Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 001-39043 | |
Entity Registrant Name | BROADWAY FINANCIAL CORPORATION | |
Entity Central Index Key | 0001001171 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4547287 | |
Entity Address, Address Line One | 4601 Wilshire Boulevard, Suite 150 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90010 | |
City Area Code | 323 | |
Local Phone Number | 634-1700 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BYFC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Voting Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 48,026,435 | |
Class B Non-Voting Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,404,618 | |
Class C Non-Voting Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,689,775 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and due from banks | $ 37,919 | $ 38,418 |
Interest-bearing deposits in other banks | 242,218 | 193,102 |
Cash and cash equivalents | 280,137 | 231,520 |
Securities available-for-sale, at fair value | 238,298 | 156,396 |
Loans receivable held for investment, net of allowance of $2,962 and $3,391 | 646,868 | 648,513 |
Accrued interest receivable | 2,694 | 3,372 |
Federal Home Loan Bank (FHLB) stock | 1,470 | 2,573 |
Federal Reserve Bank (FRB) stock | 693 | 693 |
Office properties and equipment, net | 10,354 | 10,344 |
Bank owned life insurance | 3,211 | 3,190 |
Deferred tax assets, net | 9,012 | 6,101 |
Core deposit intangible, net | 2,719 | 2,936 |
Goodwill | 25,858 | 25,996 |
Other assets | 2,910 | 1,871 |
Total assets | 1,224,224 | 1,093,505 |
Liabilities: | ||
Deposits | 816,177 | 788,052 |
Securities sold under agreements to repurchase | 67,292 | 51,960 |
FHLB advances | 32,932 | 85,952 |
Notes payable | 14,000 | 14,000 |
Accrued expenses and other liabilities | 9,066 | 12,441 |
Total liabilities | 939,467 | 952,405 |
Additional paid-in capital | 143,427 | 140,289 |
Retained earnings | 6,470 | 3,673 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (797) | (829) |
Accumulated other comprehensive loss, net of tax | (9,901) | (551) |
Treasury stock-at cost, 2,617,826 shares at June 30, 2022 and at December 31, 2021 | (5,326) | (5,326) |
Total Broadway Financial Corporation and Subsidiary stockholders' equity | 284,634 | 141,000 |
Non-controlling interest | 123 | 100 |
Total liabilities and stockholders' equity | 1,224,224 | 1,093,505 |
Cumulative Redeemable Perpetual Preferred Stock, Series A [Member] | ||
Liabilities: | ||
Preferred stock | 0 | 3,000 |
Non-Cumulative Redeemable Perpetual Preferred Stock, Series C [Member] | ||
Liabilities: | ||
Preferred stock | 150,000 | 0 |
Class A Voting Common Stock [Member] | ||
Liabilities: | ||
Common stock | 504 | 463 |
Class B Non-Voting Common Stock [Member] | ||
Liabilities: | ||
Common stock | 114 | 114 |
Class C Non-Voting Common Stock [Member] | ||
Liabilities: | ||
Common stock | $ 143 | $ 167 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets [Abstract] | ||
Allowance for loan losses | $ 2,962 | $ 3,391 |
Stockholders' Equity: | ||
Treasury stock, shares (in shares) | 2,617,826 | 2,617,826 |
Cumulative Redeemable Perpetual Preferred Stock, Series A [Member] | ||
Stockholders' Equity: | ||
Preferred stock, shares authorized (in shares) | 3,000 | 3,000 |
Preferred stock, shares issued (in shares) | 0 | 3,000 |
Preferred stock, shares outstanding (in shares) | 0 | 3,000 |
Preferred stock, liquidation value (in dollars per share) | $ 1,000 | $ 1,000 |
Non-Cumulative Redeemable Perpetual Preferred Stock, Series C [Member] | ||
Stockholders' Equity: | ||
Preferred stock, shares authorized (in shares) | 150,000 | 0 |
Preferred stock, shares issued (in shares) | 150,000 | 0 |
Preferred stock, shares outstanding (in shares) | 150,000 | 0 |
Preferred stock, liquidation value (in dollars per share) | $ 1,000 | $ 1,000 |
Class A Voting Common Stock [Member] | ||
Stockholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 50,438,555 | 46,291,852 |
Common stock, shares outstanding (in shares) | 47,820,729 | 43,674,026 |
Class B Non-Voting Common Stock [Member] | ||
Stockholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 11,404,618 | 11,404,618 |
Common stock, shares outstanding (in shares) | 11,404,618 | 11,404,618 |
Class C Non-Voting Common Stock [Member] | ||
Stockholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 14,258,735 | 16,689,775 |
Common stock, shares outstanding (in shares) | 14,258,735 | 16,689,775 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income: | ||||
Interest and fees on loans receivable | $ 6,879 | $ 6,300 | $ 14,083 | $ 9,944 |
Interest on available-for-sale securities | 834 | 440 | 1,425 | 496 |
Other interest income | 788 | 144 | 872 | 221 |
Total interest income | 8,501 | 6,884 | 16,380 | 10,661 |
Interest expense: | ||||
Interest on deposits | 349 | 477 | 699 | 860 |
Interest on borrowings | 114 | 586 | 471 | 1,135 |
Total interest expense | 463 | 1,063 | 1,170 | 1,995 |
Net interest income | 8,038 | 5,821 | 15,210 | 8,666 |
Loan loss provision (recapture) | (577) | 81 | (429) | 81 |
Net interest income after loan loss provision (recapture) | 8,615 | 5,740 | 15,639 | 8,585 |
Non-Interest Income: | ||||
Service charges | 21 | 36 | 85 | 129 |
CDFI Grant | 0 | 1,826 | 0 | 1,826 |
Other | 240 | 330 | 457 | 360 |
Total non-interest income | 261 | 2,192 | 542 | 2,315 |
Non-Interest Expense: | ||||
Compensation and benefits | 3,307 | 2,819 | 6,926 | 8,209 |
Occupancy expense | 400 | 627 | 842 | 935 |
Information services | 767 | 566 | 1,632 | 807 |
Professional services | 958 | 513 | 1,322 | 2,452 |
Supervisory costs | 62 | 177 | 115 | 247 |
Office services and supplies | 100 | 59 | 257 | 154 |
Corporate insurance | 54 | 8 | 115 | 254 |
Amortization of core deposit intangible | 108 | 131 | 217 | 131 |
Other | 510 | 474 | 800 | 812 |
Total non-interest expense | 6,266 | 5,374 | 12,226 | 14,001 |
Income (loss) before income taxes | 2,610 | 2,558 | 3,955 | (3,101) |
Income tax expense (benefit) | 757 | 1,824 | 1,120 | (348) |
Net income (loss) | 1,853 | 734 | 2,835 | (2,753) |
Less: Net income (loss) attributable to non-controlling interest | (1) | 33 | 23 | 33 |
Net income (loss) attributable to Broadway Financial Corporation | 1,854 | 701 | 2,812 | (2,786) |
Other comprehensive income, net of tax: | ||||
Unrealized gains (losses) on securities available-for-sale arising during the period | (5,178) | 1,022 | (13,332) | 864 |
Income tax (benefit) expense | (1,675) | 290 | (3,982) | 243 |
Other comprehensive income (loss), net of tax | (3,503) | 732 | (9,350) | 621 |
Comprehensive income (loss) | $ (1,649) | $ 1,433 | $ (6,538) | $ (2,165) |
Earnings (loss) per common share-basic (in dollars per share) | $ 0.03 | $ 0.01 | $ 0.04 | $ (0.06) |
Earnings (loss) per common share-diluted (in dollars per share) | $ 0.03 | $ 0.01 | $ 0.04 | $ (0.06) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,835 | $ (2,753) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Loan loss (recapture) provision | (429) | 81 |
Depreciation | 573 | 345 |
Net change in amortization of deferred loan origination costs | (376) | 964 |
Net amortization of premiums on available-for-sale securities | 192 | 231 |
Amortization of investment in affordable housing limited partnership | 0 | 26 |
Amortization of purchase accounting marks on loans | (990) | 0 |
Amortization of core deposit intangible | 217 | 131 |
Accretion of premium on FHLB advances | (20) | (7) |
Valuation allowance on deferred tax asset | 0 | 370 |
ESOP compensation expense | 45 | 47 |
Change in deferred taxes on goodwill | 138 | 0 |
Earnings on bank owned life insurance | (21) | (21) |
Change in assets and liabilities: | ||
Net change in deferred taxes | 1,071 | (1,210) |
Net change in accrued interest receivable | 678 | 267 |
Net change in other assets | (1,039) | (1,118) |
Net change in accrued expenses and other liabilities | (3,375) | (137) |
Net cash used in operating activities | (359) | (2,570) |
Cash flows from investing activities: | ||
Cash acquired in merger | 0 | 84,745 |
Net change in loans receivable held for investment | 3,440 | (29,749) |
Principal payments on available-for-sale securities | 9,231 | 6,547 |
Purchase of available-for-sale securities | (104,657) | (4,073) |
Purchase of FHLB stock | (328) | (152) |
Proceeds from redemption of FHLB stock | 1,431 | 1,055 |
Purchase of office properties and equipment | (583) | (56) |
Proceeds from disposals of office properties and equipment | 0 | 45 |
Net cash (used in) provided by investing activities | (91,466) | 58,362 |
Cash flows from financing activities: | ||
Net change in deposits | 28,125 | 35,690 |
Net increase in securities sold under agreements to repurchase | 15,332 | 10,613 |
Proceeds from sale of stock (net of costs) | 0 | 30,837 |
Proceeds from issuance of preferred stock | 150,000 | 0 |
Dividends paid on preferred stock | (15) | 0 |
Distributions to non-controlling interest | 0 | (165) |
Proceeds from FHLB advances | 0 | 5,000 |
Repayments of FHLB advances | (53,000) | (22,535) |
Stock cancelled for income tax withholding | 0 | (448) |
Repayments of junior subordinated debentures | 0 | (510) |
Net cash provided by financing activities | 140,442 | 58,482 |
Net change in cash and cash equivalents | 48,617 | 114,274 |
Cash and cash equivalents at beginning of the period | 231,520 | 96,109 |
Cash and cash equivalents at end of the period | 280,137 | 210,383 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 1,378 | 1,803 |
Cash paid for income taxes | 0 | 429 |
Assets acquired (liabilities assumed) in acquisition: | ||
Securities available-for-sale, at fair value | 0 | 149,975 |
Loans receivable | 0 | 225,885 |
Accrued interest receivable | 0 | 1,637 |
FHLB and FRB stock | 0 | 1,061 |
Office property and equipment | 0 | 6,953 |
Goodwill | 0 | 25,966 |
Core deposit intangible | 0 | 3,329 |
Other assets | 0 | 2,290 |
Deposits | 0 | (353,722) |
FHLB advances | 0 | (3,166) |
Securities sold under agreements to repurchase | 0 | (59,945) |
Other borrowings | 0 | (14,000) |
Deferred taxes | 0 | (717) |
Accrued expenses and other liabilities | 0 | (4,063) |
Preferred Stock [Member] | ||
Assets acquired (liabilities assumed) in acquisition: | ||
Issuance of stock | 0 | (3,000) |
Common Stock [Member] | ||
Assets acquired (liabilities assumed) in acquisition: | ||
Issuance of stock | 0 | (63,257) |
Directors [Member] | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Stock-based compensation expense | 84 | 45 |
Employees, Excluding Directors [Member] | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Stock-based compensation expense | $ 58 | $ 169 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] Preferred Stock Non-Voting [Member] | Common Stock [Member] Common Stock Voting [Member] | Common Stock [Member] Common Stock Non-Voting [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Unearned ESOP Shares [Member] | Treasury Stock [Member] | Non-controlling Interest [Member] | Total |
Balance at Dec. 31, 2020 | $ 0 | $ 219 | $ 87 | $ 46,851 | $ 164 | $ 7,783 | $ (893) | $ (5,326) | $ 0 | $ 48,885 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 0 | 0 | 0 | 0 | 0 | (2,786) | 0 | 0 | 33 | (2,753) |
Preferred shares issued in business combination | 3,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,000 |
Common shares issued in business combination | 0 | 140 | 114 | 62,839 | 0 | 0 | 0 | 0 | 164 | 63,257 |
Shares transferred from voting to non-voting after business combination | 0 | (7) | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Common shares issued in private placement | 0 | 112 | 73 | 30,652 | 0 | 0 | 0 | 0 | 0 | 30,837 |
Release of unearned ESOP shares | 0 | 0 | 0 | 15 | 0 | 0 | 32 | 0 | 0 | 47 |
Restricted stock compensation expense | 0 | 0 | 0 | 162 | 0 | 0 | 0 | 0 | 0 | 162 |
Stock awarded to directors | 0 | 0 | 0 | 45 | 0 | 0 | 0 | 0 | 0 | 45 |
Stock option compensation expense | 0 | 0 | 0 | 7 | 0 | 0 | 0 | 0 | 0 | 7 |
Common stock cancelled for payment of tax withholding | 0 | (2) | 0 | (446) | 0 | 0 | 0 | 0 | 0 | (448) |
Payment to non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (165) | (165) |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 621 | 0 | 0 | 0 | 0 | 621 |
Balance at Jun. 30, 2021 | 3,000 | 462 | 281 | 140,125 | 785 | 4,997 | (861) | (5,326) | 32 | 143,495 |
Balance at Mar. 31, 2021 | 0 | 218 | 87 | 46,625 | 53 | 4,296 | (877) | (5,326) | 0 | 45,076 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 0 | 0 | 0 | 0 | 0 | 701 | 0 | 0 | 33 | 734 |
Preferred shares issued in business combination | 3,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,000 |
Common shares issued in business combination | 0 | 140 | 114 | 62,839 | 0 | 0 | 0 | 0 | 164 | 63,257 |
Shares transferred from voting to non-voting after business combination | 0 | (7) | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Common shares issued in private placement | 0 | 112 | 73 | 30,652 | 0 | 0 | 0 | 0 | 0 | 30,837 |
Release of unearned ESOP shares | 0 | 0 | 0 | 9 | 0 | 0 | 16 | 0 | 0 | 25 |
Common stock cancelled for payment of tax withholding | 0 | (1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1) |
Payment to non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (165) | (165) |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 732 | 0 | 0 | 0 | 0 | 732 |
Balance at Jun. 30, 2021 | 3,000 | 462 | 281 | 140,125 | 785 | 4,997 | (861) | (5,326) | 32 | 143,495 |
Balance at Dec. 31, 2021 | 3,000 | 463 | 281 | 140,289 | (551) | 3,673 | (829) | (5,326) | 100 | 141,100 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 0 | 0 | 0 | 0 | 0 | 2,812 | 0 | 0 | 23 | 2,835 |
Preferred shares issued | 150,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 150,000 |
Release of unearned ESOP shares | 0 | 0 | 0 | 13 | 0 | 0 | 32 | 0 | 0 | 45 |
Restricted stock compensation expense | 0 | 5 | 0 | 53 | 0 | 0 | 0 | 0 | 0 | 58 |
Stock awarded to directors | 0 | 0 | 0 | 84 | 0 | 0 | 0 | 0 | 0 | 84 |
Conversion of preferred shares to common shares | (3,000) | 12 | 0 | 2,988 | 0 | 0 | 0 | 0 | 0 | 0 |
Conversion of non-voting shares into voting shares | 0 | 24 | (24) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Dividends paid on preferred stock | 0 | 0 | 0 | 0 | 0 | (15) | 0 | 0 | 0 | (15) |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | (9,350) | 0 | 0 | 0 | 0 | (9,350) |
Balance at Jun. 30, 2022 | 150,000 | 504 | 257 | 143,427 | (9,901) | 6,470 | (797) | (5,326) | 123 | 284,757 |
Balance at Mar. 31, 2022 | 0 | 489 | 272 | 143,373 | (6,398) | 4,616 | (813) | (5,326) | 124 | 136,337 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 0 | 0 | 0 | 0 | 0 | 1,854 | 0 | 0 | (1) | 1,853 |
Preferred shares issued | 150,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 150,000 |
Release of unearned ESOP shares | 0 | 0 | 0 | 11 | 0 | 0 | 16 | 0 | 0 | 27 |
Restricted stock compensation expense | 0 | 0 | 0 | 43 | 0 | 0 | 0 | 0 | 0 | 43 |
Conversion of non-voting shares into voting shares | 0 | 15 | (15) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | (3,503) | 0 | 0 | 0 | 0 | (3,503) |
Balance at Jun. 30, 2022 | $ 150,000 | $ 504 | $ 257 | $ 143,427 | $ (9,901) | $ 6,470 | $ (797) | $ (5,326) | $ 123 | $ 284,757 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Basis of Financial Statement Presentation [Abstract] | |
Basis of Financial Statement Presentation | NOTE (1) – Basis of Financial Statement Presentation The accompanying unaudited consolidated financial statements include Broadway Financial Corporation (the “Company”) and its wholly owned subsidiary, City First Bank, National Association (the “Bank” and, together with the Company, “City First Broadway”). Also included in the unaudited consolidated financial statements are the following subsidiaries of City First Bank: 1432 U Street LLC, Broadway Service Corporation, City First Real Estate LLC, City First Real Estate II LLC, City First Real Estate III LLC, City First Real Estate IV LLC, and CF New Markets Advisors, LLC (“CFNMA”). In addition, CFNMA also consolidates CFC Fund Manager II, LLC; City First New Markets Fund II, LLC; City First Capital IX, LLC; and City First Capital 45, LLC (“CFC 45”) into its financial results. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”) and, accordingly, should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Subsequent events have been evaluated through August 15, 2022, which is the date these financial statements were issued. Except as discussed below, our accounting policies are described in Note 1 – Summary of Significant Accounting Policies of our audited consolidated financial statements included in the 2021 Form 10-K. Accounting Pronouncements Yet to Be Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. For debt securities with other-than-temporary impairment, the guidance will be applied prospectively. Existing purchase credit impaired (“PCI”) assets will be grandfathered and classified as purchased credit deteriorated (“PCD”) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB voted to affirm the proposed amended effective date for ASU 2016-13 for smaller reporting companies (“SRCs”) as defined by the SEC. The final ASU, which was issued in November 2019, delays the implementation date for ASU 2016-13 to fiscal years beginning after December 15, 2022. SRCs are defined as companies with less than $250 million of public float or less than $100 million in annual revenues for the previous year and no public float or public float of less than $700 million. The Company qualifies as an SRC, and management will implement ASU 2016-13 in the first quarter of 2023. The Company has selected a vendor model, formed an implementation committee and is in the process of refining the model. The estimated financial impact has not yet been determined. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This ASU clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. The amendments to Topic 326 have the same effective dates as ASU 2016-13. This guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief. This ASU allows entities to irrevocably elect the fair value option on an instrument-by-instrument basis for eligible financial assets measured at amortized cost basis upon adoption of the credit loss standards. The effective date for this ASU is the same as for ASU 2016-13. Management will evaluate this ASU in conjunction with ASU 2016-13 to determine whether the fair value option will be elected for any eligible financial assets. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This new accounting standard pertains to eliminating certain existing accounting guidance for troubled debt restructurings (“TDRs”) by creditors and adding additional disclosures related to the nature and characteristics of modifications of loans to borrowers experiencing financial difficulties and vintage disclosures for gross write-offs. The amendments to Topic 326 have the same effective dates as ASU 2016-13. This guidance is not expected to have a significant impact on the Company’s consolidated financial statements. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination [Abstract] | |
