Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2023 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BCOW | |
Entity Registrant Name | 1895 Bancorp of Wisconsin, Inc. | |
Entity Central Index Key | 0001847360 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Address, State or Province | WI | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 6,109,644 | |
Entity File Number | 001-40609 | |
Entity Tax Identification Number | 61-1993378 | |
Entity Address, Address Line One | 7001 West Edgerton Avenue | |
Entity Address, City or Town | Greenfield | |
Entity Address, Postal Zip Code | 53220 | |
City Area Code | 414 | |
Local Phone Number | 421-8200 | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 23,241 | $ 26,029 |
Fed funds sold | 3,362 | 2,315 |
Cash and cash equivalents | 26,603 | 28,344 |
Marketable equity securities, stated at fair value | 3,286 | 2,924 |
Available-for-sale securities, stated at fair value | 104,641 | 114,492 |
Loans held for sale | 410 | 125 |
Loans, net of deferred costs | 386,296 | 362,777 |
Allowance for credit losses for loans | (3,614) | (3,203) |
Total loans, net of deferred loan costs and allowance for credit losses | 382,682 | 359,574 |
Premises and equipment, net | 5,240 | 5,451 |
Mortgage servicing rights, net | 1,751 | 1,860 |
Federal Home Loan Bank (FHLB) stock, at cost | 4,787 | 3,429 |
Accrued interest receivable | 1,349 | 1,257 |
Cash value of life insurance | 13,919 | 14,316 |
Other assets | 9,908 | 11,244 |
TOTAL ASSETS | 554,576 | 543,016 |
Liabilities and Stockholders' Equity | ||
Deposits | 386,973 | 387,721 |
Advance payments by borrowers for taxes and insurance | 10,264 | 1,029 |
FHLB advances | 78,499 | 71,464 |
Accrued interest payable | 1,099 | 291 |
Other liabilities | 7,582 | 7,149 |
TOTAL LIABILITIES | 484,417 | 467,654 |
Preferred stock, $0.01 par value, 10,000,000 shares authorized at September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock (par value $0.01 per share) Authorized - 90,000,000 shares at September 30, 2023 and December 31, 2022 ; Issued - 6,154,164 at September 30, 2023 and 6,236,168 at December 31, 2022 (includes 162,690 and 211,349 unvested shares, respectively) Outstanding - 6,124,646 at September 30, 2023 and 6,206,105 at December 31, 2022 (includes 162,690 and 211,349 unvested shares, respectively) | 62 | 62 |
Additional paid-in capital | 49,907 | 49,931 |
Unallocated common stock of Employee Stock Ownership Plan (ESOP), 439,037 and 453,792 shares at September 30, 2023 and December 31, 2022, respectively | (4,167) | (4,307) |
Less treasury stock at cost, 29,518 shares at September 30, 2023 and 30,063 shares at December 31, 2022 | (295) | (301) |
Retained earnings | 36,175 | 41,468 |
Accumulated other comprehensive (loss) income, net of income taxes | (11,523) | (11,491) |
Total stockholders' equity | 70,159 | 75,362 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 554,576 | $ 543,016 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Preferred stock par or stated value per share | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 90,000,000 | 90,000,000 |
Common Stock, Shares, Issued | 6,154,164 | 6,236,168 |
Common Stock, Shares, Outstanding | 6,124,646 | 6,206,105 |
Unallocated common stock of Employee Stock Ownership Plan | 439,037 | 453,792 |
Treasury stock | 29,518 | 30,063 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 162,690 | 211,349 |
Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 211,349 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 162,690 | |
Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 211,349 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 162,690 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Interest and dividend income: | |||||
Loans, including fees | $ 4,423 | $ 3,563 | $ 12,487 | $ 9,862 | |
Securities, taxable | 656 | 613 | 1,847 | 1,727 | |
Other | 292 | 139 | 767 | 279 | |
Total interest and dividend income | 5,371 | 4,315 | 15,101 | 11,868 | |
Interest expense: | |||||
Interest-bearing deposits | 1,832 | 196 | 4,111 | 551 | |
Borrowed funds | 586 | 200 | 1,733 | 550 | |
Other interest-bearing funds | 1 | 2 | 4 | 7 | |
Total interest expense | 2,419 | 398 | 5,848 | 1,108 | |
Net interest income | 2,952 | 3,917 | 9,253 | 10,760 | |
Provision for credit losses | 75 | 0 | 225 | 210 | |
Net interest income after provision for credit losses | 2,877 | 3,917 | 9,028 | 10,550 | |
Noninterest income: | |||||
Service charges and other fees | 235 | 229 | 699 | 722 | |
Loan servicing, net | 172 | 167 | 502 | 515 | |
Net gain on sale of loans | 73 | 83 | 141 | 266 | |
Net (loss) on sale of securities | (1,925) | (1,925) | |||
Increase in cash surrender value of insurance | 107 | 108 | 324 | 317 | |
Unrealized gain (loss) on marketable equity securities | (158) | (159) | 287 | (892) | |
Other | 113 | 51 | 278 | 58 | |
Total noninterest income | (1,383) | 479 | 306 | 986 | |
Noninterest expense: | |||||
Salaries and employee benefits | 2,264 | 2,687 | 7,792 | 7,738 | |
Unrealized gain (loss) on marketable equity securities | (158) | (159) | 287 | (892) | |
Advertising and promotions | 54 | 33 | 124 | 146 | |
Data processing | 225 | 221 | 672 | 630 | |
Occupancy and equipment | 285 | 326 | 922 | 1,010 | |
FDIC assessment | 61 | 36 | 182 | 99 | |
Other | 979 | 1,107 | 2,864 | 3,149 | |
Total noninterest expense | 3,710 | 4,251 | 12,843 | 11,880 | |
(Loss) income before income taxes | (2,216) | 145 | (3,509) | (344) | |
Income tax expense (benefit) | 1,425 | 21 | 1,001 | (172) | |
Net (loss) income | $ (3,641) | $ 124 | $ (4,510) | $ (172) | |
Loss per share: | |||||
Basic | $ (0.66) | $ 0.02 | $ (0.81) | $ (0.03) | |
Diluted | [1],[2] | $ (0.66) | $ 0.02 | $ (0.81) | $ (0.03) |
Average common shares outstanding: | |||||
Basic | 5,534,711 | 5,810,185 | 5,538,509 | 5,842,184 | |
Diluted | [2] | 5,534,711 | 5,983,241 | 5,538,509 | 5,842,184 |
[1] For the three and nine months ended September 30, 2023 and the nine months ended September 30, 2022 , the effect of stock options was anti-dilutive due to the net loss and therefore no dilutive shares are included in the weighted average shares outstanding or diluted loss calculations. Diluted loss per share and average shares outstanding excludes all common shares if their effect is anti-dilutive. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (3,641) | $ 124 | $ (4,510) | $ (172) |
Other comprehensive (loss) income: | ||||
Unrealized holding (losses) arising during the period on available-for-sale securities | (2,357) | (4,549) | (1,969) | (16,483) |
Net realized losses on available-for-sale securities included in income | 1,925 | 1,925 | ||
Other comprehensive (loss) before tax effect | (432) | (4,549) | (44) | (16,483) |
Tax effect of other comprehensive (loss) income items | 116 | 1,228 | 12 | 4,451 |
Other comprehensive (loss), net of tax | (316) | (3,321) | (32) | (12,032) |
Comprehensive (loss) | $ (3,957) | $ (3,197) | $ (4,542) | $ (12,204) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Unallocated common stock of ESOP | Treasury Stock | Retained earnings | Accumulated other comprehensive income (loss) |
Balance at Dec. 31, 2021 | $ 90,893 | $ 64 | $ 52,805 | $ (3,432) | $ (301) | $ 41,615 | $ 142 |
Net income (loss) | (172) | (172) | |||||
Other comprehensive (loss) | (12,033) | (12,033) | |||||
Reimbursement of stock offering costs | 2 | 2 | |||||
Purchase of shares by ESOP | (1,062) | (1,062) | |||||
ESOP shares committed to be released | 151 | 11 | 140 | ||||
Repurchase and retirement of shares-stock repurchase program | (1,995) | (1) | (1,994) | ||||
Purchase and retirement of common stock | (81) | (81) | |||||
Stock compensation expense | 200 | 200 | |||||
Balance at Sep. 30, 2022 | 75,903 | 63 | 50,943 | (4,354) | (301) | 41,443 | (11,891) |
Balance at Jun. 30, 2022 | 80,966 | 64 | 52,855 | (4,401) | (301) | 41,319 | (8,570) |
Net income (loss) | 124 | 124 | |||||
Other comprehensive (loss) | (3,321) | (3,321) | |||||
ESOP shares committed to be released | 49 | 2 | 47 | ||||
Repurchase and cancellation of common stock-stock repurchase program | (1,995) | (1) | (1,994) | ||||
Stock compensation expense | 80 | 80 | |||||
Balance at Sep. 30, 2022 | 75,903 | 63 | 50,943 | (4,354) | (301) | 41,443 | (11,891) |
Balance at Dec. 31, 2022 | 75,362 | 62 | 49,931 | (4,307) | (301) | 41,468 | (11,491) |
Balance (ASU 2016-13) at Dec. 31, 2022 | $ (783) | (783) | |||||
Accounting Standards Update [Extensible List] | ASU 2016-13 | ||||||
Net income (loss) | $ (4,510) | (4,510) | |||||
Other comprehensive (loss) | (32) | (32) | |||||
ESOP shares committed to be released | 109 | (31) | 140 | ||||
Repurchase and cancellation of common stock-stock repurchase program | (470) | (470) | |||||
Sale of common stock by Rabbi Trust | 6 | 6 | |||||
Purchase and retirement of common stock | (57) | (57) | |||||
Stock options exercised | 19 | 19 | |||||
Stock compensation expense | 515 | 515 | |||||
Balance at Sep. 30, 2023 | 70,159 | 62 | 49,907 | (4,167) | (295) | 36,175 | (11,523) |
Balance at Jun. 30, 2023 | 74,126 | 62 | 49,964 | (4,214) | (295) | 39,816 | (11,207) |
Net income (loss) | (3,641) | (3,641) | |||||
Other comprehensive (loss) | (316) | (316) | |||||
ESOP shares committed to be released | 31 | (16) | 47 | ||||
Repurchase and cancellation of common stock-stock repurchase program | (238) | (238) | |||||
Stock options exercised | 19 | 19 | |||||
Stock compensation expense | 178 | 178 | |||||
Balance at Sep. 30, 2023 | $ 70,159 | $ 62 | $ 49,907 | $ (4,167) | $ (295) | $ 36,175 | $ (11,523) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
ESOP shares committed to be released | 4,973 | 4,892 | 14,755 | 14,757 |
Repurchase and cancellation of common stock-stock repurchase program | 32,107 | 184,270 | 59,410 | |
Purchase of shares by ESOP | 96,446 | |||
Repurchase and retirement of shares-stock repurchase program | 184,270 | |||
Stock options exercised | 3,159 | 3,159 |
Consolidated Statements of Cash
Consolidated Statements of Cash flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (4,510) | $ (172) |
Adjustments to reconcile net loss to net cash from operating activities | ||
Net amortization of investment securities | 54 | 121 |
Depreciation | 373 | 464 |
Provision for credit losses | 225 | 210 |
Gain on sale of other real estate owned | (110) | |
Net change in fair value of marketable equity securities | (287) | 892 |
Net loss on sale of available for sale securities | 1,925 | |
Stock compensation expense | 515 | 200 |
Deferred income tax expense (benefit) | 1,001 | (172) |
Originations of mortgage loans held for sale | (8,948) | (19,006) |
Proceeds from sales of mortgage loans held for sale | 8,804 | 20,416 |
Net gain on sale of mortgage loans held for sale | (141) | (266) |
ESOP compensation | 109 | 151 |
Net change in cash value of life insurance | (324) | (317) |
Changes in operating assets and liabilities: | ||
Net change in mortgage servicing rights | 109 | 146 |
Accrued interest receivable and other assets | 548 | (907) |
Accrued interest payable and other liabilities | 333 | (6) |
Net cash (used in) provided by operating activities | (324) | 1,754 |
Cash flows from investing activities | ||
Proceeds from sales of securities available-for-sale | 19,495 | 0 |
Maturities, prepayments, and calls of available-for-sale securities | 9,747 | 14,561 |
Purchases of available-for-sale securities | (21,413) | (37,139) |
Purchase of marketable equity securities | (81) | (71) |
Net (increase) in loans | (23,501) | (31,486) |
Net (increase) in FHLB stock, net | (1,358) | (174) |
Proceeds from cash value life insurance death benefits | 720 | |
Proceeds from sale of other real estate owned | 699 | |
Distribution of marketable equity securities | 12 | |
Net capital expenditures for premises and equipment | (751) | (162) |
Net cash used in investing activities | (16,431) | (54,471) |
Cash flows from financing activities | ||
Net (decrease) in deposits | (748) | (5,203) |
Net increase in advance payments by borrowers for taxes and insurance | 9,235 | 8,365 |
Proceeds from the issuance of Federal Home Loan Bank advances | 100,500 | 10,000 |
Principal payments on Federal Home Loan Bank advances | (93,465) | (8,491) |
Reimbursement of stock offering costs | 2 | |
Stock options exercised | 19 | |
Repurchase and cancellation of common stock | (470) | (1,995) |
Purchase and retirement of common stock | (57) | |
Purchases of ESOP shares | (1,062) | |
Net cash provided by financing activities | 15,014 | 1,616 |
Net (decrease) in cash and cash equivalents | (1,741) | (51,101) |
Cash and cash equivalents at beginning of period | 28,344 | 66,803 |
Cash and cash equivalents at end of period | 26,603 | 15,702 |
Supplemental cash flow information: | ||
Cash paid during the year for interest | $ 5,039 | 1,075 |
Noncash activities | ||
Loans transferred to held for sale | $ 325 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION 1895 Bancorp of Wisconsin, Inc., a Maryland corporation (the “Company” or “New 1895 Bancorp”) was formed to serve as the stock holding company for PyraMax Bank, FSB (the “Bank”) as part of the mutual-to-stock conversion of 1895 Bancorp of Wisconsin, MHC. Upon completion of the conversion, which occurred on July 14, 2021, 1895 Bancorp of Wisconsin, MHC and 1895 Bancorp of Wisconsin, a federal corporation (“Old 1895 Bancorp”), ceased to exist and New 1895 Bancorp became the successor corporation to Old 1895 Bancorp. The conversion was accomplished by the merger of 1895 Bancorp of Wisconsin, MHC with and into Old 1895 Bancorp followed by the merger of Old 1895 Bancorp with and into New 1895 Bancorp. The shares of New 1895 Bancorp common stock that were offered for sale in connection with the conversion represented the majority ownership interest in Old 1895 Bancorp owned by 1895 Bancorp of Wisconsin, MHC. On July 14, 2021, public stockholders of Old 1895 Bancorp received 1.3163 shares of common stock of New 1895 Bancorp in exchange for each of their shares of Old 1895 Bancorp common stock. The shares of Old 1895 Bancorp common stock owned by 1895 Bancorp of Wisconsin, MHC were canceled at that time. The conversion and offering were completed on July 14, 2021, and New 1895 Bancorp was organized as a fully public stock holding company, with 100 % of the common stock being held by the public. The consolidated financial statements and other financial information contained in these consolidated financial statements are for New 1895 Bancorp. The cost of the reorganization and the issuing of the common stock totaling $ 2.0 million were deferred and deducted from the sales proceeds of the offering. PyraMax Bank is a stock savings bank headquartered in Greenfield, Wisconsin. PyraMax Bank operates as a full-service financial institution, providing a full range of financial services, including the granting of commercial, residential, and consumer loans and acceptance of deposits from individual customers and small businesses in the metropolitan Milwaukee, Wisconsin area. PyraMax Bank is subject to competition from other financial and nonfinancial institutions providing financial products. In addition, PyraMax Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies. The accompanying unaudited interim consolidated financial statements and the notes thereto have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, results of operations, changes in stockholders' equity and cash flows as of and for the periods presented. Certain amounts from prior periods have been reclassified to conform with current period presentation. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the audited annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on March 30, 2023. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and reported amounts of revenues and expenses during the reporting period. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the fair value of investment securities, financial instruments and mortgage servicing rights, and the valuation of deferred income tax assets. Actual results could differ from those estimates. On April 5, 2012, the Jumpstart Our Business Startups Act (the “JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies and define an “emerging growth company.” As an emerging growth company, the Company may delay adoption of new or revised financial accounting standards until such date that the standards are required to be adopted by non-issuer companies. If such standards would not apply to non-issuer companies, no deferral would be applicable. The Company intends to take advantage of the benefits of the extended transition periods allowed under the JOBS Act. Accordingly, the Company’s financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. The effective dates of the recent accounting standards in Note 2 reflect those that relate to non-issuer companies. NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION (continued) Subsequent Events Management has reviewed the Company's operations for potential disclosure or financial statement impacts related to events occurring after September 30, 2023, but prior to the release of the unaudited consolidated financial statements contained in this quarterly report on Form 10-Q were issued. On November 6, 2023 , Richard Hurd and the Boards of Directors of the Company and the Bank agreed that Mr. Hurd would step down as an Executive Vice President of each entity, effective immediately, but remain on the Boards of Directors. The Boards of Directors determined that, as part of this arrangement and in recognition of Mr. Hurd’s long-standing contributions to the Company and the Bank, Mr. Hurd would receive a lump sum payment in the fourth quarter of 2023 in an amount equal to what he otherwise would have received under his employment agreement through the remainder of its term (December 2024), or $ 163,000 . In addition, the employment agreement between the Bank and Mr. Hurd became null and void on November 6, 2023, except for those post-termination obligations contained in Section 11 of the employment agreement. There were no additional subsequent event disclosures or financial statement impacts related to events occurring after September 30, 2023 that warranted adjustment to or disclosure in these unaudited consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES On January 1, 2023, we adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), using the modified retrospective approach, as further described in the section below titled Recently Adopted Accounting Standards . Adoption of the standard resulted in changes to our available-for-sale securities and allowance for credit losses policies, as presented below. Refer to Note 1 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K regarding additional significant accounting policies, including accounting policies in effect prior to the adoption of ASU 2016-13. Credit Losses for Available-for-Sale Debt Securities For available-for-sale ("AFS") debt securities where fair value is less than amortized cost, the security is considered impaired when amounts are deemed uncollectible or when the Company intends, or more likely than not will be required, to sell the AFS debt security before recovery of the amortized cost basis. On a quarterly basis the Company evaluates the AFS debt securities for impairment. Securities that are in an unrealized loss position are reviewed to determine if a securities credit loss exists based on certain quantitative and qualitative factors. The primary factors considered in evaluating whether an impairment exists include: (a) the extent to which the fair value is less than the amortized cost basis, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments, and (d) whether the Company intends to sell the security and whether it is more likely than not that the Company will not be required to sell the security. If a determination is made that an AFS debt security is impaired, the Company will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as a provision for credit losses on securities through an allowance for credit losses. The provision for credit losses on securities will be limited to the difference between the security’s amortized cost basis and fair value. Any future changes may be reversed, limited to the amount previously expensed, in the period they occur. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income, net of tax. Allowance for Credit Losses Under the current expected credit loss (“CECL”) model, the allowance for credit losses ("ACL") on financial assets is a valuation allowance estimated at each balance sheet date in accordance with GAAP that is deducted from the financial assets’ amortized cost basis to present the net amount expected to be collected on the financial assets. The CECL model also applies to certain off-balance sheet credit exposures. The Company estimates the allowance for credit losses on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to write-off accrued interest receivable by reversing interest income at the time of this determination. NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (continued) Therefore, the Company has made a policy election to exclude accrued interest from the amortized cost basis and therefore excludes it from the measurement of the allowance for credit losses. Expected credit losses are reflected in the allowance for credit losses through a charge to provision for credit losses. The Company’s estimate of the allowance for credit losses reflects credit losses currently expected over the remaining contractual life of the assets. When the Company deems all or a portion of a financial asset to be uncollectible, the appropriate amount is written off and the allowance for credit losses is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible. When available information confirms that specific financial assets, or portions thereof, are uncollectible, these amounts are charged off against the allowance for credit losses. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. The Company measures the allowance for credit losses of financial assets on a collective portfolio segment basis when the financial assets share similar risk characteristics. The Company has identified the following portfolio segments of financial assets with similar risk characteristics for measuring expected credit losses: commercial real estate, residential real estate – first mortgage, residential real estate – construction, consumer – home equity and lines of credit and other consumer loans. The Company further segments the commercial loan portfolios by risk rating and the residential and consumer loan portfolios by delinquency. The Company utilizes the weighted average remaining maturity methodology to measure the ACL. This methodology incorporates both quantitative and qualitative information to assess lifetime expected credit losses at the portfolio segment level. The quantitative component includes the calculation of loss rates that are based on historical lookback periods. The Company calculates a loss rate based on historical loan level loss experience for portfolio segments with similar risk characteristics. The historical loss rate is adjusted for select macroeconomic variables that consider both historical trends as well as forecasted trends. The Company measures expected credit losses of these financial assets by applying loss rates to the amortized cost basis of each asset taking into consideration amortization, prepayment and default assumptions. The Company considers qualitative adjustments to expected credit loss estimates for information not already captured in the loss estimation process. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Adjustments will not be made for information that has already been considered and included in the quantitative component. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data, changes in loan composition, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. Collateral Dependent Financial Assets For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the allowance for credit losses is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less estimated costs to sell. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial assets include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to loan credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures through a charge to provision for credit losses for off-balance sheet credit exposures. The allowance for credit losses on off-balance sheet credit exposures is estimated by portfolio segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration management’s assumption of the likelihood that funding will occur, and is included in other liabilities on the Company’s Consolidated Balance Sheets. NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (continued) Recently Adopted Accounting Standards ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) . ASU 2016-13 requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting guidance for troubled debt restructurings by creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, ASU 2022-02 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses . The Company adopted ASU 2016-13 and ASU 2022-02 as of January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures . The adoption of ASU 2016-13 resulted in an initial increase of $ 412,000 to the allowance for credit losses for loans and the establishment of a $ 665,000 allowance for credit losses for unfunded loan commitments. The allowance for credit losses for unfunded loan commitments is included in other liabilities on the Company's Consolidated Balance Sheets. The after-tax cumulative-effect adjustment of $ 783,000 was recorded in retained earnings as of January 1, 2023. |
