Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 21, 2022 | Jun. 30, 2021 | |
Cover | |||
Document Period End Date | Dec. 31, 2021 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-24047 | ||
Entity Registrant Name | GLEN BURNIE BANCORP | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 52-1782444 | ||
Entity Address, Address Line One | 101 Crain Highway, S.E. | ||
Entity Address, City or Town | Glen Burnie | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 21061 | ||
Entity Well-Known Seasoned Issuer | No | ||
City Area Code | 410 | ||
Local Phone Number | 766-3300 | ||
Entity Voluntary Filers | No | ||
Entity Central Index Key | 0000890066 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Common Stock Shares Outstanding | 2,856,257 | ||
Auditor Name | TGM Group LLC 141 | ||
Auditor Firm ID | 1195 | ||
Auditor Location | Salisbury, Maryland | ||
Document Type | 10-K | ||
Entity Interactive Data Current | Yes | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 29,141,149 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 2,111 | $ 2,117 |
Interest-bearing deposits in other financial institutions | 60,070 | 34,976 |
Cash and Cash Equivalents | 62,181 | 37,093 |
Investment securities available for sale, at fair value | 155,927 | 114,049 |
Restricted equity securities, at cost | 1,062 | 1,199 |
Loans, net of deferred fees and costs | 210,392 | 253,772 |
Less: Allowance for credit losses | (2,470) | (1,476) |
Loans, net | 207,922 | 252,296 |
Real estate acquired through foreclosure | 575 | |
Premises and equipment, net | 3,564 | 3,853 |
Bank owned life insurance | 8,338 | 8,181 |
Deferred tax assets, net | 956 | 142 |
Accrued interest receivable | 1,085 | 1,302 |
Accrued taxes receivable | 301 | 116 |
Prepaid expenses | 347 | 318 |
Other assets | 383 | 362 |
Total Assets | 442,066 | 419,486 |
LIABILITIES | ||
Noninterest-bearing deposits | 155,624 | 132,626 |
Interest-bearing deposits | 227,623 | 216,994 |
Total Deposits | 383,247 | 349,620 |
Short-term borrowings | 10,000 | 29,912 |
Long-term borrowings | 10,000 | |
Defined pension liability | 304 | 285 |
Accrued expenses and other liabilities | 2,799 | 2,576 |
Total Liabilities | 406,350 | 382,393 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,853,880 and 2,842,040 shares as of December 31, 2021 and December 31, 2020, respectively. | 2,854 | 2,842 |
Additional paid-in capital | 10,759 | 10,640 |
Retained earnings | 22,977 | 23,071 |
Accumulated other comprehensive (loss) gain | (874) | 540 |
Total Stockholders' Equity | 35,716 | 37,093 |
Total Liabilities and Stockholders' Equity | $ 442,066 | $ 419,486 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 2,853,880 | 2,842,040 |
Common stock, shares outstanding | 2,853,880 | 2,842,040 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 10,738,000 | $ 11,973,000 |
Interest and dividends on securities | 2,657,000 | 1,579,000 |
Interest on deposits with banks and federal funds sold | 122,000 | 117,000 |
Total Interest Income | 13,517,000 | 13,669,000 |
INTEREST EXPENSE | ||
Interest on deposits | 609,000 | 1,043,000 |
Interest on short-term borrowings | 465,000 | 464,000 |
Interest on long-term borrowings | 8,000 | |
Total Interest Expense | 1,074,000 | 1,515,000 |
Net Interest Income | 12,443,000 | 12,154,000 |
Release of credit loss provision | (975,000) | (689,000) |
Net interest income after provision for credit losses | 13,418,000 | 12,843,000 |
NONINTEREST INCOME | ||
Gain on securities called or sold | (588,000) | 6,000 |
Income on life insurance | 157,000 | 158,000 |
Gain on sale of OREO | 14,000 | |
Total Noninterest Income | 627,000 | 1,012,000 |
NONINTEREST EXPENSE | ||
Salary and employee benefits | 6,504,000 | 6,743,000 |
Occupancy and equipment expenses | 1,227,000 | 1,247,000 |
Legal, accounting and other professional fees | 701,000 | 941,000 |
Data processing and item processing services | 933,000 | 944,000 |
FDIC insurance costs | 169,000 | 186,000 |
Advertising and marketing related expenses | 88,000 | 88,000 |
Loan collection costs | 12,000 | 126,000 |
Telephone costs | 209,000 | 199,000 |
Other expenses | 1,109,000 | 1,222,000 |
Total Noninterest Expenses | 10,952,000 | 11,696,000 |
Income before income taxes | 3,093,000 | 2,159,000 |
Income tax expense | 577,000 | 491,000 |
NET INCOME | $ 2,516,387 | $ 1,667,741 |
Basic net income per share (in dollars per share) | $ 0.88 | $ 0.59 |
Diluted net income per share (in dollars per share) | $ 0.88 | $ 0.59 |
Service charges on deposit accounts | ||
NONINTEREST INCOME | ||
Noninterest Income | $ 160,000 | $ 176,000 |
Other fees and commissions | ||
NONINTEREST INCOME | ||
Noninterest Income | $ 884,000 | $ 672,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||
Net income | $ 2,516,387 | $ 1,667,741 |
Net unrealized gain (loss) on securities available for sale: | ||
Net unrealized loss (gain) on securities during the period | (3,048,000) | 1,646,000 |
Income tax benefit (expense) relating to item above | 840,000 | (452,000) |
Reclassification adjustment for loss (gain) on sales of securities included in net income | 426,000 | (3,000) |
Net effect on other comprehensive (loss) income | (1,782,000) | 1,191,000 |
Net unrealized loss (gain) on interest rate swaps: | ||
Net unrealized loss (gain) on interest rate swap during the period | 508,000 | (611,000) |
Income tax (expense) benefit relating to item above | (140,000) | 169,000 |
Net effect on other comprehensive income (loss) | 368,000 | (442,000) |
Other comprehensive (loss) income | (1,414,000) | 749,000 |
Comprehensive income | $ 1,102,000 | $ 2,417,000 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings [Member]Adjustment | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Adjustment | Total |
Balances at Dec. 31, 2019 | $ 2,827,000 | $ 10,525,000 | $ 22,537,000 | $ (209,000) | $ 35,680,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,668,000 | 1,667,741 | |||||
Cash dividends, $0.40 per share | (1,134,000) | (1,134,000) | |||||
Dividends reinvested under dividend reinvestment plan | 15,000 | 115,000 | 130,000 | ||||
Other comprehensive income (loss) | 749,000 | 749,000 | |||||
Balances at Dec. 31, 2020 | 2,842,000 | 10,640,000 | 23,071,000 | 540,000 | 37,093,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Retained earnings | 23,071,000 | ||||||
Net income | 2,516,000 | 2,516,387 | |||||
Cash dividends, $0.40 per share | (1,138,000) | (1,138,000) | |||||
Dividends reinvested under dividend reinvestment plan | 12,000 | 119,000 | 131,000 | ||||
Other comprehensive income (loss) | (1,414,000) | (1,414,000) | |||||
Balances at Dec. 31, 2021 | $ 2,854,000 | $ 10,759,000 | $ 22,977,000 | $ (874,000) | 35,716,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Retained earnings | $ (1,472,000) | $ (1,472,000) | $ 22,977,000 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Cash dividends, per share | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 2,516 | $ 1,668 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion of premises and equipment | 995 | 59 |
Release of credit losses provision | (975) | (689) |
Deferred income taxes, net | 282 | 245 |
Gain on disposals of assets, net | (14) | |
Increase in cash surrender value of bank owned life insurance | (157) | (158) |
Loss on sale of available-for-sale investments | (588) | |
Loss on writedown other real estate owned | (130) | |
Net (increase) decrease in other assets | (18) | 798 |
Net decrease (increase) in accrued expenses and other liabilities | 439 | (451) |
Net cash provided by operating activities | 3,656 | 1,602 |
Cash flows from investing activities: | ||
Redemptions and maturities of investment securities available for sale | 57,380 | 26,323 |
Purchases of investment securities available for sale | (102,870) | (66,941) |
Net redemption of Federal Home Loan Bank stock | 137 | 238 |
Net decrease in loans | 43,776 | 31,065 |
Proceeds from sale of real estate acquired through foreclosure | 589 | |
Purchases of premises and equipment | (287) | (573) |
Net cash (used in) provided by investing activities | (1,275) | (9,888) |
Cash flows from financing activities: | ||
Net increase in deposits | 33,627 | 28,180 |
(Decrease) increase in short term borrowings | (19,913) | 4,913 |
Increase in long term borrowings | 10,000 | |
Cash dividends paid | (1,138) | (1,134) |
Common stock dividends reinvested | 131 | 130 |
Net cash provided by financing activities | 22,707 | 32,089 |
Net increase (decrease) in cash and cash equivalents | 25,088 | 23,803 |
Cash and cash equivalents at beginning of year | 37,093 | 13,290 |
Cash and cash equivalents at end of year | 62,181 | 37,093 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid on deposits and borrowings | 1,078 | 1,599 |
Income taxes paid (refunded) | 480 | |
Income taxes (refunded) | (856) | |
Net (decrease) increase in unrealized depreciation on available for sale securities | 3,048 | (1,646) |
Decrease (increase) in unrealized depreciation on Swaps | $ 508 | $ (611) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies Nature of Business Glen Burnie Bancorp (the “Company”) is a bank holding company organized in 1990 under the laws of the State of Maryland. The Company owns all outstanding shares of capital stock of The Bank of Glen Burnie (the “Bank”), a commercial bank organized in 1949 under the laws of the State of Maryland (the “State”). The Bank provides financial services to individuals and corporate customers located in Anne Arundel County and surrounding areas of Central Maryland, and is subject to competition from other financial institutions. The Bank is also subject to the regulations of certain Federal and State agencies and undergoes periodic examinations by those regulatory authorities. The accounting and financial reporting policies of the Bank conform, in all material respects, to accounting principles generally accepted in the United States (“U.S. GAAP”) and to general practices within the banking industry. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. The COVID-19 pandemic has negatively impacted the global economy and the markets in which the Company operates. The extent of the impact of the COVID-19 pandemic on our operational and financial performance will depend on future country and state restrictions regarding virus containment. An extended period of global supply chain, workforce availability and economic disruption could materially affect the Company’s business, the results of operations, and financial condition. While this business disruption is expected to be temporary, the current circumstances change from one day to the next and the impacts of COVID-19 on the Company’s business operations, including the duration, its impact on assets, liabilities and net income, cannot be reasonably estimated at this time. The Company has business continuity plans that cover a variety of potential impacts to business operations. These plans are periodically reviewed and tested and have been designed to protect the ongoing viability of bank operations in the event of a disruption such as a pandemic . The length of the pandemic and the effectiveness of the measures being put in place to address it are unknown. Until the effects of the pandemic subside, we face possible impacts on liquidity, operating revenues, and credit performance. To the extent the pandemic adversely affects our business, financial condition, liquidity, or results of operations, it may also have the effect of heightening many of the other risks described in this Annual Report. Basis of Presentation The consolidated financial statements include the accounts of Glen Burnie Bancorp, The Bank of Glen Burnie and GBB Properties, Inc., a company engaged in the acquisition and disposition of other real estate. All significant intercompany transactions are eliminated in consolidation and certain reclassifications are made when necessary in order to conform the previous year’s financial statements to the current year’s presentation. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and revenues and expenses during the reporting periods and related disclosures. These estimates that require application of management's subjective or complex judgments often result in the need to make estimates about the effect of matters that are inherently uncertain and may change in future periods. Management has made significant estimates in several areas, including the Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses Investment Securities Fair Value of Financial Instruments Pension and Profit Sharing Plans Income Taxes ). Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation. The Parent Only financial statements (see Note 18, Parent Company Financial Information Investment Securities We classify investment securities as trading, held to maturity ("HTM"), or available for sale ("AFS") at the date of acquisition. Purchases and sales of securities are generally recorded on a trade-date basis. Investment securities that we might not hold until maturity are classified as AFS and are reported at fair value in the statement of financial condition. Fair value measurement is based upon quoted market prices in active markets, if available. If quoted prices in active markets are not available, fair value is measured using pricing models or other model-based valuation techniques such as the present value of future cash flows, which consider prepayment assumptions and other factors such as credit losses and market liquidity. Unrealized gains and losses are excluded from earnings and reported, net of tax, in other comprehensive income (“OCI”). Purchase premiums and discounts are recognized in interest income using the effective interest method over the life of the securities. Purchase premiums or discounts related to mortgage-backed securities are amortized or accreted using projected prepayment speeds. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Debt securities are classified as HTM if the Company has both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for amortization of purchase premiums and accretion of purchase discounts. Transfers of securities from available for sale to held to maturity are accounted for at fair value as of the date of the transfer. The difference between the fair value and the par value at the date of transfer is considered a premium or discount and is accounted for accordingly. Any unrealized gain or loss at the date of the transfer is reported in OCI, and is amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount, and will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held to maturity security. Impairment may result from credit deterioration of the issuer or collateral underlying the security. In performing an assessment of recoverability, all relevant information is considered, including the length of time and extent to which fair value has been less than the amortized cost basis, the cause of the price decline, credit performance of the issuer and underlying collateral, and recoveries or further declines in fair value subsequent to the balance sheet date. AFS debt securities are measured at fair value rather than amortized cost. Although ASC 326 replaced the legacy other-than-temporary impairment (“OTTI”) model with a credit loss model, it retained the fundamental nature of the legacy OTTI model. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities where neither of the criteria are met, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the credit rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited to the amount that the fair value is less than the amortized cost basis. Any remaining discount that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Under the new guidance, an entity may no longer consider the length of time fair value has been less than amortized cost. Changes in the allowance for credit losses are recorded as a provision for (or release of) credit losses. Losses are charged against the allowance when management believes the collectability of an AFS security is considered below the amortized cost basis of the security. As of December 31, 2021 and 2020, the Company determined that the unrealized loss positions in AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded. Federal Home Loan Bank Stock As a borrower from the Federal Home Loan Bank of Atlanta ("FHLB"), the Bank is required to purchase an amount of FHLB stock based on our outstanding borrowings with the FHLB. This stock is used as collateral to secure the borrowings from the FHLB and is accounted for as a cost-method investment. FHLB stock is an equity interest that does not necessarily have a readily determinable fair value for purposes of the ASC Topic 320, Accounting for Certain Investments in Debt and Equity Securities , because its ownership is restricted and lacks a market. FHLB stock can be sold back only at its par value of $100 per share and only to the FHLB or another member institution. Other Securities Maryland Financial Bank Dissolution Trust ("the Trust"), is a "liquidating trust" for U.S. federal income tax purposes. The sole purpose of the Trust is to liquidate the remaining assets, resolve the remaining liabilities, and to distribute the net proceeds to the Trust's beneficiaries. This is an equity interest that does not necessarily have a readily determinable fair value for purposes of the ASC Topic 320, Accounting for Certain Investments in Debt and Equity Securities , because its ownership is restricted and lacks a market. This stock is accounted for as a cost-method investment. Loans Held for Investment Loans held for investment are reported at the principal amount outstanding, net of cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. Interest on loans is accrued and recognized as interest income at the contractual rate of interest. When a loan is designated as held for investment, the intent is to hold these loans for the foreseeable future or until maturity or pay off. From time to time, the Company will originate loans to facilitate the sale of other real estate owned (OREO). Such loans are accounted for using the installment method and any gain on sale is deferred. The Bank financed no sales of OREO for 2021 or 2020. Loan Fees and Costs Loan origination fees, commitment fees, direct loan origination costs and purchase premiums and discounts on loans are deferred and recognized as an adjustment of yield, to be amortized to interest income over the contractual term of the loan. Nonaccrual Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment or if part of the principal balance has been charged off. When a loan is placed on nonaccrual status all interest previously accrued but not collected is reversed against current period interest income. All payments received on nonaccrual loans are accounted for using the cost recovery method. Under the cost recovery method, all cash collected is applied to first reduce the principal balance. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current and the collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that are well-secured and in the process of collection are maintained on accrual status, even if they are 90 days or more past due. Impaired Loans A loan is considered impaired when it is probable that all contractual principal and interest payments due will not be collected in accordance with the terms of the loan agreement. Factors considered by management in determining whether a loan is impaired include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. The carrying value of impaired loans is based on the present value of the loan’s expected future cash flows or, alternatively, the observable market price of the loan or the fair value of the collateral. Troubled Debt Restructurings A loan is accounted for and reported as a troubled debt restructuring (“TDR”) when, for economic or legal reasons, we grant a concession to a borrower experiencing financial difficulty that we would not otherwise consider. Management strives to identify borrowers in financial difficulty early and works with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt's original contractual maturity or original expected duration. TDRs are designated as impaired because interest and principal payments will not be received in accordance with the original contract terms. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR and impaired regardless of the accrual or performance status until the loan is paid off. However, if the TDR loan has been modified in a subsequent restructure with market terms and the borrower is not currently experiencing financial difficulty, then the loan may be de-designated as a TDR. Allowance for Credit Losses – Loans Receivable Effective January 1, 2021, the Company applied ASU 2016-13, Financial Instruments - Credit Losses ("ASC 326"), such that the allowance calculation is based on the CECL methodology. Prior to January 1, 2021, the calculation was based on incurred loss methodology. See Note 4, Loans and Allowance for Credit Losses for details. The Company maintains an allowance for credit losses (“ACL”) for the expected credit losses of the loan portfolio as well as unfunded loan commitments. The amount of ACL is based on ongoing, quarterly assessments by management. The CECL methodology requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures) and replaces the incurred loss methodology’s threshold that delayed the recognition of a credit loss until it was probable a loss event was incurred. The ACL consists of the allowance for credit losses - loans and the reserve for unfunded commitments. The estimate of expected credit losses under the CECL methodology is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period that historical experience was based for each loan type. Finally, we consider forecasts about future economic conditions or changes in collateral values that are reasonable and supportable. Portfolio segment is defined as the level at which the Company develops and documents a systematic methodology to determine its ACL. The Company has designated three loan portfolio segments: loans secured by real estate, commercial and industrial loans, and consumer loans. These loan portfolio segments are further disaggregated into classes, which represent loans of similar type, risk characteristics, and methods for monitoring and assessing credit risk. The loans secured by real estate portfolio segment is disaggregated into five classes: construction and land, farmland, family residential, multi-family, and commercial. The commercial and industrial loan portfolio segment is disaggregated into two classes: commercial and industrial, and SBA guaranty. The risk of loss for the commercial and industrial loan portfolio segment is generally most indicated by the credit risk rating assigned to each borrower. Commercial and industrial loan risk ratings are determined by experienced senior credit officers based on specific facts and circumstances and are subject to periodic review by an independent internal team of credit specialists. The consumer loan portfolio segment is disaggregated into two classes: consumer and automobile. The risk of loss for the consumer loan portfolio segment is generally most indicated by delinquency status and general economic factors. Each of the three loan portfolio segments may also be further segmented based on risk characteristics. For most of our loan portfolio classes, the historical loss experience is determined using the Average Charge-Off Method. This method pools loans into groups (“cohorts”) sharing similar risk characteristics and tracks each cohort’s net charge-offs over the lives of the loans. The Average Charge-Off Method uses historical values by period (20-year look-back) to calculate losses and then applies the historical average to future balances over the life of the account. The historical loss rates for each cohort are then averaged to calculate an overall historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the allowance for credit losses for the respective loan portfolio class. For certain loan portfolio classes, the Company determined there was not sufficient historical loss information to calculate a meaningful historical loss rate using the average charge-off methodology. For any such loan portfolio class, peer group history contributes to the Company’s weighted average loss history. The peer group data is included in the weighted average loss history that is developed for each loan pool. The Company also considers qualitative adjustments to the historical loss rate for each loan portfolio class. The qualitative adjustments for each loan class consider the conditions over the 20-year look-back period from which historical loss experience was based and are split into two components: 1) asset or class specific risk characteristics or current conditions at the reporting date related to portfolio credit quality, remaining payments, volume and nature, credit culture and management, business environment or other management factors; and 2) reasonable and supportable forecast of future economic conditions and collateral values. The Company performs a quarterly asset quality review which includes a review of forecasted gross charge-offs and recoveries, nonperforming assets, criticized loans, risk rating migration, delinquencies, etc. The asset quality review is performed by management and the results are used to consider a qualitative overlay to the quantitative baseline. When management deems it to be appropriate, the Company establishes a specific reserve for individually evaluated loans that do not share similar risk characteristics with the loans included in each respective loan pool. These individually evaluated loans are removed from their respective pools and typically represent collateral dependent loans but may also include other non-performing loans or troubled debt restructurings (“TDRs”). Impaired Loans The specific credit allocations are based on regular analysis of all loans over a fixed-dollar amount where the internal credit rating is at or below a predetermined classification. When a loan is identified as impaired, impairment is measured based on net realizable value, and the recorded investment balance of the loan. For impaired loans, we recognize impairment if we determine that the net realizable value of the impaired loan is less than the recorded investment of the loan (net of previous charge-offs and deferred loan fees and costs), except when the sole remaining source of collection is the underlying collateral. In these cases, impairment is measured as the difference between the recorded investment balance of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. Once the impairment amount is determined, an asset-specific allowance is provided that is equal to the calculated impairment and included in the allowance for credit losses - loans. If the calculated impairment is determined to be permanent or not recoverable, the impairment will be charged off. Factors considered by management in determining if impairment is permanent or not recoverable include whether management judges the loan to be uncollectible, repayment is deemed to be protracted beyond reasonable time frames or the loss becomes evident owing to the borrower’s lack of assets. Estimate of Probable Credit Losses - Loans On January 1, 2021, the Company early adopted ASU 2016-13, Financial Instruments - Credit Losses (“ASC 326”) which replaces the “incurred loss approach” for estimating credit losses with an expected loss methodology. The incurred loss model delayed the recognition of credit losses until it was probable that a loss had occurred, while the CECL model requires the immediate recognition of expected credit losses over the contractual term for financial instruments that fall within the scope of CECL at the date of origination or purchase of the financial instrument. The CECL model, which is applicable to the measurement of credit losses on financial assets measured at amortized cost and certain off-balance sheet credit exposures, affects the Company’s estimates of the allowance for credit losses for our loan portfolio and the reserve for our off-balance sheet credit exposures related to loan commitments. The allowance for credit losses is established through a provision for credit losses charged to expense. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. The allowance, based on all available information from internal and external sources, relevant to assessing the collectability of loans over their contractual terms, adjusted for expected prepayments when appropriate, is an amount that management believes will be adequate to absorb possible losses on existing loans that may become uncollectible. The evaluations are performed for each class of loans and take into consideration factors such as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, value of collateral securing the loans and current economic conditions and trends that may affect the borrowers’ ability to pay. For example, delinquencies in unsecured loans and indirect automobile installment loans will be reserved for at significantly higher ratios than loans secured by real estate. Finally, the Company considers forecasts about future economic conditions or changes in collateral values that are reasonable and supportable. Based on that analysis, the Bank deems its allowance for credit losses in proportion to the total nonaccrual loans and past due loans to be sufficient. Reserve for Unfunded Commitments The Company maintains a separate allowance for losses on unfunded loan commitments, which is included in accrued expenses and other liabilities on the consolidated statements of financial condition. The reserve for unfunded commitments (off-balance sheet financial instruments) is established through a provision for credit losses - unfunded commitments, the changes of which are recorded in noninterest expense. The reserve for unfunded commitments is an amount that management believes will be adequate to absorb probable losses inherent in existing commitments, including unused portions of revolving lines of credit and other loans, standby letters of credit, and unused deposit account overdraft privileges. The reserve for unfunded commitments is based on evaluations of the collectability, and prior loss experience of unfunded commitments. The evaluations take into consideration such factors as changes in the nature and size of the loan portfolio, overall loan portfolio quality, loan concentrations, specific problem loans and related unfunded commitments, and current economic conditions that may affect the borrower’s or depositor’s ability to pay. Other Real Estate Owned Other real estate owned ("OREO") represents real estate acquired in partial or total satisfaction of debts previously contracted with the Company, generally through the foreclosure of loans. These properties are initially recorded at the net realizable value (fair value of collateral less estimated costs to sell). Upon transfer of a loan to OREO, an appraisal is obtained and any excess of the loan balance over the net realizable value is charged against the allowance for credit losses - loans. Subsequent declines in net realizable value identified from the ongoing analysis of such properties as well as gains and losses realized from the sale of OREO are recognized in current period earnings within noninterest expense as foreclosed property expense. The net realizable value of these assets is reviewed and updated as circumstances warrant. Loans transferred to OREO through foreclosure proceedings totaled $575,000 for the year ended December 31, 2020. There were no loans transferred to OREO for the year ended December 31, 2021. Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation and depreciated over the estimated useful life of the related asset or the term of the lease using the straight-line method. Expenditures for improvements that extend the life of an asset are capitalized and depreciated over the asset’s remaining useful life. Gains or losses realized on the disposition of premises and equipment are reflected in the consolidated statements of income. Expenditures for repairs and maintenance are charged to occupancy and equipment expense as incurred. Computer software is recorded at cost and amortized over three to five years . Management periodically evaluates the carrying value of long-lived assets and certain identifiable intangibles, including goodwill, furniture and equipment and leasehold improvements for impairment. Income Taxes Our income tax expense, and deferred tax assets and liabilities reflect management’s best assessment of estimated current and future taxes to be paid. Significant judgments and estimates are required in determining the consolidated income tax expense. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes and are reflected as discrete tax items in the Company’s tax provision. The Company records net deferred tax assets to the extent it is believed that these assets will more likely than not be realized. In making this determination, the Company considers all available evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent financial operations. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority. The Company files a consolidated federal income tax return and separate company state tax returns. For a more detailed description of income taxes see Note 8, Income Taxes Interest Rate Swap Agreements For asset/liability management purposes, the Company periodically uses interest rate swap agreements to hedge various exposures or to modify interest rate characteristics of various balance sheet accounts. All interest rate swap agreements are recorded at fair value. The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to its likelihood of effectiveness as a hedge. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. Fair Value Measurement The term "fair value" is defined as the price that would be received to sell an as |