Business Combination | NOTE (2) – Business Combination The Company completed its merger with CFBanc Corporation (“CFBanc”) on April 1, 2021, with the Company continuing as the surviving entity (the “CFBanc Merger”). Immediately following this merger, Broadway Federal Bank, f.s.b., a subsidiary of Broadway Financial Corporation, merged with and into City First Bank of D.C., National Association, with City First Bank of D.C., National Association continuing as the surviving entity (which concurrently changed its name to City First Bank, National Association). As of the acquisition date, CFBanc had $471.0 million in total assets, $227.7 million in gross loans, and $353.7 million of total deposits. On April 1, 2021, (1) each share of CFBanc’s Class A Common Stock, par value $0.50 per share, and Class B Common Stock, par value $0.50 per share, issued and outstanding immediately prior to the CFBanc Merger was converted into 13.626 validly issued, fully paid and nonassessable shares, respectively, of the voting common stock of the Company, par value $0.01 per share, which were renamed Class A Common Stock, and a new class of non-voting common stock of the Company, par value $0.01 per share, which was named Class B Common Stock, and (2) each share of Fixed Rate Cumulative Redeemable Perpetual Preferred Stock, Series B, par value $0.50 per share, of CFBanc (“CFBanc Corporation Preferred Stock”) issued and outstanding immediately prior to the effective time of the CFBanc Merger was converted into one validly issued, fully paid and non-assessable share of a new series of preferred stock of the Company, which was designated as the Company’s Fixed Rate Cumulative Redeemable Perpetual Preferred Stock, Series A, with such rights, preferences, privileges and voting powers, and limitations and restrictions thereof, which taken as a whole, are not materially less favorable to the holders of CFBanc Corporation Preferred Stock than the rights, preferences, privileges and voting powers, and limitations and restrictions thereof of CFBanc Corporation Preferred Stock. The total value of the consideration transferred to CFBanc shareholders was approximately $66.3 million, which was based on the closing price of the Company’s common stock on March 31, 2021, the last trading day prior to the consummation of the merger. The Company accounted for the CFBanc Merger under the acquisition method of accounting which requires purchased assets and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value of the acquired assets and assumed liabilities with the assistance of third-party valuation firms. Goodwill in the amount of $26.0 million was recognized in the CFBanc Merger. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies expected to be derived from the combination of the two entities. Goodwill is not amortized for financial reporting purposes; rather, it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, by comparing its carrying value to the reporting unit’s fair value. Goodwill recognized in this transaction is not deductible for income tax purposes. The following table represents the assets acquired and liabilities assumed in the CFBanc Merger as of April 1, 2021, and the fair value adjustments and amounts recorded by the Company as of the same date under the acquisition method of accounting: CFBanc Book Value Fair Value Adjustments Fair Value Assets acquired (In thousands) Cash and cash equivalents $ 84,745 $ - $ 84,745 Securities available-for-sale 150,052 (77 ) 149,975 Loans receivable held for investment: Gross loans receivable held for investment 227,669 (1,784 ) 225,885 Deferred fees and costs (315 ) 315 - Allowance for loan losses (2,178 ) 2,178 - 225,176 709 225,885 Accrued interest receivable 1,637 - 1,637 FHLB and FRB stock 1,061 - 1,061 Office properties and equipment 5,152 1,801 6,953 Deferred tax assets, net 890 (1,608 ) (718 ) Core deposit intangible - 3,329 3,329 Other assets 2,290 - 2,290 Total assets $ 471,003 $ 4,154 $ 475,157 Liabilities assumed Deposits $ 353,671 $ 51 $ 353,722 Securities sold under agreements to repurchase 59,945 - 59,945 FHLB advances 3,057 109 3,166 Notes payable 14,000 - 14,000 Accrued expenses and other liabilities 4,063 - 4,063 Total liabilities $ 434,736 $ 160 $ 434,896 Excess of assets acquired over liabilities assumed $ 36,267 $ 3,994 $ 40,261 Consideration paid $ 66,257 Goodwill recognized $ 25,996 The contractual amounts due, expected cash flows to be collected, the interest component, and the fair value of loans acquired from CFBanc as of the acquisition date were as follows (in thousands): Contractual amounts due $ 231,432 Cash flows not expected to be collected (3,666 ) Expected cash flows 227,766 Interest component of expected cash flows (1,881 ) Fair value of acquired loans $ 225,885 A component of total loans acquired from CFBanc were loans that were considered to be purchased credit impaired loans (“PCI loans”). Refer to Note 5 for additional information regarding PCI loans. The following table presents the amounts that comprise the fair value of PCI loans (in thousands): Contractual amounts due $ 1,825 Nonaccretable difference (cash flows not expected to be collected) (634 ) Expected cash flows 1,191 Accretable yield (346 ) Fair value of acquired loans $ 845 In accordance with generally accepted accounting principles, there was no carryover of the allowance for loan losses that had been previously recorded on loans by CFBanc. The following table presents the net interest income, net income, and earnings per share as if the CFBanc Merger was effective as of January 1, 2021. The unaudited pro forma financial information included in the table below is based on various estimates and is presented for informational purposes only and does not indicate the financial condition or results of operations of the combined Company that would have been achieved for the periods presented had the transactions been completed as of the date indicated or that may be achieved in the future. Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 (Dollars in thousands except per share amounts) Net interest income $ 5,828 $ 11,018 Net income (loss) 708 (3,576 ) Basic earnings per share $ 0.01 $ (0.05 ) Diluted earnings per share $ 0.01 $ (0.05 ) |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share of Common Stock [Abstract] | |
Earnings Per Share of Common Stock | NOTE (3) – Earnings Per Share of Common Stock Basic earnings per share of common stock is computed pursuant to the two-class method by dividing net income available to common stockholders less dividends paid on participating securities (unvested shares of restricted common stock) and any undistributed earnings attributable to participating securities by the weighted average common shares outstanding during the period. The weighted average common shares outstanding includes the weighted average number of shares of common stock outstanding less the weighted average number of unvested shares of restricted common stock. ESOP shares are considered outstanding for this calculation unless unearned. Diluted earnings per share of common stock includes the dilutive effect of unvested stock awards and additional potential common shares issuable under stock options. The following table shows how the Company computed basic and diluted earnings (loss) per share of common stock for the periods indicated: For the three months ended June 30, For the six months ended June 30, 2022 2021 2022 2021 (Dollars in thousands, except per share) Net income (loss) $ 1,854 $ 701 $ 2,812 $ (2,786 ) Less net income (loss) attributable to participating securities 12 - 18 - Income (loss) available to common stockholders $ 1,842 $ 701 $ 2,794 $ (2,786 ) Weighted average common shares outstanding for basic earnings (loss) per common share 72,527,974 70,163,639 72,292,735 48,873,496 Add: dilutive effects of unvested restricted stock awards 461,047 140,247 467,890 - Add: dilutive effects of assumed exercise of stock options - - 7,982 - Weighted average common shares outstanding for diluted earnings (loss) per common share 72,989,021 70,303,886 72,768,607 48,873,496 Earnings (loss) per common share - basic $ 0.03 $ 0.01 $ 0.04 $ (0.06 ) Earnings (loss) per common share - diluted $ 0.03 $ 0.01 $ 0.04 $ (0.06 ) |
Securities
Securities | 6 Months Ended |
Jun. 30, 2022 | |
Securities [Abstract] | |
Securities | NOTE (4) – Securities The following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios as of the dates indicated and the corresponding amounts of unrealized gains and losses which were recognized in accumulated other comprehensive income (loss): Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) June 30, 2022: Federal agency mortgage-backed securities $ 90,453 $ 13 $ (7,364 ) $ 83,102 Federal agency collateralized mortgage obligations (“CMO”) 27,385 79 (644 ) 26,820 Federal agency debt 51,598 47 (2,771 ) 48,874 Municipal bonds 4,882 - (543 ) 4,339 U.S. Treasuries 62,656 63 (1,539 ) 61,180 SBA pools 15,189 25 (1,231 ) 13,983 Total available-for-sale securities $ 252,163 $ 227 $ (14,092 ) $ 238,298 December 31, 2021: Federal agency mortgage-backed securities $ 70,078 $ 196 $ (244 ) $ 70,030 Federal agency CMOs 9,391 11 (115 ) 9,287 Federal agency debt 38,152 106 (270 ) 37,988 Municipal bonds 4,898 40 (23 ) 4,915 U.S. Treasuries 18,169 - (218 ) 17,951 SBA pools 16,241 122 (138 ) 16,225 Total available-for-sale securities $ 156,929 $ 475 $ (1,008 ) $ 156,396 The Bank held 175 securities with unrealized losses of $ million at June 30, 2022. Thirty-one, 31, of these securities had aggregate unrealized losses of $200 thousand and been in a loss position for greater than one year. The Bank’s securities were primarily issued by the federal government or its agencies. The unrealized gains or losses on our available-for-sale securities as of June 30, 2022, were primarily caused by movements in market interest rates subsequent to the purchase of such securities. The Bank held 129 securities with unrealized losses of $1.0 at December 31, 2021. None of these securities has been in a loss position for greater than one year. The Bank’s securities were primarily issued by the federal government or its agencies. The unrealized gains or losses on our available-for-sale securities at December 31, 2021 were primarily caused by movements in market interest rates subsequent to the purchase of such securities. Securities with a market value of $ million were pledged as collateral for securities sold under agreements to repurchase as of June 30, 2022, and included $ million of U.S. Government Agency securities, $ million of mortgage-backed securities, $6.2 million of SBA pool securities and $3.8 million were no securities pledged to secure public deposits at June 30, 2022 or December 31, 2021. At June 30, 2022, and December 31, 2021, there were no holdings of securities by any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. The amortized cost and estimated fair value of all investment securities available-for-sale at June 30, 2022, by contractual maturities are shown below. Contractual maturities may differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Due in one year or less $ 1,005 $ - $ (5 ) $ 1,000 Due after one year through five years 103,542 63 (3,393 ) 100,212 Due after five years through ten years 40,021 55 (2,173 ) 37,903 Due after ten years (1) 107,595 109 (8,521 ) 99,183 $ 252,163 $ 227 $ (14,092 ) $ 238,298 (1) Mortgage-backed securities, collateralized mortgage obligations and SBA pools do not have a single stated maturity date and therefore have been included in the “Due after ten years” category. At June 30, 2022 and December 31, 2021, there were no holdings of securities by any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. |
Loans Receivable Held for Inves
Loans Receivable Held for Investment | 6 Months Ended |
Jun. 30, 2022 | |
Loans Receivable Held for Investment [Abstract] | |
Loans Receivable Held for Investment | NOTE (5) – Loans Receivable Held for Investment Loans receivable held for investment were as follows as of the dates indicated: June 30, 2022 December 31, 2021 (In thousands) Real estate: Single family $ 32,597 $ 45,372 Multi-family 405,140 393,704 Commercial real estate 85,156 93,193 Church 20,626 22,503 Construction 36,168 32,072 Commercial – other 64,591 46,539 SBA loans (1) 4,451 18,837 Consumer 51 - Gross loans receivable before deferred loan costs and premiums 648,780 652,220 Unamortized net deferred loan costs and premiums 1,902 1,526 Gross loans receivable 650,682 653,746 Credit and interest marks on purchased loans, net (852 ) (1,842 ) Allowance for loan losses (2,962 ) (3,391 ) Loans receivable, net $ 646,868 $ 648,513 (1) Including Paycheck Protection Program (PPP) loans. As of June 30, 2022 and December 31, 2021, the commercial loan category above included $3.6 million and $18.0 million, respectively, of loans issued under the SBA’s Paycheck Protection Program (PPP). PPP loans have terms of two As part of the CFBanc Merger, the Company acquired loans for which there was, at acquisition, evidence of credit deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. Prior to the CFBanc Merger, there were no such acquired loans. The carrying amount of those loans as of June 30, 2022, and December 31, 2021, was as follows: June 30 , December 31, 2021 (In thousand s) Real estate: Single family $ 53 $ 558 Commercial real estate - 221 Commercial – other 107 104 $ 160 $ 883 On the acquisition date, the amount by which the undiscounted expected cash flows of the PCI loans exceeded the estimated fair value of the loan is the accretable yield. The accretable yield is measured at each financial reporting date and represents the difference between the remaining undiscounted cash flows and the current carrying value of the PCI 30, and December 31, 2021, none of the Company’s PCI The following table summarizes the accretable yield on the PCI three and six months ended 30, and June 30, 2021: Three months ended June 30, 2022 Six months ended June 30, 2022 (In thousands) Balance at the beginning of the period $ 165 $ 883 Deduction due to payoffs - (707 ) Accretion 5 16 Balance at the end of the period $ 160 $ 160 Three months ended June 30, 2021 Six months ended June 30, 2021 (In thousands) Balance at the beginning of the period $ - $ - Additions 346 346 Accretion 19 19 Balance at the end of the period $ 327 $ 327 The following tables present the activity in the allowance for loan losses by loan type for the periods indicated: For the three months ended June 30, 2022 Real Estate Single Family Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total Beginning balance $ 157 $ 2,771 $ 217 $ 63 $ 236 $ 95 $ - $ 3,539 Provision for (recapture of) loan losses (37 ) (493 ) (64 ) (15 ) (15 ) 43 4 (577 ) Recoveries - - - - - - - - Loans charged off - - - - - - - - Ending balance $ 120 $ 2,278 $ 153 $ 48 $ 221 $ 138 $ 4 $ 2,962 For the three months ended June 30, 2021 Real Estate Single Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total Beginning balance $ 275 $ 2,473 $ 219 $ 221 $ 22 $ 5 $ - $ 3,215 Provision for (recapture of) loan losses (105 ) 133 8 (13 ) 59 (1 ) - 81 Recoveries - - - - - - - - Loans charged off - - - - - - - - Ending balance $ 170 $ 2,606 $ 227 $ 208 $ 81 $ 4 $ - $ 3,296 For the