Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
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 Boulevard | |
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, $.01 Par Value | |
Trading Symbol | OPHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,250,219 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and due from banks | $ 11,852 | $ 19,788 |
Interest-bearing deposits with banks | 66,521 | 52,048 |
Total cash and cash equivalents | 78,373 | 71,836 |
Debt securities available for sale | 24,762 | 25,102 |
Debt securities held-to-maturity (fair value of $406 and $504) | 445 | 540 |
Loans, net of allowance for credit losses of $6,645 and $5,793 | 518,829 | 477,218 |
Federal Home Loan Bank stock | 717 | 600 |
Premises and equipment, net | 1,162 | 934 |
Right-of-use lease assets | 2,300 | 2,119 |
Accrued interest receivable | 1,559 | 1,444 |
Deferred tax asset | 3,091 | 3,836 |
Other assets | 1,275 | 1,590 |
Total assets | 632,513 | 585,219 |
Liabilities: | ||
Noninterest-bearing demand deposits | 215,326 | 159,193 |
Savings, NOW and money-market deposits | 128,732 | 108,726 |
Time deposits | 207,573 | 239,980 |
Total deposits | 551,631 | 507,899 |
Federal Home Loan Bank advances | 10,000 | 10,000 |
Official checks | 67 | 110 |
Operating lease liabilities | 2,370 | 2,172 |
Other liabilities | 2,516 | 2,458 |
Total liabilities | 566,584 | 522,639 |
Commitments and contingencies (Notes 8 and 11) | ||
Stockholders’ equity: | ||
Preferred stock, value | ||
Common stock, $.01 par value; 10,000,000 shares authorized, 7,250,219 and 7,058,897 shares issued and outstanding | 72 | 71 |
Additional paid-in capital | 91,221 | 90,408 |
Accumulated deficit | (19,789) | (22,073) |
Accumulated other comprehensive loss | (5,575) | (5,826) |
Total stockholders’ equity | 65,929 | 62,580 |
Total liabilities and stockholders’ equity | 632,513 | 585,219 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock, value | ||
Series B Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock, value |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt securities held to maturity, fair value | $ 406 | $ 504 |
Loans, allowance for loan losses | $ 6,645 | $ 5,793 |
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 | 7,250,219 | 7,058,897 |
Common stock, shares outstanding | 7,250,219 | 7,058,897 |
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 | 1,360 |
Preferred stock, shares outstanding | 1,360 | 1,360 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest income: | ||||
Loans | $ 7,252 | $ 3,764 | $ 13,841 | $ 7,027 |
Debt securities | 172 | 159 | 350 | 322 |
Other | 755 | 102 | 1,504 | 139 |
Total interest income | 8,179 | 4,025 | 15,695 | 7,488 |
Interest expense: | ||||
Deposits | 2,556 | 170 | 4,988 | 345 |
Borrowings | 31 | 102 | 56 | 163 |
Total interest expense | 2,587 | 272 | 5,044 | 508 |
Net interest income | 5,592 | 3,753 | 10,651 | 6,980 |
Credit loss expense | 704 | 991 | 1,524 | 1,383 |
Net interest income after credit loss expense | 4,888 | 2,762 | 9,127 | 5,597 |
Noninterest income: | ||||
Service charges and fees | 759 | 680 | 1,478 | 1,269 |
Other | 13 | 84 | 23 | 145 |
Total noninterest income | 772 | 764 | 1,501 | 1,414 |
Noninterest expenses: | ||||
Salaries and employee benefits | 2,041 | 1,307 | 4,007 | 2,642 |
Professional fees | 171 | 142 | 368 | 289 |
Occupancy and equipment | 188 | 175 | 377 | 342 |
Data processing | 385 | 285 | 751 | 562 |
Regulatory assessment | 224 | 23 | 433 | 100 |
Litigation Settlement | 375 | 375 | ||
Other | 518 | 328 | 1,013 | 665 |
Total noninterest expenses | 3,902 | 2,260 | 7,324 | 4,600 |
Net earnings before income taxes | 1,758 | 1,266 | 3,304 | 2,411 |
Income taxes | 446 | 321 | 839 | 611 |
Net earnings | $ 1,312 | $ 945 | $ 2,465 | $ 1,800 |
Net earnings per share - Basic | $ 0.18 | $ 0.16 | $ 0.34 | $ 0.33 |
Net earnings per share - Diluted | $ 0.18 | $ 0.16 | $ 0.34 | $ 0.33 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net earnings | $ 1,312 | $ 945 | $ 2,465 | $ 1,800 |
Change in unrealized loss on debt securities: | ||||
Unrealized (loss) gain arising during the period | (380) | (3,124) | 335 | (5,905) |
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 1 | 4 | 2 | 11 |