Restrictions on Cash and Amount
Restrictions on Cash and Amounts Due from Banks | 12 Months Ended |
Dec. 31, 2021 | |
Restrictions on Cash and Amounts Due from Banks | |
Restrictions on Cash and Amounts Due from Banks | Note 2. Restrictions on Cash and Amounts Due from Banks On March 26, 2020 the Board of Governors of the Federal Reserve System set the reserve requirement ratios to zero percent and reserve requirements were no longer administered. On December 22, 2020 the zero percent reserve requirement ratio was extended for three years. At December 31, 2021 and 2020, the average reserve balances were $0 and $0.4 million, respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investment Securities | |
Investment Securities | Note 3. Investment Securities A summary of the amortized cost and market value of securities available for sale at December 31, 2021 and 2020 is as follows: At December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collaterized mortgage obligations $ 21,730 $ 169 $ (211) $ 21,688 Agency mortgage-backed securities 56,252 356 (419) 56,189 Municipal securities 44,594 811 (180) 45,225 U.S. Government agency securities 32,616 4 (1,269) 31,351 Corporate securities 1,500 — (26) 1,474 Total securities available for sale $ 156,692 $ 1,340 $ (2,105) $ 155,927 At December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collaterized mortgage obligations $ 24,261 $ 396 $ (14) $ 24,643 Agency mortgage-backed securities 26,072 886 (10) 26,948 Municipal securities 28,675 740 (2) 29,413 U.S. Government agency securities 33,346 9 (310) 33,045 Total securities available for sale $ 112,354 $ 2,031 $ (336) $ 114,049 Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities at December 31, 2021 or December 31, 2020. Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company's interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income or loss. Held-to-maturity investment securities are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. The Company held no held-to-maturity securities at December 31, 2021 or December 31, 2020. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. The following tables show the fair value and gross unrealized losses associated with the investment portfolio, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021 and 2020: At December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Loss Value Loss Value Loss Collaterized mortgage obligations $ 7,917 $ (194) $ 876 $ (17) $ 8,793 $ (211) Agency mortgage-backed securities 42,109 (414) 197 (5) 42,306 (419) Municipal securities 18,603 (180) — — 18,603 (180) U.S. Government agency securities 13,976 (420) 15,942 (849) 29,918 (1,269) Corporate securities 1,474 (26) — — 1,474 (26) $ 84,079 $ (1,234) $ 17,015 $ (871) $ 101,094 $ (2,105) At December 31, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Loss Value Loss Value Loss Collaterized mortgage obligations $ 201 $ — $ 1,188 $ (14) $ 1,389 $ (14) Agency mortgage-backed securities — — 566 (10) 566 (10) Municipal securities 851 (2) — — 851 (2) U.S. Government agency securities 24,160 (308) 481 (2) 24,641 (310) $ 25,212 $ (310) $ 2,235 $ (26) $ 27,447 $ (336) At December 31, 2021 and 2020, the Company did not have any securities that had impairment charges. The Company's investment securities portfolio consists primarily of debt securities issued by U.S. Government agencies, U.S. Government-sponsored agencies, Corporate securities, state governments and local municipalities. There were no private label mortgage-backed securities ("MBS") or collateralized mortgage obligations ("CMO") held in the investment securities portfolio as of December 31, 2021 and December 31, 2020. The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Net unrealized gains and losses in the available for sale portfolio are included in shareholders' equity as a component of accumulated other comprehensive income or loss, net of tax. An unrealized loss exists when the current fair value of an individual security is less than the amortized cost basis. The Company does not believe that the available-for-sale debt securities that were in an unrealized loss position have any credit loss impairment upon adoption of ASC 326 on January 1, 2021 or as of December 31, 2021. As of December 31, 2021, the Company did not intend to sell the investment securities that were in an unrealized loss position. It is more likely than not that the Company will not be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. Available-for-sale debt securities issued by U.S. government agencies or U.S. government sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Municipal bonds are considered to have issuer(s) of high credit quality (rated A or higher) and the decline in fair value is due to changes in interest rates and other market conditions. Corporate securities are non-rated investments that are booked as a debt security where rating agencies do not provide a rating. The absence of a rating does not imply substandard quality. Non-rated corporate securities may be purchased from issuers operating in and around the Company’s operating footprint. The issuer(s) continues to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bond(s) approach maturity. The Company held fifty-two U.S. Government agency, twenty-five collateralized mortgage obligations, one corporate security, and twenty-nine agency mortgage-backed securities that were in an unrealized loss position at December 31, 2021. Principal and interest payments of the underlying collateral for each of these securities are backed by U.S. Government sponsored agencies and carry minimal credit risk. Management found no evidence of credit loss impairment on any of these securities and believes the unrealized losses are due to fluctuations in fair values resulting from changes in market interest rates and are considered temporary as of December 31, 2021. All municipal securities held in the investment portfolio are reviewed on at least a quarterly basis for credit loss impairment. Each bond carries an investment grade rating by either Moody's or Standard & Poor's. In addition, the Company periodically conducts its own independent review on each issuer to ensure the financial stability of the municipal entity. The largest geographic concentration was in Maryland and consisted of either general obligation or revenue bonds backed by the taxing power of the issuing municipality. At December 31, 2021, the investment portfolio included nine municipal securities that were in an unrealized loss position. Management believes the unrealized losses were the result of movements in long-term interest rates and are not reflective of any credit deterioration. At December 31, 2021 and 2020, investment securities in the amount of approximately $1.2 million and $0.9 million, respectively were pledged as collateral for interest rate swap contracts. Unrealized losses on securities in the investment portfolio amounted to $2.1 million with a total fair value of $101.1 million as of December 31, 2021 compared to unrealized losses of $0.3 million with a total fair value of $27.4 million as of December 31, 2020. The Company believes the unrealized losses presented in the tables above are temporary in nature and primarily related to market interest rates or limited trading activity in a particular type of security rather than the underlying credit quality of the issuers. The Company does not believe that these losses are other than temporary and does not currently intend to sell or believe it will be required to sell securities in an unrealized loss position prior to maturity or recovery of the amortized cost bases. In 2018, the Board of Directors at Maryland Financial Bank (“MFB”) determined that it was advisable and in the best interests of stockholders to undertake the liquidation and dissolution of MFB. I On July 16, 2019, all remaining assets and liabilities of MFB were transferred to the MFB Dissolution Trust (the “Trust”). The purpose of the Trust is to liquidate the remaining assets, resolve the remaining liabilities, and to distribute the net proceeds. The Trust is intended to be a "liquidating trust" for U.S. federal income tax purposes. At December 31, 2019, the Trust was unable to complete all its activities and make cash liquidating distributions to its stockholders due to the bankruptcy of a borrower that has a commercial real estate loan. In 2019, the Bank reduced its investment in the Trust to the projected value of $0.53 per share and decreased the value of its Trust units from $5,000 to $2,650, a $2,350 decrease in value. The following table presents investment securities by stated maturity at December 31, 2021. Collateralized mortgage obligations and agency mortgage-backed securities have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties and, therefore, these securities are classified separately with no specific maturity date. At December 31, 2021 Amortized Fair (dollars in thousands) Cost Value Due within one year $ — $ — Due over one to five years 3,448 3,507 Due over five to ten years 11,015 10,902 Due over ten years 62,747 62,167 Collaterized mortgage obligations 23,230 23,162 Agency mortgage-backed securities 56,252 56,189 Total securities available for sale $ 156,692 $ 155,927 Proceeds from sales of available for sale securities prior to maturity totaled $32.7 million for the year ended December 31, 2021. No investment securities were sold in 2020. The Bank realized net losses of $588,000 and net gains of $6,000 for the years ended December 31, 2021 and 2020, respectively. Realized gains and losses were calculated based on the amortized cost of the securities at the date of trade. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses - Loans | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Credit Losses - Loans | |
Loans and Allowance for Credit Losses - Loans | Note 4. Loans and Allowance for Credit Losses - Loans The following table sets forth the Company's gross loans by major categories as of December 31, 2021 and 2020: December 31, (dollars in thousands) 2021 2020 Loans Secured by Real Estate Construction and land $ 4,087 $ 2,553 Farmland 342 350 Singlefamily residential 78,119 82,520 Multifamily 5,428 6,105 Commercial 48,729 57,027 Total loans secured by real estate 136,705 148,555 Commercial and Industrial Commercial and industrial 10,003 10,800 SBA guaranty 6,397 7,200 Comm SBA PPP 1,047 9,912 Total commercial and industrial loans 17,447 27,912 Consumer Loans Consumer 2,090 3,063 Automobile 54,150 74,242 Total consumer loans 56,240 77,305 Loans, net of deferred fees and costs 210,392 253,772 Less: Allowance for credit losses (2,470) (1,476) Loans, net $ 207,922 $ 252,296 The Company currently manages its credit products and the respective exposure to credit losses by specific portfolio segments and classes, which are levels at which the Company develops and documents its systematic methodology to determine the allowance for credit losses. The Company believes each portfolio segment has unique risk characteristics. The Company's loans held for investment is divided into three portfolio segments: loans secured by real estate, commercial and industrial loans, and consumer loans. Each of these segments is further divided into loan classes for purposes of estimating the allowance for credit losses. The Bank’s indirect loan group included $54.2 million and $74.2 million of such loans at December 31, 2021 and 2020, respectively. million at December 31, 2021 and 2020, respectively. This loan type is discussed in “Note 1. Nature of Business The Bank makes loans to customers located primarily in Anne Arundel County and surrounding areas of Central Maryland. Although the loan portfolio is diversified, its performance will be influenced by the economy of the region. Included in loans are loans due from directors, and other related parties of $0 at December 31, 2021, and $0.3 million at December 31, 2020. These loans are made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with unrelated borrowers. The Board of Directors approves loans to directors, and other related parties to confirm that collateral requirements, terms and rates are comparable to other borrowers and are in compliance with underwriting policies. The following presents the activity in amount due from directors and other related parties for the years ended December 31, 2021 and 2020. December 31, (dollars in thousands) 2021 2020 Balance at beginning of year $ 276 $ 371 Additions 90 368 Repayments (366) (463) Balance at end of year $ — $ 276 Allowance for Credit Losses Credit Risk and Allowance for Credit Losses - Loans. Credit risk is the risk of loss arising from the inability of a borrower to meet his or her obligations and entails both general risks, which are inherent in the process of lending, and risks specific to individual borrowers. Credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry, or collateral type. Residential mortgage and home equity loans and lines generally have the lowest credit loss experience. Loans secured by personal property, such as auto loans, generally experience medium credit losses. Unsecured loan products, such as personal revolving credit, have the highest credit loss experience and for that reason, the Bank has chosen not to engage in a significant amount of this type of lending. Credit risk in commercial lending can vary significantly, as losses as a percentage of outstanding loans can shift widely during economic cycles and are particularly sensitive to changing economic conditions. Generally, improving economic conditions result in improved operating results on the part of commercial customers, enhancing their ability to meet their particular debt service requirements. Improvements, if any, in operating cash flows can be offset by the impact of rising interest rates that may occur during improved economic times. Inconsistent economic conditions may have an adverse effect on the operating results of commercial customers, reducing their ability to meet debt service obligations. On January 1, 2021, the Company early adopted ASU 2016-13, Financial Instruments - Credit Losses (“ASC 326”) which replaces the “incurred loss approach” for estimating credit losses with an expected loss methodology. The incurred loss model delayed the recognition of credit losses until it was probable that a loss had occurred, while the CECL model requires the immediate recognition of expected credit losses over the contractual term for financial instruments that fall within the scope of CECL at the date of origination or purchase of the financial instrument. The CECL model, which is applicable to the measurement of credit losses on financial assets measured at amortized cost and certain off-balance sheet credit exposures, affects the Company’s estimates of the allowance for credit losses for our loan portfolio and the reserve for our off-balance sheet credit exposures related to loan commitments. The allowance for credit losses - loans is established through a provision for credit losses charged to expense. Loans are charged against the allowance for credit losses - loans when management believes that the collectability of the principal is unlikely. The allowance, based on all available information from internal and external sources, relevant to assessing the collectability of loans over their contractual terms, adjusted for expected prepayments when appropriate, is an amount that management believes will be adequate to absorb possible losses on existing loans that may become uncollectible. The evaluations are performed for each class of loans and take into consideration factors such as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, value of collateral securing the loans and current economic conditions and trends that may affect the borrowers’ ability to pay. For example, delinquencies in unsecured loans and indirect automobile installment loans will be reserved for at significantly higher ratios than loans secured by real estate. Finally, the Company considers forecasts about future economic conditions or changes in collateral values that are reasonable and supportable. Based on that analysis, the Bank deems its allowance for credit losses - loans in proportion to the total nonaccrual loans and past due loans to be sufficient. As a result of the adoption of ASC 326 in the first quarter of 2021, with an effective date of January 1, 2021, there is a lack of comparability in both the allowance and provisions for credit losses for the periods presented. Results for reporting periods beginning after January 1, 2021 are presented using the CECL methodology, while comparative period information continues to be reported in accordance with the incurred loss methodology in effect for prior years. The following table presents the total allowance by loan segment: Loans Secured By Real Estate Commercial and Industrial Loans Consumer Loans December 31, 2021 Construction Single-family Commercial Commercial (dollars in thousands) and Land Farmland Residential Multi-family Commercial and Industrial SBA Guaranty SBA PPP Consumer Automobile Total Balance, beginning of year $ 9 $ 2 $ 513 $ 39 $ 218 $ 67 $ 48 $ — $ 11 $ 569 $ 1,476 Impact of ASC 326 adoption 16 9 854 63 199 120 (6) — 46 273 1,574 Charge-offs — — — — — — — — (2) (251) (253) Recoveries — — 408 — — — — — — 240 648 Release for credit losses (20) — (418) 3 (139) (72) (12) — (19) (298) (975) Balance, end of year $ 5 $ 11 $ 1,357 $ 105 $ 278 $ 115 $ 30 $ — $ 36 $ 533 $ 2,470 Individually evaluated for impairment: Balance in allowance $ — $ — $ 10 $ — $ — $ — $ — $ — $ — $ — $ 10 Related loan balance — — 36 — — — — — — — 36 Collectively evaluated for impairment: Balance in allowance $ 5 $ 11 $ 1,347 $ 105 $ 278 $ 115 $ 30 $ — $ 36 $ 533 $ 2,460 Related loan balance 4,087 342 78,083 5,428 48,729 10,003 6,397 1,047 2,090 54,150 210,356 Loans Secured By Real Estate Commercial and Industrial Loans Consumer Loans December 31, 2020 Construction Single-family Commercial Commercial (dollars in thousands) and Land Farmland Residential Multi-family Commercial and Industrial SBA Guaranty SBA PPP Consumer Automobile Total Balance, beginning of year $ 24 $ 2 $ 849 $ 40 $ 241 $ 69 $ 25 $ — $ 11 $ 805 $ 2,066 Charge-offs — — — — — — — — — (392) (392) Recoveries — — 266 — — 20 — — 6 199 491 Release for credit losses (15) — (602) (1) (23) (22) 23 — (6) (43) (689) Balance, end of year $ 9 $ 2 $ 513 $ 39 $ 218 $ 67 $ 48 $ — $ 11 $ 569 $ 1,476 Individually evaluated for impairment: Balance in allowance $ — $ — $ — $ — $ — $ — $ — $ — $ 11 $ — $ 11 Related loan balance — — 132 — — 4,493 — — 39 — 4,664 Collectively evaluated for impairment: Balance in allowance $ 9 $ 2 $ 513 $ 39 $ 218 $ 67 $ 48 $ — $ — $ 569 $ 1,465 Related loan balance 2,553 350 82,388 6,105 57,027 6,307 7,200 9,912 3,024 74,242 249,108 Management believes the allowance for credit losses is at an appropriate level to absorb inherent probable losses in the portfolio. The following table rolls forward the Company’s activity for nonaccrual loans during the years 2021 and 2020: Commercial and Loans Secured By Real Estate Industrial Loans Consumer Loans Single-family Residential Multi-family Commercial SBA Guaranty Consumer Automobile Total (dollars in thousands) December 31, 2019 $ 790 $ 24 $ 3,139 $ — $ 51 $ 123 $ 4,127 Transfers into nonaccrual 64 — 1,619 — — 551 2,234 Loans paid down/payoffs (584) (24) (152) — (17) (103) (880) Loans returned to accrual status — — (577) — — (17) (594) Loans charged off — — — — — (375) (375) December 31, 2020 $ 270 $ — $ 4,029 $ — $ 34 $ 179 $ 4,512 Transfers into nonaccrual 920 71 1 291 1,283 Loans paid down/payoffs (147) $ — (3,987) $ — (1) (83) (4,218) Loans returned to accrual status — — (962) — (34) — (996) Loans charged off — — — — — (243) (243) December 31, 2021 $ 123 $ — $ — $ 71 $ — $ 144 $ 338 Credit Quality Information In addition to monitoring the performance status of the loan portfolio, the Company utilizes a risk rating scale (1-8) to evaluate loan asset quality for all loans. Loans that are rated 1-4 are classified as “pass” credits. For the pass rated loans, management believes there is a low risk of loss related to these loans and as necessary, credit may be strengthened through improved borrower performance and/or additional collateral. Loans rated a 5 (Special Mention) are pass credits, but are loans that have been identified that warrant additional attention and monitoring and represent “criticized” assets. Loans rated a 6 (Substandard) or higher are considered “criticized” loans and represent an increased level of credit risk. The use and application of these risk ratings by the Bank conform to the Bank's policy and regulatory definitions. The Bank’s internal risk ratings are as follows: 1 – 4 (Pass) - Pass credits are loans in grades “superior” through “acceptable”. These are at least considered to be credits with acceptable risks and would be granted in the normal course of lending operations. 5 (Special Mention) - Special mention credits have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credits or in the Bank’s credit position at some future date. If weaknesses cannot be identified, classifying as special mention is not appropriate. Special mention credits are not adversely classified and do not expose the Bank to sufficient risk to warrant an adverse classification. No apparent loss of principal or interest is expected. 