six months ended June 30, 2022 Real Estate Single Family Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total Beginning balance $ 145 $ 2,657 $ 236 $ 103 $ 212 $ 23 $ 15 $ 3,391 Provision for (recapture of) loan losses (25 ) (379 ) (83 ) (55 ) 9 115 (11 ) (429 ) Recoveries - - - - - - - - Loans charged off - - - - - - - - Ending balance $ 120 $ 2,278 $ 153 $ 48 $ 221 $ 138 $ 4 $ 2,962 For the six months ended June 30, 2021 Real Estate Single Family Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total Beginning balance $ 296 $ 2,433 $ 222 $ 237 $ 22 $ 4 $ 1 $ 3,215 Provision for (recapture of) loan losses (126 ) 173 5 (29 ) 59 - (1 ) 81 Recoveries - - - - - - - - Loans charged off - - - - - - - - Ending balance $ 170 $ 2,606 $ 227 $ 208 $ 81 $ 4 $ - $ 3,296 The following tables present the balance in the allowance for loan losses and the recorded investment (unpaid contractual principal balance less charge-offs, less interest applied to principal, plus unamortized deferred costs and premiums) by loan type and based on impairment method as of the dates indicated: June 30, 2022 Real Estate Single Family Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total (In thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 3 $ - $ - $ 4 $ - $ - $ - $ 7 Collectively evaluated for impairment 117 2,278 153 44 221 138 4 2,955 Total ending allowance balance $ 120 $ 2,278 $ 153 $ 48 $ 221 $ 138 $ 4 $ 2,962 Loans: Loans individually evaluated for impairment $ 62 $ 271 $ - $ 1,864 $ - $ - $ - $ 2,197 Loans collectively evaluated for impairment 22,849 375,409 18,748 9,713 30,762 43,305 51 500,837 Subtotal 22,911 375,680 18,748 11,577 30,762 43,305 51 503,034 Loans acquired in the Merger 9,732 31,556 66,360 9,000 5,264 25,736 - 147,648 Total ending loans balance $ 32,643 $ 407,236 $ 85,108 $ 20,577 $ 36,026 $ 69,041 $ 51 $ 650,682 December 31, 2021 Real Estate Single Family Multi- Commercial Real Estate Church Construction Commercial - Other SBA Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 3 $ - $ - $ 4 $ - $ - $ - $ 7 Collectively evaluated for impairment 142 2,657 236 99 212 23 15 3,384 Total ending allowance balance $ 145 $ 2,657 $ 236 $ 103 $ 212 $ 23 $ 15 $ 3,391 Loans: Loans individually evaluated for impairment $ 65 $ 282 $ - $ 1,954 $ - $ - $ - $ 2,301 Loans collectively evaluated for impairment 32,599 353,179 25,507 9,058 24,225 3,124 - 447,692 Subtotal 32,664 353,461 25,507 11,012 24,225 3,124 - 449,993 Loans acquired in the Merger 12,708 41,769 67,686 11,491 7,847 43,415 18,837 203,753 Total ending loans balance $ 45,372 $ 395,230 $ 93,193 $ 22,503 $ 32,072 $ 46,539 $ 18,837 $ 653,746 The following table presents information related to loans individually evaluated for impairment by loan type as of the dates indicated: June 30, 2022 December 31, 2021 Unpaid Principal Recorded Investment Allowance for Loan Losses Allocated Unpaid Recorded Investment Allowance for Loan Losses Allocated (In thousands) With no related allowance recorded: Multi-family $ 271 $ 271 $ - $ 282 $ 282 $ - Church 2,085 1,772 - 1,854 1,854 - With an allowance recorded: Single family 62 62 3 65 65 3 Church 92 92 4 100 100 4 Total $ 2,510 $ 2,197 $ 7 $ 2,301 $ 2,301 $ 7 The recorded investment in loans excludes accrued interest receivable due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for net charge-offs. The following tables present the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the periods indicated: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Average Recorded Investment Cash Basis Interest Income Recognized Average Recorded Investment Cash Basis Interest Income Recognized (In thousands) Single family $ 63 $ 1 $ 316 $ 4 Multi-family 274 5 292 5 Church 2,197 25 3,742 63 Commercial - other - - 11 - Total $ 2,534 $ 31 $ 4,361 $ 72 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Average Recorded Investment Cash Basis Interest Income Recognized Average Recorded Investment Cash Basis Interest Income (In thousands) Single family $ 64 $ 2 $ 426 $ 10 Multi-family 276 10 294 10 Church 2,210 50 3,766 126 Commercial - other - - 26 1 Total $ 2,550 $ 62 $ 4,512 $ 147 Cash-basis interest income recognized represents cash received for interest payments on accruing impaired loans and interest recoveries on non-accrual loans that were paid off. Interest payments collected on non-accrual loans are characterized as payments of principal rather than payments of the outstanding accrued interest on the loans until the remaining principal on the non-accrual loans is considered to be fully collectible or paid off. When a loan is returned to accrual status, the interest payments that were previously applied to principal are deferred and amortized over the remaining life of the loan. Foregone interest income that would have been recognized had loans performed in accordance with their original terms amounted to $23 thousand and $19 thousand for the three months ended June 30, 2022 and 2021, respectively, and $54 thousand and $38 thousand for the six months ended 30, 2022 and 2021, respectively, The following tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated: June 30, 2022 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Loans receivable held for investment: Single family $ - $ - $ - $ - $ 32,643 $ 32,643 Multi-family - - - - 407,236 407,236 Commercial real estate - - - - 85,108 85,108 Church - - - - 20,577 20,577 Construction - - - - 36,026 36,026 Commercial - other - - - - 64,590 64,590 SBA loans - - - - 4,451 4,451 Consumer - - - - 51 51 Total $ - $ - $ - $ - $ 650,682 $ 650,682 December 31, 2021 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Loans receivable held for investment: Single family $ - $ - $ - $ - $ 45,372 $ 45,372 Multi-family - - - - 395,230 395,230 Commercial real estate - 2,423 - 2,423 90,770 93,193 Church - - - - 22,503 22,503 Construction - - - - 32,072 32,072 Commercial - other - - - - 46,539 46,539 Consumer - - - - 18,837 18,837 Total $ - $ 2,423 $ - $ 2,423 $ 651,323 $ 653,746 The following table presents the recorded investment in non-accrual loans by loan type as of the dates indicated: June 30, 2022 December 31, 2021 (In thousands) Loans receivable held for investment: Church $ 627 $ 684 Total non-accrual loans $ 627 $ 684 There were no loans 90 days or more delinquent that were accruing interest as of June 30, 2022 or December 31, 2021. None of the church non-accrual loans were delinquent, but none qualified for accrual status as of the dates indicated. Troubled Debt Restructurings (TDRs) At June 30, 2022, loans classified as TDRs totaled $2.0 million, of which $164 thousand were included in non-accrual loans and $1.9 million were on accrual status. At December 31, 2021, loans classified as TDRs totaled $1.8 million, of which $188 thousand were included in non-accrual loans and $1.6 million were on accrual status. The Company has allocated $7 thousand of specific reserves for accruing TDRs as of June 30, 2022 and December 31, 2021, respectively. TDRs on accrual status are comprised of loans that were accruing at the time of restructuring or loans that have complied with the terms of their restructured agreements for a satisfactory period of time and for which the Bank anticipates full repayment of both principal and interest. TDRs that are on non-accrual status can be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments, as modified. A well-documented credit analysis that supports a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms is also required. As of June 30, 2022 and December 31, 2021, the Company had no commitment to lend additional amounts to customers with outstanding loans that are classified as TDRs. No loans were modified during the three or six months ended June 30, 2022 and 2021. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For single family residential, consumer and other smaller balance homogenous loans, a credit grade is established at inception, and generally only adjusted based on performance. Information about payment status is disclosed elsewhere herein. The Company analyzes all other loans individually by classifying the loans as to credit risk. This analysis is performed at least on a quarterly basis. The Company uses the following definitions for risk ratings: ● Watch. Loans classified as watch exhibit weaknesses that could threaten the current net worth and paying capacity of the obligors. Watch graded loans are generally performing and are not more than 59 days past due. A watch rating is used when a material deficiency exists, but correction is anticipated within an acceptable time frame. ● Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. ● Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. ● Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, 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. ● Loss. Loans classified as loss are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Pass rated loans are generally well protected by the current net worth and paying capacity of the obligor and/or by the value of the underlying collateral. Pass rated loans are not more than 59 days past due and are generally performing in accordance with the loan terms. Based on the most recent analysis performed, the risk categories of loans by loan type as of the dates indicated were as follows: June 30, 2022 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Single family $ 31,607 $ 363 $ 265 $ 408 $ - $ - $ 32,643 Multi-family 390,186 4,694 4,216 8,140 - - 407,236 Commercial real estate 66,110 8,338 5,930 4,730 - - 85,108 Church 16,086 2,095 - 2,396 - - 20,577 Construction 8,998 27,028 - - - - 36,026 Commercial - others 49,367 14,916 - 300 7 - 64,590 SBA 3,789 662 - - - - 4,451 Consumer 51 - - - - - 51 Total $ 566,194 $ 58,096 $ 10,411 $ 15,974 $ 7 $ - $ 650,682 December 31, 2021 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Single family $ 42,454 $ 1,343 $ 271 $ 1,304 $ - $ - $ 45,372 Multi-family 378,141 7,987 575 8,527 - - 395,230 Commercial real estate 69,257 7,034 9,847 7,055 - - 93,193 Church 20,021 - - 2,482 - - 22,503 Construction 10,522 21,550 - - - - 32,072 Commercial - other 33,988 12,551 - - - - 46,539 SBA 18,665 - 172 - - - 18,837 Total $ 573,048 $ 50,465 $ 10,865 $ 19,368 $ - $ - $ 653,746 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | NOTE (6) – In connection with the CFBanc Merger (see Note 2 – Business Combination), the Company recognized goodwil l of and a core deposit intangible of . As the Company’s stock recently trading at a steep discount to tangible book value, an assessment of goodwill impairment was performed as of June 30, 2022, in which no impairment was determined. The following table presents the changes in the carrying amounts of goodwill for the six-month period ended June 30, 2022: Goodwill Core Deposit Intangible (In thousands) Balance at the beginning of the period $ 25,996 $ 2,936 Additions - - Change in deferred tax estimate (138 ) - Amortization - (217 ) Balance at the end of the period $ 25,858 $ 2,719 The carrying amount of the core deposit intangible consisted of the following at June 30, 2022 Core deposit intangible acquired $ 3,329 Less: accumulated amortization (610 ) $ 2,719 The following table outlines the estimated amortization expense for the core deposit intangible during the next five fiscal years (in thousands): 2022 $ 219 2023 390 2024 336 2025 315 2026 304 Thereafter 1,155 $ 2,719 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2022 | |
Borrowings [Abstract] | |
Borrowings | NOTE (7) – Borrowings T he Bank enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Bank may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Bank to repurchase the assets. urities is reflected as a liability in the Banks’s consolidated hile the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. At 30, 2022 and December 31, 2021, the Bank had outstanding advances from the FHLB totaling $32.9 million and $86.0 million, respectively. The weighted interest rate was 1.34% and 1.85% as of 30, 2022 and December 31, 2021, respectively. The weighted average contractual maturity was 32 months and 22 months as of 30, 2022 and December 31, 2021, respectively. The advances were collateralized by loans with a market value of $63.4 million at 30, 2022 and $165.0 million at December 31, 202 In connection with the New Market Tax Credit activities of the Bank, CFC 45 is a partnership whose members include CFNMA and City First New Markets Fund II, LLC. This community development entity (“CDE”) acts in effect as a pass-through for a Merrill Lynch allocation totaling $14.0 million that needed to be deployed. In December 2015, Merrill Lynch made a $14.0 million non-recourse loan to CFC 45, whereby CFC 45 passed that loan through to a Qualified Active Low-Income Business (“QALICB”). The loan to the QALICB is secured by a Leasehold Deed of Trust that, due to the pass-through, non-recourse structure, is operationally and ultimately for the benefit of Merrill Lynch rather than CFC 45. Debt service payments received by CFC 45 from the QALICB are passed through to Merrill Lynch in return for which CFC 45 receives a servicing fee. The financial statements of CFC 45 are consolidated with those of the Bank and the Company. There are two notes for CFC 45. Note A is in the amount of $9.9 million with a fixed interest rate of 5.2% per annum. Note B is in the amount of $4.1 million with a fixed interest rate of 0.24% per annum. Quarterly interest only payments commenced in March 2016 and will continue through March 2023 for Notes A and B. Beginning in September 2023, quarterly principal and interest payments will be due for Notes A and B. Both notes will mature on December 1, 2040. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value [Abstract] | |
Fair Value | NOTE (8) – Fair Value The Company used the following methods and significant assumptions to estimate fair value: The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value of impaired loans that are collateral dependent is generally based upon the fair value of the collateral, which is obtained from recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Assets acquired through or by transfer in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated every nine months. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for collateral-dependent impaired loans and assets acquired through or by transfer of in lieu of foreclosure are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, an independent third-party licensed appraiser reviews the appraisals for accuracy and reasonableness, reviewing the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Assets Measured on a Recurring Basis Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurement Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) At June 30, 2022: Securities available-for-sale: Federal agency mortgage-backed $ - $ 83,102 $ - $ 83,102 Federal agency CMO - 26,820 - 26,820 Federal agency debt - 48,874 - 48,874 Municipal bonds - 4,339 - 4,339 U.S. Treasuries - 61,180 - 61,180 SBA pools - 13,983 - 13,983 At December 31, 2021: Securities available-for-sale: Federal agency mortgage-backed $ - $ 70,030 $ - $ 70,030 Federal agency CMO - 9,287 - 9,287 Federal agency debt - 37,988 - 37,988 Municipal bonds - 4,915 - 4,915 U.S. Treasuries - 17,951 - 17,951 SBA pools - 16,225 - 16,225 There were no transfers between Level 1, Level 2, or Level 3 during the three and six months ended June 30, 2022 and 2021. Assets Measured on a Non-Recurring Basis Assets are considered to be reflected at fair value on a non-recurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the statements of financial condition. Generally, a non-recurring valuation is the result of the application of other accounting pronouncements that require assets to be assessed for impairment or recorded at the lower of cost or fair value. As of June 30, 2022 and December 31, 2021, the Bank did not have any impaired loans carried at fair value. Fair Values of Financial Instruments The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of June 30, 2022 and December 31, 2021. For short-term financial assets such as cash and due from banks, interest-bearing deposits in other banks, and accrued interest receivable/payable, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair Value Measurements at June 30, 2022 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Cash and cash equivalents $ 280,137 $ 280,137 $ - $ - $ 280,137 Securities available-for-sale 238,298 - 238,298 - 238,298 Loans receivable held for investment 646,868 - - 607,927 607,927 Accrued interest receivables 2,694 162 475 2,057 2,694 Bank owned life insurance 3,211 3,211 - - 3,211 Financial Liabilities: Deposits $ 816,177 $ - $ 731,780 $ - $ 731,780 Federal Home Loan Bank advances 32,932 - 31,581 - 31,581 Securities sold under agreements to repurchase 67,292 - 62,716 - 62,716 Note payable 14,000 - - 14,000 14,000 Accrued interest payable 241 - 241 - 241 Fair Value Measurements at December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Cash and cash equivalents $ 231,520 $ 231,520 $ - $ - $ 231,520 Securities available-for-sale 156,396 - 156,396 - 156,396 Loans receivable held for investment 648,513 - - 623,778 623,778 Accrued interest receivables 3,372 19 1,089 2,264 3,372 Bank owned life insurance 3,190 3,190 - - 3,190 Financial Liabilities: Deposits $ 788,052 $ - $ 754,181 $ - $ 754,181 Federal Home Loan Bank advances 85,952 - 87,082 - 87,082 Securities sold under agreements to repurchase 51,960 - 51,960 - 51,960 Note payable 14,000 - - 14,000 14,000 Accrued interest payable 119 - 119 - 119 In accordance with ASU No. 2016-01, the fair value of financial assets and liabilities was measured using an exit price notion. Although the exit price notion represents the value that would be received to sell an asset or paid to transfer a liability, the actual price received for a sale of assets or paid to transfer liabilities could be different from exit price disclosed. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Stock-based Compensation [Abstract] | |