Other comprehensive (loss) income before income taxes | (379) | (3,120) | 337 | (5,894) |
Deferred income taxes benefit (provision) | 91 | 792 | (85) | 1,495 |
Total other comprehensive (loss) income | (288) | (2,328) | 252 | (4,399) |
Comprehensive income (loss) | $ 1,024 | $ (1,383) | $ 2,717 | $ (2,599) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] Series A Preferred Stock [Member] | Preferred Stock [Member] Series B Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2021 | $ 48 | $ 65,193 | $ (26,096) | $ (635) | $ 38,510 | ||
Balance, shares at Dec. 31, 2021 | 760 | 4,775,281 | |||||
Proceeds from the sale of preferred stock (unaudited) | 6,500 | 6,500 | |||||
Proceeds from the sale of preferred stock (unaudited), shares | 260 | ||||||
Proceeds from the sale of common stock (unaudited) | $ 12 | 5,511 | 5,523 | ||||
Proceeds from the sale of common stock (unaudited), shares | 1,227,331 | ||||||
Net change in unrealized loss on debt securities available for sale (unaudited) | (2,078) | (2,078) | |||||
Amortization of unrealized loss on debt securities transferred to held-to-maturity (unaudited) | 7 | 7 | |||||
Net earnings (unaudited) | 855 | 855 | |||||
Balance at Mar. 31, 2022 | $ 60 | 77,204 | (25,241) | (2,706) | 49,317 | ||
Balance, shares at Mar. 31, 2022 | 1,020 | 6,002,612 | |||||
Balance at Dec. 31, 2021 | $ 48 | 65,193 | (26,096) | (635) | 38,510 | ||
Balance, shares at Dec. 31, 2021 | 760 | 4,775,281 | |||||
Net earnings (unaudited) | 1,800 | ||||||
Balance at Jun. 30, 2022 | $ 60 | 77,300 | (24,296) | (5,034) | 48,030 | ||
Balance, shares at Jun. 30, 2022 | 1,020 | 6,027,105 | |||||
Balance at Mar. 31, 2022 | $ 60 | 77,204 | (25,241) | (2,706) | 49,317 | ||
Balance, shares at Mar. 31, 2022 | 1,020 | 6,002,612 | |||||
Net change in unrealized loss on debt securities available for sale (unaudited) | (2,332) | (2,332) | |||||
Amortization of unrealized loss on debt securities transferred to held-to-maturity (unaudited) | 4 | 4 | |||||
Net earnings (unaudited) | 945 | 945 | |||||
Stock-based Compensation (unaudited) | 96 | 96 | |||||
Stock-based compensation (unaudited), shares | 24,493 | ||||||
Balance at Jun. 30, 2022 | $ 60 | 77,300 | (24,296) | (5,034) | 48,030 | ||
Balance, shares at Jun. 30, 2022 | 1,020 | 6,027,105 | |||||
Balance at Dec. 31, 2022 | $ 71 | 90,408 | (22,073) | (5,826) | 62,580 | ||
Balance, shares at Dec. 31, 2022 | 1,360 | 7,058,897 | |||||
Proceeds from the sale of common stock (unaudited) | 324 | 324 | |||||
Proceeds from the sale of common stock (unaudited), shares | 72,221 | ||||||
Net change in unrealized loss on debt securities available for sale (unaudited) | 538 | 538 | |||||
Amortization of unrealized loss on debt securities transferred to held-to-maturity (unaudited) | 1 | 1 | |||||
Net earnings (unaudited) | 1,153 | 1,153 | |||||
Stock-based Compensation (unaudited) | $ 1 | 489 | 490 | ||||
Stock-based compensation (unaudited), shares | 119,101 | ||||||
Additional allowance recognized due to adoption of Topic 326 | (181) | (181) | |||||
Balance at Mar. 31, 2023 | $ 72 | 91,221 | (21,101) | (5,287) | 64,905 | ||
Balance, shares at Mar. 31, 2023 | 1,360 | 7,250,219 | |||||
Balance at Dec. 31, 2022 | $ 71 | 90,408 | (22,073) | (5,826) | 62,580 | ||
Balance, shares at Dec. 31, 2022 | 1,360 | 7,058,897 | |||||
Net earnings (unaudited) | 2,465 | ||||||
Balance at Jun. 30, 2023 | $ 72 | 91,221 | (19,789) | (5,575) | 65,929 | ||
Balance, shares at Jun. 30, 2023 | 1,360 | 7,250,219 | |||||
Balance at Mar. 31, 2023 | $ 72 | 91,221 | (21,101) | (5,287) | 64,905 | ||
Balance, shares at Mar. 31, 2023 | 1,360 | 7,250,219 | |||||
Net change in unrealized loss on debt securities available for sale (unaudited) | (289) | (289) | |||||
Amortization of unrealized loss on debt securities transferred to held-to-maturity (unaudited) | 1 | 1 | |||||
Net earnings (unaudited) | 1,312 | 1,312 | |||||
Balance at Jun. 30, 2023 | $ 72 | $ 91,221 | $ (19,789) | $ (5,575) | $ 65,929 | ||
Balance, shares at Jun. 30, 2023 | 1,360 | 7,250,219 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 2,465 | $ 1,800 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Credit loss expense | 1,524 | 1,383 |
Depreciation and amortization | 115 | 115 |
