Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Entity File Number | 001-40612 | |
Entity Registrant Name | PB BANKSHARES, INC | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 86-3947794 | |
Entity Address, Address Line One | 185 E Lincoln Highway | |
Entity Address, City or Town | Coatesville | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19320 | |
City Area Code | 610 | |
Local Phone Number | 384-8282 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Shares, par value $0.01 per share | |
Trading Symbol | PBBK | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 2,714,967 | |
Entity Central Index Key | 0001849670 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 19,859 | $ 15,918 |
Federal funds sold | 4,823 | 1,186 |
Interest earning deposits with banks | 503 | 100 |
Cash and cash equivalents | 25,185 | 17,204 |
Debt securities available-for-sale, at fair value | 40,667 | 52,047 |
Equity securities, at fair value | 752 | 762 |
Restricted stocks, at cost | 2,464 | 2,251 |
Loans receivable, net of allowance for credit losses of $4,468 at September 30, 2023, After adoption of ASC 326 | 325,350 | |
Loans receivable, net of allowance for credit losses of $3,992 at December 31, 2022, Prior to adoption of ASC 326 | 300,855 | |
Premises and equipment, net | 2,124 | 1,693 |
Deferred income taxes, net | 1,826 | 1,656 |
Accrued interest receivable | 1,327 | 1,123 |
Bank owned life insurance | 8,178 | 7,487 |
Other assets | 1,339 | 1,469 |
Total Assets | 409,212 | 386,547 |
Liabilities | ||
Deposits | 306,521 | 289,495 |
Borrowings | 51,887 | 47,638 |
Accrued expenses and other liabilities | 4,222 | 3,427 |
Total Liabilities | 362,630 | 340,560 |
Commitments and contingencies - see note 8 | ||
Stockholders' Equity | ||
Preferred Stock, $0.01 par value, 10,000,000 shares authorized; -0- issued and outstanding at September 30, 2023 and December 31, 2022 | 0 | 0 |
Common Stock, $0.01 par value, 40,000,000 shares authorized; 2,744,967 (including 108,115 restricted shares) and 2,845,076 (including 108,115 restricted shares) issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 26 | 27 |
Additional paid-in capital | 24,786 | 25,721 |
Retained earnings | 26,149 | 24,779 |
Unearned ESOP shares, 199,962 shares at September 30, 2023 and December 31, 2022 | (2,608) | (2,608) |
Accumulated other comprehensive loss | (1,771) | (1,932) |
Total Stockholders' Equity | 46,582 | 45,987 |
Total Liabilities and Stockholders' Equity | $ 409,212 | $ 386,547 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Allowance for loan losses, Prior to adoption of ASC 326 | $ 3,992 | |
Allowance for credit losses, After adoption of ASU 326 | $ 4,468 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 2,744,967 | 2,845,076 |
Common stock, shares outstanding | 2,744,967 | 2,845,076 |
Unearned ESOP shares | 199,962 | 199,962 |
Restricted stock | ||
Common stock, shares issued | 108,115 | 108,115 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - 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 | $ 4,380 | $ 3,362 | $ 12,533 | $ 9,015 |
Securities | 337 | 150 | 738 | 331 |
Other | 422 | 171 | 1,284 | 272 |
Total Interest and Dividend Income | 5,139 | 3,683 | 14,555 | 9,618 |
Interest Expense | ||||
Deposits | 1,645 | 466 | 3,961 | 1,374 |
Borrowings | 453 | 229 | 1,286 | 562 |
Total Interest Expense | 2,098 | 695 | 5,247 | 1,936 |
Net interest income | 3,041 | 2,988 | 9,308 | 7,682 |
Provision for Credit Losses, After Adoption of ASC 326 | 140 | 570 | ||
Provision for Credit Losses, Prior to Adoption of ASC 326 | 346 | 639 | ||
Net interest income after provision for credit losses | 2,901 | 2,642 | 8,738 | 7,043 |
Noninterest Income | ||||
Revenue under 606 | 159 | 130 | 465 | 379 |
Loss on equity securities | (24) | (33) | (24) | (100) |
Bank owned life insurance income | 50 | 44 | 141 | 131 |
Total Noninterest Income | 185 | 141 | 582 | 410 |
Noninterest Expenses | ||||
Salaries and employee benefits | 1,279 | 1,216 | 3,970 | 3,256 |
Occupancy and equipment | 180 | 173 | 521 | 491 |
Data and item processing | 268 | 254 | 798 | 747 |
Advertising and marketing | 60 | 37 | 158 | 84 |
Professional fees | 170 | 186 | 515 | 503 |
Directors' fees | 107 | 60 | 322 | 182 |
FDIC insurance premiums | 46 | 38 | 138 | 76 |
Pennsylvania shares tax | 72 | 84 | 221 | 247 |
Debit card expenses | 44 | 36 | 118 | 105 |
Other | 206 | 187 | 629 | 522 |
Total Noninterest Expenses | 2,432 | 2,271 | 7,390 | 6,213 |
Income before income tax expense | 654 | 512 | 1,930 | 1,240 |
Income Tax Expense | 141 | 98 | 420 | 234 |
Net Income | $ 513 | $ 414 | $ 1,510 | $ 1,006 |
Earnings per common share - basic | $ 0.21 | $ 0.16 | $ 0.61 | $ 0.39 |
Earnings per common share - diluted | $ 0.21 | $ 0.16 | $ 0.60 | $ 0.39 |
Service charges on deposit accounts | ||||
Noninterest Income | ||||
Revenue under 606 | $ 39 | $ 40 | $ 130 | $ 136 |
Debit card income | ||||
Noninterest Income | ||||
Revenue under 606 | 59 | 51 | 165 | 149 |
Other service charges | ||||
Noninterest Income | ||||
Revenue under 606 | 20 | 19 | 87 | 55 |
Loss on disposal of equipment | ||||
Noninterest Income | ||||
Revenue under 606 | 0 | 0 | (40) | 0 |
Other income | ||||
Noninterest Income | ||||
Revenue under 606 | $ 41 | $ 20 | $ 123 | $ 39 |
Condensed Consolidated Statem_2
Condensed 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 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||
Net Income | $ 513 | $ 414 | $ 1,510 | $ 1,006 |
Unrealized gains (losses) on debt securities available-for-sale: | ||||
Unrealized holding gains (losses) arising during period | (2) | (581) | 204 | (2,182) |
Tax effect | 1 | 122 | (43) | 458 |
Other comprehensive income (loss) | (1) | (459) | 161 | (1,724) |
Total Comprehensive Income (Loss) | $ 512 | $ (45) | $ 1,671 | $ (718) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | Total |
Beginning Balance at Dec. 31, 2021 | $ 28 | $ 26,176 | $ 22,665 | $ (2,753) | $ (282) | $ 45,834 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,006 | 1,006 | ||||||
Repurchased common stock, value | (498) | (498) | ||||||
Other comprehensive income (loss) | (1,724) | (1,724) | ||||||
Ending Balance at Sep. 30, 2022 | 28 | 25,678 | 23,671 | (2,753) | (2,006) | 44,618 | ||
Beginning Balance at Jun. 30, 2022 | 28 | 26,176 | 23,257 | (2,753) | (1,547) | 45,161 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 414 | 414 | ||||||
Repurchased common stock, value | (498) | (498) | ||||||
Other comprehensive income (loss) | (459) | (459) | ||||||
Ending Balance at Sep. 30, 2022 | 28 | 25,678 | 23,671 | (2,753) | (2,006) | 44,618 | ||
Beginning Balance at Dec. 31, 2022 | 27 | 25,721 | 24,779 | (2,608) | (1,932) | 45,987 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,510 | 1,510 | ||||||
Repurchased common stock, value | (1) | (1,341) | (1,342) | |||||
Stock based compensation expense | 406 | 406 | ||||||
Other comprehensive income (loss) | 161 | 161 | ||||||
Ending Balance at Sep. 30, 2023 | 26 | 24,786 | $ (140) | 26,149 | (2,608) | (1,771) | $ (140) | 46,582 |
Beginning Balance at Jun. 30, 2023 | 27 | 24,892 | 25,636 | (2,608) | (1,770) | 46,177 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 513 | 513 | ||||||
Repurchased common stock, value | (1) | (244) | (245) | |||||
Stock based compensation expense | 138 | 138 | ||||||
Other comprehensive income (loss) | (1) | (1) | ||||||
Ending Balance at Sep. 30, 2023 | $ 26 | $ 24,786 | $ (140) | $ 26,149 | $ (2,608) | $ (1,771) | $ (140) | $ 46,582 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Parenthetical) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Condensed Consolidated Statements of Stockholders' Equity | ||||
Repurchased common stock, shares | 18,155 | 37,789 | 100,109 | 37,789 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net income | $ 1,510 | $ 1,006 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses, After Adoption of ASC 326 | 570 | |
Provision for credit losses, Prior to Adoption of ASC 326 | 639 | |
Depreciation and amortization | 242 | 220 |
Loss on disposal of premises and equipment | 40 | 0 |
Net accretion of securities premiums and discounts | (377) | (92) |
Deferred income tax benefit | (176) | (184) |
Loss on equity securities | 24 | 100 |
Deferred loan fees, net | 62 | 58 |
Earnings on Bank owned life insurance | (141) | (131) |
Stock-based compensation expense | 406 | 0 |
Increase in accrued interest receivable and other assets | (149) | (268) |
Increase in accrued expenses and other liabilities | 649 | 550 |
Net Cash Provided by Operating Activities | 2,660 | 1,898 |
Cash Flows from Investing Activities | ||
Purchases | (18,584) | (19,853) |
Maturities, calls, and principal repayments | 30,545 | 6,173 |
Dividends on equity securities reinvested | (14) | (8) |
Purchase of restricted stocks | (213) | (1,098) |
Purchase of additional Bank owned life insurance | (550) | 0 |
Net increase in loans receivable | (25,158) | (52,882) |
Purchases of premises and equipment | (638) | (87) |
Net Cash Used in Investing Activities | (14,612) | (67,755) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 17,026 | 38,498 |
Repurchased common stock | (1,342) | (498) |
Advances of borrowings | 13,650 | 29,000 |
Repayments of borrowings | (9,401) | (5,269) |
Net Cash Provided by Financing Activities | 19,933 | 61,731 |
Increase in cash and cash equivalents | 7,981 | (4,126) |
Cash and Cash Equivalents, Beginning of Period | 17,204 | 26,864 |
Cash and Cash Equivalents, End of Period | 25,185 | 22,738 |
Supplementary Cash Flows Information | ||
Interest paid | 4,972 | 1,893 |
Right-to-use lease assets and liability | 0 | 247 |
Income taxes paid | 331 | 274 |
Supplementary Non-Cash Flows Information | ||
Unrealized gain (loss) on debt securities available-for-sale | $ 204 | $ (2,182) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation Organization and Nature of Operations PB Bankshares, Inc., a Maryland corporation (the “Company”) is the holding company of Presence Bank (the “Bank”) and was formed in connection with the conversion of the Bank from the mutual to the stock form of organization. On July 14, 2021, the mutual to stock conversion of the Bank was completed and the Company became the parent holding company for the Bank. Shares of the Company began trading on the Nasdaq Capital Market on July 15, 2021. The Company is subject to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Bank”). The Bank is a state-chartered savings bank established in 1919. The main office is located in Coatesville, Pennsylvania with three other branches located in New Holland, Oxford, and Georgetown, Pennsylvania. The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans primarily secured by real estate and, to a lesser extent, consumer loans. The Bank competes with other banking and financial institutions in its primary market communities encompassing Chester, Cumberland, Dauphin, Lancaster, and Lebanon Counties in Pennsylvania. The Bank is regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Pennsylvania Department of Banking and Securities (the “PADOB”). Principles of Consolidation The consolidated financial statements include accounts of the Company and its wholly-owned subsidiary, the Bank. The Bank also includes the accounts of CSB Investments, Inc. (“CSB”), a wholly-owned subsidiary of the Bank located in Wilmington, Delaware. The sole purpose of CSB is to maintain and manage the Bank’s investment portfolio. All significant intercompany accounts and transactions have been eliminated in consolidation. Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to the Securities and Exchange Commission’s Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary (consisting only of normal recurring accruals) for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2023 are not necessarily indicative of the results for the year ending December 31, 2023 or any other interim periods. For further information, refer to the audited consolidated financial statements and notes thereto for the year ended December 31, 2022 as filed in the annual report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2023. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses on loans, the valuation of deferred tax assets, and estimation of fair values. While management uses available information to recognize estimated losses on loans, future additions to the allowance for credit losses may be necessary based on changes in economic conditions and underlying collateral values, if any. In addition, the FDIC and PADOB, as an integral part of their examination process, periodically review the Bank’s allowance for credit losses. These agencies may require the Bank to recognize additions to the allowance based on their judgments of information available to them at the time of their examinations. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements This section provides a summary description of recent ASUs issued by the FASB to the ASC that had or that management expects may have an impact on the financial statements issued upon adoption. The Company is classified as an emerging growth company and has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Effective dates reflect this election. Recently Adopted Accounting Pronouncements In September 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU, as amended, requires an entity to measure expected credit losses for financial assets carried at amortized cost based on historical experience, current conditions, and reasonable and supportable forecasts. Among other things, the ASU also amended the impairment model for available for sale securities and addressed purchased financial assets with deterioration. ASU 2016-13 was effective for the Company on January 1, 2023. The adjustment recorded at adoption established a reserve for unfunded loan commitments of $177,000. This adjustment, net of tax, reduced the opening retained earnings of the Company and the Bank by $140,000 as of the date of adoption. In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments in this ASU should be applied prospectively, except for the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. ASU 2022-02 was effective for the Company on January 1, 2023. There was no material impact to the Company at adoption. The following table illustrates the impact of adopting ASC 326 (in thousands): December 31, 2022 January 1, 2023 January 1, 2023 As Previously As Reported Reported Impact of Under (Incurred Loss) ASC 326 ASC 326 Assets: Loans, net $ 300,855 $ — $ 300,855 Deferred income taxes, net 1,656 37 1,693 Liabilities: Reserve for credit losses on unfunded commitments — 177 177 Total equity: $ 45,987 $ (140) $ 45,847 The following accounting policies have been updated in connection with the adoption of ASC 326 and apply to periods beginning after December 31, 2022. Accounting policies applying to prior periods are described in the 2022 Annual Report. Allowance for Credit Losses on Loans: The allowance represents management’s current estimate of expected credit losses over the contractual term of loans, and is recorded at an amount that, in management’s judgment, reduces the recorded investment in loans to the net amount expected to be collected. No allowance for credit loss is recorded on accrued interest receivable and amounts written-off are reversed by an adjustment to interest income. Management’s judgment in determining the level of the allowance is based on evaluations of historical loan losses, current conditions and reasonable and supportable forecasts relevant to the collectability of loans. Loans that share common risk characteristics are evaluated collectively using a discounted cash flow approach for all loans. The discounted cash flow approach used by the Company utilizes loan-level cash flow projections and pool-level assumptions. For all loan pools, cash flow projections and estimated expected losses are based in part on benchmarked peer data. Management’s estimate of the allowance for credit losses on loans that are collectively evaluated also includes a qualitative assessment of available information relevant to assessing collectability that is not captured in the loss estimation process. This includes forecasts that are reasonable and supportable concerning expectations of future economic conditions. The reasonable and supportable forecast period is a year. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. These qualitative risk factors include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 3. Nature and volume of the portfolio and terms of loans. 4. Volume and severity of past due, classified and nonaccrual loans as well as other loan modifications. 5. Existence and effect of any concentrations of credit and changes in the level of such concentrations. 6. Effect of external factors, such as competition and legal and regulatory requirements. 7. Experience, ability, and depth of lending management and other relevant staff. 8. Quality of loan review and Board of Director oversight. 9. The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. 10. Changes in inflationary environment. 11. Changes in the interest rate environment. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for credit losses calculation for our loan portfolio. The evaluation also considers the following risk characteristics of each loan portfolio segment: ● One- to four-family residential real estate loans carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. ● Commercial real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. ● Construction loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget, and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure or other factors unrelated to the project. ● Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may be dependent upon the profitability and cash flows of the business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much reliability. ● Consumer loans carry risk associated with the continued creditworthiness of the borrower and the value of the collateral, if any. These loans are typically either unsecured or secured by rapidly depreciating assets. They are also likely to be immediately and adversely affected by job loss, divorce, illness, personal bankruptcy, or other changes in circumstances. Loans that do not share common risk characteristics with other loans are evaluated individually and are not included in the collective analysis. The allowance for credit losses on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, may be measured based on the fair value of the collateral less estimated costs to sell. An unallocated component of the allowance for loan losses is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Reserve for Unfunded Commitments: |
Debt and Equity Securities
Debt and Equity Securities | 9 Months Ended |
Sep. 30, 2023 | |
Debt and Equity Securities | |
Debt and Equity Securities | 3. Debt and Equity Securities The amortized cost, gross unrealized gains and losses, and fair value of securities available-for-sale and equity securities are as follows (in thousands): Gross Unrealized Gross Unrealized September 30, 2023 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 24,243 $ — $ (1,924) $ 22,319 Treasury securities 15,816 — (29) 15,787 Mortgage-backed securities 86 1 (1) 86 Collateralized mortgage obligations 2,763 — (288) 2,475 Total available-for-sale debt securities $ 42,908 $ 1 $ (2,242) $ 40,667 Equity securities: Mutual funds (fixed income) $ 752 Gross Unrealized Gross Unrealized December 31, 2022 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 21,243 $ — $ (2,126) $ 19,117 Treasury securities 29,859 2 (42) 29,819 Mortgage-backed securities 97 2 — 99 Collateralized mortgage obligations 3,293 — (281) 3,012 Total available-for-sale debt securities $ 54,492 $ 4 $ (2,449) $ 52,047 Equity securities: Mutual funds (fixed income) $ 762 The table below indicates the length of time individual available-for-sale securities have been in a continuous unrealized loss position at September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ 2,994 $ (4) $ 19,325 $ (1,920) $ 22,319 $ (1,924) Treasury securities 15,787 (29) — — 15,787 (29) Mortgage-backed securities 59 (1) — — 59 (1) Collateralized mortgage obligations — — 2,475 (288) 2,475 (288) Total $ 18,840 $ (34) $ 21,800 $ (2,208) $ 40,640 $ (2,242) December 31, 2022 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ — $ — $ 19,117 $ (2,126) $ 19,117 $ (2,126) Treasury securities 9,928 (42) — — 9,928 (42) Collateralized mortgage obligations 1,479 (106) 1,533 (175) 3,012 (281) Total $ 11,407 $ (148) $ 20,650 $ (2,301) $ 32,057 $ (2,449) As of September 30, 2023 and December 31, 2022, the mortgage-backed securities and collateralized mortgage obligations included in the securities portfolio consisted of securities issued by U.S. government sponsored agencies. There were no private label mortgage-backed securities or collateralized mortgage obligations held in the securities portfolio as of September 30, 2023 and December 31, 2022. At September 30, 2023, 50 agency bonds, five treasury securities, five mortgage-backed securities and 34 collateralized mortgage obligations were in an unrealized loss position. In analyzing an issuer’s financial condition, management considers whether downgrades by bond rating agencies have occurred and industry analysts’ reports. As of September 30, 2023, management believes that the estimated fair value of securities disclosed above is primarily dependent upon the movement in market interest rates particularly given the negligible inherent credit risk associated with these securities. Although the fair value will fluctuate as the market interest rates move, management believes that these fair values will recover as the underlying portfolios mature and are reinvested in market yielding investments. Additionally, all securities remain highly rated and all issuers have continued to make timely payments of interest and principal. As the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost basis, which may be maturity, the Company concluded that a credit loss did not exist in its portfolio at September 30, 2023, and therefore, no allowance for credit losses was recorded. There were no securities sold during the three and nine months ended September 30, 2023 or September 30, 2022. The amortized cost and fair value of debt securities available-for-sale at September 30, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands). Available-for-Sale Amortized Cost Fair Value Yield Due less than one year $ 16,828 $ 16,801 5.32 % Due one year through five years 23,231 21,305 2.81 Due after five years through ten years — — — Mortgage-backed securities 86 86 5.09 Collateralized mortgage obligations 2,763 2,475 1.94 Total available-for-sale debt securities $ 42,908 $ 40,667 2.75 % At September 30, 2023 and December 31, 2022, the Company had securities with fair values totaling $1,830,000 and $1,810,000, respectively, pledged to secure borrowings. At September 30, 2023 and December 31, 2022, the Company had securities with fair values totaling $18,618,000 and $21,604,000, respectively, pledged primarily for public fund depositors. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
Loans Receivable and Allowance for Credit Losses | |
Loans Receivable and Allowance for Credit Losses | 4. Loans Receivable and Allowance for Credit Losses On January 1, 2023, the Company adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. All loan information presented as of September 30, 2023 is in accordance with ASC 326. All loan information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable incurred loss GAAP. The Company’s loans are stated at their face amount and consist of the classes of loans included in the table below. The Company has elected to exclude accrued interest receivable, totaling $1.2 million at September 30, 2023, from the amortized cost basis of loans. Major classifications of net loans receivable at September 30, 2023 and December 31, 2022 are as follows (in thousands): September 30, December 31, 2023 2022 Real estate: One-to four-family residential $ 107,473 $ 110,387 Commercial 186,406 148,567 Construction 9,812 20,406 Commercial and industrial 17,002 17,874 Consumer and other 9,796 8,203 330,489 305,437 Deferred loan fees, net (671) (590) Allowance for credit losses (4,468) (3,992) Total loans receivable, net $ 325,350 $ 300,855 The following table summarizes the activity in the allowance for credit losses - loans by loan class for the three months ended September 30, 2023 (in thousands): Allowance for Credit Losses - Loans Provisions for Credit Beginning Losses - Ending Balance Charge-offs Recoveries Loans Balance Real Estate: One- to four-family residential $ 1,233 $ — $ — $ 136 $ 1,369 Commercial 2,354 — — 213 2,567 Construction 138 — — (40) 98 Commercial and industrial 209 — 1 21 231 Consumer and other 112 — — 3 115 Unallocated 268 — — (180) 88 $ 4,314 $ — $ 1 $ 153 $ 4,468 The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended September 30, 2022 (in thousands): Allowance for Loan Losses Beginning Provisions Ending Balance Charge-offs Recoveries (Recovery) Balance Real Estate: One- to four-family residential $ 1,012 $ — $ — $ 23 $ 1,035 Commercial 1,933 — — (119) 1,814 Construction 212 — — 24 236 Commercial and industrial 109 — 2 11 122 Consumer and other 28 — — — 28 Unallocated 145 — — 407 552 $ 3,439 $ — $ 2 $ 346 $ 3,787 The following table summarizes the activity in the allowance for credit losses - loans by loan class for the nine months ended September 30, 2023 (in thousands): Allowance for Credit Losses - Loans Beginning Balance Provisions Prior to Impact of for Credit Adoption of Adoption of Losses - Ending ASC 326 ASC 326 Charge-offs Recoveries Loans Balance Real Estate: One- to four-family residential $ 1,156 $ 45 $ — $ 15 $ 153 $ 1,369 Commercial 1,829 75 — — 663 2,567 Construction 316 (34) — — (184) 98 Commercial and industrial 308 (84) (144) 3 148 231 Consumer and other 87 3 — — 25 115 Unallocated 296 (5) — — (203) 88 Total $ 3,992 $ — $ (144) $ 18 $ 602 $ 4,468 The following table summarizes the activity in the allowance for loan losses by loan class for the nine months ended September 30, 2022 (in thousands): Allowance for Loan Losses Beginning Provisions Ending Balance Charge-offs Recoveries (Recovery) Balance Real Estate: One- to four-family residential $ 1,217 $ — $ — $ (182) $ 1,035 Commercial 1,357 — — 457 1,814 Construction 194 — — 42 236 Commercial and industrial 191 — 3 (72) 122 Consumer and other 33 — — (5) 28 Unallocated 153 — — 399 552 Total $ 3,145 $ — $ 3 $ 639 $ 3,787 The following tables present a breakdown of the provision for credit losses for the periods indicated (in thousands): Three Months Ended September 30, 2023 2022 Provision for credit losses: Provision for loans $ 153 $ 346 Recovery for unfunded commitments (13) — Total provision for credit losses $ 140 $ 346 Nine Months Ended September 30, 2023 2022 Provision for credit losses: Provision for loans $ 602 $ 639 Recovery for unfunded commitments (32) — Total provision for credit losses $ 570 $ 639 The following tables present the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses as of September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 Nonaccural Nonaccrual With No ACL Real estate: One- to four-family residential $ 175 $ 175 Commercial 419 419 Commercial and industrial 220 220 Total $ 814 $ 814 December 31, 2022 Nonaccural Nonaccrual With No ALL Real estate: One- to four-family residential $ 330 $ 330 Commercial 416 416 Construction 147 — Commercial and industrial 156 156 Total $ 1,049 $ 902 The following table presents the amortized cost basis of collateral-dependent loans to borrowers experiencing financial difficulty by loan class as of September 30, 2023 (in thousands): September 30, 2023 Total Real Estate Non-Real Estate Collateral Allowance for Secured Secured Dependent Credit Losses- Loans Loans Loans Loans Real estate: One- to four-family residential $ 508 $ — $ 508 $ — Commercial 1,078 — 1,078 — Construction — — — — Commercial and industrial 220 — 220 — Consumer and other — — — — Total $ 1,806 $ — $ 1,806 $ — A loan is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” loans include those characterized by the “distinct possibility” that the Company will sustain “some loss” if the deficiencies are not corrected. Loans classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Loans classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific allowance for credit losses is not warranted. Loans that do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as “special mention” by our management. Loans that are performing as agreed are classified as “pass”. The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of September 30, 2023 (in thousands); as well as gross charge-offs (in thousands) for the nine months ended September 30, 2023: Year of Origination Revolving Loans Revolving Converted to 2023 2022 2021 2020 2019 Prior Loans Term Loans Total Real estate: one- to four-family residential Pass $ 4,717 $ 17,852 $ 18,577 $ 13,272 $ 8,800 $ 32,582 $ 8,981 $ 1,246 $ 106,027 Special Mention — 471 — — — 592 — — 1,063 Substandard — — — — — 383 — — 383 Total real estate: one- to four-family residential $ 4,717 $ 18,323 $ 18,577 $ 13,272 $ 8,800 $ 33,557 $ 8,981 $ 1,246 $ 107,473 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate: commercial Pass $ 41,449 $ 44,965 $ 49,737 $ 22,522 $ 4,551 $ 19,891 $ 2,213 $ — $ 185,328 Special Mention — — — — — — — — — Substandard — — — — — 1,078 — — 1,078 Total real estate: commercial $ 41,449 $ 44,965 $ 49,737 $ 22,522 $ 4,551 $ 20,969 $ 2,213 $ — $ 186,406 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate: construction Pass $ 381 $ 7,667 $ 122 $ 119 $ — $ — $ 1,425 $ — $ 9,714 Special Mention — 98 — — — — — — 98 Substandard — — — — — — — — — Total real estate: construction $ 381 $ 7,765 $ 122 $ 119 $ — $ — $ 1,425 $ — $ 9,812 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Pass $ 619 $ 3,350 $ 1,643 $ 800 $ 102 $ 246 $ 9,958 $ 64 $ 16,782 Special Mention — — — — — — — — — Substandard 126 — — 94 — — — — 220 Total commercial and industrial $ 745 $ 3,350 $ 1,643 $ 894 $ 102 $ 246 $ 9,958 $ 64 $ 17,002 Current period gross charge-offs $ — $ — $ (144) $ — $ — $ — $ — $ — $ (144) Consumer and other Pass $ — $ 2,011 $ 2,000 $ 991 $ — $ — $ 4,794 $ — $ 9,796 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total consumer and other $ — $ 2,011 $ 2,000 $ 991 $ — $ — $ 4,794 $ — $ 9,796 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans, gross Pass $ 47,166 $ 75,845 $ 72,079 $ 37,704 $ 13,453 $ 52,719 $ 27,371 $ 1,310 $ 327,647 Special Mention — 569 — — — 592 — — 1,161 Substandard 126 — — 94 — 1,461 — — 1,681 Total loans, gross $ 47,292 $ 76,414 $ 72,079 $ 37,798 $ 13,453 $ 54,772 $ 27,371 $ 1,310 $ 330,489 Current period gross charge-offs $ — $ — $ (144) $ — $ — $ — $ — $ — $ (144) The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2022 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 109,236 $ 607 $ 544 $ — $ 110,387 Commercial 146,999 — 1,568 — 148,567 Construction 20,259 — 147 — 20,406 Commercial and industrial 17,472 — 402 — 17,874 Consumer and other 8,203 — — — 8,203 Total loans, gross $ 302,169 $ 607 $ 2,661 $ — $ 305,437 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of September 30, 2023 (in thousands): Loans Receivable Total 90 or More 30‑59 Days 60‑89 Days 90 or More Total Past Loans Days and Past Due Past Due Days Past Due Due Current Receivable and Accruing Real estate: One- to four-family residential $ 90 $ 34 $ 29 $ 153 $ 107,320 $ 107,473 $ — Commercial 609 — — 609 185,797 186,406 — Construction 98 — — 98 9,714 9,812 — Commercial and industrial — — — — 17,002 17,002 — Consumer and other — — — — 9,796 9,796 — Total loans, gross $ 797 $ 34 $ 29 $ 860 $ 329,629 $ 330,489 $ — The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2022 (in thousands): Loans Receivable Total 90 or More 30‑59 Days 60‑89 Days 90 or More Total Past Loans Days and Past Due Past Due Days Past Due Due Current Receivable and Accruing Real estate: One- to four-family residential $ 382 $ — $ 33 $ 415 $ 109,972 $ 110,387 $ — Commercial — — 416 416 148,151 148,567 — Construction — — 147 147 20,259 20,406 — Commercial and industrial — — 156 156 17,718 17,874 — Consumer and other — — — — 8,203 8,203 — Total loans, gross $ 382 $ — $ 752 $ 1,134 $ 304,303 $ 305,437 $ — The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan. The Company may modify loans through rate reductions, extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers’ operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. The Company identifies loans for potential modification primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future. No loans were modified during the three and nine months ended September 30, 2023 and 2022 to borrowers experiencing financial difficulty. The Company closely monitors the performance of modified loans to understand the effectiveness of its modification efforts. Upon the determination that all or a portion of a modified loan is uncollectible, that amount is charged against the allowance for credit losses. There were no payment defaults during the three and nine months ended September 30, 2023 and 2022 of modified loans. At September 30, 2023 and December 31, 2022, there was no other real estate owned. There was no real estate in process of foreclosure as of September 30, 2023 and December 31, 2022. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Leases | 5. Leases On January 1, 2022, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. The implementation of the new standard resulted in recognition of right-of-use assets and lease liabilities Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases as of September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands): September 30, December 31, 2023 2022 Right-to-use assets $ 877 953 Lease liability $ 838 910 Weighted average remaining lease term 12.38 years 12.67 years Weighted average discount rate 4.57 % 4.43 % Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Operating lease cost $ 24 $ 15 $ 73 $ 47 Short-term lease cost 20 — 61 — Total lease costs $ 44 $ 15 $ 134 $ 47 Cash paid for amounts included in the measurement of lease liabilities $ 33 $ 16 $ 99 $ 48 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: As of September 30, Lease payments due (in thousands): 2023 Three months ending December 31, 2023 $ 33 2024 130 2025 122 2026 70 2027 66 Thereafter 713 Total undiscounted cash flows 1,134 Discount 296 Lease Liability $ 838 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Borrowings | |