Stock-Based Compensation | NOTE (9) – Stock-based Compensation The Long-Term Incentive Plan, which was adopted by the Company and approved by the stockholders in 2018 (the “LTIP”), permits the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards. The plan is in effect for ten years. The maximum number of shares that can be awarded under the plan is 1,293,109 shares of common stock as of December 31, 2018. As of June 30, 2022 During February of 2022 and 2021, the Company issued 47,187 and 20,736 shares of stock, respectively, to its directors under the 2018 LTIP, which were fully vested. The Company recorded $0 and $84 thousand of compensation expense during the three and six months ended June 30, 2022, respectively, based on the fair value of the stock, which was determined using the fair value of the stock on the date of the award. During the three and six months ended June 30, 2021, the Company recorded $0 and $45 thousand of stock compensation expense. During March of 2022, the Company issued 495,262 shares to its officers and employees under the 2018 LTIP. Each restricted stock award is valued based on the fair value of the stock on the date of the award. These awarded shares of restricted stock fully vest over periods ranging from 36 months to 60 months from their respective dates of grant. Stock based compensation is recognized on a straight-line basis over the vesting period. There were no shares issued to officers and employees during 2021. During the three- and six-month periods ending June 30, 2022, the company recorded $43 thousand and $58 thousand of stock-based compensation expense, respectively. During the three- and six-month periods ending June 30, 2021, the company recorded $0 thousand and $162 thousand of stock-based compensation expense, respectively, related to awards granted prior to 2021. No stock options were granted during the six months ended June 30, 2022 and 2021. The following table summarizes stock option activity during the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Number Outstanding Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price Outstanding at beginning of period 450,000 $ 1.62 455,000 $ 1.67 Granted during period - - - - Exercised during period - - - - Forfeited or expired during period (200,000 ) - (5,000 ) 6.00 Outstanding at end of period 250,000 $ 1.62 450,000 $ 1.62 Exercisable at end of period 250,000 $ 1.62 360,000 $ 1.62 T he Company did not record any stock-based compensation expense related to stock options during the three and six months ended June 30, 2022 since these stock options became fully vested and all compensation expense was recognized in February 2021. For the three and six months ended June 30, 2021, the Company recorded $0 and $7 thousand expense related to stock options, respectively. Options outstanding and exercisable at June 30, 2022 were as follows: Outstanding Exercisable Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Number Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value 250,000 3.63 years $ 1.62 250,000 $ 1.62 250,000 3.63 years $ 1.62 $ - 250,000 $ 1.62 $ - |
ESOP Plan
ESOP Plan | 6 Months Ended |
Jun. 30, 2022 | |
ESOP Plan [Abstract] | |
ESOP Plan | NOTE (10) – ESOP Plan Employees participate in an Employee Stock Option Plan (“ESOP”) after attaining certain age and service requirements. In December 2016, the ESOP purchased 1,493,679 shares of the Company’s common stock at $1.59 per share, for a total cost of $2.4 million, of which $1.2 million was funded with a loan from the Company. The loan will be repaid from the Bank’s annual discretionary contributions to the ESOP, net of dividends paid, over a period of 20 years. Shares of the Company’s common stock purchased by the ESOP are held in a suspense account until released for allocation to participants. When loan payments are made, shares are allocated to each eligible participant based on the ratio of each such participant’s compensation, as defined in the ESOP, to the total compensation of all eligible plan participants. As the unearned shares are released from the suspense account, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such shares, the difference is charged or credited to equity as additional paid-in capital. Any dividends on allocated shares increase participant accounts. Any dividends on unallocated shares will be used to repay the loan. Participants will receive shares for their vested balance at the end of their employment. Compensation expense related to the ESOP was $27 thousand and $25 thousand for the three months ended June 30, 2022 and 2021, respectively, and $45 thousand and $47 thousand for the six months ended June 30, 2022 and 2021, respectively. Shares held by the ESOP were as follows: June 30, 2022 December 31, 2021 (Dollars in thousands) Allocated to participants 1,062,326 1,065,275 Committed to be released 30,192 10,236 Suspense shares 501,490 562,391 Total ESOP shares 1,594,008 1,637,902 Fair value of unearned shares $ 532 $ 1,040 Unearned shares, which are reported as Unearned ESOP shares in the equity section of the consolidated statements of financial condition, were $797 thousand and $829 thousand at June 30, 2022 and December 31, 2021, respectively. |
Stockholders' Equity and Regula
Stockholders' Equity and Regulatory Matters | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity and Regulatory Matters [Abstract] | |
Stockholders' Equity and Regulatory Matters | NOTE (11) – Stockholders’ Equity and Regulatory Matters On June 7, 2022, the Company issued 150,000 shares of Senior Non-Cumulative Perpetual Preferred stock, Series C (“Series C Preferred Stock”), for the capital investment of $150.0 million from the U.S. Treasury under the Emergency Capital Investment Program (“ECIP”). ECIP investment is treated as Tier 1 Capital for the regulatory capital treatment. The Series C Preferred stock may be redeemed at the option of the Company on or after the fifth anniversary of issuance (or earlier in the event of loss of regulatory capital treatment), subject to the approval of the appropriate federal banking regulator in accordance with the federal banking agencies’ regulatory capital regulations. The initial dividend rate of the Series C Preferred Stock is zero percent for the first two years after issuance, and thereafter the floor dividend rate is 0.50% and the ceiling dividend rate is 2.00%. During the first quarter of 2022 the Company completed the exchange of all the Series A Fixed Rate Cumulative Redeemable Preferred Stock, with an aggregate liquidation rate of $3 million, plus accrued dividends, for 1,193,317 shares of Class A Common Stock at an exchange price of $2.51 per share of Class A Common Stock. The Bank’s capital requirements are administered by the Office of the Comptroller of the Currency (“OCC”) and involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the OCC. Failure to meet capital requirements can result in regulatory action. As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies have developed a “Community Bank Leverage Ratio” (“CBLR”) (the ratio of a bank’s tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A “qualifying community bank” that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action statutes. The federal banking agencies have set the Community Bank Leverage Ratio at 9%. The CARES Act temporarily lowered this ratio to 8% beginning in the three months ended March 31, 2020. The ratio then rose to 8.5% for 2021 and was reestablished at 9% on January 1, 2022. City First Bank, N.A. elected to adopt the CBLR option on April 1, 2020, as reflected in its March 31, 2020 Call Report. Actual and required capital amounts and ratios as of the dates indicated are presented below. Actual Minimum Required to Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio (Dollars in thousands) June 30 2022 Community Bank Leverage Ratio $ 171,773 15.87 % $ 92,005 9.00 % December 31 2021 Community Bank Leverage Ratio $ 98,590 9.32 % $ 89,871 8.50 % At June 30, 2022, the Company and the Bank met all the capital adequacy requirements to which they were subject. In addition, the Bank was “well capitalized” under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred since June 30 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE (12) – Income Taxes T he Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluated both positive and negative evidence, including the existence of cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income and tax planning strategies. At June 30, 2022, the Company maintained a $369 thousand valuation allowance on its deferred tax assets because the number of shares sold in the private placements completed on April 6, 2021 triggered limitations on the use of certain tax attributes under the Section 382 of the federal tax code. The ability to use net operating losses (“NOLs”) to offset future taxable income will be restricted and these NOLs could expire or otherwise be unavailable. In general, under Section 382 of the Code and corresponding provisions of state law, a corporation that undergoes an “ownership change” is subject to limitations on its ability to utilize its pre-change NOLs to offset future taxable income. For these purposes, an ownership change generally occurs where the aggregate stock ownership of one or more stockholders or groups of stockholders who owns at least 5% of a corporation’s stock increases its ownership by more than 50 percentage points over its lowest ownership percentage within a specified testing period. |
Concentration of Credit Risk
Concentration of Credit Risk | 6 Months Ended |
Jun. 30, 2022 | |
Concentration of Credit Risk [Abstract] | |
Concentration of Credit Risk | NOTE (13) – Concentration of Credit Risk The Bank has a significant concentration of deposits with one customer that accounted for approximately 16% of its deposits as of June The Bank a lso h June |
Basis of Financial Statement _2
Basis of Financial Statement Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Basis of Financial Statement Presentation [Abstract] | |
Consolidation | The accompanying unaudited consolidated financial statements include Broadway Financial Corporation (the “Company”) and its wholly owned subsidiary, City First Bank, National Association (the “Bank” and, together with the Company, “City First Broadway”). Also included in the unaudited consolidated financial statements are the following subsidiaries of City First Bank: 1432 U Street LLC, Broadway Service Corporation, City First Real Estate LLC, City First Real Estate II LLC, City First Real Estate III LLC, City First Real Estate IV LLC, and CF New Markets Advisors, LLC (“CFNMA”). In addition, CFNMA also consolidates CFC Fund Manager II, LLC; City First New Markets Fund II, LLC; City First Capital IX, LLC; and City First Capital 45, LLC (“CFC 45”) into its financial results. All significant intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”) and, accordingly, should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. |
Subsequent Events | Subsequent events have been evaluated through August 15, 2022, which is the date these financial statements were issued. |
Accounting Pronouncements Yet to Be Adopted | Accounting Pronouncements Yet to Be Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. For debt securities with other-than-temporary impairment, the guidance will be applied prospectively. Existing purchase credit impaired (“PCI”) assets will be grandfathered and classified as purchased credit deteriorated (“PCD”) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB voted to affirm the proposed amended effective date for ASU 2016-13 for smaller reporting companies (“SRCs”) as defined by the SEC. The final ASU, which was issued in November 2019, delays the implementation date for ASU 2016-13 to fiscal years beginning after December 15, 2022. SRCs are defined as companies with less than $250 million of public float or less than $100 million in annual revenues for the previous year and no public float or public float of less than $700 million. The Company qualifies as an SRC, and management will implement ASU 2016-13 in the first quarter of 2023. The Company has selected a vendor model, formed an implementation committee and is in the process of refining the model. The estimated financial impact has not yet been determined. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This ASU clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. The amendments to Topic 326 have the same effective dates as ASU 2016-13. This guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief. This ASU allows entities to irrevocably elect the fair value option on an instrument-by-instrument basis for eligible financial assets measured at amortized cost basis upon adoption of the credit loss standards. The effective date for this ASU is the same as for ASU 2016-13. Management will evaluate this ASU in conjunction with ASU 2016-13 to determine whether the fair value option will be elected for any eligible financial assets. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This new accounting standard pertains to eliminating certain existing accounting guidance for troubled debt restructurings (“TDRs”) by creditors and adding additional disclosures related to the nature and characteristics of modifications of loans to borrowers experiencing financial difficulties and vintage disclosures for gross write-offs. The amendments to Topic 326 have the same effective dates as ASU 2016-13. This guidance is not expected to have a significant impact on the Company’s consolidated financial statements. |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination [Abstract] | |
Assets Acquired and Liabilities Assumed | The following table represents the assets acquired and liabilities assumed in the CFBanc Merger as of April 1, 2021, and the fair value adjustments and amounts recorded by the Company as of the same date under the acquisition method of accounting: CFBanc Book Value Fair Value Adjustments Fair Value Assets acquired (In thousands) Cash and cash equivalents $ 84,745 $ - $ 84,745 Securities available-for-sale 150,052 (77 ) 149,975 Loans receivable held for investment: Gross loans receivable held for investment 227,669 (1,784 ) 225,885 Deferred fees and costs (315 ) 315 - Allowance for loan losses (2,178 ) 2,178 - 225,176 709 225,885 Accrued interest receivable 1,637 - 1,637 FHLB and FRB stock 1,061 - 1,061 Office properties and equipment 5,152 1,801 6,953 Deferred tax assets, net 890 (1,608 ) (718 ) Core deposit intangible - 3,329 3,329 Other assets 2,290 - 2,290 Total assets $ 471,003 $ 4,154 $ 475,157 Liabilities assumed Deposits $ 353,671 $ 51 $ 353,722 Securities sold under agreements to repurchase 59,945 - 59,945 FHLB advances 3,057 109 3,166 Notes payable 14,000 - 14,000 Accrued expenses and other liabilities 4,063 - 4,063 Total liabilities $ 434,736 $ 160 $ 434,896 Excess of assets acquired over liabilities assumed $ 36,267 $ 3,994 $ 40,261 Consideration paid $ 66,257 Goodwill recognized $ 25,996 |
Contractual Amounts Due, Expected Cash Flows to Be Collected, Interest Component, and Fair Value of Loans Acquired | The contractual amounts due, expected cash flows to be collected, the interest component, and the fair value of loans acquired from CFBanc as of the acquisition date were as follows (in thousands): Contractual amounts due $ 231,432 Cash flows not expected to be collected (3,666 ) Expected cash flows 227,766 Interest component of expected cash flows (1,881 ) Fair value of acquired loans $ 225,885 |
Fair Value of PCI Loans | The following table presents the amounts that comprise the fair value of PCI loans (in thousands): Contractual amounts due $ 1,825 Nonaccretable difference (cash flows not expected to be collected) (634 ) Expected cash flows 1,191 Accretable yield (346 ) Fair value of acquired loans $ 845 |