Available for Sale Securities
Available for Sale Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Available for Sale Securities | NOTE 3 – AVAILABLE-FOR-SALE SECURITIES The amortized costs and fair values of securities available-for-sale were as follows: September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 8,235 $ — $ ( 1,093 ) $ 7,142 Obligations of states and political subdivisions 19,850 — ( 3,939 ) 15,911 Government-sponsored mortgage-backed securities 87,519 — ( 10,704 ) 76,815 Asset-backed securities 3,827 5 ( 25 ) 3,807 Certificates of deposit 995 — ( 29 ) 966 Total $ 120,426 $ 5 $ ( 15,790 ) $ 104,641 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 29,597 $ — $ ( 2,970 ) $ 26,627 Obligations of states and political subdivisions 21,379 6 ( 3,729 ) 17,656 Government-sponsored mortgage-backed securities 73,235 $ — ( 8,968 ) 64,267 Asset-backed securities 4,563 $ — ( 46 ) 4,517 Certificates of deposit 1,459 $ — ( 34 ) 1,425 Total $ 130,233 $ 6 $ ( 15,747 ) $ 114,492 The fair value of available-for-sale securities that were pledged as collateral at September 30, 2023 and December 31, 2022 , were $ 7.8 million and $ 3.6 million, respectively. The amortized costs and fair values of available-for-sale securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, expected maturities will differ from contractual maturities for mortgage-backed securities and asset-backed securities, as the expected repayment terms may be less than the underlying mortgage pool contractual maturities. Therefore, these securities are not included in the maturity categories in the maturity summary below. September 30, 2023 Amortized Cost Fair Value (in thousands) Debt and other securities: Due in one year or less $ 1,080 $ 1,064 Due after one through 5 years 8,229 7,312 Due after 5 through 10 years 16,657 13,352 Due after 10 years 3,114 2,291 Total debt and other securities 29,080 24,019 Mortgage-related securities 87,519 76,815 Asset-backed securities 3,827 3,807 Total $ 120,426 $ 104,641 NOTE 3 – AVAILABLE-FOR-SALE SECURITIES (continued) Gross unrealized losses on securities available-for-sale and the fair values of the related securities, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position were as follows: September 30, 2023 Less than 12 months 12 months or longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (in thousands) U.S. Treasury notes $ — $ — $ 7,142 $ ( 1,093 ) $ 7,142 $ ( 1,093 ) Obligations of states and political 339 ( 1 ) 15,572 ( 3,938 ) 15,911 ( 3,939 ) Government-sponsored mortgage-backed 20,958 ( 279 ) 55,857 ( 10,425 ) 76,815 ( 10,704 ) Asset-backed securities — — 1,928 ( 25 ) 1,928 ( 25 ) Certificates of deposit — — 966 ( 29 ) 966 ( 29 ) Total $ 21,297 $ ( 280 ) $ 81,465 $ ( 15,510 ) $ 102,762 $ ( 15,790 ) December 31, 2022 Less than 12 months 12 months or longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (in thousands) U.S. Treasury notes $ — $ — $ 26,627 $ ( 2,970 ) $ 26,627 $ ( 2,970 ) Obligations of states and political 5,088 ( 396 ) 12,145 ( 3,333 ) 17,233 ( 3,729 ) Government-sponsored mortgage-backed 19,084 ( 1,310 ) 45,183 ( 7,658 ) 64,267 ( 8,968 ) Asset-backed securities 4,517 ( 46 ) — — 4,517 ( 46 ) Certificates of deposit 1,425 ( 34 ) — — 1,425 ( 34 ) Total $ 30,114 $ ( 1,786 ) $ 83,955 $ ( 13,961 ) $ 114,069 $ ( 15,747 ) At September 30, 2023 and December 31, 2022 , respectively, the Company had 81 and 92 debt securities with unrealized losses representing aggregate depreciation of approximately 13.3 % and 12.1 %, respectively, from their respective amortized cost basis. These unrealized losses relate principally to changes in interest rates and were not caused by changes in the financial condition of the issuers, the quality of any underlying assets or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other-than-temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer and the quality of any underlying assets or credit enhancements. As management has the intent and ability to hold these debt securities to projected recovery, none of these declines are deemed to be other-than-temporary. On August 29, 2023, the Company executed the sale of $ 21.4 million in U.S. Treasury available-for-sale securities for a pre-tax loss of $ 1.9 million. Proceeds from the sale were used to purchase approximately $ 21.4 million of U.S. government sponsored mortgage-backed securities, which were classified as available-for-sale upon purchase. The following is a summary of the proceeds from sales of securities available-for-sale, as well as gross gains and losses, for each of the periods listed below: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Proceeds from sales of securities available-for-sale $ 19,495 $ — $ 19,495 $ — Gross realized gains $ — $ — $ — $ — Gross realized losses ( 1,925 ) — ( 1,925 ) — Net realized loss $ ( 1,925 ) $ — $ ( 1,925 ) $ — |
Loans
Loans | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans | NOTE 4 – LOANS Major classifications of loans, reported at amortized cost, are summarized as follows: September 30, December 31, (in thousands) Commercial: Real estate $ 221,653 $ 210,858 Land development — — Other 45,682 43,708 Residential real estate: First mortgage 95,361 85,444 Construction 2,707 3,248 Consumer: Home equity and lines of credit 19,897 18,590 Other 165 99 Subtotal (1) 385,465 361,947 Net deferred loan costs 831 830 Allowance for credit losses for loans ( 3,614 ) ( 3,203 ) Loans, net $ 382,682 $ 359,574 (1) Totals do not include accrued interest receivable, which was $ 987,000 and $ 874,000 at September 30, 2023 and December 31, 2022 , respectively, which is recorded separately on the Company’s Consolidated Balance Sheets. Deposit accounts in an overdrawn position and reclassified as loans totaled $ 25,000 and $ 98,000 at September 30, 2023 and December 31, 2022, respectively. The Company provides several types of loans to its customers, including commercial, residential, construction and consumer loans. Significant loan concentrations are considered to exist for a financial institution when there are amounts loaned to one borrower or to multiple borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. While the Company’s credit risks are geographically concentrated within the metropolitan Milwaukee, Wisconsin area, there are no concentrations with individual borrowers or groups of related borrowers. The Company also purchases loan participations from other financial institutions. The outstanding balance of loans purchased are included in the totals above and totaled $ 39.4 million as of September 30, 2023 and $ 31.6 million as of December 31, 2022 . In addition, the amount available for future draws totaled $ 57.5 million at September 30, 2023. Loans purchased are primarily comprised of commercial real estate and other commercial loans. During the normal course of business, the Company may transfer a portion of a loan as a participation loan to another financial institution in order to manage portfolio risk. In order to be eligible for sales treatment, all cash flows from the loan must be divided proportionately, and rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties, and no loan holder can have the right to pledge or exchange the entire loan. As of September 30, 2023 and December 31, 2022, respectively, the Company had transferred $ 29.8 million and $ 30.3 million in participation loans which were eligible for sales treatment to other financial institutions, all of which continue to be serviced by the Company. NOTE 4 – LOANS (continued) A summary of activity in the allowance for credit losses for loans and the allowance for credit losses for unfunded loan commitments for the three and nine months ended September 30, 2023 and in the allowance for loan losses for the three and nine months ended September 30, 2022, is presented below: Commercial Residential Consumer Total (in thousands) Three months ended September 30, 2023 Allowance for credit losses for loans Beginning balance $ 2,632 $ 831 $ 180 $ 3,643 Provision for credit losses ( 26 ) ( 8 ) ( 2 ) ( 36 ) Loans charged-off — — ( 1 ) ( 1 ) Recoveries 4 — 4 8 Ending balance $ 2,610 $ 823 $ 181 $ 3,614 Allowance for credit losses for unfunded loan commitments (2) Beginning balance $ 771 $ 27 $ — $ 798 Provision for credit losses 132 ( 21 ) — 111 Loans charged-off — — — — Recoveries — — — — Ending balance $ 903 $ 6 $ — $ 909 Total Allowance for credit losses for loans and unfunded loan commitments $ 3,513 $ 829 $ 181 $ 4,523 Three months ended September 30, 2022 Allowance for loan losses Beginning balance $ 1,924 $ 745 $ 463 $ 3,132 Provision for loan losses — — — — Loans charged-off — — ( 1 ) ( 1 ) Recoveries 4 — 45 49 Ending balance $ 1,928 $ 745 $ 507 $ 3,180 NOTE 4 – LOANS (continued) Commercial Residential Consumer Total (in thousands) Nine months ended September 30, 2023 Allowance for credit losses for loans Beginning balance $ 1,944 $ 752 $ 507 $ 3,203 Provision for credit losses ( 14 ) ( 4 ) ( 1 ) ( 19 ) CECL Adoption Adjustment (1) 666 75 ( 329 ) $ 412 Loans charged-off — — ( 8 ) ( 8 ) Recoveries 14 — 12 26 Ending balance $ 2,610 $ 823 $ 181 $ 3,614 Allowance for credit losses for unfunded loan commitments (2) Beginning balance $ — $ — $ — $ — Provision for credit losses 263 ( 19 ) — 244 CECL Adoption Adjustment (1) 640 25 — $ 665 Loans charged-off — — — — Recoveries — — — — Ending balance $ 903 $ 6 $ — $ 909 Total Allowance for credit losses for loans and unfunded loan commitments $ 3,513 $ 829 $ 181 $ 4,523 Nine months ended September 30, 2022 Allowance for loan losses Beginning balance $ 1,657 $ 745 $ 456 $ 2,858 Provision for loan losses 210 — — 210 Loans charged-off — — ( 5 ) ( 5 ) Recoveries 61 — 56 117 Ending balance $ 1,928 $ 745 $ 507 $ 3,180 (1) On January 1, 2023, the Company adopted ASU 2016-13 ("CECL"). See Note 2 for additional information regarding the adoption of ASU 2016-13. (2) The allowance for credit losses for unfunded loan commitments is included in other liabilities on the Company's Consolidated Balance Sheets. NOTE 4 – LOANS (continued) The provision for credit losses is determined by the Company as the amount that is to be added to the ACL accounts to bring the ACL to a level that, in management's judgment, is necessary to absorb expected credit losses over the lives of the respective financial instruments. The following table presents the components of the provision for credit losses: Three months ended September 30, 2023 2022 (in thousands) Provision for credit losses for: Loans $ ( 36 ) $ — Unfunded loan commitments 111 N/A Total $ 75 $ — Nine months ended September 30, 2023 2022 (in thousands) Provision for credit losses for: Loans $ ( 19 ) $ 210 Unfunded loan commitments 244 N/A Total $ 225 $ 210 The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for credit losses. The credit quality indicators monitored differ depending on the class of loan. The credit quality indicators for commercial real estate and other commercial loans are based on the following ratings: • Pass ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable. • Watch and Special Mention ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable. • Substandard ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable. • Doubtful ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is unlikely. Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing or in nonaccrual status. Refer to Note 1 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K, filed with the SEC on March 30, 2023, for additional information on our nonaccrual policy. NOTE 4 – LOANS (continued) The following table presents the amortized cost basis of our loans by credit quality indicator and origination year, at September 30, 2023: September 30, 2023 2023 2022 2021 2020 2019 2018 and Prior Revolving Lines of Credit Revolving Lines of Credit Converted to Term Loans Total Loans (in thousands) Commercial real estate: Pass $ 15,107 $ 72,575 $ 40,954 $ 41,305 $ 10,238 $ 34,911 $ 22 $ - $ 215,112 Watch and special mention - 233 - - 452 238 - - 923 Substandard - 3,286 604 - 291 1,437 - - 5,618 Total commercial real estate 15,107 76,094 41,558 41,305 10,981 36,586 22 - 221,653 Other commercial loans: Pass 14,082 13,563 5,740 1,231 138 1,684 5,586 - 42,024 Watch and special mention - - 227 184 29 56 1,868 - 2,364 Substandard - 252 445 - - 130 467 - 1,294 Total other commercial loans 14,082 13,815 6,412 1,415 167 1,870 7,921 - 45,682 Total commercial loans 29,189 89,909 47,970 42,720 11,148 38,456 7,943 - 267,335 Residential real estate - first mortgage: Performing 12,817 13,917 31,957 16,012 3,058 16,930 - - 94,691 Nonaccrual - - - - - 670 - - 670 Total residential real estate - first mortgage 12,817 13,917 31,957 16,012 3,058 17,600 - - 95,361 Residential real estate - construction: Performing 298 736 1,673 - - - - - 2,707 Nonaccrual - - - - - - - - - Total residential real estate - construction 298 736 1,673 - - - - - 2,707 Total residential real estate 13,115 14,653 33,630 16,012 3,058 17,600 - - 98,068 Consumer - home equity and lines of credit: Performing 19 59 147 113 172 1,306 17,249 801 19,866 Nonaccrual - - - - - 31 - - 31 Total consumer - home equity and lines of credit 19 59 147 113 172 1,337 17,249 801 19,897 Consumer - other Performing 106 49 - 8 2 - - - 165 Nonaccrual - - - - - - - - - Total consumer - other 106 49 - 8 2 - - - 165 Total consumer 125 108 147 121 174 1,337 17,249 801 20,062 Total loans $ 42,429 $ 104,670 $ 81,747 $ 58,853 $ 14,380 $ 57,393 $ 25,192 $ 801 $ 385,465 NOTE 4 – LOANS (continued) A summary of the credit quality indicators, at amortized cost, prior to the adoption of CECL is presented below: December 31, 2022 Pass Watch and Special Mention Substandard Total (in thousands) Commercial: Real estate $ 206,655 $ 2,932 $ 1,271 $ 210,858 Land development — — — — Other 41,569 35 2,104 43,708 Total $ 248,224 $ 2,967 $ 3,375 $ 254,566 There were no commercial loans rated Doubtful or Loss as of December 31, 2022. December 31, 2022 Performing Non-Performing Total (in thousands) Residential real estate: First mortgage $ 84,730 $ 714 $ 85,444 Construction 3,248 — 3,248 Consumer: Home equity and lines of credit 18,535 55 18,590 Other 99 — 99 Total $ 106,612 $ 769 $ 107,381 The following tables present gross charge-offs of our loans for each portfolio class, by origination year, that occurred during the three and nine months ended September 30, 2023. Refer to Note 1 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for additional information on our charge-off policy. For the three months ended September 30, 2023 2023 2022 2021 2020 2019 2018 and Prior Revolving Lines of Credit Revolving Lines of Credit Converted to Term Loans Total Loans (in thousands) Commercial: Real estate $ - $ - $ - $ - $ - $ - $ - $ - $ - Land development - - - - - - - - - Other - - - - - - - - - Total commercial loans - - - - - - - - - Residential real estate: First mortgage - - - - - - - - - Construction - - - - - - - - - Total residential real estate - - - - - - - - - Consumer: Home equity and lines of credit - - - - - - - - - Other 1 - - - - - - - 1 Total consumer 1 - - - - - - - 1 Total current period charge-offs $ 1 $ - $ - $ - $ - $ - $ - $ - $ 1 NOTE 4 – LOANS (continued) For the nine months ended September 30, 2023 2023 2022 2021 2020 2019 2018 and Prior Revolving Lines of Credit Revolving Lines of Credit Converted to Term Loans Total Loans (in thousands) Commercial: Real estate $ - $ - $ - $ - $ - $ - $ - $ - $ - Land development - - - - - - - - - Other - - - - - - - - - Total commercial loans - - - - - - - - - Residential real estate: First mortgage - - - - - - - - - Construction - - - - - - - - - Total residential real estate - - - - - - - - - Consumer: Home equity and lines of credit - - - - - - - - - Other 1 3 1 1 - 2 - - 8 Total consumer 1 3 1 1 - 2 - - 8 Total current period charge-offs $ 1 $ 3 $ 1 $ 1 $ - $ 2 $ - $ - $ 8 NOTE 4 – LOANS (continued) An analysis of past due loans, net of amortized costs, is presented below: September 30, 2023 Loans Past Due 30-89 Days Loans Past Due 90+ Days Total Past Due Current Loans Total Loans (in thousands) Commercial: Real estate $ — $ — $ — $ 221,653 $ 221,653 Land development — — — — — Other — — — 45,682 45,682 Residential real estate: First mortgage — 55 55 95,306 95,361 Construction — — — 2,707 2,707 Consumer: Home equity and lines of credit — — — 19,897 19,897 Other — — — 165 165 Total — 55 $ 55 $ 385,410 $ 385,465 December 31, 2022 Loans Past Due 30-89 Days Loans Past Due 90+ Days Total Past Due Current Loans Total Loans (in thousands) Commercial: Real estate $ 1,732 $ — $ 1,732 $ 209,126 $ 210,858 Land development — — — — — Other — — — 43,708 43,708 Residential real estate: First mortgage 181 63 244 85,200 85,444 Construction — — — 3,248 3,248 Consumer: Home equity and lines of credit 72 21 93 18,497 18,590 Other 2 — 2 97 99 Total $ 1,987 $ 84 $ 2,071 $ 359,876 $ 361,947 There were no loans 90 days or more past due and accruing interest a s of September 30, 2023 or December 31, 2022, respectively. NOTE 4 – LOANS (continued) The following table presents the amortized cost of our loans on nonaccrual status as of September 30, 2023 and December 31, 2022. All loans that were 90 days or more past due were on nonaccrual status as of September 30, 2023 and December 31, 2022. September 30, December 31, (in thousands) Commercial: Real estate $ — $ — Land development — — Other — — Residential real estate: First mortgage 670 714 Construction — — Consumer: Home equity and lines of credit 31 55 Other — — Total nonaccrual loans $ 701 $ 769 Total nonaccrual loans to total loans 0.18 % 0.21 % Total nonaccrual loans to total assets 0.13 % 0.14 % The Company had $ 701,000 of loans that were in nonaccrual status as of September 30, 2023, with no related allowance for credit losses. During the nine months ended September 30, 2023 , there was no interest earned on nonaccrual loans and no accrued interest was reversed on nonaccrual loans. At September 30, 2023, the Company held loans that were individually evaluated for impairment due to financial difficulties experienced by the borrower and for which the repayment, on the basis of our assessment, is expected to be provided substantially through the sale or operation of the collateral. The ACL for these collateral dependent loans is primarily based on the fair value of the underlying collateral at the reporting date. The following describes the type of collateral that secure collateral dependent loans: • Commercial real estate loans are primarily secured by office and industrial buildings and warehouses. • Commercial and industrial loans are primarily secured by accounts receivable, inventory and equipment. • One-to-four-family mortgages are primarily secured by first liens on residential real estate. • Home equity loans are primarily secured by first and junior loans on residential real estate. The table below summarizes collateral dependent loans and the related ACL at September 30, 2023 for which the borrower is experiencing financial difficulty: Loans ACL (in thousands) Commercial: Real estate $ 5,800 $ — Land development — — Other 1,293 — Residential real estate: First mortgage 870 — Construction — — Consumer: Home equity and lines of credit 31 — Other — — Total $ 7,994 — NOTE 4 – LOANS (continued) A summary of the allowance for loan losses for loans evaluated individually and collectively for impairment, at amortized cost, prior to the adoption of CECL is presented below: December 31, 2022 Commercial Residential Consumer Total (in thousands) Loans: Individually evaluated for impairment $ 3,525 $ 917 $ 55 $ 4,497 Collectively evaluated for impairment 251,041 87,775 18,634 357,450 Total loans $ 254,566 $ 88,692 $ 18,689 $ 361,947 Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment 1,944 752 507 3,203 Total allowance for loan losses $ 1,944 $ 752 $ 507 $ 3,203 NOTE 4 – LOANS (continued) Information regarding impaired loans, at amortized cost, prior to the adoption of CECL is presented below: As of and for the Year Ended December 31, 2022 Recorded Investment Unpaid Principal Reserve Average Investment Interest Recognized (in thousands) Impaired loans with reserve: Commercial: Real estate $ — $ — $ — $ — $ — Land development — — — — — Other — — — — — Residential real estate: First mortgage — — — — — Construction — — — — — Consumer: Home equity and lines of credit — — — — — Other — — — — — Total impaired loans $ — $ — $ — $ — $ — Impaired loans with no reserve: Commercial: Real estate $ 1,422 $ 1,470 NA $ 3,952 $ 177 Land development — — NA — — Other 2,103 2,103 NA 1,325 110 Residential real estate: First mortgage 917 1,138 NA 1,011 55 Construction — — NA — — Consumer: Home equity and lines of credit 55 60 NA 37 2 Other — — NA — — Total impaired loans 4,497 4,771 NA 6,325 344 Total impaired loans $ 4,497 $ 4,771 $ — $ 6,325 $ 344 The adoption of ASU 2022-02 eliminated troubled debt restructurings (TDR's) recognition and measurement guidance, as well as all TDR related disclosures. Refer to Note 2 for additional information. TDRs were loan modifications where concessions were granted to borrowers experiencing financial difficulties. The Company did not modify any loans for borrowers that are experiencing financial difficulty and did not have any previous modifications that were made during the past 12 months that experienced a payment default during the three and nine months ended September 30, 2023. At December 31, 2022, the Company had $ 538,000 of TDR's, of which $ 183,000 was on nonaccrual status. There were no loan modifications that were classified as a TDR during the year ended December 31, 2022. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | NOTE 5 – MORTGAGE SERVICING RIGHTS Loans serviced for others are not included in the Company’s consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others was $ 287.3 million and $ 304.3 million as of September 30, 2023 and December 31, 2022, respectively. A summary of activity in the Company’s mortgage servicing rights is presented below: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (in thousands) (in thousands) Mortgage servicing rights beginning balance $ 1,777 $ 1,939 $ 1,860 $ 2,036 Additions 19 10 36 57 Amortization ( 45 ) ( 59 ) ( 145 ) ( 203 ) Mortgage servicing rights ending balance $ 1,751 $ 1,890 $ 1,751 $ 1,890 Fair value at beginning of period $ 3,317 $ 3,273 $ 3,376 $ 2,477 Fair value at end of period $ 3,347 $ 3,335 $ 3,347 $ 3,335 The estimated fair value of mortgage servicing rights was determined using a valuation model that calculates the present value of expected future servicing and ancillary income, net of expected servicing costs. The model incorporates various assumptions such as discount rates, prepayment speeds and ancillary income and servicing costs. As of September 30, 2023 , the model used discount rates ranging from 10.1 % to 13.0 %, and prepayment speeds ranging from 6.9 % to 36.7 %, both of which were based on market data from independent organizations. As of September 30, 2022 the model used discount rates ranging from 9.5 % to 13.0 %, and prepayment speeds ranging from 7.7 % to 38.2 %. The following table summarizes the estimated future amortization expense for mortgage servicing rights for the annual periods indicated. The projections of amortization expense are based on existing asset balances as of September 30, 2023. The actual amortization expense the Company recognizes in any given period may vary significantly depending on changes in interest rates, market conditions and regulatory requirements. Estimated future amortization as of September 30, 2023: (in thousands) 2023 $ 53 2024 203 2025 186 2026 181 2027 146 Thereafter 982 Total $ 1,751 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Deposits [Abstract] | |
Deposits | NOTE 6 – DEPOSITS The composition of deposits is summarized below: September 30, December 31, 2022 (in thousands) Non-interest bearing checking $ 72,410 $ 92,465 Interest bearing checking 29,837 32,514 Money market 86,747 121,215 Statement savings 48,779 61,969 Certificates of deposit 149,200 79,558 Total $ 386,973 $ 387,721 Certificates of deposit that met or exceeded the FDIC insurance limit of $ 250,000 totaled $ 29.9 million and $ 8.9 million as of September 30, 2023 and December 31, 2022 , respectively. The Company did no t hold any brokered deposits as of September 30, 2023 or December 31, 2022. As of September 30, 2023, the scheduled maturities of certificates of deposit for the annual periods are presented below: (in thousands) 2023 $ 33,186 2024 95,170 2025 8,418 2026 12,061 2027 298 Thereafter 67 Total $ 149,200 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 9 Months Ended |
Sep. 30, 2023 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | NOTE 7 – FEDERAL HOME LOAN BANK ADVANCES A summary of Federal Home Loan Bank advances follows: September 30, 2023 December 31, 2022 Rate Amount Rate Amount (dollars in thousands) Fixed rate, fixed term advance, maturing Feb 2023 — — 1.62 % 6,500 Fixed rate, fixed term advance, maturing July 2027 2.90 % 5,000 2.90 % 5,000 Putable advance, maturing July 2029, first option date January 2023 — — 1.68 % 5,000 Putable advance, maturing February 2030, first option date February 2023 — — 0.98 % 5,000 Putable advance, maturing October 2029, first put option date July 2023 — — 2.96 % 5,000 Putable advance, maturing February 2028, first option date November 2023 3.82 % 5,000 — — Putable advance, maturing May 2028, first option date November 2023 3.16 % 5,000 — — Putable advance, maturing January 2028, first option date January 2024 3.44 % 5,000 — — Putable advance, maturing February 2028, first option date February 2024 3.63 % 5,000 — — Putable advance, maturing March 2028, first option date March 2024 3.47 % 5,000 — — Putable advance, maturing May 2026, first option date May 2024 3.92 % 2,500 — — Putable advance, maturing May 2028, first option date May 2024 3.51 % 2,500 — — Putable advance, maturing Mar 2030, first put option date March 2025 0.89 % 10,000 0.89 % 10,000 Putable advance, maturing Mar 2032, first put option date March 2027 1.74 % 10,000 1.74 % 10,000 Advance structured note, payments due monthly, maturing April 2030 1.05 % 6,701 1.05 % 7,435 Advance structured note, payments due monthly, maturing May 2030 1.19 % 6,798 1.19 % 7,529 SOFR Floater advance, maturing October 2023 5.56 % 5,000 4.54 % 5,000 SOFR Floater advance, maturing October 2024 5.61 % 5,000 4.59 % 5,000 Total $ 78,499 $ 71,464 The scheduled maturities and required principal payments of Federal Home Loan Bank advances are presented below: September 30, 2023 Weighted Average Rate Amount (dollars in thousands) 2023 5.16 % $ 5,491 2024 4.34 % 6,980 2025 1.12 % 2,002 2026 2.67 % 4,524 2027 2.38 % 7,047 Thereafter 2.44 % 52,455 Total 2.78 % $ 78,499 Actual maturities may differ from scheduled maturities due to call options on various FHLB advances. The Company maintains a master contract agreement with the FHLB, which provides for borrowing up to the lesser of 22.22 times the value of the FHLB stock owned, a determined percentage of the book value of the Company’s qualifying real estate loans, or a determined percentage of the Company’s assets. The FHLB provides both fixed and floating rate advances. Floating rates are tied to short-term market rates of interest such as the Secured Overnight Financing Rate ("SOFR"), federal funds or Treasury bill rates. FHLB advances are subject to a prepayment penalty if they are repaid prior to maturity. The Company has pledged qualifying real estate and commercial and industrial loans with collateral values of approximately $ 170.7 million at September 30, 2023 and $ 172.4 million at December 31, 2022 . FHLB advances were also secured by approximately $ 4.8 million and $ 3.4 million of FHLB stock held by the Company as of September 30, 2023 and December 31, 2022 , respectively. The Company’s available and unused portion of this borrowing agreement totaled $ 91.1 million and $ 100.0 million as of September 30, 2023 and December 31, 2022, respectively. Additional borrowing would require additional stock purchase. Additionally, at September 30, 2023 we had a $ 12.0 million federal funds rate line of credit with the BMO Harris Bank, none of which was drawn at September 30, 2023 . The Company also had an $ 9.5 million line of credit at the Federal Reserve based on pledged commercial real estate loans of approximately $ 12.7 million at September 30, 2023 . The Company had no t drawn on the Federal Reserve line as of September 30, 2023. The Company also has the ability to participate in the Federal Reserve's new Bank Term Funding Program as needed. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8 – INCOME TAXES Income tax expense (benefit) was $ 1.4 million and $ 21 ,000 for the three months ended September 30, 2023 and 2022 and $ 1.0 million and ($ 172 ,000) for the nine months ended September 30, 2023 and 2022, respectively. On July 5, 2023, the Wisconsin legislature enacted 2023 Wisconsin Act 19 (the "Act"). The Act contains a provision that provides financial institutions with a state tax-exemption for interest, fees and penalties earned on qualifying loans. For the exemption to apply, the loan must be $ 5 million or less, for primarily a business or agricultural purpose, and made to borrowers residing or located in Wisconsin. The exemption first applies to taxable years beginning after December 31, 2022, and applies to loans on the books as of January 1, 2023 and to new loans made after January 1, 2023, that meet the qualifications. The Company currently projects that its Wisconsin state taxable income will be significantly reduced and/or eliminated in the future as a result of this provision. Also a result of this provision, the Company reversed $ 98 ,000 in income tax benefits which had been recorded during the first two quarters of 2023 and increased the valuation allowance for deferred tax assets by $ 1.8 million, resulting in a one-time $ 1.9 million increase in tax expense in the third quarter of 2023. Deferred tax assets are deferred tax consequences attributable to deductible temporary differences and carryforwards. After the deferred tax asset has been measured using the applicable enacted tax rate and provisions of the enacted tax law, it is then necessary to assess the need for a valuation allowance. A valuation allowance is needed when, based on the weight of the available evidence, it is more likely than not that some portion of the deferred asset will not be realized. As required by generally accepted accounting principles, available evidence is weighted heavily on cumulative losses, with less weight placed on future projected profitability. The realization of deferred tax assets is dependent on the existence of taxable income of the appropriate character (e.g., ordinary or capital) within the carry-back and carry-forward periods available under tax law, which would consider future reversals of existing taxable temporary differences and available tax planning strategies. As of September 30, 2023, and December 31, 2022, the deferred tax valuation allowance w as $3 .3 million and $ 934 ,000, respectively, reducing our net deferred tax assets to $ 7.6 million and $ 8.3 million at each respective date. The increase in the valuation allowance was primarily due to the $ 1.8 million increase as a result of the Act and $ 592 ,000 in tax benefits generated during the nine months ended September 30, 2023, which are not expected to be realized. The board and management continue to assess the deferred tax assets in light of recent changes in market conditions, forecasted future projected income and available tax planning strategies. As such, there may be additional deferred tax asset impairment in subsequent periods. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 – COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company may be involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the Company’s financial statements. No material legal proceedings existed at September 30, 2023. In the normal course of business, the Company is party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These instruments include commitments to extend credit and commitments to sell loans. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the balance sheets. The Company’s exposure to credit losses is represented by the contractual, or notional, amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. As some of the commitments are expected to expire without being drawn upon, and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements of the Company. ASU 2016-13 requires that we establish an allowance for credit losses for off-balance sheet credit exposures, including unfunded loan commitments, that meet certain requirements. The allowance for credit losses for off-balance sheet credit exposures is estimated by portfolio segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, also taking into consideration management’s assumption of the likelihood that funding will occur. The allowance for credit losses for off-balance sheet credit exposures is included in other liabilities on the Company’s Consolidated Balance Sheets. Additional provisions for expected losses occur through a charge to the provision for credit losses. The adoption of the ASU 2016-13 resulted in the establishment of a $ 665,000 allowance for credit losses for unfunded loan commitments, based on $ 41.1 million in outstanding loan commitments that are expected to fund. At September 30, 2023 , the allowance for credit losses for unfunded commitments was $ 909,000 and there was $ 55.2 million in outstanding commitments to extend credit that were expected to fund. The contractual amounts of off-balance-sheet credit-related financial instruments are summarized below: September 30, 2023 Fixed Rate Variable Rate Total (in thousands) Commitments to extend credit $ 1,474 $ 96,768 $ 98,242 Standby letters of credit — 150 150 Credit enhancement under the FHLB of Chicago Mortgage Partnership Finance Program 1,027 — 1,027 Commitments to sell loans 1,220 — 1,220 Overdraft protection program commitments 3,789 — 3,789 December 31, 2022 Fixed Rate Variable Rate Total (in thousands) Commitments to extend credit $ 3,391 $ 80,631 $ 84,022 Standby letters of credit — 150 150 Credit enhancement under the FHLB of Chicago Mortgage Partnership Finance Program 894 — 894 Commitments to sell loans 1,292 — 1,292 Overdraft protection program commitments 3,881 — 3,881 NOTE 9 – COMMITMENTS AND CONTINGENCIES (continued) Commitments to extend credit are agreements to lend to a customer at fixed or variable rates, as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable; inventory; property, plant and equipment; real estate; and stocks and bonds. Commitments to sell loans represent commitments obtained by the Company from a secondary market agency to purchase mortgages from the Company at specified interest rates and within specified periods of time. Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit have expiration dates within one year. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting these commitments. Standby letters of credit are not reflected in the financial statements, since recording the fair value of these guarantees would not have a significant impact on the financial statements. The Company participates in the Federal Home Loan Bank of Chicago Mortgage Partnership Finance Program (the “Program”). In addition to entering into forward commitments to sell mortgage loans to a secondary market agency, the Company enters into firm commitments to deliver loans to the Federal Home Loan Bank of Chicago through the Program. Under the Program, loans are funded by the Federal Home Loan Bank of Chicago, and the Company receives an agency fee reported as a component of gain on sale of loans. The Company had $ 1 million in outstanding commitments to deliver loans through the Program as of September 30, 2023. Once delivered to the Program, the Company provides a contractually agreed-upon credit enhancement and performs servicing of the loans. Under the credit enhancement, the Company is liable for losses on loans delivered through the Program after application of any mortgage insurance and a contractually agreed-upon credit enhancement provided by the Program, subject to an agreed-upon maximum. The Company receives a fee for this credit enhancement. The Company records a liability for expected losses in excess of anticipated credit enhancement fees. As of September 30, 2023, and December 31, 2022 , the Company had no liability outstanding related to the Program. Unfunded commitments under overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit may or may not require collateral and may or may not contain a specific maturity date. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Stock Ownership Plan | NOTE 10 – EMPLOYEE STOCK OWNERSHIP PLAN The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees, in conjunction with our 2019 reorganization. Eligible employees become 20 % vested in their accounts after 1 year of service, 40 % vested after 2 years of service, 60 % vested after 3 years of service, 80 % vested after 4 years of service, and 100 % vested after 5 or more years of service, or earlier, upon death, disability or attainment of normal retirement age. On January 8, 2019, the ESOP purchased 175,528 shares ( 231,047 shares adjusted for the 2021 conversion) of the Company’s common stock, which was funded by a loan from Old 1895 Bancorp. Unreleased ESOP shares collateralize the loan payable, and the cost of the shares is recorded as contra-equity account in the stockholders’ equity of the Company. Shares are to be released as debt payments are made by the ESOP to the loan. The ESOP’s sources of repayment of the loan can include dividends, if any, on the unallocated stock held by the ESOP, and discretionary contributions from the Company to the ESOP and earnings thereon. As part of the mutual-to-stock conversion and stock offering completed on July 14, 2021, the ESOP refinanced the aforementioned loan with New 1895 Bancorp, enabling the ESOP to purchase an aggregate of 283,360 additional shares of common stock. The ESOP completed the purchase of all the additional 283,360 shares at an average price of $ 10.90 in the second quarter of 2022. Compensation expense for the ESOP is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholders’ equity in the consolidated balance sheet. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to stockholders’ equity. The Company recognized $ 31,000 and $ 49,000 in compensation expense for the three months ended September 30, 2023 and September 30, 2022 , respectively, and $ 109,000 and $ 151,000 in compensation expense for the nine months ended September 30, 2023 and 2022, respectively. The following table provides the allocated and unallocated shares of common stock associated with the ESOP. September 30, December 31, (dollars in thousands) Shares committed to be released 14,755 19,730 Total allocated shares 55,900 36,170 Total unallocated shares 439,037 453,792 Total ESOP shares 509,692 509,692 Fair value of unallocated shares (based on $ 7.05 and $ 10.00 share $ 3,095 $ 4,538 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 11 – RELATED PARTY TRANSACTIONS A summary of loans to directors, executive officers, and their affiliates follows: September 30, December 31, 2022 (in thousands) Beginning balance $ 1,015 $ 932 Adjustments due to changes in directors, executive officers, and/or principal ( 167 ) — New loans 217 169 Repayments ( 51 ) ( 86 ) Ending balance $ 1,014 $ 1,015 Deposits from directors, executive officers, and their affiliates totaled $ 681,000 and $ 583,000 at September 30, 2023 and December 31, 2022, respectively. The Company utilizes the services of law firms in which certain of the Company’s directors are partners. Fees paid to the firms for these services were immaterial for the three and nine months ended September 30, 2023 and 2022 , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 12 – FAIR VALUE MEASUREMENTS ASC Topic 820, Fair Value Measurements and Disclosures defines fair values, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This accounting standard applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. The standard also emphasizes that fair value (i.e., the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date), among other things, is based on exit price versus entry price, should include assumptions about risk such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. When considering the assumptions that market participants would use in pricing an asset or liability, this accounting standard establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The fair value hierarchy prioritizes inputs used to measure fair value into three broad levels: Level 1 inputs – In general, fair values determined by Level 1 inputs use quoted market prices in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs – Fair values determined by Level 2 inputs use inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets where there are few transactions and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs – Level 3 inputs are unobservable inputs for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Some assets and liabilities, such as securities available-for-sale, are measured at fair value on a recurring basis under GAAP. Other assets and liabilities, such as collateral dependent loans, may be measured at fair value on a nonrecurring basis. NOTE 12 – FAIR VALUE MEASUREMENTS (continued) Following is a description of the Company’s valuation methodology and significant inputs used for each asset and liability measured at fair value on a recurring or nonrecurring basis. Securities – Marketable equity securities and securities available-for-sale may be classified as Level 1 or Level 2 measurements within the fair value hierarchy. Level 1 securities include equity securities traded on a national exchange. The fair value measurements of Level 1 securities are based on the quoted market price of those securities. Level 2 securities include U.S. Treasury notes, U.S. government and agency securities, obligations of states and political subdivisions, corporate debt securities and mortgage-related securities. The fair value measurements of Level 2 securities are obtained from independent pricing services and are based on recent sales of similar securities and other observable market data. Collateral dependent loans – The Company does not record loans at fair value on a recurring basis. However, individually evaluated loans are reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Independent appraisals are obtained to determine the fair values of underlying collateral, and generally utilize one or more valuation methodologies, which typically include comparable sales and income approaches. Management routinely