Borrowings | 6. Borrowings The Company has an unsecured line of credit with Atlantic Community Bankers Bank (“ACBB”) of up to $7,500,000, expiring on June 30, 2024, which it intends to renew annually. Interest on the line of credit is charged at fed funds rate plus 0.25%. The Company had no outstanding borrowings under the ACBB line of credit at September 30, 2023 and December 31, 2022. The Company has an unsecured line of credit with SouthState Bank, N.A. of up to $5,000,000. There were no borrowings outstanding under the SouthState Bank, N.A. line of credit at September 30, 2023. The Company also has the ability to borrow up to $2,000,000 through the Federal Reserve Bank’s discount window. Funds obtained through the discount window are secured by the Company’s U.S. Government and agency obligations. There were no borrowings outstanding through the discount window at September 30, 2023 and December 31, 2022. The Company has an open-ended line of credit (short-term borrowing) of $45,630,000 to obtain advances from the Federal Home Loan Bank (“FHLB”). Interest on the line of credit is charged at the FHLB’s overnight rate of 5.68% and 4.45% at September 30, 2023 and December 31, 2022 respectively. The Company had no outstanding borrowings under this line of credit at September 30, 2023 and December 31, 2022. Maximum borrowing capacity with the FHLB was approximately $168,828,000 and $155,601,000 at September 30, 2023 and December 31, 2022, respectively. The Company had three unfunded letters of credit with the FHLB for $14,150,000 at September 30, 2023 and two letters of credit with FHLB that totaled $8,300,000 at December 31, 2022 that were pledged to secure public funds. Borrowings from the FHLB at September 30, 2023 and December 31, 2022 consist of the following (dollars in thousands): September 30, December 31, 2023 2022 Weighted Weighted Maturity Amount Rate Amount Rate 2023 $ 2,500 4.48 % $ 11,057 3.16 % 2024 11,500 5.34 11,500 4.55 2026 1,946 1.32 2,559 1.32 2027 19,500 2.69 19,500 2.69 2028 13,650 4.00 — — 2032 2,791 1.83 3,022 1.83 Total borrowings $ 51,887 3.61 % $ 47,638 3.12 % |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | 9 Months Ended |
Sep. 30, 2023 | |
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | |
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | 7. Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Company had the following off-balance sheet financial instruments whose contract amounts represent credit risk at September 30, 2023 and December 31, 2022 (in thousands): September 30, December 31, 2023 2022 Commitments to grant loans $ 32,995 $ 41,154 Unfunded commitments under lines of credit 12,830 11,520 Standby letters of credit 2,766 3,029 Total off-balance sheet financial instruments $ 48,591 $ 55,703 Outstanding loan commitments represent the unused portion of loan commitments available to individuals and companies as long as there is no violation of any condition established in the contract. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based upon management’s credit evaluation of the customer. Various types of collateral may be held, including property and marketable securities. The credit risk involved in these financial instruments is essentially the same as that involved in extending loan facilities to customers. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Contingencies | |
Contingencies | 8. Contingencies In the normal course of business, the Company is subject to various lawsuits involving matters generally incidental to its business. As of September 30, 2023, management is of the opinion that the ultimate liability, if any, resulting from any pending actions or proceedings will not have a material effect on the consolidated statement of financial condition or of operations of the Company. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | 9. Stock-Based Compensation The Company’s stockholders approved the PB Bankshares, Inc. 2022 Equity Incentive Plan (the “2022 Equity Incentive Plan”) at the Annual Meeting on September 28, 2022. An aggregate of 388,815 shares of authorized but unissued common stock of the Company was reserved for future grants of incentive and nonqualified stock options and restricted stock awards and restricted stock units under the 2022 Equity Incentive Plan. Of the 388,815 authorized shares, the maximum number of shares of the Company’s common stock that may be issued under the 2022 Equity Incentive Plan pursuant to the exercise of stock options is 277,725 shares, and the maximum number of shares of the Company’s common stock that may be issued as restricted stock awards or restricted stock units is 111,090 shares. The product of the number of shares granted and the grant date market price of the Company’s common stock determine the fair value of restricted stock under the Company’s 2022 Equity Incentive Plan. Management recognizes compensation expense for the fair value of restricted stock on a straight-line basis over the requisite service period for the entire award. As of September 30, 2023 and December 31, 2022, there were 13,628 and 14,628 shares available for future awards under this plan, respectively. The shares available for future award includes 10,653 and 11,653 shares available for incentive and non-qualified stock options as of September 30, 2023 and December 31, 2022, respectively, and 2,975 shares available for restricted stock awards as of those same dates. The stock options and restricted shares vest over a five-year period. Stock option expense was $71,000 and $208,000 for the three month and nine month periods ended September 30, 2023, respectively. At September 30, 2023, total unrecognized compensation cost related to stock options was $1,137,000. A summary of the Company’s stock option activity and related information for the three and nine month periods ended September 30, 2023 was as follows (dollars in thousands, except per share data): Three Months Ended September 30, 2023 Weighted-Average Remaining Weighted-Average Contractual Life Aggregate Intrinsic Options Exercise Price (in years) Value Outstanding, July 1, 2023 266,072 $ 12.28 9.38 $ — Granted 1,000 13.80 9.75 — Exercised — — — — Forfeited — — — — Outstanding, September 30, 2023 267,072 $ 12.29 9.13 $ 15 Exercisable, September 30, 2023 — $ — — $ — Nine Months Ended September 30, 2023 Weighted-Average Remaining Weighted-Average Contractual Life Aggregate Intrinsic Options Exercise Price (in years) Value Outstanding, January 1, 2023 266,072 $ 12.28 9.88 $ — Granted 1,000 13.80 9.75 — Exercised — — — — Forfeited — — — — Outstanding, September 30, 2023 267,072 $ 12.29 9.13 $ 15 Exercisable, September 30, 2023 — $ — — $ — Restricted stock expense was $67,000 and $198,000 for the three month and nine month periods ended September 30, 2023, respectively. At September 30, 2023, the unrecognized compensation expense relating to non-vested stock outstanding was $1,096,000. A summary of the Company’s restricted stock activity and related information for the three and nine month periods ended September 30, 2023, is as follows: Three Months Ended September 30, 2023 Weighted-Average Number of Grant Date Shares Fair Value Non-vested, July 1, 2023 108,115 $ 12.28 Granted — — Vested — — Forfeited — — Non-vested at September 30, 2023 108,115 $ 12.28 Nine Months Ended September 30, 2023 Weighted-Average Number of Grant Date Shares Fair Value Non-vested, January 1, 2023 108,115 $ 12.28 Granted — — Vested — — Forfeited — — Non-vested at September 30, 2023 108,115 $ 12.28 |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Regulatory Matters | 10. Regulatory Matters The Bank is subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of September 30, 2023, the Bank met all capital adequacy requirements to which it was subject. Prompt corrective action regulations provide five classifications; well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At September 30, 2023, the most recent regulatory notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets above the minimum but below the conservation buffer will face limitations on dividends, stock repurchases and certain discretionary bonus payments to management based on the amount of the shortfall. Under Basel III rules, banks must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The required capital conservation buffer is 2.50%. On January 1, 2023, the Company adopted ASC 326. Regulatory capital rules permitted the Bank to phase-in the day-one effects of adopting ASC 326 over a three-year transition period. The Bank elected not to take the phase-in but rather to reduce its regulatory capital in the first quarter of 2023 for the day-one effects of adopting ASC 326 in the amount of $140,000. The following tables present actual and required capital ratios as of September 30, 2023 under the Basel III Capital Rules. Bank capital levels required to be considered well capitalized are based upon prompt corrective action regulations. As of December 31, 2022 the Bank had elected the community bank leverage ratio framework (“CBLR” framework). Under the final rule, an eligible banking organization can opt out of the CBLR framework and revert back to the risk-weighting framework without restriction. As of September 30, 2023, the Bank was a qualifying community banking organization as defined by the federal banking agencies, but elected to revert back to the risk weighting framework without restriction. Actual and required capital amounts (in thousands) and ratios are presented below at quarter-end. To be Well Capitalized under For Capital Prompt Corrective Action September 30, 2023 Actual Adequacy Purposes Provisions Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 43,179 13.27 % $ 26,023 8.00 % $ 32,529 10.00 % Tier 1 capital (to risk-weighted assets) $ 39,112 12.02 % $ 19,518 6.00 % $ 26,023 8.00 % Common equity (to risk-weighted assets) $ 39,112 12.02 % $ 14,638 4.50 % $ 21,144 6.50 % Tier 1 capital (to average assets) $ 39,112 9.84 % $ 15,902 4.00 % $ 19,878 5.00 % To be Well Capitalized under Prompt Corrective Action December 31, 2022 Actual Provisions Amount Ratio Amount Ratio Tier 1 capital (to average assets) 37,987 10.00 % $ 33,998 9.00 % |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share | |
Earnings Per Share | 11. Earnings Per Share The factors used in the earning per share computation follow (dollars in thousands, except per share data): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Net income $ 513 $ 414 $ 1,510 $ 1,006 Weighted average common shares outstanding 2,643,955 2,762,919 2,687,605 2,772,420 Less: Average unearned ESOP shares (199,962) (211,071) (199,962) (211,071) Weighted average shares outstanding (basic) 2,443,993 2,551,848 2,487,643 2,561,349 Dilutive common stock equivalents 21,875 — 17,276 — Weighted average shares outstanding (diluted) 2,465,868 2,551,848 2,504,919 2,561,349 Basic earnings per common share $ 0.21 $ 0.16 $ 0.61 $ 0.39 Diluted earnings per common share $ 0.21 $ 0.16 $ 0.60 $ 0.39 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 12. Fair Value of Financial Instruments The Company groups its assets and liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. Fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is determined at a reasonable point within the range that is most representative of fair value under current market conditions. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective quarter ends, and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each quarter end. An asset’s or liability’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating fair value disclosures for its financial assets and liabilities: Debt and Equity Securities (Carried at Fair Value) The fair value of debt and equity securities (carried at fair value) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt and equity securities without relying exclusively on quoted market prices for the specific debt and equity securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Individually Evaluated Collateral Dependent Loans (Generally Carried at Fair Value) The estimated fair value of individually evaluated collateral dependent loans is based on the value of the underlying collateral or the value of the underlying collateral, less estimated cost to sell, as appropriate. Collateral is generally real estate; however, collateral may include vehicles, equipment, inventory, accounts receivable, and/or other assets. The value of real estate collateral is generally determined using a market valuation approach based on an appraisal conducted by an independent, licensed appraiser. The value of other assets may also be based on an appraisal, market quotations, aging schedules or other sources. Any fair value adjustments are recorded in the period incurred as a provision for credit losses on the Consolidated Statements of Income. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. At September 30, 2023, there were no individually evaluated collateral dependent loans with a specific reserve. At December 31, 2022, the fair value consisted of the recorded investment in the collateral dependent loans of $52,000, which was net of a valuation allowance of $95,000. Collateral dependent individually evaluated loans are included in Loans Receivable in the table below, which details the fair value of all the Company’s financial instruments. For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2023 and December 31, 2022 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs September 30, 2023 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 22,319 $ — $ 22,319 $ — Treasury securities 15,787 15,787 — — Mortgage-backed securities 86 — 86 — Collateralized mortgage obligations 2,475 — 2,475 — Mutual funds 752 752 — — Total assets measured at fair value on a recurring basis $ 41,419 $ 16,539 $ 24,880 $ — Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2022 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 19,117 $ — $ 19,117 $ — Treasury securities 29,819 29,819 — — Mortgage-backed securities 99 — 99 — Collateralized mortgage obligations 3,012 — 3,012 — Mutual funds 762 762 — — Total assets measured at fair value on a recurring basis $ 52,809 $ 30,581 $ 22,228 $ — For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2023 and December 31, 2022 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs September 30, 2023 Total (Level 1) (Level 2) (Level 3) Individually evaluated collateral dependent loans $ — $ — $ — $ — Total assets measured at fair value on a nonrecurring basis $ — $ — $ — $ — Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2022 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 52 $ — $ — $ 52 Total assets measured at fair value on a nonrecurring basis $ 52 $ — $ — $ 52 The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to measure fair value at September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Individually evaluated collateral dependent loans $ — Appraisal of collateral Selling expenses and discounts (1) N/A December 31, 2022 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 52 Appraisal of collateral Selling expenses and discounts (1) 68.4% (68.4%) (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The carrying amounts and fair values of the Company’s financial instruments as of the indicated dates are presented in the following table: September 30, 2023 December 31, 2022 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and cash equivalents 1 $ 25,185 $ 25,185 $ 17,204 $ 17,204 Debt securities - available-for-sale 1 & 2 40,667 40,667 52,047 52,047 Equity securities 1 752 752 762 762 Restricted stocks 2 2,464 2,464 2,251 2,251 Loans, net 3 325,350 320,626 300,855 303,108 Accrued interest receivable 1 1,327 1,327 1,123 1,123 Bank owned life insurance 2 8,178 8,178 7,487 7,487 Financial liabilities: Demand deposits, savings, and money market 1 190,154 190,154 176,370 176,370 Certificates of deposit 2 116,367 108,587 113,125 106,818 Borrowings 2 51,887 52,134 47,638 46,990 Accrued interest payable 1 699 699 424 424 |