Unaudited Pro Forma Information | The following table presents the net interest income, net income, and earnings per share as if the CFBanc Merger was effective as of January 1, 2021. The unaudited pro forma financial information included in the table below is based on various estimates and is presented for informational purposes only and does not indicate the financial condition or results of operations of the combined Company that would have been achieved for the periods presented had the transactions been completed as of the date indicated or that may be achieved in the future. Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 (Dollars in thousands except per share amounts) Net interest income $ 5,828 $ 11,018 Net income (loss) 708 (3,576 ) Basic earnings per share $ 0.01 $ (0.05 ) Diluted earnings per share $ 0.01 $ (0.05 ) |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share of Common Stock [Abstract] | |
Basic and Diluted Earnings (Loss) Per Share of Common Stock | The following table shows how the Company computed basic and diluted earnings (loss) per share of common stock for the periods indicated: For the three months ended June 30, For the six months ended June 30, 2022 2021 2022 2021 (Dollars in thousands, except per share) Net income (loss) $ 1,854 $ 701 $ 2,812 $ (2,786 ) Less net income (loss) attributable to participating securities 12 - 18 - Income (loss) available to common stockholders $ 1,842 $ 701 $ 2,794 $ (2,786 ) Weighted average common shares outstanding for basic earnings (loss) per common share 72,527,974 70,163,639 72,292,735 48,873,496 Add: dilutive effects of unvested restricted stock awards 461,047 140,247 467,890 - Add: dilutive effects of assumed exercise of stock options - - 7,982 - Weighted average common shares outstanding for diluted earnings (loss) per common share 72,989,021 70,303,886 72,768,607 48,873,496 Earnings (loss) per common share - basic $ 0.03 $ 0.01 $ 0.04 $ (0.06 ) Earnings (loss) per common share - diluted $ 0.03 $ 0.01 $ 0.04 $ (0.06 ) |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Securities [Abstract] | |
Available-for-Sale Investment Securities Portfolios | The following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios as of the dates indicated and the corresponding amounts of unrealized gains and losses which were recognized in accumulated other comprehensive income (loss): Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) June 30, 2022: Federal agency mortgage-backed securities $ 90,453 $ 13 $ (7,364 ) $ 83,102 Federal agency collateralized mortgage obligations (“CMO”) 27,385 79 (644 ) 26,820 Federal agency debt 51,598 47 (2,771 ) 48,874 Municipal bonds 4,882 - (543 ) 4,339 U.S. Treasuries 62,656 63 (1,539 ) 61,180 SBA pools 15,189 25 (1,231 ) 13,983 Total available-for-sale securities $ 252,163 $ 227 $ (14,092 ) $ 238,298 December 31, 2021: Federal agency mortgage-backed securities $ 70,078 $ 196 $ (244 ) $ 70,030 Federal agency CMOs 9,391 11 (115 ) 9,287 Federal agency debt 38,152 106 (270 ) 37,988 Municipal bonds 4,898 40 (23 ) 4,915 U.S. Treasuries 18,169 - (218 ) 17,951 SBA pools 16,241 122 (138 ) 16,225 Total available-for-sale securities $ 156,929 $ 475 $ (1,008 ) $ 156,396 |
Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | The amortized cost and estimated fair value of all investment securities available-for-sale at June 30, 2022, by contractual maturities are shown below. Contractual maturities may differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Due in one year or less $ 1,005 $ - $ (5 ) $ 1,000 Due after one year through five years 103,542 63 (3,393 ) 100,212 Due after five years through ten years 40,021 55 (2,173 ) 37,903 Due after ten years (1) 107,595 109 (8,521 ) 99,183 $ 252,163 $ 227 $ (14,092 ) $ 238,298 (1) Mortgage-backed securities, collateralized mortgage obligations and SBA pools do not have a single stated maturity date and therefore have been included in the “Due after ten years” category. |
Loans Receivable Held for Inv_2
Loans Receivable Held for Investment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loans Receivable Held for Investment [Abstract] | |
Loans Receivable Held for Investment | Loans receivable held for investment were as follows as of the dates indicated: June 30, 2022 December 31, 2021 (In thousands) Real estate: Single family $ 32,597 $ 45,372 Multi-family 405,140 393,704 Commercial real estate 85,156 93,193 Church 20,626 22,503 Construction 36,168 32,072 Commercial – other 64,591 46,539 SBA loans (1) 4,451 18,837 Consumer 51 - Gross loans receivable before deferred loan costs and premiums 648,780 652,220 Unamortized net deferred loan costs and premiums 1,902 1,526 Gross loans receivable 650,682 653,746 Credit and interest marks on purchased loans, net (852 ) (1,842 ) Allowance for loan losses (2,962 ) (3,391 ) Loans receivable, net $ 646,868 $ 648,513 |
Carrying Amount of Purchased Credit Impaired Loans | The carrying amount of those loans as of June 30, 2022, and December 31, 2021, was as follows: June 30 , December 31, 2021 (In thousand s) Real estate: Single family $ 53 $ 558 Commercial real estate - 221 Commercial – other 107 104 $ 160 $ 883 |
Accretable yield on Purchased Credit Impaired Loans | The following table summarizes the accretable yield on the PCI three and six months ended 30, and June 30, 2021: Three months ended June 30, 2022 Six months ended June 30, 2022 (In thousands) Balance at the beginning of the period $ 165 $ 883 Deduction due to payoffs - (707 ) Accretion 5 16 Balance at the end of the period $ 160 $ 160 Three months ended June 30, 2021 Six months ended June 30, 2021 (In thousands) Balance at the beginning of the period $ - $ - Additions 346 346 Accretion 19 19 Balance at the end of the period $ 327 $ 327 |
Activity in Allowance for Loan Losses by Loan Type | The following tables present the activity in the allowance for loan losses by loan type for the periods indicated: For the three months ended June 30, 2022 Real Estate Single Family Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total Beginning balance $ 157 $ 2,771 $ 217 $ 63 $ 236 $ 95 $ - $ 3,539 Provision for (recapture of) loan losses (37 ) (493 ) (64 ) (15 ) (15 ) 43 4 (577 ) Recoveries - - - - - - - - Loans charged off - - - - - - - - Ending balance $ 120 $ 2,278 $ 153 $ 48 $ 221 $ 138 $ 4 $ 2,962 For the three months ended June 30, 2021 Real Estate Single Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total Beginning balance $ 275 $ 2,473 $ 219 $ 221 $ 22 $ 5 $ - $ 3,215 Provision for (recapture of) loan losses (105 ) 133 8 (13 ) 59 (1 ) - 81 Recoveries - - - - - - - - Loans charged off - - - - - - - - Ending balance $ 170 $ 2,606 $ 227 $ 208 $ 81 $ 4 $ - $ 3,296 For the six months ended June 30, 2022 Real Estate Single Family Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total Beginning balance $ 145 $ 2,657 $ 236 $ 103 $ 212 $ 23 $ 15 $ 3,391 Provision for (recapture of) loan losses (25 ) (379 ) (83 ) (55 ) 9 115 (11 ) (429 ) Recoveries - - - - - - - - Loans charged off - - - - - - - - Ending balance $ 120 $ 2,278 $ 153 $ 48 $ 221 $ 138 $ 4 $ 2,962 For the six months ended June 30, 2021 Real Estate Single Family Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total Beginning balance $ 296 $ 2,433 $ 222 $ 237 $ 22 $ 4 $ 1 $ 3,215 Provision for (recapture of) loan losses (126 ) 173 5 (29 ) 59 - (1 ) 81 Recoveries - - - - - - - - Loans charged off - - - - - - - - Ending balance $ 170 $ 2,606 $ 227 $ 208 $ 81 $ 4 $ - $ 3,296 |
Allowance for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method | The following tables present the balance in the allowance for loan losses and the recorded investment (unpaid contractual principal balance less charge-offs, less interest applied to principal, plus unamortized deferred costs and premiums) by loan type and based on impairment method as of the dates indicated: June 30, 2022 Real Estate Single Family Multi- Family Commercial Real Estate Church Construction Commercial - Other Consumer Total (In thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 3 $ - $ - $ 4 $ - $ - $ - $ 7 Collectively evaluated for impairment 117 2,278 153 44 221 138 4 2,955 Total ending allowance balance $ 120 $ 2,278 $ 153 $ 48 $ 221 $ 138 $ 4 $ 2,962 Loans: Loans individually evaluated for impairment $ 62 $ 271 $ - $ 1,864 $ - $ - $ - $ 2,197 Loans collectively evaluated for impairment 22,849 375,409 18,748 9,713 30,762 43,305 51 500,837 Subtotal 22,911 375,680 18,748 11,577 30,762 43,305 51 503,034 Loans acquired in the Merger 9,732 31,556 66,360 9,000 5,264 25,736 - 147,648 Total ending loans balance $ 32,643 $ 407,236 $ 85,108 $ 20,577 $ 36,026 $ 69,041 $ 51 $ 650,682 December 31, 2021 Real Estate Single Family Multi- Commercial Real Estate Church Construction Commercial - Other SBA Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 3 $ - $ - $ 4 $ - $ - $ - $ 7 Collectively evaluated for impairment 142 2,657 236 99 212 23 15 3,384 Total ending allowance balance $ 145 $ 2,657 $ 236 $ 103 $ 212 $ 23 $ 15 $ 3,391 Loans: Loans individually evaluated for impairment $ 65 $ 282 $ - $ 1,954 $ - $ - $ - $ 2,301 Loans collectively evaluated for impairment 32,599 353,179 25,507 9,058 24,225 3,124 - 447,692 Subtotal 32,664 353,461 25,507 11,012 24,225 3,124 - 449,993 Loans acquired in the Merger 12,708 41,769 67,686 11,491 7,847 43,415 18,837 203,753 Total ending loans balance $ 45,372 $ 395,230 $ 93,193 $ 22,503 $ 32,072 $ 46,539 $ 18,837 $ 653,746 |
Loans Individually Evaluated for Impairment by Loan Type | The following table presents information related to loans individually evaluated for impairment by loan type as of the dates indicated: June 30, 2022 December 31, 2021 Unpaid Principal Recorded Investment Allowance for Loan Losses Allocated Unpaid Recorded Investment Allowance for Loan Losses Allocated (In thousands) With no related allowance recorded: Multi-family $ 271 $ 271 $ - $ 282 $ 282 $ - Church 2,085 1,772 - 1,854 1,854 - With an allowance recorded: Single family 62 62 3 65 65 3 Church 92 92 4 100 100 4 Total $ 2,510 $ 2,197 $ 7 $ 2,301 $ 2,301 $ 7 |
Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income | The following tables present the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the periods indicated: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Average Recorded Investment Cash Basis Interest Income Recognized Average Recorded Investment Cash Basis Interest Income Recognized (In thousands) Single family $ 63 $ 1 $ 316 $ 4 Multi-family 274 5 292 5 Church 2,197 25 3,742 63 Commercial - other - - 11 - Total $ 2,534 $ 31 $ 4,361 $ 72 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Average Recorded Investment Cash Basis Interest Income Recognized Average Recorded Investment Cash Basis Interest Income (In thousands) Single family $ 64 $ 2 $ 426 $ 10 Multi-family 276 10 294 10 Church 2,210 50 3,766 126 Commercial - other - - 26 1 Total $ 2,550 $ 62 $ 4,512 $ 147 |
Aging of Recorded Investment in Past Due Loans by Loan Type | The following tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated: June 30, 2022 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Loans receivable held for investment: Single family $ - $ - $ - $ - $ 32,643 $ 32,643 Multi-family - - - - 407,236 407,236 Commercial real estate - - - - 85,108 85,108 Church - - - - 20,577 20,577 Construction - - - - 36,026 36,026 Commercial - other - - - - 64,590 64,590 SBA loans - - - - 4,451 4,451 Consumer - - - - 51 51 Total $ - $ - $ - $ - $ 650,682 $ 650,682 December 31, 2021 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total (In thousands) Loans receivable held for investment: Single family $ - $ - $ - $ - $ 45,372 $ 45,372 Multi-family - - - - 395,230 395,230 Commercial real estate - 2,423 - 2,423 90,770 93,193 Church - - - - 22,503 22,503 Construction - - - - 32,072 32,072 Commercial - other - - - - 46,539 46,539 Consumer - - - - 18,837 18,837 Total $ - $ 2,423 $ - $ 2,423 $ 651,323 $ 653,746 |
Recorded Investment in Non-accrual Loans by Loan Type | The following table presents the recorded investment in non-accrual loans by loan type as of the dates indicated: June 30, 2022 December 31, 2021 (In thousands) Loans receivable held for investment: Church $ 627 $ 684 Total non-accrual loans $ 627 $ 684 |
Risk Categories of Loans by Loan Type | Based on the most recent analysis performed, the risk categories of loans by loan type as of the dates indicated were as follows: June 30, 2022 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Single family $ 31,607 $ 363 $ 265 $ 408 $ - $ - $ 32,643 Multi-family 390,186 4,694 4,216 8,140 - - 407,236 Commercial real estate 66,110 8,338 5,930 4,730 - - 85,108 Church 16,086 2,095 - 2,396 - - 20,577 Construction 8,998 27,028 - - - - 36,026 Commercial - others 49,367 14,916 - 300 7 - 64,590 SBA 3,789 662 - - - - 4,451 Consumer 51 - - - - - 51 Total $ 566,194 $ 58,096 $ 10,411 $ 15,974 $ 7 $ - $ 650,682 December 31, 2021 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Single family $ 42,454 $ 1,343 $ 271 $ 1,304 $ - $ - $ 45,372 Multi-family 378,141 7,987 575 8,527 - - 395,230 Commercial real estate 69,257 7,034 9,847 7,055 - - 93,193 Church 20,021 - - 2,482 - - 22,503 Construction 10,522 21,550 - - - - 32,072 Commercial - other 33,988 12,551 - - - - 46,539 SBA 18,665 - 172 - - - 18,837 Total $ 573,048 $ 50,465 $ 10,865 $ 19,368 $ - $ - $ 653,746 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets [Abstract] | |
Changes in Carrying Amounts of Goodwill and Core Deposit Intangibles | The following table presents the changes in the carrying amounts of goodwill for the six-month period ended June 30, 2022: Goodwill Core Deposit Intangible (In thousands) Balance at the beginning of the period $ 25,996 $ 2,936 Additions - - Change in deferred tax estimate (138 ) - Amortization - (217 ) Balance at the end of the period $ 25,858 $ 2,719 |
Components of Carrying Amount of Core Deposit Intangible | The carrying amount of the core deposit intangible consisted of the following at June 30, 2022 Core deposit intangible acquired $ 3,329 Less: accumulated amortization (610 ) $ 2,719 |
Estimated Amortization Expense for Core Deposit Intangible | The following table outlines the estimated amortization expense for the core deposit intangible during the next five fiscal years (in thousands): 2022 $ 219 2023 390 2024 336 2025 315 2026 304 Thereafter 1,155 $ 2,719 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value [Abstract] | |
Assets Measured on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurement Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) At June 30, 2022: Securities available-for-sale: Federal agency mortgage-backed $ - $ 83,102 $ - $ 83,102 Federal agency CMO - 26,820 - 26,820 Federal agency debt - 48,874 - 48,874 Municipal bonds - 4,339 - 4,339 U.S. Treasuries - 61,180 - 61,180 SBA pools - 13,983 - 13,983 At December 31, 2021: Securities available-for-sale: Federal agency mortgage-backed $ - $ 70,030 $ - $ 70,030 Federal agency CMO - 9,287 - 9,287 Federal agency debt - 37,988 - 37,988 Municipal bonds - 4,915 - 4,915 U.S. Treasuries - 17,951 - 17,951 SBA pools - 16,225 - 16,225 |
Fair Values of Financial Instruments | For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair Value Measurements at June 30, 2022 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Cash and cash equivalents $ 280,137 $ 280,137 $ - $ - $ 280,137 Securities available-for-sale 238,298 - 238,298 - 238,298 Loans receivable held for investment 646,868 - - 607,927 607,927 Accrued interest receivables 2,694 162 475 2,057 2,694 Bank owned life insurance 3,211 3,211 - - 3,211 Financial Liabilities: Deposits $ 816,177 $ - $ 731,780 $ - $ 731,780 Federal Home Loan Bank advances 32,932 - 31,581 - 31,581 Securities sold under agreements to repurchase 67,292 - 62,716 - 62,716 Note payable 14,000 - - 14,000 14,000 Accrued interest payable 241 - 241 - 241 Fair Value Measurements at December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Cash and cash equivalents $ 231,520 $ 231,520 $ - $ - $ 231,520 Securities available-for-sale 156,396 - 156,396 - 156,396 Loans receivable held for investment 648,513 - - 623,778 623,778 Accrued interest receivables 3,372 19 1,089 2,264 3,372 Bank owned life insurance 3,190 3,190 - - 3,190 Financial Liabilities: Deposits $ 788,052 $ - $ 754,181 $ - $ 754,181 Federal Home Loan Bank advances 85,952 - 87,082 - 87,082 Securities sold under agreements to repurchase 51,960 - 51,960 - 51,960 Note payable 14,000 - - 14,000 14,000 Accrued interest payable 119 - 119 - 119 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stock-based Compensation [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity during the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Number Outstanding Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price Outstanding at beginning of period 450,000 $ 1.62 455,000 $ 1.67 Granted during period - - - - Exercised during period - - - - Forfeited or expired during period (200,000 ) - (5,000 ) 6.00 Outstanding at end of period 250,000 $ 1.62 450,000 $ 1.62 Exercisable at end of period 250,000 $ 1.62 360,000 $ 1.62 |
Options Outstanding and Exercisable | Options outstanding and exercisable at June 30, 2022 were as follows: Outstanding Exercisable Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Number Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value 250,000 3.63 years $ 1.62 250,000 $ 1.62 250,000 3.63 years $ 1.62 $ - 250,000 $ 1.62 $ - |
ESOP Plan (Tables)
ESOP Plan (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
ESOP Plan [Abstract] | |