evaluates the fair value measurements of independent appraisers and adjusts those valuations based on differences noted between actual selling prices of collateral and the most recently appraised value. Such adjustments are usually significant, which results in a Level 3 classification. Rate lock commitments – Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in other assets or liabilities, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on fees currently charged to enter into similar agreements for fixed-rate commitments and also considers the difference between current levels of interest rates and the committed rates. While there are Level 2 and 3 inputs used in the valuation models, the Company has determined that one or more of the inputs significant in the valuation of both of the mortgage banking derivatives fall within Level 3 of the fair value hierarchy. The change in fair value is recorded through an adjustment to the statement of operations, within mortgage banking income. Mortgage servicing rights – The Company utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of mortgage servicing rights. The model utilizes prepayment assumptions to project cash flows related to the mortgage servicing rights based upon the current interest rate environment, which is then discounted to estimate an expected fair value of the mortgage servicing rights. The model considers characteristics specific to the underlying mortgage portfolio, such as: contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges and costs to service. Given the significance of the unobservable inputs utilized in the estimation process, mortgage servicing rights are classified as Level 3 within the fair value hierarchy. The Company records the mortgage servicing rights at the lower of amortized cost or fair value. Assets measured at fair value on a recurring basis are summarized below, along with the level of the fair value hierarchy of the inputs utilized to determine such fair value. Recurring Fair Value Measurements Using September 30, Level 1 Level 2 Level 3 (in thousands) Marketable equity securities $ 3,286 $ 3,286 $ — $ — Securities available-for-sale: U.S. Treasury notes 7,142 — 7,142 — Obligations of states and political subdivisions 15,911 — 15,911 — Government-sponsored mortgage-backed securities 76,815 — 76,815 — Asset-backed securities 3,807 — 3,807 — Certificates of deposit 966 — 966 — Total $ 107,927 $ 3,286 $ 104,641 $ — NOTE 12 – FAIR VALUE MEASUREMENTS (continued) Recurring Fair Value Measurements Using December 31, Level 1 Level 2 Level 3 (in thousands) Marketable equity securities $ 2,924 $ 2,924 $ — $ — Securities available-for-sale: U.S. Treasury notes 26,627 — 26,627 — Obligations of states and political subdivisions 17,656 — 17,656 — Government-sponsored mortgage-backed securities 64,267 — 64,267 — Asset-backed securities 4,517 — 4,517 — Certificates of deposit 1,425 — 1,425 — Total $ 117,416 $ 2,924 $ 114,492 $ — Individually evaluated collateral dependent loans are measured at fair value on a non-recurring basis. There were no individually evaluated collateral dependent loans with a specific valuation allowance as of September 30, 2023 and December 31, 2022. Mortgage servicing rights are measured at fair value on a non-recurring basis. There was no impairment on mortgage servicing rights as of September 30, 2023 and December 31, 2022. The carrying values and estimated fair values of financial instruments are presented below: September 30, 2023 Carrying Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 26,603 $ 26,603 $ — $ — Available-for-sale securities 104,641 — 104,641 — Marketable equity securities 3,286 3,286 — — Loans held for sale 410 — 410 — Loans, net 382,682 — — 353,717 Rate lock commitments 6 — — 6 Accrued interest receivable 1,349 1,349 — — Federal Home Loan Bank Stock 4,787 — — 4,787 Cash value of life insurance 13,919 — — 13,919 Financial liabilities: Deposits 386,973 237,772 — 147,476 Advance payments by borrowers for taxes and insurance 10,264 10,264 — — Federal Home Loan Bank advances 78,499 — — 74,667 Accrued interest payable 1,099 1,099 — — NOTE 12 – FAIR VALUE MEASUREMENTS (continued) December 31, 2022 Carrying Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 28,344 $ 28,344 $ — $ — Available-for-sale securities 114,492 — 114,492 — Marketable equity securities 2,924 2,924 — — Loans held for sale 125 — 125 — Loans, net 359,574 — — 335,987 Rate lock commitments 6 — — 6 Accrued interest receivable 1,257 1,257 — — Federal Home Loan Bank Stock 3,429 — — 3,429 Cash value of life insurance 14,316 — — 14,316 Financial liabilities: Deposits 387,721 308,162 — 78,418 Advance payments by borrowers for taxes and insurance 1,029 1,029 — — Federal Home Loan Bank advances 71,464 — — 69,633 Accrued interest payable 291 291 — — The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based on quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting the fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts, nor is it recorded as an intangible asset on the balance sheets. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Equity and Regulatory Matters
Equity and Regulatory Matters | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Equity and Regulatory Matters | NOTE 13 – EQUITY AND REGULATORY MATTERS PyraMax Bank is subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated 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 capital amounts and classification are also subject to qualitative judgments by the regulators about their components, risk weightings and other factors. The Company is exempt from consolidated capital requirements as those requirements do not apply to certain small bank holding companies with consolidated assets under $ 3 billion. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1 and Total capital to risk-weighted assets, and of Tier 1 capital to average assets. The Bank met all applicable capital adequacy requirements as of September 30, 2023 and December 31, 2022. As of September 30, 2023, the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum regulatory capital ratios as set forth in the table below. There are no conditions or events since September 30, 2023 that management believes have changed the capital category of the Bank. The Bank’s actual and required capital amounts and ratios are presented below: September 30, 2023 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) PyraMax Bank Leverage (Tier 1) $ 62,191 11.1 % $ 22,440 4.0 % $ 28,051 5.0 % Risk-based: Common Equity Tier 1 62,191 15.0 % 18,624 4.5 % 26,901 6.5 % Tier 1 62,191 15.0 % 24,831 6.0 % 33,104 8.0 % Total 66,714 16.1 % 33,109 8.0 % 41,386 10.0 % December 31, 2022 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) PyraMax Bank Leverage (Tier 1) $ 65,497 11.9 % $ 22,086 4.0 % $ 27,608 5.0 % Risk-based: Common Equity Tier 1 65,497 16.6 % 17,711 4.5 % 25,583 6.5 % Tier 1 65,497 16.6 % 23,615 6.0 % 31,486 8.0 % Total 68,700 17.5 % 31,486 8.0 % 39,358 10.0 % On July 29, 2022, the Company adopted a stock repurchase program. On August 26, 2022, the Company received a non-objection letter from the Federal Reserve Bank of Chicago ("FRB") permitting the Company to repurchase 319,766 shares of its common stock, which represented 5 % of the shares outstanding at the time discussions were held with the FRB. The Company began purchasing shares on September 1, 2022 and as of June 7, 2023, the Company had repurchased all 319,766 shares for a total purchase price of $ 3.4 million. On April 28, 2023, the Company adopted a second stock repurchase program. On June 9, 2023, the Company received a non-objection letter from the FRB permitting the Company to repurchase 621,522 shares of its common stock, which represented 10 % of the shares outstanding at the time discussions were held with the FRB. The Company began purchasing shares on June 15, 2023 and as of September 30, 2023 , the Company had repurchased 36,562 shares for a total purchase price of $ 270,000 . |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | NOTE 14 – EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding, adjusted for weighted average unallocated ESOP shares, during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. Antidilutive options are disregarded in earnings per share calculations. For the three and nine months ended September 30, 2023 , 111,145 and 35,507 shares, respectively were excluded, based on average share price, from the computation of diluted earnings per share ("EPS") because the effect would be antidilutive. For the three and nine months ended September 30, 2022 , zero and 182,457 a verage shares, respectively, were excluded from the computation of diluted EPS because the effect would be antidilutive. Earnings (loss) per common share for the three and nine months ended September 30, 2023 and 2022 are presented in the following tables. Three months ended September 30, 2023 2022 (In thousands, except per share amounts) Net (loss) income $ ( 3,641 ) $ 124 Weighted shares outstanding for basic EPS Weighted average shares outstanding 5,976,208 6,271,370 Less: Weighted average unallocated ESOP shares 441,497 461,185 Weighted average shares outstanding for basic EPS 5,534,711 5,810,185 Additional dilutive shares (1) — 173,056 Weighted average shares outstanding for dilutive EPS 5,534,711 5,983,241 Basic (loss) earnings per share $ ( 0.66 ) $ 0.02 Diluted (loss) earnings per share (1) $ ( 0.66 ) $ 0.02 Nine months ended September 30, 2023 2022 (In thousands, except per share amounts) Net (loss) $ ( 4,510 ) $ ( 172 ) Weighted shares outstanding for basic EPS Weighted average shares outstanding 5,984,897 6,278,914 Less: Weighted average unallocated ESOP shares 446,388 436,730 Weighted average shares outstanding for basic EPS 5,538,509 5,842,184 Additional dilutive shares (1) — — Weighted average shares outstanding for dilutive EPS 5,538,509 5,842,184 Basic (loss) per share $ ( 0.81 ) $ ( 0.03 ) Diluted (loss) per share (1) $ ( 0.81 ) $ ( 0.03 ) (1) For the three and nine months ended September 30, 2023 and the nine months ended September 30, 2022 , the effect of stock options was anti-dilutive due to the net loss and therefore no dilutive shares are included in the weighted average shares outstanding or diluted loss calculations. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | NOTE 15 – STOCK BASED COMPENSATION Stock-Based Compensation Plans On March 27, 2020, the Company’s stockholders approved the 1895 Bancorp of Wisconsin, Inc. 2020 Equity Incentive Plan (the “2020 Equity Incentive Plan”). A total of 238,467 ( 313,894 stock options adjusted for the conversion) stock options and 95,387 ( 125,557 shares adjusted for the conversion) restricted shares were approved for award. As of September 30, 2023, no shares of common stock remained available for grant as stock options, restricted stock or restricted stock units under the 2020 Equity Incentive Plan. The stock options granted to employees and non-employee directors under this plan vest in five installments with the first installment vesting on the first anniversary of the date of grant. The exercise price for all stock options granted is equal to the quoted NASDAQ market close price on the date that the awards were granted and expire ten years after the grant date, if not exercised. The restricted stock awards granted to employees and non-employee directors under this plan vest in five installments with the first installment vesting on the first anniversary of the date of grant. On August 26, 2022, the Company’s shareholders approved the 1895 Bancorp of Wisconsin, Inc. 2022 Equity Incentive Plan (the “2022 Equity Incentive Plan”). A total of 354,200 stock options and 141,680 restricted shares were approved for award. As of September 30, 2023, 44,455 shares of common stock remain available for grant as stock options an d 21,382 shares remain available for grant as restricted stock or stock units under the 2022 Equity Incentive Plan. The stock options granted to employees and non-employee directors under this plan vest in five installments with the first installment vesting on the first anniversary of the date of grant. The exercise price for all stock options granted is equal to the quoted NASDAQ market close price on the date that the awards were granted and expire ten years after the grant date, if not exercised. The restricted stock awards granted to employees and non-employee directors under this plan vest in five installments with the first installment vesting on the first anniversary of the date of grant. Accounting for Stock-Based Compensation Plan The fair value of stock options granted is estimated on the grant date using a Black-Scholes pricing model. The fair value of restricted shares is equal to the quoted NASDAQ market closing price on the date of grant. The fair value of stock grants is recognized as compensation expense on a straight-line basis over the vesting period of the grants. Compensation expense is included in salaries and employee benefits in the consolidated statements of operations. Assumptions are used in estimating the fair value of stock options granted. The weighted average expected life of the stock options represents the period of time that the options are expected to be outstanding and is based on the historical results from the previous awards. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on the actual volatility of 1895 Bancorp of Wisconsin, Inc. stock for the weighted average lifetime period prior to issuance date. The following assumptions were used in estimating the fair value of options granted during the nine months ended September 30, 2023 and September 30, 2022, respectively: For the Nine Months Ended September 30, September 30, Dividend yield 0.00 % 0.00 % Risk-free interest rate 3.59 % 3.13 % Expected volatility 24.64 % 24.64 % Weighted average expected life (years) 6.5 6.5 Weighted average per share value of options $ 3.37 $ 3.25 NOTE 15 – STOCK BASED COMPENSATION (continued) A summary of the Company’s stock option activity for the nine months ended September 30, 2023 is presented below. Stock Options Shares Weighted Average Exercise Price Weighted Average Remaining in Contractual Term (Years) Aggregate Intrinsic Value Outstanding December 31, 2022 656,130 $ 8.27 8.69 $ 1,122,214 Granted 3,000 9.94 6.50 21 Exercised 3,159 5.96 N/A N/A Forfeited 55,861 8.09 N/A N/A Outstanding September 30, 2023 600,110 8.30 7.74 254,168 Options exercisable at September 30, 2023 182,637 6.51 6.13 162,565 The following table summarizes information about the Company’s nonvested stock option activity for the nine months ended September 30, 2023: Stock Options Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2022 543,306 $ 2.82 Granted 3,000 3.37 Vested (1) ( 76,130 ) 1.96 Forfeited ( 52,703 ) 8.09 Nonvested at September 30, 2023 417,473 3.01 (1) Include s 2,106 sh ares vested under a nonqualified stock option inducement award to the Company’s President and Chief Executive Officer. The Company amortizes the expense related to stock options as compensation expense over the vesting period. The Company recognized $ 79,000 and $ 33,000 in stock option expense during the three months ended September 30, 2023 and 2022 , respectively and $ 228,000 and $ 80,000 in stock option expense during the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023, the Company had $ 1.1 million in estimated unrecognized compensation costs related to outstanding stock options that is expected to be recognized over a weighted average period of 3.75 years. The following table summarizes information about the Company’s restricted stock activity for the nine months ended September 30, 2023: Restricted Stock Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2022 211,349 $ 8.71 Granted — — Vested (1)(2) ( 30,274 ) 7.08 Forfeited ( 18,385 ) 8.15 Nonvested at September 30, 2023 162,690 $ 9.08 (1) Includes 263 s hares vested under a restricted stock inducement award to the Company’s President and Chief Executive Officer. (2) Includes 7,368 shares surrendered by employees to cover payroll tax costs related to the vested shares. The Company amortizes the expense related to restricted stock awards as compensation expense over the vesting period. The Company recognized $ 99,000 and $ 47,000 in restricted stock expense during the three months ended September 30, 2023 and 2022 , respectively and recognized $ 287,000 and $ 120,000 in restricted stock expense during the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023 , the Company had $ 1.2 million of unrecognized compensation expense related to restricted stock shares that is expected to be recognized over a weighted average period of 3.7 years. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Credit Losses for Available-for-Sale Debt Securities | Credit Losses for Available-for-Sale Debt Securities For available-for-sale ("AFS") debt securities where fair value is less than amortized cost, the security is considered impaired when amounts are deemed uncollectible or when the Company intends, or more likely than not will be required, to sell the AFS debt security before recovery of the amortized cost basis. On a quarterly basis the Company evaluates the AFS debt securities for impairment. Securities that are in an unrealized loss position are reviewed to determine if a securities credit loss exists based on certain quantitative and qualitative factors. The primary factors considered in evaluating whether an impairment exists include: (a) the extent to which the fair value is less than the amortized cost basis, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments, and (d) whether the Company intends to sell the security and whether it is more likely than not that the Company will not be required to sell the security. If a determination is made that an AFS debt security is impaired, the Company will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as a provision for credit losses on securities through an allowance for credit losses. The provision for credit losses on securities will be limited to the difference between the security’s amortized cost basis and fair value. Any future changes may be reversed, limited to the amount previously expensed, in the period they occur. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income, net of tax. |
Allowance for Credit Losses | Allowance for Credit Losses Under the current expected credit loss (“CECL”) model, the allowance for credit losses ("ACL") on financial assets is a valuation allowance estimated at each balance sheet date in accordance with GAAP that is deducted from the financial assets’ amortized cost basis to present the net amount expected to be collected on the financial assets. The CECL model also applies to certain off-balance sheet credit exposures. The Company estimates the allowance for credit losses on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to write-off accrued interest receivable by reversing interest income at the time of this determination. NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (continued) Therefore, the Company has made a policy election to exclude accrued interest from the amortized cost basis and therefore excludes it from the measurement of the allowance for credit losses. Expected credit losses are reflected in the allowance for credit losses through a charge to provision for credit losses. The Company’s estimate of the allowance for credit losses reflects credit losses currently expected over the remaining contractual life of the assets. When the Company deems all or a portion of a financial asset to be uncollectible, the appropriate amount is written off and the allowance for credit losses is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible. When available information confirms that specific financial assets, or portions thereof, are uncollectible, these amounts are charged off against the allowance for credit losses. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. The Company measures the allowance for credit losses of financial assets on a collective portfolio segment basis when the financial assets share similar risk characteristics. The Company has identified the following portfolio segments of financial assets with similar risk characteristics for measuring expected credit losses: commercial real estate, residential real estate – first mortgage, residential real estate – construction, consumer – home equity and lines of credit and other consumer loans. The Company further segments the commercial loan portfolios by risk rating and the residential and consumer loan portfolios by delinquency. The Company utilizes the weighted average remaining maturity methodology to measure the ACL. This methodology incorporates both quantitative and qualitative information to assess lifetime expected credit losses at the portfolio segment level. The quantitative component includes the calculation of loss rates that are based on historical lookback periods. The Company calculates a loss rate based on historical loan level loss experience for portfolio segments with similar risk characteristics. The historical loss rate is adjusted for select macroeconomic variables that consider both historical trends as well as forecasted trends. The Company measures expected credit losses of these financial assets by applying loss rates to the amortized cost basis of each asset taking into consideration amortization, prepayment and default assumptions. The Company considers qualitative adjustments to expected credit loss estimates for information not already captured in the loss estimation process. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Adjustments will not be made for information that has already been considered and included in the quantitative component. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data, changes in loan composition, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. |
Collateral Dependent Financial Assets | Collateral Dependent Financial Assets For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the allowance for credit losses is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less estimated costs to sell. |
Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial assets include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to loan credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) . ASU 2016-13 requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting guidance for troubled debt restructurings by creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, ASU 2022-02 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses . The Company adopted ASU 2016-13 and ASU 2022-02 as of January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures . The adoption of ASU 2016-13 resulted in an initial increase of $ 412,000 to the allowance for credit losses for loans and the establishment of a $ 665,000 allowance for credit losses for unfunded loan commitments. The allowance for credit losses for unfunded loan commitments is included in other liabilities on the Company's Consolidated Balance Sheets. The after-tax cumulative-effect adjustment of $ 783,000 was recorded in retained earnings as of January 1, 2023. |