Non-Interest Revenues
Non-Interest Revenues | 9 Months Ended |
Sep. 30, 2023 | |
Non-Interest Revenues | |
Non-Interest Revenues | 13. Noninterest Revenues Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investments. In addition, certain noninterest income streams such as gains on equity investments, income associated with bank owned life insurance, and loan fees are also not in scope of the guidance. Topic 606 is applicable to noninterest revenue streams such as service charges on deposit accounts and gains on sale of other real estate owned. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Fees on Deposit Accounts Service charges on deposit accounts consist of fees on depository accounts, which includes NSF fees, miscellaneous deposit-based service fees, monthly maintenance fees for consumer and commercial, and account analysis and related fees (commercial). Service charges and fees charged daily are a result of an event or service being provided on the day with the Company recognizing the revenue on the same day. The Company has determined that all performance obligations for daily service charges and fees are met on the same day as the transaction and, therefore, should be recognized as these occur. Monthly maintenance/service charges and fees are charged on the last day of the month (i.e. the same month as charges are incurred) after the system has completed its processing. The Company has determined that all performance obligations for monthly fees are typically met during the month or the same day as the customer has not met its obligation. As monthly fees are typically incurred by the customer throughout the month, the fees should be recognized upon completion of the month since the performance obligations have been met for those services. Account analysis service charges and fees are recorded on a monthly basis on the last day of the month. The Company has determined that all performance obligations for account analysis fees are met during the month. Debit Card Income Debit card income consists of interchange fees from consumer debit card networks and other card related services. Interchange rates are set by the card networks. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur. Gains on Sale of Other Real Estate Owned The sale of other real estate owned is currently recognized on the closing date of sale when all performance obligations have been met, and control of the asset has been transferred to the buyer. Any gains are included in noninterest expenses in the consolidated statements of income. For the Company, there are no other material revenue streams within the scope of Topic 606. The following table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Noninterest income in scope of Topic 606 2023 2022 2023 2022 Service charges on deposit accounts $ 39 $ 40 $ 130 $ 136 Debit card income 59 51 165 149 Other service charges 20 19 87 55 Loss on sale of premises and equipment — — (40) — Other noninterest income 41 20 123 39 Noninterest income (in scope for Topic 606) 159 130 465 379 Noninterest income (out of scope for Topic 606) 26 11 117 31 Total noninterest income $ 185 $ 141 $ 582 $ 410 Contract Balances A contract assets balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transaction activity, or standard month-end revenue accruals. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2023 and December 31, 2022, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize as an expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the assets that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606 the Company did not capitalize any contract acquisition cost. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation | |
Organization and Nature of Operations | Organization and Nature of Operations PB Bankshares, Inc., a Maryland corporation (the “Company”) is the holding company of Presence Bank (the “Bank”) and was formed in connection with the conversion of the Bank from the mutual to the stock form of organization. On July 14, 2021, the mutual to stock conversion of the Bank was completed and the Company became the parent holding company for the Bank. Shares of the Company began trading on the Nasdaq Capital Market on July 15, 2021. The Company is subject to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Bank”). The Bank is a state-chartered savings bank established in 1919. The main office is located in Coatesville, Pennsylvania with three other branches located in New Holland, Oxford, and Georgetown, Pennsylvania. The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans primarily secured by real estate and, to a lesser extent, consumer loans. The Bank competes with other banking and financial institutions in its primary market communities encompassing Chester, Cumberland, Dauphin, Lancaster, and Lebanon Counties in Pennsylvania. The Bank is regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Pennsylvania Department of Banking and Securities (the “PADOB”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include accounts of the Company and its wholly-owned subsidiary, the Bank. The Bank also includes the accounts of CSB Investments, Inc. (“CSB”), a wholly-owned subsidiary of the Bank located in Wilmington, Delaware. The sole purpose of CSB is to maintain and manage the Bank’s investment portfolio. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Interim Financial Information | Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to the Securities and Exchange Commission’s Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary (consisting only of normal recurring accruals) for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2023 are not necessarily indicative of the results for the year ending December 31, 2023 or any other interim periods. For further information, refer to the audited consolidated financial statements and notes thereto for the year ended December 31, 2022 as filed in the annual report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2023. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses on loans, the valuation of deferred tax assets, and estimation of fair values. While management uses available information to recognize estimated losses on loans, future additions to the allowance for credit losses may be necessary based on changes in economic conditions and underlying collateral values, if any. In addition, the FDIC and PADOB, as an integral part of their examination process, periodically review the Bank’s allowance for credit losses. These agencies may require the Bank to recognize additions to the allowance based on their judgments of information available to them at the time of their examinations. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
ASU 2016-13 | |
Recent Accounting Pronouncements | |
Schedule of impact of adopting ASC 326 | The following table illustrates the impact of adopting ASC 326 (in thousands): December 31, 2022 January 1, 2023 January 1, 2023 As Previously As Reported Reported Impact of Under (Incurred Loss) ASC 326 ASC 326 Assets: Loans, net $ 300,855 $ — $ 300,855 Deferred income taxes, net 1,656 37 1,693 Liabilities: Reserve for credit losses on unfunded commitments — 177 177 Total equity: $ 45,987 $ (140) $ 45,847 |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt and Equity Securities | |
Schedule of amortized cost, gross unrealized gains and losses and fair value securities available-for-sale and equity securities | The amortized cost, gross unrealized gains and losses, and fair value of securities available-for-sale and equity securities are as follows (in thousands): Gross Unrealized Gross Unrealized September 30, 2023 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 24,243 $ — $ (1,924) $ 22,319 Treasury securities 15,816 — (29) 15,787 Mortgage-backed securities 86 1 (1) 86 Collateralized mortgage obligations 2,763 — (288) 2,475 Total available-for-sale debt securities $ 42,908 $ 1 $ (2,242) $ 40,667 Equity securities: Mutual funds (fixed income) $ 752 Gross Unrealized Gross Unrealized December 31, 2022 Amortized Cost Gains Losses Fair Value Debt securities: Agency bonds $ 21,243 $ — $ (2,126) $ 19,117 Treasury securities 29,859 2 (42) 29,819 Mortgage-backed securities 97 2 — 99 Collateralized mortgage obligations 3,293 — (281) 3,012 Total available-for-sale debt securities $ 54,492 $ 4 $ (2,449) $ 52,047 Equity securities: Mutual funds (fixed income) $ 762 |
Schedule of length of time individual available-for-sale securities in a continuous unrealized loss position | The table below indicates the length of time individual available-for-sale securities have been in a continuous unrealized loss position at September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ 2,994 $ (4) $ 19,325 $ (1,920) $ 22,319 $ (1,924) Treasury securities 15,787 (29) — — 15,787 (29) Mortgage-backed securities 59 (1) — — 59 (1) Collateralized mortgage obligations — — 2,475 (288) 2,475 (288) Total $ 18,840 $ (34) $ 21,800 $ (2,208) $ 40,640 $ (2,242) December 31, 2022 Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ — $ — $ 19,117 $ (2,126) $ 19,117 $ (2,126) Treasury securities 9,928 (42) — — 9,928 (42) Collateralized mortgage obligations 1,479 (106) 1,533 (175) 3,012 (281) Total $ 11,407 $ (148) $ 20,650 $ (2,301) $ 32,057 $ (2,449) |
Schedule of debt securities by contractual maturity | The amortized cost and fair value of debt securities available-for-sale at September 30, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands). Available-for-Sale Amortized Cost Fair Value Yield Due less than one year $ 16,828 $ 16,801 5.32 % Due one year through five years 23,231 21,305 2.81 Due after five years through ten years — — — Mortgage-backed securities 86 86 5.09 Collateralized mortgage obligations 2,763 2,475 1.94 Total available-for-sale debt securities $ 42,908 $ 40,667 2.75 % |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans Receivable and Allowance for Credit Losses | |
Summary of major classifications of net loans receivable | Major classifications of net loans receivable at September 30, 2023 and December 31, 2022 are as follows (in thousands): September 30, December 31, 2023 2022 Real estate: One-to four-family residential $ 107,473 $ 110,387 Commercial 186,406 148,567 Construction 9,812 20,406 Commercial and industrial 17,002 17,874 Consumer and other 9,796 8,203 330,489 305,437 Deferred loan fees, net (671) (590) Allowance for credit losses (4,468) (3,992) Total loans receivable, net $ 325,350 $ 300,855 |
Schedule of activity in the allowance for credit losses by loan class | The following table summarizes the activity in the allowance for credit losses - loans by loan class for the three months ended September 30, 2023 (in thousands): Allowance for Credit Losses - Loans Provisions for Credit Beginning Losses - Ending Balance Charge-offs Recoveries Loans Balance Real Estate: One- to four-family residential $ 1,233 $ — $ — $ 136 $ 1,369 Commercial 2,354 — — 213 2,567 Construction 138 — — (40) 98 Commercial and industrial 209 — 1 21 231 Consumer and other 112 — — 3 115 Unallocated 268 — — (180) 88 $ 4,314 $ — $ 1 $ 153 $ 4,468 The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended September 30, 2022 (in thousands): Allowance for Loan Losses Beginning Provisions Ending Balance Charge-offs Recoveries (Recovery) Balance Real Estate: One- to four-family residential $ 1,012 $ — $ — $ 23 $ 1,035 Commercial 1,933 — — (119) 1,814 Construction 212 — — 24 236 Commercial and industrial 109 — 2 11 122 Consumer and other 28 — — — 28 Unallocated 145 — — 407 552 $ 3,439 $ — $ 2 $ 346 $ 3,787 The following table summarizes the activity in the allowance for credit losses - loans by loan class for the nine months ended September 30, 2023 (in thousands): Allowance for Credit Losses - Loans Beginning Balance Provisions Prior to Impact of for Credit Adoption of Adoption of Losses - Ending ASC 326 ASC 326 Charge-offs Recoveries Loans Balance Real Estate: One- to four-family residential $ 1,156 $ 45 $ — $ 15 $ 153 $ 1,369 Commercial 1,829 75 — — 663 2,567 Construction 316 (34) — — (184) 98 Commercial and industrial 308 (84) (144) 3 148 231 Consumer and other 87 3 — — 25 115 Unallocated 296 (5) — — (203) 88 Total $ 3,992 $ — $ (144) $ 18 $ 602 $ 4,468 The following table summarizes the activity in the allowance for loan losses by loan class for the nine months ended September 30, 2022 (in thousands): Allowance for Loan Losses Beginning Provisions Ending Balance Charge-offs Recoveries (Recovery) Balance Real Estate: One- to four-family residential $ 1,217 $ — $ — $ (182) $ 1,035 Commercial 1,357 — — 457 1,814 Construction 194 — — 42 236 Commercial and industrial 191 — 3 (72) 122 Consumer and other 33 — — (5) 28 Unallocated 153 — — 399 552 Total $ 3,145 $ — $ 3 $ 639 $ 3,787 |
Summary of impaired loans by loan portfolio | The following tables present a breakdown of the provision for credit losses for the periods indicated (in thousands): Three Months Ended September 30, 2023 2022 Provision for credit losses: Provision for loans $ 153 $ 346 Recovery for unfunded commitments (13) — Total provision for credit losses $ 140 $ 346 Nine Months Ended September 30, 2023 2022 Provision for credit losses: Provision for loans $ 602 $ 639 Recovery for unfunded commitments (32) — Total provision for credit losses $ 570 $ 639 |
Schedule of nonaccrual loans by classes of the loan portfolio | The following tables present the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses as of September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 Nonaccural Nonaccrual With No ACL Real estate: One- to four-family residential $ 175 $ 175 Commercial 419 419 Commercial and industrial 220 220 Total $ 814 $ 814 December 31, 2022 Nonaccural Nonaccrual With No ALL Real estate: One- to four-family residential $ 330 $ 330 Commercial 416 416 Construction 147 — Commercial and industrial 156 156 Total $ 1,049 $ 902 |
Schedule of amortized cost basis of collateral-dependent loans by loan class | The following table presents the amortized cost basis of collateral-dependent loans to borrowers experiencing financial difficulty by loan class as of September 30, 2023 (in thousands): September 30, 2023 Total Real Estate Non-Real Estate Collateral Allowance for Secured Secured Dependent Credit Losses- Loans Loans Loans Loans Real estate: One- to four-family residential $ 508 $ — $ 508 $ — Commercial 1,078 — 1,078 — Construction — — — — Commercial and industrial 220 — 220 — Consumer and other — — — — Total $ 1,806 $ — $ 1,806 $ — |
