | (68) | (300) |
Net deferred tax asset | $ 16,793 | $ 9,958 |
Employee Benefits & Stock-Bas_3
Employee Benefits & Stock-Based Compensation Plans (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 15, 2019 | Feb. 28, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation [Line Items] | ||||
Compensation expense | $ 1,293 | $ 1,414 | ||
Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Share based compensation expenses | 864 | 1,100 | ||
Intrinsic value of options exercised | 431 | 1,300 | ||
Tax benefit from option exercises | 103 | 288 | ||
Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Share based compensation expenses | 990 | 1,400 | ||
Tax benefit from restricted awards | 277 | 390 | ||
Fair value of shares vested | 662 | 2,500 | ||
Supplemental Executive Retirement Plans [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Liability for retirement benefits | 8,500 | 10,900 | ||
Expense recognized for benefits | $ 1,800 | 1,800 | ||
401(k) Plan [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Employer matching contribution, percent of match | 75% | 100% | ||
Employee contributions | 6% | |||
Expense recognized | $ 1,100 | 955 | ||
Employee Stock Ownership Plan [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Compensation expense | $ 1,300 | $ 1,400 | ||
ESOP shares | 1,538,868 | 1,538,868 | ||
Initial stock offering | $ 11,800 | |||
ESOP payable term | 15 years | |||
Rate per annum for employee stock ownership plan | 5% | |||
Fair value of unallocated shares | $ 7,200 | |||
Committed to be released | 89,758 | 89,758 | ||
2016 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 902,344 | |||
2016 Equity Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 360,935 | |||
2020 Equity Plan [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 1,021,239 | |||
2020 Equity Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Shares reserved | 408,495 | |||
2016 And 2020 Equity Plan [Member] | Stock Option [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Options expiration period | 10 years | |||
Minimum [Member] | 2016 And 2020 Equity Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Vesting period (years) | 3 years | |||
Maximum [Member] | 2016 And 2020 Equity Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation [Line Items] | ||||
Vesting period (years) | 5 years |
Employee Benefits & Stock-Bas_4
Employee Benefits & Stock-Based Compensation Plans (Schedule of Fair Value of Options Granted Assumptions) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 33.47% | 34.41% |
Expected life (years) | 7 years 6 months | 7 years 6 months |
Expected dividend yield | 1.01% | 1.07% |
Risk free interest rate | 2.63% | 1.19% |
Fair value per option | $ 5.82 | $ 5.06 |
Employee Benefits & Stock-Bas_5
Employee Benefits & Stock-Based Compensation Plans (Schedule of Shares Held by the ESOP) (Details) - Employee Stock Ownership Plan [Member] - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Share-Based Compensation | ||
Allocated | 461,772 | 372,014 |
Committed to be allocated | 89,758 | 89,758 |
Unallocated | 987,338 | 1,077,096 |
Total | 1,538,868 | 1,538,868 |
Employee Benefits & Stock-Bas_6
Employee Benefits & Stock-Based Compensation Plans (Schedule of Stock Option Grants Activity) (Details) - Stock Option [Member] | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Stock Option Awards | |
Outstanding, beginning | shares | 1,558,963 |
Granted | shares | 108,360 |
Forfeited | shares | (147,570) |
Exercised | shares | (51,877) |
Outstanding, ending | shares | 1,467,876 |
Outstanding and expected to vest at September 30, 2022 | shares | 1,467,876 |
Vested and Exercisable at September 30, 2022 | shares | 974,979 |
Unrecognized compensation cost | $ | $ 1,968,000 |
Weighted average remaining recognition period (years) | 3 years 4 months 9 days |
Weighted Average Exercise Price | |
Outstanding, beginning | $ / shares | $ 10.72 |
Granted | $ / shares | 16.03 |
Forfeited | $ / shares | 12.10 |
Exercised | $ / shares | 9.92 |
Outstanding, ending | $ / shares | 11 |
Outstanding and expected to vest at September 30, 2022 | $ / shares | 11 |
Vested and Exercisable at September 30, 2022 | $ / shares | $ 9.96 |
Weighted Average Remaining Contractual Term (years) | |