Deferred income taxes | 734 | 613 |
Net accretion of fees, premiums and discounts | 11 | (252) |
Stock-based compensation expense | 490 | 96 |
Increase in accrued interest receivable | (115) | (26) |
Amortization of right of use asset | 134 | 217 |
Net decrease in operating lease liabilities | (117) | (211) |
Decrease (increase) in other assets | 315 | (332) |
(Decrease) increase in official checks and other liabilities | (221) | 1,050 |
Net cash provided by operating activities | 5,335 | 4,453 |
Cash flows from investing activities: | ||
Principal repayments of debt securities available for sale | 606 | 1,177 |
Principal repayments of debt securities held-to-maturity | 98 | 398 |
Net increase in loans | (43,098) | (102,070) |
Purchases of premises and equipment | (343) | (112) |
Purchase of FHLB stock | (117) | (1,932) |
Net cash used in investing activities | (42,854) | (102,539) |
Cash flows from financing activities: | ||
Net increase in deposits | 43,732 | 49,362 |
Net increase in FHLB Advances | 50,000 | |
Net change in repurchase agreements | 5,000 | |
Proceeds from sale of preferred stock | 6,500 | |
Proceeds from sale of common stock | 324 | 5,523 |
Net cash provided by financing activities | 44,056 | 116,385 |
Net increase in cash and cash equivalents | 6,537 | 18,299 |
Cash and cash equivalents at beginning of the period | 71,836 | 58,970 |
Cash and cash equivalents at end of the period | 78,373 | 77,269 |
Cash paid during the period for: | ||
Interest | 4,792 | 473 |
Income taxes | 395 | |
Noncash transactions: | ||
Change in accumulated other comprehensive loss, net change in unrealized loss on debt securities available for sale, net of income taxes | 252 | (4,399) |
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 2 | 11 |
Reduction stockholders’ equity due to adoption of Topic 326, net | (181) | |
Right-of use lease assets obtained in exchange for operating lease liabilities | 315 | |
Increase in other liabilities for stock-based compensation | $ 96 |
General
General | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
General | (1) General 100 Basis of Presentation Comprehensive Income (Loss) Accumulated other comprehensive loss consists of the following (in thousands): Schedule of Accumulated Other Comprehensive Loss June 30, December 31, 2023 2022 Unrealized loss on debt securities available for sale $ (7,452 ) $ (7,786 ) Unamortized portion of unrealized loss related to debt securities available for sale transferred to securities held-to-maturity (16 ) (18 ) Income tax benefit 1,893 1,978 Accumulated other comprehensive loss $ (5,575 ) $ (5,826 ) Reclassifications Adoption of New Accounting Standards Financial Instruments – Credit Losses The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The adoption of CECL resulted in the recognition of $ 219,000 23,000 61,000 181,000 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (1) General, Continued. Allowance for Credit Losses (“ACL”) ACL - Debt Securities Available for Sale. Changes in the ACL are recorded as credit loss expense (reversal). Losses are charged against the ACL when management believes the collectability of the debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the debt securities available for sale and does not record an ACL on accrued interest receivable. As of June 30, 2023, the accrued interest receivable for debt securities available for sale recognized in accrued interest receivable was $ 169,000 ACL – Debt Securities Held to Maturity. ACL - Loans. Management uses systematic methodologies to determine its ACL for loans and certain off- balance sheet credit exposures. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of the expected credit losses. Adjustments to historical loss information are made for the differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The Company’s estimate of its ACL involves a high degree of judgment; therefore, management’s process for determining expected credit losses may result in a range of expected credit losses. The Company’s ACL recorded in the balance sheet reflects management’s best estimate of expected credit losses. The Company recognizes in earnings the amount needed to adjust the ACL for management’s current estimate of expected credit losses. The Company’s ACL is calculated using collectively evaluated and individually evaluated loans. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (1) General, Continued. The ACL is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogenous segments for analysis. The Company’s ACL is measured based on FDIC call report codes as these types of loans exhibit similar risk characteristics. The loan portfolio is further segmented by loan product type, collateral codes, occupancy codes, property code or lien position and are representative of the manner in which the Company lends. The ACL for each segment is measured through the use of the average charge-off method. In accordance with the average charge-off method, an annual loss rate is applied to the amortized cost of an asset or pool of assets over the remaining expected life. The annual loss rate consists of historical and forecasted loss components. The forecasted component is applied using loss rates from historical periods that management believes are representative of economic conditions over a full economic cycle. For certain loan segments with limited credit loss histories, management determined the loss experience of peer banks provides the best basis for its assessment of expected credit losses. Other loan segments with more established loss histories utilize historical loss experience of the Company. Management determined that the appropriate historical loss period will begin in the first quarter of 2001 and continue through the most recent quarter, which represents a full peak to peak economic cycle. Additionally, management has determined that the Company’s reasonable and supportable forecast period is one year. Included in its systematic methodology to determine its ACL, management considers the need to qualitatively adjust model results for risk factors that are not considered within the Company’s loss estimation process but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors (“Q-Factors”) may increase or decrease management’s estimate of expected credit losses by a calculated percentage based upon the estimated level of risk. The various risks that may be considered in making Q-Factor adjustments include, among other things, the impact of 1) changes in lending policies and procedures, including changes in underwriting standards; 2) changes in international, national, regional and local economic conditions; 3) changes in the volume and severity of past due and nonaccrual status; 4) the effect of any concentrations of credit and changes in the levels of such concentrations; 5) changes in the experience, depth, and ability of lending management; 6) changes in nature and volume of the portfolio; 7) trends in underlying collateral values; 8) changes in the quality of the loan review system and 9) the effect of other external factors (i.e., competition, legal and regulatory requirements) on the level of estimated credit losses. The annual loss rates, as defined above, adjusted for Q-Factors, are applied to the amortized loan balances over each subsequent period and aggregated to arrive at the General ACL. The amortized loan balances are adjusted based on management’s estimate of loan repayments in future periods. When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another segment or should be individually evaluated. Under ASC 326, the Company has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining ACL. A Specific ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss to the extent their credit profile improves and that the repayment terms were not considered to be unique to the asset. Management measures expected credit losses over the contractual term of a loan. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: ● Management has a reasonable expectation at the reporting date that a loan modification will be executed with an individual borrower. ● The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (1) General, Continued. The Company follows its nonaccrual policy by reversing contractual interest income in the consolidated statements of income when the Company places a loan on nonaccrual status. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an ACL on accrued interest receivable. As of June 30, 2023, the accrued interest receivable for loans was $ 1,377,000 Also, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to recognize additions to the allowance for credit losses based on their judgments of information available to them at the time of their examination. Prior to the adoption of ASC 326, the allowance for loan losses represented management’s best estimate of inherent losses that had been incurred within the existing portfolio of loans. The allowance for loan losses included allowance allocations calculated in accordance with ASC 310, “Receivables” and allowance allocations calculated in accordance with ASC 450, “Contingencies.” ACL - Off -Balance Sheet Credit Exposures. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their expected lives. Management used its judgement to determinate funding rates. Management applied the funding rates, along with the loss factor rate determined for each pooled loan segment, to unfunded loan commitments, excluding unconditionally cancellable exposures and letters of credit, to arrive at the reserve for unfunded loan commitments. As of June 30, 2023, the liability recorded for expected credit losses on unfunded commitments was $ 236,000 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) |
Debt Securities
Debt Securities | 6 Months Ended |
Jun. 30, 2023 | |
Debt Securities | |
Debt Securities | (2) Debt Securities Schedule of Amortized Cost and Approximate Fair Values of Debt Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value At June 30, 2023: Available for sale: SBA Pool Securities $ 775 $ 1 $ (17 ) $ 759 Collateralized mortgage obligations 139 — (15 ) 124 Taxable municipal securities 16,710 — (4,699 ) 12,011 Mortgage-backed securities 14,589 — (2,721 ) 11,868 Total $ 32,213 $ 1 $ (7,452 ) $ 24,762 Held-to-maturity: Collateralized mortgage obligations $ 415 $ — $ (39 ) $ 376 Mortgage-backed securities 30 — — 30 Total $ 445 $ — $ (39 ) $ 406 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses 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 There were no (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (2) Debt Securities, Continued. Debt Securities available for sale 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 Available for Sale with Gross Unrealized Losses, by Investment Category Over Twelve Months Less Than Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value At June 30, 2023: Available for Sale: SBA Pool Securities $ 17 $ 607 $ — $ — Collateralized mortgage obligation 15 124 — — Taxable municipal securities 4,699 12,012 — — Mortgage-backed securities 2,721 11,868 — — Total $ 7,452 $ 24,611 $ — $ — Over Twelve Months Less Than Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value At December 31, 2022: Available for Sale : SBA Pool Securities $ 18 $ 657 $ — $ — Collateralized mortgage obligation — — 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 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (2) Debt Securities, Continued. At June 30, 2023 and December 31, 2022, the unrealized losses on forty-two forty Management evaluates debt securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the financial condition and near-term prospects of the issuer including looking at default and delinquency rates, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) the intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that the Company will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third party guarantees, and (8) collateral values. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the investments. The Company performed an analysis that determined that the mortgage-backed securities, collateralized mortgage obligations, and U.S. government securities, have a zero expected credit loss as they have the full faith and credit backing of the U.S. government or one of its agencies. Municipal bonds that do not have a zero expected credit loss are evaluated at least quarterly to determine whether there is a credit loss associated with a decline in fair value. At June 30, 2023 and December 31, 2022 all municipal securities were rated as investment grade. All debt securities in an