6 (Substandard) - Substandard credits are inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged. Financial statements normally reveal some or all of the following: poor trends, lack of earnings and cash flow, excessive debt, lack of liquidity, and the absence of creditor protection. Credits so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 7 (Doubtful) - A doubtful credit has all the weaknesses inherent in a substandard asset with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. Doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded Substandard. In the normal course of loan portfolio management, loan originators are responsible for continuous assessment of credit risk arising from the individual borrowers within their portfolio and assigning appropriate risk ratings. Credit Administration is responsible for ensuring the integrity and operation of the risk rating system and maintenance of the watch list. The Bank contracts with an independent 3 rd party loan review firm that reviews and validates the internal credit risk program on an annual basis. Results of these reviews are presented to the Audit Committee for approval and then to management for implementation. The loan review process compliments and reinforces the risk identification and assessment decisions made by the lenders and credit personnel as well as the Bank’s policies and procedures. The following table provides information with respect to the Company's risk ratings by loan portfolio segment: Loans Secured By Real Estate Commercial and Industrial Loans Consumer Loans December 31, 2021 Construction Single-family Commercial Commercial (dollars in thousands) and Land Farmland Residential Multi-family Commercial and Industrial SBA Guaranty SBA PPP Consumer Automobile Total Pass $ 4,072 $ 342 $ 77,996 $ 5,428 $ 45,307 $ 10,003 $ 6,326 $ 1,047 $ 2,084 $ 54,006 $ 206,611 Special mention 15 — — — 3,422 — — — 6 4 3,447 Substandard — — 123 — — — 71 — — 50 244 Doubtful — — — — — — — — — 90 90 Loss — — — — — — — — — — — $ 4,087 $ 342 $ 78,119 $ 5,428 $ 48,729 $ 10,003 $ 6,397 $ 1,047 $ 2,090 $ 54,150 $ 210,392 Nonaccrual $ — $ — $ 123 $ — $ — $ — $ 71 $ — $ — $ 144 $ 338 Troubled debt restructures $ — $ — $ 36 $ — $ — $ — $ — $ — $ — $ — $ 36 Number of TDRs accounts — — 1 — — — — — — — 1 Non-performing TDRs $ — $ — $ 36 $ — $ — $ — $ — $ — $ — $ — $ 36 Number of non-performing TDR accounts — — 1 — — — — — — — 1 Loans Secured By Real Estate Commercial and Industrial Loans Consumer Loans December 31, 2020 Construction Single-family Commercial Commercial (dollars in thousands) and Land Farmland Residential Multi-family Commercial and Industrial SBA Guaranty SBA PPP Consumer Automobile Total Pass $ 2,553 $ 350 $ 82,310 $ 6,105 $ 52,534 $ 10,800 $ 7,200 $ 9,912 $ 3,030 $ 74,064 $ 248,858 Special mention — — — — — — — — — — — Substandard — — 210 — 4,493 — — — 33 62 4,798 Doubtful — — — — — — — — — 116 116 Loss — — — — — — — — — — — $ 2,553 $ 350 $ 82,520 $ 6,105 $ 57,027 $ 10,800 $ 7,200 $ 9,912 $ 3,063 $ 74,242 $ 253,772 Nonaccrual $ — $ — $ 270 $ — $ 4,029 $ — $ — $ — $ 34 $ 179 $ 4,512 Troubled debt restructures $ — $ — $ 39 $ — $ — $ — $ — $ — $ — $ — $ 39 Number of TDRs accounts — — 1 — — — — — — — 1 Non-performing TDRs $ — $ — $ 39 $ — $ — $ — $ — $ — $ — $ — $ 39 Number of non-performing TDR accounts — — 1 — — — — — — — 1 The following tables provide information about credit quality indicators by the year of origination at December 31, 2021 and 2020: Origination Year (dollars in thousands) 2021 2020 2019 2018 2017 Prior Total December 31, 2021 Loans Secured By Real Estate: Pass $ 16,498 $ 12,135 $ 10,671 $ 13,558 $ 6,715 $ 73,568 $ 133,145 Special mention — — — 787 — 2,650 3,437 Substandard — — — — — — — Nonaccrual — — — — — 123 123 Doubtful — — — — — — — Loss — — — — — — — $ 16,498 $ 12,135 $ 10,671 $ 14,345 $ 6,715 $ 76,341 $ 136,705 Commercial and Industrial Loans: Pass $ 2,766 $ 4,172 $ 1,066 $ 4,128 $ 1,198 $ 4,046 $ 17,376 Special mention — — — — — — — Substandard — — — — — — — Nonaccrual — — — — — 71 71 Doubtful — — — — — — — Loss — — — — — — — $ 2,766 $ 4,172 $ 1,066 $ 4,128 $ 1,198 $ 4,117 $ 17,447 Consumer Loans: Pass $ 12,271 $ 8,222 $ 11,176 $ 16,706 $ 4,908 $ 2,808 $ 56,091 Special mention — — — 5 — — 5 Substandard — — — — — — — Nonaccrual 28 5 38 40 29 4 144 Doubtful — — — — — — — Loss — — — — — — — $ 12,299 $ 8,227 $ 11,214 $ 16,751 $ 4,937 $ 2,812 $ 56,240 Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Total December 31, 2020 Loans Secured By Real Estate: Pass $ 13,432 $ 11,902 $ 17,234 $ 10,472 $ 12,013 $ 78,801 $ 143,854 Special mention — — — — — — — Substandard — — — — — 402 402 Nonaccrual — — — 2,597 — 1,702 4,299 Doubtful — — — — — — — Loss — — — — — — — $ 13,432 $ 11,902 $ 17,234 $ 13,069 $ 12,013 $ 80,905 $ 148,555 Commercial and Industrial Loans: Pass $ 14,906 $ 1,855 $ 4,034 $ 1,686 $ 1,338 $ 4,093 $ 27,912 Special mention — — — — — — — Substandard — — — — — — — Nonaccrual — — — — — — — Doubtful — — — — — — — Loss — — — — — — — $ 14,906 $ 1,855 $ 4,034 $ 1,686 $ 1,338 $ 4,093 $ 27,912 Consumer Loans: Pass $ 11,315 $ 17,415 $ 29,259 $ 11,835 $ 4,456 $ 2,812 $ 77,092 Special mention — — — — — — — Substandard — — — — — — — Nonaccrual — 21 120 32 5 35 213 Doubtful — — — — — — — Loss — — — — — — — $ 11,315 $ 17,436 $ 29,379 $ 11,867 $ 4,461 $ 2,847 $ 77,305 Troubled Debt Restructurings The restructuring of a loan constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider in the normal course of business. A concession may include an extension of repayment terms which would not normally be granted, a reduction of interest rate or the forgiveness of principal and/or accrued interest. If the debtor is experiencing financial difficulty and the creditor has granted a concession, the Company will make the necessary disclosures related to the TDR. In certain cases, a modification may be made in an effort to retain a customer who is not experiencing financial difficulty. This type of modification is not considered to be a TDR. Once a loan has been modified and is considered a TDR, it is reported as an impaired loan. All TDRs are evaluated individually for impairment on a quarterly basis as part of the allowance for credit losses calculation. A specific allowance for TDR loans is established when the discounted cash flows, collateral value or observable market price, whichever is appropriate, of the TDR is lower than the carrying value. If a loan deemed a TDR has performed for at least six months at the level prescribed by the modification, it is not considered to be non-performing; however, it will generally continue to be reported as impaired, but may be returned to accrual status. A TDR is deemed in default on its modified terms once a contractual payment is 30 or more days past due. There were no new loans modified as TDRs for the years ended December 31, 2021 and 2020. At December 31, 2021, the recorded investment in TDR’s reflected one loan in the amount of $36,139 which is on nonaccrual. At December 31, 2020, the recorded investment in TDR’s reflected one loan in the amount of $38,711 which was on nonaccrual. The Bank has no commitments to loan additional funds to the borrowers of restructured, impaired, or nonaccrual loans. Asset Quality The following table presents the loan portfolio segments summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2021 and 2020: 90 Days or 30-89 Days More and December 31, 2021 Current Past Due Still Accruing Nonaccrual Total (dollars in thousands) Loans Secured by Real Estate Construction and land $ 4,087 $ — $ — $ — $ 4,087 Farmland 342 — — — 342 Single-family residential 77,981 — 15 123 78,119 Multi-family 5,428 — — — 5,428 Commercial 48,729 — — — 48,729 Total loans secured by real estate 136,567 — 15 123 136,705 Commercial and Industrial Commercial and industrial 10,003 — — — 10,003 SBA guaranty 6,326 — — 71 6,397 Comm SBA PPP 1,047 — — — 1,047 Total commercial and industrial loans 17,376 — — 71 17,447 Consumer Loans Consumer 2,086 4 — — 2,090 Automobile 53,655 351 — 144 54,150 Total consumer loans 55,741 355 — 144 56,240 $ 209,684 $ 355 $ 15 $ 338 $ 210,392 90 Days or 30-89 Days More and December 31, 2020 Current Past Due Still Accruing Nonaccrual Total (dollars in thousands) Loans Secured by Real Estate Construction and land $ 2,553 $ — $ — $ — $ 2,553 Farmland 350 — — — 350 Singlefamily residential 81,057 1,175 18 270 82,520 Multi-family 6,105 — — — 6,105 Commercial 52,424 574 — 4,029 57,027 Total loans secured by real estate 142,489 1,749 18 4,299 148,555 Commercial and Industrial — Commercial and industrial 10,800 — — — 10,800 SBA guaranty 7,200 — — — 7,200 Comm SBA PPP 9,912 — — — 9,912 Total commercial and industrial loans 27,912 — — — 27,912 Consumer Loans — Consumer 3,029 — — 34 3,063 Automobile 73,611 452 — 179 74,242 Total consumer loans 76,640 452 — 213 77,305 0 $ 247,041 $ 2,201 $ 18 $ 4,512 $ 253,772 Loans on which the accrual of interest has been discontinued totaled $0.3 million and $4.5 million at December 31, 2021 and 2020, respectively. The Bank recognizes interest income on non-accrual loans using a cash basis method for the time they are on non-accrual. Interest income that was recognized on these non-accrual loans totaled $14,000 and $201,000 for the years ended December 31, 2021 and 2020. Loans past due 90 days or more and still accruing interest totaled $15,000, and $18,000 at December 31, 2021 and 2020, respectively. Management believes these particular loans are well secured and in the process of full collection of all amounts owed. Nonaccrual loans with specific reserves at December 31, 2021 are comprised of: Consumer Impaired Loans The following table presents information with respect to impaired loans. Management determined the specific reserve in the allowance based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the remaining source of repayment for the loan is the operation or liquidation of the collateral. In those cases, the current fair value of the collateral, less estimated selling costs is used to determine the specific allowance recorded. Unpaid Interest Average December 31, 2021 Recorded Principal Income Specific Recorded (dollars in thousands) Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Loans Secured by Real Estate Construction and land $ — $ — $ — $ — $ — Farmland — — — — — Single-family residential 26 36 2 10 49 Multi-family — — — — — Commercial — — — — — Total loans secured by real estate 26 36 2 10 49 Commercial and Industrial Commercial and industrial — — — — — SBA guaranty — — — — — Total commercial and industrial loans — — — — — Consumer Loans Consumer — — — — — Automobile — — — — — Total consumer loans — — — — — Total impaired loans with specific reserves $ 26 $ 36 $ 2 $ 10 $ 49 Impaired loans with no specific reserve: Loans Secured by Real Estate Construction and land $ — $ — $ — $ n/a $ — Farmland — — — n/a — Single-family residential 87 87 3 n/a 98 Multi-family — — — n/a — Commercial — — — n/a — Total loans secured by real estate 87 87 3 — 98 Commercial and Industrial Commercial and industrial — — — n/a — SBA guaranty 71 71 1 n/a 71 Total commercial and industrial loans 71 71 1 — 71 Consumer Loans Consumer — — — n/a — Automobile 143 143 8 n/a 181 Total consumer loans 143 143 8 n/a 181 Total impaired loans with no specific reserve $ 301 $ 301 $ 12 $ — $ 350 Unpaid Interest Average December 31, 2020 Recorded Principal Income Specific Recorded (dollars in thousands) Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Loans Secured by Real Estate Construction and land $ — $ — $ — $ — $ — Farmland — — — — — Single-family residential 28 39 2 11 50 Multi-family — — — — — Commercial — — — — — Total loans secured by real estate 28 39 2 11 50 Commercial and Industrial Commercial and industrial — — — — — SBA guaranty — — — — — Total commercial and industrial loans — — — — — Consumer Loans Consumer — — — — — Automobile — — — — — Total consumer loans — — — — — Total impaired loans with specific reserves $ 28 $ 39 $ 2 $ 11 $ 50 Impaired loans with no specific reserve: Loans Secured by Real Estate Construction and land $ — $ — $ — $ n/a $ — Farmland — — — n/a — Single-family residential 232 383 — n/a 544 Multi-family — — — n/a — Commercial 4,493 4,493 185 n/a 4,315 Total loans secured by real estate 4,725 4,876 185 — 4,859 Commercial and Industrial Commercial and industrial — — — n/a — SBA guaranty — — — n/a — Total commercial and industrial loans — — — — — Consumer Loans Consumer 34 34 4 n/a 43 Automobile 117 117 10 n/a 227 Total consumer loans 151 151 14 n/a 270 Total impaired loans with no specific reserve $ 4,876 $ 5,027 $ 199 $ — $ 5,129 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Premises and Equipment | Note 5. Premises and Equipment A summary of premises and equipment is as follows: Useful December 31, lives 2021 2020 (dollars in thousands) Land $ 685 $ 685 Buildings 5-50 years 6,723 6,672 Equipment and fixtures 5-30 years 8,354 8,055 Construction in progress 36 99 Operating Lease Assets 478 623 16,276 16,134 Accumulated depreciation (12,712) (12,281) $ 3,564 $ 3,853 Depreciation expense totaled $0.3 million for the years ended December 31, 2021 and 2020. Amortization of software totaled $0.1 million for the years ended December 31, 2021 and 2020. Operating lease Right-of-Use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. . per year through September 2022. Minimum lease obligations under the Linthicum branch are $148,756 per year through December 2024, adjusted annually on a pre-determined basis. The Bank is also required to pay all maintenance costs under all these leasing arrangements. Income from rent totaled $69,312 and $65,383 and rent expense totaled $177,845 for the years ended December 31, 2021 and 2020, respectively. The Bank uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. Lease terms may include options to extend or terminate when the Company is reasonably certain that the option will be exercised. Future minimum payments of the Bank’s operating leases as of December 31, 2021 are as follows: Year ending December 31, Amount (dollars in thousands) 2022 $ 177 2023 156 2024 161 2025 3 2026 2 Thereafter — Total $ 499 |
Federal Home Loan Bank and Shor
Federal Home Loan Bank and Short-term Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Federal Home Loan Bank and Short-term Borrowings | |
Federal Home Loan Bank and Short-term Borrowings | Note 6. Federal Home Loan Bank, Short- and Long-term Borrowings The Bank owned 10,598 shares of common stock of the FHLB at December 31, 2021. The Bank is required to maintain an investment of 0.05% of total assets with a dollar cap of $16.2 million, adjusted annually, plus 3.75 % of total advances, adjusted for advances and repayments. The credit available under this facility is determined at 25% of the Bank’s total assets, or approximately $108.2 million at December 31, 2021. Short-term advances totaled $10.0 million under this credit arrangement at December 31, 2021 and long-term advances were $10.0 million at December 31, 2021. This credit facility is secured by a floating lien on the Bank’s residential mortgage loan portfolio. Average short-term borrowings approximated $19.8 million and $24.3 million for 2021 and 2020, respectively and the weighted average interest rate was 2.34% and 1.94 %, respectively. Average long-term borrowings approximated $2.1 million and $0 for 2021 and 2020, respectively. There were no interest payments made on long-term borrowings for the year ended December 31, 2021. The Federal Home Loan Bank of Atlanta, convertible and adjustable advances total include the following: A $10.0 million adjustable rate advance issued on December 31, 2021, which has a final maturity of October 31, 2022. This advance had a 0.20% interest rate at December 31, 2021, with interest payable quarterly. The proceeds of the adjustable rate advance were used as a hedging instrument for the Company’s interest rate swap agreements. A $5.0 million adjustable rate advance issued on December 24, 2021, which has a final maturity of August 24, 2023 . This advance has a 0.26 % interest rate at December 31, 2021, with interest payable quarterly. The proceeds of the adjustable rate advance were used A $5.0 million adjustable rate advance issued on December 27, 2021, which has a final maturity of July 27, 2023 . This advance has a 0.28 % interest rate at December 31, 2021, with interest payable quarterly. The proceeds of the adjustable rate advance were used At December 31, 2021 the Bank had available unsecured federal funds lines of credit from two financial institutions for $9.0 million and $8.0 million. Derivatives During the fourth quarter of 2017, the Company entered into interest rate swaps to manage interest rate risk. These derivative contracts involve the receipt of floating rate interest from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. These instruments are designated as cash flow hedges as the receipt of floating rate interest from the counterparty is used to manage interest rate risk associated with forecasted issuances of short-term FHLB advances. The change in the fair value of this hedging instrument is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged transaction affects earnings. For derivative financial instruments accounted for as hedging instruments, we formally designate and document, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective, and the manner in which the effectiveness of the hedge will be assessed. We formally assess both at inception and at each reporting period thereafter, whether the derivative financial instruments used in hedging transactions are effective in offsetting changes in cash flows of the related underlying exposures. Any ineffective portion of the changes in cash flow of the instruments is recognized immediately into earnings. ASC 815-10, Derivatives and Hedging (“ASC 815”) requires companies to recognize all derivative instruments as assets or liabilities at fair value in the consolidated balance sheets. In accordance with ASC 815, we designated our interest rate swaps as cash flow hedges of certain active and forecasted variable rate FHLB advances. Changes in the fair value of the hedging instrument, except any ineffective portion, were recorded in accumulated other comprehensive income (loss) until earnings were impacted by the hedged instrument. No components of our hedging instruments were excluded from the assessment of hedge effectiveness in hedging exposure to variability in cash flows. Classification of the gain or loss in the consolidated statements of income upon release from accumulated other comprehensive income (loss) is the same as that of the underlying exposure. We discontinue the use of hedge accounting prospectively when (1) the derivative instrument is no longer effective in offsetting changes in fair value or cash flows of the underlying hedged item; (2) the derivative instrument expires, is sold, terminated, or exercised; or (3) designating the derivative instrument as a hedge is no longer appropriate. When we discontinue hedge accounting because it is no longer probable that an anticipated transaction will occur in the originally expected period, or within an additional two-month period thereafter, changes to fair value that were recorded in accumulated other comprehensive income (loss) are recognized immediately in earnings. As of December 31, 2021, the Company had three outstanding interest rate swaps designated as a cash flow hedges with an aggregate notional value of $20.0 million. The agreements have five year terms and stipulates that the counterparty will pay the Company interest at three-month LIBOR and the Company will pay fixed rates of interest at 2.105%, 2.235% and 2.246% on the $10.0 million, $5.0 million and $5.0 million notional amounts, respectively. These interest rate swaps of $10.0 million, $5.0 million and $5.0 million mature on October 2022, July 2023, and August 2023, respectively, and hedge three-month FHLB advances that will be renewed every year at the SOFR interest rate at that time. The $10.0 million contract is an interest rate swap that became effective in November 2017 and the two $5.0 million contracts are interest rate swaps that became effective in July 2018 and August 2018. After-tax unrealized losses of $126,000, $99,000, and $96,000 were recognized in accumulated other comprehensive income for the year ended December 31, 2021 and unrealized losses of $281,000, $204,000, and $204,000 were recognized in accumulated other comprehensive income for the year ended December 31, 2020. There was no ineffective portion of these hedges. The Company pays or receives the net interest amount quarterly and includes this amount as part of FHLB advances interest expense on the consolidated income statements. The cash flow hedges were determined to be fully effective during all periods presented. As such, no ineffectiveness has been included in net income. The following table reflects information about swaps designated as cash flow hedges as of December 31, 2021 and 2020: At December 31, 2021 2020 Unrealized Unrealized Notional Pay Receive Assets/ Loss Assets/ Loss (dollars in thousands) Amount Rate Rate Term Liabilities AOCI Liabilities AOCI Interest rate swap $ 10,000 2.105 % 3M LIBOR 11/2017 - 10/2022 $ (174) $ (126) $ (387) $ (281) Interest rate 5,000 2.235 % 3M LIBOR 7/2018 - 7/2023 (136) (99) (281) (204) Interest rate 5,000 2.246 % 3M LIBOR 8/2018 - 8/2023 (132) (96) (281) (204) Total $ 20,000 $ (442) $ (321) $ (949) $ (689) The following table reflects the total interest expense recorded on these swap transactions in the consolidated statements of income during the year ended December 31, 2021 and December 31, 2020: Years Ended December 31, (dollars in thousands) Bank Position 2021 2020 Interest rate swap on FHLB advance Pay fixed/receive variable $ (194) $ (113) Interest rate swap on FHLB advance Pay fixed/receive variable (105) (63) Interest rate swap on FHLB advance Pay fixed/receive variable (105) (65) Total $ (404) $ (241) The Bank is required to pledge securities as collateral for all swaps with dealer counterparties. The fair value of cash or investment securities pledged as collateral by the Bank totaled $1,175,000 and $949,000 at December 31, 2021 and 2020. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Deposits | Note 7. Deposits The following table summarizes the major classifications of deposit balances as of the dates indicated: December 31, 2021 2020 (dollars in thousands) Noninterest-bearing deposits $ 155,624 $ 132,626 Interest-bearing deposits: Interest-bearing checking 37,305 32,601 Money Market 23,103 19,077 Savings 106,818 97,036 Time deposits, $100,000 or more 24,624 28,270 Time deposits below $100,000 35,773 40,010 Total interest- bearing deposits 227,623 216,994 Total Deposits $ 383,247 $ 349,620 Interest expense on deposits for the years ended December 31, 2021 and 2020 is as follows: 2021 2020 (dollars in thousands) Interest-bearing checking $ 11 $ 9 Money Market 11 9 Savings 51 60 Time deposits, $100,000 or more 248 440 Time deposits below $100,000 288 525 Total Interest Expense $ 609 $ 1,043 The Bank recognized $0.2 million of fee income from deposits for the years ended December 31, 2021 and 2020. At December 31, 2021, the scheduled maturities of time deposits are approximately as follows: (dollars in thousands) Amount Maturing in: 2022 $ 32,541 2023 9,886 2024 8,802 2025 3,916 2026 4,323 2027 and thereafter 929 Total Time Deposits $ 60,397 Deposit balances of executive officers and directors and their affiliated interests totaled approximately $2.2 million and $2.8 million at December 31, 2021 and 2020, respectively. The Bank had no brokered deposits at December 31, 2021 and 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | Note 8. Income Taxes The components of income tax expense are as follows for the years ended December 31, 2021 and 2020: 2021 2020 (dollars in thousands) Current income tax expense: Federal $ 211 $ 89 State 84 157 Total current tax expense 295 246 Deferred income tax expense: Federal 198 217 State 84 28 Total deferred tax expense 282 245 Total Income tax expense $ 577 $ 491 A reconciliation of income tax expense computed at the statutory rate of 21%at December 31, 2021 and December 31, 2020 to the actual income tax expense for the years ended December 31, 2021 and 2020 is as follows: 2021 2020 (dollars in thousands) Income tax expense at federal statutory rate $ 650 $ 453 (Decrease) increase resulting from: Tax-exempt income (181) (75) Bank owned life insurance (33) (33) State income taxes, net of Federal income tax benefit 133 146 Other 8 — Total income tax expense $ 577 $ 491 Deferred tax assets and liabilities resulting from the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at December 31, 2021 and 2020 are as follows: 2021 2020 (dollars in thousands) Deferred income tax benefits: Accrued deferred compensation $ 84 $ 78 Allowance for credit losses 376 143 Accumulated depreciation (22) (16) Other real estate owned — 36 Reserve for unfunded commitments 102 9 Accounting standard 310-20 (144) (117) Right of use asset (132) (171) Lease liability 132 171 Accumulated securities premium accretion 228 214 Net unrealized depreciation on investment securities available for sale 211 (466) Net unrealized loss on Swaps 121 261 Net deferred income tax benefits $ 956 $ 142 Management has determined that no valuation allowance is required as it believes it is more likely than not that all of the deferred tax assets will be fully realizable in the future. At December 31, 2021 and 2020, management believes there are no uncertain tax positions under ASC Topic 740 Income Taxes. Income tax expense was $0.58 million and $0.49 million at December 2021 and 2020, respectively. |
Pension and Profit Sharing Plan
Pension and Profit Sharing Plans | 12 Months Ended |
Dec. 31, 2021 | |
Pension and Profit Sharing Plans | |
Pension and Profit Sharing Plans | Note 9. Pension and Profit Sharing Plans The Bank has a defined contribution retirement plan qualifying under Section 401(k) of the Internal Revenue Code that is funded through a profit sharing agreement and voluntary employee contributions. Annual contributions, included in employee benefit expense, totaled $493,000 and $451,000 for the years ended December 31, 2021 and 2020, respectively. |
Other Benefit Plans
Other Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Other Benefit Plans | |
Other Benefit Plans | Note 10. Other Benefit Plans The Company is the owner and beneficiary of BOLI policies on certain current and former employees. Cash value totaled $8.3 million and $8.2 million at December 31, 2021 and 2020, respectively. Income on insurance investment totaled $0.2 for years ended 2021 and 2020. The Bank has an unfunded grantor trust, as part of a change in control severance plan, covering substantially all employees. Participants in the plan are entitled to cash severance benefits upon termination of employment, for any reason other than just cause, should a “change in control” of the Company occur. |
Other Noninterest Expenses
Other Noninterest Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Other Noninterest Expenses. | |
Other Noninterest Expenses | Note 11. Other Noninterest Expenses Other noninterest expenses include the following: Year Ended December 31, 2021 2020 (dollars in thousands) Loan related expenses $ 195 $ 115 Other ATM expenses 36 77 Director, executive and audit committee fees and expenses 167 168 Postage, delivery and courier expenses 70 39 Office supplies expenses 35 54 Credit report fees 38 32 Dues and subscription fees 93 95 Examination and assessment fees 48 58 Federal Reserve and correspondent bank services 30 36 Foreclosed property expenses 23 147 Liability insurance 85 64 Release for unfunded commitments (119) (5) Card services 114 54 NASDAQ registration 56 43 Investor services 43 42 Other 195 203 Total Other Noninterest Expense $ 1,109 $ 1,222 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Financial instruments: The Bank is a party to financial instruments in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated financial statements. Outstanding loan commitments, unused lines of credit and letters of credit are as follows: December 31, 2021 2020 (dollars in thousands) Loan commitments: Other mortgage loans $ 2,863 $ 2,229 Unused lines of credit: Home-equity lines $ 9,224 $ 8,672 Commercial lines 15,432 19,982 Unsecured consumer lines 648 678 $ 25,304 $ 29,332 Letters of credit: $ 55 $ 1,044 Loan commitments and lines of credit are agreements to lend to customers as long as there is no violation of any conditions of the contracts. Loan commitments generally have interest rates fixed at current market amounts, fixed expiration dates, and may require payment of a fee. Lines of credit generally have variable interest rates. Many of the loan commitments and lines of credit are expected to expire without being drawn upon; accordingly, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral or other security obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include deposits held in financial institutions, U.S. Treasury securities, other marketable securities, accounts receivable, inventory, property and equipment, personal residences, income-producing commercial properties, and land under development. Personal guarantees are also obtained to provide added security for certain commitments. Letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to guarantee the installation of real property improvements and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral and obtains personal guarantees supporting those commitments for which collateral or other securities is deemed necessary. The Bank’s exposure to credit loss in the event of nonperformance by the customer is the contractual amount of the commitment. Loan commitments, lines of credit, and letters of credit are made on the same terms, including collateral, as outstanding loans. As of December 31, 2021, the Bank has accrued $370,680 as a reserve for losses on unfunded commitments related to these financial instruments with off balance sheet risk, which is included in other liabilities. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity | |
Stockholders' Equity | Note 13. Stockholders’ Equity Restrictions on Dividends The Company’s ability to pay dividends to its stockholders may be affected by both general corporate law considerations and policies of the Federal Reserve applicable to bank holding companies. Banking regulations limit the amount of dividends that may be paid without prior approval of the Bank’s regulatory agencies. Regulatory approval is required to pay dividends that exceed the Bank’s net profits for the current year plus its retained net profits for the preceding two years. Retained earnings from which dividends may not be paid without prior approval totaled approximately $20.2 million at December 31, 2021 and $21.2 million at December 31, 2020 based on the earnings restrictions and minimum capital ratio requirements noted below. The payment of dividends by any financial institution or its holding company is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. Notwithstanding the availability of funds for dividends, however, the Federal Reserve may prohibit the payment of any dividends by the subsidiary banks if the Federal Reserve determines such payment would constitute an unsafe or unsound practice. Employee Stock Purchase Benefit Plans The Company has a stock-based compensation plan, which is described below. There were no options issued or activity under this plan since August 2007. Employees who have completed one year of service are eligible to participate in the employee stock purchase plan. The number of shares of common stock granted under options will bear a uniform relationship to compensation. The plan allows employees to buy stock under options granted at 85 % of the fair market value of the stock on the date of grant. Options are vested when granted and will expire no later than 27 months from the grant date or upon termination of employment. At December 31, 2021, shares of common stock reserved for issuance under the plan totaled 25,739. The Board of Directors may suspend or discontinue the plan at its discretion. Dividend Reinvestment and Stock Purchase Plan The Company’s dividend reinvestment and stock purchase plan allows all participating stockholders the opportunity to receive additional shares of common stock in lieu of cash dividends at 95% of the fair market value on the dividend payment date. During 2021 and 2020, shares of common stock purchased under the plan , respectively. At December 31, 2021, shares of common stock reserved for issuance under the plan totaled 64,697. The Board of Directors may suspend or discontinue the plan at its discretion. Stockholder Purchase Plan The Company’s stockholder purchase plan allows participating stockholders the option to purchase newly issued shares of common stock. The Board of Directors shall determine the number of shares that may be purchased pursuant to options. Options granted will expire no later than three months from the grant date. Each option will entitle the stockholder to purchase one share of common stock, and will be granted in proportion to stockholder share holdings. At the discretion of the Board of Directors, stockholders may be given the opportunity to purchase unsubscribed shares. There was no activity under this plan since June 23, 2000. At December 31, 2021, shares of common stock reserved for issuance under the plan totaled 183,348. The Board of Directors may suspend or discontinue the plan at its discretion. Under all three plans, options granted, exercised, and expired, shares issued and reserved, and grant prices have been restated for the effects of any stock dividends or stock splits. Regulatory Capital Requirements The Bank’s primary regulator is the Federal Deposit Insurance Corporation (“FDIC”) and is subject to regulation, supervision and regular examination by the Maryland Commissioner of Financial Regulation (the “Commissioner”) and the FDIC. The Company is subject to regulation, examination and supervision by the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended (the “BHCA”), and the regulations of the Federal Reserve Board. On January 1, 2015, the Bank became subject to the new Basel III Capital Rules with full compliance with all of the final rule's requirements phased in over a multi-year schedule, to be fully phased-in by January 1, 2019. However, the new Basel III Capital Rules do not apply to the Company since it is a small bank holding company with less than $1.0 billion in total consolidated assets. In July 2013, the final rules were published establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee’s December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and depository institutions compared to the previous U.S. risk-based capital rules. The Basel III Capital Rules define the components of capital and address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Basel III Capital Rules also address risk weights and other issues affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing risk-weighting approach with a more risk-sensitive approach. The Basel III Capital Rules also implement the requirements of Section 939A of the Dodd-Frank Act to remove references to credit ratings from the federal banking agencies’ rules. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. The Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting principles. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0 %. A new capital conservation buffer is also established above the regulatory minimum capital requirements. This capital conservation buffer began its phase-in period beginning January 1, 2016 at 0.625% of risk-weighted assets and will increase each subsequent year by an additional 0.625% until reaching its final level of 2.5 % on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk-weighted capital ratios. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. The final rules also revise the definition and calculation of Tier 1 capital, Total Capital, and risk-weighted assets. The Common Equity Tier 1, Tier 1 and Total Capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, with certain exclusions, allocated by risk weight category, and certain off-balance-sheet items, among other things. The leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. As of December 31, 2021 and 2020, the Bank was well-capitalized under the regulatory framework for prompt corrective action under the new Basel III Capital Rules. Management believes, as of December 31, 2021 and 2020, that the Bank met all capital adequacy requirements to which they were subject. The following table presents actual and required capital ratios as of December 31, 2021 and 2020 for the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2021 and December 31, 2020 based on the phase-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. The Company and Bank are subject to regulatory capital requirements administered by federal banking agencies. Management has determined that the Company’s risk-based capital ratios are not materiality different than the Bank’s and are not reflected in the table below. To Be Well Capitalized To Be Considered Under Prompt Corrective Actual Adequately Capitalized Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Common Equity Tier 1 Capital $ 37,592 15.32 % $ 11,044 4.50 % $ 15,952 6.50 % Total Risk-Based Capital $ 39,329 16.03 % $ 19,634 8.00 % $ 24,542 10.00 % Tier 1 Risk-Based Capital $ 37,592 15.32 % $ 14,725 6.00 % $ 19,634 8.00 % Tier 1 Leverage $ 37,592 8.40 % $ 17,910 4.00 % $ 22,388 5.00 % To Be Well Capitalized To Be Considered Under Prompt Corrective Actual Adequately Capitalized Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020 Common Equity Tier 1 Capital $ 36,442 13.09 % $ 12,532 4.50 % $ 18,101 6.50 % Total Risk-Based Capital $ 37,951 13.63 % $ 22,278 8.00 % $ 27,848 10.00 % Tier 1 Risk-Based Capital $ 36,442 13.09 % $ 16,709 6.00 % $ 22,278 8.00 % Tier 1 Leverage $ 36,442 9.12 % $ 15,980 4.00 % $ 19,975 5.00 % |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE | |
Earnings Per Common Share | Note 14. Earnings Per Common Share The calculation of net income per common share for the years ended December 31, 2021 and 2020 are as follows: Year Ended December 31, 2021 2020 Basic earnings per share: Net income $ 2,516,387 $ 1,667,741 Weighted average common shares outstanding 2,848,465 2,835,037 Basic net income per share $ 0.88 $ 0.59 Diluted earnings per share calculations were not required for 2021 and 2020 as there were no options outstanding at December 31, 2021 and 2020. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Other Benefit Plans | |
Fair Values of Financial Instruments | Note 15. Fair Values of Financial Instruments ASC Topic 825, Disclosure about Fair Value of Financial Instruments , requires the disclosure of the estimated fair values of financial instruments. Quoted market prices, where available, are shown as estimates of fair values. Because no quoted market prices are available for a significant part of the Company’s financial instruments, the fair values of such instruments have been derived based on the amount and timing of future cash flows and estimated discount rates. Present value techniques used in estimating the fair value of the Company’s financial instruments are significantly affected by the assumptions used. Fair values derived from using present value techniques are not substantiated by comparisons to independent markets, and in many cases, could not be realized in immediate settlement of the instruments. ASC Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The following table presents the estimated fair value and the related carrying values of the Company’s financial instruments as December 31, 2021 and 2020. Items that are not financial instruments are not included. December 31, 2021 December 31, 2020 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,111 $ 2,111 $ 2,117 $ 2,117 Interest-bearing deposits in other financial institutions 56,434 56,434 29,730 29,730 Federal funds sold 3,636 3,636 5,246 5,246 Investment securities available for sale 155,927 155,927 114,049 114,049 Investments in restricted stock 1,062 1,062 1,199 1,199 Ground rents 131 131 140 140 Loans, less allowance for credit losses 207,922 211,541 252,296 253,946 Accrued interest receivable 1,085 1,085 1,302 1,302 Cash value of life insurance 8,338 8,338 8,181 8,181 Financial liabilities: Deposits 383,247 383,910 349,620 350,666 Long-term borrowings 10,000 9,888 — — Short-term borrowings 10,000 10,000 29,912 29,935 Accrued interest payable 11 11 16 16 Unrecognized financial instruments: Commitments to extend credit 28,167 28,167 31,561 31,561 Standby letters of credit 55 55 1,044 1,044 The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. (dollars in thousands) Carrying Fair December 31, 2021 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 62,181 $ 62,181 $ 62,181 — $ — Loans receivable, net 207,922 211,541 — — 211,541 Cash value of life insurance 8,338 8,338 — 8,338 — Financial instruments - Liabilities Deposits 383,247 383,910 227,580 156,330 — Long-term debt 10,000 — — — — Short-term debt 10,000 10,000 — 10,000 — For purposes of the disclosures of estimated fair value, the following assumptions were used. Loans. The estimated fair value for loans is determined by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Investment securities . Fair values for investment securities are based on quoted market prices, where applicable. When quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Deposits . The estimated fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings, NOW accounts and money market accounts, is equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The fair value of certificates of deposit is based on the rates currently offered for deposits of similar maturities. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. Borrowings . The estimated fair value approximates carrying value for short-term borrowings. The fair value of long-term fixed rate borrowings is estimated by discounting future cash flows using current interest rates currently offered for similar financial instruments over the same maturities. Other assets and liabilities. The estimated fair values for cash and due from banks, interest-bearing deposits in other financial institutions, Federal funds sold, accrued interest receivable and payable, and short-term borrowings are considered to approximate cost because of their short-term nature. Other assets and liabilities of the Bank that are not defined as financial instruments are not included in the above disclosures, such as property and equipment. In addition, non-financial instruments typically not recognized in the financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earnings power of core deposit accounts, the trained work force, customer goodwill, and similar items. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 16. Fair Value Measurements The Company follows ASC Topic 820, Fair Value Measurements which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis or on a nonrecurring basis. ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. The Fair Value Hierarchy Level 1 – Valuation is based on 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 and liabilities. Level 2 – Valuation is based on inputs other than quoted prices included in 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 and 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. In determining the appropriate levels, the Company performs a detailed analysis of assets and liabilities that are subject to ASC Topic 820. The Bank’s securities available for sale and interest rate swaps are the only assets or liabilities subject to fair value measurements on a recurring basis. The Bank may also be required, from time to time, to measure certain other financial and non-financial assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. Fair value measurements on a recurring and non-recurring basis at December 31, 2021 and 2020 are as follows: Fair (dollars in thousands) Level 1 Level 2 Level 3 Value December 31, 2021 Recurring: Securities available for sale State and Municipal — 45,225 — 45,225 Mortgaged-backed — 109,228 — 109,228 Corporate securities — 1,474 — 1,474 Interest rate swap — (442) — (442) Non-recurring: Maryland Financial Bank stock — — 3 3 Impaired loans — — 317 317 OREO — — — — $ — $ 155,485 $ 320 $ 155,805 December 31, 2020 Recurring: Securities available for sale State and Municipal — 29,413 — 29,413 Mortgaged-backed — 84,636 — 84,636 Interest rate swap — (949) — (949) Non-recurring: Maryland Financial Bank stock — — 3 3 Impaired loans — — 4,893 4,893 OREO — 575 — 575 $ — $ 113,675 $ 4,896 $ 118,571 Securities available for sale and interest rate swaps are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Measured on a Non-Recurring Basis: Financial Assets and Liabilities The Bank is predominantly a cash flow lender with real estate serving as collateral on a majority of loans. Loans which are deemed to be impaired and foreclosed real estate assets are primarily valued on a nonrecurring basis at the fair values of the underlying real estate collateral. The Bank determines such fair values from independent appraisals. Based on these appraisals, management has applied a specific valuation allowance allocation of $10,000 and $11,000 in 2021 and 2020, respectively, to the impaired loans, which management considers to be level 3 inputs. Fair Value Measurements We obtain fair values for our impaired loans through a variety of data points and mostly rely on appraisals from independent appraisers. These appraisals do not include an inside inspection of the property as our loan documents do not require the borrower to allow access to the property. Therefore the most significant unobservable inputs is the details of the amenities included within the property and the condition of the property. Further, we cannot always accurately assess the amount of time it takes to gain ownership of our collateral through the foreclosure process and the damage, as well as potential looting, of the property further decreasing our value. We typically get independent appraisals of properties within three months from the time we determine there may be a collateral shortfall from an impaired loan. The appraisals are typically updated every 12 months from the independent appraiser and more frequently if we feel material changes in value may have occurred for this specific property. During interim periods, typically at the end of each calendar quarter, we review other data points such as a comparable from other like properties or changes in tax assessment values. Non-Financial Assets and Non-Financial Liabilities Application of ASC Topic 820 to non-financial assets and non-financial liabilities became effective January 1, 2009. The Corporation has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets and non-financial liabilities typically measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Foreclosed real estate, which are considered to be non-financial assets, have been valued using a market approach. The values were determined using market prices of similar current real estate assets in the same geographical area, which the Bank considers to be level 2 inputs. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition | |
Revenue Recognition | Note 17. Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. Topic 606 is applicable to noninterest revenue streams such as deposit related fees, interchange fees and merchant income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts. Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or at the end of the month through a direct charge to customers’ accounts. Other Noninterest Income. Other noninterest income consists of: fees, exchange, other service charges, safety deposit box rental fees, and other miscellaneous revenue streams. Fees and other service charges are primarily comprised of debit income, ATM fees, merchant services income, and other service charges. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit cards are processed through card payment networks. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Parent Company Financial Information | |
Parent Company Financial Information | Note 18. Parent Company Financial Information The Balance Sheets, Statements of Income, and Statements of Cash Flows for Glen Burnie Bancorp (Parent Only) are presented below: ___________________________________________Balance Sheets________________________________________ December 31, 2021 2020 (dollars in thousands) Assets Cash $ 99 $ 111 Investment in The Bank of Glen Burnie 35,614 36,982 Other assets 3 — Total assets $ 35,716 $ 37,093 Liabilities and Stockholders’ Equity Stockholders’ equity: Common stock 2,854 2,842 Surplus 10,759 10,640 Retained earnings 22,977 23,071 Accumulated other comprehensive income (loss), net of benefits (874) 540 Total stockholders’ equity 35,716 37,093 Total liabilities and stockholders’ equity $ 35,716 $ 37,093 __________________________________________Statements of Income___________________________________ Year Ended December 31, 2021 2020 (dollars in thousands) Dividends and distributions from subsidiary $ 1,200 $ 1,265 Other expenses (245) (236) Income before income tax benefit and equity in undistributed net income of subsidiary 955 1,029 Income tax benefit 44 43 Change in undistributed equity of subsidiary 1,517 596 Net income $ 2,516 $ 1,668 ___________________________________Statements of Cash Flows_______________________________________ Year Ended December 31, 2021 2020 (dollars in thousands) Cash flows from operating activities: Net income $ 2,516 $ 1,668 Adjustments to reconcile net income to net cash provided by operating activities: (Increase) decrease in other assets (3) — Change in undistributed equity of subsidiary (1,517) (596) Net cash provided by operating activities 996 1,072 Cash flows from financing activities: Proceeds from dividend reinvestment plan 130 130 Dividends paid (1,138) (1,134) Net cash used in financing activities (1,008) (1,004) (Decrease) increase in cash (12) 68 Cash, beginning of year 111 43 Cash, end of year $ 99 $ 111 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Results of Operations (Unaudited) | |
Quarterly Results of Operations (Unaudited) | Note 19. Quarterly Results of Operations (Unaudited) The following is a summary of consolidated unaudited quarterly results of operations: __________________________________________2021__________________________________ (dollars in thousands, Three months ended except per share amounts) December 31, September 30, June 30, March 31, Interest income $ 3,461 $ 3,605 $ 3,290 $ 3,161 Interest expense 251 265 274 284 Net interest income 3,210 3,340 3,016 2,877 Provision for credit losses (382) (122) (67) (404) Net securities gains (589) 1 — — Income before income taxes 693 1,131 570 699 Net income 555 888 479 594 Net income per share (basic and diluted) $ 0.19 $ 0.31 $ 0.17 $ 0.21 ___________________________________________2020______________________________ (dollars in thousands, Three months ended except per share amounts) December 31, September 30, June 30, March 31, Interest income $ 3,485 $ 3,349 $ 3,336 $ 3,499 Interest expense 313 353 398 451 Net interest income 3,172 2,996 2,938 3,048 Provision for credit losses (427) (669) 487 (80) Net securities gains 6 — — — Income before income taxes 712 1,232 (128) 343 Net income 547 949 (96) 268 Net income per share (basic and diluted) $ 0.20 $ 0.33 $ (0.03) $ 0.09 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
Subsequent Events | Note 20. Subsequent Events As the result of the sale by TGM Group LLC (“TGM”) of its accounting and auditing business to UHY LLP (“UHY”), TGM resigned its engagement as the independent registered public accounting firm of Glen Burnie Bancorp (the “Company”) effective January 3, 2022, the date of the sale. The audit reports of TGM on the financial statements for the past two years did not contain any adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the fiscal years ended December 31, 2020 and December 31, 2021, and the subsequent period through January 3, 2022, there were no disagreements (as defined in Item 304(a)(1)(iv) of regulation S-K and the related instructions to Item 304 of Regulation S-K) with TGM, on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to TGM’s satisfaction, would have caused TGM to make reference to the subject matter of the disagreement in its reports on the consolidated financial statements for such years. During the fiscal years ended December 31, 2020 and December 31, 2021, and the subsequent period through January 3, 2022, there were no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K). On February 10, 2022, the Audit Committee of the Company’s Board of Directors engaged UHY as its independent registered public accounting firm for the year ending December 31, 2022, effective immediately. During the Company’s fiscal years ended December 31, 2020 and December 31, 2021, and the subsequent interim period through February 10, 2022, neither the Company nor anyone acting on its behalf has consulted with UHY regarding any of the matters or events set forth in Item 304(a)(2)(i) and (ii) of Regulation S-K. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Basis of presentation | Basis of Presentation The consolidated financial statements include the accounts of Glen Burnie Bancorp, The Bank of Glen Burnie and GBB Properties, Inc., a company engaged in the acquisition and disposition of other real estate. All significant intercompany transactions are eliminated in consolidation and certain reclassifications are made when necessary in order to conform the previous year’s financial statements to the current year’s presentation. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and revenues and expenses during the reporting periods and related disclosures. These estimates that require application of management's subjective or complex judgments often result in the need to make estimates about the effect of matters that are inherently uncertain and may change in future periods. Management has made significant estimates in several areas, including the Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses Investment Securities Fair Value of Financial Instruments Pension and Profit Sharing Plans Income Taxes ). Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation. The Parent Only financial statements (see Note 18, Parent Company Financial Information |
Investment Securities | Investment Securities We classify investment securities as trading, held to maturity ("HTM"), or available for sale ("AFS") at the date of acquisition. Purchases and sales of securities are generally recorded on a trade-date basis. Investment securities that we might not hold until maturity are classified as AFS and are reported at fair value in the statement of financial condition. Fair value measurement is based upon quoted market prices in active markets, if available. If quoted prices in active markets are not available, fair value is measured using pricing models or other model-based valuation techniques such as the present value of future cash flows, which consider prepayment assumptions and other factors such as credit losses and market liquidity. Unrealized gains and losses are excluded from earnings and reported, net of tax, in other comprehensive income (“OCI”). Purchase premiums and discounts are recognized in interest income using the effective interest method over the life of the securities. Purchase premiums or discounts related to mortgage-backed securities are amortized or accreted using projected prepayment speeds. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Debt securities are classified as HTM if the Company has both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for amortization of purchase premiums and accretion of purchase discounts. Transfers of securities from available for sale to held to maturity are accounted for at fair value as of the date of the transfer. The difference between the fair value and the par value at the date of transfer is considered a premium or discount and is accounted for accordingly. Any unrealized gain or loss at the date of the transfer is reported in OCI, and is amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount, and will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held to maturity security. Impairment may result from credit deterioration of the issuer or collateral underlying the security. In performing an assessment of recoverability, all relevant information is considered, including the length of time and extent to which fair value has been less than the amortized cost basis, the cause of the price decline, credit performance of the issuer and underlying collateral, and recoveries or further declines in fair value subsequent to the balance sheet date. AFS debt securities are measured at fair value rather than amortized cost. Although ASC 326 replaced the legacy other-than-temporary impairment (“OTTI”) model with a credit loss model, it retained the fundamental nature of the legacy OTTI model. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities where neither of the criteria are met, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the credit rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited to the amount that the fair value is less than the amortized cost basis. Any remaining discount that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Under the new guidance, an entity may no longer consider the length of time fair value has been less than amortized cost. Changes in the allowance for credit losses are recorded as a provision for (or release of) credit losses. Losses are charged against the allowance when management believes the collectability of an AFS security is considered below the amortized cost basis of the security. As of December 31, 2021 and 2020, the Company determined that the unrealized loss positions in AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock As a borrower from the Federal Home Loan Bank of Atlanta ("FHLB"), the Bank is required to purchase an amount of FHLB stock based on our outstanding borrowings with the FHLB. This stock is used as collateral to secure the borrowings from the FHLB and is accounted for as a cost-method investment. FHLB stock is an equity interest that does not necessarily have a readily determinable fair value for purposes of the ASC Topic 320, Accounting for Certain Investments in Debt and Equity Securities , because its ownership is restricted and lacks a market. FHLB stock can be sold back only at its par value of $100 per share and only to the FHLB or another member institution. |
Other Securities | Other Securities Maryland Financial Bank Dissolution Trust ("the Trust"), is a "liquidating trust" for U.S. federal income tax purposes. The sole purpose of the Trust is to liquidate the remaining assets, resolve the remaining liabilities, and to distribute the net proceeds to the Trust's beneficiaries. This is an equity interest that does not necessarily have a readily determinable fair value for purposes of the ASC Topic 320, Accounting for Certain Investments in Debt and Equity Securities , because its ownership is restricted and lacks a market. This stock is accounted for as a cost-method investment. |
Loans Held for Investment | Loans Held for Investment Loans held for investment are reported at the principal amount outstanding, net of cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. Interest on loans is accrued and recognized as interest income at the contractual rate of interest. When a loan is designated as held for investment, the intent is to hold these loans for the foreseeable future or until maturity or pay off. From time to time, the Company will originate loans to facilitate the sale of other real estate owned (OREO). Such loans are accounted for using the installment method and any gain on sale is deferred. The Bank financed no sales of OREO for 2021 or 2020. Loan Fees and Costs Loan origination fees, commitment fees, direct loan origination costs and purchase premiums and discounts on loans are deferred and recognized as an adjustment of yield, to be amortized to interest income over the contractual term of the loan. Nonaccrual Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment or if part of the principal balance has been charged off. When a loan is placed on nonaccrual status all interest previously accrued but not collected is reversed against current period interest income. All payments received on nonaccrual loans are accounted for using the cost recovery method. Under the cost recovery method, all cash collected is applied to first reduce the principal balance. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current and the collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that are well-secured and in the process of collection are maintained on accrual status, even if they are 90 days or more past due. Impaired Loans A loan is considered impaired when it is probable that all contractual principal and interest payments due will not be collected in accordance with the terms of the loan agreement. Factors considered by management in determining whether a loan is impaired include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. The carrying value of impaired loans is based on the present value of the loan’s expected future cash flows or, alternatively, the observable market price of the loan or the fair value of the collateral. Troubled Debt Restructurings A loan is accounted for and reported as a troubled debt restructuring (“TDR”) when, for economic or legal reasons, we grant a concession to a borrower experiencing financial difficulty that we would not otherwise consider. Management strives to identify borrowers in financial difficulty early and works with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt's original contractual maturity or original expected duration. TDRs are designated as impaired because interest and principal payments will not be received in accordance with the original contract terms. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR and impaired regardless of the accrual or performance status until the loan is paid off. However, if the TDR loan has been modified in a subsequent restructure with market terms and the borrower is not currently experiencing financial difficulty, then the loan may be de-designated as a TDR. |