Available for Sale Securities (
Available for Sale Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs and Fair Value of Securities Available for Sale | The amortized costs and fair values of securities available-for-sale were as follows: September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 8,235 $ — $ ( 1,093 ) $ 7,142 Obligations of states and political subdivisions 19,850 — ( 3,939 ) 15,911 Government-sponsored mortgage-backed securities 87,519 — ( 10,704 ) 76,815 Asset-backed securities 3,827 5 ( 25 ) 3,807 Certificates of deposit 995 — ( 29 ) 966 Total $ 120,426 $ 5 $ ( 15,790 ) $ 104,641 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 29,597 $ — $ ( 2,970 ) $ 26,627 Obligations of states and political subdivisions 21,379 6 ( 3,729 ) 17,656 Government-sponsored mortgage-backed securities 73,235 $ — ( 8,968 ) 64,267 Asset-backed securities 4,563 $ — ( 46 ) 4,517 Certificates of deposit 1,459 $ — ( 34 ) 1,425 Total $ 130,233 $ 6 $ ( 15,747 ) $ 114,492 |
Summary of Amortized Costs and Fair Values of Securities Available-for-sale, by Contractual Maturity | The amortized costs and fair values of available-for-sale securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, expected maturities will differ from contractual maturities for mortgage-backed securities and asset-backed securities, as the expected repayment terms may be less than the underlying mortgage pool contractual maturities. Therefore, these securities are not included in the maturity categories in the maturity summary below. September 30, 2023 Amortized Cost Fair Value (in thousands) Debt and other securities: Due in one year or less $ 1,080 $ 1,064 Due after one through 5 years 8,229 7,312 Due after 5 through 10 years 16,657 13,352 Due after 10 years 3,114 2,291 Total debt and other securities 29,080 24,019 Mortgage-related securities 87,519 76,815 Asset-backed securities 3,827 3,807 Total $ 120,426 $ 104,641 |
Summary of Gross Unrealized Losses on Securities Available-for-sale and Fair Values | Gross unrealized losses on securities available-for-sale and the fair values of the related securities, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position were as follows: September 30, 2023 Less than 12 months 12 months or longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (in thousands) U.S. Treasury notes $ — $ — $ 7,142 $ ( 1,093 ) $ 7,142 $ ( 1,093 ) Obligations of states and political 339 ( 1 ) 15,572 ( 3,938 ) 15,911 ( 3,939 ) Government-sponsored mortgage-backed 20,958 ( 279 ) 55,857 ( 10,425 ) 76,815 ( 10,704 ) Asset-backed securities — — 1,928 ( 25 ) 1,928 ( 25 ) Certificates of deposit — — 966 ( 29 ) 966 ( 29 ) Total $ 21,297 $ ( 280 ) $ 81,465 $ ( 15,510 ) $ 102,762 $ ( 15,790 ) December 31, 2022 Less than 12 months 12 months or longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (in thousands) U.S. Treasury notes $ — $ — $ 26,627 $ ( 2,970 ) $ 26,627 $ ( 2,970 ) Obligations of states and political 5,088 ( 396 ) 12,145 ( 3,333 ) 17,233 ( 3,729 ) Government-sponsored mortgage-backed 19,084 ( 1,310 ) 45,183 ( 7,658 ) 64,267 ( 8,968 ) Asset-backed securities 4,517 ( 46 ) — — 4,517 ( 46 ) Certificates of deposit 1,425 ( 34 ) — — 1,425 ( 34 ) Total $ 30,114 $ ( 1,786 ) $ 83,955 $ ( 13,961 ) $ 114,069 $ ( 15,747 ) |
Summary of Proceeds from Sales of Securities Available-for-sale, as well as Gross Gains and Losses | The following is a summary of the proceeds from sales of securities available-for-sale, as well as gross gains and losses, for each of the periods listed below: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Proceeds from sales of securities available-for-sale $ 19,495 $ — $ 19,495 $ — Gross realized gains $ — $ — $ — $ — Gross realized losses ( 1,925 ) — ( 1,925 ) — Net realized loss $ ( 1,925 ) $ — $ ( 1,925 ) $ — |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Summary of Major Classifications of Loans | Major classifications of loans, reported at amortized cost, are summarized as follows: September 30, December 31, (in thousands) Commercial: Real estate $ 221,653 $ 210,858 Land development — — Other 45,682 43,708 Residential real estate: First mortgage 95,361 85,444 Construction 2,707 3,248 Consumer: Home equity and lines of credit 19,897 18,590 Other 165 99 Subtotal (1) 385,465 361,947 Net deferred loan costs 831 830 Allowance for credit losses for loans ( 3,614 ) ( 3,203 ) Loans, net $ 382,682 $ 359,574 (1) Totals do not include accrued interest receivable, which was $ 987,000 and $ 874,000 at September 30, 2023 and December 31, 2022 , respectively, which is recorded separately on the Company’s Consolidated Balance Sheets. |
Summary of Activity in Allowance for Loan and Lease Losses and Allowance for Credit Losses for Unfunded Loan Commitments | A summary of activity in the allowance for credit losses for loans and the allowance for credit losses for unfunded loan commitments for the three and nine months ended September 30, 2023 and in the allowance for loan losses for the three and nine months ended September 30, 2022, is presented below: Commercial Residential Consumer Total (in thousands) Three months ended September 30, 2023 Allowance for credit losses for loans Beginning balance $ 2,632 $ 831 $ 180 $ 3,643 Provision for credit losses ( 26 ) ( 8 ) ( 2 ) ( 36 ) Loans charged-off — — ( 1 ) ( 1 ) Recoveries 4 — 4 8 Ending balance $ 2,610 $ 823 $ 181 $ 3,614 Allowance for credit losses for unfunded loan commitments (2) Beginning balance $ 771 $ 27 $ — $ 798 Provision for credit losses 132 ( 21 ) — 111 Loans charged-off — — — — Recoveries — — — — Ending balance $ 903 $ 6 $ — $ 909 Total Allowance for credit losses for loans and unfunded loan commitments $ 3,513 $ 829 $ 181 $ 4,523 Three months ended September 30, 2022 Allowance for loan losses Beginning balance $ 1,924 $ 745 $ 463 $ 3,132 Provision for loan losses — — — — Loans charged-off — — ( 1 ) ( 1 ) Recoveries 4 — 45 49 Ending balance $ 1,928 $ 745 $ 507 $ 3,180 NOTE 4 – LOANS (continued) Commercial Residential Consumer Total (in thousands) Nine months ended September 30, 2023 Allowance for credit losses for loans Beginning balance $ 1,944 $ 752 $ 507 $ 3,203 Provision for credit losses ( 14 ) ( 4 ) ( 1 ) ( 19 ) CECL Adoption Adjustment (1) 666 75 ( 329 ) $ 412 Loans charged-off — — ( 8 ) ( 8 ) Recoveries 14 — 12 26 Ending balance $ 2,610 $ 823 $ 181 $ 3,614 Allowance for credit losses for unfunded loan commitments (2) Beginning balance $ — $ — $ — $ — Provision for credit losses 263 ( 19 ) — 244 CECL Adoption Adjustment (1) 640 25 — $ 665 Loans charged-off — — — — Recoveries — — — — Ending balance $ 903 $ 6 $ — $ 909 Total Allowance for credit losses for loans and unfunded loan commitments $ 3,513 $ 829 $ 181 $ 4,523 Nine months ended September 30, 2022 Allowance for loan losses Beginning balance $ 1,657 $ 745 $ 456 $ 2,858 Provision for loan losses 210 — — 210 Loans charged-off — — ( 5 ) ( 5 ) Recoveries 61 — 56 117 Ending balance $ 1,928 $ 745 $ 507 $ 3,180 (1) On January 1, 2023, the Company adopted ASU 2016-13 ("CECL"). See Note 2 for additional information regarding the adoption of ASU 2016-13. (2) The allowance for credit losses for unfunded loan commitments is included in other liabilities on the Company's Consolidated Balance Sheets. The following table presents the components of the provision for credit losses: Three months ended September 30, 2023 2022 (in thousands) Provision for credit losses for: Loans $ ( 36 ) $ — Unfunded loan commitments 111 N/A Total $ 75 $ — Nine months ended September 30, 2023 2022 (in thousands) Provision for credit losses for: Loans $ ( 19 ) $ 210 Unfunded loan commitments 244 N/A Total $ 225 $ 210 |
Summary of Amortized Cost Basis of Loans By Credit Quality Indicator and Origination Year | The following table presents the amortized cost basis of our loans by credit quality indicator and origination year, at September 30, 2023: September 30, 2023 2023 2022 2021 2020 2019 2018 and Prior Revolving Lines of Credit Revolving Lines of Credit Converted to Term Loans Total Loans (in thousands) Commercial real estate: Pass $ 15,107 $ 72,575 $ 40,954 $ 41,305 $ 10,238 $ 34,911 $ 22 $ - $ 215,112 Watch and special mention - 233 - - 452 238 - - 923 Substandard - 3,286 604 - 291 1,437 - - 5,618 Total commercial real estate 15,107 76,094 41,558 41,305 10,981 36,586 22 - 221,653 Other commercial loans: Pass 14,082 13,563 5,740 1,231 138 1,684 5,586 - 42,024 Watch and special mention - - 227 184 29 56 1,868 - 2,364 Substandard - 252 445 - - 130 467 - 1,294 Total other commercial loans 14,082 13,815 6,412 1,415 167 1,870 7,921 - 45,682 Total commercial loans 29,189 89,909 47,970 42,720 11,148 38,456 7,943 - 267,335 Residential real estate - first mortgage: Performing 12,817 13,917 31,957 16,012 3,058 16,930 - - 94,691 Nonaccrual - - - - - 670 - - 670 Total residential real estate - first mortgage 12,817 13,917 31,957 16,012 3,058 17,600 - - 95,361 Residential real estate - construction: Performing 298 736 1,673 - - - - - 2,707 Nonaccrual - - - - - - - - - Total residential real estate - construction 298 736 1,673 - - - - - 2,707 Total residential real estate 13,115 14,653 33,630 16,012 3,058 17,600 - - 98,068 Consumer - home equity and lines of credit: Performing 19 59 147 113 172 1,306 17,249 801 19,866 Nonaccrual - - - - - 31 - - 31 Total consumer - home equity and lines of credit 19 59 147 113 172 1,337 17,249 801 19,897 Consumer - other Performing 106 49 - 8 2 - - - 165 Nonaccrual - - - - - - - - - Total consumer - other 106 49 - 8 2 - - - 165 Total consumer 125 108 147 121 174 1,337 17,249 801 20,062 Total loans $ 42,429 $ 104,670 $ 81,747 $ 58,853 $ 14,380 $ 57,393 $ 25,192 $ 801 $ 385,465 |
Summary of Internal Risk Ratings of Loans | A summary of the credit quality indicators, at amortized cost, prior to the adoption of CECL is presented below: December 31, 2022 Pass Watch and Special Mention Substandard Total (in thousands) Commercial: Real estate $ 206,655 $ 2,932 $ 1,271 $ 210,858 Land development — — — — Other 41,569 35 2,104 43,708 Total $ 248,224 $ 2,967 $ 3,375 $ 254,566 |
Summary of Information Regarding the Credit Quality Indicators for Residential Real Estate and Consumer Loans | December 31, 2022 Performing Non-Performing Total (in thousands) Residential real estate: First mortgage $ 84,730 $ 714 $ 85,444 Construction 3,248 — 3,248 Consumer: Home equity and lines of credit 18,535 55 18,590 Other 99 — 99 Total $ 106,612 $ 769 $ 107,381 |
Summary of Gross Charge-offs of Loans for Portfolio Class By Origination Year | The following tables present gross charge-offs of our loans for each portfolio class, by origination year, that occurred during the three and nine months ended September 30, 2023. Refer to Note 1 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for additional information on our charge-off policy. For the three months ended September 30, 2023 2023 2022 2021 2020 2019 2018 and Prior Revolving Lines of Credit Revolving Lines of Credit Converted to Term Loans Total Loans (in thousands) Commercial: Real estate $ - $ - $ - $ - $ - $ - $ - $ - $ - Land development - - - - - - - - - Other - - - - - - - - - Total commercial loans - - - - - - - - - Residential real estate: First mortgage - - - - - - - - - Construction - - - - - - - - - Total residential real estate - - - - - - - - - Consumer: Home equity and lines of credit - - - - - - - - - Other 1 - - - - - - - 1 Total consumer 1 - - - - - - - 1 Total current period charge-offs $ 1 $ - $ - $ - $ - $ - $ - $ - $ 1 NOTE 4 – LOANS (continued) For the nine months ended September 30, 2023 2023 2022 2021 2020 2019 2018 and Prior Revolving Lines of Credit Revolving Lines of Credit Converted to Term Loans Total Loans (in thousands) Commercial: Real estate $ - $ - $ - $ - $ - $ - $ - $ - $ - Land development - - - - - - - - - Other - - - - - - - - - Total commercial loans - - - - - - - - - Residential real estate: First mortgage - - - - - - - - - Construction - - - - - - - - - Total residential real estate - - - - - - - - - Consumer: Home equity and lines of credit - - - - - - - - - Other 1 3 1 1 - 2 - - 8 Total consumer 1 3 1 1 - 2 - - 8 Total current period charge-offs $ 1 $ 3 $ 1 $ 1 $ - $ 2 $ - $ - $ 8 NOTE 4 – LOANS (continued) |
Schedule of Analysis of Past due Loans | An analysis of past due loans, net of amortized costs, is presented below: September 30, 2023 Loans Past Due 30-89 Days Loans Past Due 90+ Days Total Past Due Current Loans Total Loans (in thousands) Commercial: Real estate $ — $ — $ — $ 221,653 $ 221,653 Land development — — — — — Other — — — 45,682 45,682 Residential real estate: First mortgage — 55 55 95,306 95,361 Construction — — — 2,707 2,707 Consumer: Home equity and lines of credit — — — 19,897 19,897 Other — — — 165 165 Total — 55 $ 55 $ 385,410 $ 385,465 December 31, 2022 Loans Past Due 30-89 Days Loans Past Due 90+ Days Total Past Due Current Loans Total Loans (in thousands) Commercial: Real estate $ 1,732 $ — $ 1,732 $ 209,126 $ 210,858 Land development — — — — — Other — — — 43,708 43,708 Residential real estate: First mortgage 181 63 244 85,200 85,444 Construction — — — 3,248 3,248 Consumer: Home equity and lines of credit 72 21 93 18,497 18,590 Other 2 — 2 97 99 Total $ 1,987 $ 84 $ 2,071 $ 359,876 $ 361,947 |
Summary of Information Regarding Non-accrual Loans | The following table presents the amortized cost of our loans on nonaccrual status as of September 30, 2023 and December 31, 2022. All loans that were 90 days or more past due were on nonaccrual status as of September 30, 2023 and December 31, 2022. September 30, December 31, (in thousands) Commercial: Real estate $ — $ — Land development — — Other — — Residential real estate: First mortgage 670 714 Construction — — Consumer: Home equity and lines of credit 31 55 Other — — Total nonaccrual loans $ 701 $ 769 Total nonaccrual loans to total loans 0.18 % 0.21 % Total nonaccrual loans to total assets 0.13 % 0.14 % |
Summary of Collateral Dependent Loans and Related ACL | The table below summarizes collateral dependent loans and the related ACL at September 30, 2023 for which the borrower is experiencing financial difficulty: Loans ACL (in thousands) Commercial: Real estate $ 5,800 $ — Land development — — Other 1,293 — Residential real estate: First mortgage 870 — Construction — — Consumer: Home equity and lines of credit 31 — Other — — Total $ 7,994 — |
Summary of Allowance for Loan and Lease Losses for Loans Evaluated Individually and Collectively for Impairment | A summary of the allowance for loan losses for loans evaluated individually and collectively for impairment, at amortized cost, prior to the adoption of CECL is presented below: December 31, 2022 Commercial Residential Consumer Total (in thousands) Loans: Individually evaluated for impairment $ 3,525 $ 917 $ 55 $ 4,497 Collectively evaluated for impairment 251,041 87,775 18,634 357,450 Total loans $ 254,566 $ 88,692 $ 18,689 $ 361,947 Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment 1,944 752 507 3,203 Total allowance for loan losses $ 1,944 $ 752 $ 507 $ 3,203 |
Summary of Information Regarding Impaired Loans | Information regarding impaired loans, at amortized cost, prior to the adoption of CECL is presented below: As of and for the Year Ended December 31, 2022 Recorded Investment Unpaid Principal Reserve Average Investment Interest Recognized (in thousands) Impaired loans with reserve: Commercial: Real estate $ — $ — $ — $ — $ — Land development — — — — — Other — — — — — Residential real estate: First mortgage — — — — — Construction — — — — — Consumer: Home equity and lines of credit — — — — — Other — — — — — Total impaired loans $ — $ — $ — $ — $ — Impaired loans with no reserve: Commercial: Real estate $ 1,422 $ 1,470 NA $ 3,952 $ 177 Land development — — NA — — Other 2,103 2,103 NA 1,325 110 Residential real estate: First mortgage 917 1,138 NA 1,011 55 Construction — — NA — — Consumer: Home equity and lines of credit 55 60 NA 37 2 Other — — NA — — Total impaired loans 4,497 4,771 NA 6,325 344 Total impaired loans $ 4,497 $ 4,771 $ — $ 6,325 $ 344 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Activity in Mortgage Servicing Rights | A summary of activity in the Company’s mortgage servicing rights is presented below: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (in thousands) (in thousands) Mortgage servicing rights beginning balance $ 1,777 $ 1,939 $ 1,860 $ 2,036 Additions 19 10 36 57 Amortization ( 45 ) ( 59 ) ( 145 ) ( 203 ) Mortgage servicing rights ending balance $ 1,751 $ 1,890 $ 1,751 $ 1,890 Fair value at beginning of period $ 3,317 $ 3,273 $ 3,376 $ 2,477 Fair value at end of period $ 3,347 $ 3,335 $ 3,347 $ 3,335 |
Summary of Estimated Future Amortization Expense for Mortgage Servicing Rights | The following table summarizes the estimated future amortization expense for mortgage servicing rights for the annual periods indicated. The projections of amortization expense are based on existing asset balances as of September 30, 2023. The actual amortization expense the Company recognizes in any given period may vary significantly depending on changes in interest rates, market conditions and regulatory requirements. Estimated future amortization as of September 30, 2023: (in thousands) 2023 $ 53 2024 203 2025 186 2026 181 2027 146 Thereafter 982 Total $ 1,751 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits [Abstract] | |
Composition of Deposits | The composition of deposits is summarized below: September 30, December 31, 2022 (in thousands) Non-interest bearing checking $ 72,410 $ 92,465 Interest bearing checking 29,837 32,514 Money market 86,747 121,215 Statement savings 48,779 61,969 Certificates of deposit 149,200 79,558 Total $ 386,973 $ 387,721 |
Scheduled Maturities of Certificates of Deposit | As of September 30, 2023, the scheduled maturities of certificates of deposit for the annual periods are presented below: (in thousands) 2023 $ 33,186 2024 95,170 2025 8,418 2026 12,061 2027 298 Thereafter 67 Total $ 149,200 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Federal Home Loan Banks [Abstract] | |
Summary of Federal Home Loan Bank Advances | A summary of Federal Home Loan Bank advances follows: September 30, 2023 December 31, 2022 Rate Amount Rate Amount (dollars in thousands) Fixed rate, fixed term advance, maturing Feb 2023 — — 1.62 % 6,500 Fixed rate, fixed term advance, maturing July 2027 2.90 % 5,000 2.90 % 5,000 Putable advance, maturing July 2029, first option date January 2023 — — 1.68 % 5,000 Putable advance, maturing February 2030, first option date February 2023 — — 0.98 % 5,000 Putable advance, maturing October 2029, first put option date July 2023 — — 2.96 % 5,000 Putable advance, maturing February 2028, first option date November 2023 3.82 % 5,000 — — Putable advance, maturing May 2028, first option date November 2023 3.16 % 5,000 — — Putable advance, maturing January 2028, first option date January 2024 3.44 % 5,000 — — Putable advance, maturing February 2028, first option date February 2024 3.63 % 5,000 — — Putable advance, maturing March 2028, first option date March 2024 3.47 % 5,000 — — Putable advance, maturing May 2026, first option date May 2024 3.92 % 2,500 — — Putable advance, maturing May 2028, first option date May 2024 3.51 % 2,500 — — Putable advance, maturing Mar 2030, first put option date March 2025 0.89 % 10,000 0.89 % 10,000 Putable advance, maturing Mar 2032, first put option date March 2027 1.74 % 10,000 1.74 % 10,000 Advance structured note, payments due monthly, maturing April 2030 1.05 % 6,701 1.05 % 7,435 Advance structured note, payments due monthly, maturing May 2030 1.19 % 6,798 1.19 % 7,529 SOFR Floater advance, maturing October 2023 5.56 % 5,000 4.54 % 5,000 SOFR Floater advance, maturing October 2024 5.61 % 5,000 4.59 % 5,000 Total $ 78,499 $ 71,464 |
Schedule of Maturities of Federal Home Loan Bank Advances | The scheduled maturities and required principal payments of Federal Home Loan Bank advances are presented below: September 30, 2023 Weighted Average Rate Amount (dollars in thousands) 2023 5.16 % $ 5,491 2024 4.34 % 6,980 2025 1.12 % 2,002 2026 2.67 % 4,524 2027 2.38 % 7,047 Thereafter 2.44 % 52,455 Total 2.78 % $ 78,499 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contract Amounts of Credit-related Financial Instruments | The contractual amounts of off-balance-sheet credit-related financial instruments are summarized below: September 30, 2023 Fixed Rate Variable Rate Total (in thousands) Commitments to extend credit $ 1,474 $ 96,768 $ 98,242 Standby letters of credit — 150 150 Credit enhancement under the FHLB of Chicago Mortgage Partnership Finance Program 1,027 — 1,027 Commitments to sell loans 1,220 — 1,220 Overdraft protection program commitments 3,789 — 3,789 December 31, 2022 Fixed Rate Variable Rate Total (in thousands) Commitments to extend credit $ 3,391 $ 80,631 $ 84,022 Standby letters of credit — 150 150 Credit enhancement under the FHLB of Chicago Mortgage Partnership Finance Program 894 — 894 Commitments to sell loans 1,292 — 1,292 Overdraft protection program commitments 3,881 — 3,881 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Stock Ownership Plan (ESOP) Disclosures | The following table provides the allocated and unallocated shares of common stock associated with the ESOP. September 30, December 31, (dollars in thousands) Shares committed to be released 14,755 19,730 Total allocated shares 55,900 36,170 Total unallocated shares 439,037 453,792 Total ESOP shares 509,692 509,692 Fair value of unallocated shares (based on $ 7.05 and $ 10.00 share $ 3,095 $ 4,538 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Summary of Loans to Directors, Executive Officers and Affiliates | A summary of loans to directors, executive officers, and their affiliates follows: September 30, December 31, 2022 (in thousands) Beginning balance $ 1,015 $ 932 Adjustments due to changes in directors, executive officers, and/or principal ( 167 ) — New loans 217 169 Repayments ( 51 ) ( 86 ) Ending balance $ 1,014 $ 1,015 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on a Recurring Basis | Assets measured at fair value on a recurring basis are summarized below, along with the level of the fair value hierarchy of the inputs utilized to determine such fair value. Recurring Fair Value Measurements Using September 30, Level 1 Level 2 Level 3 (in thousands) Marketable equity securities $ 3,286 $ 3,286 $ — $ — Securities available-for-sale: U.S. Treasury notes 7,142 — 7,142 — Obligations of states and political subdivisions 15,911 — 15,911 — Government-sponsored mortgage-backed securities 76,815 — 76,815 — Asset-backed securities 3,807 — 3,807 — Certificates of deposit 966 — 966 — Total $ 107,927 $ 3,286 $ 104,641 $ — Recurring Fair Value Measurements Using December 31, Level 1 Level 2 Level 3 (in thousands) Marketable equity securities $ 2,924 $ 2,924 $ — $ — Securities available-for-sale: U.S. Treasury notes 26,627 — 26,627 — Obligations of states and political subdivisions 17,656 — 17,656 — Government-sponsored mortgage-backed securities 64,267 — 64,267 — Asset-backed securities 4,517 — 4,517 — Certificates of deposit 1,425 — 1,425 — Total $ 117,416 $ 2,924 $ 114,492 $ — |