Outstanding at September 30, 2022 | 5 years 2 months 15 days |
Outstanding and expected to vest at September 30, 2022 | 5 years 2 months 15 days |
Vested and Exercisable at September 30, 2022 | 3 years 7 months 24 days |
Employee Benefits & Stock-Bas_7
Employee Benefits & Stock-Based Compensation Plans (Schedule of Activity in Restricted Stock Awards Under the Equity Plan) (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Number of Shares | |
Unvested restricted stock awards, beginning | shares | 277,925 |
Granted | shares | 49,355 |
Forfeited | shares | (59,028) |
Vested | shares | (75,504) |
Unvested restricted stock awards, ending | shares | 192,748 |
Unrecognized compensation cost | $ | $ 2,283,000 |
Weighted average remaining recognition period (years) | 3 years 4 months 28 days |
Weighted Average Grant Price | |
Unvested restricted stock awards, beginning | $ / shares | $ 12.15 |
Granted | $ / shares | 15.91 |
Forfeited | $ / shares | 12.10 |
Vested | $ / shares | 12.06 |
Unvested restricted stock awards, ending | $ / shares | $ 13.16 |
(Loss) Earnings Per Share (Narr
(Loss) Earnings Per Share (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2021 shares | |
(Loss) Earnings Per Share [Abstract] | |
Anti-dilutive shares | 236,722 |
(Loss) Earnings Per Share (Sche
(Loss) Earnings Per Share (Schedule of Earning per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
(Loss) Earnings Per Share [Abstract] | ||
Net (loss) income attributable to common shareholders | $ (21,468) | $ 16,139 |
Average number of common shares outstanding | 17,765,372 | 18,242,576 |
Less: | ||
average unallocated ESOP shares | (1,028,283) | (1,118,037) |
average unvested restricted stock | (254,466) | (351,911) |
Average number of common shares outstanding to calculate basic earnings per common share | 16,482,623 | 16,772,628 |
Effect of dilutive unvested restricted stock and stock option awards | 529,379 | |
Average number of common shares outstanding to calculate diluted earnings per common share | 16,482,623 | 17,302,007 |
(Loss) Earnings per common share: | ||
Basic (in dollars per share) | $ (1.30) | $ 0.96 |
Diluted (in dollars per share) | $ (1.30) | $ 0.93 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | Jan. 01, 2020 USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Common equity Tier 1 ("CETI") capital ratio | 0.045 | 0.045 | |||
Minimum Tier 1 capital to risk-weighted assets ratio | 0.060 | 0.060 | |||
Minimum total capital to risk-weighted assets ratio | 0.080 | 0.080 | |||
Minimum Tier 1 leverage ratio | 0.040 | 0.040 | |||
CETI capital ratio | 0.065 | 0.065 | |||
Tier 1 ratio | 0.080 | 0.080 | |||
Total risk based capital ratio | 0.10 | 0.100 | |||
Tier 1 leverage ratio | 5% | ||||
Capital conservation buffer | 2.50% | ||||
Net (loss) income | $ (21,468) | $ 16,139 | $ 12,100 | ||
Dividends available | 6,700 | ||||
Dividends paid | 2,000 | ||||
Available after dividend payment | $ 4,700 | ||||
Minimum [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
CBLR leverage ratio | 9% | ||||
Growth Act [Member] | Minimum [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Capital conservation buffer | 9% | ||||
Growth Act [Member] | Maximum [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
CBLR total consolidated assets | $ 10,000,000 | ||||
Common Stock [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Repurchase of common stock (in shares) | shares | 180,434 | 1,240,304 | |||
Retained Earnings [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Net (loss) income | $ (21,468) | $ 16,139 | |||
Repurchase Program [Member] | Common Stock [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Plan to repurchase (in shares) | shares | 1,400,000 | ||||
Stock Repurchased At End Of Period Shares | shares | 1,145,479 | ||||
Repurchase of common stock (in shares) | shares | 180,434 |
Regulatory Matters (Schedule of
Regulatory Matters (Schedule of Bank's Actual Capital Amounts and Ratios) (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Regulatory Matters [Abstract] | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 204,354 | $ 221,865 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 0.1262 | 0.1418 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 129,492 | $ 125,177 |