Allowance for Credit Losses | Allowance for Credit Losses – Loans Receivable Effective January 1, 2021, the Company applied ASU 2016-13, Financial Instruments - Credit Losses ("ASC 326"), such that the allowance calculation is based on the CECL methodology. Prior to January 1, 2021, the calculation was based on incurred loss methodology. See Note 4, Loans and Allowance for Credit Losses for details. The Company maintains an allowance for credit losses (“ACL”) for the expected credit losses of the loan portfolio as well as unfunded loan commitments. The amount of ACL is based on ongoing, quarterly assessments by management. The CECL methodology requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures) and replaces the incurred loss methodology’s threshold that delayed the recognition of a credit loss until it was probable a loss event was incurred. The ACL consists of the allowance for credit losses - loans and the reserve for unfunded commitments. The estimate of expected credit losses under the CECL methodology is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period that historical experience was based for each loan type. Finally, we consider forecasts about future economic conditions or changes in collateral values that are reasonable and supportable. Portfolio segment is defined as the level at which the Company develops and documents a systematic methodology to determine its ACL. The Company has designated three loan portfolio segments: loans secured by real estate, commercial and industrial loans, and consumer loans. These loan portfolio segments are further disaggregated into classes, which represent loans of similar type, risk characteristics, and methods for monitoring and assessing credit risk. The loans secured by real estate portfolio segment is disaggregated into five classes: construction and land, farmland, family residential, multi-family, and commercial. The commercial and industrial loan portfolio segment is disaggregated into two classes: commercial and industrial, and SBA guaranty. The risk of loss for the commercial and industrial loan portfolio segment is generally most indicated by the credit risk rating assigned to each borrower. Commercial and industrial loan risk ratings are determined by experienced senior credit officers based on specific facts and circumstances and are subject to periodic review by an independent internal team of credit specialists. The consumer loan portfolio segment is disaggregated into two classes: consumer and automobile. The risk of loss for the consumer loan portfolio segment is generally most indicated by delinquency status and general economic factors. Each of the three loan portfolio segments may also be further segmented based on risk characteristics. For most of our loan portfolio classes, the historical loss experience is determined using the Average Charge-Off Method. This method pools loans into groups (“cohorts”) sharing similar risk characteristics and tracks each cohort’s net charge-offs over the lives of the loans. The Average Charge-Off Method uses historical values by period (20-year look-back) to calculate losses and then applies the historical average to future balances over the life of the account. The historical loss rates for each cohort are then averaged to calculate an overall historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the allowance for credit losses for the respective loan portfolio class. For certain loan portfolio classes, the Company determined there was not sufficient historical loss information to calculate a meaningful historical loss rate using the average charge-off methodology. For any such loan portfolio class, peer group history contributes to the Company’s weighted average loss history. The peer group data is included in the weighted average loss history that is developed for each loan pool. The Company also considers qualitative adjustments to the historical loss rate for each loan portfolio class. The qualitative adjustments for each loan class consider the conditions over the 20-year look-back period from which historical loss experience was based and are split into two components: 1) asset or class specific risk characteristics or current conditions at the reporting date related to portfolio credit quality, remaining payments, volume and nature, credit culture and management, business environment or other management factors; and 2) reasonable and supportable forecast of future economic conditions and collateral values. The Company performs a quarterly asset quality review which includes a review of forecasted gross charge-offs and recoveries, nonperforming assets, criticized loans, risk rating migration, delinquencies, etc. The asset quality review is performed by management and the results are used to consider a qualitative overlay to the quantitative baseline. When management deems it to be appropriate, the Company establishes a specific reserve for individually evaluated loans that do not share similar risk characteristics with the loans included in each respective loan pool. These individually evaluated loans are removed from their respective pools and typically represent collateral dependent loans but may also include other non-performing loans or troubled debt restructurings (“TDRs”). Impaired Loans The specific credit allocations are based on regular analysis of all loans over a fixed-dollar amount where the internal credit rating is at or below a predetermined classification. When a loan is identified as impaired, impairment is measured based on net realizable value, and the recorded investment balance of the loan. For impaired loans, we recognize impairment if we determine that the net realizable value of the impaired loan is less than the recorded investment of the loan (net of previous charge-offs and deferred loan fees and costs), except when the sole remaining source of collection is the underlying collateral. In these cases, impairment is measured as the difference between the recorded investment balance of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. Once the impairment amount is determined, an asset-specific allowance is provided that is equal to the calculated impairment and included in the allowance for credit losses - loans. If the calculated impairment is determined to be permanent or not recoverable, the impairment will be charged off. Factors considered by management in determining if impairment is permanent or not recoverable include whether management judges the loan to be uncollectible, repayment is deemed to be protracted beyond reasonable time frames or the loss becomes evident owing to the borrower’s lack of assets. Estimate of Probable Credit Losses - Loans On January 1, 2021, the Company early adopted ASU 2016-13, Financial Instruments - Credit Losses (“ASC 326”) which replaces the “incurred loss approach” for estimating credit losses with an expected loss methodology. The incurred loss model delayed the recognition of credit losses until it was probable that a loss had occurred, while the CECL model requires the immediate recognition of expected credit losses over the contractual term for financial instruments that fall within the scope of CECL at the date of origination or purchase of the financial instrument. The CECL model, which is applicable to the measurement of credit losses on financial assets measured at amortized cost and certain off-balance sheet credit exposures, affects the Company’s estimates of the allowance for credit losses for our loan portfolio and the reserve for our off-balance sheet credit exposures related to loan commitments. The allowance for credit losses is established through a provision for credit losses charged to expense. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. The allowance, based on all available information from internal and external sources, relevant to assessing the collectability of loans over their contractual terms, adjusted for expected prepayments when appropriate, is an amount that management believes will be adequate to absorb possible losses on existing loans that may become uncollectible. The evaluations are performed for each class of loans and take into consideration factors such as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, value of collateral securing the loans and current economic conditions and trends that may affect the borrowers’ ability to pay. For example, delinquencies in unsecured loans and indirect automobile installment loans will be reserved for at significantly higher ratios than loans secured by real estate. Finally, the Company considers forecasts about future economic conditions or changes in collateral values that are reasonable and supportable. Based on that analysis, the Bank deems its allowance for credit losses in proportion to the total nonaccrual loans and past due loans to be sufficient. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments The Company maintains a separate allowance for losses on unfunded loan commitments, which is included in accrued expenses and other liabilities on the consolidated statements of financial condition. The reserve for unfunded commitments (off-balance sheet financial instruments) is established through a provision for credit losses - unfunded commitments, the changes of which are recorded in noninterest expense. The reserve for unfunded commitments is an amount that management believes will be adequate to absorb probable losses inherent in existing commitments, including unused portions of revolving lines of credit and other loans, standby letters of credit, and unused deposit account overdraft privileges. The reserve for unfunded commitments is based on evaluations of the collectability, and prior loss experience of unfunded commitments. The evaluations take into consideration such factors as changes in the nature and size of the loan portfolio, overall loan portfolio quality, loan concentrations, specific problem loans and related unfunded commitments, and current economic conditions that may affect the borrower’s or depositor’s ability to pay. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned ("OREO") represents real estate acquired in partial or total satisfaction of debts previously contracted with the Company, generally through the foreclosure of loans. These properties are initially recorded at the net realizable value (fair value of collateral less estimated costs to sell). Upon transfer of a loan to OREO, an appraisal is obtained and any excess of the loan balance over the net realizable value is charged against the allowance for credit losses - loans. Subsequent declines in net realizable value identified from the ongoing analysis of such properties as well as gains and losses realized from the sale of OREO are recognized in current period earnings within noninterest expense as foreclosed property expense. The net realizable value of these assets is reviewed and updated as circumstances warrant. Loans transferred to OREO through foreclosure proceedings totaled $575,000 for the year ended December 31, 2020. There were no loans transferred to OREO for the year ended December 31, 2021. |
Premises and Equipment | Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation and depreciated over the estimated useful life of the related asset or the term of the lease using the straight-line method. Expenditures for improvements that extend the life of an asset are capitalized and depreciated over the asset’s remaining useful life. Gains or losses realized on the disposition of premises and equipment are reflected in the consolidated statements of income. Expenditures for repairs and maintenance are charged to occupancy and equipment expense as incurred. Computer software is recorded at cost and amortized over three to five years . Management periodically evaluates the carrying value of long-lived assets and certain identifiable intangibles, including goodwill, furniture and equipment and leasehold improvements for impairment. |
Income Taxes | Income Taxes Our income tax expense, and deferred tax assets and liabilities reflect management’s best assessment of estimated current and future taxes to be paid. Significant judgments and estimates are required in determining the consolidated income tax expense. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes and are reflected as discrete tax items in the Company’s tax provision. The Company records net deferred tax assets to the extent it is believed that these assets will more likely than not be realized. In making this determination, the Company considers all available evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent financial operations. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority. The Company files a consolidated federal income tax return and separate company state tax returns. For a more detailed description of income taxes see Note 8, Income Taxes |
Interest Rate Swap Agreements | Interest Rate Swap Agreements For asset/liability management purposes, the Company periodically uses interest rate swap agreements to hedge various exposures or to modify interest rate characteristics of various balance sheet accounts. All interest rate swap agreements are recorded at fair value. The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to its likelihood of effectiveness as a hedge. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
Fair Value Measurement | Fair Value Measurement The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. The degree of management judgment involved in estimating the fair value of a financial instrument or other asset is dependent upon the availability of quoted market prices or observable market value inputs for internal valuation models used for estimating fair value. For financial instruments that are actively traded in the marketplace or whose values are based on readily available market data, little judgment is necessary when estimating the instrument’s fair value. When observable market prices and data are not readily available, significant management judgment often is necessary to estimate fair value. In those cases, different assumptions could result in significant changes in valuation. See Note 16, Fair Value Measurement. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Bank has included cash and due from banks, interest-bearing deposits in other financial institutions, and federal funds sold as cash and cash equivalents for the purpose of reporting cash flows. The carrying value of cash and cash equivalents approximates its fair value due to its short-term nature. |
Earnings per share | Earnings Per Share Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average common shares outstanding, plus the effect of common stock equivalents (for example, stock options computed using the treasury stock method). |
Advertising Expense | Advertising Expense Advertising costs, which we consider to be media and marketing materials, are expensed as incurred. We incurred $0.1 million in advertising expense during the years ended December 31, 2021 and 2020. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company has purchased bank owned life insurance policies on certain current and former employees as a means to generate tax-exempt income which is used to offset a portion of current and future employee benefit costs. Bank owned life insurance is recorded at the cash surrender value of the policies. Changes in the cash surrender value are included in noninterest income. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income includes unrealized gains and losses, net of tax, on AFS securities and derivative instruments. Unrealized gains and losses, net of tax, are excluded from net income, and are reflected as a direct charge or credit to shareholders’ equity. Comprehensive income (loss) and the related components are disclosed in the consolidated statements of comprehensive income. |
Recent Accounting Pronouncements and Developments | Recent Accounting Pronouncements and Developments ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ("ASU 2016-13") requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans, and available-for-sale debt securities. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. ASU 2016-13, as updated, was adopted on January 1, 2021. Through the date of adoption, we held working group meetings that included individuals from various functional areas relevant to the implementation of CECL. Additionally, an assessment of our primary modeling tool was completed, which enabled us to complete parallel runs utilizing second and third quarter 2020 data, during which preliminary operational procedures and internal controls were designed. Management's working group also validated the appropriateness of, among other things, management’s decisions regarding portfolio segmentation, life of loan considerations, and reasonable and supportable forecasting methodology. The Company early adopted ASC 326 during the first quarter 2021 and based on the application of the modified retrospective method, it became effective on January 1, 2021 for all financial assets measured at amortized cost (primarily loans receivable) and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2021 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a decrease to retained earnings of CECL December 31, 2020 Adoption Impact January 1, 2021 (dollars in thousands) Allowance for credit losses: Loans Secured by Real Estate Construction and land $ 10 $ 16 $ 26 Farmland 2 9 11 Single-family residential 512 854 1,366 Multi-family 39 63 102 Commercial 218 199 417 Total loans secured by real estate 781 1,141 1,922 Commercial and Industrial Commercial and industrial 67 120 187 SBA guaranty 48 (6) 42 Total commercial and industrial loans 115 114 229 Consumer Loans Consumer 11 46 57 Automobile 569 273 842 Total consumer loans 580 319 899 Total allowance for loan losses 1,476 1,574 3,050 Reserve for unfunded commitments 33 457 490 Total allowance for credit losses $ 1,509 $ 2,031 $ 3,540 Retained earnings Total pre-tax impact $ 2,031 Tax effect (559) Decrease to retained earnings $ 1,472 ASU 2019-12, “Simplifying the Accounting for Income Taxes (Topic 740).” The ASU was issued in December 2019. The amendments in this update are meant to simplify the accounting for income taxes by removing certain exceptions to GAAP. The amendments also improve consistent application of and simplify GAAP by modifying and/or revising the accounting for certain income tax transactions and by clarifying certain existing codification. The amendments in the update are effective for public business entities for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. The adoption of this guidance did not have a material impact upon the Company’s financial position and results of operations. ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (a Consensus of the Emerging Issues Task Force).” The ASU clarifies the interaction between ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, the new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, and the amendments are to be applied prospectively. There was no material impact from adopting the new guidance on the Company’s consolidated financial statements. ASU No. 2020-04, “Reference Rate Reform (Topic 848).” The ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs.” The amendments in this update clarify that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. The amendments in this update are effective beginning after December 15, 2020. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. ASU No. 2020-10, “Codification Improvements.” The ASU improves reporting consistency by amending the Codification to include all disclosure guidance in the appropriate disclosure sections. It clarifies the application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. The amendments are effective for annual periods beginning after December 15, 2020, and early application is permitted. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope.” The ASU clarifies that all derivative instruments affected by changes to the interest rates used for discounting, margining, or contract price alignment due to reference rate reform are in the scope of ASC 848. Entities may apply certain optional expedients in ASC 848 to derivative instruments that do not reference LIBOR or another rate expected to be discontinued as a result of reference rate reform if there is a change to the interest rate used for discounting, margining or contract price alignment. The ASU also clarifies other aspects of ASC 848 and provides new guidance on how to address the effects of the cash compensation adjustment that is provided as part of the above change on certain aspects of hedge accounting. The ASU is intended to reduce diversity in practice related to accounting for (1) modifications to the terms of affected derivatives; and (2) existing hedging relationships in which the affected derivatives are designated as hedging instruments. ASU 2021-01 is effective upon issuance and generally can be applied through December 31, 2022. Entities may elect to apply the guidance on contract modifications either (1) retrospectively as of any date from the beginning of any interim period that includes March 12, 2020; or (2) prospectively to new modifications from any date in an interim period that includes or is after January 7, 2021, up to the date that financial statements are available to be issued. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Cumulative effect of of adopting ASC 326 to retained earnings | CECL December 31, 2020 Adoption Impact January 1, 2021 (dollars in thousands) Allowance for credit losses: Loans Secured by Real Estate Construction and land $ 10 $ 16 $ 26 Farmland 2 9 11 Single-family residential 512 854 1,366 Multi-family 39 63 102 Commercial 218 199 417 Total loans secured by real estate 781 1,141 1,922 Commercial and Industrial Commercial and industrial 67 120 187 SBA guaranty 48 (6) 42 Total commercial and industrial loans 115 114 229 Consumer Loans Consumer 11 46 57 Automobile 569 273 842 Total consumer loans 580 319 899 Total allowance for loan losses 1,476 1,574 3,050 Reserve for unfunded commitments 33 457 490 Total allowance for credit losses $ 1,509 $ 2,031 $ 3,540 Retained earnings Total pre-tax impact $ 2,031 Tax effect (559) Decrease to retained earnings $ 1,472 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investment Securities | |
Schedule of summary of investment securities | At December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collaterized mortgage obligations $ 21,730 $ 169 $ (211) $ 21,688 Agency mortgage-backed securities 56,252 356 (419) 56,189 Municipal securities 44,594 811 (180) 45,225 U.S. Government agency securities 32,616 4 (1,269) 31,351 Corporate securities 1,500 — (26) 1,474 Total securities available for sale $ 156,692 $ 1,340 $ (2,105) $ 155,927 At December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collaterized mortgage obligations $ 24,261 $ 396 $ (14) $ 24,643 Agency mortgage-backed securities 26,072 886 (10) 26,948 Municipal securities 28,675 740 (2) 29,413 U.S. Government agency securities 33,346 9 (310) 33,045 Total securities available for sale $ 112,354 $ 2,031 $ (336) $ 114,049 |
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time in continuous unrealized loss position | At December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Loss Value Loss Value Loss Collaterized mortgage obligations $ 7,917 $ (194) $ 876 $ (17) $ 8,793 $ (211) Agency mortgage-backed securities 42,109 (414) 197 (5) 42,306 (419) Municipal securities 18,603 (180) — — 18,603 (180) U.S. Government agency securities 13,976 (420) 15,942 (849) 29,918 (1,269) Corporate securities 1,474 (26) — — 1,474 (26) $ 84,079 $ (1,234) $ 17,015 $ (871) $ 101,094 $ (2,105) At December 31, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Loss Value Loss Value Loss Collaterized mortgage obligations $ 201 $ — $ 1,188 $ (14) $ 1,389 $ (14) Agency mortgage-backed securities — — 566 (10) 566 (10) Municipal securities 851 (2) — — 851 (2) U.S. Government agency securities 24,160 (308) 481 (2) 24,641 (310) $ 25,212 $ (310) $ 2,235 $ (26) $ 27,447 $ (336) |
Schedule of contractual maturities of investment securities | At December 31, 2021 Amortized Fair (dollars in thousands) Cost Value Due within one year $ — $ — Due over one to five years 3,448 3,507 Due over five to ten years 11,015 10,902 Due over ten years 62,747 62,167 Collaterized mortgage obligations 23,230 23,162 Agency mortgage-backed securities 56,252 56,189 Total securities available for sale $ 156,692 $ 155,927 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses - Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Credit Losses - Loans | |
Schedule of major categories of loans | December 31, (dollars in thousands) 2021 2020 Loans Secured by Real Estate Construction and land $ 4,087 $ 2,553 Farmland 342 350 Singlefamily residential 78,119 82,520 Multifamily 5,428 6,105 Commercial 48,729 57,027 Total loans secured by real estate 136,705 148,555 Commercial and Industrial Commercial and industrial 10,003 10,800 SBA guaranty 6,397 7,200 Comm SBA PPP 1,047 9,912 Total commercial and industrial loans 17,447 27,912 Consumer Loans Consumer 2,090 3,063 Automobile 54,150 74,242 Total consumer loans 56,240 77,305 Loans, net of deferred fees and costs 210,392 253,772 Less: Allowance for credit losses (2,470) (1,476) Loans, net $ 207,922 $ 252,296 |
Schedule of amount due from directors and other related parties | December 31, (dollars in thousands) 2021 2020 Balance at beginning of year $ 276 $ 371 Additions 90 368 Repayments (366) (463) Balance at end of year $ — $ 276 |
Schedule of allowance for loan loss and the unearned income on loans | Loans Secured By Real Estate Commercial and Industrial Loans Consumer Loans December 31, 2021 Construction Single-family Commercial Commercial (dollars in thousands) and Land Farmland Residential Multi-family Commercial and Industrial SBA Guaranty SBA PPP Consumer Automobile Total Balance, beginning of year $ 9 $ 2 $ 513 $ 39 $ 218 $ 67 $ 48 $ — $ 11 $ 569 $ 1,476 Impact of ASC 326 adoption 16 9 854 63 199 120 (6) — 46 273 1,574 Charge-offs — — — — — — — — (2) (251) (253) Recoveries — — 408 — — — — — — 240 648 Release for credit losses (20) — (418) 3 (139) (72) (12) — (19) (298) (975) Balance, end of year $ 5 $ 11 $ 1,357 $ 105 $ 278 $ 115 $ 30 $ — $ 36 $ 533 $ 2,470 Individually evaluated for impairment: Balance in allowance $ — $ — $ 10 $ — $ — $ — $ — $ — $ — $ — $ 10 Related loan balance — — 36 — — — — — — — 36 Collectively evaluated for impairment: Balance in allowance $ 5 $ 11 $ 1,347 $ 105 $ 278 $ 115 $ 30 $ — $ 36 $ 533 $ 2,460 Related loan balance 4,087 342 78,083 5,428 48,729 10,003 6,397 1,047 2,090 54,150 210,356 Loans Secured By Real Estate Commercial and Industrial Loans Consumer Loans December 31, 2020 Construction Single-family Commercial Commercial (dollars in thousands) and Land Farmland Residential Multi-family Commercial and Industrial SBA Guaranty SBA PPP Consumer Automobile Total Balance, beginning of year $ 24 $ 2 $ 849 $ 40 $ 241 $ 69 $ 25 $ — $ 11 $ 805 $ 2,066 Charge-offs — — — — — — — — — (392) (392) Recoveries — — 266 — — 20 — — 6 199 491 Release for credit losses (15) — (602) (1) (23) (22) 23 — (6) (43) (689) Balance, end of year $ 9 $ 2 $ 513 $ 39 $ 218 $ 67 $ 48 $ — $ 11 $ 569 $ 1,476 Individually evaluated for impairment: Balance in allowance $ — $ — $ — $ — $ — $ — $ — $ — $ 11 $ — $ 11 Related loan balance — — 132 — — 4,493 — — 39 — 4,664 Collectively evaluated for impairment: Balance in allowance $ 9 $ 2 $ 513 $ 39 $ 218 $ 67 $ 48 $ — $ — $ 569 $ 1,465 Related loan balance 2,553 350 82,388 6,105 57,027 6,307 7,200 9,912 3,024 74,242 249,108 |
Schedule of non accrual loans | The following table rolls forward the Company’s activity for nonaccrual loans during the years 2021 and 2020: Commercial and Loans Secured By Real Estate Industrial Loans Consumer Loans Single-family Residential Multi-family Commercial SBA Guaranty Consumer Automobile Total (dollars in thousands) December 31, 2019 $ 790 $ 24 $ 3,139 $ — $ 51 $ 123 $ 4,127 Transfers into nonaccrual 64 — 1,619 — — 551 2,234 Loans paid down/payoffs (584) (24) (152) — (17) (103) (880) Loans returned to accrual status — — (577) — — (17) (594) Loans charged off — — — — — (375) (375) December 31, 2020 $ 270 $ — $ 4,029 $ — $ 34 $ 179 $ 4,512 Transfers into nonaccrual 920 71 1 291 1,283 Loans paid down/payoffs (147) $ — (3,987) $ — (1) (83) (4,218) Loans returned to accrual status — — (962) — (34) — (996) Loans charged off — — — — — (243) (243) December 31, 2021 $ 123 $ — $ — $ 71 $ — $ 144 $ 338 |
Schedule of risk ratings of loans by categories of loans | Loans Secured By Real Estate Commercial and Industrial Loans Consumer Loans December 31, 2021 Construction Single-family Commercial Commercial (dollars in thousands) and Land Farmland Residential Multi-family Commercial and Industrial SBA Guaranty SBA PPP Consumer Automobile Total Pass $ 4,072 $ 342 $ 77,996 $ 5,428 $ 45,307 $ 10,003 $ 6,326 $ 1,047 $ 2,084 $ 54,006 $ 206,611 Special mention 15 — — — 3,422 — — — 6 4 3,447 Substandard — — 123 — — — 71 — — 50 244 Doubtful — — — — — — — — — 90 90 Loss — — — — — — — — — — — $ 4,087 $ 342 $ 78,119 $ 5,428 $ 48,729 $ 10,003 $ 6,397 $ 1,047 $ 2,090 $ 54,150 $ 210,392 Nonaccrual $ — $ — $ 123 $ — $ — $ — $ 71 $ — $ — $ 144 $ 338 Troubled debt restructures $ — $ — $ 36 $ — $ — $ — $ — $ — $ — $ — $ 36 Number of TDRs accounts — — 1 — — — — — — — 1 Non-performing TDRs $ — $ — $ 36 $ — $ — $ — $ — $ — $ — $ — $ 36 Number of non-performing TDR accounts — — 1 — — — — — — — 1 Loans Secured By Real Estate Commercial and Industrial Loans Consumer Loans December 31, 2020 Construction Single-family Commercial Commercial (dollars in thousands) and Land Farmland Residential Multi-family Commercial and Industrial SBA Guaranty SBA PPP Consumer Automobile Total Pass $ 2,553 $ 350 $ 82,310 $ 6,105 $ 52,534 $ 10,800 $ 7,200 $ 9,912 $ 3,030 $ 74,064 $ 248,858 Special mention — — — — — — — — — — — Substandard — — 210 — 4,493 — — — 33 62 4,798 Doubtful — — — — — — — — — 116 116 Loss — — — — — — — — — — — $ 2,553 $ 350 $ 82,520 $ 6,105 $ 57,027 $ 10,800 $ 7,200 $ 9,912 $ 3,063 $ 74,242 $ 253,772 Nonaccrual $ — $ — $ 270 $ — $ 4,029 $ — $ — $ — $ 34 $ 179 $ 4,512 Troubled debt restructures $ — $ — $ 39 $ — $ — $ — $ — $ — $ — $ — $ 39 Number of TDRs accounts — — 1 — — — — — — — 1 Non-performing TDRs $ — $ — $ 39 $ — $ — $ — $ — $ — $ — $ — $ 39 Number of non-performing TDR accounts — — 1 — — — — — — — 1 |
