Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 06, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-50755 | ||
Entity Registrant Name | OPTIMUMBANK HOLDINGS, INC. | ||
Entity Central Index Key | 0001288855 | ||
Entity Tax Identification Number | 55-0865043 | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Address, Address Line One | 2929 East Commercial Blvd. Suite 303 | ||
Entity Address, City or Town | Fort Lauderdale | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33308 | ||
City Area Code | (954) | ||
Local Phone Number | 900-2800 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | OPHC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 16,291,992 | ||
Entity Common Stock, Shares Outstanding | 7,250,219 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2023 Annual Meeting of Shareholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A within 120 days of the issuer’s fiscal year end are incorporated by reference into Part III, Items 10 through 14, of this Annual Report on Form 10-K | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 400 | ||
Auditor Name | HACKER, JOHNSON & SMITH PA | ||
Auditor Location | Fort Lauderdale, Florida |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and due from banks | $ 19,788 | $ 13,681 |
Interest-bearing deposits with banks | 52,048 | 45,289 |
Total cash and cash equivalents | 71,836 | 58,970 |
Debt securities available for sale | 25,102 | 34,394 |
Debt securities held-to-maturity (fair value of $504 and $1,071) | 540 | 1,040 |
Loans, net of allowance for loan losses of $5,793 and $3,075 | 477,218 | 247,902 |
Federal Home Loan Bank stock | 600 | 793 |
Premises and equipment, net | 934 | 843 |
Right-of-use lease assets | 2,119 | 1,737 |
Accrued interest receivable | 1,444 | 971 |
Deferred tax asset | 3,836 | 3,442 |
Other assets | 1,590 | 1,786 |
Total assets | 585,219 | 351,878 |
Liabilities: | ||
Noninterest-bearing demand deposits | 159,193 | 124,119 |
Savings, NOW and money-market deposits | 108,726 | 155,102 |
Time deposits | 239,980 | 13,236 |
Total deposits | 507,899 | 292,457 |
Federal Home Loan Bank advances | 10,000 | 18,000 |
Official checks | 110 | 140 |
Operating lease liabilities | 2,172 | 1,775 |
Other liabilities | 2,458 | 996 |
Total liabilities | 522,639 | 313,368 |
Commitments and contingencies (Notes 8 and 14) | ||
Stockholders’ equity: | ||
Preferred stock value | ||
Common stock, $.01 par value; 10,000,000 shares authorized, 7,058,897 and 4,775,281 shares issued and outstanding | 71 | 48 |
Additional paid-in capital | 90,408 | 65,193 |
Accumulated deficit | (22,073) | (26,096) |
Accumulated other comprehensive loss | (5,826) | (635) |
Total stockholders’ equity | 62,580 | 38,510 |
Total liabilities and stockholders’ equity | 585,219 | 351,878 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock value | ||
Series B Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock value |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt securities held to maturity, fair value | $ 504 | $ 1,071 |
Loans, allowance for loan losses | $ 5,793 | $ 3,075 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 7,058,897 | 4,775,281 |
Common stock, shares outstanding | 7,058,897 | 4,775,281 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 1,520 | 1,520 |
Preferred Stock, Shares Issued | 1,360 | 760 |
Preferred Stock, Shares Outstanding | 1,360 | 760 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income: | ||
Loans | $ 17,952 | $ 9,756 |
Debt securities | 649 | 488 |
Other | 1,281 | 145 |
Total interest income | 19,882 | 10,389 |
Interest expense: | ||
Deposits | 3,234 | 651 |
Borrowings | 812 | 334 |
Total interest expense | 4,046 | 985 |
Net interest income | 15,836 | 9,404 |
Provision for loan losses | 3,466 | 1,173 |
Net interest income after provision for loan losses | 12,370 | 8,231 |
Noninterest income: | ||
Service charges and fees | 2,550 | 1,331 |
Gain on sale of premises and equipment | 340 | |
Other | 410 | 103 |
Total noninterest income | 2,960 | 1,774 |
Noninterest expenses: | ||
Salaries and employee benefits | 5,449 | 3,653 |
Professional fees | 546 | 563 |
Occupancy and equipment | 717 | 650 |
Data processing | 1,227 | 765 |
Insurance | 96 | 95 |
Regulatory assessment | 255 | 164 |
Other | 1,648 | 1,046 |
Total noninterest expenses | 9,938 | 6,936 |
Net earnings before income taxes (benefit) | 5,392 | 3,069 |
Income tax expense (benefit) | 1,369 | (3,227) |
Net earnings | $ 4,023 | $ 6,296 |
Net earnings per share - basic and diluted | $ 0.68 | $ 1.61 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Net earnings | $ 4,023 | $ 6,296 |
Change in unrealized loss on debt securities: | ||
Unrealized loss arising during the year | (6,970) | (891) |
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 16 | 110 |
Other comprehensive loss before income taxes | (6,954) | (781) |
Deferred income taxes | 1,763 | 215 |
Total other comprehensive loss | (5,191) | (566) |
Comprehensive (loss) income | $ (1,168) | $ 5,730 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Series A Preferred Stock [Member] Preferred Stock [Member] | Series B Preferred Stock [Member] Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 32 | $ 50,263 | $ (32,392) | $ (69) | $ 17,834 | ||
Beginning balance, shares at Dec. 31, 2020 | 400 | 3,203,455 | |||||
Proceeds from the sale of preferred stock | 9,000 | 9,000 | |||||
Proceeds from the sale of preferred stock, shares | 360 | ||||||
Proceeds from the sale of common stock | $ 9 | 3,629 | 3,638 | ||||
Proceeds from the sale of common stock, shares | 809,100 | ||||||
Stock-based compensation | 199 | 199 | |||||
Stock-based compensation, shares | 62,112 | ||||||
Common stock issued for junior subordinated debenture interest payable | 41 | 41 | |||||
Common stock issued for junior subordinated debenture interest payable, shares | 11,042 | ||||||
Common stock issued in exchange for Trust Preferred Securities | $ 7 | 2,061 | 2,068 | ||||
Common stock issued in exchange for Trust Preferred Securities, shares | 689,572 | ||||||
Net change in unrealized loss on debt securities available for sale | (676) | (676) | |||||
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 110 | 110 | |||||
Net earnings | 6,296 | 6,296 | |||||
Ending balance, value at Dec. 31, 2021 | $ 48 | 65,193 | (26,096) | (635) | 38,510 | ||
Ending balance, shares at Dec. 31, 2021 | 760 | 4,775,281 | |||||
Proceeds from the sale of preferred stock | 15,000 | 15,000 | |||||
Proceeds from the sale of preferred stock, shares | 600 | ||||||
Proceeds from the sale of common stock | $ 22 | 9,844 | 9,866 | ||||
Proceeds from the sale of common stock, shares | 2,191,940 | ||||||
Stock-based compensation | $ 1 | 371 | 372 | ||||
Stock-based compensation, shares | 91,676 | ||||||
Net change in unrealized loss on debt securities available for sale | (5,207) | (5,207) | |||||
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 16 | 16 | |||||
Net earnings | 4,023 | 4,023 | |||||
Ending balance, value at Dec. 31, 2022 | $ 71 | $ 90,408 | $ (22,073) | $ (5,826) | $ 62,580 | ||
Ending balance, shares at Dec. 31, 2022 | 1,360 | 7,058,897 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net earnings | $ 4,023 | $ 6,296 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Provision for loan losses | 3,466 | 1,173 |
Depreciation and amortization | 231 | 210 |
Deferred income taxes | 1,369 | (3,227) |
Net accretion of fees, premiums and discounts | (271) | (772) |
Stock-based compensation expense | 372 | 199 |
Gain on sale of premises and equipment, net | (340) | |
(Increase) decrease in accrued interest receivable | (473) | 365 |
Amortization of right-of-use asset | 338 | 92 |
Net decrease in operating lease liabilities | (323) | (73) |
Decrease (increase) in other assets | 196 | (809) |
Increase in official checks and other liabilities | 1,432 | 649 |
Net cash provided by operating activities | 10,360 | 3,763 |
Cash flows from investing activities: | ||
Purchase of debt securities available for sale | (19,513) | |
Principal repayments of debt securities available for sale | 2,127 | 2,915 |
Principal repayments of debt securities held-to-maturity | 509 | 2,409 |
Net increase in loans | (232,309) | (95,568) |
Purchases of premises and equipment | (322) | (381) |
Proceeds from sale of premises and equipment | 1,081 | |
Redemption of FHLB stock | 193 | 299 |
Net cash used in investing activities | (229,802) | (108,758) |
Cash flows from financing activities: | ||
Net increase in deposits | 215,442 | 101,698 |
Net decrease in FHLB Advances | (8,000) | (5,000) |
Proceeds from sale of preferred stock | 15,000 | 9,000 |
Proceeds from sale of common stock | 9,866 | 3,638 |
Net cash provided by financing activities | 232,308 | 109,336 |
Net increase in cash and cash equivalents | 12,866 | 4,341 |
Cash and cash equivalents at beginning of the year | 58,970 | 54,629 |
Cash and cash equivalents at end of the year | 71,836 | 58,970 |
Cash paid during the year for: | ||
Interest | 3,929 | 1,041 |
Income taxes | ||
Noncash transactions: | ||
Change in accumulated other comprehensive loss, net change in unrealized loss on debt securities available for sale, net of income taxes | (5,191) | (566) |
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 16 | 110 |
Right-of use lease assets obtained in exchange for operating lease liabilities | 720 | 925 |
Issuance of common stock for Junior Subordinated Debenture | 2,068 | |
Issuance of common stock for Junior Subordinated Debenture interest payable | $ 41 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Organization 100 Basis of Presentation Subsequent Events Use of Estimates Cash and Cash Equivalents The Company may be required by law or regulation to maintain cash reserves in the form of vault cash or deposit with Federal Reserve Banks or in Pass-through accounts with other banks. This requirement is based on the amount of the Bank’s transaction deposit accounts. As of December 31, 2022 and 2021, the Bank did not have a reserve requirement as the Federal Reserve Board lowered the requirements to zero for all depository institutions. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued Debt Securities Management evaluates debt securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. A debt security is impaired if the fair value is less than its carrying value at the financial statement date. When a debt security is impaired, the Company determines whether this impairment is temporary or other-than-temporary. In estimating other-than-temporary impairment (“OTTI”) losses, management assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of these criteria is met, the entire difference between amortized cost and fair value is recognized in earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment recognized in operations is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. Management utilizes cash flow models to segregate impairments to distinguish between impairment related to credit losses and impairment related to other factors. To assess for OTTI, management considers, among other things, (i) the severity and duration of the impairment; (ii) the ratings of the debt security; (iii) the overall transaction structure (the Company’s position within the structure, the aggregate, near-term financial performance of the underlying collateral, delinquencies, defaults, loss severities, recoveries, prepayments, cumulative loss projections, and discounted cash flows); and (iv) the timing and magnitude of a break in modeled cash flows. Loans Commitment fees and loan origination fees are deferred and certain direct origination costs are capitalized. Both are recognized as an adjustment of the yield of the related loan. The accrual of interest on loans is discontinued at the time the loan is ninety days delinquent unless the loan is well collateralized and in process of collection. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued Allowance for Loan Losses The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loans are lower than the carrying value of those loans. The general component covers all other loans and is based on historical loss experience adjusted for qualitative factors. The historical loss component of the allowance is determined by losses recognized by portfolio segment over the preceding three years. The historical loss experience is adjusted for the risks by each portfolio segment. Risk factors impacting loans in each of the portfolio segments include: (1) changes in national, regional and local economic conditions that affect the collectability of the loan portfolio (2) changes in collateral value of loans (3) changes in lending policies and procedures, risk selection and underwriting standards (4) changes in the volume and severity of past due loans, nonaccrual loans or loans classified special mention, substandard, doubtful or loss (5) the existence and effect of any concentrations of credit and changes in the level of such concentrations (6) changes in the nature and volume of the loan portfolio and terms of loans, (7) changes in the experience, ability and depth of lending management and other relevant staff, (8) quality of loan review, (9) the effect of other external factors, trends or uncertainties that could affect management’s estimate of probable losses, such as competition and industry conditions. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis, by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued Premises and Equipment Leases Transfer of Financial Assets Revenue Recognition Service Charges on Deposit Accounts Gain on sale of premises and equipment (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued Income Taxes Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company provides reserves for potential payments of tax related to uncertain tax positions. These reserves are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company and the Bank file a consolidated income tax return. Income taxes are allocated proportionately to the Company and the Bank as though separate income tax returns were filed. Advertising 59,000 26,000 Stock Compensation Plan Net Earnings Per Share Schedule of Weighted Average Number of Common Shares Outstanding 2022 2021 Year Ended December 31, 2022 2021 Weighted-average number of common shares outstanding used to calculate basic and diluted net earnings per common share 5,954,847 3,899,118 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued Off-Balance-Sheet Financial Instruments Fair Value Measurements Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort. The following describes valuation methodologies used for assets measured at fair value: Debt Securities. Impaired Loans (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued Fair Values of Financial Instruments Cash and Cash Equivalents. Debt Securities. Loans. Federal Home Loan Bank Stock. 100 Accrued Interest Receivable. Deposit Liabilities. Federal Home Loan Bank Advances. Off-Balance-Sheet Financial Instruments. Comprehensive Loss (Income) Accumulated other comprehensive loss consists of the following (in thousands): Schedule of Accumulated and Other Comprehensive (Loss) 2022 2021 December 31, 2022 2021 Unrealized loss on debt securities available for sale $ (7,786 ) $ (816 ) Unamortized portion of unrealized loss related to debt securities available for sale transferred to debt securities held-to-maturity (18 ) (34 ) Income tax benefit 1,978 215 Accumulated other comprehensive loss $ (5,826 ) $ (635 ) (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued Reclassifications Adoption on New Accounting Standards: Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost, and off-balance-sheet (OBS) credit exposures. Results for reporting periods beginning after January 1, 2023, will be presented under ASC 326 while prior period amounts will continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $ 241,000 |
Debt Securities
Debt Securities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities | |
Debt Securities | (2) Debt Securities Schedule of Amortized Cost and Approximate Fair Values of Debt Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2022: Available for sale: SBA Pool Securities $ 834 $ 1 $ (18 ) $ 817 Collateralized mortgage obligations 145 — (15 ) 130 Taxable municipal securities 16,729 — (5,109 ) 11,620 Mortgage-backed securities 15,180 — (2,645 ) 12,535 Total $ 32,888 $ 1 $ (7,787 ) $ 25,102 Held-to-maturity: Collateralized mortgage obligations $ 475 $ — $ (35 ) $ 440 Mortgage-backed securities 65 — (1 ) 64 Total $ 540 $ — $ (36 ) $ 504 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (2) Debt Securities, Continued Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2021: Available for sale: SBA Pool Securities $ 1,097 $ 1 $ (26 ) $ 1,072 Collateralized mortgage obligations 210 7 — 217 Taxable municipal securities 16,766 19 (359 ) 16,426 Mortgage-backed securities 17,137 19 (477 ) 16,679 Total $ 35,210 $ 46 $ (862 ) $ 34,394 Held-to-maturity: Collateralized mortgage obligations $ 854 $ 28 $ — $ 882 Mortgage-backed securities 186 3 — 189 Total $ 1,040 $ 31 $ — $ 1,071 There were no Debt securities with gross unrealized losses, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position, is as follows (in thousands): Schedule of Debt Securities with Gross Unrealized Losses, by Investment Category Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value At December 31, 2022: Available for Sale: SBA Pool Securities $ 18 $ 657 $ — $ — Collateralized mortgage obligations $ — $ — $ 15 $ 130 Taxable municipal securities $ 5,109 $ 11,620 $ — $ — Mortgage-backed securities $ 2,621 $ 12,292 $ 24 $ 243 Total $ 7,748 $ 24,569 $ 39 $ 373 At December 31, 2021: Available for Sale: SBA Pool Securities $ 26 $ 895 $ — $ — Taxable municipal securities $ 81 $ 1,853 $ 278 $ 12,828 Mortgage-backed securities $ 242 $ 6,179 $ 235 $ 9,984 Total $ 349 $ 8,927 $ 513 $ 22,812 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (2) Debt Securities, Continued At December 31, 2022 and 2021, the unrealized losses on forty twenty-nine The Company’s debt securities available-for-sale and held-to-maturity all have contractual maturity dates which are greater than ten years as of December 31, 2022. Expected maturities of these debt securities will differ from contractual maturities because borrowers have the right to call or repay obligations with or without call or prepayment penalties. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans | (3) Loans Schedule of Components of Loans At December 31, 2022 2021 Residential real estate $ 50,354 $ 32,583 Multi-family real estate 69,555 48,592 Commercial real estate 310,695 129,468 Land and construction 17,286 3,772 Commercial 5,165 14,157 Consumer 30,323 22,827 Total loans 483,378 251,399 Deduct: Net deferred loan fees (367 ) (422 ) Allowance for loan losses (5,793 ) (3,075 ) Loans, net $ 477,218 $ 247,902 The Company makes the majority of its loans to borrowers in Broward County, Florida and portions of Palm Beach and Miami-Dade Counties, Florida. Although the Company has a diversified loan portfolio, a significant portion of its borrowers’ ability to repay their loans and meet their contractual obligations to the Company is dependent upon the economy in Broward, Palm Beach and Miami-Dade Counties, Florida. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. Schedule of Changes in Allowance for Loan Losses Residential Real Estate Multi- Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Total Year Ended December 31, 2022: Beginning balance $ 482 $ 535 $ 1,535 $ 32 $ 74 $ 417 $ 3,075 Provision for loan losses 286 213 1,727 141 244 855 3,466 Charge-offs — — — — (97 ) (804 ) (901 ) Recoveries — — — — 56 97 153 Ending balance $ 768 $ 748 $ 3,262 $ 173 $ 277 $ 565 $ 5,793 Year Ended December 31, 2021: Beginning balance $ 463 $ 253 $ 884 $ 52 $ 103 $ 151 $ 1,906 Credit) provision for loan losses (11 ) 282 651 (28 ) (231 ) 510 1,173 Charge-offs — — — — (23 ) (254 ) (277 ) Recoveries 30 — — 8 225 10 273 Ending balance $ 482 $ 535 $ 1,535 $ 32 $ 74 $ 417 $ 3,075 The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2022 and 2021 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Total At December 31, 2022: Individually evaluated for impairment: Recorded investment $ — $ — $ — $ — $ — $ — $ — Balance in allowance for loan losses $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment: Recorded investment $ 50,354 $ 69,555 $ 310,695 $ 17,286 $ 5,165 $ 30,323 $ 483,378 Balance in allowance for loan losses $ 768 $ 748 $ 3,262 $ 173 $ 277 $ 565 $ 5,793 At December 31, 2021: Individually evaluated for impairment: Recorded investment $ — $ — $ — $ — $ — $ — $ — Balance in allowance for loan losses $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment: Recorded investment $ 32,583 $ 48,592 $ 129,468 $ 3,772 $ 14,157 $ 22,827 $ 251,399 Balance in allowance for loan losses $ 481 $ 535 $ 1,535 $ 32 $ 72 $ 420 $ 3,075 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. Residential Real Estate, Multi-Family Real Estate, Commercial Real Estate, Land and Construction Commercial Consumer (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. Schedule of Loans by Credit Quality Pass OLEM (Other Loans Especially Mentioned) Sub- standard Doubtful Loss Total At December 31, 2022: Residential real estate $ 50,354 $ — $ — $ — $ — $ 50,354 Multi-family real estate 69,555 — — — — 69,555 Commercial real estate 309,458 — 1,237 — — 310,695 Land and construction 17,286 — — — — 17,286 Commercial 5,165 — — — — 5,165 Consumer 30,323 — — — — 30,323 Total $ 482,141 $ — $ 1,237 $ — $ — $ 483,378 A December 31, 2021: Residential real estate $ 30,080 $ — $ 2,503 $ — $ — $ 32,583 Multi-family real estate 47,962 630 — — — 48,592 Commercial real estate 125,620 3,848 — — — 129,468 Land and construction 3,772 — — — — 3,772 Commercial 13,960 197 — — — 14,157 Consumer 22,827 — — — — 22,827 Total $ 244,221 $ 4,675 $ 2,503 $ — $ — $ 251,399 Internally assigned loan grades are defined as follows: Pass – a Pass loan’s primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary. These are loans that conform in all aspects to bank policy and regulatory requirements, and no repayment risk has been identified. OLEM – an Other Loan Especially Mentioned has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date. Substandard – a Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Included in this category are loans that are current on their payments, but the Bank is unable to document the source of repayment. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – a loan classified as Doubtful has all the weaknesses inherent in one classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company charges off any loan classified as Doubtful. Loss – a loan classified as Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company fully charges off any loan classified as Loss. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. Schedule of Age Analysis of Past-due Loans Accruing Loans 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Nonaccrual Loans Total Loans At December 31, 2022: Residential real estate $ — $ — $ — $ — $ 50,354 $ — $ 50,354 Multi-family real estate — — — — 69,555 — 69,555 Commercial real estate — — — — 310,695 — 310,695 Land and construction — — — — 17,286 — 17,286 Commercial — — — — 5,165 — 5,165 Consumer 150 27 — 177 30,146 — 30,323 Total $ 150 $ 27 $ — $ 177 $ 483,201 $ — $ 483,378 At December 31, 2021: Residential real estate $ 198 $ — $ — $ 198 $ 32,385 $ — $ 32,583 Multi-family real estate — — — — 48,592 — 48,592 Commercial real estate — — — — 129,468 — 129,468 Land and construction — — — — 3,772 — 3,772 Commercial — — — — 14,157 — 14,157 Consumer 69 — — 69 22,758 — 22,827 Total $ 267 $ — $ — $ 267 $ 251,132 $ — $ 251,399 The Company had no The average recorded investment in impaired loans and interest income recognized and received on impaired loans are as follows (in thousands): Schedule of Interest Income Recognized and Received on Impaired Loans For the Year Ended December 31, 2022 2021 Average Recorded Investment Interest Income Recognized Interest Income Received Average Recorded Investment Interest Income Recognized Interest Income Received Residential real estate $ — $ $ — $ — $ — $ — Commercial real estate $ — $ — $ — $ 658 $ 7 $ 7 Commercial $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ 658 $ 7 $ 7 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | (4) Premises and Equipment Schedule of Premises and equipment 2022 2021 At December 31, 2022 2021 Furniture, fixtures and equipment $ 1,138 $ 819 Leasehold improvements 657 654 Total, at cost 1,795 1,473 Less accumulated depreciation and amortization (861 ) (630 ) Premises and equipment, net $ 934 $ 843 During the year ended December 31, 2021, the Company sold one of its branch locations to a third-party. The sale was completed in November 2021 for $ 1,081,000 340,000 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | (5) Leases 8.3 Schedule of Components of Lease Cost 2022 2021 For the year ended December 31, 2022 2021 Operating lease cost $ 280 $ 213 Cash paid for amounts included in measurement of lease liabilities $ 261 $ 195 Schedule of Operating Lease Liability 2022 2021 At December 31, 2022 2021 Operating lease right-of-use assets $ 2,119 1,737 Operating lease liabilities $ 2,172 1,775 Weighted-average remaining lease term 8.4 8.3 Weighted-average discount rate 2.3 % 2.11 % (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (5) Leases. Continued Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases At December 31, 2022 2023 $ 264 2024 270 2025 276 2026 288 2027 314 Thereafter 1,068 Total future minimum lease payments 2,480 Less interest (308 ) Total operating lease liability $ 2,172 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits | (6) Deposits The aggregate amount of time deposits with a minimum denomination of $ 250,000 47.3 1.7 A schedule of maturities of time deposits at December 31, 2022 follows (in thousands): Schedule of Maturities of Time Deposits Maturing Year Ending December 31, Amount 2023 $ 223,840 2024 15,620 2025 519 2026 1 Total $ 239,980 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Other Available Credit | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank Advances and Other Available Credit | (7) Federal Home Loan Bank Advances and Other Available Credit The maturities and interest rates on the Federal Home Loan Bank (“FHLB”) advances were as follows (dollars in thousands) Schedule of Maturities and Interest Rates on the Federal Home Loan Bank Advances Maturity Year Ending Interest At December 31, December 31, Rate 2022 2021 2024 1.96 % $ — $ 4,000 2025 1.01 % 10,000 10,000 2029 1.69 % — 4,000 $ 10,000 $ 18,000 At December 31, 2022, three FHLB Advances were structured advances with potential calls on a quarterly basis. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (7) Federal Home Loan Bank Advances and Other Available Credit Continued FHLB advances are collateralized by a blanket lien requiring the Company to maintain certain first mortgage loans as pledged collateral. At December 31, 2022, the Company had remaining credit availability of $ 125.7 211.5 At December 31, 2022, the Company also had lines of credit amounting to $ 19.5 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | (8) Financial Instruments The estimated fair values of the Company’s financial instruments were as follows (in thousands): Schedule of Estimated Fair Value of Financial Instruments At December 31, 2022 At December 31, 2021 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 71,836 $ 71,836 1 $ 58,970 $ 58,970 1 Debt Securities available for sale 25,102 25,102 2 34,394 34,394 2 Debt Securities held-to-maturity 540 504 2 1,040 1,071 2 Loans 477,218 476,566 3 247,902 247,788 3 Federal Home Loan Bank stock 600 600 3 793 793 3 Accrued interest receivable 1,444 1,444 3 971 971 3 Financial liabilities: Deposit liabilities 507,899 512,357 3 292,457 292,537 3 Federal Home Loan Bank advances 10,000 9,450 3 18,000 18,021 3 Off-balance sheet financial instruments — — 3 — — 3 The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit, unused lines of credit, and standby letters of credit and may involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the consolidated balance sheet. The contract amounts of these instruments reflect the extent of involvement the Company has in these financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (8) Financial Instruments Continued Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the counterparty. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit to customers is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting those commitments. Standby letters of credit generally have expiration dates within one year. Commitments to extend credit, unused lines of credit, and standby letters of credit typically result in loans with a market interest rate when funded. A summary of the contractual amounts of the Company’s financial instruments with off-balance-sheet risk at December 31, 2022 follows (in thousands): Schedule of Off-Balance Sheet Risks of Financial Instruments Commitments to extend credit $ 15,447 Unused lines of credit $ 17,400 Standby letters of credit $ 4,313 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes Income tax benefit consisted of the following (in thousands): Schedule of Components of Income Tax Benefit 2022 2021 Year Ended December 31, 2022 2021 Current: Federal $ — $ — State — — Total Current — — Deferred: Federal 1,071 609 State 298 169 Change in Valuation Allowance — (4,005 ) Total Deferred Income tax expense (benefit) 1,369 (3,227 ) Total Income tax expense (benefit) $ 1,369 $ (3,227 ) (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (9) Income Taxes Continued The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows (dollars in thousands): Schedule of Effective Income Tax Rate Reconciliation Year Ended December 31, 2022 2021 Amount % of Pretax Loss Amount % of Pretax Loss Income tax benefit at statutory rate $ 1,132 21.0 % $ 644 21.0 % Increase (decrease) resulting from: State taxes, net of Federal tax benefit 235 4.4 % 134 4.3 % Other permanent differences 2 0.0 % — — Change in valuation allowance — — (4,005 ) (130.5 )% $ 1,369 25.4 % $ (3,227 ) (105.2 )% The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands): Schedule of Deferred Tax Assets and Deferred Tax Liabilities 2022 2021 At December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 1,322 $ 3,336 Allowance for loan losses 893 15 Premises and equipment 55 53 Nonaccrual loan interest 26 30 Accrued expense 72 — Operating lease liabilities 550 450 Unrealized loss on debt securities 1,978 215 Total deferred tax assets 4,896 4,099 Deferred tax liabilities: Right of use lease assets (537 ) (440 ) Loan costs (523 ) (217 ) Total deferred tax liabilities (1,060 ) (657 ) Net deferred tax asset $ 3,836 $ 3,442 During the year ended December 31, 2021, the Company assessed its earnings history and trend over the past year and its estimate of future earnings. In 2021, the Company determined that it was more likely than not that the deferred tax assets would be realized in the near term. Accordingly, the valuation allowance that was recorded and maintained against the net deferred tax asset for the amount not expected to be realized in the future was fully reversed in 2021 in the amount of $ 4.0 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (9) Income Taxes, Continued At December 31, 2022, the Company had net operating loss carryforwards of approximately $ 5.2 The Company files U.S. and Florida income tax returns. The Company is no longer subject to U.S. Federal or state income tax examinations by taxing authorities for years before 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (10) Related Party Transactions The Company has entered into transactions with its executive officers, directors and their affiliates in the ordinary course of business. During 2022, the Company incurred approximately $ 65,000 At December 31, 2022 and 2021, related parties had approximately $ 32,750,000 46,600,000 At December 31, 2022 and 2021, related party loans totaled $ 100,500 1,000,000 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | (11) Stock-Based Compensation The Company is authorized to grant stock options, stock grants and other forms of equity-based compensation under its 2018 Equity Incentive Plan, as amended (the “Plan”). The plan has been approved by the shareholders. The Company is authorized to issue up to 550,000 391,579 158,421 During the year ended December 31, 2021, the Company recorded compensation expense of $ 199,000 62,112 During the year ended December 31, 2022, the Company recorded compensation expense of $ 275,000 67,183 During the year ended December 31, 2022 the Company recorded compensation expense of $ 97,000 24,493 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Matters | (12) Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts, and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (12) Regulatory Matters, Continued In 2019, the federal banking agencies jointly issued a final rule that provides for an optional, simplified measure of capital adequacy, the community bank leverage ratio framework (CBLR framework), for qualifying community banking organizations. The final rule became effective on January 1, 2020 and was elected by the Bank. The CBLR Framework removes the requirement for qualifying banking organizations to calculate and report risk-based capital but rather only requires a Tier 1 to average assets (leverage) ratio. Qualifying community banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than required minimums will be considered to have satisfied the generally applicable risk based and leverage capital requirements in the agencies’ capital rules (generally applicable rule) and, if applicable, will be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. Under the CBLR Framework, the community bank leverage ratio minimum requirement is 9 Management believes, as of December 31, 2022, that the Bank meets all capital adequacy requirements to which it is subject. The Bank’s actual capital amounts and percentages are presented in the table ($ in thousands): Schedule of Capital Amount and Percentages To Be Well Capitalized Under Prompt Corrective Actual Action Regulations (CBLR Framework) Amount % Amount % As of December 31, 2022: Tier I Capital to Total Assets $ 66,291 11.29 % $ 52,865 9.00 % As of December 31, 2021: Tier I Capital to Total Assets $ 35,338 10.64 % $ 28,235 8.50 % |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Dividends | (13) Dividends The Company is limited in the amount of cash dividends that may be paid. Banking regulations place certain restrictions on dividends and loans or advances made by the Bank to the Company. The amount of cash dividends that may be paid by the Bank to the Company is based on the Bank’s net earnings of the current year combined with the Bank’s retained earnings of the preceding two years, as defined by state banking regulations. However, for any dividend declaration, the Company must consider additional factors such as the amount of current period net earnings, liquidity, asset quality, capital adequacy and economic conditions. It is likely that these factors would further limit the amount of dividends which the Company could declare. In addition, bank regulators have the authority to prohibit banks from paying dividends if they deem such payment to be an unsafe or unsound practice. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | (14) Contingencies Various claims also arise from time to time in the normal course of business. In the opinion of management, none have occurred that will have a material adverse effect on the Company’s consolidated financial statements. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | (15) Retirement Plans The Company has a 401(k) Profit Sharing plan covering all eligible employees who are over the age of twenty-one and have completed one year of service. The Company may make a matching contribution each year. The Company matching contributions in connection with this plan during the year ended December 31, 2022 was $ 86,000 no (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (16) Fair Value Measurement Debt securities available for sale measured at fair value on a recurring basis are summarized below (in thousands): Schedule of Debt Securities Available for Sale Measured at Fair Value on Recurring Basis Fair Value Measurements Using Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2022: SBA Pool Securities $ 817 $ — $ 817 $ — Collateralized mortgage obligations 130 — 130 — Taxable municipal securities 11,620 — 11,620 — Mortgage-backed securities 12,535 — 12,535 — Total $ 25,102 $ — $ 25,102 $ — At December 31, 2021: SBA Pool Securities $ 1,072 $ — $ 1,072 $ — Collateralized mortgage obligations 217 — 217 — Taxable municipal securities 16,426 — 16,426 — Mortgage-backed securities 16,679 — 16,679 — Total $ 34,394 $ — $ 34,394 $ — During the years ended December 31, 2022 and 2021, no debt securities were transferred in or out of Level 3. |
Company Unconsolidated Financia
Company Unconsolidated Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Company Unconsolidated Financial Information | (17) Company Unconsolidated Financial Information The Company’s unconsolidated financial information as of December 31, 2022 and 2021 and for the years then ended follows (in thousands): Condensed Balance Sheets Schedule of Condensed Balance Sheet 2022 2021 At December 31, 2022 2021 Assets Cash $ 602 $ 508 Investment in subsidiary 60,464 36,364 Other assets 2,149 1,843 Total assets $ 63,215 $ 38,715 Liabilities and Stockholders’ Equity Other liabilities $ 636 $ 205 Stockholders’ equity 62,579 38,510 Total liabilities and stockholders’ equity $ 63,215 $ 38,715 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (17) Company Unconsolidated Financial Information Continued Condensed Statements of Earnings Schedule of Condensed Statements of Earnings 2022 2021 Year Ended December 31, 2022 2021 Income of subsidiary $ 4,791 $ 5,412 Interest expense - (41 ) Other expense (1,029 ) (751 ) Income tax benefit 261 1,676 Net earnings $ 4,023 $ 6,296 Condensed Statements of Cash Flows Schedule of Condensed Statements of Cash Flows 2022 2021 Year Ended December 31, 2022 2021 Cash flows from operating activities: Net earnings $ 4,023 $ 6,296 Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: Stock-based compensation 372 199 Equity in undistributed income of subsidiary (4,792 ) (5,412 ) Deferred income tax benefit (261 ) (1,676 ) Increase in other liabilities 431 149 (Increase) decrease in other assets (45 ) 475 Net cash (used in) provided by operating activities (272 ) 31 Cash flow from investing activities: Capital infusion to bank subsidiary (24,500 ) (12,324 ) Cash flow from financing activities: Proceeds from sale of preferred stock 15,000 9,000 Proceeds from sale of common stock 9,866 3,678 Cash provided by financing activities 24,866 12,678 Net increase in cash 94 385 Cash at beginning of the year 508 123 Cash at end of year $ 602 $ 508 Noncash transactions: Change in accumulated other comprehensive loss of subsidiary, net change in unrealized loss on debt securities available for sale, net of income taxes $ (5,191 ) $ (566 ) Issuance of common stock in exchange for Trust Preferred Securities $ - $ 2,068 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Preferred Stock | (18) Preferred Stock During 2022 and 2021, the Company issued 600 360 25,000 15 9,000,000 during 2021 11,114,000 9.9 25,000 The Series B Preferred generally has no voting rights except as provided in the Certificate of Designation |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization | Organization 100 |
Basis of Presentation | Basis of Presentation |
Subsequent Events | Subsequent Events |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company may be required by law or regulation to maintain cash reserves in the form of vault cash or deposit with Federal Reserve Banks or in Pass-through accounts with other banks. This requirement is based on the amount of the Bank’s transaction deposit accounts. As of December 31, 2022 and 2021, the Bank did not have a reserve requirement as the Federal Reserve Board lowered the requirements to zero for all depository institutions. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued |
Debt Securities | Debt Securities Management evaluates debt securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. A debt security is impaired if the fair value is less than its carrying value at the financial statement date. When a debt security is impaired, the Company determines whether this impairment is temporary or other-than-temporary. In estimating other-than-temporary impairment (“OTTI”) losses, management assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of these criteria is met, the entire difference between amortized cost and fair value is recognized in earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment recognized in operations is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. Management utilizes cash flow models to segregate impairments to distinguish between impairment related to credit losses and impairment related to other factors. To assess for OTTI, management considers, among other things, (i) the severity and duration of the impairment; (ii) the ratings of the debt security; (iii) the overall transaction structure (the Company’s position within the structure, the aggregate, near-term financial performance of the underlying collateral, delinquencies, defaults, loss severities, recoveries, prepayments, cumulative loss projections, and discounted cash flows); and (iv) the timing and magnitude of a break in modeled cash flows. |
Loans | Loans Commitment fees and loan origination fees are deferred and certain direct origination costs are capitalized. Both are recognized as an adjustment of the yield of the related loan. The accrual of interest on loans is discontinued at the time the loan is ninety days delinquent unless the loan is well collateralized and in process of collection. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loans are lower than the carrying value of those loans. The general component covers all other loans and is based on historical loss experience adjusted for qualitative factors. The historical loss component of the allowance is determined by losses recognized by portfolio segment over the preceding three years. The historical loss experience is adjusted for the risks by each portfolio segment. Risk factors impacting loans in each of the portfolio segments include: (1) changes in national, regional and local economic conditions that affect the collectability of the loan portfolio (2) changes in collateral value of loans (3) changes in lending policies and procedures, risk selection and underwriting standards (4) changes in the volume and severity of past due loans, nonaccrual loans or loans classified special mention, substandard, doubtful or loss (5) the existence and effect of any concentrations of credit and changes in the level of such concentrations (6) changes in the nature and volume of the loan portfolio and terms of loans, (7) changes in the experience, ability and depth of lending management and other relevant staff, (8) quality of loan review, (9) the effect of other external factors, trends or uncertainties that could affect management’s estimate of probable losses, such as competition and industry conditions. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis, by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued |
Premises and Equipment | Premises and Equipment |
Leases | Leases |
Transfer of Financial Assets | Transfer of Financial Assets |
Revenue Recognition | Revenue Recognition |
Service Charges on Deposit Accounts | Service Charges on Deposit Accounts |
Gain on sale of premises and equipment | Gain on sale of premises and equipment (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued |
Income Taxes | Income Taxes Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company provides reserves for potential payments of tax related to uncertain tax positions. These reserves are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company and the Bank file a consolidated income tax return. Income taxes are allocated proportionately to the Company and the Bank as though separate income tax returns were filed. |
Advertising | Advertising 59,000 26,000 |
Stock Compensation Plan | Stock Compensation Plan |
Net Earnings Per Share | Net Earnings Per Share Schedule of Weighted Average Number of Common Shares Outstanding 2022 2021 Year Ended December 31, 2022 2021 Weighted-average number of common shares outstanding used to calculate basic and diluted net earnings per common share 5,954,847 3,899,118 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued |
Off-Balance-Sheet Financial Instruments | Off-Balance-Sheet Financial Instruments |