Summary of classes of the loan portfolio by Bank's internal risk rating system | A loan is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” loans include those characterized by the “distinct possibility” that the Company will sustain “some loss” if the deficiencies are not corrected. Loans classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Loans classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific allowance for credit losses is not warranted. Loans that do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as “special mention” by our management. Loans that are performing as agreed are classified as “pass”. The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of September 30, 2023 (in thousands); as well as gross charge-offs (in thousands) for the nine months ended September 30, 2023: Year of Origination Revolving Loans Revolving Converted to 2023 2022 2021 2020 2019 Prior Loans Term Loans Total Real estate: one- to four-family residential Pass $ 4,717 $ 17,852 $ 18,577 $ 13,272 $ 8,800 $ 32,582 $ 8,981 $ 1,246 $ 106,027 Special Mention — 471 — — — 592 — — 1,063 Substandard — — — — — 383 — — 383 Total real estate: one- to four-family residential $ 4,717 $ 18,323 $ 18,577 $ 13,272 $ 8,800 $ 33,557 $ 8,981 $ 1,246 $ 107,473 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate: commercial Pass $ 41,449 $ 44,965 $ 49,737 $ 22,522 $ 4,551 $ 19,891 $ 2,213 $ — $ 185,328 Special Mention — — — — — — — — — Substandard — — — — — 1,078 — — 1,078 Total real estate: commercial $ 41,449 $ 44,965 $ 49,737 $ 22,522 $ 4,551 $ 20,969 $ 2,213 $ — $ 186,406 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate: construction Pass $ 381 $ 7,667 $ 122 $ 119 $ — $ — $ 1,425 $ — $ 9,714 Special Mention — 98 — — — — — — 98 Substandard — — — — — — — — — Total real estate: construction $ 381 $ 7,765 $ 122 $ 119 $ — $ — $ 1,425 $ — $ 9,812 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Pass $ 619 $ 3,350 $ 1,643 $ 800 $ 102 $ 246 $ 9,958 $ 64 $ 16,782 Special Mention — — — — — — — — — Substandard 126 — — 94 — — — — 220 Total commercial and industrial $ 745 $ 3,350 $ 1,643 $ 894 $ 102 $ 246 $ 9,958 $ 64 $ 17,002 Current period gross charge-offs $ — $ — $ (144) $ — $ — $ — $ — $ — $ (144) Consumer and other Pass $ — $ 2,011 $ 2,000 $ 991 $ — $ — $ 4,794 $ — $ 9,796 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total consumer and other $ — $ 2,011 $ 2,000 $ 991 $ — $ — $ 4,794 $ — $ 9,796 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans, gross Pass $ 47,166 $ 75,845 $ 72,079 $ 37,704 $ 13,453 $ 52,719 $ 27,371 $ 1,310 $ 327,647 Special Mention — 569 — — — 592 — — 1,161 Substandard 126 — — 94 — 1,461 — — 1,681 Total loans, gross $ 47,292 $ 76,414 $ 72,079 $ 37,798 $ 13,453 $ 54,772 $ 27,371 $ 1,310 $ 330,489 Current period gross charge-offs $ — $ — $ (144) $ — $ — $ — $ — $ — $ (144) The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2022 (in thousands): Pass Special Mention Substandard Doubtful Total Real estate: One- to four-family residential $ 109,236 $ 607 $ 544 $ — $ 110,387 Commercial 146,999 — 1,568 — 148,567 Construction 20,259 — 147 — 20,406 Commercial and industrial 17,472 — 402 — 17,874 Consumer and other 8,203 — — — 8,203 Total loans, gross $ 302,169 $ 607 $ 2,661 $ — $ 305,437 |
Summary of classes of the loan portfolio by the past due status | The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of September 30, 2023 (in thousands): Loans Receivable Total 90 or More 30‑59 Days 60‑89 Days 90 or More Total Past Loans Days and Past Due Past Due Days Past Due Due Current Receivable and Accruing Real estate: One- to four-family residential $ 90 $ 34 $ 29 $ 153 $ 107,320 $ 107,473 $ — Commercial 609 — — 609 185,797 186,406 — Construction 98 — — 98 9,714 9,812 — Commercial and industrial — — — — 17,002 17,002 — Consumer and other — — — — 9,796 9,796 — Total loans, gross $ 797 $ 34 $ 29 $ 860 $ 329,629 $ 330,489 $ — The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2022 (in thousands): Loans Receivable Total 90 or More 30‑59 Days 60‑89 Days 90 or More Total Past Loans Days and Past Due Past Due Days Past Due Due Current Receivable and Accruing Real estate: One- to four-family residential $ 382 $ — $ 33 $ 415 $ 109,972 $ 110,387 $ — Commercial — — 416 416 148,151 148,567 — Construction — — 147 147 20,259 20,406 — Commercial and industrial — — 156 156 17,718 17,874 — Consumer and other — — — — 8,203 8,203 — Total loans, gross $ 382 $ — $ 752 $ 1,134 $ 304,303 $ 305,437 $ — |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule of information about leases | The following tables present information about the Company’s leases as of September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands): September 30, December 31, 2023 2022 Right-to-use assets $ 877 953 Lease liability $ 838 910 Weighted average remaining lease term 12.38 years 12.67 years Weighted average discount rate 4.57 % 4.43 % Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Operating lease cost $ 24 $ 15 $ 73 $ 47 Short-term lease cost 20 — 61 — Total lease costs $ 44 $ 15 $ 134 $ 47 Cash paid for amounts included in the measurement of lease liabilities $ 33 $ 16 $ 99 $ 48 |
Schedule of maturity analysis of operating lease liabilities | As of September 30, Lease payments due (in thousands): 2023 Three months ending December 31, 2023 $ 33 2024 130 2025 122 2026 70 2027 66 Thereafter 713 Total undiscounted cash flows 1,134 Discount 296 Lease Liability $ 838 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Borrowings | |
Schedule of borrowings maturity | Borrowings from the FHLB at September 30, 2023 and December 31, 2022 consist of the following (dollars in thousands): September 30, December 31, 2023 2022 Weighted Weighted Maturity Amount Rate Amount Rate 2023 $ 2,500 4.48 % $ 11,057 3.16 % 2024 11,500 5.34 11,500 4.55 2026 1,946 1.32 2,559 1.32 2027 19,500 2.69 19,500 2.69 2028 13,650 4.00 — — 2032 2,791 1.83 3,022 1.83 Total borrowings $ 51,887 3.61 % $ 47,638 3.12 % |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | |
Schedule of off-balance sheet financial instruments whose contract amounts represent credit risk | The Company had the following off-balance sheet financial instruments whose contract amounts represent credit risk at September 30, 2023 and December 31, 2022 (in thousands): September 30, December 31, 2023 2022 Commitments to grant loans $ 32,995 $ 41,154 Unfunded commitments under lines of credit 12,830 11,520 Standby letters of credit 2,766 3,029 Total off-balance sheet financial instruments $ 48,591 $ 55,703 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation | |
Schedule of stock option activity | A summary of the Company’s stock option activity and related information for the three and nine month periods ended September 30, 2023 was as follows (dollars in thousands, except per share data): Three Months Ended September 30, 2023 Weighted-Average Remaining Weighted-Average Contractual Life Aggregate Intrinsic Options Exercise Price (in years) Value Outstanding, July 1, 2023 266,072 $ 12.28 9.38 $ — Granted 1,000 13.80 9.75 — Exercised — — — — Forfeited — — — — Outstanding, September 30, 2023 267,072 $ 12.29 9.13 $ 15 Exercisable, September 30, 2023 — $ — — $ — Nine Months Ended September 30, 2023 Weighted-Average Remaining Weighted-Average Contractual Life Aggregate Intrinsic Options Exercise Price (in years) Value Outstanding, January 1, 2023 266,072 $ 12.28 9.88 $ — Granted 1,000 13.80 9.75 — Exercised — — — — Forfeited — — — — Outstanding, September 30, 2023 267,072 $ 12.29 9.13 $ 15 Exercisable, September 30, 2023 — $ — — $ — |
Schedule of restricted stock activity | Three Months Ended September 30, 2023 Weighted-Average Number of Grant Date Shares Fair Value Non-vested, July 1, 2023 108,115 $ 12.28 Granted — — Vested — — Forfeited — — Non-vested at September 30, 2023 108,115 $ 12.28 Nine Months Ended September 30, 2023 Weighted-Average Number of Grant Date Shares Fair Value Non-vested, January 1, 2023 108,115 $ 12.28 Granted — — Vested — — Forfeited — — Non-vested at September 30, 2023 108,115 $ 12.28 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Schedule of actual and required capital amounts and ratios | Actual and required capital amounts (in thousands) and ratios are presented below at quarter-end. To be Well Capitalized under For Capital Prompt Corrective Action September 30, 2023 Actual Adequacy Purposes Provisions Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 43,179 13.27 % $ 26,023 8.00 % $ 32,529 10.00 % Tier 1 capital (to risk-weighted assets) $ 39,112 12.02 % $ 19,518 6.00 % $ 26,023 8.00 % Common equity (to risk-weighted assets) $ 39,112 12.02 % $ 14,638 4.50 % $ 21,144 6.50 % Tier 1 capital (to average assets) $ 39,112 9.84 % $ 15,902 4.00 % $ 19,878 5.00 % To be Well Capitalized under Prompt Corrective Action December 31, 2022 Actual Provisions Amount Ratio Amount Ratio Tier 1 capital (to average assets) 37,987 10.00 % $ 33,998 9.00 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share | |
Schedule of factors used in earning per share computation | The factors used in the earning per share computation follow (dollars in thousands, except per share data): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Net income $ 513 $ 414 $ 1,510 $ 1,006 Weighted average common shares outstanding 2,643,955 2,762,919 2,687,605 2,772,420 Less: Average unearned ESOP shares (199,962) (211,071) (199,962) (211,071) Weighted average shares outstanding (basic) 2,443,993 2,551,848 2,487,643 2,561,349 Dilutive common stock equivalents 21,875 — 17,276 — Weighted average shares outstanding (diluted) 2,465,868 2,551,848 2,504,919 2,561,349 Basic earnings per common share $ 0.21 $ 0.16 $ 0.61 $ 0.39 Diluted earnings per common share $ 0.21 $ 0.16 $ 0.60 $ 0.39 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value of Financial Instruments | |
Schedule of assets measured at fair value on a recurring basis | For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2023 and December 31, 2022 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs September 30, 2023 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 22,319 $ — $ 22,319 $ — Treasury securities 15,787 15,787 — — Mortgage-backed securities 86 — 86 — Collateralized mortgage obligations 2,475 — 2,475 — Mutual funds 752 752 — — Total assets measured at fair value on a recurring basis $ 41,419 $ 16,539 $ 24,880 $ — Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2022 Total (Level 1) (Level 2) (Level 3) Agency bonds $ 19,117 $ — $ 19,117 $ — Treasury securities 29,819 29,819 — — Mortgage-backed securities 99 — 99 — Collateralized mortgage obligations 3,012 — 3,012 — Mutual funds 762 762 — — Total assets measured at fair value on a recurring basis $ 52,809 $ 30,581 $ 22,228 $ — |
Schedule of assets measured at fair value on a nonrecurring basis | For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2023 and December 31, 2022 are as follows (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs September 30, 2023 Total (Level 1) (Level 2) (Level 3) Individually evaluated collateral dependent loans $ — $ — $ — $ — Total assets measured at fair value on a nonrecurring basis $ — $ — $ — $ — Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2022 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 52 $ — $ — $ 52 Total assets measured at fair value on a nonrecurring basis $ 52 $ — $ — $ 52 |
Schedule of quantitative information about assets measured at fair value on a nonrecurring basis | The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to measure fair value at September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Individually evaluated collateral dependent loans $ — Appraisal of collateral Selling expenses and discounts (1) N/A December 31, 2022 Asset Description Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans $ 52 Appraisal of collateral Selling expenses and discounts (1) 68.4% (68.4%) (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Schedule of carrying amounts and fair values of the Bank's financial instruments | The carrying amounts and fair values of the Company’s financial instruments as of the indicated dates are presented in the following table: September 30, 2023 December 31, 2022 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and cash equivalents 1 $ 25,185 $ 25,185 $ 17,204 $ 17,204 Debt securities - available-for-sale 1 & 2 40,667 40,667 52,047 52,047 Equity securities 1 752 752 762 762 Restricted stocks 2 2,464 2,464 2,251 2,251 Loans, net 3 325,350 320,626 300,855 303,108 Accrued interest receivable 1 1,327 1,327 1,123 1,123 Bank owned life insurance 2 8,178 8,178 7,487 7,487 Financial liabilities: Demand deposits, savings, and money market 1 190,154 190,154 176,370 176,370 Certificates of deposit 2 116,367 108,587 113,125 106,818 Borrowings 2 51,887 52,134 47,638 46,990 Accrued interest payable 1 699 699 424 424 |
Non-Interest Revenues (Tables)
Non-Interest Revenues (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Non-Interest Revenues | |
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606 | The following table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Noninterest income in scope of Topic 606 2023 2022 2023 2022 Service charges on deposit accounts $ 39 $ 40 $ 130 $ 136 Debit card income 59 51 165 149 Other service charges 20 19 87 55 Loss on sale of premises and equipment — — (40) — Other noninterest income 41 20 123 39 Noninterest income (in scope for Topic 606) 159 130 465 379 Noninterest income (out of scope for Topic 606) 26 11 117 31 Total noninterest income $ 185 $ 141 $ 582 $ 410 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Sep. 30, 2023 item | |
Basis of Presentation | |
Number of branches | 3 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Recent Accounting Pronouncements | |||||||
Loans, net, Prior to adoption of ASC 326 | $ 300,855,000 | ||||||
Loans, net, Impact of / After adoption of ASC 326 | $ 325,350,000 | ||||||
Deferred income taxes, net | 1,826,000 | 1,656,000 | |||||
Total Stockholders' Equity | 46,582,000 | $ 46,177,000 | 45,987,000 | $ 44,618,000 | $ 45,161,000 | $ 45,834,000 | |
Retained earnings | 26,149,000 | 24,779,000 | |||||
Amount of allowance for credit loss on interest receivable | 0 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Recent Accounting Pronouncements | |||||||
Total Stockholders' Equity | $ (140,000) | ||||||
ASU 2016-13 | |||||||
Recent Accounting Pronouncements | |||||||
Loans, net, Prior to adoption of ASC 326 | 300,855,000 | ||||||
Deferred income taxes, net | 1,656,000 | ||||||
Total Stockholders' Equity | $ 45,987,000 | ||||||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Recent Accounting Pronouncements | |||||||
Deferred income taxes, net | $ 37,000 | ||||||
Reserve for credit losses on unfunded commitments | 177,000 | ||||||
Total Stockholders' Equity | (140,000) | ||||||
Retained earnings | (140,000) | ||||||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Recent Accounting Pronouncements | |||||||
Loans, net, Impact of / After adoption of ASC 326 | 300,855,000 | ||||||
Deferred income taxes, net | 1,693,000 | ||||||
Reserve for credit losses on unfunded commitments | 177,000 | ||||||
Total Stockholders' Equity | $ 45,847,000 |
Debt and Equity Securities - Am
Debt and Equity Securities - Amortized cost, gross unrealized gains and losses, and fair value of securities available-for-sale and equity securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt securities: | ||
Amortized cost | $ 42,908 | $ 54,492 |
Gross Unrealized Gains | 1 | 4 |
Gross Unrealized Losses | (2,242) | (2,449) |
Fair Value | 40,667 | 52,047 |
Equity Securities - Fair Value | 752 | 762 |
Agency bonds | ||
Debt securities: | ||
Amortized cost | 24,243 | 21,243 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,924) | (2,126) |
Fair Value | 22,319 | 19,117 |
Treasury securities | ||
Debt securities: | ||
Amortized cost | 15,816 | 29,859 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (29) | (42) |