Shares Held by ESOP | Shares held by the ESOP were as follows: June 30, 2022 December 31, 2021 (Dollars in thousands) Allocated to participants 1,062,326 1,065,275 Committed to be released 30,192 10,236 Suspense shares 501,490 562,391 Total ESOP shares 1,594,008 1,637,902 Fair value of unearned shares $ 532 $ 1,040 |
Stockholders' Equity and Regu_2
Stockholders' Equity and Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity and Regulatory Matters [Abstract] | |
Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios as of the dates indicated are presented below. Actual Minimum Required to Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio (Dollars in thousands) June 30 2022 Community Bank Leverage Ratio $ 171,773 15.87 % $ 92,005 9.00 % December 31 2021 Community Bank Leverage Ratio $ 98,590 9.32 % $ 89,871 8.50 % |
Business Combination, Summary (
Business Combination, Summary (Details) $ / shares in Units, $ in Thousands | Apr. 02, 2021 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2021 $ / shares |
Acquisition [Abstract] | ||||
Goodwill | $ 25,858 | $ 25,996 | ||
Common Stock Voting [Member] | ||||
Acquisition [Abstract] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||
Share conversion ratio | 13.626 | |||
Common Stock Non-Voting [Member] | ||||
Acquisition [Abstract] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||
Series A Preferred Stock [Member] | ||||
Acquisition [Abstract] | ||||
Share conversion ratio | 1 | |||
CFBanc Corporation [Member] | ||||
Acquisition [Abstract] | ||||
Assets acquired | $ 471,003 | |||
Gross loans | 227,669 | |||
Deposits acquired | 353,671 | |||
Consideration transferred | 66,300 | |||
Goodwill | $ 26,000 | |||
CFBanc Corporation [Member] | Common Class A [Member] | ||||
Acquisition [Abstract] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.50 | |||
CFBanc Corporation [Member] | Common Class B [Member] | ||||
Acquisition [Abstract] | ||||
Common stock, par value (in dollars per share) | $ / shares | 0.50 | |||
CFBanc Corporation [Member] | Series B Preferred Stock [Member] | ||||
Acquisition [Abstract] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.50 |
Business Combination, Assets Ac
Business Combination, Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 02, 2021 | Jun. 30, 2022 | Dec. 31, 2021 |
Liabilities assumed [Abstract] | |||
Goodwill recognized | $ 25,858 | $ 25,996 | |
CFBanc Corporation [Member] | |||
Assets acquired [Abstract] | |||
Cash and cash equivalents | $ 84,745 | ||
Securities available-for-sale | 150,052 | ||
Loans receivable held for investment [Abstract] | |||
Gross loans receivable held for investment | 227,669 | ||
Deferred fees and costs | (315) | ||
Allowance for loan losses | (2,178) | ||
Net loans receivable held for investment | 225,176 | ||
Accrued interest receivable | 1,637 | ||
FHLB and FRB stock | 1,061 | ||
Office properties and equipment | 5,152 | ||
Deferred tax assets, net | 890 | ||
Core deposit intangible | 0 | ||
Other assets | 2,290 | ||
Total assets | 471,003 | ||
Liabilities assumed [Abstract] | |||
Deposits | 353,671 | ||
Securities sold under agreements to repurchase | 59,945 | ||
FHLB advances | 3,057 | ||
Notes payable | 14,000 | ||
Accrued expenses and other liabilities | 4,063 | ||
Total liabilities | 434,736 | ||
Excess of assets acquired over liabilities assumed | 36,267 | ||
Consideration paid | 66,300 | ||
Goodwill recognized | 26,000 | ||
CFBanc Corporation [Member] | Fair Value Adjustments [Member] | |||
Assets acquired [Abstract] | |||
Cash and cash equivalents | 0 | ||
Securities available-for-sale | (77) | ||
Loans receivable held for investment [Abstract] | |||
Gross loans receivable held for investment | (1,784) | ||
Deferred fees and costs | 315 | ||
Allowance for loan losses | 2,178 | ||
Net loans receivable held for investment | 709 | ||
Accrued interest receivable | 0 | ||
FHLB and FRB stock | 0 | ||
Office properties and equipment | 1,801 | ||
Deferred tax assets, net | (1,608) | ||
Core deposit intangible | 3,329 | ||
Other assets | 0 | ||
Total assets | 4,154 | ||
Liabilities assumed [Abstract] | |||
Deposits | 51 | ||
Securities sold under agreements to repurchase | 0 | ||
FHLB advances | 109 | ||
Notes payable | 0 | ||
Accrued expenses and other liabilities | 0 | ||
Total liabilities | 160 | ||
Excess of assets acquired over liabilities assumed | 3,994 | ||
CFBanc Corporation [Member] | Fair Value [Member] | |||
Assets acquired [Abstract] | |||
Cash and cash equivalents | 84,745 | ||
Securities available-for-sale | 149,975 | ||
Loans receivable held for investment [Abstract] | |||
Gross loans receivable held for investment | 225,885 | ||
Deferred fees and costs | 0 | ||
Allowance for loan losses | 0 | ||
Net loans receivable held for investment | 225,885 | ||
Accrued interest receivable | 1,637 | ||
FHLB and FRB stock | 1,061 | ||
Office properties and equipment | 6,953 | ||
Deferred tax assets, net | (718) | ||
Core deposit intangible | 3,329 | ||
Other assets | 2,290 | ||
Total assets | 475,157 | ||
Liabilities assumed [Abstract] | |||
Deposits | 353,722 | ||
Securities sold under agreements to repurchase | 59,945 | ||
FHLB advances | 3,166 | ||
Notes payable | 14,000 | ||
Accrued expenses and other liabilities | 4,063 | ||
Total liabilities | 434,896 | ||
Excess of assets acquired over liabilities assumed | 40,261 | ||
Consideration paid | 66,257 | ||
Goodwill recognized | $ 25,996 |
Business Combination, Contractu
Business Combination, Contractual Amounts Due, Expected Cash Flows to Be Collected, Interest Component, and Fair Value of Loans Acquired (Details) - CFBanc Corporation [Member] $ in Thousands | Apr. 02, 2021 USD ($) |
Contractual Amounts Due, Expected Cash Flows to Be Collected, Interest Component, and Fair Value of Loans Acquired [Abstract] | |
Contractual amounts due | $ 231,432 |
Cash flows not expected to be collected | (3,666) |
Expected cash flows | 227,766 |
Interest component of expected cash flows | (1,881) |
Fair value of acquired loans | $ 225,885 |
Business Combination, Fair Valu
Business Combination, Fair Value of PCI Loans (Details) - CFBanc Corporation [Member] $ in Thousands | Apr. 02, 2021 USD ($) |
Purchased Credit Impaired Loans Acquired [Abstract] | |
Contractual amounts due | $ 231,432 |
Nonaccretable difference (cash flows not expected to be collected) | (3,666) |
Expected cash flows | 227,766 |
Purchased Credit Impaired Loans [Member] | |
Purchased Credit Impaired Loans Acquired [Abstract] | |
Contractual amounts due | 1,825 |
Nonaccretable difference (cash flows not expected to be collected) | (634) |
Expected cash flows | 1,191 |
Accretable yield | (346) |
Fair value of acquired loans | $ 845 |
Business Combination, Unaudited
Business Combination, Unaudited pro forma information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Unaudited pro forma information [Abstract] | ||
Net interest income | $ 5,828 | $ 11,018 |
Net income (loss) | $ 708 | $ (3,576) |
Basic earnings per share (in dollars per share) | $ 0.01 | $ (0.05) |
Diluted earnings per share (in dollars per share) | $ 0.01 | $ (0.05) |
Earnings Per Share of Common _3
Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share of Common Stock [Abstract] | ||||
Net income (loss) attributable to Broadway Financial Corporation | $ 1,854 | $ 701 | $ 2,812 | $ (2,786) |
Less net income (loss) attributable to participating securities | 12 | 0 | 18 | 0 |
Income (loss) available to common stockholders | $ 1,842 | $ 701 | $ 2,794 | $ (2,786) |
Weighted average common shares outstanding for basic earnings (loss) per common share (in shares) | 72,527,974 | 70,163,639 | 72,292,735 | 48,873,496 |
Add: dilutive effects of unvested restricted stock awards (in shares) | 461,047 | 140,247 | 467,890 | 0 |
Add: dilutive effects of assumed exercise of stock options (in shares) | 0 | 0 | 7,982 | 0 |
Weighted average common shares outstanding for diluted earnings (loss) per common share (in shares) | 72,989,021 | 70,303,886 | 72,768,607 | 48,873,496 |
Earnings (loss) per common share - basic (in dollars per share) | $ 0.03 | $ 0.01 | $ 0.04 | $ (0.06) |
Earnings (loss) per common share - diluted (in dollars per share) | $ 0.03 | $ 0.01 | $ 0.04 | $ (0.06) |
Securities, Summary (Details)
Securities, Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | $ 252,163 | $ 156,929 |
Gross unrealized gains | 227 | 475 |
Gross unrealized losses | (14,092) | (1,008) |
Fair value | 238,298 | 156,396 |
Federal Agency Mortgage-backed Securities [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 90,453 | 70,078 |
Gross unrealized gains | 13 | 196 |
Gross unrealized losses | (7,364) | (244) |
Fair value | 83,102 | 70,030 |
Federal Agency Collateralized Mortgage Obligations (CMO) [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 27,385 | 9,391 |
Gross unrealized gains | 79 | 11 |
Gross unrealized losses | (644) | (115) |
Fair value | 26,820 | 9,287 |
Federal Agency Debt [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 51,598 | 38,152 |
Gross unrealized gains | 47 | 106 |
Gross unrealized losses | (2,771) | (270) |
Fair value | 48,874 | 37,988 |
Municipal Bonds [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 4,882 | 4,898 |
Gross unrealized gains | 0 | 40 |
Gross unrealized losses | (543) | (23) |
Fair value | 4,339 | 4,915 |
US Treasuries [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 62,656 | 18,169 |
Gross unrealized gains | 63 | 0 |
Gross unrealized losses | (1,539) | (218) |
Fair value | 61,180 | 17,951 |
SBA Pools [Member] | ||
Available-for-Sale Investment Securities Portfolios [Abstract] | ||
Amortized cost | 15,189 | 16,241 |
Gross unrealized gains | 25 | 122 |
Gross unrealized losses | (1,231) | (138) |
Fair value | $ 13,983 | $ 16,225 |
Securities, Unrealized Gains (L
Securities, Unrealized Gains (Losses) and Fair Value (Details) $ in Thousands | Jun. 30, 2022 USD ($) Security | Dec. 31, 2021 USD ($) Security |
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Number of securities held with unrealized losses | Security | 175 | 129 |
Securities held with unrealized losses | $ 14,100 | $ 1,000 |
Number of securities in loss position for greater than one year | Security | 31 | 0 |
Unrealized losses on securities in loss position for greater than one year | $ 200 | |
Securities collateral pledged | 72,700 | $ 53,200 |
Securities of any one issuer, other than U.S. Government, exceeding 10% of stockholders' equity | 0 | 0 |
Asset Pledged as Collateral [Member] | Deposits [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Securities pledged to secure public deposits | 0 | 0 |
Federal Agency Mortgage-backed Securities [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Securities collateral pledged | 25,900 | |
U.S. Government Agency Securities [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Securities collateral pledged | 35,100 | 13,300 |
Mortgage Backed Securities [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Securities collateral pledged | 27,600 | 39,900 |
SBA Pools [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Securities collateral pledged | 6,200 | 9,800 |
Federal Agency Collateralized Mortgage Obligations (CMO) [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Securities collateral pledged | $ 3,800 | $ 4,200 |
Securities, Contractual Maturit
Securities, Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Available for sale, amortized cost [Abstract] | |||
Due in one year or less | $ 1,005 | ||
Due after one year through five years | 103,542 | ||
Due after five years through ten years | 40,021 | ||
Due after ten years | [1] | 107,595 | |
Amortized cost | 252,163 | $ 156,929 | |
Available for sale, gross unrealized gains [Abstract] | |||
Due in one year or less | 0 | ||
Due after one year through five years | 63 | ||
Due after five years through ten years | 55 | ||
Due after ten years | [1] | 109 | |
Gross unrealized gains | 227 | 475 | |
Available for sale, gross unrealized loss [Abstract] | |||
Due in one year or less | (5) | ||
Due after one year through five years | (3,393) | ||
Due after five years through ten years | (2,173) | ||
Due after ten years | [1] | (8,521) | |
Gross unrealized losses | (14,092) | (1,008) | |
Available for sale, fair value [Abstract] | |||
Due in one year or less | 1,000 | ||
Due after one year through five years | 100,212 | ||
Due after five years through ten years | 37,903 | ||
Due after ten years | [1] | 99,183 | |
Fair value | $ 238,298 | $ 156,396 | |
[1] Mortgage-backed securities, collateralized mortgage obligations and SBA pools do not have a single stated maturity date and therefore have been included in the “Due after ten years” category. |
Loans Receivable Held for Inv_3
Loans Receivable Held for Investment, Summary (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | ||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | $ 648,780 | $ 652,220 | |||||
Unamortized net deferred loan costs and premiums | 1,902 | 1,526 | |||||
Gross loans receivable | 650,682 | 653,746 | |||||
Credit and interest marks on purchased loans, net | (852) | (1,842) | |||||
Allowance for loan losses | (2,962) | $ (3,539) | (3,391) | $ (3,296) | $ (3,215) | $ (3,215) | |
Loans receivable, net | 646,868 | 648,513 | |||||
Real Estate [Member] | Single Family [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | 32,597 | 45,372 | |||||
Gross loans receivable | 32,643 | 45,372 | |||||
Allowance for loan losses | (120) | (157) | (145) | (170) | (275) | (296) | |
Real Estate [Member] | Multi-Family [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | 405,140 | 393,704 | |||||
Gross loans receivable | 407,236 | 395,230 | |||||
Allowance for loan losses | (2,278) | (2,771) | (2,657) | (2,606) | (2,473) | (2,433) | |
Real Estate [Member] | Commercial Real Estate [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | 85,156 | 93,193 | |||||
Gross loans receivable | 85,108 | 93,193 | |||||
Allowance for loan losses | (153) | (217) | (236) | (227) | (219) | (222) | |
Real Estate [Member] | Church [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | 20,626 | 22,503 | |||||
Gross loans receivable | 20,577 | 22,503 | |||||
Allowance for loan losses | (48) | (63) | (103) | (208) | (221) | (237) | |
Real Estate [Member] | Construction [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | 36,168 | 32,072 | |||||
Gross loans receivable | 36,026 | 32,072 | |||||
Allowance for loan losses | (221) | (236) | (212) | (81) | (22) | (22) | |
Commercial - Other [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | 64,591 | 46,539 | |||||
Gross loans receivable | 69,041 | 46,539 | |||||
Allowance for loan losses | (138) | (95) | (23) | (4) | (5) | (4) | |
Commercial - Other [Member] | PPP Loans [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | $ 3,600 | 18,000 | |||||
Loans receivable, interest rate | 1% | ||||||
Commercial - Other [Member] | PPP Loans [Member] | Minimum [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Loans receivable, term | 2 years | ||||||
Commercial - Other [Member] | PPP Loans [Member] | Maximum [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Loans receivable, term | 5 years | ||||||
SBA Loans [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | [1] | $ 4,451 | 18,837 | ||||
Gross loans receivable | 4,451 | 18,837 | |||||
Allowance for loan losses | (15) | ||||||
Consumer [Member] | |||||||
Loans Receivable Held for Investment [Abstract] | |||||||
Gross loans receivable before deferred loan costs and premiums | 51 | 0 | |||||
Gross loans receivable | 51 | 18,837 | |||||
Allowance for loan losses | $ (4) | $ 0 | $ (15) | $ 0 | $ 0 | $ (1) | |
[1]Including Paycheck Protection Program (PPP) loans. |
Loans Receivable Held for Inv_4
Loans Receivable Held for Investment, Purchased Credit Impaired (PCI) Loans (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) Loan | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Loan | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) Loan | |
Purchased Credit Impaired Loans [Abstract] | |||||
Number of acquired loans with evidence of credit deterioration of credit quality since origination at acquisition | Loan | 0 | 0 | |||
Loans receivable | $ 646,868 | $ 646,868 | $ 648,513 | ||
Number of purchased credit impaired loans classified as nonaccrual | Loan | 0 | 0 | 0 | ||
Purchased Credit Impaired Loans [Member] | |||||
Accretable Yield on Purchased Credit Impaired Loans [Roll Forward] | |||||
Balance at the beginning of the period | $ 165 | $ 0 | $ 883 | $ 0 | |
Deduction due to Payoffs | 0 | (707) | |||
Additions | 346 | 346 | |||
Accretion | 5 | 19 | 16 | 19 | |
Balance at the end of the period | 160 | $ 327 | 160 | $ 327 | |
Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||||
Purchased Credit Impaired Loans [Abstract] | |||||
Loans receivable | 160 | 160 | $ 883 | ||
Real Estate [Member] | Single Family [Member] | Purchased Credit Impaired Loans [Member] | |||||
Purchased Credit Impaired Loans [Abstract] | |||||
Loans receivable | 53 | 53 | 558 | ||
Real Estate [Member] | Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||||
Purchased Credit Impaired Loans [Abstract] | |||||
Loans receivable | 0 | 0 | 221 | ||
Commercial - Other [Member] | Purchased Credit Impaired Loans [Member] | |||||
Purchased Credit Impaired Loans [Abstract] | |||||