Fair Value Measurements | Fair Value Measurements Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort. The following describes valuation methodologies used for assets measured at fair value: Debt Securities. Impaired Loans (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued |
Fair Values of Financial Instruments | Fair Values of Financial Instruments Cash and Cash Equivalents. Debt Securities. Loans. Federal Home Loan Bank Stock. 100 Accrued Interest Receivable. Deposit Liabilities. Federal Home Loan Bank Advances. Off-Balance-Sheet Financial Instruments. |
Comprehensive Loss (Income) | Comprehensive Loss (Income) Accumulated other comprehensive loss consists of the following (in thousands): Schedule of Accumulated and Other Comprehensive (Loss) 2022 2021 December 31, 2022 2021 Unrealized loss on debt securities available for sale $ (7,786 ) $ (816 ) Unamortized portion of unrealized loss related to debt securities available for sale transferred to debt securities held-to-maturity (18 ) (34 ) Income tax benefit 1,978 215 Accumulated other comprehensive loss $ (5,826 ) $ (635 ) (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies, continued |
Reclassifications | Reclassifications Adoption on New Accounting Standards: Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost, and off-balance-sheet (OBS) credit exposures. Results for reporting periods beginning after January 1, 2023, will be presented under ASC 326 while prior period amounts will continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $ 241,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Common Shares Outstanding | Schedule of Weighted Average Number of Common Shares Outstanding 2022 2021 Year Ended December 31, 2022 2021 Weighted-average number of common shares outstanding used to calculate basic and diluted net earnings per common share 5,954,847 3,899,118 |
Schedule of Accumulated and Other Comprehensive (Loss) | Accumulated other comprehensive loss consists of the following (in thousands): Schedule of Accumulated and Other Comprehensive (Loss) 2022 2021 December 31, 2022 2021 Unrealized loss on debt securities available for sale $ (7,786 ) $ (816 ) Unamortized portion of unrealized loss related to debt securities available for sale transferred to debt securities held-to-maturity (18 ) (34 ) Income tax benefit 1,978 215 Accumulated other comprehensive loss $ (5,826 ) $ (635 ) |
Debt Securities (Tables)
Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities | |
Schedule of Amortized Cost and Approximate Fair Values of Debt Securities | Schedule of Amortized Cost and Approximate Fair Values of Debt Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2022: Available for sale: SBA Pool Securities $ 834 $ 1 $ (18 ) $ 817 Collateralized mortgage obligations 145 — (15 ) 130 Taxable municipal securities 16,729 — (5,109 ) 11,620 Mortgage-backed securities 15,180 — (2,645 ) 12,535 Total $ 32,888 $ 1 $ (7,787 ) $ 25,102 Held-to-maturity: Collateralized mortgage obligations $ 475 $ — $ (35 ) $ 440 Mortgage-backed securities 65 — (1 ) 64 Total $ 540 $ — $ (36 ) $ 504 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (2) Debt Securities, Continued Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2021: Available for sale: SBA Pool Securities $ 1,097 $ 1 $ (26 ) $ 1,072 Collateralized mortgage obligations 210 7 — 217 Taxable municipal securities 16,766 19 (359 ) 16,426 Mortgage-backed securities 17,137 19 (477 ) 16,679 Total $ 35,210 $ 46 $ (862 ) $ 34,394 Held-to-maturity: Collateralized mortgage obligations $ 854 $ 28 $ — $ 882 Mortgage-backed securities 186 3 — 189 Total $ 1,040 $ 31 $ — $ 1,071 |
Schedule of Debt Securities with Gross Unrealized Losses, by Investment Category | Debt securities with gross unrealized losses, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position, is as follows (in thousands): Schedule of Debt Securities with Gross Unrealized Losses, by Investment Category Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value At December 31, 2022: Available for Sale: SBA Pool Securities $ 18 $ 657 $ — $ — Collateralized mortgage obligations $ — $ — $ 15 $ 130 Taxable municipal securities $ 5,109 $ 11,620 $ — $ — Mortgage-backed securities $ 2,621 $ 12,292 $ 24 $ 243 Total $ 7,748 $ 24,569 $ 39 $ 373 At December 31, 2021: Available for Sale: SBA Pool Securities $ 26 $ 895 $ — $ — Taxable municipal securities $ 81 $ 1,853 $ 278 $ 12,828 Mortgage-backed securities $ 242 $ 6,179 $ 235 $ 9,984 Total $ 349 $ 8,927 $ 513 $ 22,812 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Components of Loans | Schedule of Components of Loans At December 31, 2022 2021 Residential real estate $ 50,354 $ 32,583 Multi-family real estate 69,555 48,592 Commercial real estate 310,695 129,468 Land and construction 17,286 3,772 Commercial 5,165 14,157 Consumer 30,323 22,827 Total loans 483,378 251,399 Deduct: Net deferred loan fees (367 ) (422 ) Allowance for loan losses (5,793 ) (3,075 ) Loans, net $ 477,218 $ 247,902 |
Schedule of Changes in Allowance for Loan Losses | Schedule of Changes in Allowance for Loan Losses Residential Real Estate Multi- Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Total Year Ended December 31, 2022: Beginning balance $ 482 $ 535 $ 1,535 $ 32 $ 74 $ 417 $ 3,075 Provision for loan losses 286 213 1,727 141 244 855 3,466 Charge-offs — — — — (97 ) (804 ) (901 ) Recoveries — — — — 56 97 153 Ending balance $ 768 $ 748 $ 3,262 $ 173 $ 277 $ 565 $ 5,793 Year Ended December 31, 2021: Beginning balance $ 463 $ 253 $ 884 $ 52 $ 103 $ 151 $ 1,906 Credit) provision for loan losses (11 ) 282 651 (28 ) (231 ) 510 1,173 Charge-offs — — — — (23 ) (254 ) (277 ) Recoveries 30 — — 8 225 10 273 Ending balance $ 482 $ 535 $ 1,535 $ 32 $ 74 $ 417 $ 3,075 The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2022 and 2021 follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Total At December 31, 2022: Individually evaluated for impairment: Recorded investment $ — $ — $ — $ — $ — $ — $ — Balance in allowance for loan losses $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment: Recorded investment $ 50,354 $ 69,555 $ 310,695 $ 17,286 $ 5,165 $ 30,323 $ 483,378 Balance in allowance for loan losses $ 768 $ 748 $ 3,262 $ 173 $ 277 $ 565 $ 5,793 At December 31, 2021: Individually evaluated for impairment: Recorded investment $ — $ — $ — $ — $ — $ — $ — Balance in allowance for loan losses $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment: Recorded investment $ 32,583 $ 48,592 $ 129,468 $ 3,772 $ 14,157 $ 22,827 $ 251,399 Balance in allowance for loan losses $ 481 $ 535 $ 1,535 $ 32 $ 72 $ 420 $ 3,075 (continued) |
Schedule of Loans by Credit Quality | Schedule of Loans by Credit Quality Pass OLEM (Other Loans Especially Mentioned) Sub- standard Doubtful Loss Total At December 31, 2022: Residential real estate $ 50,354 $ — $ — $ — $ — $ 50,354 Multi-family real estate 69,555 — — — — 69,555 Commercial real estate 309,458 — 1,237 — — 310,695 Land and construction 17,286 — — — — 17,286 Commercial 5,165 — — — — 5,165 Consumer 30,323 — — — — 30,323 Total $ 482,141 $ — $ 1,237 $ — $ — $ 483,378 A December 31, 2021: Residential real estate $ 30,080 $ — $ 2,503 $ — $ — $ 32,583 Multi-family real estate 47,962 630 — — — 48,592 Commercial real estate 125,620 3,848 — — — 129,468 Land and construction 3,772 — — — — 3,772 Commercial 13,960 197 — — — 14,157 Consumer 22,827 — — — — 22,827 Total $ 244,221 $ 4,675 $ 2,503 $ — $ — $ 251,399 |
Schedule of Age Analysis of Past-due Loans | Schedule of Age Analysis of Past-due Loans Accruing Loans 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Nonaccrual Loans Total Loans At December 31, 2022: Residential real estate $ — $ — $ — $ — $ 50,354 $ — $ 50,354 Multi-family real estate — — — — 69,555 — 69,555 Commercial real estate — — — — 310,695 — 310,695 Land and construction — — — — 17,286 — 17,286 Commercial — — — — 5,165 — 5,165 Consumer 150 27 — 177 30,146 — 30,323 Total $ 150 $ 27 $ — $ 177 $ 483,201 $ — $ 483,378 At December 31, 2021: Residential real estate $ 198 $ — $ — $ 198 $ 32,385 $ — $ 32,583 Multi-family real estate — — — — 48,592 — 48,592 Commercial real estate — — — — 129,468 — 129,468 Land and construction — — — — 3,772 — 3,772 Commercial — — — — 14,157 — 14,157 Consumer 69 — — 69 22,758 — 22,827 Total $ 267 $ — $ — $ 267 $ 251,132 $ — $ 251,399 |
Schedule of Interest Income Recognized and Received on Impaired Loans | The average recorded investment in impaired loans and interest income recognized and received on impaired loans are as follows (in thousands): Schedule of Interest Income Recognized and Received on Impaired Loans For the Year Ended December 31, 2022 2021 Average Recorded Investment Interest Income Recognized Interest Income Received Average Recorded Investment Interest Income Recognized Interest Income Received Residential real estate $ — $ $ — $ — $ — $ — Commercial real estate $ — $ — $ — $ 658 $ 7 $ 7 Commercial $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ 658 $ 7 $ 7 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and equipment | Schedule of Premises and equipment 2022 2021 At December 31, 2022 2021 Furniture, fixtures and equipment $ 1,138 $ 819 Leasehold improvements 657 654 Total, at cost 1,795 1,473 Less accumulated depreciation and amortization (861 ) (630 ) Premises and equipment, net $ 934 $ 843 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of Components of Lease Cost | Schedule of Components of Lease Cost 2022 2021 For the year ended December 31, 2022 2021 Operating lease cost $ 280 $ 213 Cash paid for amounts included in measurement of lease liabilities $ 261 $ 195 |
Schedule of Operating Lease Liability | Schedule of Operating Lease Liability 2022 2021 At December 31, 2022 2021 Operating lease right-of-use assets $ 2,119 1,737 Operating lease liabilities $ 2,172 1,775 Weighted-average remaining lease term 8.4 8.3 Weighted-average discount rate 2.3 % 2.11 % |
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases | Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases At December 31, 2022 2023 $ 264 2024 270 2025 276 2026 288 2027 314 Thereafter 1,068 Total future minimum lease payments 2,480 Less interest (308 ) Total operating lease liability $ 2,172 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Maturities of Time Deposits | A schedule of maturities of time deposits at December 31, 2022 follows (in thousands): Schedule of Maturities of Time Deposits Maturing Year Ending December 31, Amount 2023 $ 223,840 2024 15,620 2025 519 2026 1 Total $ 239,980 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances and Other Available Credit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities and Interest Rates on the Federal Home Loan Bank Advances | The maturities and interest rates on the Federal Home Loan Bank (“FHLB”) advances were as follows (dollars in thousands) Schedule of Maturities and Interest Rates on the Federal Home Loan Bank Advances Maturity Year Ending Interest At December 31, December 31, Rate 2022 2021 2024 1.96 % $ — $ 4,000 2025 1.01 % 10,000 10,000 2029 1.69 % — 4,000 $ 10,000 $ 18,000 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of Estimated Fair Value of Financial Instruments | The estimated fair values of the Company’s financial instruments were as follows (in thousands): Schedule of Estimated Fair Value of Financial Instruments At December 31, 2022 At December 31, 2021 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 71,836 $ 71,836 1 $ 58,970 $ 58,970 1 Debt Securities available for sale 25,102 25,102 2 34,394 34,394 2 Debt Securities held-to-maturity 540 504 2 1,040 1,071 2 Loans 477,218 476,566 3 247,902 247,788 3 Federal Home Loan Bank stock 600 600 3 793 793 3 Accrued interest receivable 1,444 1,444 3 971 971 3 Financial liabilities: Deposit liabilities 507,899 512,357 3 292,457 292,537 3 Federal Home Loan Bank advances 10,000 9,450 3 18,000 18,021 3 Off-balance sheet financial instruments — — 3 — — 3 |