Fair Value | 15,787 | 29,819 |
Mortgage-backed securities | ||
Debt securities: | ||
Amortized cost | 86 | 97 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 86 | 99 |
Collateralized mortgage obligations | ||
Debt securities: | ||
Amortized cost | 2,763 | 3,293 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (288) | (281) |
Fair Value | $ 2,475 | $ 3,012 |
Debt and Equity Securities - Le
Debt and Equity Securities - Length of time individual available-for-sale securities have been in a continuous unrealized loss position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 Months | $ 18,840 | $ 11,407 |
12 Months or More | 21,800 | 20,650 |
Total Fair Value | 40,640 | 32,057 |
Unrealized Losses | ||
Less than 12 Months | (34) | (148) |
12 Months or More | (2,208) | (2,301) |
Total Unrealized Losses | (2,242) | (2,449) |
Agency bonds | ||
Fair Value | ||
Less than 12 Months | 2,994 | 0 |
12 Months or More | 19,325 | 19,117 |
Total Fair Value | 22,319 | 19,117 |
Unrealized Losses | ||
Less than 12 Months | (4) | 0 |
12 Months or More | (1,920) | (2,126) |
Total Unrealized Losses | (1,924) | (2,126) |
Treasury securities | ||
Fair Value | ||
Less than 12 Months | 15,787 | 9,928 |
12 Months or More | 0 | 0 |
Total Fair Value | 15,787 | 9,928 |
Unrealized Losses | ||
Less than 12 Months | (29) | (42) |
12 Months or More | 0 | 0 |
Total Unrealized Losses | (29) | (42) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 59 | |
12 Months or More | 0 | |
Total Fair Value | 59 | |
Unrealized Losses | ||
Less than 12 Months | (1) | |
12 Months or More | 0 | |
Total Unrealized Losses | (1) | |
Collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 0 | 1,479 |
12 Months or More | 2,475 | 1,533 |
Total Fair Value | 2,475 | 3,012 |
Unrealized Losses | ||
Less than 12 Months | 0 | (106) |
12 Months or More | (288) | (175) |
Total Unrealized Losses | $ (288) | $ (281) |
Debt and Equity Securities - Na
Debt and Equity Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) security item | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) security item | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) item | |
Debt and Equity Securities | |||||
Securities sold | $ 0 | $ 0 | $ 0 | $ 0 | |
Allowance for credit losses | 0 | 0 | |||
Pledged to secure borrowings | 1,830,000 | 1,830,000 | $ 1,810,000 | ||
Pledged primarily for public fund depositors | $ 18,618,000 | $ 18,618,000 | $ 21,604,000 | ||
Private label mortgage-backed securities | |||||
Debt and Equity Securities | |||||
Number of debt securities available for sale | item | 0 | 0 | |||
Agency bonds | |||||
Debt and Equity Securities | |||||
Number of unrealized loss positions | security | 50 | 50 | |||
Treasury securities | |||||
Debt and Equity Securities | |||||
Number of unrealized loss positions | security | 5 | 5 | |||
Mortgage-backed securities | |||||
Debt and Equity Securities | |||||
Number of unrealized loss positions | security | 5 | 5 | |||
Collateralized mortgage obligations | |||||
Debt and Equity Securities | |||||
Number of debt securities available for sale | item | 0 | 0 | |||
Number of unrealized loss positions | item | 34 | 34 | 34 |
Debt and Equity Securities - Sc
Debt and Equity Securities - Schedule of debt securities by contractual maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available for sale securities, Amortized cost | ||
Due less than one year | $ 16,828 | |
Due one year through five years | 23,231 | |
Due after five years through ten years | 0 | |
Amortized cost | 42,908 | $ 54,492 |
Available for sale securities, Fair value | ||
Due less than one year | 16,801 | |
Due one year through five years | 21,305 | |
Due after five years through ten years | 0 | |
Fair Value | $ 40,667 | 52,047 |
Available for sale - yield | ||
Due less than one year - yield | 5.32% | |
Due one year through five years - yield | 2.81% | |
Due after five years through ten years - yield | 0% | |
Available for sale - weighted average yield | 2.75% | |
Mortgage-backed securities | ||
Available for sale securities, Amortized cost | ||
Amortized cost | $ 86 | |
Amortized cost | 86 | 97 |
Available for sale securities, Fair value | ||
Fair Value | 86 | |
Fair Value | $ 86 | 99 |
Available for sale - yield | ||
Available for sale - yield | 5.09% | |
Collateralized mortgage obligations | ||
Available for sale securities, Amortized cost | ||
Amortized cost | $ 2,763 | |
Amortized cost | 2,763 | 3,293 |
Available for sale securities, Fair value | ||
Fair Value | 2,475 | |
Fair Value | $ 2,475 | $ 3,012 |
Available for sale - yield | ||
Available for sale - yield | 1.94% |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Credit Losses - Major classifications of net loans receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans Receivable and Allowance for Credit Losses, After adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, After adoption of ASC 326 | $ 330,489 | |||||
Deferred loan fees, net, After adoption of ASC 326 | (671) | |||||
Allowance for credit losses, After adoption of ASC 326 | (4,468) | $ (4,314) | ||||
Loans, net, After adoption of ASC 326 | 325,350 | |||||
Loans Receivable and Allowance for Credit Losses, Prior to adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | $ 305,437 | |||||
Deferred loan fees, net, Prior to adoption of ASC 326 | (590) | |||||
Allowance for credit losses, Prior to adoption of ASC 326 | (3,992) | $ (3,787) | $ (3,439) | $ (3,145) | ||
Loans, net, Prior to adoption of ASC 326 | 300,855 | |||||
Real estate | One- to four-family residential | ||||||
Loans Receivable and Allowance for Credit Losses, After adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, After adoption of ASC 326 | 107,473 | |||||
Allowance for credit losses, After adoption of ASC 326 | (1,369) | (1,233) | ||||
Loans Receivable and Allowance for Credit Losses, Prior to adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 110,387 | |||||
Allowance for credit losses, Prior to adoption of ASC 326 | (1,156) | (1,035) | (1,012) | (1,217) | ||
Real estate | Commercial | ||||||
Loans Receivable and Allowance for Credit Losses, After adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, After adoption of ASC 326 | 186,406 | |||||
Allowance for credit losses, After adoption of ASC 326 | (2,567) | (2,354) | ||||
Loans Receivable and Allowance for Credit Losses, Prior to adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 148,567 | |||||
Allowance for credit losses, Prior to adoption of ASC 326 | (1,829) | (1,814) | (1,933) | (1,357) | ||
Real estate | Construction | ||||||
Loans Receivable and Allowance for Credit Losses, After adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, After adoption of ASC 326 | 9,812 | |||||
Allowance for credit losses, After adoption of ASC 326 | (98) | (138) | ||||
Loans Receivable and Allowance for Credit Losses, Prior to adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 20,406 | |||||
Allowance for credit losses, Prior to adoption of ASC 326 | (316) | (236) | (212) | (194) | ||
Commercial | Commercial and industrial | ||||||
Loans Receivable and Allowance for Credit Losses, After adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, After adoption of ASC 326 | 17,002 | |||||
Allowance for credit losses, After adoption of ASC 326 | (231) | (209) | ||||
Loans Receivable and Allowance for Credit Losses, Prior to adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 17,874 | |||||
Allowance for credit losses, Prior to adoption of ASC 326 | (308) | (122) | (109) | (191) | ||
Consumer loans | ||||||
Loans Receivable and Allowance for Credit Losses, After adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, After adoption of ASC 326 | 9,796 | |||||
Allowance for credit losses, After adoption of ASC 326 | $ (115) | $ (112) | ||||
Loans Receivable and Allowance for Credit Losses, Prior to adoption of ASC 326 | ||||||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 8,203 | |||||
Allowance for credit losses, Prior to adoption of ASC 326 | $ (87) | $ (28) | $ (28) | $ (33) |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Credit Losses - Allowance for credit losses by loan class (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | $ 4,314 | |||
Charge-offs, After adoption of ASC 326 | 0 | $ (144) | ||
Recoveries, After adoption of ASC 326 | 1 | 18 | ||
Provisions for Credit Losses - Loans, After adoption of ASC 326 | 153 | 602 | ||
Ending Balance, After adoption of ASC 326 | 4,468 | 4,468 | ||
Allowance for Loan and Lease Losses, Prior to adoption of ASC 326 | ||||
Beginning Balance, Prior to adoption of ASC 326 | $ 3,439 | 3,992 | $ 3,145 | |
Charge-offs, Prior to Adoption of ASC 326 | 0 | 0 | ||
Recoveries, Prior to Adoption of ASC 326 | 2 | 3 | ||
Provision for Credit Losses, Prior to Adoption of ASC 326 | 346 | 639 | ||
Ending Balance, Prior to adoption of ASC 326 | 3,787 | 3,787 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 0 | |||
Real estate | One- to four-family residential | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 1,233 | |||
Charge-offs, After adoption of ASC 326 | 0 | 0 | ||
Recoveries, After adoption of ASC 326 | 0 | 15 | ||
Provisions for Credit Losses - Loans, After adoption of ASC 326 | 136 | 153 | ||
Ending Balance, After adoption of ASC 326 | 1,369 | 1,369 | ||
Allowance for Loan and Lease Losses, Prior to adoption of ASC 326 | ||||
Beginning Balance, Prior to adoption of ASC 326 | 1,012 | 1,156 | 1,217 | |
Charge-offs, Prior to Adoption of ASC 326 | 0 | 0 | ||
Recoveries, Prior to Adoption of ASC 326 | 0 | 0 | ||
Provision for Credit Losses, Prior to Adoption of ASC 326 | 23 | (182) | ||
Ending Balance, Prior to adoption of ASC 326 | 1,035 | 1,035 | ||
Real estate | One- to four-family residential | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 45 | |||
Real estate | Commercial | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 2,354 | |||
Charge-offs, After adoption of ASC 326 | 0 | 0 | ||
Recoveries, After adoption of ASC 326 | 0 | 0 | ||
Provisions for Credit Losses - Loans, After adoption of ASC 326 | 213 | 663 | ||
Ending Balance, After adoption of ASC 326 | 2,567 | 2,567 | ||
Allowance for Loan and Lease Losses, Prior to adoption of ASC 326 | ||||
Beginning Balance, Prior to adoption of ASC 326 | 1,933 | 1,829 | 1,357 | |
Charge-offs, Prior to Adoption of ASC 326 | 0 | 0 | ||
Recoveries, Prior to Adoption of ASC 326 | 0 | 0 | ||
Provision for Credit Losses, Prior to Adoption of ASC 326 | (119) | 457 | ||
Ending Balance, Prior to adoption of ASC 326 | 1,814 | 1,814 | ||
Real estate | Commercial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 75 | |||
Real estate | Construction | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 138 | |||
Charge-offs, After adoption of ASC 326 | 0 | 0 | ||
Recoveries, After adoption of ASC 326 | 0 | 0 | ||
Provisions for Credit Losses - Loans, After adoption of ASC 326 | (40) | (184) | ||
Ending Balance, After adoption of ASC 326 | 98 | 98 | ||
Allowance for Loan and Lease Losses, Prior to adoption of ASC 326 | ||||
Beginning Balance, Prior to adoption of ASC 326 | 212 | 316 | 194 | |
Charge-offs, Prior to Adoption of ASC 326 | 0 | 0 | ||
Recoveries, Prior to Adoption of ASC 326 | 0 | 0 | ||
Provision for Credit Losses, Prior to Adoption of ASC 326 | 24 | 42 | ||
Ending Balance, Prior to adoption of ASC 326 | 236 | 236 | ||
Real estate | Construction | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | (34) | |||
Commercial | Commercial and industrial | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 209 | |||
Charge-offs, After adoption of ASC 326 | 0 | (144) | ||
Recoveries, After adoption of ASC 326 | 1 | 3 | ||
Provisions for Credit Losses - Loans, After adoption of ASC 326 | 21 | 148 | ||
Ending Balance, After adoption of ASC 326 | 231 | 231 | ||
Allowance for Loan and Lease Losses, Prior to adoption of ASC 326 | ||||
Beginning Balance, Prior to adoption of ASC 326 | 109 | 308 | 191 | |
Charge-offs, Prior to Adoption of ASC 326 | 0 | 0 | ||
Recoveries, Prior to Adoption of ASC 326 | 2 | 3 | ||
Provision for Credit Losses, Prior to Adoption of ASC 326 | 11 | (72) | ||
Ending Balance, Prior to adoption of ASC 326 | 122 | 122 | ||
Commercial | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | (84) | |||
Consumer loans | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 112 | |||
Charge-offs, After adoption of ASC 326 | 0 | 0 | ||
Recoveries, After adoption of ASC 326 | 0 | 0 | ||
Provisions for Credit Losses - Loans, After adoption of ASC 326 | 3 | 25 | ||
Ending Balance, After adoption of ASC 326 | 115 | 115 | ||
Allowance for Loan and Lease Losses, Prior to adoption of ASC 326 | ||||
Beginning Balance, Prior to adoption of ASC 326 | 28 | 87 | 33 | |
Charge-offs, Prior to Adoption of ASC 326 | 0 | 0 | ||
Recoveries, Prior to Adoption of ASC 326 | 0 | 0 | ||
Provision for Credit Losses, Prior to Adoption of ASC 326 | (5) | |||
Ending Balance, Prior to adoption of ASC 326 | 28 | 28 | ||
Consumer loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 3 | |||
Unallocated | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | 268 | |||
Charge-offs, After adoption of ASC 326 | 0 | 0 | ||
Recoveries, After adoption of ASC 326 | 0 | 0 | ||
Provisions for Credit Losses - Loans, After adoption of ASC 326 | (180) | (203) | ||
Ending Balance, After adoption of ASC 326 | $ 88 | 88 | ||
Allowance for Loan and Lease Losses, Prior to adoption of ASC 326 | ||||
Beginning Balance, Prior to adoption of ASC 326 | 145 | 296 | 153 | |
Charge-offs, Prior to Adoption of ASC 326 | 0 | 0 | ||
Recoveries, Prior to Adoption of ASC 326 | 0 | 0 | ||
Provision for Credit Losses, Prior to Adoption of ASC 326 | 407 | 399 | ||
Ending Balance, Prior to adoption of ASC 326 | $ 552 | $ 552 | ||
Unallocated | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, After adoption of ASC 326 | ||||
Beginning Balance, Impact of Adoption of ASC 326 | $ (5) |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Credit Losses - Provision for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Loans Receivable and Allowance for Credit Losses | ||||
Provisions for credit losses - loans, After adoption of ASC 326 | $ 153 | $ 602 | ||
Provision for credit losses, Prior to Adoption of ASC 326 | $ 346 | $ 639 | ||
Recovery for unfunded commitments | (13) | 0 | (32) | 0 |
Total provision for credit losses | $ 140 | $ 346 | $ 570 | $ 639 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Credit Losses - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) contract loan | Sep. 30, 2022 loan contract | Sep. 30, 2023 USD ($) loan contract | Sep. 30, 2022 contract loan | Dec. 31, 2022 USD ($) | |
Loans Receivable and Allowance for Credit Losses | |||||
Accrued interest receivable | $ 1.2 | $ 1.2 | |||
Number of loans modified as TDRs | loan | 0 | 0 | 0 | 0 | |
Number of TDR loans in default | contract | 0 | 0 | 0 | 0 | |
Other real estate owned that was related to residential real estate | $ 0 | $ 0 | $ 0 | ||
Residential real estate in process of foreclosure | $ 0 | $ 0 | $ 0 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Credit Losses - Nonaccrual loans by classes of the loan portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans Receivable and Allowance for Credit Losses | ||
Nonaccrual | $ 814 | |
Nonaccrual With No ACL | 814 | |
Nonaccrual loans | $ 1,049 | |
Nonaccrual With No ACL | 902 | |
Real estate | One- to four-family residential | ||
Loans Receivable and Allowance for Credit Losses | ||
Nonaccrual | 175 | |
Nonaccrual With No ACL | 175 | |
Nonaccrual loans | 330 | |
Nonaccrual With No ACL | 330 | |
Real estate | Commercial | ||
Loans Receivable and Allowance for Credit Losses | ||
Nonaccrual | 419 | |
Nonaccrual With No ACL | 419 | |
Nonaccrual loans | 416 | |
Nonaccrual With No ACL | 416 | |
Real estate | Construction | ||
Loans Receivable and Allowance for Credit Losses | ||
Nonaccrual loans | 147 | |
Nonaccrual With No ACL | 0 | |
Commercial | Commercial and industrial | ||
Loans Receivable and Allowance for Credit Losses | ||
Nonaccrual | 220 | |
Nonaccrual With No ACL | $ 220 | |
Nonaccrual loans | 156 | |
Nonaccrual With No ACL | $ 156 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Credit Losses - Collateral-dependent loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Loans Receivable and Allowance for Credit Losses | ||