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 | $ 161,865 | $ 156,472 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.10 | 0.100 |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Amount | $ 184,025 | $ 202,369 |
Tier 1 Capital (to Risk Weighted Assets), Actual Capital, Ratio | 0.1137 | 0.1293 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 97,119 | $ 93,883 |
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 | $ 129,492 | $ 125,177 |
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 | $ 184,025 | $ 202,369 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.1137 | 0.1293 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 72,839 | $ 70,412 |
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 | $ 105,212 | $ 101,706 |
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 | $ 184,025 | $ 202,369 |
Tier 1 Capital (to Average Assets), Actual Capital, Ratio | 0.1117 | 0.1207 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Amount | $ 65,916 | $ 67,072 |
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 | $ 82,395 | $ 83,840 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.050 | 0.050 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | |
Leases [Abstract] | ||
Operating right-of-use assets | $ 3,942 | $ 4,102 |
Operating lease liabilities | $ 4,282 | $ 4,387 |
Number of leased branch locations | item | 2 | |
Number of leased loan production office | item | 1 | |
Operating leases expense | $ 315 |
Leases (Schedule of Information
Leases (Schedule of Information Regarding Operating Leases) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Line Items] | ||
Weighted-average discount rate | 3.59% | 3.57% |
Weighted-average remaining lease term | 26 years 4 months 24 days | 27 years |
Minimum [Member] | ||
Leases [Line Items] | ||
Range of lease expiration dates | 1 year | 1 year |
Range of lease renewal options | 5 years | 5 years |
Maximum [Member] | ||
Leases [Line Items] | ||
Range of lease expiration dates | 13 years | 14 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Fiscal Year-End | ||
2023 | $ 264 | |
2024 | 270 | |
2025 | 280 | |
2026 | 291 | |
2027 | 293 | |
Years thereafter | 5,740 | |
Total lease payments | 7,138 | |
Less imputed interest | (2,856) | |
Total lease liabilities | $ 4,282 | $ 4,387 |
Financial Instruments With Of_3
Financial Instruments With Off-Balance Sheet Risk (Schedule of Financial Instrument with Off-Balance Sheet Credit Risk) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | $ 355,447 | $ 325,143 |
Commitments To Originate Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | 6,087 | 16,376 |
Letters Of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | 1,686 | 1,314 |
Unadvanced Portions Of Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amounts of financial instrument with off-balance sheet credit risk | $ 347,674 | $ 307,453 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 22,868 | $ 361 |
Repossessed cryptocurrency mining rigs in exchange for loan forgiveness, amount | 6,100 | |
Provision charged to expense | 597 | |
Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | 361 |
Nonrecurring Basis [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 22,868 | 361 |
Nonrecurring Basis [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | 361 |
Nonrecurring Basis [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | 361 |
Reserves | 10,100 | 1,600 |
Charge offs | 1,800 | 1,200 |
Carrying Amount [Member] | Nonrecurring Basis [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 28,700 | $ 3,200 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in available-for-sale securities (at fair value) | $ 28,600 | $ 36,837 |
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) | 11,071 | 12,591 |
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) | 6,274 | 8,255 |
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) | 11,255 | 15,991 |
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) | 28,600 | 36,837 |
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) | 11,071 | 12,591 |
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) | 6,274 | 8,255 |