Schedule of Off-Balance Sheet Risks of Financial Instruments | Schedule of Off-Balance Sheet Risks of Financial Instruments Commitments to extend credit $ 15,447 Unused lines of credit $ 17,400 Standby letters of credit $ 4,313 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Benefit | Income tax benefit consisted of the following (in thousands): Schedule of Components of Income Tax Benefit 2022 2021 Year Ended December 31, 2022 2021 Current: Federal $ — $ — State — — Total Current — — Deferred: Federal 1,071 609 State 298 169 Change in Valuation Allowance — (4,005 ) Total Deferred Income tax expense (benefit) 1,369 (3,227 ) Total Income tax expense (benefit) $ 1,369 $ (3,227 ) |
Schedule of Effective Income Tax Rate Reconciliation | The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows (dollars in thousands): Schedule of Effective Income Tax Rate Reconciliation Year Ended December 31, 2022 2021 Amount % of Pretax Loss Amount % of Pretax Loss Income tax benefit at statutory rate $ 1,132 21.0 % $ 644 21.0 % Increase (decrease) resulting from: State taxes, net of Federal tax benefit 235 4.4 % 134 4.3 % Other permanent differences 2 0.0 % — — Change in valuation allowance — — (4,005 ) (130.5 )% $ 1,369 25.4 % $ (3,227 ) (105.2 )% |
Schedule of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands): Schedule of Deferred Tax Assets and Deferred Tax Liabilities 2022 2021 At December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 1,322 $ 3,336 Allowance for loan losses 893 15 Premises and equipment 55 53 Nonaccrual loan interest 26 30 Accrued expense 72 — Operating lease liabilities 550 450 Unrealized loss on debt securities 1,978 215 Total deferred tax assets 4,896 4,099 Deferred tax liabilities: Right of use lease assets (537 ) (440 ) Loan costs (523 ) (217 ) Total deferred tax liabilities (1,060 ) (657 ) Net deferred tax asset $ 3,836 $ 3,442 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Capital Amount and Percentages | Management believes, as of December 31, 2022, that the Bank meets all capital adequacy requirements to which it is subject. The Bank’s actual capital amounts and percentages are presented in the table ($ in thousands): Schedule of Capital Amount and Percentages To Be Well Capitalized Under Prompt Corrective Actual Action Regulations (CBLR Framework) Amount % Amount % As of December 31, 2022: Tier I Capital to Total Assets $ 66,291 11.29 % $ 52,865 9.00 % As of December 31, 2021: Tier I Capital to Total Assets $ 35,338 10.64 % $ 28,235 8.50 % |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Debt Securities Available for Sale Measured at Fair Value on Recurring Basis | Debt securities available for sale measured at fair value on a recurring basis are summarized below (in thousands): Schedule of Debt Securities Available for Sale Measured at Fair Value on Recurring Basis Fair Value Measurements Using Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2022: SBA Pool Securities $ 817 $ — $ 817 $ — Collateralized mortgage obligations 130 — 130 — Taxable municipal securities 11,620 — 11,620 — Mortgage-backed securities 12,535 — 12,535 — Total $ 25,102 $ — $ 25,102 $ — At December 31, 2021: SBA Pool Securities $ 1,072 $ — $ 1,072 $ — Collateralized mortgage obligations 217 — 217 — Taxable municipal securities 16,426 — 16,426 — Mortgage-backed securities 16,679 — 16,679 — Total $ 34,394 $ — $ 34,394 $ — |
Company Unconsolidated Financ_2
Company Unconsolidated Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | The Company’s unconsolidated financial information as of December 31, 2022 and 2021 and for the years then ended follows (in thousands): Condensed Balance Sheets Schedule of Condensed Balance Sheet 2022 2021 At December 31, 2022 2021 Assets Cash $ 602 $ 508 Investment in subsidiary 60,464 36,364 Other assets 2,149 1,843 Total assets $ 63,215 $ 38,715 Liabilities and Stockholders’ Equity Other liabilities $ 636 $ 205 Stockholders’ equity 62,579 38,510 Total liabilities and stockholders’ equity $ 63,215 $ 38,715 |
Schedule of Condensed Statements of Earnings | Schedule of Condensed Statements of Earnings 2022 2021 Year Ended December 31, 2022 2021 Income of subsidiary $ 4,791 $ 5,412 Interest expense - (41 ) Other expense (1,029 ) (751 ) Income tax benefit 261 1,676 Net earnings $ 4,023 $ 6,296 |
Schedule of Condensed Statements of Cash Flows | Schedule of Condensed Statements of Cash Flows 2022 2021 Year Ended December 31, 2022 2021 Cash flows from operating activities: Net earnings $ 4,023 $ 6,296 Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: Stock-based compensation 372 199 Equity in undistributed income of subsidiary (4,792 ) (5,412 ) Deferred income tax benefit (261 ) (1,676 ) Increase in other liabilities 431 149 (Increase) decrease in other assets (45 ) 475 Net cash (used in) provided by operating activities (272 ) 31 Cash flow from investing activities: Capital infusion to bank subsidiary (24,500 ) (12,324 ) Cash flow from financing activities: Proceeds from sale of preferred stock 15,000 9,000 Proceeds from sale of common stock 9,866 3,678 Cash provided by financing activities 24,866 12,678 Net increase in cash 94 385 Cash at beginning of the year 508 123 Cash at end of year $ 602 $ 508 Noncash transactions: Change in accumulated other comprehensive loss of subsidiary, net change in unrealized loss on debt securities available for sale, net of income taxes $ (5,191 ) $ (566 ) Issuance of common stock in exchange for Trust Preferred Securities $ - $ 2,068 |
Schedule of Weighted Average Nu
Schedule of Weighted Average Number of Common Shares Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Weighted-average number of common shares outstanding used to calculate basic and diluted net earnings per common share | 5,954,847 | 3,899,118 |
Schedule of Accumulated and Oth
Schedule of Accumulated and Other Comprehensive (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Unrealized loss on debt securities available for sale | $ (7,786) | $ (816) |
Unamortized portion of unrealized loss related to debt securities available for sale transferred to debt securities held-to-maturity | (18) | (34) |
Income tax benefit | 1,978 | 215 |
Accumulated other comprehensive loss | $ (5,826) | $ (635) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2023 | |
Advertising expense | $ 59,000 | $ 26,000 | |
Retained earnings | $ (22,073,000) | $ (26,096,000) | |
Forecast [Member] | |||
Retained earnings | $ 241,000 | ||
Investment in Federal Home Loan Bank Stock [Member] | |||
Redemption price per share | $ 100 | ||
Optimum Bank [Member] | |||
Equity method investment, ownership percentage | 100% |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Approximate Fair Values of Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | $ 32,888 | $ 35,210 |
Available for sale, gross unrealized gains | 1 | 46 |
Available for sale, gross unrealized losses | (7,787) | (862) |
Available for sale, fair value | 25,102 | 34,394 |
Held-to-maturity, amortized cost | 540 | 1,040 |
Held-to-maturity, gross unrealized gains | 31 | |
Held-to-maturity, gross unrealized losses | (36) | |
Held-to-maturity, fair value | 504 | 1,071 |
Taxable Municipal Bonds [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, gross unrealized gains | 19 | |
Available for sale, gross unrealized losses | (5,109) | (359) |
Taxable Municipal Bonds [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | 16,729 | 16,766 |
Available for sale, fair value | 11,620 | 16,426 |
SBA Pool Securities [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | 834 | 1,097 |
Available for sale, gross unrealized gains | 1 | 1 |
Available for sale, gross unrealized losses | (18) | (26) |
Available for sale, fair value | 817 | 1,072 |
Collateralized Mortgage Obligations [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | 145 | 210 |
Available for sale, gross unrealized gains | 7 | |
Available for sale, gross unrealized losses | (15) | |
Available for sale, fair value | 130 | 217 |
Held-to-maturity, amortized cost | 475 | 854 |
Held-to-maturity, gross unrealized gains | 28 | |
Held-to-maturity, gross unrealized losses | (35) | |
Held-to-maturity, fair value | 440 | 882 |
Collateralized Mortgage-Backed Securities [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | 15,180 | 17,137 |
Available for sale, gross unrealized gains | 19 | |
Available for sale, gross unrealized losses | (2,645) | (477) |
Available for sale, fair value | 12,535 | 16,679 |
Held-to-maturity, amortized cost | 65 | 186 |
Held-to-maturity, gross unrealized gains | 3 | |
Held-to-maturity, gross unrealized losses | (1) | |
Held-to-maturity, fair value | $ 64 | $ 189 |
Schedule of Debt Securities wit
Schedule of Debt Securities with Gross Unrealized Losses, by Investment Category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | $ 7,748 | $ 349 |
Available for Sale, Securities Position Over 12 Months, Fair Value | 24,569 | 8,927 |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 39 | 513 |
Available for Sale, Securities Position Less than 12 Month, Fair Value | 373 | 22,812 |
Taxable Municipal Bonds [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | 5,109 | 81 |
Available for Sale, Securities Position Over 12 Months, Fair Value | 11,620 | 1,853 |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 278 | |
Available for Sale, Securities Position Less than 12 Month, Fair Value | 12,828 | |
SBA Pool Securities [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | 18 | 26 |
Available for Sale, Securities Position Over 12 Months, Fair Value | 657 | 895 |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | ||
Available for Sale, Securities Position Less than 12 Month, Fair Value | ||
Collateralized Mortgage Obligations [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | ||
Available for Sale, Securities Position Over 12 Months, Fair Value | ||
Available for Sale, Securities Position Less than 12 Month, Fair Value | 130 | |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 15 | |
Collateralized Mortgage-Backed Securities [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | 2,621 | 242 |
Available for Sale, Securities Position Over 12 Months, Fair Value | 12,292 | 6,179 |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 24 | 235 |
Available for Sale, Securities Position Less than 12 Month, Fair Value | $ 243 | $ 9,984 |
Debt Securities (Details Narrat
Debt Securities (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities | ||
Available for sale debt securities | $ 0 | $ 0 |
Debt securities in unrealized loss | forty | twenty-nine |
Schedule of Components of Loans
Schedule of Components of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 483,378 | $ 251,399 | |