Schedule of current, past due, and nonaccrual loans by categories of loans | 90 Days or 30-89 Days More and December 31, 2021 Current Past Due Still Accruing Nonaccrual Total (dollars in thousands) Loans Secured by Real Estate Construction and land $ 4,087 $ — $ — $ — $ 4,087 Farmland 342 — — — 342 Single-family residential 77,981 — 15 123 78,119 Multi-family 5,428 — — — 5,428 Commercial 48,729 — — — 48,729 Total loans secured by real estate 136,567 — 15 123 136,705 Commercial and Industrial Commercial and industrial 10,003 — — — 10,003 SBA guaranty 6,326 — — 71 6,397 Comm SBA PPP 1,047 — — — 1,047 Total commercial and industrial loans 17,376 — — 71 17,447 Consumer Loans Consumer 2,086 4 — — 2,090 Automobile 53,655 351 — 144 54,150 Total consumer loans 55,741 355 — 144 56,240 $ 209,684 $ 355 $ 15 $ 338 $ 210,392 90 Days or 30-89 Days More and December 31, 2020 Current Past Due Still Accruing Nonaccrual Total (dollars in thousands) Loans Secured by Real Estate Construction and land $ 2,553 $ — $ — $ — $ 2,553 Farmland 350 — — — 350 Singlefamily residential 81,057 1,175 18 270 82,520 Multi-family 6,105 — — — 6,105 Commercial 52,424 574 — 4,029 57,027 Total loans secured by real estate 142,489 1,749 18 4,299 148,555 Commercial and Industrial — Commercial and industrial 10,800 — — — 10,800 SBA guaranty 7,200 — — — 7,200 Comm SBA PPP 9,912 — — — 9,912 Total commercial and industrial loans 27,912 — — — 27,912 Consumer Loans — Consumer 3,029 — — 34 3,063 Automobile 73,611 452 — 179 74,242 Total consumer loans 76,640 452 — 213 77,305 0 $ 247,041 $ 2,201 $ 18 $ 4,512 $ 253,772 |
Schedule of impaired financing receivables | Unpaid Interest Average December 31, 2021 Recorded Principal Income Specific Recorded (dollars in thousands) Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Loans Secured by Real Estate Construction and land $ — $ — $ — $ — $ — Farmland — — — — — Single-family residential 26 36 2 10 49 Multi-family — — — — — Commercial — — — — — Total loans secured by real estate 26 36 2 10 49 Commercial and Industrial Commercial and industrial — — — — — SBA guaranty — — — — — Total commercial and industrial loans — — — — — Consumer Loans Consumer — — — — — Automobile — — — — — Total consumer loans — — — — — Total impaired loans with specific reserves $ 26 $ 36 $ 2 $ 10 $ 49 Impaired loans with no specific reserve: Loans Secured by Real Estate Construction and land $ — $ — $ — $ n/a $ — Farmland — — — n/a — Single-family residential 87 87 3 n/a 98 Multi-family — — — n/a — Commercial — — — n/a — Total loans secured by real estate 87 87 3 — 98 Commercial and Industrial Commercial and industrial — — — n/a — SBA guaranty 71 71 1 n/a 71 Total commercial and industrial loans 71 71 1 — 71 Consumer Loans Consumer — — — n/a — Automobile 143 143 8 n/a 181 Total consumer loans 143 143 8 n/a 181 Total impaired loans with no specific reserve $ 301 $ 301 $ 12 $ — $ 350 Unpaid Interest Average December 31, 2020 Recorded Principal Income Specific Recorded (dollars in thousands) Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Loans Secured by Real Estate Construction and land $ — $ — $ — $ — $ — Farmland — — — — — Single-family residential 28 39 2 11 50 Multi-family — — — — — Commercial — — — — — Total loans secured by real estate 28 39 2 11 50 Commercial and Industrial Commercial and industrial — — — — — SBA guaranty — — — — — Total commercial and industrial loans — — — — — Consumer Loans Consumer — — — — — Automobile — — — — — Total consumer loans — — — — — Total impaired loans with specific reserves $ 28 $ 39 $ 2 $ 11 $ 50 Impaired loans with no specific reserve: Loans Secured by Real Estate Construction and land $ — $ — $ — $ n/a $ — Farmland — — — n/a — Single-family residential 232 383 — n/a 544 Multi-family — — — n/a — Commercial 4,493 4,493 185 n/a 4,315 Total loans secured by real estate 4,725 4,876 185 — 4,859 Commercial and Industrial Commercial and industrial — — — n/a — SBA guaranty — — — n/a — Total commercial and industrial loans — — — — — Consumer Loans Consumer 34 34 4 n/a 43 Automobile 117 117 10 n/a 227 Total consumer loans 151 151 14 n/a 270 Total impaired loans with no specific reserve $ 4,876 $ 5,027 $ 199 $ — $ 5,129 |
Schedule of information about credit quality indicators | The following tables provide information about credit quality indicators by the year of origination at December 31, 2021 and 2020: Origination Year (dollars in thousands) 2021 2020 2019 2018 2017 Prior Total December 31, 2021 Loans Secured By Real Estate: Pass $ 16,498 $ 12,135 $ 10,671 $ 13,558 $ 6,715 $ 73,568 $ 133,145 Special mention — — — 787 — 2,650 3,437 Substandard — — — — — — — Nonaccrual — — — — — 123 123 Doubtful — — — — — — — Loss — — — — — — — $ 16,498 $ 12,135 $ 10,671 $ 14,345 $ 6,715 $ 76,341 $ 136,705 Commercial and Industrial Loans: Pass $ 2,766 $ 4,172 $ 1,066 $ 4,128 $ 1,198 $ 4,046 $ 17,376 Special mention — — — — — — — Substandard — — — — — — — Nonaccrual — — — — — 71 71 Doubtful — — — — — — — Loss — — — — — — — $ 2,766 $ 4,172 $ 1,066 $ 4,128 $ 1,198 $ 4,117 $ 17,447 Consumer Loans: Pass $ 12,271 $ 8,222 $ 11,176 $ 16,706 $ 4,908 $ 2,808 $ 56,091 Special mention — — — 5 — — 5 Substandard — — — — — — — Nonaccrual 28 5 38 40 29 4 144 Doubtful — — — — — — — Loss — — — — — — — $ 12,299 $ 8,227 $ 11,214 $ 16,751 $ 4,937 $ 2,812 $ 56,240 Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Total December 31, 2020 Loans Secured By Real Estate: Pass $ 13,432 $ 11,902 $ 17,234 $ 10,472 $ 12,013 $ 78,801 $ 143,854 Special mention — — — — — — — Substandard — — — — — 402 402 Nonaccrual — — — 2,597 — 1,702 4,299 Doubtful — — — — — — — Loss — — — — — — — $ 13,432 $ 11,902 $ 17,234 $ 13,069 $ 12,013 $ 80,905 $ 148,555 Commercial and Industrial Loans: Pass $ 14,906 $ 1,855 $ 4,034 $ 1,686 $ 1,338 $ 4,093 $ 27,912 Special mention — — — — — — — Substandard — — — — — — — Nonaccrual — — — — — — — Doubtful — — — — — — — Loss — — — — — — — $ 14,906 $ 1,855 $ 4,034 $ 1,686 $ 1,338 $ 4,093 $ 27,912 Consumer Loans: Pass $ 11,315 $ 17,415 $ 29,259 $ 11,835 $ 4,456 $ 2,812 $ 77,092 Special mention — — — — — — — Substandard — — — — — — — Nonaccrual — 21 120 32 5 35 213 Doubtful — — — — — — — Loss — — — — — — — $ 11,315 $ 17,436 $ 29,379 $ 11,867 $ 4,461 $ 2,847 $ 77,305 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Schedule of summary of premises and equipment | Useful December 31, lives 2021 2020 (dollars in thousands) Land $ 685 $ 685 Buildings 5-50 years 6,723 6,672 Equipment and fixtures 5-30 years 8,354 8,055 Construction in progress 36 99 Operating Lease Assets 478 623 16,276 16,134 Accumulated depreciation (12,712) (12,281) $ 3,564 $ 3,853 |
Schedule of future minimum payments of the Banks operating leases | Future minimum payments of the Bank’s operating leases as of December 31, 2021 are as follows: Year ending December 31, Amount (dollars in thousands) 2022 $ 177 2023 156 2024 161 2025 3 2026 2 Thereafter — Total $ 499 |
Federal Home Loan Bank and Sh_2
Federal Home Loan Bank and Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Federal Home Loan Bank and Short-term Borrowings | |
Schedule of swaps designated as cash flow hedges | At December 31, 2021 2020 Unrealized Unrealized Notional Pay Receive Assets/ Loss Assets/ Loss (dollars in thousands) Amount Rate Rate Term Liabilities AOCI Liabilities AOCI Interest rate swap $ 10,000 2.105 % 3M LIBOR 11/2017 - 10/2022 $ (174) $ (126) $ (387) $ (281) Interest rate 5,000 2.235 % 3M LIBOR 7/2018 - 7/2023 (136) (99) (281) (204) Interest rate 5,000 2.246 % 3M LIBOR 8/2018 - 8/2023 (132) (96) (281) (204) Total $ 20,000 $ (442) $ (321) $ (949) $ (689) |
Schedule of total interest expense recorded on swap transactions | Years Ended December 31, (dollars in thousands) Bank Position 2021 2020 Interest rate swap on FHLB advance Pay fixed/receive variable $ (194) $ (113) Interest rate swap on FHLB advance Pay fixed/receive variable (105) (63) Interest rate swap on FHLB advance Pay fixed/receive variable (105) (65) Total $ (404) $ (241) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Schedule of major classifications of interest-bearing deposits | The following table summarizes the major classifications of deposit balances as of the dates indicated: December 31, 2021 2020 (dollars in thousands) Noninterest-bearing deposits $ 155,624 $ 132,626 Interest-bearing deposits: Interest-bearing checking 37,305 32,601 Money Market 23,103 19,077 Savings 106,818 97,036 Time deposits, $100,000 or more 24,624 28,270 Time deposits below $100,000 35,773 40,010 Total interest- bearing deposits 227,623 216,994 Total Deposits $ 383,247 $ 349,620 |
Schedule of interest expense on deposit | 2021 2020 (dollars in thousands) Interest-bearing checking $ 11 $ 9 Money Market 11 9 Savings 51 60 Time deposits, $100,000 or more 248 440 Time deposits below $100,000 288 525 Total Interest Expense $ 609 $ 1,043 |
Schedule of scheduled maturities of time deposits | (dollars in thousands) Amount Maturing in: 2022 $ 32,541 2023 9,886 2024 8,802 2025 3,916 2026 4,323 2027 and thereafter 929 Total Time Deposits $ 60,397 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of components of income tax expense | 2021 2020 (dollars in thousands) Current income tax expense: Federal $ 211 $ 89 State 84 157 Total current tax expense 295 246 Deferred income tax expense: Federal 198 217 State 84 28 Total deferred tax expense 282 245 Total Income tax expense $ 577 $ 491 |
Schedule of reconciliation of income tax expense | 2021 2020 (dollars in thousands) Income tax expense at federal statutory rate $ 650 $ 453 (Decrease) increase resulting from: Tax-exempt income (181) (75) Bank owned life insurance (33) (33) State income taxes, net of Federal income tax benefit 133 146 Other 8 — Total income tax expense $ 577 $ 491 |
Schedule of components of the net deferred income tax benefits | 2021 2020 (dollars in thousands) Deferred income tax benefits: Accrued deferred compensation $ 84 $ 78 Allowance for credit losses 376 143 Accumulated depreciation (22) (16) Other real estate owned — 36 Reserve for unfunded commitments 102 9 Accounting standard 310-20 (144) (117) Right of use asset (132) (171) Lease liability 132 171 Accumulated securities premium accretion 228 214 Net unrealized depreciation on investment securities available for sale 211 (466) Net unrealized loss on Swaps 121 261 Net deferred income tax benefits $ 956 $ 142 |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Noninterest Expenses. | |
Schedule of other operating expenses | Year Ended December 31, 2021 2020 (dollars in thousands) Loan related expenses $ 195 $ 115 Other ATM expenses 36 77 Director, executive and audit committee fees and expenses 167 168 Postage, delivery and courier expenses 70 39 Office supplies expenses 35 54 Credit report fees 38 32 Dues and subscription fees 93 95 Examination and assessment fees 48 58 Federal Reserve and correspondent bank services 30 36 Foreclosed property expenses 23 147 Liability insurance 85 64 Release for unfunded commitments (119) (5) Card services 114 54 NASDAQ registration 56 43 Investor services 43 42 Other 195 203 Total Other Noninterest Expense $ 1,109 $ 1,222 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Schedule of outstanding loan commitments, unused lines of credit and letters of credit | Outstanding loan commitments, unused lines of credit and letters of credit are as follows: December 31, 2021 2020 (dollars in thousands) Loan commitments: Other mortgage loans $ 2,863 $ 2,229 Unused lines of credit: Home-equity lines $ 9,224 $ 8,672 Commercial lines 15,432 19,982 Unsecured consumer lines 648 678 $ 25,304 $ 29,332 Letters of credit: $ 55 $ 1,044 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity | |
Schedule of comparison of capital with minimum requirements | To Be Well Capitalized To Be Considered Under Prompt Corrective Actual Adequately Capitalized Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Common Equity Tier 1 Capital $ 37,592 15.32 % $ 11,044 4.50 % $ 15,952 6.50 % Total Risk-Based Capital $ 39,329 16.03 % $ 19,634 8.00 % $ 24,542 10.00 % Tier 1 Risk-Based Capital $ 37,592 15.32 % $ 14,725 6.00 % $ 19,634 8.00 % Tier 1 Leverage $ 37,592 8.40 % $ 17,910 4.00 % $ 22,388 5.00 % To Be Well Capitalized To Be Considered Under Prompt Corrective Actual Adequately Capitalized Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020 Common Equity Tier 1 Capital $ 36,442 13.09 % $ 12,532 4.50 % $ 18,101 6.50 % Total Risk-Based Capital $ 37,951 13.63 % $ 22,278 8.00 % $ 27,848 10.00 % Tier 1 Risk-Based Capital $ 36,442 13.09 % $ 16,709 6.00 % $ 22,278 8.00 % Tier 1 Leverage $ 36,442 9.12 % $ 15,980 4.00 % $ 19,975 5.00 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE | |
Schedule of earnings per common share | Year Ended December 31, 2021 2020 Basic earnings per share: Net income $ 2,516,387 $ 1,667,741 Weighted average common shares outstanding 2,848,465 2,835,037 Basic net income per share $ 0.88 $ 0.59 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Values Of Financial Instruments [Abstract] | |
Schedule of estimated fair values of financial instruments | December 31, 2021 December 31, 2020 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,111 $ 2,111 $ 2,117 $ 2,117 Interest-bearing deposits in other financial institutions 56,434 56,434 29,730 29,730 Federal funds sold 3,636 3,636 5,246 5,246 Investment securities available for sale 155,927 155,927 114,049 114,049 Investments in restricted stock 1,062 1,062 1,199 1,199 Ground rents 131 131 140 140 Loans, less allowance for credit losses 207,922 211,541 252,296 253,946 Accrued interest receivable 1,085 1,085 1,302 1,302 Cash value of life insurance 8,338 8,338 8,181 8,181 Financial liabilities: Deposits 383,247 383,910 349,620 350,666 Long-term borrowings 10,000 9,888 — — Short-term borrowings 10,000 10,000 29,912 29,935 Accrued interest payable 11 11 16 16 Unrecognized financial instruments: Commitments to extend credit 28,167 28,167 31,561 31,561 Standby letters of credit 55 55 1,044 1,044 |
Schedule of fair value hierarchy of financial instruments | (dollars in thousands) Carrying Fair December 31, 2021 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 62,181 $ 62,181 $ 62,181 — $ — Loans receivable, net 207,922 211,541 — — 211,541 Cash value of life insurance 8,338 8,338 — 8,338 — Financial instruments - Liabilities Deposits 383,247 383,910 227,580 156,330 — Long-term debt 10,000 — — — — Short-term debt 10,000 10,000 — 10,000 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Schedule of fair value measurements on a recurring and non-recurring basis | Fair (dollars in thousands) Level 1 Level 2 Level 3 Value December 31, 2021 Recurring: Securities available for sale State and Municipal — 45,225 — 45,225 Mortgaged-backed — 109,228 — 109,228 Corporate securities — 1,474 — 1,474 Interest rate swap — (442) — (442) Non-recurring: Maryland Financial Bank stock — — 3 3 Impaired loans — — 317 317 OREO — — — — $ — $ 155,485 $ 320 $ 155,805 December 31, 2020 Recurring: Securities available for sale State and Municipal — 29,413 — 29,413 Mortgaged-backed — 84,636 — 84,636 Interest rate swap — (949) — (949) Non-recurring: Maryland Financial Bank stock — — 3 3 Impaired loans — — 4,893 4,893 OREO — 575 — 575 $ — $ 113,675 $ 4,896 $ 118,571 |
Parent Company Financial Info_2
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BASIS OF PRESENTATION | |
Schedule of balance sheets statement | ___________________________________________Balance Sheets________________________________________ December 31, 2021 2020 (dollars in thousands) Assets Cash $ 99 $ 111 Investment in The Bank of Glen Burnie 35,614 36,982 Other assets 3 — Total assets $ 35,716 $ 37,093 Liabilities and Stockholders’ Equity Stockholders’ equity: Common stock 2,854 2,842 Surplus 10,759 10,640 Retained earnings 22,977 23,071 Accumulated other comprehensive income (loss), net of benefits (874) 540 Total stockholders’ equity 35,716 37,093 Total liabilities and stockholders’ equity $ 35,716 $ 37,093 |
Schedule of income statement | __________________________________________Statements of Income___________________________________ Year Ended December 31, 2021 2020 (dollars in thousands) Dividends and distributions from subsidiary $ 1,200 $ 1,265 Other expenses (245) (236) Income before income tax benefit and equity in undistributed net income of subsidiary 955 1,029 Income tax benefit 44 43 Change in undistributed equity of subsidiary 1,517 596 Net income $ 2,516 $ 1,668 |
Schedule of cash flow statement | ___________________________________Statements of Cash Flows_______________________________________ Year Ended December 31, 2021 2020 (dollars in thousands) Cash flows from operating activities: Net income $ 2,516 $ 1,668 Adjustments to reconcile net income to net cash provided by operating activities: (Increase) decrease in other assets (3) — Change in undistributed equity of subsidiary (1,517) (596) Net cash provided by operating activities 996 1,072 Cash flows from financing activities: Proceeds from dividend reinvestment plan 130 130 Dividends paid (1,138) (1,134) Net cash used in financing activities (1,008) (1,004) (Decrease) increase in cash (12) 68 Cash, beginning of year 111 43 Cash, end of year $ 99 $ 111 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Results of Operations (Unaudited) | |
Schedule of summary of consolidated unaudited quarterly results of operations | (dollars in thousands, Three months ended except per share amounts) December 31, September 30, June 30, March 31, Interest income $ 3,461 $ 3,605 $ 3,290 $ 3,161 Interest expense 251 265 274 284 Net interest income 3,210 3,340 3,016 2,877 Provision for credit losses (382) (122) (67) (404) Net securities gains (589) 1 — — Income before income taxes 693 1,131 570 699 Net income 555 888 479 594 Net income per share (basic and diluted) $ 0.19 $ 0.31 $ 0.17 $ 0.21 ___________________________________________2020______________________________ (dollars in thousands, Three months ended except per share amounts) December 31, September 30, June 30, March 31, Interest income $ 3,485 $ 3,349 $ 3,336 $ 3,499 Interest expense 313 353 398 451 Net interest income 3,172 2,996 2,938 3,048 Provision for credit losses (427) (669) 487 (80) Net securities gains 6 — — — Income before income taxes 712 1,232 (128) 343 Net income 547 949 (96) 268 Net income per share (basic and diluted) $ 0.20 $ 0.33 $ (0.03) $ 0.09 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank Stock Par Value | $ 100 | |
Other Real Estate, Disposals | $ 0 | $ 0 |
Real Estate Acquired Through Foreclosure | $ 575,000 | |
Transfer of loans to real estate acquired through foreclosure | $ 0 | |
Minimum | Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Maximum | Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Advertising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Marketing and Advertising Expense [Abstract] | ||
Advertising Expense | $ 0.1 | $ 0.1 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies - Recent Accounting Pronouncements and Developments (Details) - USD ($) $ in Thousands | Jan. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Right-of-use asset | $ 478 | $ 623 | |
Allowance for loan losses | $ 2,470 | 1,476 | |
Reserve for unfunded commitments | 33 | ||
Total allowance for credit losses | 1,509 | ||
Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | $ 1,574 | ||
Reserve for unfunded commitments | 457 | ||
Total allowance for credit losses | 2,031 | ||
Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 3,050 | ||
Reserve for unfunded commitments | 490 | ||
Total allowance for credit losses | 3,540 | ||
Single-family | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 1,366 | ||
Real Estate Loan | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 781 | ||
Real Estate Loan | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 1,141 | ||
Real Estate Loan | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 1,922 | ||
Real Estate Loan | Construction And Land Development [Member] | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 10 | ||
Real Estate Loan | Construction And Land Development [Member] | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 16 | ||
Real Estate Loan | Construction And Land Development [Member] | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 26 | ||
Real Estate Loan | Farmland | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 2 | ||
Real Estate Loan | Farmland | Adjustment | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 9 | ||
Real Estate Loan | Farmland | Adjusted balance | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 11 | ||
Real Estate Loan | Single-family | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 512 | ||
Real Estate Loan | Single-family | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 854 | ||
Real Estate Loan | Multi-family | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 39 | ||
Real Estate Loan | Multi-family | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 63 | ||
Real Estate Loan | Multi-family | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 102 | ||
Real Estate Loan | Commercial | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 218 | ||
Real Estate Loan | Commercial | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 199 | ||
Real Estate Loan | Commercial | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 417 | ||
Commercial and Industrial | Adjustment | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 115 | ||
Commercial and Industrial | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 114 | ||
Commercial and Industrial | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 229 | ||
Commercial and Industrial | Commercial and industrial | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 67 | ||
Commercial and Industrial | Commercial and industrial | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 120 | ||
Commercial and Industrial | Commercial and industrial | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 187 | ||
Commercial and Industrial | SBA Guaranty | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 48 | ||
Commercial and Industrial | SBA Guaranty | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | (6) | ||
Commercial and Industrial | SBA Guaranty | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 42 | ||
Consumer Loans | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 580 | ||
Consumer Loans | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 319 | ||
Consumer Loans | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 899 | ||
Consumer Loans | Consumer and Indirect | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 11 | ||
Consumer Loans | Consumer and Indirect | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 46 | ||
Consumer Loans | Consumer and Indirect | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 57 | ||
Consumer Loans | Automobile | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | $ 569 | ||
Consumer Loans | Automobile | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 273 | ||
Consumer Loans | Automobile | Adjusted balance | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Allowance for loan losses | 842 | ||
Retained Earnings [Member] | Adjustment | ASU 2016-13 | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Total allowance for credit losses | 2,031 | ||
Allowance for credit losses, tax effect | (559) | ||
Allowance for credit losses net of tax | $ 1,472 |
Restrictions on Cash and Amou_2
Restrictions on Cash and Amounts Due From Banks (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Restrictions on Cash and Amounts Due from Banks | ||
Deposit liabilities reserves average | $ 0 | $ 0.4 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Market Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investment Securities | ||
Amortized Cost | $ 156,692 | $ 112,354 |
Gross Unrealized Gains | 1,340 | 2,031 |
Gross Unrealized Losses | (2,105) | (336) |
Fair Value | 155,927 | 114,049 |
Trading securities | 0 | 0 |
Held to maturity | 0 | 0 |
Collateralized mortgage obligations | ||
Investment Securities | ||
Amortized Cost | 21,730 | 24,261 |
Gross Unrealized Gains | 169 | 396 |
Gross Unrealized Losses | (211) | (14) |
Fair Value | 21,688 | 24,643 |
Agency mortgage-backed securities | ||
Investment Securities | ||
Amortized Cost | 56,252 | 26,072 |
Gross Unrealized Gains | 356 | 886 |
Gross Unrealized Losses | (419) | (10) |
Fair Value | 56,189 | 26,948 |
Municipal securities | ||
Investment Securities | ||
Amortized Cost | 44,594 | 28,675 |
Gross Unrealized Gains | 811 | 740 |
Gross Unrealized Losses | (180) | (2) |
Fair Value | 45,225 | 29,413 |
U.S. Government agency securities | ||
Investment Securities | ||
Amortized Cost | 32,616 | 33,346 |
Gross Unrealized Gains | 4 | 9 |
Gross Unrealized Losses | (1,269) | (310) |
Fair Value | 31,351 | $ 33,045 |
Corporate securities | ||
Investment Securities | ||
Amortized Cost | 1,500 | |
Gross Unrealized Losses | (26) | |
Fair Value | $ 1,474 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($) |
Investment Securities | ||
Less than 12 months Fair Value | $ 84,079 | $ 25,212 |
Less than 12 months Unrealized Loss | (1,234) | (310) |
12 months or more Fair Value | 17,015 | 2,235 |
12 months or more Unrealized Loss | (871) | (26) |
Total Fair Value | 101,094 | 27,447 |
Total Unrealized Loss | (2,105) | (336) |
Collateralized mortgage obligations | ||
Investment Securities | ||
Less than 12 months Fair Value | 7,917 | 201 |
Less than 12 months Unrealized Loss | (194) | |
12 months or more Fair Value | 876 | 1,188 |
12 months or more Unrealized Loss | (17) | (14) |
Total Fair Value | 8,793 | 1,389 |
Total Unrealized Loss | $ (211) | (14) |
Number of securities continuous unrealized loss position more than twelve months | security | 25 | |
Agency mortgage-backed securities | ||
Investment Securities | ||
Less than 12 months Fair Value | $ 42,109 | |
Less than 12 months Unrealized Loss | (414) | |
12 months or more Fair Value | 197 | 566 |
12 months or more Unrealized Loss | (5) | (10) |
Total Fair Value | 42,306 | 566 |
Total Unrealized Loss | $ (419) | (10) |
Number of securities continuous unrealized loss position more than twelve months | security | 29 | |
Municipal securities | ||
Investment Securities | ||
Less than 12 months Fair Value | $ 18,603 | 851 |
Less than 12 months Unrealized Loss | (180) | (2) |
Total Fair Value | 18,603 | 851 |
Total Unrealized Loss | $ (180) | (2) |
Number of securities continuous unrealized loss position more than twelve months | security | 9 | |
Corporate securities | ||
Investment Securities | ||
Less than 12 months Fair Value | $ 1,474 | |
Less than 12 months Unrealized Loss | (26) | |
Total Fair Value | 1,474 | |
Total Unrealized Loss | $ (26) | |
Number of securities continuous unrealized loss position more than twelve months | security | 1 | |
U.S. Government agency securities | ||
Investment Securities | ||
Less than 12 months Fair Value | $ 13,976 | 24,160 |
Less than 12 months Unrealized Loss | (420) | (308) |
12 months or more Fair Value | 15,942 | 481 |
12 months or more Unrealized Loss | (849) | (2) |
Total Fair Value | 29,918 | 24,641 |
Total Unrealized Loss | $ (1,269) | $ (310) |
Number of securities continuous unrealized loss position more than twelve months | security | 52 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available for Sale Amortized Cost | ||
Due over one to five years | $ 3,448 | |
Due over five to ten years | 11,015 | |
Due over ten years | 62,747 | |
Amortized Cost | 156,692 | $ 112,354 |
Available for Sale Fair Value | ||
Due over one to five years | 3,507 | |
Due over five to ten years | 10,902 | |
Due over ten years | 62,167 | |
Fair Value | 155,927 | 114,049 |
Collateralized Mortgage Obligations Including Corporate Securities | ||
Available for Sale Amortized Cost | ||
Amortized Cost | 23,230 | |
Available for Sale Fair Value | ||
Fair Value | 23,162 | |
Agency mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Amortized Cost | 56,252 | 26,072 |
Available for Sale Fair Value | ||
Fair Value | $ 56,189 | $ 26,948 |
Investment Securities (Details)
Investment Securities (Details) | 12 Months Ended | ||||
Dec. 31, 2021USD ($)securityshares | Dec. 31, 2020USD ($)securityshares | Dec. 31, 2019USD ($)$ / shares | Sep. 30, 2021USD ($) | Dec. 31, 2018USD ($)shares | |
Schedule of Available-for-sale Securities | |||||
Common stock, shares outstanding | shares | 2,853,880 | 2,842,040 | |||
Total Unrealized Loss | $ 2,105,000 | $ 336,000 | |||
Unrealized losses on securities | 2,100,000 | 300,000 | |||
Investment securities available for sale, at fair value | 155,927,000 | 114,049,000 | |||
Sales of available for sale debt securities | 32,700,000 | 0 | |||
Realized gain (loss) on sale | 588,000,000 | 6,000 | |||
Interest rate swap | |||||
Schedule of Available-for-sale Securities | |||||
Investment securities pledged as collateral | $ 1,200,000 | 900,000 | |||
Maryland Financial Bank | |||||
Schedule of Available-for-sale Securities | |||||
Liquidating distributions (per share) | $ / shares | $ 0.53 | ||||
Common stock, shares outstanding | shares | 5,000 | ||||
Common stock, value outstanding | 2,650,000 | $ 5,000,000 | |||
Total Unrealized Loss | $ 2,350,000 | $ 25,000 | $ 25,000 | ||
Private Label Mortgage-Backed securities | |||||
Schedule of Available-for-sale Securities | |||||
Number of investment securities portfolio held | security | 0 | 0 | |||
Collateralized mortgage obligations | |||||
Schedule of Available-for-sale Securities | |||||
Number of investment securities portfolio held | security | 0 | 0 | |||
Number of securities continuous unrealized loss position more than twelve months | security | 25 | ||||
Total Unrealized Loss | $ 211,000 | $ 14,000 | |||
Investment securities available for sale, at fair value | $ 21,688,000 | 24,643,000 | |||
Agency mortgage-backed securities | |||||
Schedule of Available-for-sale Securities | |||||
Number of securities continuous unrealized loss position more than twelve months | security | 29 | ||||
Total Unrealized Loss | $ 419,000 | 10,000 | |||