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) | $ 11,255 | $ 15,991 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 22,868 | $ 361 |
Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | 361 |
Nonrecurring Basis [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 22,868 | 361 |
Nonrecurring Basis [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | 361 |
Impaired Loans [Member] | Nonrecurring Basis [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,817 | $ 361 |
Other Repossessed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 6,051 | |
Other Repossessed Assets [Member] | Nonrecurring Basis [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 6,051 |
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) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 22,868 | $ 361 |
Commercial [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | 16,817 | 361 |
Nonrecurring Basis [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | 22,868 | 361 |
Nonrecurring Basis [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | 16,817 | 361 |
Impaired Loans [Member] | Nonrecurring Basis [Member] | Commercial [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 16,817 | $ 361 |
Impaired Loans [Member] | Nonrecurring Basis [Member] | 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% | 0% |
Impaired Loans [Member] | Nonrecurring Basis [Member] | 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% | 24% |
Other Repossessed Assets [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 6,051 | |
Other Repossessed Assets [Member] | Nonrecurring Basis [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, fair value | $ 6,051 | |
Other Repossessed Assets [Member] | Nonrecurring Basis [Member] | Significant Unobservable Inputs Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 0% | |
Other Repossessed Assets [Member] | Nonrecurring Basis [Member] | Significant Unobservable Inputs Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of valuation technique | 3% |
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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | |||
Debt securities available-for-sale | $ 28,600 | $ 36,837 | |
Federal Home Loan Bank of Boston stock | 4,266 | 785 | |
Loans, net | 1,416,047 | 1,433,803 | |
Accrued interest receivable | 6,597 | 5,703 | |
Other repossessed assets | 6,051 | ||
Financial liabilities: | |||
Deposits | 1,279,582 | 1,459,895 | |
Borrowings | 18,329 | 13,500 | |
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 80,629 | 153,115 | |
Debt securities available-for-sale | 28,600 | 36,837 | |
Federal Home Loan Bank of Boston stock | 4,266 | 785 | |
Loans and loans held for sale, net | 1,456,649 | ||
Loans, net | 1,416,047 | ||
Accrued interest receivable | 6,597 | 5,703 | |
Other repossessed assets | 6,051 | ||
Financial liabilities: | |||
Deposits | 1,279,582 | 1,459,895 | |
Borrowings | 126,829 | 13,500 | |
Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 80,629 | 153,115 | |
Debt securities available-for-sale | 28,600 | 36,837 | |
Loans and loans held for sale, net | 1,468,013 | ||
Loans, net | 1,341,633 | ||
Accrued interest receivable | 6,597 | 5,703 | |
Other repossessed assets | 6,051 | ||
Financial liabilities: | |||
Deposits | 1,279,665 | 1,459,841 | |
Borrowings | 124,590 | 13,698 | |
Quoted Prices In Active Markets Identical Assets Level 1 [Member] | Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 80,629 | 153,115 | |
Significant Other Observable Inputs Level 2 [Member] | Fair Value [Member] | |||
Financial assets: | |||
Debt securities available-for-sale | 28,600 | 36,837 | |
Accrued interest receivable | 6,597 | 5,703 | |
Financial liabilities: | |||
Deposits | 1,279,665 | 1,459,841 | |
Borrowings | 124,590 | 13,698 | |
Significant Unobservable Inputs Level 3 [Member] | Fair Value [Member] | |||
Financial assets: | |||
Loans and loans held for sale, net | $ 1,468,013 | ||
Loans, net | 1,341,633 | ||
Other repossessed assets | $ 6,051 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Only (Schedule of Parent Only Statement of Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | |||
Cash and due from banks | $ 42,923 | $ 22,470 | |
Other assets | 16,261 | 5,308 | |
Total assets | 1,636,381 | 1,729,283 | |