Net deferred loan (fees), costs and premiums | (367) | (422) | |
Allowance for loan losses | (5,793) | (3,075) | $ (1,906) |
Loans, net | 477,218 | 247,902 | |
Residential Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 50,354 | 32,583 | |
Allowance for loan losses | (768) | (482) | (463) |
Multi Family Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 69,555 | 48,592 | |
Allowance for loan losses | (748) | (535) | (253) |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 310,695 | 129,468 | |
Allowance for loan losses | (3,262) | (1,535) | (884) |
Construction Loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 17,286 | 3,772 | |
Allowance for loan losses | (173) | (32) | (52) |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 5,165 | 14,157 | |
Allowance for loan losses | (277) | (74) | (103) |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 30,323 | 22,827 | |
Allowance for loan losses | $ (565) | $ (417) | $ (151) |
Schedule of Changes in Allowanc
Schedule of Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | $ 3,075 | $ 1,906 |
Credit) provision for loan losses | 3,466 | 1,173 |
Charge-offs | (901) | (277) |
Recoveries | 153 | 273 |
Ending balance | 5,793 | 3,075 |
Recorded investment | ||
Balance in allowance for loan losses | ||
Recorded investment | 483,378 | 251,399 |
Balance in allowance for loan losses | 5,793 | 3,075 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 482 | 463 |
Credit) provision for loan losses | 286 | (11) |
Charge-offs | ||
Recoveries | 30 | |
Ending balance | 768 | 482 |
Recorded investment | ||
Balance in allowance for loan losses | ||
Recorded investment | 50,354 | 32,583 |
Balance in allowance for loan losses | 768 | 481 |
Multi Family Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 535 | 253 |
Credit) provision for loan losses | 213 | 282 |
Charge-offs | ||
Recoveries | ||
Ending balance | 748 | 535 |
Recorded investment | ||
Balance in allowance for loan losses | ||
Recorded investment | 69,555 | 48,592 |
Balance in allowance for loan losses | 748 | 535 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 1,535 | 884 |
Credit) provision for loan losses | 1,727 | 651 |
Charge-offs | ||
Recoveries | ||
Ending balance | 3,262 | 1,535 |
Recorded investment | ||
Balance in allowance for loan losses | ||
Recorded investment | 310,695 | 129,468 |
Balance in allowance for loan losses | 3,262 | 1,535 |
Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 32 | 52 |
Credit) provision for loan losses | 141 | (28) |
Charge-offs | ||
Recoveries | 8 | |
Ending balance | 173 | 32 |
Recorded investment | ||
Balance in allowance for loan losses | ||
Recorded investment | 17,286 | 3,772 |
Balance in allowance for loan losses | 173 | 32 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 74 | 103 |
Credit) provision for loan losses | 244 | (231) |
Charge-offs | (97) | (23) |
Recoveries | 56 | 225 |
Ending balance | 277 | 74 |
Recorded investment | ||
Balance in allowance for loan losses | ||
Recorded investment | 5,165 | 14,157 |
Balance in allowance for loan losses | 277 | 72 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 417 | 151 |
Credit) provision for loan losses | 855 | 510 |
Charge-offs | (804) | (254) |
Recoveries | 97 | 10 |
Ending balance | 565 | 417 |
Recorded investment | ||
Balance in allowance for loan losses | ||
Recorded investment | 30,323 | 22,827 |
Balance in allowance for loan losses | $ 565 | $ 420 |
Schedule of Loans by Credit Qua
Schedule of Loans by Credit Quality (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | $ 483,378 | $ 251,399 |
Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 482,141 | 244,221 |
Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 4,675 | |
Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 1,237 | 2,503 |
Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 50,354 | 32,583 |
Residential Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 50,354 | 30,080 |
Residential Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Residential Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 2,503 | |
Residential Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Residential Portfolio Segment [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Multi Family Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 69,555 | 48,592 |
Multi Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 69,555 | 47,962 |
Multi Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 630 | |
Multi Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Multi Family Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Multi Family Real Estate [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 310,695 | 129,468 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 309,458 | 125,620 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 3,848 | |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 1,237 | |
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Commercial Real Estate Portfolio Segment [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 17,286 | 3,772 |
Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 17,286 | 3,772 |
Construction Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Construction Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Construction Loans [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 5,165 | 14,157 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 5,165 | 13,960 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 197 | |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Commercial Portfolio Segment [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 30,323 | 22,827 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | 30,323 | 22,827 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans | ||
Consumer Portfolio Segment [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Risk rated loans |
Schedule of Age Analysis of Pas
Schedule of Age Analysis of Past-due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 483,378 | 251,399 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 150 | 267 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 27 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 177 | 267 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 483,201 | 251,132 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 50,354 | 32,583 |
Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 198 | |
Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Residential Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 198 | |
Residential Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 50,354 | 32,385 |
Multi Family Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 69,555 | 48,592 |
Multi Family Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Multi Family Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Multi Family Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Multi Family Real Estate [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Multi Family Real Estate [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 69,555 | 48,592 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 310,695 | 129,468 |
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 310,695 | 129,468 |
Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 17,286 | 3,772 |
Construction Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Construction Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Construction Loans [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Construction Loans [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 17,286 | 3,772 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 5,165 | 14,157 |
Commercial Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Commercial Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Commercial Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Commercial Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 5,165 | 14,157 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 30,323 | 22,827 |
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 150 | 69 |
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 27 | |
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | ||
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 177 | 69 |
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 30,146 | $ 22,758 |
Schedule of Interest Income Rec
Schedule of Interest Income Recognized and Received on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | ||
Impaired loans - Average Recorded Investment | $ 658 | |
Impaired loans - Interest Income Received | 7 | |
Impaired loans - Interest Income Recognized | 7 | |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired loans - Average Recorded Investment | ||
Impaired loans - Interest Income Received | ||
Impaired loans - Interest Income Recognized | ||
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired loans - Average Recorded Investment | 658 | |
Impaired loans - Interest Income Received | 7 | |
Impaired loans - Interest Income Recognized | 7 | |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired loans - Average Recorded Investment | ||
Impaired loans - Interest Income Received | ||
Impaired loans - Interest Income Recognized |
Loans (Details Narrative)
Loans (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Impaired loans | $ 0 | $ 0 |
Schedule of Premises and equipm
Schedule of Premises and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 1,795 | $ 1,473 |
Less accumulated depreciation and amortization | (861) | (630) |
Premises and equipment, net | 934 | 843 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,138 | 819 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 657 | $ 654 |
Premises and Equipment (Details
Premises and Equipment (Details Narrative) - Third Party [Member] | 1 Months Ended |
Nov. 30, 2021 USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Proceeds from Sale of Productive Assets | $ 1,081,000 |
Financed amount | $ 340,000 |
Schedule of Components of Lease
Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | ||
Operating lease cost | $ 280 | $ 213 |
Cash paid for amounts included in measurement of lease liabilities | $ 261 | $ 195 |
Schedule of Operating Lease Lia
Schedule of Operating Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Operating lease right-of-use assets | $ 2,119 | $ 1,737 |
Operating lease liabilities | $ 2,172 | $ 1,775 |
Weighted average remaining lease term | 8 years 4 months 24 days | 8 years 3 months 18 days |
Weighted-average discount rate | 2.30% | 2.11% |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
2023 | $ 264 | |
2024 | 270 | |
2025 | 276 | |
2026 | 288 | |
2027 | 314 | |
Thereafter | 1,068 | |
Total future minimum lease payments | 2,480 | |
Less interest | (308) | |
Total operating lease liability | $ 2,172 | $ 1,775 |
Leases (Details Narrative)
Leases (Details Narrative) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 4 months 24 days | 8 years 3 months 18 days |
Schedule of Maturities of Time
Schedule of Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
2023 | $ 223,840 | |
2024 | 15,620 | |
2025 | 519 | |
2026 | 1 | |
Total | $ 239,980 | $ 13,236 |
Deposits (Details Narrative)
Deposits (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Time deposits | $ 239,980,000 | $ 13,236,000 |
TIme deposits greater than $ 100,000 | 47,300,000 | $ 1,700,000 |