Summary of Carrying Values and Estimated Fair Values of Financial Instruments | The carrying values and estimated fair values of financial instruments are presented below: September 30, 2023 Carrying Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 26,603 $ 26,603 $ — $ — Available-for-sale securities 104,641 — 104,641 — Marketable equity securities 3,286 3,286 — — Loans held for sale 410 — 410 — Loans, net 382,682 — — 353,717 Rate lock commitments 6 — — 6 Accrued interest receivable 1,349 1,349 — — Federal Home Loan Bank Stock 4,787 — — 4,787 Cash value of life insurance 13,919 — — 13,919 Financial liabilities: Deposits 386,973 237,772 — 147,476 Advance payments by borrowers for taxes and insurance 10,264 10,264 — — Federal Home Loan Bank advances 78,499 — — 74,667 Accrued interest payable 1,099 1,099 — — NOTE 12 – FAIR VALUE MEASUREMENTS (continued) December 31, 2022 Carrying Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 28,344 $ 28,344 $ — $ — Available-for-sale securities 114,492 — 114,492 — Marketable equity securities 2,924 2,924 — — Loans held for sale 125 — 125 — Loans, net 359,574 — — 335,987 Rate lock commitments 6 — — 6 Accrued interest receivable 1,257 1,257 — — Federal Home Loan Bank Stock 3,429 — — 3,429 Cash value of life insurance 14,316 — — 14,316 Financial liabilities: Deposits 387,721 308,162 — 78,418 Advance payments by borrowers for taxes and insurance 1,029 1,029 — — Federal Home Loan Bank advances 71,464 — — 69,633 Accrued interest payable 291 291 — — |
Equity and Regulatory Matters (
Equity and Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Schedule of Banks Actual and Required Capital Amounts and Ratios | The Bank’s actual and required capital amounts and ratios are presented below: September 30, 2023 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) PyraMax Bank Leverage (Tier 1) $ 62,191 11.1 % $ 22,440 4.0 % $ 28,051 5.0 % Risk-based: Common Equity Tier 1 62,191 15.0 % 18,624 4.5 % 26,901 6.5 % Tier 1 62,191 15.0 % 24,831 6.0 % 33,104 8.0 % Total 66,714 16.1 % 33,109 8.0 % 41,386 10.0 % December 31, 2022 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) PyraMax Bank Leverage (Tier 1) $ 65,497 11.9 % $ 22,086 4.0 % $ 27,608 5.0 % Risk-based: Common Equity Tier 1 65,497 16.6 % 17,711 4.5 % 25,583 6.5 % Tier 1 65,497 16.6 % 23,615 6.0 % 31,486 8.0 % Total 68,700 17.5 % 31,486 8.0 % 39,358 10.0 % |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | Earnings (loss) per common share for the three and nine months ended September 30, 2023 and 2022 are presented in the following tables. Three months ended September 30, 2023 2022 (In thousands, except per share amounts) Net (loss) income $ ( 3,641 ) $ 124 Weighted shares outstanding for basic EPS Weighted average shares outstanding 5,976,208 6,271,370 Less: Weighted average unallocated ESOP shares 441,497 461,185 Weighted average shares outstanding for basic EPS 5,534,711 5,810,185 Additional dilutive shares (1) — 173,056 Weighted average shares outstanding for dilutive EPS 5,534,711 5,983,241 Basic (loss) earnings per share $ ( 0.66 ) $ 0.02 Diluted (loss) earnings per share (1) $ ( 0.66 ) $ 0.02 Nine months ended September 30, 2023 2022 (In thousands, except per share amounts) Net (loss) $ ( 4,510 ) $ ( 172 ) Weighted shares outstanding for basic EPS Weighted average shares outstanding 5,984,897 6,278,914 Less: Weighted average unallocated ESOP shares 446,388 436,730 Weighted average shares outstanding for basic EPS 5,538,509 5,842,184 Additional dilutive shares (1) — — Weighted average shares outstanding for dilutive EPS 5,538,509 5,842,184 Basic (loss) per share $ ( 0.81 ) $ ( 0.03 ) Diluted (loss) per share (1) $ ( 0.81 ) $ ( 0.03 ) (1) For the three and nine months ended September 30, 2023 and the nine months ended September 30, 2022 , the effect of stock options was anti-dilutive due to the net loss and therefore no dilutive shares are included in the weighted average shares outstanding or diluted loss calculations. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Assumptions Used in Estimating the Fair Value of Options Granted | The following assumptions were used in estimating the fair value of options granted during the nine months ended September 30, 2023 and September 30, 2022, respectively: For the Nine Months Ended September 30, September 30, Dividend yield 0.00 % 0.00 % Risk-free interest rate 3.59 % 3.13 % Expected volatility 24.64 % 24.64 % Weighted average expected life (years) 6.5 6.5 Weighted average per share value of options $ 3.37 $ 3.25 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the nine months ended September 30, 2023 is presented below. Stock Options Shares Weighted Average Exercise Price Weighted Average Remaining in Contractual Term (Years) Aggregate Intrinsic Value Outstanding December 31, 2022 656,130 $ 8.27 8.69 $ 1,122,214 Granted 3,000 9.94 6.50 21 Exercised 3,159 5.96 N/A N/A Forfeited 55,861 8.09 N/A N/A Outstanding September 30, 2023 600,110 8.30 7.74 254,168 Options exercisable at September 30, 2023 182,637 6.51 6.13 162,565 |
Summary of Nonvested Stock option Activity | The following table summarizes information about the Company’s nonvested stock option activity for the nine months ended September 30, 2023: Stock Options Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2022 543,306 $ 2.82 Granted 3,000 3.37 Vested (1) ( 76,130 ) 1.96 Forfeited ( 52,703 ) 8.09 Nonvested at September 30, 2023 417,473 3.01 |
Summary of Restricted Stock Unit Activity | The following table summarizes information about the Company’s restricted stock activity for the nine months ended September 30, 2023: Restricted Stock Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2022 211,349 $ 8.71 Granted — — Vested (1)(2) ( 30,274 ) 7.08 Forfeited ( 18,385 ) 8.15 Nonvested at September 30, 2023 162,690 $ 9.08 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 06, 2023 | Sep. 30, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||
Common Stock Held By Public | 100% | |
Reorganization Cost And Issuing Of Common Stock Deferred | $ 2,000 | |
Mr. Hurd | ||
Equity, Class of Treasury Stock [Line Items] | ||
Employee termination lump sum payment in fourth quarter of 2023 | $ 163,000 | |
Subsequent Event | Mr. Hurd | ||
Equity, Class of Treasury Stock [Line Items] | ||
Date when employee step down as an executive vice president of each entity | Nov. 06, 2023 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - ASU 2016-13 - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Jan. 01, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2023 | |
Establishment of allowance for credit losses unfunded loan commitment | $ 665,000 | |
Cumulative effect on adjustment of retained earnings after tax | $ 783,000 | |
Minimum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Amount of incrase in credit loss for loans allowance | $ 412,000 |
Available for Sale Securities -
Available for Sale Securities - Summary of Amortized Costs and Fair Value of Securities Available-for-sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Aug. 29, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | |||
Securities Available for Sale, Amortized Cost | $ 120,426 | $ 130,233 | |
Securities Available for Sale, Gross Unrealized Gains | 5 | 6 | |
Securities Available for Sale, Gross Unrealized Losses | (15,790) | (15,747) | |
Available for sale securities | 104,641 | 114,492 | |
U.S. Treasury notes [Member] | |||
Marketable Securities [Line Items] | |||
Securities Available for Sale, Amortized Cost | 8,235 | 29,597 | |
Securities Available for Sale, Gross Unrealized Gains | 0 | 0 | |
Securities Available for Sale, Gross Unrealized Losses | (1,093) | (2,970) | |
Available for sale securities | 7,142 | $ 21,400 | 26,627 |
Obligations of states and political subdivisions [Member] | |||
Marketable Securities [Line Items] | |||
Securities Available for Sale, Amortized Cost | 19,850 | 21,379 | |
Securities Available for Sale, Gross Unrealized Gains | 0 | 6 | |
Securities Available for Sale, Gross Unrealized Losses | (3,939) | (3,729) | |
Available for sale securities | 15,911 | 17,656 | |
Government-sponsored Mortgage-backed Securities [Member] | |||
Marketable Securities [Line Items] | |||
Securities Available for Sale, Amortized Cost | 87,519 | 73,235 | |
Securities Available for Sale, Gross Unrealized Gains | 0 | 0 | |
Securities Available for Sale, Gross Unrealized Losses | (10,704) | (8,968) | |
Available for sale securities | 76,815 | 64,267 | |
Asset-backed securities [Member] | |||
Marketable Securities [Line Items] | |||
Securities Available for Sale, Amortized Cost | 3,827 | 4,563 | |
Securities Available for Sale, Gross Unrealized Gains | 5 | 0 | |
Securities Available for Sale, Gross Unrealized Losses | (25) | (46) | |
Available for sale securities | 3,807 | 4,517 | |
Certificates of deposit [Member] | |||
Marketable Securities [Line Items] | |||
Securities Available for Sale, Amortized Cost | 995 | 1,459 | |
Securities Available for Sale, Gross Unrealized Gains | 0 | 0 | |
Securities Available for Sale, Gross Unrealized Losses | (29) | (34) | |
Available for sale securities | $ 966 | $ 1,425 |
Available for Sale Securities_2
Available for Sale Securities - Summary of Amortized Costs and Fair Values of Securities Available-for-sale, by Contractual Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less | $ 1,064 | |
Due after one through 5 years | 7,312 | |
Due after 5 through 10 years | 13,352 | |
Due after 10 years | 2,291 | |
Total debt and other securities, Fair Value | 24,019 | |
Total | 104,641 | $ 114,492 |
Due in one year or less | 1,080 | |
Due after one through 5 years | 8,229 | |
Due after 5 through 10 years | 16,657 | |
Due after 10 years | 3,114 | |
Total debt and other securities, Amortized Cost | 29,080 | |
Total | 120,426 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt and other securities, Fair Value | 76,815 | |
Total debt and other securities, Amortized Cost | 87,519 | |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt and other securities, Fair Value | 3,807 | |
Total | 3,807 | $ 4,517 |
Total debt and other securities, Amortized Cost | $ 3,827 |
Available for Sale Securities_3
Available for Sale Securities - Summary of Gross Unrealized Losses on Securities Available-for-sale and Fair Values (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 21,297 | $ 30,114 |
Unrealized Loss | (280) | (1,786) |
Fair Value | 81,465 | 83,955 |
Unrealized Loss | (15,510) | (13,961) |
Fair Value | 102,762 | 114,069 |
Unrealized Loss | (15,790) | (15,747) |
U.S. Treasury notes [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 7,142 | 26,627 |
Unrealized Loss | (1,093) | (2,970) |
Fair Value | 7,142 | 26,627 |
Unrealized Loss | (1,093) | (2,970) |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 339 | 5,088 |
Unrealized Loss | (1) | (396) |
Fair Value | 15,572 | 12,145 |
Unrealized Loss | (3,938) | (3,333) |
Fair Value | 15,911 | 17,233 |
Unrealized Loss | (3,939) | (3,729) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 20,958 | 19,084 |
Unrealized Loss | (279) | (1,310) |
Fair Value | 55,857 | 45,183 |
Unrealized Loss | (10,425) | (7,658) |
Fair Value | 76,815 | 64,267 |
Unrealized Loss | (10,704) | (8,968) |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 4,517 |
Unrealized Loss | 0 | (46) |
Fair Value | 1,928 | 0 |
Unrealized Loss | (25) | 0 |
Fair Value | 1,928 | 4,517 |
Unrealized Loss | (25) | (46) |
Certificates of Deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 1,425 |
Unrealized Loss | 0 | (34) |
Fair Value | 966 | 0 |
Unrealized Loss | (29) | 0 |
Fair Value | 966 | 1,425 |
Unrealized Loss | $ (29) | $ (34) |
Available for Sale Securities_4
Available for Sale Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Aug. 29, 2023 USD ($) | Sep. 30, 2023 USD ($) Debtinstrument | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) Debtinstrument | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Debtinstrument | |
Debt Securities, Available-for-Sale [Line Items] | ||||||
Number of debt securities with unrealized losses | Debtinstrument | 81 | 81 | 92 | |||
Percentage of depreciation from amortized cost bases | 13.30% | 12.10% | ||||
Collateral to secure customer deposit accounts | $ 7,800 | $ 7,800 | $ 3,600 | |||
Available for sale securities | 104,641 | 104,641 | 114,492 | |||
Available-for-sale securities pre-tax loss | $ 1,900 | 1,925 | $ 0 | 1,925 | $ 0 | |
Proceeds from sales of available-for-sale securities | 19,495 | $ 0 | 19,495 | $ 0 | ||
U.S. Treasury securities | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Available for sale securities | 21,400 | $ 7,142 | $ 7,142 | $ 26,627 | ||
U.S. Government Sponsored Mortgage-backed Securities | ||||||
Debt Securities, Available-for-Sale [Line Items] | ||||||
Proceeds from sales of available-for-sale securities | $ 21,400 |
Available for Sale Securities_5
Available for Sale Securities - Summary of Proceeds from Sales of Securities Available-for-sale, as well as Gross Gains and Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 29, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Proceeds from sales of securities available-for-sale | $ 19,495 | $ 0 | $ 19,495 | $ 0 | |
Gross realized gains | 0 | 0 | 0 | 0 | |
Gross realized losses | $ (1,900) | (1,925) | 0 | (1,925) | 0 |
Net realized loss | $ (1,925) | $ 0 | $ (1,925) | $ 0 |
Loans - Summary of Major Classi
Loans - Summary of Major Classifications of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans, gross | [1] | $ 385,465 | $ 361,947 | ||||
Net deferred loan costs | 831 | 830 | |||||
Allowance for credit losses for loans | (3,614) | $ (3,643) | (3,203) | $ (3,180) | $ (3,132) | $ (2,858) | |
Total loans, net of deferred loan costs and allowance for credit losses | 382,682 | 359,574 | |||||
Commercial [Member] | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans, gross | 0 | ||||||
Commercial [Member] | Real Estate [Member] | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans, gross | 221,653 | 210,858 | |||||
Commercial [Member] | Land [Member] | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans, gross | 0 | 0 | |||||
Commercial [Member] | Other Commercial Loan [Member] | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans, gross | 45,682 | 43,708 | |||||
Residential Real Estate [Member] | First Mortgage [Member] | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans, gross | 95,361 | 85,444 | |||||
Residential Real Estate [Member] | Construction Loans [Member] | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans, gross | 2,707 | 3,248 | |||||
Consumer [Member] | Other Consumer Loan [Member] | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans, gross | 165 | 99 | |||||
Consumer [Member] | Home Equity Lines Of Credit [Member] | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans, gross | $ 19,897 | $ 18,590 | |||||
[1] Totals do not include accrued interest receivable, which was $ 987,000 and $ 874,000 at September 30, 2023 and December 31, 2022 , respectively, which is recorded separately on the Company’s Consolidated Balance Sheets. |
Loans - Summary of Major Clas_2
Loans - Summary of Major Classifications of Loans (Parenthetical) (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Interest receivable | $ 987,000 | $ 874,000 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | ||
Loans and Leases Receivable Disclosure [Line Items] | |||
Additional Loans Receivable | [1] | $ 385,465,000 | $ 361,947,000 |
Loans modified as troubled debt restructurings | 0 | ||
Overdrawn deposit account reclassified as loan | 25,000 | 98,000 | |
Loans 90 days or more past due and accruing interest | 0 | 0 | |
Nonaccrual Loans | 701,000 | 769,000 | |
Interest earned on nonaccrual loans | 0 | ||
Troubled debt restructurings amount | 538,000 | ||
Troubled debt restructurings nonaccrual amount | 183,000 | ||
Commercial [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Additional Loans Receivable | 0 | ||
Other Financial Institutions [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Participation loans transferred | 29,800,000 | 30,300,000 | |
Outstanding from loans purchased | 39,400,000 | $ 31,600,000 | |
Available future draws | $ 57,500,000 | ||
[1] Totals do not include accrued interest receivable, which was $ 987,000 and $ 874,000 at September 30, 2023 and December 31, 2022 , respectively, which is recorded separately on the Company’s Consolidated Balance Sheets. |
Loans - Summary of Activity in
Loans - Summary of Activity in Allowance for Loan and Lease Losses and Allowance for Credit Losses for Unfunded Loan Commitments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Beginning balance | $ 3,643 | $ 3,132 | $ 3,203 | $ 2,858 | |
Provision for credit losses | 75 | 0 | 225 | 210 | |
CECL Adoption Adjustment | [1] | 412 | |||
Loans charged-off | (1) | (1) | (8) | (5) | |
Recoveries of loans previously charged off | 8 | 49 | 26 | 117 | |
Ending balance | 3,614 | 3,180 | 3,614 | 3,180 | |
Total Allowance for credit losses for loans and unfunded loan commitments | 4,523 | 4,523 | |||
Allowance for Credit Losses for Loans [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Provision for credit losses | (36) | 0 | (19) | 210 | |
Unfunded Loan Commitments [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Beginning balance | [2] | 798 | 0 | ||
Provision for credit losses | [2] | 111 | 244 | ||
CECL Adoption Adjustment | [1],[2] | 665 | |||
Loans charged-off | [2] | 0 | 0 | ||
Recoveries of loans previously charged off | [2] | 0 | 0 | ||
Ending balance | [2] | 909 | 909 | ||
Commercial [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Beginning balance | 2,632 | 1,924 | 1,944 | 1,657 | |
Provision for credit losses | 0 | 210 | |||
CECL Adoption Adjustment | [1] | 666 | |||
Loans charged-off | 0 | 0 | 0 | 0 | |
Recoveries of loans previously charged off | 4 | 4 | 14 | 61 | |
Ending balance | 2,610 | 1,928 | 2,610 | 1,928 | |
Total Allowance for credit losses for loans and unfunded loan commitments | 3,513 | 3,513 | |||
Commercial [Member] | Allowance for Credit Losses for Loans [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Provision for credit losses | (26) | (14) | |||
Commercial [Member] | Unfunded Loan Commitments [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Beginning balance | [2] | 771 | 0 | ||
Provision for credit losses | [2] | 132 | 263 | ||
CECL Adoption Adjustment | [1],[2] | 640 | |||
Loans charged-off | [2] | 0 | 0 | ||
Recoveries of loans previously charged off | [2] | 0 | 0 | ||
Ending balance | [2] | 903 | 903 | ||
Residential [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Beginning balance | 831 | 745 | 752 | 745 | |
Provision for credit losses | 0 | 0 | |||
CECL Adoption Adjustment | [1] | 75 | |||
Loans charged-off | 0 | 0 | 0 | 0 | |
Recoveries of loans previously charged off | 0 | 0 | 0 | 0 | |
Ending balance | 823 | 745 | 823 | 745 | |
Total Allowance for credit losses for loans and unfunded loan commitments | 829 | 829 | |||
Residential [Member] | Allowance for Credit Losses for Loans [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Provision for credit losses | (8) | (4) | |||
Residential [Member] | Unfunded Loan Commitments [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Beginning balance | [2] | 27 | 0 | ||
Provision for credit losses | [2] | (21) | (19) | ||
CECL Adoption Adjustment | [1],[2] | 25 | |||
Loans charged-off | [2] | 0 | 0 | ||
Recoveries of loans previously charged off | [2] | 0 | 0 | ||
Ending balance | [2] | 6 | 6 | ||
Consumer [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Beginning balance | 180 | 463 | 507 | 456 | |
Provision for credit losses | 0 | 0 | |||
CECL Adoption Adjustment | [1] | (329) | |||
Loans charged-off | (1) | (1) | (8) | (5) | |
Recoveries of loans previously charged off | 4 | 45 | 12 | 56 | |
Ending balance | 181 | $ 507 | 181 | $ 507 | |
Total Allowance for credit losses for loans and unfunded loan commitments | 181 | 181 | |||
Consumer [Member] | Allowance for Credit Losses for Loans [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Provision for credit losses | (2) | (1) | |||
Consumer [Member] | Unfunded Loan Commitments [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Beginning balance | [2] | 0 | 0 | ||
Provision for credit losses | [2] | 0 | 0 | ||
CECL Adoption Adjustment | [1],[2] | 0 | |||
Loans charged-off | [2] | 0 | 0 | ||
Recoveries of loans previously charged off | [2] | 0 | 0 | ||
Ending balance | [2] | $ 0 | $ 0 | ||
[1] On January 1, 2023, the Company adopted ASU 2016-13 ("CECL"). See Note 2 for additional information regarding the adoption of ASU 2016-13. The allowance for credit losses for unfunded loan commitments is included in other liabilities on the Company's Consolidated Balance Sheets. |
Loans - Schedule of Components
Loans - Schedule of Components of Provision For Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Provision for credit losses | $ 75 | $ 0 | $ 225 | $ 210 | |
Loans [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Provision for credit losses | (36) | $ 0 | (19) | $ 210 | |
Unfunded Loan Commitments [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Provision for credit losses | [1] | $ 111 | $ 244 | ||
[1] The allowance for credit losses for unfunded loan commitments is included in other liabilities on the Company's Consolidated Balance Sheets. |
Loans - Summary of Amortized Co
Loans - Summary of Amortized Cost Basis of Loans By Credit Quality Indicator and Origination Year (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | $ 42,429 |
2022 | 104,670 |
2021 | 81,747 |
2020 | 58,853 |
2019 | 14,380 |
2018 and Prior | 57,393 |
Revolving Lines of Credit | 25,192 |
Revolving Lines of Credit Converted to Term Loans | 801 |
Total Loans | 385,465 |
Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 29,189 |
2022 | 89,909 |
2021 | 47,970 |
2020 | 42,720 |
2019 | 11,148 |
2018 and Prior | 38,456 |
Revolving Lines of Credit | 7,943 |
Total Loans | 267,335 |
Residential Real Estate [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 13,115 |
2022 | 14,653 |
2021 | 33,630 |
2020 | 16,012 |
2019 | 3,058 |
2018 and Prior | 17,600 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 98,068 |
Consumer Loan [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 125 |
2022 | 108 |
2021 | 147 |
2020 | 121 |
2019 | 174 |