Loans receivable | $ 107 | $ 107 | $ 104 |
Loans Receivable Held for Inv_5
Loans Receivable Held for Investment, Activity in Allowance for Loan Losses by Loan Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||||
Beginning balance | $ 3,539 | $ 3,215 | $ 3,391 | $ 3,215 |
Provision for (recapture of) loan losses | (577) | 81 | (429) | 81 |
Recoveries | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Ending balance | 2,962 | 3,296 | 2,962 | 3,296 |
Real Estate [Member] | Single Family [Member] | ||||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||||
Beginning balance | 157 | 275 | 145 | 296 |
Provision for (recapture of) loan losses | (37) | (105) | (25) | (126) |
Recoveries | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Ending balance | 120 | 170 | 120 | 170 |
Real Estate [Member] | Multi-Family [Member] | ||||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||||
Beginning balance | 2,771 | 2,473 | 2,657 | 2,433 |
Provision for (recapture of) loan losses | (493) | 133 | (379) | 173 |
Recoveries | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Ending balance | 2,278 | 2,606 | 2,278 | 2,606 |
Real Estate [Member] | Commercial Real Estate [Member] | ||||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||||
Beginning balance | 217 | 219 | 236 | 222 |
Provision for (recapture of) loan losses | (64) | 8 | (83) | 5 |
Recoveries | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Ending balance | 153 | 227 | 153 | 227 |
Real Estate [Member] | Church [Member] | ||||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||||
Beginning balance | 63 | 221 | 103 | 237 |
Provision for (recapture of) loan losses | (15) | (13) | (55) | (29) |
Recoveries | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Ending balance | 48 | 208 | 48 | 208 |
Real Estate [Member] | Construction [Member] | ||||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||||
Beginning balance | 236 | 22 | 212 | 22 |
Provision for (recapture of) loan losses | (15) | 59 | 9 | 59 |
Recoveries | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Ending balance | 221 | 81 | 221 | 81 |
Commercial - Other [Member] | ||||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||||
Beginning balance | 95 | 5 | 23 | 4 |
Provision for (recapture of) loan losses | 43 | (1) | 115 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Ending balance | 138 | 4 | 138 | 4 |
Consumer [Member] | ||||
Allowance for Loan and Lease Losses by Loan Type [Roll Forward] | ||||
Beginning balance | 0 | 0 | 15 | 1 |
Provision for (recapture of) loan losses | 4 | 0 | (11) | (1) |
Recoveries | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Ending balance | $ 4 | $ 0 | $ 4 | $ 0 |
Loans Receivable Held for Inv_6
Loans Receivable Held for Investment, Allowance for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||
Individually evaluated for impairment | $ 7 | $ 7 | ||||
Collectively evaluated for impairment | 2,955 | 3,384 | ||||
Total ending allowance balance | 2,962 | $ 3,539 | 3,391 | $ 3,296 | $ 3,215 | $ 3,215 |
Loans [Abstract] | ||||||
Loans individually evaluated for impairment | 2,197 | 2,301 | ||||
Loans collectively evaluated for impairment | 500,837 | 447,692 | ||||
Subtotal | 503,034 | 449,993 | ||||
Loans acquired in the merger | 147,648 | 203,753 | ||||
Gross loans receivable | 650,682 | 653,746 | ||||
Real Estate [Member] | Single Family [Member] | ||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||
Individually evaluated for impairment | 3 | 3 | ||||
Collectively evaluated for impairment | 117 | 142 | ||||
Total ending allowance balance | 120 | 157 | 145 | 170 | 275 | 296 |
Loans [Abstract] | ||||||
Loans individually evaluated for impairment | 62 | 65 | ||||
Loans collectively evaluated for impairment | 22,849 | 32,599 | ||||
Subtotal | 22,911 | 32,664 | ||||
Loans acquired in the merger | 9,732 | 12,708 | ||||
Gross loans receivable | 32,643 | 45,372 | ||||
Real Estate [Member] | Multi-Family [Member] | ||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 2,278 | 2,657 | ||||
Total ending allowance balance | 2,278 | 2,771 | 2,657 | 2,606 | 2,473 | 2,433 |
Loans [Abstract] | ||||||
Loans individually evaluated for impairment | 271 | 282 | ||||
Loans collectively evaluated for impairment | 375,409 | 353,179 | ||||
Subtotal | 375,680 | 353,461 | ||||
Loans acquired in the merger | 31,556 | 41,769 | ||||
Gross loans receivable | 407,236 | 395,230 | ||||
Real Estate [Member] | Commercial Real Estate [Member] | ||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 153 | 236 | ||||
Total ending allowance balance | 153 | 217 | 236 | 227 | 219 | 222 |
Loans [Abstract] | ||||||
Loans individually evaluated for impairment | 0 | 0 | ||||
Loans collectively evaluated for impairment | 18,748 | 25,507 | ||||
Subtotal | 18,748 | 25,507 | ||||
Loans acquired in the merger | 66,360 | 67,686 | ||||
Gross loans receivable | 85,108 | 93,193 | ||||
Real Estate [Member] | Church [Member] | ||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||
Individually evaluated for impairment | 4 | 4 | ||||
Collectively evaluated for impairment | 44 | 99 | ||||
Total ending allowance balance | 48 | 63 | 103 | 208 | 221 | 237 |
Loans [Abstract] | ||||||
Loans individually evaluated for impairment | 1,864 | 1,954 | ||||
Loans collectively evaluated for impairment | 9,713 | 9,058 | ||||
Subtotal | 11,577 | 11,012 | ||||
Loans acquired in the merger | 9,000 | 11,491 | ||||
Gross loans receivable | 20,577 | 22,503 | ||||
Real Estate [Member] | Construction [Member] | ||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 221 | 212 | ||||
Total ending allowance balance | 221 | 236 | 212 | 81 | 22 | 22 |
Loans [Abstract] | ||||||
Loans individually evaluated for impairment | 0 | 0 | ||||
Loans collectively evaluated for impairment | 30,762 | 24,225 | ||||
Subtotal | 30,762 | 24,225 | ||||
Loans acquired in the merger | 5,264 | 7,847 | ||||
Gross loans receivable | 36,026 | 32,072 | ||||
Commercial - Other [Member] | ||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 138 | 23 | ||||
Total ending allowance balance | 138 | 95 | 23 | 4 | 5 | 4 |
Loans [Abstract] | ||||||
Loans individually evaluated for impairment | 0 | 0 | ||||
Loans collectively evaluated for impairment | 43,305 | 3,124 | ||||
Subtotal | 43,305 | 3,124 | ||||
Loans acquired in the merger | 25,736 | 43,415 | ||||
Gross loans receivable | 69,041 | 46,539 | ||||
Consumer [Member] | ||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||
Individually evaluated for impairment | 0 | |||||
Collectively evaluated for impairment | 4 | |||||
Total ending allowance balance | 4 | $ 0 | 15 | $ 0 | $ 0 | $ 1 |
Loans [Abstract] | ||||||
Loans individually evaluated for impairment | 0 | |||||
Loans collectively evaluated for impairment | 51 | |||||
Subtotal | 51 | |||||
Loans acquired in the merger | 0 | |||||
Gross loans receivable | 51 | 18,837 | ||||
SBA Loans [Member] | ||||||
Ending Allowance Balance Attributable to Loans [Abstract] | ||||||
Individually evaluated for impairment | 0 | |||||
Collectively evaluated for impairment | 15 | |||||
Total ending allowance balance | 15 | |||||
Loans [Abstract] | ||||||
Loans individually evaluated for impairment | 0 | |||||
Loans collectively evaluated for impairment | 0 | |||||
Subtotal | 0 | |||||
Loans acquired in the merger | 18,837 | |||||
Gross loans receivable | $ 4,451 | $ 18,837 |
Loans Receivable Held for Inv_7
Loans Receivable Held for Investment, Loans Individually Evaluated for Impairment by Loan Type (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
With an Allowance Recorded [Abstract] | ||
Allowance for loan losses allocated | $ 7 | $ 7 |
Total [Abstract] | ||
Unpaid principal balance | 2,510 | 2,301 |
Recorded investment | 2,197 | 2,301 |
Real Estate [Member] | Single Family [Member] | ||
With an Allowance Recorded [Abstract] | ||
Unpaid principal balance | 62 | 65 |
Recorded investment | 62 | 65 |
Allowance for loan losses allocated | 3 | 3 |
Real Estate [Member] | Multi-Family [Member] | ||
With No Related Allowance Recorded [Abstract] | ||
Unpaid principal balance | 271 | 282 |
Recorded investment | 271 | 282 |
Real Estate [Member] | Church [Member] | ||
With No Related Allowance Recorded [Abstract] | ||
Unpaid principal balance | 2,085 | 1,854 |
Recorded investment | 1,772 | 1,854 |
With an Allowance Recorded [Abstract] | ||
Unpaid principal balance | 92 | 100 |
Recorded investment | 92 | 100 |
Allowance for loan losses allocated | $ 4 | $ 4 |
Loans Receivable Held for Inv_8
Loans Receivable Held for Investment, Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||||
Average recorded investment | $ 2,534 | $ 4,361 | $ 2,550 | $ 4,512 |
Cash basis interest income recognized | 31 | 72 | 62 | 147 |
Foregone interest income | 23 | 19 | 54 | 38 |
Real Estate [Member] | Single Family [Member] | ||||
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||||
Average recorded investment | 63 | 316 | 64 | 426 |
Cash basis interest income recognized | 1 | 4 | 2 | 10 |
Real Estate [Member] | Multi-Family [Member] | ||||
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||||
Average recorded investment | 274 | 292 | 276 | 294 |
Cash basis interest income recognized | 5 | 5 | 10 | 10 |
Real Estate [Member] | Church [Member] | ||||
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||||
Average recorded investment | 2,197 | 3,742 | 2,210 | 3,766 |
Cash basis interest income recognized | 25 | 63 | 50 | 126 |
Commercial - Other [Member] | ||||
Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income [Abstract] | ||||
Average recorded investment | 0 | 11 | 0 | 26 |
Cash basis interest income recognized | $ 0 | $ 0 | $ 0 | $ 1 |
Loans Receivable Held for Inv_9
Loans Receivable Held for Investment, Aging of Recorded Investment in Past Due Loans by Loan Type (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | $ 650,682 | $ 653,746 |
Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 2,423 |
30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 2,423 |
Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 650,682 | 651,323 |
Real Estate [Member] | Single Family [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 32,643 | 45,372 |
Real Estate [Member] | Single Family [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Single Family [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 32,643 | 45,372 |
Real Estate [Member] | Multi-Family [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 407,236 | 395,230 |
Real Estate [Member] | Multi-Family [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 407,236 | 395,230 |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 85,108 | 93,193 |
Real Estate [Member] | Commercial Real Estate [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 2,423 |
Real Estate [Member] | Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 2,423 |
Real Estate [Member] | Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 85,108 | 90,770 |
Real Estate [Member] | Church [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 20,577 | 22,503 |
Real Estate [Member] | Church [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Church [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 20,577 | 22,503 |
Real Estate [Member] | Construction [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 36,026 | 32,072 |
Real Estate [Member] | Construction [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Real Estate [Member] | Construction [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 36,026 | 32,072 |
Commercial - Other [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 64,590 | 46,539 |
Commercial - Other [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Commercial - Other [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 64,590 | 46,539 |
SBA Loans [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 4,451 | 18,837 |
SBA Loans [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | |
SBA Loans [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | |
SBA Loans [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | |
SBA Loans [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | |
SBA Loans [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 4,451 | |
Consumer [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 51 | 18,837 |
Consumer [Member] | Total Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Consumer [Member] | 60-89 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Consumer [Member] | Greater than 90 Days Past Due [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | 0 | 0 |
Consumer [Member] | Current [Member] | ||
Aging of Recorded Investment in Past Due Loans by Loan Type [Abstract] | ||
Recorded total loans | $ 51 | $ 18,837 |
Loans Receivable Held for In_10
Loans Receivable Held for Investment, Recorded Investment in Non-accrual Loans by Loan Type (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans Receivable Held for Investment [Abstract] | ||
Total non-accrual loans | $ 627 | $ 684 |
Loans 90 days or more delinquent that were accruing interest | 0 | 0 |
Recorded total loans | 650,682 | 653,746 |
Delinquent [Member] | ||
Loans Receivable Held for Investment [Abstract] | ||
Recorded total loans | 0 | 2,423 |
Real Estate [Member] | Church [Member] | ||
Loans Receivable Held for Investment [Abstract] | ||
Total non-accrual loans | 627 | 684 |
Recorded total loans | 20,577 | 22,503 |
Real Estate [Member] | Delinquent [Member] | Church [Member] | ||
Loans Receivable Held for Investment [Abstract] | ||
Recorded total loans | $ 0 | $ 0 |
Loans Receivable Held for In_11
Loans Receivable Held for Investment, Troubled Debt Restructurings (TDRs) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) Loan | Jun. 30, 2021 Loan | Jun. 30, 2022 USD ($) Loan | Jun. 30, 2021 Loan | Dec. 31, 2021 USD ($) | |
Troubled Debt Restructurings (TDRs) [Abstract] | |||||
Loans classified as troubled debt restructurings | $ 2,000 | $ 2,000 | $ 1,800 | ||
Specific reserves allocated to TDRs | 7 | $ 7 | 7 | ||
Timely payment period for return to accrual status | 6 months | ||||
Commitments to lend additional amounts to customers with TDRs | $ 0 | $ 0 | 0 | ||
Number of loans modified | Loan | 0 | 0 | 0 | 0 | |
Non-accrual Status [Member] | |||||
Troubled Debt Restructurings (TDRs) [Abstract] | |||||
Loans classified as troubled debt restructurings | $ 164 | $ 164 | 188 | ||
Accrual Status [Member] | |||||
Troubled Debt Restructurings (TDRs) [Abstract] | |||||
Loans classified as troubled debt restructurings | $ 1,900 | $ 1,900 | $ 1,600 |
Loans Receivable Held for In_12
Loans Receivable Held for Investment, Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | $ 650,682 | $ 653,746 |
Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 566,194 | 573,048 |
Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 58,096 | 50,465 |
Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 10,411 | 10,865 |
Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 15,974 | 19,368 |
Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 7 | 0 |
Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Single Family [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 32,643 | 45,372 |
Real Estate [Member] | Single Family [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 31,607 | 42,454 |
Real Estate [Member] | Single Family [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 363 | 1,343 |
Real Estate [Member] | Single Family [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 265 | 271 |
Real Estate [Member] | Single Family [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 408 | 1,304 |
Real Estate [Member] | Single Family [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Single Family [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 407,236 | 395,230 |
Real Estate [Member] | Multi-Family [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 390,186 | 378,141 |
Real Estate [Member] | Multi-Family [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 4,694 | 7,987 |
Real Estate [Member] | Multi-Family [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 4,216 | 575 |
Real Estate [Member] | Multi-Family [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 8,140 | 8,527 |
Real Estate [Member] | Multi-Family [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Multi-Family [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 85,108 | 93,193 |
Real Estate [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 66,110 | 69,257 |
Real Estate [Member] | Commercial Real Estate [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 8,338 | 7,034 |
Real Estate [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 5,930 | 9,847 |
Real Estate [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 4,730 | 7,055 |
Real Estate [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Commercial Real Estate [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Church [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 20,577 | 22,503 |
Real Estate [Member] | Church [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 16,086 | 20,021 |
Real Estate [Member] | Church [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 2,095 | 0 |