Investment securities available for sale, at fair value | $ 56,189,000 | 26,948,000 | |||
Corporate securities | |||||
Schedule of Available-for-sale Securities | |||||
Number of securities continuous unrealized loss position more than twelve months | security | 1 | ||||
Total Unrealized Loss | $ 26,000 | ||||
Investment securities available for sale, at fair value | $ 1,474,000 | ||||
Municipal securities | |||||
Schedule of Available-for-sale Securities | |||||
Number of securities continuous unrealized loss position more than twelve months | security | 9 | ||||
Total Unrealized Loss | $ 180,000 | 2,000 | |||
Investment securities available for sale, at fair value | $ 45,225,000 | 29,413,000 | |||
U.S. Government agency securities | |||||
Schedule of Available-for-sale Securities | |||||
Number of securities continuous unrealized loss position more than twelve months | security | 52 | ||||
Total Unrealized Loss | $ 1,269,000 | 310,000 | |||
Investment securities available for sale, at fair value | $ 31,351,000 | $ 33,045,000 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loans - Major Categories of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | $ 210,392 | $ 253,772 | |
Less: Allowance for credit losses | (2,470) | (1,476) | |
Loans, net | 207,922 | 252,296 | |
Related party loans | 0 | 276 | $ 371 |
Real Estate Loan | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 136,705 | 148,555 | |
Less: Allowance for credit losses | (781) | ||
Commercial and Industrial | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 17,447 | 27,912 | |
Consumer Loans | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 56,240 | 77,305 | |
Less: Allowance for credit losses | (580) | ||
Construction And Land Development [Member] | Real Estate Loan | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 4,087 | 2,553 | |
Less: Allowance for credit losses | (10) | ||
Farmland | Real Estate Loan | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 342 | 350 | |
Less: Allowance for credit losses | (2) | ||
Single-family | Real Estate Loan | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 78,119 | 82,520 | |
Less: Allowance for credit losses | (512) | ||
Multi-family | Real Estate Loan | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 5,428 | 6,105 | |
Less: Allowance for credit losses | (39) | ||
Commercial | Real Estate Loan | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 48,729 | 57,027 | |
Less: Allowance for credit losses | (218) | ||
Commercial | Commercial and Industrial | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 17,447 | 27,912 | |
Commercial | Consumer Loans | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 56,240 | 77,305 | |
Commercial and industrial | Commercial and Industrial | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 10,003 | 10,800 | |
Less: Allowance for credit losses | (67) | ||
SBA Guaranty | Commercial and Industrial | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 6,397 | 7,200 | |
Less: Allowance for credit losses | (48) | ||
Comm SBA PPP | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 10,000 | ||
Comm SBA PPP | Commercial and Industrial | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 1,047 | 9,912 | |
Consumer and Indirect | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net | 54,200 | 74,200 | |
Consumer and Indirect | Consumer Loans | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | 2,090 | 3,063 | |
Less: Allowance for credit losses | (11) | ||
Automobile | Consumer Loans | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Loans, net of deferred fees and costs | $ 54,150 | 74,242 | |
Less: Allowance for credit losses | $ (569) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Loans - Related parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance at beginning of year | $ 276 | $ 371 |
Additions | 90 | 368 |
Repayments | (366) | (463) |
Balance at end of year | $ 0 | $ 276 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Loans - Allowance by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | $ 1,476 | $ 2,066 | $ 1,476 | $ 2,066 | ||||||
Impact of ASC 326 adoption | $ 1,574 | 1,574 | ||||||||
Charged off | (253) | (392) | ||||||||
Recoveries | 648 | 491 | ||||||||
Provision for loan losses | (382) | $ (122) | $ (67) | (404) | $ (427) | $ (669) | $ 487 | (80) | (975) | (689) |
Balance, end of year | 2,470 | 1,476 | 2,470 | 1,476 | ||||||
Individually evaluated for impairment: | ||||||||||
Individually evaluated for impairment, Balance in allowance | 10 | 11 | 10 | 11 | ||||||
Individually evaluated for impairment, Related loan balance | 36 | 4,664 | 36 | 4,664 | ||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 2,460 | 1,465 | 2,460 | 1,465 | ||||||
Collectively evaluated for impairment, Related loan balance | 210,356 | 249,108 | 210,356 | 249,108 | ||||||
Real Estate Loan | ||||||||||
Individually evaluated for impairment: | ||||||||||
Individually evaluated for impairment, Balance in allowance | 10 | 11 | 10 | 11 | ||||||
Construction And Land Development [Member] | Real Estate Loan | ||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | 9 | 24 | 9 | 24 | ||||||
Impact of ASC 326 adoption | 16 | 16 | ||||||||
Provision for loan losses | (20) | (15) | ||||||||
Balance, end of year | 5 | 9 | 5 | 9 | ||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 5 | 9 | 5 | 9 | ||||||
Collectively evaluated for impairment, Related loan balance | 4,087 | 2,553 | 4,087 | 2,553 | ||||||
Farmland | Real Estate Loan | ||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | 2 | 2 | 2 | 2 | ||||||
Impact of ASC 326 adoption | 9 | 9 | ||||||||
Balance, end of year | 11 | 2 | 11 | 2 | ||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 11 | 2 | 11 | 2 | ||||||
Collectively evaluated for impairment, Related loan balance | 342 | 350 | 342 | 350 | ||||||
Single-family | Real Estate Loan | ||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | 513 | 849 | 513 | 849 | ||||||
Impact of ASC 326 adoption | 854 | 854 | ||||||||
Recoveries | 408 | 266 | ||||||||
Provision for loan losses | (418) | (602) | ||||||||
Balance, end of year | 1,357 | 513 | 1,357 | 513 | ||||||
Individually evaluated for impairment: | ||||||||||
Individually evaluated for impairment, Balance in allowance | 10 | 11 | 10 | 11 | ||||||
Individually evaluated for impairment, Related loan balance | 36 | 132 | 36 | 132 | ||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 1,347 | 513 | 1,347 | 513 | ||||||
Collectively evaluated for impairment, Related loan balance | 78,083 | 82,388 | 78,083 | 82,388 | ||||||
Multi-family | Real Estate Loan | ||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | 39 | 40 | 39 | 40 | ||||||
Impact of ASC 326 adoption | 63 | 63 | ||||||||
Provision for loan losses | 3 | (1) | ||||||||
Balance, end of year | 105 | 39 | 105 | 39 | ||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 105 | 39 | 105 | 39 | ||||||
Collectively evaluated for impairment, Related loan balance | 5,428 | 6,105 | 5,428 | 6,105 | ||||||
Commercial and industrial | Commercial and Industrial | ||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | 67 | 69 | 67 | 69 | ||||||
Impact of ASC 326 adoption | 120 | 120 | ||||||||
Recoveries | 20 | |||||||||
Provision for loan losses | (72) | (22) | ||||||||
Balance, end of year | 115 | 67 | 115 | 67 | ||||||
Individually evaluated for impairment: | ||||||||||
Individually evaluated for impairment, Related loan balance | 4,493 | 4,493 | ||||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 115 | 67 | 115 | 67 | ||||||
Collectively evaluated for impairment, Related loan balance | 10,003 | 6,307 | 10,003 | 6,307 | ||||||
Commercial | Real Estate Loan | ||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | 218 | 241 | 218 | 241 | ||||||
Impact of ASC 326 adoption | 199 | 199 | ||||||||
Provision for loan losses | (139) | (23) | ||||||||
Balance, end of year | 278 | 218 | 278 | 218 | ||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 278 | 218 | 278 | 218 | ||||||
Collectively evaluated for impairment, Related loan balance | 48,729 | 57,027 | 48,729 | 57,027 | ||||||
Commercial | Commercial and Industrial | ||||||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Related loan balance | 9,912 | 9,912 | ||||||||
SBA Guaranty | Commercial and Industrial | ||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | 48 | 25 | 48 | 25 | ||||||
Impact of ASC 326 adoption | (6) | (6) | ||||||||
Provision for loan losses | (12) | 23 | ||||||||
Balance, end of year | 30 | 48 | 30 | 48 | ||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 30 | 48 | 30 | 48 | ||||||
Collectively evaluated for impairment, Related loan balance | 6,397 | 7,200 | 6,397 | 7,200 | ||||||
Comm SBA PPP | Commercial and Industrial | ||||||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Related loan balance | 1,047 | 1,047 | ||||||||
Consumer and Indirect | Consumer Loans | ||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | 11 | 11 | 11 | 11 | ||||||
Impact of ASC 326 adoption | 46 | 46 | ||||||||
Charged off | (2) | |||||||||
Recoveries | 6 | |||||||||
Provision for loan losses | (19) | (6) | ||||||||
Balance, end of year | 36 | 11 | 36 | 11 | ||||||
Individually evaluated for impairment: | ||||||||||
Individually evaluated for impairment, Balance in allowance | 11 | 11 | ||||||||
Individually evaluated for impairment, Related loan balance | 39 | 39 | ||||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 36 | 36 | ||||||||
Collectively evaluated for impairment, Related loan balance | 2,090 | 3,024 | 2,090 | 3,024 | ||||||
Automobile | Consumer Loans | ||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||||
Balance, beginning of year | $ 569 | $ 805 | 569 | 805 | ||||||
Impact of ASC 326 adoption | 273 | 273 | ||||||||
Charged off | (251) | (392) | ||||||||
Recoveries | 240 | 199 | ||||||||
Provision for loan losses | (298) | (43) | ||||||||
Balance, end of year | 533 | 569 | 533 | 569 | ||||||
Collectively evaluated for impairment: | ||||||||||
Collectively evaluated for impairment, Balance in allowance | 533 | 569 | 533 | 569 | ||||||
Collectively evaluated for impairment, Related loan balance | $ 54,150 | $ 74,242 | $ 54,150 | $ 74,242 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Loans - Non-accrual loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | $ 4,512,000 | $ 4,127,000 |
Transfer into non-accrual | 1,283,000 | 2,234,000 |
Transfer to OREO | 0 | |
Loans paid down/payoffs | (4,218,000) | (880,000) |
Loans return to accrual status | (996,000) | (594,000) |
Loans charged off | (243,000) | (375,000) |
Balance | 338,000 | 4,512,000 |
Real Estate Loan | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | 4,299,000 | |
Balance | 123,000 | 4,299,000 |
Commercial and Industrial | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | 71,000 | |
Single-family | Real Estate Loan | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | 270,000 | 790,000 |
Transfer into non-accrual | 64,000 | |
Loans paid down/payoffs | (147,000) | (584,000) |
Balance | 123,000 | 270,000 |
Multi-family | Real Estate Loan | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | 24,000 | |
Loans paid down/payoffs | (24,000) | |
Commercial | Real Estate Loan | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | 4,029,000 | 3,139,000 |
Transfer into non-accrual | 920,000 | 1,619,000 |
Loans paid down/payoffs | (3,987,000) | (152,000) |
Loans return to accrual status | (962,000) | (577,000) |
Balance | 4,029,000 | |
Commercial | Consumer Loans | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | 213,000 | |
Balance | 144,000 | 213,000 |
SBA Guaranty | Real Estate Loan | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | 71,000 | |
SBA Guaranty | Commercial and Industrial | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Transfer into non-accrual | 71,000 | |
Balance | 71,000 | |
Consumer and Indirect | Consumer Loans | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | 34,000 | 51,000 |
Transfer into non-accrual | 1,000 | |
Loans paid down/payoffs | (1,000) | (17,000) |
Loans return to accrual status | (34,000) | |
Balance | 34,000 | |
Automobile | Consumer Loans | ||
Financing Receivable Nonaccrual Status [Roll Forward] | ||
Balance | 179,000 | 123,000 |
Transfer into non-accrual | 291,000 | 551,000 |
Loans paid down/payoffs | (83,000) | (103,000) |
Loans return to accrual status | (17,000) | |
Loans charged off | (243,000) | (375,000) |
Balance | $ 144,000 | $ 179,000 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Loans - Credit Quality Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)contract | Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 210,392 | $ 253,772 | |
Non-accrual | 338 | 4,512 | $ 4,127 |
Troubled debt restructures | $ 36 | $ 39 | |
Number of TDRs accounts | contract | 1 | 1 | |
Loans and Leases Receivable, Gross | $ 210,392 | $ 253,772 | |
Non-performing TDRs | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Troubled debt restructures | $ 39 | ||
Number of TDRs accounts | contract | 1 | ||
Non-performing TDRs | 36 | ||
Number of non-performing TDRs accounts | contract | 1 | ||
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 206,611 | $ 248,858 | |
Loans and Leases Receivable, Gross | 206,611 | 248,858 | |
Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,447 | ||
Loans and Leases Receivable, Gross | 3,447 | ||
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 244 | 4,798 | |
Loans and Leases Receivable, Gross | 244 | 4,798 | |
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 90 | 116 | |
Loans and Leases Receivable, Gross | 90 | 116 | |
Real Estate Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 136,705 | 148,555 | |
Non-accrual | 123 | 4,299 | |
Loans and Leases Receivable, Gross | 136,705 | 148,555 | |
Real Estate Loan | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 133,145 | 143,854 | |
Loans and Leases Receivable, Gross | 133,145 | 143,854 | |
Real Estate Loan | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,437 | ||
Loans and Leases Receivable, Gross | 3,437 | ||
Real Estate Loan | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 402 | ||
Loans and Leases Receivable, Gross | 402 | ||
Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 17,447 | 27,912 | |
Non-accrual | 71 | ||
Loans and Leases Receivable, Gross | 17,447 | 27,912 | |
Commercial and Industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 17,376 | 27,912 | |
Loans and Leases Receivable, Gross | 17,376 | 27,912 | |
Consumer Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 56,240 | 77,305 | |
Loans and Leases Receivable, Gross | 56,240 | 77,305 | |
Consumer Loans | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 56,091 | 77,092 | |
Loans and Leases Receivable, Gross | 56,091 | 77,092 | |
Consumer Loans | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5 | ||
Loans and Leases Receivable, Gross | 5 | ||
Construction And Land Development [Member] | Real Estate Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,087 | 2,553 | |
Loans and Leases Receivable, Gross | 4,087 | 2,553 | |
Construction And Land Development [Member] | Real Estate Loan | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,072 | 2,553 | |
Loans and Leases Receivable, Gross | 4,072 | 2,553 | |
Construction And Land Development [Member] | Real Estate Loan | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 15 | ||
Loans and Leases Receivable, Gross | 15 | ||
Farmland | Real Estate Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 342 | 350 | |
Loans and Leases Receivable, Gross | 342 | 350 | |
Farmland | Real Estate Loan | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 342 | 350 | |
Loans and Leases Receivable, Gross | 342 | 350 | |
Single-family | Real Estate Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 78,119 | 82,520 | |
Non-accrual | 123 | 270 | 790 |
Troubled debt restructures | $ 36 | $ 39 | |
Number of TDRs accounts | contract | 1 | 1 | |
Loans and Leases Receivable, Gross | $ 78,119 | $ 82,520 | |
Single-family | Real Estate Loan | Non-performing TDRs | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Troubled debt restructures | $ 39 | ||
Number of TDRs accounts | contract | 1 | ||
Non-performing TDRs | 36 | ||
Number of non-performing TDRs accounts | contract | 1 | ||
Single-family | Real Estate Loan | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 77,996 | $ 82,310 | |
Loans and Leases Receivable, Gross | 77,996 | 82,310 | |
Single-family | Real Estate Loan | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 123 | 210 | |
Loans and Leases Receivable, Gross | 123 | 210 | |
Multi-family | Real Estate Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,428 | 6,105 | |
Non-accrual | 24 | ||
Loans and Leases Receivable, Gross | 5,428 | 6,105 | |
Multi-family | Real Estate Loan | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,428 | 6,105 | |
Loans and Leases Receivable, Gross | 5,428 | 6,105 | |
Commercial | Real Estate Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 48,729 | 57,027 | |
Non-accrual | 4,029 | 3,139 | |
Loans and Leases Receivable, Gross | 48,729 | 57,027 | |
Commercial | Real Estate Loan | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 45,307 | 52,534 | |
Loans and Leases Receivable, Gross | 45,307 | 52,534 | |
Commercial | Real Estate Loan | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,422 | ||
Loans and Leases Receivable, Gross | 3,422 | ||
Commercial | Real Estate Loan | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,493 | ||
Loans and Leases Receivable, Gross | 4,493 | ||
Commercial | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 17,447 | 27,912 | |
Loans and Leases Receivable, Gross | 17,447 | 27,912 | |
Commercial | Commercial and Industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 10,003 | ||
Loans and Leases Receivable, Gross | 10,003 | ||
Commercial | Consumer Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 56,240 | 77,305 | |
Non-accrual | 144 | 213 | |
Loans and Leases Receivable, Gross | 56,240 | 77,305 | |
Commercial and industrial | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 10,003 | 10,800 | |
Loans and Leases Receivable, Gross | 10,003 | 10,800 | |
Commercial and industrial | Commercial and Industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 10,800 | ||
Loans and Leases Receivable, Gross | 10,800 | ||
SBA Guaranty | Real Estate Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-accrual | 71 | ||
SBA Guaranty | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,397 | 7,200 | |
Non-accrual | 71 | ||
Loans and Leases Receivable, Gross | 6,397 | 7,200 | |
SBA Guaranty | Commercial and Industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,326 | 7,200 | |
Loans and Leases Receivable, Gross | 6,326 | 7,200 | |
SBA Guaranty | Commercial and Industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 71 | ||
Loans and Leases Receivable, Gross | 71 | ||
Comm SBA PPP | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 10,000 | ||
Loans and Leases Receivable, Gross | 10,000 | ||
Comm SBA PPP | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,047 | 9,912 | |
Loans and Leases Receivable, Gross | 1,047 | 9,912 | |
Comm SBA PPP | Commercial and Industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,047 | 9,912 | |
Loans and Leases Receivable, Gross | 1,047 | 9,912 | |
Consumer and Indirect | Consumer Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,090 | 3,063 | |
Non-accrual | 34 | 51 | |
Loans and Leases Receivable, Gross | 2,090 | 3,063 | |
Consumer and Indirect | Consumer Loans | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,084 | 3,030 | |
Loans and Leases Receivable, Gross | 2,084 | 3,030 | |
Consumer and Indirect | Consumer Loans | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6 | ||
Loans and Leases Receivable, Gross | 6 | ||
Consumer and Indirect | Consumer Loans | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 33 | ||
Loans and Leases Receivable, Gross | 33 | ||
Automobile | Consumer Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 54,150 | 74,242 | |
Non-accrual | 144 | 179 | $ 123 |
Loans and Leases Receivable, Gross | 54,150 | 74,242 | |
Automobile | Consumer Loans | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 54,006 | 74,064 | |
Loans and Leases Receivable, Gross | 54,006 | 74,064 | |
Automobile | Consumer Loans | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4 | ||
Loans and Leases Receivable, Gross | 4 | ||
Automobile | Consumer Loans | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 50 | 62 | |
Loans and Leases Receivable, Gross | 50 | 62 | |
Automobile | Consumer Loans | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 90 | 116 | |
Loans and Leases Receivable, Gross | $ 90 | $ 116 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Loans - Credit quality indicators by year of origination (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and Allowance for Credit Losses - Loans | ||
Total | $ 210,392 | $ 253,772 |
Pass | ||
Loans and Allowance for Credit Losses - Loans | ||
Total | 206,611 | 248,858 |
Special mention | ||
Loans and Allowance for Credit Losses - Loans | ||
Total | 3,447 | |
Substandard | ||
Loans and Allowance for Credit Losses - Loans | ||
Total | 244 | 4,798 |
Doubtful | ||
Loans and Allowance for Credit Losses - Loans | ||
Total | 90 | 116 |
Real Estate Loan | ||
Loans and Allowance for Credit Losses - Loans | ||
2021 | 16,498 | |
2020 | 12,135 | 13,432 |
2019 | 10,671 | 11,902 |
2018 | 14,345 | 17,234 |
2017 | 6,715 | 13,069 |
2016 | 12,013 | |
Prior | 76,341 | 80,905 |
Total | 136,705 | 148,555 |
Real Estate Loan | Pass | ||
Loans and Allowance for Credit Losses - Loans | ||
2021 | 16,498 | |
2020 | 12,135 | 13,432 |
2019 | 10,671 | 11,902 |
2018 | 13,558 | 17,234 |
2017 | 6,715 | 10,472 |
2016 | 12,013 | |
Prior | 73,568 | 78,801 |
Total | 133,145 | 143,854 |
Real Estate Loan | Special mention | ||
Loans and Allowance for Credit Losses - Loans | ||
2018 | 787 | |
Prior | 2,650 | |
Total | 3,437 | |
Real Estate Loan | Substandard | ||
Loans and Allowance for Credit Losses - Loans | ||
Prior | 402 | |
Total | 402 | |
Real Estate Loan | Non accrual | ||
Loans and Allowance for Credit Losses - Loans | ||
2017 | 2,597 | |
Prior | 123 | 1,702 |
Total | 123 | 4,299 |
Commercial and Industrial | ||
Loans and Allowance for Credit Losses - Loans | ||
2021 | 2,766 | |
2020 | 4,172 | 14,906 |
2019 | 1,066 | 1,855 |
2018 | 4,128 | 4,034 |
2017 | 1,198 | 1,686 |
2016 | 1,338 | |
Prior | 4,117 | 4,093 |
Total | 17,447 | 27,912 |
Commercial and Industrial | Pass | ||
Loans and Allowance for Credit Losses - Loans | ||
2021 | 2,766 | |
2020 | 4,172 | 14,906 |
2019 | 1,066 | 1,855 |
2018 | 4,128 | 4,034 |
2017 | 1,198 | 1,686 |
2016 | 1,338 | |
Prior | 4,046 | 4,093 |
Total | 17,376 | 27,912 |
Commercial and Industrial | Non accrual | ||
Loans and Allowance for Credit Losses - Loans | ||
Prior | 71 | |
Total | 71 | |
Consumer Loans | ||
Loans and Allowance for Credit Losses - Loans | ||
2021 | 12,299 | |
2020 | 8,227 | 11,315 |
2019 | 11,214 | 17,436 |
2018 | 16,751 | 29,379 |
2017 | 4,937 | 11,867 |
2016 | 4,461 | |
Prior | 2,812 | 2,847 |
Total | 56,240 | 77,305 |
Consumer Loans | Pass | ||
Loans and Allowance for Credit Losses - Loans | ||
2021 | 12,271 | |
2020 | 8,222 | 11,315 |
2019 | 11,176 | 17,415 |
2018 | 16,706 | 29,259 |
2017 | 4,908 | 11,835 |
2016 | 4,456 | |
Prior | 2,808 | 2,812 |
Total | 56,091 | 77,092 |
Consumer Loans | Special mention | ||
Loans and Allowance for Credit Losses - Loans | ||
2018 | 5 | |
Total | 5 | |
Consumer Loans | Non accrual | ||
Loans and Allowance for Credit Losses - Loans | ||
2021 | 28 | |
2020 | 5 | |
2019 | 38 | 21 |
2018 | 40 | 120 |
2017 | 29 | 32 |
2016 | 5 | |
Prior | 4 | 35 |
Total | $ 144 | $ 213 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Loans - Current, Past Due, and Non-Accrual Loans by Categories of loans and Restructured Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | $ 209,684 | $ 247,041 | |
Non-accrual | 338 | 4,512 | $ 4,127 |
Total | 210,392 | 253,772 | |
Allowance for loan loss | 2,470 | 1,476 | 2,066 |
Loans and Leases Receivable, Gross | 210,392 | 253,772 | |
Financing Receivable, Recorded Investment, Current | 209,684 | 247,041 | |
Financing Receivables 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 355 | 2,201 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days or More and Still Accruing | 15 | 18 | |
Real Estate Loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 136,567 | 142,489 | |
Non-accrual | 123 | 4,299 | |
Total | 136,705 | 148,555 | |
Loans and Leases Receivable, Gross | 136,705 | 148,555 | |
Financing Receivable, Recorded Investment, Current | 136,567 | 142,489 | |
Real Estate Loan | Financing Receivables 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 1,749 | ||
Real Estate Loan | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days or More and Still Accruing | 15 | 18 | |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 17,376 | 27,912 | |
Non-accrual | 71 | ||
Total | 17,447 | 27,912 | |
Loans and Leases Receivable, Gross | 17,447 | 27,912 | |
Financing Receivable, Recorded Investment, Current | 17,376 | 27,912 | |
Consumer Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 56,240 | 77,305 | |
Loans and Leases Receivable, Gross | 56,240 | 77,305 | |
Construction And Land Development [Member] | Real Estate Loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 4,087 | 2,553 | |
Total | 4,087 | 2,553 | |
Allowance for loan loss | 5 | 9 | 24 |
Loans and Leases Receivable, Gross | 4,087 | 2,553 | |
Financing Receivable, Recorded Investment, Current | 4,087 | 2,553 | |
Farmland | Real Estate Loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 342 | 350 | |
Total | 342 | 350 | |
Allowance for loan loss | 11 | 2 | 2 |
Loans and Leases Receivable, Gross | 342 | 350 | |
Financing Receivable, Recorded Investment, Current | 342 | 350 | |
Single-family | Real Estate Loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 77,981 | 81,057 | |
Non-accrual | 123 | 270 | 790 |
Total | 78,119 | 82,520 | |
Allowance for loan loss | 1,357 | 513 | 849 |
Loans and Leases Receivable, Gross | 78,119 | 82,520 | |
Financing Receivable, Recorded Investment, Current | 77,981 | 81,057 | |
Single-family | Real Estate Loan | Financing Receivables 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 1,175 | ||
Single-family | Real Estate Loan | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days or More and Still Accruing | 15 | 18 | |
Multi-family | Real Estate Loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 5,428 | 6,105 | |
Non-accrual | 24 | ||
Total | 5,428 | 6,105 | |
Allowance for loan loss | 105 | 39 | 40 |
Loans and Leases Receivable, Gross | 5,428 | 6,105 | |
Financing Receivable, Recorded Investment, Current | 5,428 | 6,105 | |
Commercial | Real Estate Loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 48,729 | 52,424 | |
Non-accrual | 4,029 | 3,139 | |
Total | 48,729 | 57,027 | |
Allowance for loan loss | 278 | 218 | 241 |
Loans and Leases Receivable, Gross | 48,729 | 57,027 | |
Financing Receivable, Recorded Investment, Current | 48,729 | 52,424 | |
Commercial | Real Estate Loan | Financing Receivables 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 574 | ||
Commercial | Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 17,447 | 27,912 | |
Loans and Leases Receivable, Gross | 17,447 | 27,912 | |
Commercial | Consumer Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 55,741 | 76,640 | |
Non-accrual | 144 | 213 | |
Total | 56,240 | 77,305 | |
Loans and Leases Receivable, Gross | 56,240 | 77,305 | |
Financing Receivable, Recorded Investment, Current | 55,741 | 76,640 | |
Commercial | Consumer Loans | Financing Receivables 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 355 | 452 | |
Commercial and industrial | Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 10,003 | 10,800 | |
Total | 10,003 | 10,800 | |
Allowance for loan loss | 115 | 67 | 69 |
Loans and Leases Receivable, Gross | 10,003 | 10,800 | |
Financing Receivable, Recorded Investment, Current | 10,003 | 10,800 | |
SBA Guaranty | Real Estate Loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 71 | ||
SBA Guaranty | Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 6,326 | 7,200 | |
Non-accrual | 71 | ||
Total | 6,397 | 7,200 | |
Allowance for loan loss | 30 | 48 | 25 |
Loans and Leases Receivable, Gross | 6,397 | 7,200 | |
Financing Receivable, Recorded Investment, Current | 6,326 | 7,200 | |
Comm SBA PPP | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 10,000 | ||
Loans and Leases Receivable, Gross | 10,000 | ||
Comm SBA PPP | Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,047 | 9,912 | |
Total | 1,047 | 9,912 | |
Loans and Leases Receivable, Gross | 1,047 | 9,912 | |
Financing Receivable, Recorded Investment, Current | 1,047 | 9,912 | |
Consumer and Indirect | Consumer Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,086 | 3,029 | |
Non-accrual | 34 | 51 | |
Total | 2,090 | 3,063 | |
Allowance for loan loss | 36 | 11 | 11 |
Loans and Leases Receivable, Gross | 2,090 | 3,063 | |
Financing Receivable, Recorded Investment, Current | 2,086 | 3,029 | |
Consumer and Indirect | Consumer Loans | Financing Receivables 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 4 | ||
Automobile | Consumer Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 53,655 | 73,611 | |
Non-accrual | 144 | 179 | 123 |
Total | 54,150 | 74,242 | |
Allowance for loan loss | 533 | 569 | $ 805 |
Loans and Leases Receivable, Gross | 54,150 | 74,242 | |
Financing Receivable, Recorded Investment, Current | 53,655 | 73,611 | |
Automobile | Consumer Loans | Financing Receivables 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | $ 351 | $ 452 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Loans - Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with specific reserves | $ 26 | $ 28 |