Liabilities and Shareholders' Equity | |||
Other liabilities | 18,146 | 17,719 | |
Shareholders' equity | 207,542 | 233,782 | $ 235,856 |
Total liabilities and shareholders' equity | 1,636,381 | 1,729,283 | |
PROVIDENT BANCORP, INC. [Member] | |||
Assets | |||
Cash and due from banks | 17,415 | 21,747 | |
Investment in common stock of BankProv | 181,824 | 203,018 | |
Other assets | 8,588 | 9,215 | |
Total assets | 207,827 | 233,980 | |
Liabilities and Shareholders' Equity | |||
Other liabilities | 285 | 198 | |
Shareholders' equity | 207,542 | 233,782 | |
Total liabilities and shareholders' equity | $ 207,827 | $ 233,980 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Only (Schedule of Parent Only Income Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | |||
Applicable income tax provision | $ (5,790) | $ 5,954 | |
Net (loss) income | (21,468) | 16,139 | $ 12,100 |
PROVIDENT BANCORP, INC. [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Total income | 160 | 137 | |
Operating expenses | 128 | 117 | |
Income before income taxes and equity in undistributed net (loss) income of BankProv | 32 | 20 | |
Applicable income tax provision | 8 | 6 | |
Income before equity in income of subsidiaries | 24 | 14 | |
(Loss) equity in undistributed net income of BankProv | (21,492) | 16,125 | |
Net (loss) income | $ (21,468) | $ 16,139 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Only (Schedule of Parent Only Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (21,468) | $ 16,139 | $ 12,100 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred tax benefit | (5,976) | (578) | |
Decrease in other assets | (11,348) | (2,760) | |
Increase in other liabilities | 427 | 3,210 | |
Net cash provided by operating activities | 21,905 | 24,313 | |
Cash flows from financing activities: | |||
Cash dividends paid on common stock | (1,989) | (2,560) | |
Purchase of common stock | (2,860) | (18,348) | |
Net cash used in financing activities | (72,054) | 200,704 | |
Net (decrease) increase in cash and cash equivalents | (72,486) | 69,296 | |
Cash and cash equivalents at beginning of year | 153,115 | 83,819 | |
Cash and cash equivalents at end of year | 80,629 | 153,115 | 83,819 |
PROVIDENT BANCORP, INC. [Member] | |||
Cash flows from operating activities: | |||
Net (loss) income | (21,468) | 16,139 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss (equity) in undistributed earnings of subsidiaries | 21,492 | (16,125) | |
Deferred tax benefit | 2 | ||
Decrease in other assets | 625 | 606 | |
Increase in other liabilities | 87 | 40 | |
Net cash provided by operating activities | 738 | 660 | |
Cash flows from financing activities: | |||
Cash dividends paid on common stock | (1,989) | (2,560) | |
Proceeds from exercise of stock options, net | (108) | (241) | |
Shares surrendered related to tax withholdings on restricted stock awards | (113) | (614) | |
Purchase of common stock | (2,860) | (18,348) | |
Net cash used in financing activities | (5,070) | (21,763) | |
Net (decrease) increase in cash and cash equivalents | (4,332) | (21,103) | |
Cash and cash equivalents at beginning of year | 21,747 | 42,850 | |
Cash and cash equivalents at end of year | $ 17,415 | $ 21,747 | $ 42,850 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Feb. 28, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | ||||
Recorded Investment | $ 47,410 | $ 24,117 | ||
Repossessed cryptocurrency mining rigs in exchange for loan forgiveness, amount | 6,100 | |||
Other repossessed assets | $ 6,051 | |||
Cryptocurrency Mining Rigs [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Loan restructuring amount | $ 21,800 |
Risk And Uncertainties (Narrati
Risk And Uncertainties (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Unusual Risk or Uncertainty [Line Items] | |||
Total loans ending balance | $ 1,449,928 | $ 1,457,411 | |
Other Repossessed Assets | 6,051 | ||
Commercial [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Total loans ending balance | 701,434 | 726,241 | |
Commercial [Member] | Digital Asset [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Total loans ending balance | 41,200 | $ 120,500 | |
Impaired Loans With Related Allowance Specific Allowance | $ 26,700 |