Real Estate [Member] | Church [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Church [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 2,396 | 2,482 |
Real Estate [Member] | Church [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Church [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 36,026 | 32,072 |
Real Estate [Member] | Construction [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 8,998 | 10,522 |
Real Estate [Member] | Construction [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 27,028 | 21,550 |
Real Estate [Member] | Construction [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Real Estate [Member] | Construction [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Commercial - Other [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 64,590 | 46,539 |
Commercial - Other [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 49,367 | 33,988 |
Commercial - Other [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 14,916 | 12,551 |
Commercial - Other [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Commercial - Other [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 300 | 0 |
Commercial - Other [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 7 | 0 |
Commercial - Other [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
SBA Loans [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 4,451 | 18,837 |
SBA Loans [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 3,789 | 18,665 |
SBA Loans [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 662 | 0 |
SBA Loans [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 172 |
SBA Loans [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
SBA Loans [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
SBA Loans [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 51 | $ 18,837 |
Consumer [Member] | Pass [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 51 | |
Consumer [Member] | Watch [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | Special Mention [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | Substandard [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | Doubtful [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | 0 | |
Consumer [Member] | Loss [Member] | ||
Risk Grade Category of Loans by Loan Type [Abstract] | ||
Loans receivable | $ 0 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill and Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Apr. 01, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Changes in Carrying Amount of Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 25,996 | ||
Additions | $ 26,000 | 0 | |
Change in deferred tax estimate | (138) | $ 0 | |
Balance, end of period | 25,858 | ||
Changes in Carrying Amount of Core Deposit Intangibles [Roll Forward] | |||
Balance, beginning of period | 2,936 | ||
Amortization | 0 | ||
Balance, end of period | 2,719 | ||
Core Deposit Intangible [Member] | |||
Changes in Carrying Amount of Core Deposit Intangibles [Roll Forward] | |||
Balance, beginning of period | 2,936 | ||
Additions | $ 3,300 | 0 | |
Change in deferred tax estimate | 0 | ||
Amortization | (217) | ||
Balance, end of period | $ 2,719 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Components of Carrying Amount of Core Deposit Intangible (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Net core deposit intangible | $ 2,719 | $ 2,936 |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Core deposit intangible acquired | 3,329 | |
Less: accumulated amortization | (610) | |
Net core deposit intangible | $ 2,719 | $ 2,936 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Estimated amortization expense [Abstract] | ||
Net core deposit intangible | $ 2,719 | $ 2,936 |
Core Deposit Intangible [Member] | ||
Estimated amortization expense [Abstract] | ||
2022 | 219 | |
2023 | 390 | |
2024 | 336 | |
2025 | 315 | |
2026 | 304 | |
Thereafter | 1,155 | |
Net core deposit intangible | $ 2,719 | $ 2,936 |
Borrowings, Liabilities Securit
Borrowings, Liabilities Securities Sold under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Repurchase Agreements [Abstract] | ||
Securities sold under agreements to repurchase | $ 67,292 | $ 51,960 |
Securities collateral pledged | $ 72,700 | $ 53,200 |
Weighted average rate on repurchase agreements | 0.22% | 0.10% |
U.S. Government Agency Securities [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | $ 35,100 | $ 13,300 |
Mortgage Backed Securities [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | 27,600 | 39,900 |
Federal Agency CMO [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | 3,800 | 4,200 |
SBA Pools [Member] | ||
Repurchase Agreements [Abstract] | ||
Securities collateral pledged | $ 6,200 | $ 9,800 |
Borrowings, Other Borrowings (D
Borrowings, Other Borrowings (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) Note | Dec. 31, 2021 USD ($) | |
Debt Instrument [Abstract] | ||
Advances from Federal Home Loan Banks | $ 32,932 | $ 85,952 |
Loans receivable | 646,868 | 648,513 |
Notes payable | $ 14,000 | 14,000 |
Number of notes payables | Note | 2 | |
FHLB of Atlanta [Member] | ||
Debt Instrument [Abstract] | ||
FHLB advances, additional amount eligible to borrow | $ 13,800 | |
Note A [Member] | ||
Debt Instrument [Abstract] | ||
Debt instrument, maturity date | Dec. 01, 2040 | |
Notes payable | $ 9,900 | |
Interest rate | 5.20% | |
Note B [Member] | ||
Debt Instrument [Abstract] | ||
Debt instrument, maturity date | Dec. 01, 2040 | |
Notes payable | $ 4,100 | |
Interest rate | 0.24% | |
Federal Home Loan Bank Advances [Member] | ||
Debt Instrument [Abstract] | ||
Advances from Federal Home Loan Banks | $ 32,900 | $ 86,000 |
Weighted average interest rate | 1.34% | 1.85% |
Weighted average contractual maturity | 32 months | 22 months |
Federal Home Loan Bank Advances [Member] | Asset Pledged as Collateral [Member] | ||
Debt Instrument [Abstract] | ||
Loans receivable | $ 63,400 | $ 165,000 |
Federal Home Loan Bank Advances [Member] | FHLB of Atlanta [Member] | ||
Debt Instrument [Abstract] | ||
Borrowings approved amount, in terms of percentage on total assets | 25% |
Fair Value, Assets Measured on
Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | $ 238,298 | $ 156,396 |
Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 83,102 | 70,030 |
Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 26,820 | 9,287 |
Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 48,874 | 37,988 |
Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 4,339 | 4,915 |
U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 61,180 | 17,951 |
SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 13,983 | 16,225 |
Recurring Basis [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 83,102 | 70,030 |
Recurring Basis [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 26,820 | 9,287 |
Recurring Basis [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 48,874 | 37,988 |
Recurring Basis [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 4,339 | 4,915 |
Recurring Basis [Member] | U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 61,180 | 17,951 |
Recurring Basis [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 13,983 | 16,225 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 83,102 | 70,030 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 26,820 | 9,287 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 48,874 | 37,988 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 4,339 | 4,915 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 61,180 | 17,951 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 13,983 | 16,225 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Federal Agency Mortgage-backed [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Federal Agency CMO [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Federal Agency Debt [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Municipal Bonds [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasuries [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | SBA Pools [Member] | ||
Assets Measured on Recurring Basis [Abstract] | ||
Securities available-for-sale | $ 0 | $ 0 |
Fair Value, Assets Measured o_2
Fair Value, Assets Measured on Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Non-Recurring Basis [Member] | Impaired Loans Carried at Fair Value [Member] | ||
Assets Measured on Non-Recurring Basis [Abstract] | ||
Assets, fair value | $ 0 | $ 0 |
Fair Value, Fair Values of Fina
Fair Value, Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial Assets [Abstract] | ||
Securities available-for-sale | $ 238,298 | $ 156,396 |
Carrying Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 280,137 | 231,520 |
Securities available-for-sale | 238,298 | 156,396 |
Loans receivable held for investment | 646,868 | 648,513 |
Accrued interest receivables | 2,694 | 3,372 |
Bank owned life insurance | 3,211 | 3,190 |
Financial Liabilities [Abstract] | ||
Deposits | 816,177 | 788,052 |
Federal Home Loan Bank advances | 32,932 | 85,952 |
Securities sold under agreements to repurchase | 67,292 | 51,960 |
Note payable | 14,000 | 14,000 |
Accrued interest payable | 241 | 119 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 280,137 | 231,520 |
Securities available-for-sale | 238,298 | 156,396 |
Loans receivable held for investment | 607,927 | 623,778 |
Accrued interest receivables | 2,694 | 3,372 |
Bank owned life insurance | 3,211 | 3,190 |
Financial Liabilities [Abstract] | ||
Deposits | 731,780 | 754,181 |
Federal Home Loan Bank advances | 31,581 | 87,082 |
Securities sold under agreements to repurchase | 62,716 | 51,960 |
Note payable | 14,000 | 14,000 |
Accrued interest payable | 241 | 119 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 280,137 | 231,520 |
Securities available-for-sale | 0 | 0 |
Loans receivable held for investment | 0 | 0 |
Accrued interest receivables | 162 | 19 |
Bank owned life insurance | 3,211 | 3,190 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Note payable | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 238,298 | 156,396 |
Loans receivable held for investment | 0 | 0 |
Accrued interest receivables | 475 | 1,089 |
Bank owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 731,780 | 754,181 |
Federal Home Loan Bank advances | 31,581 | 87,082 |
Securities sold under agreements to repurchase | 62,716 | 51,960 |
Note payable | 0 | 0 |
Accrued interest payable | 241 | 119 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Loans receivable held for investment | 607,927 | 623,778 |
Accrued interest receivables | 2,057 | 2,264 |
Bank owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Note payable | 14,000 | 14,000 |
Accrued interest payable | $ 0 | $ 0 |
Stock-based Compensation, Long-
Stock-based Compensation, Long-Term Incentive Plan (Details) - 2018 LTIP [Member] - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022 | Feb. 28, 2022 | Feb. 28, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2018 | |
Stock-based Compensation [Abstract] | |||||||||
Contractual term of option awards | 10 years | ||||||||
Maximum number of shares that can be awarded (in shares) | 1,293,109 | ||||||||
Aggregate number of shares awarded to date under the plan (in shares) | 949,362 | 949,362 | |||||||
Shares available for awards (in shares) | 343,747 | 343,747 | |||||||
Directors [Member] | Restricted Stock [Member] | |||||||||
Stock-based Compensation [Abstract] | |||||||||
Restricted stock awards issued (in shares) | 47,187 | 20,736 | |||||||
Restricted stock awards vested (in shares) | 47,187 | 20,736 | |||||||
Stock based compensation expense | $ 0 | $ 0 | $ 84 | $ 45 | |||||
Officers and Employees [Member] | Restricted Stock [Member] | |||||||||
Stock-based Compensation [Abstract] | |||||||||
Restricted stock awards issued (in shares) | 495,262 | 0 | |||||||
Stock based compensation expense | $ 43 | $ 0 | $ 58 | $ 162 | |||||
Officers and Employees [Member] | Restricted Stock [Member] | Minimum [Member] | |||||||||
Stock-based Compensation [Abstract] | |||||||||
Award vesting period | 36 years | ||||||||
Officers and Employees [Member] | Restricted Stock [Member] | Maximum [Member] | |||||||||
Stock-based Compensation [Abstract] | |||||||||
Award vesting period | 60 years |
Stock-based Compensation, Stock
Stock-based Compensation, Stock Option Activity (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Number Outstanding [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 450,000 | 455,000 | ||
Granted during period (in shares) | 0 | 0 | ||
Exercised during period (in shares) | 0 | 0 | ||
Forfeited or expired during period (in shares) | (200,000) | (5,000) | ||
Outstanding at end of period (in shares) | 250,000 | 450,000 | 250,000 | 450,000 |
Exercisable at end of period (in shares) | 250,000 | 360,000 | 250,000 | 360,000 |
Weighted Average Exercise Price [Abstract] | ||||
Outstanding at beginning of period (in dollars per share) | $ 1.62 | $ 1.67 | ||
Granted during period (in dollars per share) | 0 | 0 | ||
Exercised during period (in dollars per share) | 0 | 0 | ||
Forfeited or expired during period (in dollars per share) | 0 | 6 | ||
Outstanding at end of period (in dollars per share) | $ 1.62 | $ 1.62 | 1.62 | 1.62 |
Exercisable at end of period (in dollars per share) | $ 1.62 | $ 1.62 | $ 1.62 | $ 1.62 |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||
Stock based compensation expense | $ 0 | $ 0 | $ 0 | $ 7 |
Stock-based Compensation, Optio
Stock-based Compensation, Options Outstanding and Exercisable (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Options, Outstanding [Abstract] | |
Number Outstanding (in shares) | shares | 250,000 |
Weighted Average Remaining Contractual Life | 3 years 7 months 17 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1.62 |
Aggregate Intrinsic Value | $ | $ 0 |
Options, Exercisable [Abstract] | |
Number Outstanding ( in shares) | shares | 250,000 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1.62 |
Aggregate Intrinsic Value | $ | $ 0 |
ESOP Plan (Details)
ESOP Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
ESOP Plan [Abstract] | ||||||
Number of common stock purchased by ESOP (in shares) | 1,493,679 | |||||
Purchase price of common stock (in dollars per share) | $ 1.59 | |||||
Total cost of shares purchased by ESOP | $ 2,400 | |||||
Loan to ESOP | $ 1,200 | |||||
Term of ESOP loan | 20 years | |||||
Compensation expense related to ESOP | $ 27 | $ 25 | $ 45 | $ 47 | ||
Shares Held by ESOP [Abstract] | ||||||
Allocated to participants (in shares) | 1,062,326 | 1,062,326 | 1,065,275 | |||
Committed to be released (in shares) | 30,192 | 30,192 | 10,236 | |||
Suspense shares (in shares) | 501,490 | 501,490 | 562,391 | |||
Total ESOP shares (in shares) | 1,594,008 | 1,594,008 | 1,637,902 | |||
Fair value of unearned shares | $ 532 | $ 532 | $ 1,040 | |||
Unearned ESOP shares | $ 797 | $ 797 | $ 829 |
Stockholders' Equity and Regu_3
Stockholders' Equity and Regulatory Matters (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Jun. 07, 2022 USD ($) shares | Mar. 31, 2022 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Actual [Abstract] | ||||
Community Bank Leverage Ratio, Amount | $ 171,773 | $ 98,590 | ||
Community Bank Leverage Ratio, Ratio | 0.1587 | 0.0932 | ||
Minimum Required To Be Well Capitalized Under Prompt Corrective Action Provisions [Abstract] | ||||
Community Bank Leverage Ratio, Amount | $ 92,005 | $ 89,871 | ||
Community Bank Leverage Ratio, Ratio | 0.0900 | 0.0850 | ||
Non-Cumulative Perpetual Preferred Stock, Series C [Member] | ||||
Stockholders' Equity [Abstract] | ||||
Preferred stock, shares issued (in shares) | shares | 150,000 | 150,000 | 0 | |
Capital investment | $ 150,000 | $ 150,000 | $ 0 | |
Preferred initial dividend rate for first two years after issuance | 0% | |||
Preferred stock, period for initial dividend rate | 2 years | |||
Floor dividend rate | 0.50% | |||
Ceiling dividend rate | 2% | |||
Cumulative Redeemable Perpetual Preferred stock, Series A [Member] | ||||
Stockholders' Equity [Abstract] | ||||
Preferred stock, aggregate liquidation rate | $ 3,000 | |||
Preferred stock, shares issued (in shares) | shares | 0 | 3,000 | ||
Capital investment | $ 0 | $ 3,000 | ||
Common Class A [Member] | ||||
Stockholders' Equity [Abstract] | ||||
Common stock, shares upon conversion from preferred stock (in shares) | shares | 1,193,317 | |||
Exchange price (in dollars per share) | $ / shares | $ 2.51 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Valuation Allowance [Abstract] | |
Cumulative losses lookback period | 2 years |
Deferred tax assets, valuation allowance | $ 369 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] | 6 Months Ended |
Jun. 30, 2022 Customer | |
Deposits [Member] | |
Concentration Percentage [Abstract] | |
Number of significant customers | 1 |
Deposits [Member] | One Customer [Member] | |
Concentration Percentage [Abstract] | |
Percentage of concentration risk | 16% |
Securities Sold under Agreements to Repurchase [Member] | |
Concentration Percentage [Abstract] | |
Number of significant customers | 1 |
Securities Sold under Agreements to Repurchase [Member] | One Customer [Member] | |
Concentration Percentage [Abstract] | |
Percentage of concentration risk | 80% |