Minimum [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Time deposits | $ 250,000 |
Schedule of Maturities and Inte
Schedule of Maturities and Interest Rates on the Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 10,000 | $ 18,000 |
2024 [Member] | ||
Debt Instrument [Line Items] | ||
Average interest Rate | 1.96% | |
Total | 4,000 | |
2025 [Member] | ||
Debt Instrument [Line Items] | ||
Average interest Rate | 1.01% | |
Total | $ 10,000 | 10,000 |
2029 [Member] | ||
Debt Instrument [Line Items] | ||
Average interest Rate | 1.69% | |
Total | $ 4,000 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances and Other Available Credit (Details Narrative) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds | $ 125.7 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 211.5 |
Long-term line of credit | $ 19.5 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities available for sale | $ 25,102 | $ 34,394 |
Debt securities held-to-maturity | 540 | 1,040 |
Accrued interest receivable | 1,444 | 971 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities available for sale | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities available for sale | 25,102 | 34,394 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities available for sale | ||
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash and cash equivalents | 71,836 | 58,970 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities available for sale | 25,102 | 34,394 |
Debt securities held-to-maturity | 540 | 1,040 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 477,218 | 247,902 |
Federal Home Loan Bank stock | 600 | 793 |
Accrued interest receivable | 1,444 | 971 |
Deposit liabilities | 507,899 | 292,457 |
Federal Home Loan Bank advances | 10,000 | 18,000 |
Off-balance sheet financial instruments | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash and cash equivalents | 71,836 | 58,970 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities available for sale | 25,102 | 34,394 |
Debt securities held-to-maturity | 504 | 1,071 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 476,566 | 247,788 |
Federal Home Loan Bank stock | 600 | 793 |
Accrued interest receivable | 1,444 | 971 |
Deposit liabilities | 512,357 | 292,537 |
Federal Home Loan Bank advances | 9,450 | 18,021 |
Off-balance sheet financial instruments |
Schedule of Off-Balance Sheet R
Schedule of Off-Balance Sheet Risks of Financial Instruments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Investments, All Other Investments [Abstract] | |
Commitments to extend credit | $ 15,447 |
Unused lines of credit | 17,400 |
Standby letters of credit | $ 4,313 |
Schedule of Components of Incom
Schedule of Components of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | ||
Federal | ||
State | ||
Total Current | ||
Deferred: | ||
Federal | 1,071 | 609 |
State | 298 | 169 |
Change in Valuation Allowance | (4,005) | |
Total Deferred Income tax expense (benefit) | 1,369 | (3,227) |
Total Income tax expense (benefit) | $ 1,369 | $ (3,227) |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit at statutory rate | $ 1,132 | $ 644 |
Income tax benefit at statutory rate | 21% | 21% |
State taxes, net of federal tax benefit | $ 235 | $ 134 |
State taxes, net of Federal tax benefit, percent | 4.40% | 4.30% |
Other permanent differences | $ 2 | |
Other permanent differences, percent | 0% | |
Change in valuation allowance | $ (4,005) | |
Change in valuation allowance, percent | (130.50%) | |
Income tax expense benefit | $ 1,369 | $ (3,227) |
Income Tax Expense, percent | 25.40% | (105.20%) |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 1,322 | $ 3,336 |
Allowance for loan losses | 893 | 15 |
Premises and equipment | 55 | 53 |
Nonaccrual loan interest | 26 | 30 |
Accrued expense | 72 | |
Operating lease liabilities | 550 | 450 |
Unrealized loss on debt securities | 1,978 | 215 |
Total deferred tax assets | 4,896 | 4,099 |
Deferred tax liabilities: | ||
Right of use lease assets | (537) | (440) |
Loan costs | (523) | (217) |
Total deferred tax liabilities | (1,060) | (657) |
Net deferred tax asset | $ 3,836 | $ 3,442 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 4 | |
Net operating loss carryforwards | $ 5.2 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Related party deposit liabilities | $ 32,750,000 | $ 46,600,000 |
Loans and Leases Receivable, Related Parties | 100,500 | $ 1,000,000 |
Directors [Member] | ||
Related Party Transaction [Line Items] | ||
Legal fees | $ 65,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Director and Executive officer [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Compensation expense | $ 275,000 | $ 199,000 |
Common stock issued as compensation to directors for services | 67,183 | 62,112 |
Employee [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Compensation expense | $ 97,000 | |
Common stock issued as compensation to directors for services | 24,493 | |
2018 Equity Incentive Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation number of shares issued | 391,579 | |
Share-based compensation remain available for grant | 158,421 | |
2018 Equity Incentive Plan [Member] | Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation number of shares authorized | 550,000 |
Schedule of Capital Amount and
Schedule of Capital Amount and Percentages (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Tier I capital to total assets | $ 66,291 | $ 35,338 |
Tier I capital to total assets, ratio | 0.1129 | 0.1064 |
Tier I capital to total assets to be well capitalized under prompt corrective action regulations (CBLR Framework) | $ 52,865 | $ 28,235 |
Tier I capital to total assets to be well capitalized under prompt corrective action regulations (CBLR Framework), ratio | 0.0900 | 0.0850 |
Regulatory Matters (Details Nar
Regulatory Matters (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 | |
Community bank leverage ratio | 9% |
Retirement Plans (Details Narra
Retirement Plans (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Retirement plans contribution | $ 86,000 | $ 0 |
Schedule of Debt Securities Ava
Schedule of Debt Securities Available for Sale Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 25,102 | $ 34,394 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 25,102 | 34,394 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
SBA Pool Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 817 | 1,072 |
SBA Pool Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
SBA Pool Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 817 | 1,072 |
SBA Pool Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 130 | 217 |
Collateralized Mortgage Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Collateralized Mortgage Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 130 | 217 |
Collateralized Mortgage Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Taxable Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 11,620 | 16,426 |
Taxable Municipal Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Taxable Municipal Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 11,620 | 16,426 |
Taxable Municipal Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 12,535 | 16,679 |
Collateralized Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Collateralized Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 12,535 | 16,679 |
Collateralized Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total |
Schedule of Condensed Balance S
Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | |||
Other assets | $ 1,590 | $ 1,786 | |
Total assets | 585,219 | 351,878 | |
Other liabilities | 2,458 | 996 | |
Stockholders’ equity | 62,580 | 38,510 | $ 17,834 |
Total liabilities and stockholders’ equity | 585,219 | 351,878 | |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash | 602 | 508 | |
Investment in subsidiary | 60,464 | 36,364 | |
Other assets | 2,149 | 1,843 | |
Total assets | 63,215 | 38,715 | |
Other liabilities | 636 | 205 | |
Stockholders’ equity | 62,579 | 38,510 | |
Total liabilities and stockholders’ equity | $ 63,215 | $ 38,715 |
Schedule of Condensed Statement
Schedule of Condensed Statements of Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | ||
Interest expense | $ (4,046) | $ (985) |
Other expense | (1,648) | (1,046) |
Income tax benefit | (1,369) | 3,227 |
Net earnings | 4,023 | 6,296 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Income of subsidiary | 4,791 | 5,412 |
Interest expense | (41) | |
Other expense | (1,029) | (751) |
Income tax benefit | 261 | 1,676 |
Net earnings | $ 4,023 | $ 6,296 |
Schedule of Condensed Stateme_2
Schedule of Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net earnings | $ 4,023 | $ 6,296 |
Stock-based compensation | 372 | 199 |
Deferred income tax benefit | 1,369 | (3,227) |
Increase in other liabilities | 1,432 | 649 |
(Increase) decrease in other assets | 196 | (809) |
Net cash provided by operating activities | 10,360 | 3,763 |
Proceeds from sale of preferred stock | 9,866 | 3,638 |
Proceeds from sale of common stock | 15,000 | 9,000 |
Net cash provided by financing activities | 232,308 | 109,336 |
Net increase in cash and cash equivalents | 12,866 | 4,341 |
Cash and cash equivalents at beginning of the year | 58,970 | 54,629 |
Cash and cash equivalents at end of the year | 71,836 | 58,970 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net earnings | 4,023 | 6,296 |
Stock-based compensation | 372 | 199 |
Equity in undistributed income of subsidiary | (4,792) | (5,412) |
Deferred income tax benefit | (261) | (1,676) |
Increase in other liabilities | 431 | 149 |
(Increase) decrease in other assets | (45) | 475 |
Net cash provided by operating activities | (272) | 31 |
Capital infusion to bank subsidiary | (24,500) | (12,324) |
Proceeds from sale of preferred stock | 15,000 | 9,000 |
Proceeds from sale of common stock | 9,866 | 3,678 |
Net cash provided by financing activities | 24,866 | 12,678 |
Net increase in cash and cash equivalents | 94 | 385 |
Cash and cash equivalents at beginning of the year | 508 | 123 |
Cash and cash equivalents at end of the year | 602 | 508 |
Change in accumulated other comprehensive loss of subsidiary, net change in unrealized loss on debt securities available for sale, net of income taxes | (5,191) | (566) |
Issuance of common stock in exchange for Trust Preferred Securities | $ 2,068 |
Preferred Stock (Details Narrat
Preferred Stock (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock Issued During Period, Value, New Issues | $ 9,866,000 | $ 3,638,000 |
Common Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Conversion of Stock, Shares Issued | 11,114,000 | |
Series B Preferred Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders beneficial ownership percentage | 9.90% | |
Preferred Stock, Liquidation Preference Per Share | $ 25,000 | |
Preferred stock, voting rights | The Series B Preferred generally has no voting rights except as provided in the Certificate of Designation | |
Series B Participating Preferred Stock [Member] | Related Party [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Shares issued during the period, amount | 600 | 360 |
Preferred stock no par value | $ 25,000 | |
Stock Issued During Period, Value, New Issues | $ 15,000,000 | $ 9,000,000 |