Unpaid Principal Balance with specific reserves | 36 | 39 |
Interest Income Recognized with specific reserves | 2 | 2 |
Specific Reserve with specific reserves | 10 | 11 |
Average Recorded Investment | 49 | 50 |
Recorded Investment with no specific reserve | 4,876 | |
Unpaid Principal Balance with no specific reserve | 5,027 | |
Interest Income Recognized with no specific reserve | 199 | |
Specific Reserve | 10,000 | 11,000 |
Average Recorded Investment with no specific reserve | 5,129 | |
Real Estate Loan | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with specific reserves | 26 | 28 |
Unpaid Principal Balance with specific reserves | 36 | 39 |
Interest Income Recognized with specific reserves | 2 | 2 |
Specific Reserve with specific reserves | 10 | 11 |
Average Recorded Investment | 49 | 50 |
Recorded Investment with no specific reserve | 87 | |
Unpaid Principal Balance with no specific reserve | 87 | |
Interest Income Recognized with no specific reserve | 3 | |
Average Recorded Investment with no specific reserve | 98 | |
Commercial and Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no specific reserve | 71 | |
Unpaid Principal Balance with no specific reserve | 71 | |
Interest Income Recognized with no specific reserve | 1 | |
Average Recorded Investment with no specific reserve | 71 | |
Consumer Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no specific reserve | 143 | 151 |
Unpaid Principal Balance with no specific reserve | 143 | 151 |
Interest Income Recognized with no specific reserve | 8 | 14 |
Average Recorded Investment with no specific reserve | 181 | 270 |
Single-family | Real Estate Loan | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with specific reserves | 26 | 28 |
Unpaid Principal Balance with specific reserves | 36 | 39 |
Interest Income Recognized with specific reserves | 2 | 2 |
Specific Reserve with specific reserves | 10 | 11 |
Average Recorded Investment | 49 | 50 |
Recorded Investment with no specific reserve | 87 | |
Unpaid Principal Balance with no specific reserve | 87 | |
Interest Income Recognized with no specific reserve | 3 | |
Average Recorded Investment with no specific reserve | 98 | |
Commercial | Real Estate Loan | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no specific reserve | 4,493 | |
Unpaid Principal Balance with no specific reserve | 4,493 | |
Interest Income Recognized with no specific reserve | 185 | |
Average Recorded Investment with no specific reserve | 4,315 | |
SBA Guaranty | Commercial and Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no specific reserve | 71 | |
Unpaid Principal Balance with no specific reserve | 71 | |
Interest Income Recognized with no specific reserve | 1 | |
Average Recorded Investment with no specific reserve | 71 | |
Consumer and Indirect | Consumer Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Specific Reserve with specific reserves | 11 | |
Recorded Investment with no specific reserve | 34 | |
Unpaid Principal Balance with no specific reserve | 34 | |
Interest Income Recognized with no specific reserve | 4 | |
Average Recorded Investment with no specific reserve | 43 | |
Automobile | Consumer Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no specific reserve | 143 | 117 |
Unpaid Principal Balance with no specific reserve | 143 | 117 |
Interest Income Recognized with no specific reserve | 8 | 10 |
Average Recorded Investment with no specific reserve | 181 | $ 227 |
Home Equity Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no specific reserve | 301 | |
Unpaid Principal Balance with no specific reserve | 301 | |
Interest Income Recognized with no specific reserve | 12 | |
Average Recorded Investment with no specific reserve | $ 350 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Loans - (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)contractloan | Dec. 31, 2020USD ($)contractloan | |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of new loans modified as TDRs | loan | 0 | 0 |
Number of TDRs accounts | contract | 1 | 1 |
Amount of recorded investment in new troubled debt restructurings, totaled | $ 36,000 | $ 39,000 |
Amount of interest that would have been accrued from non performing financial receivable, totaled | $ 14,000,000 | $ 201,000,000 |
Non-performing TDRs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of TDRs accounts | contract | 1 | 1 |
Amount of recorded investment in new troubled debt restructurings, totaled | $ 36,139,000 | $ 38,711,000 |
Non-performing TDRs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of TDRs accounts | contract | 1 | |
Amount of recorded investment in new troubled debt restructurings, totaled | $ 39,000 | |
Consumer and Indirect | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amount of consumer and indirect loans, outstanding | 36,139 | |
Amount of consumer and indirect loans, specific reserves | $ 10,331 | |
Number Of Loan Consumer And Indirect Loans | contract | 1 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 685 | $ 685 |
Buildings | 6,723 | 6,672 |
Equipment and fixtures | 8,354 | 8,055 |
Construction in progress | 36 | 99 |
Operating Lease Assets | $ 478 | $ 623 |
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 gross | $ 16,276 | $ 16,134 |
Accumulated depreciation | (12,712) | (12,281) |
Property plant and equipment net | $ 3,564 | $ 3,853 |
Building [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Building [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 50 years | |
Equipment [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Equipment [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 30 years |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 300,000 | $ 300,000 |
Amortization of software and intangible assets | 100,000 | 100,000 |
Rent expense | 177,845 | 173,593 |
Rental income | 69,312 | $ 65,383 |
Minimum lease obligations through September 2022 | 177,000 | |
Minimum lease obligations through December 2024 | 161,000 | |
Severna Park Branch [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Minimum lease obligations through September 2022 | 25,000 | |
Linthicum Branch [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Minimum lease obligations through December 2024 | $ 148,756 |
Premises and Equipment - Future
Premises and Equipment - Future Minimum Payment (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Premises and Equipment | |
2022 | $ 177 |
2023 | 156 |
2024 | 161 |
2025 | 3 |
2026 | 2 |
Total | $ 499 |
Federal Home Loan Bank and Sh_3
Federal Home Loan Bank and Short-term Borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||
Federal home loan bank shares owned | 10,598 | |
Percentage of investment to be maintained on total assets | 0.05% | |
Amount of dollar cap on total assets | $ 16.2 | |
Additional percentage of investment to be maintained on total advances | 3.75% | |
Percentage of credit available on total assets | 25.00% | |
Amount of credit available on total assets | $ 108.2 | |
Short term debt average outstanding amount | 19.8 | $ 24.3 |
Long-term federal home loan bank advances | 10 | |
Federal home loan bank, advance, maturity, year one | 10 | |
Average long-term borrowings | 2.1 | $ 0 |
Repayments of interest made on long term borrowings | $ 0 | |
Convertible Advances Maturing In October 31, 2022 | Federal Home Loan Bank of Atlanta [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.20% | |
Debt instrument, maturity date | Oct. 31, 2022 | |
Convertible debt | $ 10 | |
Convertible Advances Maturing In August 24, 2023 | Federal Home Loan Bank of Atlanta [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.26% | |
Debt instrument, maturity date | Aug. 24, 2023 | |
Convertible debt | $ 5 | |
Convertible Advances Maturing In July 27, 2023 | Federal Home Loan Bank of Atlanta [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.28% | |
Debt instrument, maturity date | Jul. 27, 2023 | |
Convertible debt | $ 5 | |
Financial Bank Two [Member] | ||
Short-term Debt [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 8 | |
Financial Bank One [Member] | ||
Short-term Debt [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 9 | |
Maximum | ||
Short-term Debt [Line Items] | ||
Short-term debt weighted average interest rate | 2.34% | |
Minimum | ||
Short-term Debt [Line Items] | ||
Short-term debt weighted average interest rate | 1.94% |
Federal Home Loan Bank and Sh_4
Federal Home Loan Bank and Short-term Borrowings - Derivatives (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)itemcontract | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | ||
Number of interest rate swap designated as cash flow | item | 3 | |
Derivative, Notional Amount | $ 20,000,000 | |
Term | 5 years | |
Assets/ Liabilities | $ (442,000) | $ (949,000) |
Unrealized Gain (Loss) AOCI | (321,000) | (689,000) |
Interest expense recorded on these swap transactions | (404,000) | (241,000) |
Fair value of cash or investment securities pledged as collateral | $ 1,175,000 | 949,000 |
Interest Rate Swap On FHLB Advance [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Number of derivative become effect in july and august 2018 | 2 | |
Interest rate swap on FHLB advance maturing on October 2022 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 10,000,000 | |
Pay Rate | 2.105% | |
Receive Rate | 3M LIBOR | |
Assets/ Liabilities | $ (174,000) | (387,000) |
Unrealized Gain (Loss) AOCI | (126,000) | (281,000) |
Interest expense recorded on these swap transactions | (194,000) | (113,000) |
Interest rate swap on FHLB advance maturing on July 2023 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 5,000,000 | |
Pay Rate | 2.235% | |
Receive Rate | 3M LIBOR | |
Assets/ Liabilities | $ (136,000) | (281,000) |
Unrealized Gain (Loss) AOCI | (99,000) | (204,000) |
Interest expense recorded on these swap transactions | (105,000) | (63,000) |
Interest rate swap on FHLB advance maturing on August 2023 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 5,000,000 | |
Pay Rate | 2.246% | |
Receive Rate | 3M LIBOR | |
Assets/ Liabilities | $ (132,000) | (281,000) |
Unrealized Gain (Loss) AOCI | (96,000) | (204,000) |
Interest expense recorded on these swap transactions | $ (105,000) | $ (65,000) |
Deposits - Summary of major cla
Deposits - Summary of major classifications of Interest-bearing deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits | ||
Noninterest-bearing deposits | $ 155,624 | $ 132,626 |
Interest-bearing checking | 37,305 | 32,601 |
Money Market | 23,103 | 19,077 |
Savings | 106,818 | 97,036 |
Time deposits, $100,000 or more | 24,624 | 28,270 |
Time deposits below $100,000 | 35,773 | 40,010 |
Total interest- bearing deposits | 227,623 | 216,994 |
Total Deposits | $ 383,247 | $ 349,620 |
Deposits - Summary of interest
Deposits - Summary of interest expense on deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits | ||
Interest-bearing checking | $ 11 | $ 9 |
Money Market | 11 | 9 |
Savings | 51 | 60 |
Time deposits, $100,000 or more | 248 | 440 |
Time deposits below $100,000 | 288 | 525 |
Total Interest Expense | $ 609 | $ 1,043 |
Deposits - Summary of maturitie
Deposits - Summary of maturities of time deposits (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Deposits | |
2022 | $ 32,541 |
2023 | 9,886 |
2024 | 8,802 |
2025 | 3,916 |
2026 | 4,323 |
2027 and thereafter | 929 |
Total Time Deposits | $ 60,397 |
Deposits (Detail)
Deposits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits | ||
Fee income from deposits | $ 0.2 | $ 0.2 |
Deposit balances of executive officers and directors and their affiliated interests | 2.2 | 2.8 |
Brokered deposits | $ 0 | $ 0 |
Income Taxes - Summary of compo
Income Taxes - Summary of components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax (benefit) expense: | ||
Federal | $ 211 | $ 89 |
State | 84 | 157 |
Total current tax expense | 295 | 246 |
Deferred income tax benefits: | ||
Federal | 198 | 217 |
State | 84 | 28 |
Total deferred tax expense | 282 | 245 |
Total income tax expense | $ 577 | $ 491 |
Income tax expense statutory rate | 21.00% | 21.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax expense computed at statutory rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Income tax expense at federal statutory rate | $ 650 | $ 453 |
(Decrease) increase resulting from: | ||
Tax-exempt income | (181) | (75) |
Bank owned life insurance | (33) | (33) |
State income taxes, net of Federal income tax benefit | 133 | 146 |
Other | 8 | |
Total income tax expense | $ 577 | $ 491 |
Income Taxes - Components of ne
Income Taxes - Components of net deferred income tax benefits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income tax benefits: | ||
Accrued deferred compensation | $ 84 | $ 78 |
Allowance for credit losses | 376 | 143 |
Accumulated depreciation | (22) | (16) |
Other real estate owned | 36 | |
Reserve for unfunded commitments | 102 | 9 |
Accounting standard 310-20 | (144) | (117) |
Right of use asset | (132) | (171) |
Lease liability | 132 | 171 |
Accumulated securities premium accretion | 228 | 214 |
Net unrealized depreciation on investment securities available for sale | 211 | |
Net unrealized depreciation on investment securities available for sale | (466) | |
Net unrealized loss on Swaps | 121 | 261 |
Net deferred income tax benefits | $ 956 | $ 142 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Income Tax Expense (Benefit) | $ 577 | $ 491 |
Pension and Profit Sharing Pl_2
Pension and Profit Sharing Plans (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension and Profit Sharing Plans | ||
Annual contributions included in employee benefit expense | $ 493,000 | $ 451,000 |
Other Benefit Plans (Detail)
Other Benefit Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Benefit Plans | ||
Cash value of life insurance contract | $ 8,300 | $ 8,200 |
Income on their insurance investment total | $ 157 | $ 158 |
Other Noninterest Expenses (Det
Other Noninterest Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Noninterest Expenses. | ||
Loan related expenses | $ 195 | $ 115 |
Other ATM expenses | 36 | 77 |
Director, executive and audit committee fees and expenses | 167 | 168 |
Postage, delivery and courier expenses | 70 | 39 |
Office supplies expenses | 35 | 54 |
Credit report fees | 38 | 32 |
Dues and subscription fees | 93 | 95 |
Examination and assessment fees | 48 | 58 |
Federal Reserve and correspondent bank services | 30 | 36 |
Foreclosed property expenses | 23 | 147 |
Liability insurance | 85 | 64 |
Release for unfunded commitments | (119) | (5) |
Card services | 114 | 54 |
NASDAQ registration | 56 | 43 |
Investor services | 43 | 42 |
Other | 195 | 203 |
Total Other Noninterest Expense | $ 1,109 | $ 1,222 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of outstanding loan commitments, unused lines of credit and letters of credit (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | $ 25,304 | $ 29,332 |
Other Mortgage Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | 2,863 | 2,229 |
Line Of Credit Home Equity [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | 9,224 | 8,672 |
Line Of Credit Commercial [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | 15,432 | 19,982 |
Line Of Credit Consumer Unsecured [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | 648 | 678 |
Letter Of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | $ 55 | $ 1,044 |
Commitments and Contingencies_2
Commitments and Contingencies (Detail) | Dec. 31, 2021USD ($) |
Commitments and Contingencies | |
Provision for financial receivable unfunded credit losses | $ 370,680 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2007 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders Equity [Line Items] | |||
Retained earnings from which dividends may not be paid without prior approval, total | $ 20.2 | $ 21.2 | |
Employee Stock Purchase | |||
Stockholders Equity [Line Items] | |||
Number of options issued or activity | 0 | ||
Employee eligibility period | 1 year | ||
Employees to buy stock under options granted | 85.00% | ||
Options are vested when granted and will expire no later than | 27 months | ||
Common stock, capital shares reserved for future issuance | 25,739 | ||
Dividend Reinvestment And Stock Purchase Plan [Member] | |||
Stockholders Equity [Line Items] | |||
Employees to buy stock under options granted | 95.00% | ||
Shares of common stock purchased | 11,841 | 14,566 | |
Common stock, capital shares reserved for future issuance | 64,697 | ||
Stockholder Purchase Plan [Member] | |||
Stockholders Equity [Line Items] | |||
Number of options issued or activity | 0 | ||
Options are vested when granted and will expire no later than | 3 months | ||
Common stock, capital shares reserved for future issuance | 183,348 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of capital comparison with minimum requirements (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 01, 2016 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Annual increase in capital (to risk weighted assets) for capital adequacy purposes ratio | 0.625% | ||
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Amount | $ 37,592 | $ 36,442 | |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Ratio | 15.32% | 13.09% | |
Common Equity Tier I Capital (to Risk Weighted Assets) For Capital Adequacy Purposes Actual Amount | $ 11,044 | $ 12,532 | |
Common Equity Tier I Capital (to Risk Weighted Assets) For Capital Adequacy Purposes Actual Ratio | 4.50% | 4.50% | |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Actual Amount | $ 15,952 | $ 18,101 | |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Actual Ratio | 6.50% | 6.50% | |
Total Capital (to Risk Weighted Assets) Actual Amount | $ 39,329 | $ 37,951 | |
Total Capital (to Risk Weighted Assets) Actual Ratio | 16.03 | 13.63 | |
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes Amount | $ 19,634 | $ 22,278 | |
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes Ratio | 8 | 8 | 0.625 |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 24,542 | $ 27,848 | |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10 | 10 | |
Tier I Capital (to Risk Weighted Assets) Actual Amount | $ 37,592 | $ 36,442 | |
Tier I Capital (to Risk Weighted Assets) Actual Ratio | 15.32 | 13.09 | |
Tier I Capital (to Risk Weighted Assets) For Capital Adequacy Purposes Amount | $ 14,725 | $ 16,709 | |
Tier I Capital (to Risk Weighted Assets) For Capital Adequacy Purposes Ratio | 6 | 6 | |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 19,634 | $ 22,278 | |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8 | 8 | |
Tier I Capital (to Average Assets) Actual Amount | $ 37,592 | $ 36,442 | |
Tier I Capital (to Average Assets) Actual Ratio | 8.40 | 9.12 | |
Tier I Capital (to Average Assets) For Capital Adequacy Purposes Amount | $ 17,910 | $ 15,980 | |
Tier I Capital (to Average Assets) For Capital Adequacy Purposes Ratio | 4 | 4 | |
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 22,388 | $ 19,975 | |
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5 | 5 | |
Minimum | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier I Capital (to Risk Weighted Assets) For Capital Adequacy Purposes Actual Ratio | 4.50% | ||
Total Capital (to Risk Weighted Assets) Actual Ratio | 8 | ||
Tier I Capital (to Risk Weighted Assets) Actual Ratio | 4 | ||
Tier I Capital (to Average Assets) Actual Ratio | 4 | ||
Maximum | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes Ratio | 2.5 | ||
Tier I Capital (to Risk Weighted Assets) Actual Ratio | 6 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic and diluted earnings per share: | ||||||||||
Net income | $ 555,000 | $ 888,000 | $ 479,000 | $ 594,000 | $ 547,000 | $ 949,000 | $ (96,000) | $ 268,000 | $ 2,516,387 | $ 1,667,741 |
Weighted average common shares outstanding (in shares) | 2,848,465 | 2,835,037 | ||||||||
Basic net income per share (in dollars per share) | $ 0.19 | $ 0.31 | $ 0.17 | $ 0.21 | $ 0.20 | $ 0.33 | $ (0.03) | $ 0.09 | $ 0.88 | $ 0.59 |
Options outstanding | 0 | 0 | 0 | 0 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets - Carrying Amount | ||
Cash and due from banks | $ 2,111 | $ 2,117 |
Interest-bearing deposits in other financial institutions | 56,434 | 29,730 |
Federal funds sold | 3,636 | 5,246 |
Investment securities available for sale | 155,927 | 114,049 |
Investments in restricted stock | 1,062 | 1,199 |
Ground rents | 131 | 140 |
Loans, less allowance for credit losses | 207,922 | 252,296 |
Accrued interest receivable | 1,085 | 1,302 |
Cash value of life insurance | 8,338 | 8,181 |
Financial liabilities - Carrying Amount | ||
Deposits | 383,247 | 349,620 |
Long-term borrowings | 10,000 | |
Short-term borrowings | 10,000 | 29,912 |
Accrued interest payable | 11 | 16 |
Unrecognized financial instruments: | ||
Commitments to extend credit | 28,167 | 31,561 |
Standby letters of credit | 55 | 1,044 |
Financial assets - Fair Value | ||
Cash and due from banks | 2,111 | 2,117 |
Interest-bearing deposits in other financial institutions | 56,434 | 29,730 |
Federal funds sold | 3,636 | 5,246 |
Investment securities available for sale, at fair value | 155,927 | 114,049 |
Investments in restricted stock | 1,062 | 1,199 |
Ground rents | 131 | 140 |
Loans, less allowance for credit losses | 211,541 | 253,946 |
Accrued interest receivable | 1,085 | 1,302 |
Cash value of life insurance | 8,338 | 8,181 |
Financial liabilities - Fair Value | ||
Deposits | 383,910 | 350,666 |
Long-term borrowings | 9,888 | |
Short-term borrowings | 10,000 | 29,935 |
Accrued interest payable | 11 | 16 |
Unrecognized financial instruments: | ||
Commitments to extend credit | 28,167 | 31,561 |
Standby letters of credit | $ 55 | $ 1,044 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Fair value hierarchy of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets - Carrying Amount | ||
Loans receivable, net | $ 207,922 | $ 252,296 |
Cash value of life insurance | 8,338 | 8,181 |
Financial liabilities - Carrying Amount | ||
Deposits | 383,247 | 349,620 |
Long-term debt | 10,000 | |
Short-term debt | 10,000 | 29,912 |
Financial assets - Fair Value | ||
Cash and cash equivalents | 62,181 | |
Loans receivable, net | 211,541 | 253,946 |
Cash value of life insurance | 8,338 | 8,181 |
Financial liabilities - Fair Value | ||
Deposits | 383,910 | 350,666 |
Long-term debt | 9,888 | |
Short-term debt | 10,000 | $ 29,935 |
Fair Value | Level 1 | ||
Financial assets - Fair Value | ||
Cash and cash equivalents | 62,181 | |
Financial liabilities - Fair Value | ||
Deposits | 227,580 | |
Fair Value | Level 2 | ||
Financial assets - Fair Value | ||
Cash value of life insurance | 8,338 | |
Financial liabilities - Fair Value | ||
Deposits | 156,330 | |
Short-term debt | 10,000 | |
Fair Value | Level 3 | ||
Financial assets - Fair Value | ||
Loans receivable, net | $ 211,541 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of fair value measurements on recurring and non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities available for sale | $ (155,927) | $ (114,049) |
OREO | 575 | |
Assets, fair value disclosure | 155,805 | 118,571 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets, fair value disclosure | 155,485 | 113,675 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets, fair value disclosure | 320 | 4,896 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities available for sale | (45,225) | (29,413) |
Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities available for sale | (56,189) | (26,948) |
Recurring | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities available for sale | (45,225) | (29,413) |
Recurring | Municipal securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities available for sale | (45,225) | (29,413) |
Recurring | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities available for sale | (109,228) | (84,636) |
Recurring | Agency mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities available for sale | (109,228) | (84,636) |
Recurring | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities available for sale | (442) | (949) |
Recurring | Interest rate swap | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities available for sale | (442) | (949) |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Maryland Financial Bank stock | 3 | 3 |
Impaired loans | 317 | 4,893 |
OREO | 575 | |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
OREO | 575 | |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Maryland Financial Bank stock | 3 | 3 |
Impaired loans | $ 317 | $ 4,893 |
Parent Company Financial Info_3
Parent Company Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | |||
Other assets | $ 383 | $ 362 | |
Total Assets | 442,066 | 419,486 | |
Liabilities and Stockholders' Equity | |||
Total Liabilities | 406,350 | 382,393 | |
STOCKHOLDERS' EQUITY | |||
Common stock | 2,854 | 2,842 | |
Surplus | 10,759 | 10,640 | |
Retained earnings | 22,977 | 23,071 | |
Accumulated other comprehensive income (loss), net of benefits | (874) | 540 | |
Total Stockholders' Equity | 35,716 | 37,093 | $ 35,680 |
Total Liabilities and Stockholders' Equity | 442,066 | 419,486 | |
Glen Burnie Bancorp | |||
ASSETS | |||
Cash and cash equivalents | 99 | 111 | $ 43 |
Investment in The Bank of Glen Burnie | 35,614 | 36,982 | |
Other assets | 3 | ||
Total Assets | 35,716 | 37,093 | |
STOCKHOLDERS' EQUITY | |||
Common stock | 2,854 | 2,842 | |
Surplus | 10,759 | 10,640 | |
Retained earnings | 22,977 | 23,071 | |
Accumulated other comprehensive income (loss), net of benefits | (874) | 540 | |
Total Stockholders' Equity | 35,716 | 37,093 | |
Total Liabilities and Stockholders' Equity | $ 35,716 | $ 37,093 |
Parent Company Financial Info_4
Parent Company Financial Information - Condensed Income Statement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||||||||||
Other expenses | $ (10,952,000) | $ (11,696,000) | ||||||||
Income before income tax benefit and equity in undistributed net income of subsidiaries | $ 693,000 | $ 1,131,000 | $ 570,000 | $ 699,000 | $ 712,000 | $ 1,232,000 | $ (128,000) | $ 343,000 | 3,093,000 | 2,159,000 |
Income tax benefit | (577,000) | (491,000) | ||||||||
NET INCOME | $ 555,000 | $ 888,000 | $ 479,000 | $ 594,000 | $ 547,000 | $ 949,000 | $ (96,000) | $ 268,000 | 2,516,387 | 1,667,741 |
Glen Burnie Bancorp | ||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||
Dividends and distributions from subsidiaries | 1,200,000 | 1,265,000 | ||||||||
Other expenses | (245,000) | (236,000) | ||||||||
Income before income tax benefit and equity in undistributed net income of subsidiaries | 955,000 | 1,029,000 | ||||||||
Income tax benefit | 44,000 | 43,000 | ||||||||
Change in undistributed equity of subsidiaries | 1,517,000 | 596,000 | ||||||||
NET INCOME | $ 2,516,000 | $ 1,668,000 |
Parent Company Financial Info_5
Parent Company Financial Information - Condensed Cash Flow Statement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||||||||||
Net income | $ 555,000 | $ 888,000 | $ 479,000 | $ 594,000 | $ 547,000 | $ 949,000 | $ (96,000) | $ 268,000 | $ 2,516,387 | $ 1,667,741 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
(Increase) decrease in other assets | (18,000) | 798,000 | ||||||||
Net cash provided by operating activities | 3,656,000 | 1,602,000 | ||||||||
Cash flows from financing activities: | ||||||||||
Dividends paid | (1,138,000) | (1,134,000) | ||||||||
Net cash used in financing activities | 22,707,000 | 32,089,000 | ||||||||
Net increase (decrease) in cash and cash equivalents | 25,088,000 | 23,803,000 | ||||||||
Glen Burnie Bancorp | ||||||||||
Cash flows from operating activities: | ||||||||||
Net income | 2,516,000 | 1,668,000 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
(Increase) decrease in other assets | (3,000) | |||||||||
Change in undistributed equity of subsidiary | (1,517,000) | (596,000) | ||||||||
Net cash provided by operating activities | 996,000 | 1,072,000 | ||||||||
Cash flows from financing activities: | ||||||||||
Proceeds from dividend reinvestment plan | 130,000 | 130,000 | ||||||||
Dividends paid | (1,138,000) | (1,134,000) | ||||||||
Net cash used in financing activities | (1,008,000) | (1,004,000) | ||||||||
Net increase (decrease) in cash and cash equivalents | (12,000) | 68,000 | ||||||||
Cash and cash equivalents at beginning of year | $ 111,000 | $ 43,000 | 111,000 | 43,000 | ||||||
Cash and cash equivalents at end of year | $ 99,000 | $ 111,000 | $ 99,000 | $ 111,000 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Results of Operations (Unaudited) | ||||||||||
Interest income | $ 3,461,000 | $ 3,605,000 | $ 3,290,000 | $ 3,161,000 | $ 3,485,000 | $ 3,349,000 | $ 3,336,000 | $ 3,499,000 | $ 13,517,000 | $ 13,669,000 |
Interest expense | 251,000 | 265,000 | 274,000 | 284,000 | 313,000 | 353,000 | 398,000 | 451,000 | 1,074,000 | 1,515,000 |
Net interest income | 3,210,000 | 3,340,000 | 3,016,000 | 2,877,000 | 3,172,000 | 2,996,000 | 2,938,000 | 3,048,000 | 12,443,000 | 12,154,000 |
Provision for credit losses | (382,000) | (122,000) | (67,000) | (404,000) | (427,000) | (669,000) | 487,000 | (80,000) | (975,000) | (689,000) |
Net securities gains | (589,000) | 1,000 | 6,000 | (588,000) | 6,000 | |||||
Income before income taxes | 693,000 | 1,131,000 | 570,000 | 699,000 | 712,000 | 1,232,000 | (128,000) | 343,000 | 3,093,000 | 2,159,000 |
Net income | $ 555,000 | $ 888,000 | $ 479,000 | $ 594,000 | $ 547,000 | $ 949,000 | $ (96,000) | $ 268,000 | $ 2,516,387 | $ 1,667,741 |
Net income per share (basic) | $ 0.19 | $ 0.31 | $ 0.17 | $ 0.21 | $ 0.20 | $ 0.33 | $ (0.03) | $ 0.09 | $ 0.88 | $ 0.59 |
Net income per share (diluted) | $ 0.19 | $ 0.31 | $ 0.17 | $ 0.21 | $ 0.20 | $ 0.33 | $ (0.03) | $ 0.09 | $ 0.88 | $ 0.59 |