2018 and Prior | 1,337 |
Revolving Lines of Credit | 17,249 |
Revolving Lines of Credit Converted to Term Loans | 801 |
Total Loans | 20,062 |
Commercial Real Estate Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 15,107 |
2022 | 76,094 |
2021 | 41,558 |
2020 | 41,305 |
2019 | 10,981 |
2018 and Prior | 36,586 |
Revolving Lines of Credit | 22 |
Total Loans | 221,653 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 15,107 |
2022 | 72,575 |
2021 | 40,954 |
2020 | 41,305 |
2019 | 10,238 |
2018 and Prior | 34,911 |
Revolving Lines of Credit | 22 |
Total Loans | 215,112 |
Commercial Real Estate Portfolio Segment [Member] | Watch and Special Mention [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 233 |
2019 | 452 |
2018 and Prior | 238 |
Total Loans | 923 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 3,286 |
2021 | 604 |
2019 | 291 |
2018 and Prior | 1,437 |
Total Loans | 5,618 |
Other Commercial Loans Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 14,082 |
2022 | 13,815 |
2021 | 6,412 |
2020 | 1,415 |
2019 | 167 |
2018 and Prior | 1,870 |
Revolving Lines of Credit | 7,921 |
Total Loans | 45,682 |
Other Commercial Loans Portfolio Segment [Member] | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 14,082 |
2022 | 13,563 |
2021 | 5,740 |
2020 | 1,231 |
2019 | 138 |
2018 and Prior | 1,684 |
Revolving Lines of Credit | 5,586 |
Total Loans | 42,024 |
Other Commercial Loans Portfolio Segment [Member] | Watch and Special Mention [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 227 |
2020 | 184 |
2019 | 29 |
2018 and Prior | 56 |
Revolving Lines of Credit | 1,868 |
Total Loans | 2,364 |
Other Commercial Loans Portfolio Segment [Member] | Substandard [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 252 |
2021 | 445 |
2019 | 0 |
2018 and Prior | 130 |
Revolving Lines of Credit | 467 |
Total Loans | 1,294 |
Residential Real Estate First Mortgages [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 12,817 |
2022 | 13,917 |
2021 | 31,957 |
2020 | 16,012 |
2019 | 3,058 |
2018 and Prior | 17,600 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 95,361 |
Residential Real Estate First Mortgages [Member] | Performing Financial Instruments [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 12,817 |
2022 | 13,917 |
2021 | 31,957 |
2020 | 16,012 |
2019 | 3,058 |
2018 and Prior | 16,930 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 94,691 |
Residential Real Estate First Mortgages [Member] | Nonaccrual Financing Receivable [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 and Prior | 670 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 670 |
Residential Real Estate Construction [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 298 |
2022 | 736 |
2021 | 1,673 |
2020 | 0 |
2019 | 0 |
2018 and Prior | 0 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 2,707 |
Residential Real Estate Construction [Member] | Performing Financial Instruments [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 298 |
2022 | 736 |
2021 | 1,673 |
2020 | 0 |
2019 | 0 |
2018 and Prior | 0 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 2,707 |
Residential Real Estate Construction [Member] | Nonaccrual Financing Receivable [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 and Prior | 0 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 0 |
Consumer Home equity and lines of credit [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 19 |
2022 | 59 |
2021 | 147 |
2020 | 113 |
2019 | 172 |
2018 and Prior | 1,337 |
Revolving Lines of Credit | 17,249 |
Revolving Lines of Credit Converted to Term Loans | 801 |
Total Loans | 19,897 |
Consumer Home equity and lines of credit [Member] | Performing Financial Instruments [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 19 |
2022 | 59 |
2021 | 147 |
2020 | 113 |
2019 | 172 |
2018 and Prior | 1,306 |
Revolving Lines of Credit | 17,249 |
Revolving Lines of Credit Converted to Term Loans | 801 |
Total Loans | 19,866 |
Consumer Home equity and lines of credit [Member] | Nonaccrual Financing Receivable [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 and Prior | 31 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 31 |
Consumer Other [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 106 |
2022 | 49 |
2021 | 0 |
2020 | 8 |
2019 | 2 |
2018 and Prior | 0 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 165 |
Consumer Other [Member] | Performing Financial Instruments [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 106 |
2022 | 49 |
2021 | 0 |
2020 | 8 |
2019 | 2 |
2018 and Prior | 0 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | 165 |
Consumer Other [Member] | Nonaccrual Financing Receivable [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 and Prior | 0 |
Revolving Lines of Credit | 0 |
Revolving Lines of Credit Converted to Term Loans | 0 |
Total Loans | $ 0 |
Loans - Summary of Internal Ris
Loans - Summary of Internal Risk Ratings of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | [1] | $ 385,465 | $ 361,947 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 221,653 | 210,858 | |
Commercial Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 0 | 0 | |
Commercial Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | $ 45,682 | 43,708 | |
Internal Credit Risk Rating [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 254,566 | ||
Internal Credit Risk Rating [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 210,858 | ||
Internal Credit Risk Rating [Member] | Commercial Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 0 | ||
Internal Credit Risk Rating [Member] | Commercial Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 43,708 | ||
Pass [Member] | Internal Credit Risk Rating [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 248,224 | ||
Pass [Member] | Internal Credit Risk Rating [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 206,655 | ||
Pass [Member] | Internal Credit Risk Rating [Member] | Commercial Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 0 | ||
Pass [Member] | Internal Credit Risk Rating [Member] | Commercial Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 41,569 | ||
Watch and Special Mention [Member] | Internal Credit Risk Rating [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 2,967 | ||
Watch and Special Mention [Member] | Internal Credit Risk Rating [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 2,932 | ||
Watch and Special Mention [Member] | Internal Credit Risk Rating [Member] | Commercial Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 0 | ||
Watch and Special Mention [Member] | Internal Credit Risk Rating [Member] | Commercial Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 35 | ||
Substandard [Member] | Internal Credit Risk Rating [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 3,375 | ||
Substandard [Member] | Internal Credit Risk Rating [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 1,271 | ||
Substandard [Member] | Internal Credit Risk Rating [Member] | Commercial Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 0 | ||
Substandard [Member] | Internal Credit Risk Rating [Member] | Commercial Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | $ 2,104 | ||
[1] Totals do not include accrued interest receivable, which was $ 987,000 and $ 874,000 at September 30, 2023 and December 31, 2022 , respectively, which is recorded separately on the Company’s Consolidated Balance Sheets. |
Loans - Summary of Information
Loans - Summary of Information Regarding the Credit Quality Indicators for Residential Real Estate and Consumer Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | [1] | $ 385,465 | $ 361,947 |
Credit Quality [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 107,381 | ||
Credit Quality [Member] | Residential First Mortgages [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 85,444 | ||
Credit Quality [Member] | Residential Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 3,248 | ||
Credit Quality [Member] | Consumer Home Equity and Lines of Credit [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 18,590 | ||
Credit Quality [Member] | Consumer Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 99 | ||
Performing [Member] | Credit Quality [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 106,612 | ||
Performing [Member] | Credit Quality [Member] | Residential First Mortgages [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 84,730 | ||
Performing [Member] | Credit Quality [Member] | Residential Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 3,248 | ||
Performing [Member] | Credit Quality [Member] | Consumer Home Equity and Lines of Credit [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 18,535 | ||
Performing [Member] | Credit Quality [Member] | Consumer Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 99 | ||
Non Performing [Member] | Credit Quality [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 769 | ||
Non Performing [Member] | Credit Quality [Member] | Residential First Mortgages [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 714 | ||
Non Performing [Member] | Credit Quality [Member] | Residential Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 0 | ||
Non Performing [Member] | Credit Quality [Member] | Consumer Home Equity and Lines of Credit [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | 55 | ||
Non Performing [Member] | Credit Quality [Member] | Consumer Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable gross carrying amount | $ 0 | ||
[1] Totals do not include accrued interest receivable, which was $ 987,000 and $ 874,000 at September 30, 2023 and December 31, 2022 , respectively, which is recorded separately on the Company’s Consolidated Balance Sheets. |
Loans - Summary of Gross Charge
Loans - Summary of Gross Charge-offs of Loans for Portfolio Class By Origination Year (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | $ 42,429 | $ 42,429 | ||
2022 | 104,670 | 104,670 | ||
2021 | 81,747 | 81,747 | ||
2020 | 58,853 | 58,853 | ||
2019 | 14,380 | 14,380 | ||
2018 and Prior | 57,393 | 57,393 | ||
Total Loans, charge-offs | 1 | $ 1 | 8 | $ 5 |
Loan Charge-offs [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 1 | 1 | ||
2022 | 3 | 3 | ||
2021 | 1 | 1 | ||
2020 | 1 | 1 | ||
2018 and Prior | 2 | 2 | ||
Total Loans, charge-offs | 1 | 8 | ||
Consumer [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 125 | 125 | ||
2022 | 108 | 108 | ||
2021 | 147 | 147 | ||
2020 | 121 | 121 | ||
2019 | 174 | 174 | ||
2018 and Prior | 1,337 | 1,337 | ||
Total Loans, charge-offs | 1 | $ 1 | 8 | $ 5 |
Consumer [Member] | Loan Charge-offs [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 1 | 1 | ||
2022 | 3 | 3 | ||
2021 | 1 | 1 | ||
2020 | 1 | 1 | ||
2018 and Prior | 2 | 2 | ||
Total Loans, charge-offs | 1 | 8 | ||
Consumer Other [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 106 | 106 | ||
2022 | 49 | 49 | ||
2021 | 0 | 0 | ||
2020 | 8 | 8 | ||
2019 | 2 | 2 | ||
2018 and Prior | 0 | 0 | ||
Consumer Other [Member] | Loan Charge-offs [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 1 | 1 | ||
2022 | 3 | 3 | ||
2021 | 1 | 1 | ||
2020 | 1 | 1 | ||
2018 and Prior | 2 | 2 | ||
Total Loans, charge-offs | $ 1 | $ 8 |
Loans - Schedule of Analysis of
Loans - Schedule of Analysis of Past due Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | $ 385,410 | $ 359,876 | |
Loans, gross | [1] | 385,465 | 361,947 |
Commercial Real Estate [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 221,653 | 209,126 | |
Loans, gross | 221,653 | 210,858 | |
Commercial Land Development [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 0 | |
Loans, gross | 0 | 0 | |
Commercial Other [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 45,682 | 43,708 | |
Loans, gross | 45,682 | 43,708 | |
Residential Real Estate First Mortgages [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 95,306 | 85,200 | |
Loans, gross | 95,361 | 85,444 | |
Residential Real Estate Construction [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 2,707 | 3,248 | |
Loans, gross | 2,707 | 3,248 | |
Consumer Home Equity and Lines of Credit [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 19,897 | 18,497 | |
Loans, gross | 19,897 | 18,590 | |
Consumer Other [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 165 | 97 | |
Loans, gross | 165 | 99 | |
Loans Past Due 30-89 Days [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 1,987 | |
Loans Past Due 30-89 Days [Member] | Commercial Real Estate [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 1,732 | |
Loans Past Due 30-89 Days [Member] | Commercial Other [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 0 | |
Loans Past Due 30-89 Days [Member] | Residential Real Estate First Mortgages [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 181 | |
Loans Past Due 30-89 Days [Member] | Consumer Home Equity and Lines of Credit [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 72 | |
Loans Past Due 30-89 Days [Member] | Consumer Other [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 2 | |
Loans Past Due 90+ Days [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 55 | 84 | |
Loans Past Due 90+ Days [Member] | Residential Real Estate First Mortgages [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 55 | 63 | |
Loans Past Due 90+ Days [Member] | Consumer Home Equity and Lines of Credit [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 21 | |
Total Past Due [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 55 | 2,071 | |
Total Past Due [Member] | Commercial Real Estate [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 1,732 | |
Total Past Due [Member] | Commercial Other [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 0 | |
Total Past Due [Member] | Residential Real Estate First Mortgages [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 55 | 244 | |
Total Past Due [Member] | Consumer Home Equity and Lines of Credit [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | 0 | 93 | |
Total Past Due [Member] | Consumer Other [Member] | |||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | |||
Past Due / Current Loans | $ 0 | $ 2 | |
[1] Totals do not include accrued interest receivable, which was $ 987,000 and $ 874,000 at September 30, 2023 and December 31, 2022 , respectively, which is recorded separately on the Company’s Consolidated Balance Sheets. |
Loans - Summary of Informatio_2
Loans - Summary of Information on Non-accrual Loans (Detail) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Non Performing Loans [Line Items] | ||
Total nonaccrual loans | $ 701,000 | $ 769,000 |
Total nonaccrual loans to total loans | 0.18% | 0.21% |
Total nonaccrual loans to total assets | 0.13% | 0.14% |
Residential Real Estate First Mortgages [Member] | ||
Non Performing Loans [Line Items] | ||
Total nonaccrual loans | $ 670,000 | $ 714,000 |
Consumer Home Equity and Lines of Credit [Member] | ||
Non Performing Loans [Line Items] | ||
Total nonaccrual loans | $ 31,000 | $ 55,000 |
Loans - Summary of Collateral D
Loans - Summary of Collateral Dependent Loans and Related ACL (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans | $ 7,994 |
Commercial Real Estate [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans | 5,800 |
Commercial Other [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans | 1,293 |
Residential Real Estate First Mortgages [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans | 870 |
Consumer Home Equity and Lines of Credit [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans | $ 31 |
Loans - Summary of Allowance fo
Loans - Summary of Allowance for Loan and Lease Losses for Loans Evaluated Individually and Collectively for Impairment (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment | $ 4,497 | |||||
Collectively evaluated for impairment | 357,450 | |||||
Total loans | 361,947 | |||||
Collectively evaluated for impairment | 3,203 | |||||
Total allowance for loan losses | $ 3,614 | $ 3,643 | 3,203 | $ 3,180 | $ 3,132 | $ 2,858 |
Commercial [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment | 3,525 | |||||
Collectively evaluated for impairment | 251,041 | |||||
Total loans | 254,566 | |||||
Collectively evaluated for impairment | 1,944 | |||||
Total allowance for loan losses | 2,610 | 2,632 | 1,944 | 1,928 | 1,924 | 1,657 |
Residential [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment | 917 | |||||
Collectively evaluated for impairment | 87,775 | |||||
Total loans | 88,692 | |||||
Collectively evaluated for impairment | 752 | |||||
Total allowance for loan losses | 823 | 831 | 752 | 745 | 745 | 745 |
Consumer [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment | 55 | |||||
Collectively evaluated for impairment | 18,634 | |||||
Total loans | 18,689 | |||||
Collectively evaluated for impairment | 507 | |||||
Total allowance for loan losses | $ 181 | $ 180 | $ 507 | $ 507 | $ 463 | $ 456 |
Loans - Summary of Informatio_3
Loans - Summary of Information Regarding Impaired Loans (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | $ 4,497 |
Reserve | 0 |
Average Investment | 6,325 |
Interest Recognized | 344 |
Recorded Investment | 4,497 |
Principal Balance | 4,771 |
Average Investment | 6,325 |
Interest Recognized | 344 |
Commercial Real Estate [Member] | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 1,422 |
Principal Balance | 1,470 |
Average Investment | 3,952 |
Interest Recognized | 177 |
Commercial Land Development [Member] | |
Financing Receivable, Impaired [Line Items] | |
Average Investment | 0 |
Interest Recognized | 0 |
Commercial Other [Member] | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 2,103 |
Principal Balance | 2,103 |
Average Investment | 1,325 |
Interest Recognized | 110 |
Residential real estate and consumer First mortgage [Member] | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 917 |
Principal Balance | 1,138 |
Average Investment | 1,011 |
Interest Recognized | 55 |
Residential real estate and consumer Home equity and lines of credit [Member] | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 55 |
Principal Balance | 60 |
Average Investment | 37 |
Interest Recognized | $ 2 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Unpaid principal balance of mortgage loans serviced for others | $ 287.3 | $ 304.3 | |
Minimum [Member] | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Discount rates used in valuation model | 10.10% | 9.50% | |
Prepayment speeds used in valuation model | 6.90% | 7.70% | |
Maximum [Member] | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Discount rates used in valuation model | 13% | 13% | |
Prepayment speeds used in valuation model | 36.70% | 38.20% |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Activity in Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Mortgage servicing rights beginning balance | $ 1,777 | $ 1,939 | $ 1,860 | $ 2,036 |
Additions | 19 | 10 | 36 | 57 |
Amortization | (45) | (59) | (145) | (203) |
Mortgage servicing rights ending balance | 1,751 | 1,890 | 1,751 | 1,890 |
Fair value at beginning of period | 3,317 | 3,273 | 3,376 | 2,477 |
Fair value at end of period | $ 3,347 | $ 3,335 | $ 3,347 | $ 3,335 |
Mortgage Servicing Rights - S_2
Mortgage Servicing Rights - Summary of Estimated Future Amortization Expense for Mortgage Servicing Rights (Detail) $ in Thousands | Sep. 30, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2023 | $ 53 |
2024 | 203 |
2025 | 186 |
2026 | 181 |
2027 | 146 |
Thereafter | 982 |
Total | $ 1,751 |
Deposits - Composition of Depos
Deposits - Composition of Deposits (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Non-interest bearing checking | $ 72,410 | $ 92,465 |
Interest bearing checking | 29,837 | 32,514 |
Money market | 86,747 | 121,215 |
Statement savings | 48,779 | 61,969 |
Certificates of deposit | 149,200 | 79,558 |
Total | $ 386,973 | $ 387,721 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Certificates of deposit with balances of $250 or more | $ 29,900,000 | $ 8,900,000 |
Certificates of deposit federally insured | 250,000 | 250,000 |
Brokered deposits | $ 0 | $ 0 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Certificates of Deposit (Detail) $ in Thousands | Sep. 30, 2023 USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2023 | $ 33,186 |
2024 | 95,170 |
2025 | 8,418 |
2026 | 12,061 |
2027 | 298 |
Thereafter | 67 |
Total | $ 149,200 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Summary of Federal Home Loan Bank Advances (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB Advances, total | $ 78,499 | $ 71,464 |
Fixed rate, fixed term advance, maturing February 2023 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.62% | |
FHLB Advances, total | $ 6,500 | |
Fixed rate, fixed term advance, maturing July 2027 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 2.90% | 2.90% |
FHLB Advances, total | $ 5,000 | $ 5,000 |
Putable advance, maturing July 2029 first option date January 2023 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.68% | |
FHLB Advances, total | $ 5,000 | |
Putable advance, maturing February 2030, first option date February 2023 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 0.98% | |
FHLB Advances, total | $ 5,000 | |
Putable advance, maturing October 2029, first put option date July 2023 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 2.96% | |
FHLB Advances, total | $ 5,000 | |
Putable advance, maturing February 2028, first option date November 2023 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 3.82% | |
FHLB Advances, total | $ 5,000 | |
Putable advance, maturing May 2028, first option date November 2023 [Memebr] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 3.16% | |
FHLB Advances, total | $ 5,000 | |
Putable advance, maturing January 2028, first option date January 2024 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 3.44% | |
FHLB Advances, total | $ 5,000 | |
Putable advance, maturing February 2028, first option date February 2024 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 3.63% | |
FHLB Advances, total | $ 5,000 | |
Putable advance, maturing March 2028, first option date March 2024 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 3.47% | |
FHLB Advances, total | $ 5,000 | |
Putable advance, maturing May 2026, first option date May 2024 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 3.92% | |
FHLB Advances, total | $ 2,500 | |
Putable advance, maturing May 2028, first option date May 2024 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 3.51% | |
FHLB Advances, total | $ 2,500 | |
Putable advance, maturing Mar 2030, first put option date March 2025 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 0.89% | 0.89% |
FHLB Advances, total | $ 10,000 | $ 10,000 |
Putable advance, maturing Mar 2032, first put option date March 2027 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.74% | 1.74% |
FHLB Advances, total | $ 10,000 | $ 10,000 |