Allowance for Credit Losses | $ 4,468 | $ 4,314 |
Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 1,806 | |
Non-Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 0 | |
Collateral Dependent | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 1,806 | |
Allowance for Credit Losses | 0 | |
Consumer loans | ||
Loans Receivable and Allowance for Credit Losses | ||
Allowance for Credit Losses | 115 | 112 |
Consumer loans | Non-Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 0 | |
Consumer loans | Collateral Dependent | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 0 | |
Allowance for Credit Losses | 0 | |
One- to four-family residential | Real estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Allowance for Credit Losses | 1,369 | 1,233 |
One- to four-family residential | Real estate | Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 508 | |
One- to four-family residential | Real estate | Non-Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 0 | |
One- to four-family residential | Real estate | Collateral Dependent | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 508 | |
Allowance for Credit Losses | 0 | |
Commercial | Real estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Allowance for Credit Losses | 2,567 | 2,354 |
Commercial | Real estate | Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 1,078 | |
Commercial | Real estate | Non-Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 0 | |
Commercial | Real estate | Collateral Dependent | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 1,078 | |
Allowance for Credit Losses | 0 | |
Construction | Real estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Allowance for Credit Losses | 98 | 138 |
Construction | Real estate | Non-Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 0 | |
Construction | Real estate | Collateral Dependent | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 0 | |
Allowance for Credit Losses | 0 | |
Commercial and industrial | Commercial | ||
Loans Receivable and Allowance for Credit Losses | ||
Allowance for Credit Losses | 231 | $ 209 |
Commercial and industrial | Commercial | Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 220 | |
Commercial and industrial | Commercial | Non-Real Estate | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 0 | |
Commercial and industrial | Commercial | Collateral Dependent | ||
Loans Receivable and Allowance for Credit Losses | ||
Total loans | 220 | |
Allowance for Credit Losses | $ 0 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Credit Losses - Loan Internal Risk Rating System (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | $ 305,437 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | $ 47,292 | $ 47,292 | |
2022 | 76,414 | 76,414 | |
2021 | 72,079 | 72,079 | |
2020 | 37,798 | 37,798 | |
2019 | 13,453 | 13,453 | |
Prior | 54,772 | 54,772 | |
Revolving Loans | 27,371 | 27,371 | |
Revolving Loans Converted to Term Loans | 1,310 | 1,310 | |
Total loans | 330,489 | 330,489 | |
Current period gross charge-offs, After adoption of ASC 326 | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | (144) | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | (144) | |
Pass | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 302,169 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 47,166 | 47,166 | |
2022 | 75,845 | 75,845 | |
2021 | 72,079 | 72,079 | |
2020 | 37,704 | 37,704 | |
2019 | 13,453 | 13,453 | |
Prior | 52,719 | 52,719 | |
Revolving Loans | 27,371 | 27,371 | |
Revolving Loans Converted to Term Loans | 1,310 | 1,310 | |
Total loans | 327,647 | 327,647 | |
Special Mention | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 607 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 569 | 569 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 592 | 592 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 1,161 | 1,161 | |
Substandard | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 2,661 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 126 | 126 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 94 | 94 | |
2019 | 0 | 0 | |
Prior | 1,461 | 1,461 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 1,681 | 1,681 | |
Doubtful | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Real estate | One- to four-family residential | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 110,387 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 4,717 | 4,717 | |
2022 | 18,323 | 18,323 | |
2021 | 18,577 | 18,577 | |
2020 | 13,272 | 13,272 | |
2019 | 8,800 | 8,800 | |
Prior | 33,557 | 33,557 | |
Revolving Loans | 8,981 | 8,981 | |
Revolving Loans Converted to Term Loans | 1,246 | 1,246 | |
Total loans | 107,473 | 107,473 | |
Current period gross charge-offs, After adoption of ASC 326 | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
Real estate | One- to four-family residential | Pass | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 109,236 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 4,717 | 4,717 | |
2022 | 17,852 | 17,852 | |
2021 | 18,577 | 18,577 | |
2020 | 13,272 | 13,272 | |
2019 | 8,800 | 8,800 | |
Prior | 32,582 | 32,582 | |
Revolving Loans | 8,981 | 8,981 | |
Revolving Loans Converted to Term Loans | 1,246 | 1,246 | |
Total loans | 106,027 | 106,027 | |
Real estate | One- to four-family residential | Special Mention | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 607 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 471 | 471 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 592 | 592 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 1,063 | 1,063 | |
Real estate | One- to four-family residential | Substandard | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 544 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 383 | 383 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 383 | 383 | |
Real estate | One- to four-family residential | Doubtful | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Real estate | Commercial | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 148,567 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 41,449 | 41,449 | |
2022 | 44,965 | 44,965 | |
2021 | 49,737 | 49,737 | |
2020 | 22,522 | 22,522 | |
2019 | 4,551 | 4,551 | |
Prior | 20,969 | 20,969 | |
Revolving Loans | 2,213 | 2,213 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 186,406 | 186,406 | |
Current period gross charge-offs, After adoption of ASC 326 | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
Real estate | Commercial | Pass | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 146,999 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 41,449 | 41,449 | |
2022 | 44,965 | 44,965 | |
2021 | 49,737 | 49,737 | |
2020 | 22,522 | 22,522 | |
2019 | 4,551 | 4,551 | |
Prior | 19,891 | 19,891 | |
Revolving Loans | 2,213 | 2,213 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 185,328 | 185,328 | |
Real estate | Commercial | Special Mention | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 0 | 0 | |
Real estate | Commercial | Substandard | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 1,568 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 1,078 | 1,078 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 1,078 | 1,078 | |
Real estate | Commercial | Doubtful | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Real estate | Construction | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 20,406 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 381 | 381 | |
2022 | 7,765 | 7,765 | |
2021 | 122 | 122 | |
2020 | 119 | 119 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 1,425 | 1,425 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 9,812 | 9,812 | |
Current period gross charge-offs, After adoption of ASC 326 | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
Real estate | Construction | Pass | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 20,259 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 381 | 381 | |
2022 | 7,667 | 7,667 | |
2021 | 122 | 122 | |
2020 | 119 | 119 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 1,425 | 1,425 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 9,714 | 9,714 | |
Real estate | Construction | Special Mention | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 98 | 98 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 98 | 98 | |
Real estate | Construction | Substandard | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 147 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 0 | 0 | |
Real estate | Construction | Doubtful | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Commercial | Commercial and industrial | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 17,874 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 745 | 745 | |
2022 | 3,350 | 3,350 | |
2021 | 1,643 | 1,643 | |
2020 | 894 | 894 | |
2019 | 102 | 102 | |
Prior | 246 | 246 | |
Revolving Loans | 9,958 | 9,958 | |
Revolving Loans Converted to Term Loans | 64 | 64 | |
Total loans | 17,002 | 17,002 | |
Current period gross charge-offs, After adoption of ASC 326 | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | (144) | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | (144) | |
Commercial | Commercial and industrial | Pass | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 17,472 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 619 | 619 | |
2022 | 3,350 | 3,350 | |
2021 | 1,643 | 1,643 | |
2020 | 800 | 800 | |
2019 | 102 | 102 | |
Prior | 246 | 246 | |
Revolving Loans | 9,958 | 9,958 | |
Revolving Loans Converted to Term Loans | 64 | 64 | |
Total loans | 16,782 | 16,782 | |
Commercial | Commercial and industrial | Special Mention | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 0 | 0 | |
Commercial | Commercial and industrial | Substandard | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 402 | ||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 126 | 126 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 94 | 94 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 220 | 220 | |
Commercial | Commercial and industrial | Doubtful | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Consumer loans | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 8,203 | ||
Financing Receivable, Excluding Accrued Interest | |||
Total loans | 9,796 | 9,796 | |
Current period gross charge-offs, After adoption of ASC 326 | |||
Total | 0 | 0 | |
Consumer loans | Pass | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 8,203 | ||
Consumer loans | Special Mention | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Consumer loans | Substandard | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | 0 | ||
Consumer loans | Doubtful | |||
Loans Receivable and Allowance for Credit Losses | |||
Loans and leases receivable, Gross, Prior to adoption of ASC 326 | $ 0 | ||
Consumer loans | Consumer and other | |||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 2,011 | 2,011 | |
2021 | 2,000 | 2,000 | |
2020 | 991 | 991 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 4,794 | 4,794 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 9,796 | 9,796 | |
Current period gross charge-offs, After adoption of ASC 326 | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | ||
Consumer loans | Consumer and other | Pass | |||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 2,011 | 2,011 | |
2021 | 2,000 | 2,000 | |
2020 | 991 | 991 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 4,794 | 4,794 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 9,796 | 9,796 | |
Consumer loans | Consumer and other | Special Mention | |||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | 0 | 0 | |
Consumer loans | Consumer and other | Substandard | |||
Financing Receivable, Excluding Accrued Interest | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total loans | $ 0 | $ 0 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Credit Losses - Loan portfolio by the past due status (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | $ 330,489 | |
Total Loans Receivable, Prior to adoption of ASC 326 | $ 305,437 | |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
30-59 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 797 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 382 | |
60-89 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 34 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Greater Than 90 Days | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 29 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 752 | |
Total Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 860 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 1,134 | |
Not past due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 329,629 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 304,303 | |
Real estate | One- to four-family residential | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 107,473 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 110,387 | |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Real estate | One- to four-family residential | 30-59 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 90 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 382 | |
Real estate | One- to four-family residential | 60-89 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 34 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Real estate | One- to four-family residential | Greater Than 90 Days | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 29 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 33 | |
Real estate | One- to four-family residential | Total Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 153 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 415 | |
Real estate | One- to four-family residential | Not past due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 107,320 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 109,972 | |
Real estate | Commercial | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 186,406 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 148,567 | |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Real estate | Commercial | 30-59 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 609 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Real estate | Commercial | 60-89 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Real estate | Commercial | Greater Than 90 Days | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 416 | |
Real estate | Commercial | Total Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 609 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 416 | |
Real estate | Commercial | Not past due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 185,797 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 148,151 | |
Real estate | Construction | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 9,812 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 20,406 | |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Real estate | Construction | 30-59 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 98 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Real estate | Construction | 60-89 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Real estate | Construction | Greater Than 90 Days | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 147 | |
Real estate | Construction | Total Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 98 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 147 | |
Real estate | Construction | Not past due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 9,714 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 20,259 | |
Commercial | Commercial and industrial | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 17,002 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 17,874 | |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Commercial | Commercial and industrial | 30-59 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Commercial | Commercial and industrial | 60-89 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Commercial | Commercial and industrial | Greater Than 90 Days | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 156 | |