Advance structured note, payments due monthly, maturing April 2030 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.05% | 1.05% |
FHLB Advances, total | $ 6,701 | $ 7,435 |
Advance structured note, payments due monthly, maturing May 2030 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 1.19% | 1.19% |
FHLB Advances, total | $ 6,798 | $ 7,529 |
SOFR Floater advance, maturing October 2023 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 5.56% | 4.54% |
FHLB Advances, total | $ 5,000 | $ 5,000 |
SOFR Floater advance, maturing October 2024 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, interest rate | 5.61% | 4.59% |
FHLB Advances, total | $ 5,000 | $ 5,000 |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Schedule of Maturities of Federal Home Loan Bank Advances (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances, Par Value, Maturity, Rolling Year [Abstract] | ||
2023 | 5.16% | |
2024 | 4.34% | |
2025 | 1.12% | |
2026 | 2.67% | |
2027 | 2.38% | |
Thereafter | 2.44% | |
Total | 2.78% | |
2023 | $ 5,491 | |
2024 | 6,980 | |
2025 | 2,002 | |
2026 | 4,524 | |
2027 | 7,047 | |
Thereafter | 52,455 | |
Total | $ 78,499 | $ 71,464 |
Federal Home Loan Bank Advanc_5
Federal Home Loan Bank Advances - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank stock to maximum borrowing capacity | The Company maintains a master contract agreement with the FHLB, which provides for borrowing up to the lesser of 22.22 times the value of the FHLB stock owned, a determined percentage of the book value of the Company’s qualifying real estate loans, or a determined percentage of the Company’s assets. | |
Qualifying loans pledged as collateral | $ 361,947 | |
Federal Home Loan Bank stock held | $ 4,787 | 3,429 |
Available and unused funds under borrowing agreement | 91,100 | 100,000 |
Asset Pledged as Collateral without Right [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Qualifying loans pledged as collateral | 170,700 | $ 172,400 |
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | BMO Harris Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal funds rate line of credit | 12,000 | |
Federal Fund Rate [Member] | BMO Harris Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line Of Credit At Federal Reserve | 9,500 | |
Available Borrowing Capacity | 0 | |
Federal Fund Rate [Member] | BMO Harris Bank [Member] | Asset Pledged as Collateral without Right [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Qualifying loans pledged as collateral | $ 12,700 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jul. 05, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax [Line Items] | ||||||||
Valuation allowance | $ 300 | $ 300 | $ 934 | |||||
Increased valuation allowance | 1,800 | 1,800 | ||||||
Increase income tax expense | 1,900 | |||||||
Income tax expense (benefit) | 1,425 | $ 21 | 1,001 | $ (172) | ||||
Reversal of income tax benefits recorded in prior quarters | $ 98 | $ 98 | ||||||
Deferred tax asset net of valuation allowance | 7,600 | $ 7,600 | $ 8,300 | |||||
Deferred tax benefits generated during the period | $ 592 | |||||||
Maximum [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Tax exemption income | $ 5,000 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Contractual Amounts of Off-balance Sheet Credit Related Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 98,242 | $ 84,022 |
Credit Enhancement Under FHLB of Chicago Mortgage Partnership Finance Program [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 1,027 | 894 |
Commitments to Sell Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 1,220 | 1,292 |
Overdraft Protection Program Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 3,789 | 3,881 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 150 | 150 |
Fixed Rate [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 1,474 | 3,391 |
Fixed Rate [Member] | Credit Enhancement Under FHLB of Chicago Mortgage Partnership Finance Program [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 1,027 | 894 |
Fixed Rate [Member] | Commitments to Sell Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 1,220 | 1,292 |
Fixed Rate [Member] | Overdraft Protection Program Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 3,789 | 3,881 |
Variable Rate [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 96,768 | 80,631 |
Variable Rate [Member] | Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 150 | $ 150 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Accounting Standards Update 2016-13 [Member] | ||
Loss Contingencies [Line Items] | ||
Outstanding loan commitments expected to fund | $ 41,100,000 | |
Establishment of allowance for credit losses unfunded loan commitment | 665,000 | |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Outstanding commitments | 98,242,000 | $ 84,022,000 |
Commitments to Extend Credit [Member] | Accounting Standards Update 2016-13 [Member] | ||
Loss Contingencies [Line Items] | ||
Outstanding commitments | 55,200,000 | |
Establishment of allowance for credit losses unfunded loan commitment | 909,000 | |
Mortgage Partnership Finance Program [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments | 1,000,000 | |
Other commitments | $ 0 | $ 0 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Employee Stock Ownership Plan (ESOP) Disclosures (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Share-Based Payment Arrangement [Abstract] | ||
Shares committed to be released | 14,755 | 19,730 |
Total allocated shares | 55,900 | 36,170 |
Total unallocated shares | 439,037 | 453,792 |
Total ESOP shares | 509,692 | 509,692 |
Fair value of unallocated shares (based on $7.51 and $10.00 share price as of June 30, 2023 and December 31, 2022, respectively) | $ 3,095 | $ 4,538 |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan - Employee Stock Ownership Plan (ESOP) Disclosures (Parenthetical) (Detail) | Sep. 30, 2023 | Dec. 31, 2022 |
Share-Based Payment Arrangement [Abstract] | ||
Common stock shares conversion ratio as part of offering pursuant to share based scheme | 7.05 | 10 |
Employee Stock Ownership Plan_3
Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Jul. 14, 2021 | Jan. 08, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | |
Share-based compensation arrangement by share-based payment award [Line Items] | |||||||
ESOP Purchased | 96,446 | ||||||
ESOP additional shares purchased | 283,360 | ||||||
ESOP Purchased shares adjusted for the conversion | 231,047 | ||||||
Employee stock ownership plan weighted average price of additional shares purchased | $ 10.9 | ||||||
Compensation Expense | $ 31,000 | $ 49,000 | $ 109,000 | $ 151,000 | |||
Number of shares to be contributed to the employee stock owership plan | 283,360 | ||||||
Previously Reported [Member] | |||||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||||
ESOP Purchased | 175,528 | ||||||
Share-Based Payment Arrangement, Tranche One [Member] | |||||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||||
Vested Percentage | 20% | ||||||
Vested Years Of Service | 1 year | ||||||
Share-Based Payment Arrangement, Tranche Two [Member] | |||||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||||
Vested Percentage | 40% | ||||||
Vested Years Of Service | 2 years | ||||||
Share-Based Payment Arrangement, Tranche Three [Member] | |||||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||||
Vested Percentage | 60% | ||||||
Vested Years Of Service | 3 years | ||||||
Share-based Compensation Award Tranche Four [Member] | |||||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||||
Vested Percentage | 80% | ||||||
Vested Years Of Service | 4 years | ||||||
Share-based Compensation Award Tranche Five [Member] | |||||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||||
Vested Percentage | 100% | ||||||
Vested Years Of Service | 5 years |
Related Party Transactions - Su
Related Party Transactions - Summary of Loans to Directors, Executive Officers and Affiliates (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Beginning balance | $ 1,015 | $ 932 |
Adjustments due to changes in directors, executive officers, and/or principal stockholders | (167) | 0 |
New loans | 217 | 169 |
Repayments | (51) | (86) |
Ending balance | $ 1,014 | $ 1,015 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Directors, Executive Officers and Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Deposits from directors, executive officers and affiliates | $ 681,000 | $ 583,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 104,641 | $ 114,492 |
Marketable equity securities | 3,286 | 2,924 |
Total | 107,927 | 117,416 |
U.S. Treasury notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 7,142 | 26,627 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 15,911 | 17,656 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 76,815 | 64,267 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 3,807 | 4,517 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 966 | 1,425 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 104,641 | 114,492 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 3,286 | 2,924 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 104,641 | 114,492 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Treasury notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 7,142 | 26,627 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 15,911 | 17,656 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 76,815 | 64,267 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 3,807 | 4,517 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 966 | 1,425 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 3,286 | 2,924 |
Total | $ 3,286 | $ 2,924 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Values and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Available for sale securities | $ 104,641 | $ 114,492 |
Loans, net | 382,682 | 359,574 |
Accrued interest receivable | 1,349 | 1,257 |
Cash value of life insurance | 13,919 | 14,316 |
FHLB Stock | 4,787 | 3,429 |
Marketable securities | 3,286 | 2,924 |
Financial liabilities: | ||
Deposits | 386,973 | 387,721 |
Advance payments by borrowers for taxes and insurance | 10,264 | 1,029 |
FHLB advances | 78,499 | 71,464 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 26,603 | 28,344 |
Accrued interest receivable | 1,349 | 1,257 |
Marketable securities | 3,286 | 2,924 |
Financial liabilities: | ||
Deposits | 237,772 | 308,162 |
Advance payments by borrowers for taxes and insurance | 10,264 | 1,029 |
Accrued interest payable | 1,099 | 291 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Available for sale securities | 104,641 | 114,492 |
Loans held for sale | 410 | 125 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets: | ||
Loans, net | 353,717 | 335,987 |
Rate lock commitments | 6 | 6 |
Cash value of life insurance | 13,919 | 14,316 |
FHLB Stock | 4,787 | 3,429 |
Financial liabilities: | ||
Deposits | 147,476 | 78,418 |
FHLB advances | 74,667 | 69,633 |
Reported Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 26,603 | 28,344 |
Available for sale securities | 104,641 | 114,492 |
Loans held for sale | 410 | 125 |
Loans, net | 382,682 | 359,574 |
Rate lock commitments | 6 | 6 |
Accrued interest receivable | 1,349 | 1,257 |
Cash value of life insurance | 13,919 | 14,316 |
FHLB Stock | 4,787 | 3,429 |
Marketable securities | 3,286 | 2,924 |
Financial liabilities: | ||
Deposits | 386,973 | 387,721 |
Advance payments by borrowers for taxes and insurance | 10,264 | 1,029 |
FHLB advances | 78,499 | 71,464 |
Accrued interest payable | $ 1,099 | $ 291 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Impairment Loan on mortgage servicing rights | $ 0 | $ 0 |
Equity and Regulatory Matters -
Equity and Regulatory Matters - Additional Information (Detail) - USD ($) | 4 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 07, 2023 | Sep. 30, 2022 | Jun. 09, 2023 | Aug. 26, 2022 | |
Text Block [Abstract] | |||||
Consolidated assets | $ 3,000,000,000 | ||||
Percentage of repurchase of outstanding shares | 10% | 5% | |||
Shares authorized to repurchase | 621,522 | 319,766 | |||
Shares repurchased | 36,562 | 319,766 | 184,270 | ||
Purchase price of repurchased shares | $ 270,000 | $ 3,400,000 | $ (1,995,000) |
Equity and Regulatory Matters_2
Equity and Regulatory Matters - Schedule of Banks Actual and Required Capital Amounts and Ratios (Detail) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Text Block [Abstract] | ||
Leverage tier 1 capital actual amount | $ 62,191 | $ 65,497 |
Common Equity Tier 1 risk based capital actual amount | 62,191 | 65,497 |
Tier 1 risk based capital actual amount | 62,191 | 65,497 |
Total risk based capital actual amount | $ 66,714 | $ 68,700 |
Leverage tier 1 capital actual ratio | 0.111 | 0.119 |
Common Equity Tier 1 risk based capital actual ratio | 0.15 | 0.166 |
Tier 1 risk based capital actual ratio | 0.15 | 0.166 |
Total risk based capital actual ratio | 0.161 | 0.175 |
Leverage tier 1 capital for capital adequacy purposes amount | $ 22,440 | $ 22,086 |
Common Equity Tier 1 risk based capital for capital adequacy purposes amount | 18,624 | 17,711 |
Tier 1 risk based capital for capital adequacy purposes amount | 24,831 | 23,615 |
Total risk based capital for capital adequacy purposes amount | $ 33,109 | $ 31,486 |
Leverage tier 1 capital for capital adequacy purposes ratio | 4% | 4% |
Common Equity Tier 1 risk based capital for capital adequacy purposes ratio | 0.045 | 0.045 |
Tier 1 risk based capital for capital adequacy purposes ratio | 0.06 | 0.06 |
Total risk based capital for capital adequacy purposes ratio | 0.08 | 0.08 |
Leverage tier 1 capital to be well capitalized under prompt corrective action provisions amount | $ 28,051 | $ 27,608 |
Common Equity Tier 1 risk based capital to be well capitalized under prompt corrective action provisions amount | 26,901 | 25,583 |
Tier 1 risk based capital to be well capitalized under prompt corrective action provisions amount | 33,104 | 31,486 |
Total risk based capital to be well capitalized under prompt corrective action provisions amount | $ 41,386 | $ 39,358 |
Leverage tier 1 capital to be well capitalized under prompt corrective action provisions ratio | 5% | 5% |
Common Equity Tier 1 risk based capital to be well capitalized under prompt corrective action provisions ratio | 0.065 | 0.065 |
Tier 1 risk based capital to be well capitalized under prompt corrective action provisions ratio | 0.08 | 0.08 |
Total risk based capital to be well capitalized under prompt corrective action provisions ratio | 0.10 | 0.10 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 111,145 | 0 | 35,507 | 182,457 |
Earnings (Loss) Per Share - Ear
Earnings (Loss) Per Share - Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Earnings Per Share [Abstract] | |||||
Net (loss) income | $ (3,641) | $ 124 | $ (4,510) | $ (172) | |
Weighted shares outstanding for basic EPS | |||||
Weighted average shares outstanding | 5,976,208,000 | 6,271,370,000 | 5,984,897,000 | 6,278,914,000 | |
Less: Weighted average unallocated ESOP shares | 441,497,000 | 461,185,000 | 446,388,000 | 436,730,000 | |
Weighted average shares outstanding for basic EPS | 5,534,711 | 5,810,185 | 5,538,509 | 5,842,184 | |
Additional dilutive shares | [1] | 0 | 173,056,000 | 0 | 0 |
Weighted average shares outstanding for dilutive EPS | [2] | 5,534,711 | 5,983,241 | 5,538,509 | 5,842,184 |
Basic (loss) per share | $ (0.66) | $ 0.02 | $ (0.81) | $ (0.03) | |
Diluted (loss) per share | [1],[2] | $ (0.66) | $ 0.02 | $ (0.81) | $ (0.03) |
[1] For the three and nine months ended September 30, 2023 and the nine months ended September 30, 2022 , the effect of stock options was anti-dilutive due to the net loss and therefore no dilutive shares are included in the weighted average shares outstanding or diluted loss calculations. Diluted loss per share and average shares outstanding excludes all common shares if their effect is anti-dilutive. |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Earnings Per Share [Abstract] | |||||
Dilutive shares | [1] | 0 | 173,056 | 0 | 0 |
[1] For the three and nine months ended September 30, 2023 and the nine months ended September 30, 2022 , the effect of stock options was anti-dilutive due to the net loss and therefore no dilutive shares are included in the weighted average shares outstanding or diluted loss calculations. |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 27, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 26, 2022 | |
Share-based compensation arrangement by share-based payment award [Line Items] | ||||||
Unrecognized compensation expense related to stock compensation plans | $ 1,100 | $ 1,100 | ||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 3 years 9 months | |||||
Restricted Stock [Member] | ||||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||||
Unrecognized compensation expense related to stock compensation plans | 1,200 | $ 1,200 | ||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 3 years 8 months 12 days | |||||
Stock option expense recognised | 99,000 | $ 47,000 | $ 287,000 | $ 120,000 | ||
Employee Stock Option [Member] | ||||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||||
Stock option expense recognised | $ 79,000 | $ 33,000 | $ 228,000 | $ 80,000 | ||
2020 Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||||
Stock based compensation number of shares authorized | 95,387 | |||||
Shares adjusted for the conversion | 125,557 | |||||
2020 Equity Incentive Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||||
Stock based compensation number of shares authorized | 238,467 | |||||
Shares adjusted for the conversion | 313,894 | |||||
2022 Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||||
Stock based compensation number of shares authorized | 141,680 | |||||
Common stock available for grant | 21,382 | 21,382 | ||||
2022 Equity Incentive Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||||
Stock based compensation number of shares authorized | 354,200 | |||||
Common stock available for grant | 44,455 | 44,455 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Assumptions Used in Estimating the Fair Value of Options Granted (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Dividend yield | 0% | 0% |
Risk-free interest rate | 3.59% | 3.13% |
Expected volatility | 24.64% | 24.64% |
Weighted average expected life | 6 years 6 months | 6 years 6 months |
Weighted average per share value of options | $ 3.37 | $ 3.25 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of share based compensation stock options activity [Line Items] | |||
Stock options - Beginning | 656,130 | ||
Stock options - Shares granted | 3,000 | ||
Stock options - Shares exercised | 3,159 | 3,159 | |
Stock options - Shares forfeited | 55,861 | ||
Stock options - Ending | 600,110 | 600,110 | 656,130 |
Stock options - Options exercisable | 182,637 | 182,637 | |
Weighted Average Exercise Price - Beginning | $ 8.27 | ||
Weighted Average Exercise Price - Granted | 9.94 | ||
Weighted Average Exercise Price - Exercised | 5.96 | ||
Weighted Average Exercise Price - Forfeited | 8.09 | ||
Weighted Average Exercise Price - Ending | $ 8.3 | 8.3 | $ 8.27 |
Weighted Average Exercise Price - Options exercisable | $ 6.51 | $ 6.51 | |
Weighted Average Remaining Contractual Term (Years) | 7 years 8 months 26 days | 8 years 8 months 8 days | |
Weighted Average Remaining Contractual Term (Years) - Options granted | 6 years 6 months | ||
Weighted Average Remaining Contractual Term (Years) - Options exercisable | 6 years 1 month 17 days | ||
Aggregate Intrinsic Value - Beginning | $ 1,122,214 | ||
Aggregate Intrinsic Value - Granted | 21 | ||
Aggregate Intrinsic Value - Ending | $ 254,168 | 254,168 | $ 1,122,214 |
Aggregate Intrinsic Value - Options exercisable | $ 162,565 | $ 162,565 |
Stock Based Compensation - Su_3
Stock Based Compensation - Summary of Nonvested Stock option Activity (Detail) | 9 Months Ended | |
Sep. 30, 2023 $ / shares shares | ||
Share-Based Payment Arrangement [Abstract] | ||
Nonvested | shares | 543,306 | |
Granted | shares | 3,000 | |
Vested | shares | (76,130) | [1] |
Forfeited | shares | (52,703) | |
Nonvested | shares | 417,473 | |
Nonvested | $ / shares | $ 2.82 | |
Granted | $ / shares | 3.37 | |
Vested | $ / shares | 1.96 | [1] |
Forfeited | $ / shares | 8.09 | |
Nonvested | $ / shares | $ 3.01 | |
[1] Include s 2,106 sh ares vested under a nonqualified stock option inducement award to the Company’s President and Chief Executive Officer. |
Stock Based Compensation - Su_4
Stock Based Compensation - Summary of Nonvested Stock option Activity (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2023 shares | ||
Shares vested under a nonqualified stock option inducement award | 30,274 | [1],[2] |
President and Chief Executive Officer [Member] | ||
Shares vested under a nonqualified stock option inducement award | 2,106 | |
[1] Includes 7,368 shares surrendered by employees to cover payroll tax costs related to the vested shares. Includes 263 s hares vested under a restricted stock inducement award to the Company’s President and Chief Executive Officer. |
Stock Based Compensation - Su_5
Stock Based Compensation - Summary of Restricted Stock Unit Activity (Detail) | 9 Months Ended | |
Sep. 30, 2023 $ / shares shares | ||
Schedule Of Share Based Compensation Restricted Stock Units Award Activity [Abstract] | ||
Nonvested | shares | 211,349 | |
Vested | shares | (30,274) | [1],[2] |
Forfeited | shares | (18,385) | |
Nonvested | shares | 162,690 | |
Nonvested | $ / shares | $ 8.71 | |
Vested | $ / shares | 7.08 | [1],[2] |
Forfeited | $ / shares | 8.15 | |
Nonvested | $ / shares | $ 9.08 | |
[1] Includes 7,368 shares surrendered by employees to cover payroll tax costs related to the vested shares. Includes 263 s hares vested under a restricted stock inducement award to the Company’s President and Chief Executive Officer. |
Stock Based Compensation - Su_6
Stock Based Compensation - Summary of Restricted Stock Unit Activity (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2023 shares | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Shares vested under a nonqualified stock option inducement award | 30,274 | [1],[2] |
Restrcited shares vested related to shares surrenders to cover payroll taxes | 7,368 | |
President and Chief Executive Officer [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Shares vested under a nonqualified stock option inducement award | 2,106 | |
President and Chief Executive Officer [Member] | Restricted Stock [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Shares vested under a nonqualified stock option inducement award | 263 | |
[1] Includes 7,368 shares surrendered by employees to cover payroll tax costs related to the vested shares. Includes 263 s hares vested under a restricted stock inducement award to the Company’s President and Chief Executive Officer. |