Commercial | Commercial and industrial | Total Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 156 | |
Commercial | Commercial and industrial | Not past due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 17,002 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 17,718 | |
Consumer loans | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 9,796 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 8,203 | |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Consumer loans | 30-59 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Consumer loans | 60-89 Days Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Consumer loans | Greater Than 90 Days | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Consumer loans | Total Past Due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | 0 | |
Total Loans Receivable, Prior to adoption of ASC 326 | 0 | |
Consumer loans | Not past due | ||
Loans Receivable and Allowance for Credit Losses | ||
Total Loans Receivable | $ 9,796 | |
Total Loans Receivable, Prior to adoption of ASC 326 | $ 8,203 |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases | |||
Right-of-use assets | $ 877,000 | $ 953,000 | |
Lease liabilities | $ 838,000 | $ 910,000 | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
ASU 2016-02 | |||
Leases | |||
Right-of-use assets | $ 247,000 | ||
Lease liabilities | $ 247,000 |
Leases - Schedule of informatio
Leases - Schedule of information about leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Lease cost | |||||
Right-of-use assets | $ 877 | $ 877 | $ 953 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | ||
Lease Liability | $ 838 | $ 838 | $ 910 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities | ||
Weighted average remaining lease term | 12 years 4 months 17 days | 12 years 4 months 17 days | 12 years 8 months 1 day | ||
Weighted average discount rate | 4.57% | 4.57% | 4.43% | ||
Operating lease cost | $ 24 | $ 15 | $ 73 | $ 47 | |
Short-term lease cost | 20 | 61 | |||
Total lease costs | 44 | 15 | 134 | 47 | |
Cash paid for amounts included in the measurement of lease liabilities | $ 33 | $ 16 | $ 99 | $ 48 |
Leases - Schedule of maturity a
Leases - Schedule of maturity analysis of operating lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Maturity of operating lease liabilities | ||
Six months ending December 31, 2023 | $ 33 | |
2024 | 130 | |
2025 | 122 | |
2026 | 70 | |
2027 | 66 | |
Thereafter | 713 | |
Total undiscounted cash flows | 1,134 | |
Discount | 296 | |
Lease Liability | $ 838 | $ 910 |
Borrowings (Details)
Borrowings (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | |
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 168,828,000 | $ 155,601,000 |
FHLB | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 45,630,000 | |
Interest on line of credit | 5.68% | 4.45% |
Line of credit | $ 0 | $ 0 |
Number of letters of credit | item | 2 | |
Number of unfunded letters of credit | item | 3 | |
Letters of credit outstanding | $ 14,150,000 | $ 8,300,000 |
Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 2,000,000 | |
Line of credit | 0 | 0 |
Atlantic Community Bankers Bank | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 7,500,000 | |
Line of credit | $ 0 | $ 0 |
Atlantic Community Bankers Bank | Fed funds rate | ||
Debt Instrument [Line Items] | ||
Interest on line of credit | 0.25% | |
SouthState Bank, N.A | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | |
Line of credit | $ 0 |
Borrowings - Schedule of maturi
Borrowings - Schedule of maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Maturities of Long-term Debt [Abstract] | ||
Amount. Total | $ 51,887 | $ 47,638 |
FHLB | ||
Maturities of Long-term Debt [Abstract] | ||
Amount, 2023 | 2,500 | 11,057 |
Amount, 2024 | 11,500 | 11,500 |
Amount, 2026 | 1,946 | 2,559 |
Amount, 2027 | 19,500 | 19,500 |
Amount, 2028 | 13,650 | 0 |
Amount, 2032 | 2,791 | 3,022 |
Amount. Total | $ 51,887 | $ 47,638 |
Weighted Rate, 2023 | 4.48% | 3.16% |
Weighted Rate, 2024 | 5.34% | 4.55% |
Weighted Rate, 2026 | 1.32% | 1.32% |
Weighted Rate, 2027 | 2.69% | 2.69% |
Weighted Rate, 2028 | 4% | 0% |
Weighted Rate, 2032 | 1.83% | 1.83% |
Weighted Rate | 3.61% | 3.12% |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk - Credit Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | $ 48,591 | $ 55,703 |
Commitments to grant loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | 32,995 | 41,154 |
Unfunded commitments under lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | 12,830 | 11,520 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, face amount | $ 2,766 | $ 3,029 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - 2022 Equity Incentive Plan - USD ($) | 3 Months Ended | 9 Months Ended | 21 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 28, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of common shares authorized to be issued under plan | 388,815 | ||||
Shares available for future award | 13,628 | 13,628 | 13,628 | 14,628 | |
Vesting period | 5 years | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 277,725 | ||||
Shares available for future award | 10,653 | 10,653 | 10,653 | 11,653 | |
Stock based compensation expense | $ 71,000 | $ 208,000 | |||
Unrecognized compensation cost | $ 1,137,000 | $ 1,137,000 | $ 1,137,000 | ||
Restricted Stock and Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 111,090 | ||||
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for future award | 2,975 | 2,975 | 2,975 | 2,975 | |
Stock based compensation expense | $ 67,000 | $ 198,000 | |||
Unrecognized compensation cost | $ 1,096,000 | $ 1,096,000 | $ 1,096,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - 2022 Equity Incentive Plan - Stock options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Options | ||||
Outstanding, number of shares | 266,072 | 266,072 | ||
Granted, number of shares | 1,000 | 1,000 | ||
Exercised, number of shares | 0 | 0 | ||
Forfeited, number of shares | 0 | 0 | ||
Outstanding, number of shares | 267,072 | 266,072 | 267,072 | 266,072 |
Exercisable, number of shares | 0 | 0 | ||
Weighted Average Exercise Price | ||||
Outstanding, weighted average exercise price, (in dollars per share) | $ 12.28 | $ 12.28 | ||
Granted, weighted average exercise price, (in dollars per share) | 13.80 | 13.80 | ||
Exercised, weighted average exercise price, (in dollars per share) | 0 | 0 | ||
Forfeited, weighted average exercise price, (in dollars per share) | 0 | 0 | ||
Outstanding, weighted average exercise price, (in dollars per share) | 12.29 | $ 12.28 | 12.29 | $ 12.28 |
Exercisable, weighted average exercise price (in dollars per share) | $ 0 | $ 0 | ||
Weighted-Average Remaining Contractual Life, (in years) | ||||
Granted, weighted-average remaining contractual life (in years) | 9 years 9 months | 9 years 9 months | ||
Outstanding, weighted-average remaining contractual life (in years) | 9 years 1 month 17 days | 9 years 4 months 17 days | 9 years 1 month 17 days | 9 years 10 months 17 days |
Average Intrinsic Value | ||||
Outstanding, average intrinsic value | $ 15 | $ 15 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - 2022 Equity Incentive Plan - Restricted stock - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Number of Shares | ||
Non-vested, number of shares | 108,115 | 108,115 |
Granted, number of shares | 0 | 0 |
Vested, number of shares | 0 | 0 |
Forfeited, number of shares | 0 | 0 |
Non-vested, number of shares | 108,115 | 108,115 |
Weighted-Average Grant Date Fair Value | ||
Non-vested, Weighted-average grant date fair value (in dollars per share) | $ 12.28 | $ 12.28 |
Granted, Weighted-average grant date fair value (in dollars per share) | 0 | 0 |
Vested, Weighted-average grant date fair value (in dollars per share) | 0 | 0 |
Forfeited, Weighted-average grant date fair value (in dollars per share) | 0 | 0 |
Non-vested, Weighted-average grant date fair value (in dollars per share) | $ 12.28 | $ 12.28 |
Regulatory Matters (Details)
Regulatory Matters (Details) | Sep. 30, 2023 USD ($) | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total capital (to risk-weighted assets) | |||
Actual, Amount | $ 43,179,000 | ||
Actual, Ratio | 0.1327 | ||
For Capital Adequacy Purposes, Amount | $ 26,023,000 | ||
For Capital Adequacy Purposes, Ratio | 0.0800 | ||
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 32,529,000 | ||
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 0.1000 | ||
Tier 1 capital (to risk-weighted assets) | |||
Actual, Amount | $ 39,112,000 | ||
Actual, Ratio | 0.1202 | ||
For Capital Adequacy Purposes, Amount | $ 19,518,000 | ||
For Capital Adequacy Purposes, Ratio | 0.0600 | ||
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 26,023,000 | ||
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 0.0800 | ||
CET 1 Risked-Based Capital | |||
Actual, Amount | $ 39,112,000 | ||
Actual, Ratio | 0.1202 | ||
For Capital Adequacy Purposes, Amount | $ 14,638,000 | ||
For Capital Adequacy Purposes, Ratio | 0.0450 | ||
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 21,144,000 | ||
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 0.0650 | ||
Tier 1 capital (to average assets) | |||
Actual, Amount | $ 39,112,000 | $ 37,987,000 | |
Actual, Ratio | 0.0984 | 0.1000 | |
For Capital Adequacy Purposes, Amount | $ 15,902,000 | ||
For Capital Adequacy Purposes, Ratio | 0.0400 | ||
To be Well Capitalized under Prompt Corrective Action Provisions, Amount | $ 19,878,000 | $ 33,998,000 | |
To be Well Capitalized under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0900 | |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | |||
Total capital (to risk-weighted assets) | |||
Actual, Amount | $ (140,000) |
Earnings Per Share (Details)
Earnings Per Share (Details) - 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 | ||||
Net income | $ 513 | $ 414 | $ 1,510 | $ 1,006 |
Weighted average common shares outstanding | 2,643,955 | 2,762,919 | 2,687,605 | 2,772,420 |
Less: Average unearned ESOP shares | (199,962) | (211,071) | (199,962) | (211,071) |
Weighted average shares outstanding (basic) | 2,443,993 | 2,551,848 | 2,487,643 | 2,561,349 |
Dilutive common stock equivalents | 21,875 | 0 | 17,276 | 0 |
Weighted average shares outstanding (diluted) | 2,465,868 | 2,551,848 | 2,504,919 | 2,561,349 |
Basic earnings per common share | $ 0.21 | $ 0.16 | $ 0.61 | $ 0.39 |
Earnings per common share - diluted | $ 0.21 | $ 0.16 | $ 0.60 | $ 0.39 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Significant Unobservable Inputs (Level 3) - Individually evaluated collateral dependent loans - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of recorded investment in loans | $ 0 | $ 52 |
Valuation allowance on recorded investment in loans | $ 95 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets measured at fair value on a recurring basis (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 41,419 | $ 52,809 |
Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 22,319 | 19,117 |
Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 15,787 | 29,819 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 86 | 99 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,475 | 3,012 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 752 | 762 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 16,539 | 30,581 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 15,787 | 29,819 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 752 | 762 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 24,880 | 22,228 |
Significant Other Observable Inputs (Level 2) | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 22,319 | 19,117 |
Significant Other Observable Inputs (Level 2) | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 86 | 99 |
Significant Other Observable Inputs (Level 2) | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,475 | 3,012 |
Significant Other Observable Inputs (Level 2) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assets measured at fair value on a nonrecurring basis (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 52 |
Individually evaluated collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 52 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Individually evaluated collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Individually evaluated collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Significant Other Observable Inputs (Level 2) | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 52 |
Significant Unobservable Inputs (Level 3) | Individually evaluated collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | |
Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 52 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Quantitative information about assets measured at fair value on a nonrecurring basis (Details) - Nonrecurring $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 52 |
Individually evaluated collateral dependent loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | 0 | |
Impaired Loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | 52 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | 0 | 52 |
Significant Unobservable Inputs (Level 3) | Individually evaluated collateral dependent loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 0 | |
Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 52 | |
Significant Unobservable Inputs (Level 3) | Minimum | Impaired Loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | 0.684 | |
Significant Unobservable Inputs (Level 3) | Maximum | Impaired Loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range (Weighted Average) | (0.684) |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Carrying amounts and fair values of the Bank's financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash and cash equivalents | $ 25,185 | $ 17,204 |
Debt securities available-for-sale | 40,667 | 52,047 |
Equity securities, at fair value | 752 | 762 |
Bank owned life insurance | 8,178 | 7,487 |
Carrying Amounts | ||
Financial assets: | ||
Cash and cash equivalents | 25,185 | 17,204 |
Debt securities available-for-sale | 40,667 | 52,047 |
Equity securities, at fair value | 752 | 762 |
Restricted stocks | 2,464 | 2,251 |
Loans, net | 325,350 | 300,855 |
Accrued interest receivable | 1,327 | 1,123 |
Bank owned life insurance | 8,178 | 7,487 |
Financial liabilities: | ||
Demand deposits, savings, and money market | 190,154 | 176,370 |
Certificates of deposit | 116,367 | 113,125 |
Borrowings | 51,887 | 47,638 |
Accrued interest payable | 699 | 424 |
Estimated Fair Values | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 25,185 | 17,204 |
Equity securities, at fair value | 752 | 762 |
Accrued interest receivable | 1,327 | 1,123 |
Financial liabilities: | ||
Demand deposits, savings, and money market | 190,154 | 176,370 |
Accrued interest payable | 699 | 424 |
Estimated Fair Values | Quoted Prices in Active Markets for Identical Assets (Level 1) & Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Debt securities available-for-sale | 40,667 | 52,047 |
Estimated Fair Values | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Restricted stocks | 2,464 | 2,251 |
Bank owned life insurance | 8,178 | 7,487 |
Financial liabilities: | ||
Certificates of deposit | 108,587 | 106,818 |
Borrowings | 52,134 | 46,990 |
Estimated Fair Values | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans, net | $ 320,626 | $ 303,108 |
Non-Interest Revenues (Details)
Non-Interest Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | $ 159 | $ 130 | $ 465 | $ 379 |
Noninterest income (out of scope for Topic 606) | 26 | 11 | 117 | 31 |
Total Noninterest Income | 185 | 141 | $ 582 | 410 |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | |||
Service charges on deposit accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | 39 | 40 | $ 130 | 136 |
Debit card income | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | 59 | 51 | 165 | 149 |
Other service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | 20 | 19 | 87 | 55 |
Loss on disposal of equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | 0 | 0 | (40) | 0 |
Other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in scope for Topic 606) | $ 41 | $ 20 | $ 123 | $ 39 |