unrealized loss position as of June 30, 2023 continue to perform as scheduled and the Company does not believe that there is a credit loss or that credit loss expense is necessary. Also, as part of our evaluation of our intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers our investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. The Company does not currently intend to sell the investments within the portfolio, and it is not more-likely-than-not that a sale will be required. Management continues to monitor all of our investments with a high degree of scrutiny. There can be no assurance that in a future period, conditions may exist at that time indicating that some or all of the Company’s securities may be sold that would require a charge to earnings as credit loss expense in such period. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) |
Loans
Loans | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans | (3) Loans Schedule of Components of Loans June 30, December 31, 2023 2022 Residential real estate $ 60,273 $ 50,354 Multi-family real estate 69,518 69,555 Commercial real estate 321,814 310,695 Land and construction 27,019 17,286 Commercial 6,950 5,165 Consumer 40,686 30,323 Total loans 526,260 483,378 Deduct: Net deferred loan fees, and costs (786 ) (367 ) Allowance for credit losses (6,645 ) (5,793 ) Loans, net $ 518,829 $ 477,218 An analysis of the change in the allowance for credit losses follows (in thousands): Schedule of Changes in Allowance for Loan Losses Real Estate Real Estate Real Estate Construction Commercial Consumer Total Residential Multi-Family Commercial Land and Real Estate Real Estate Real Estate Construction Commercial Consumer Total Three Months Ended June 30, 2023: Balance March 31, 2023 $ 742 $ 1,077 $ 3,030 $ 533 $ 26 $ 945 $ 6,353 Credit loss expense (income) 141 (40 ) (228 ) 147 38 487 545 Charge-offs — — — — (16 ) (367 ) (383 ) Recoveries — — — — 87 43 130 Ending balance (June 30, 2023) $ 883 $ 1,037 $ 2,802 $ 680 $ 135 $ 1,108 $ 6,645 Three Months Ended June 30, 2022: Beginning balance $ 575 $ 549 $ 1,607 $ 79 $ 68 $ 530 $ 3,408 (Credit) provision for loan losses (61 ) 70 733 (8 ) 33 224 991 Charge-offs — — — — (90 ) (136 ) (226 ) Recoveries — — — — 56 14 70 Ending balance (June 30, 2022) $ 514 $ 619 $ 2,340 $ 71 $ 67 $ 632 $ 4,243 Six Months Ended June 30, 2023: Beginning balance Dec 31, 2022 $ 768 $ 748 $ 3,262 $ 173 $ 277 $ 565 $ 5,793 Additional allowance recognized due to adoption of Topic 326 33 327 (367 ) 278 (262 ) 209 218 Balance January 31, 2023 $ 801 $ 1,075 $ 2,895 $ 451 $ 15 $ 774 $ 6,011 Credit loss expense (income) 82 (38 ) (93 ) 229 75 1,056 1,311 Charge-offs — — — — (42 ) (804 ) (846 ) Recoveries — — — — 87 82 169 Ending balance (June 30, 2023) $ 883 $ 1,037 $ 2,802 $ 680 $ 135 $ 1,108 $ 6,645 Six Months Ended June 30, 2022: Beginning balance $ 482 $ 535 $ 1,535 $ 32 $ 74 $ 417 $ 3,075 Provision for loan losses 32 84 805 39 27 396 1,383 Charge-offs — — — — (90 ) (209 ) (299 ) Recoveries — — — — 56 28 84 Ending balance $ 514 $ 619 $ 2,340 $ 71 $ 67 $ 632 $ 4,243 OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (3) Loans, Continued. Residential Multi-Family Commercial Real Real Real 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 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (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 Condensed Consolidated Financial Statements (Unaudited) (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 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 net 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 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 effected in the future. The Company fully charges off any loan classified as loss. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (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 Past Total Past Due Current Nonaccrual Loans Total Loans At June 30, 2023: Residential real estate $ — $ — $ — $ — $ 60,273 $ — $ 60,273 Multi-family real estate 1,259 — — 1,259 68,259 — 69,518 Commercial real estate — — — — 321,814 — 321,814 Land and construction — — — — 27,019 — 27,019 Commercial — — — — 6,950 — 6,950 Consumer 347 158 — 505 40,181 — 40,686 Total $ 1,606 $ 158 $ — $ 1,764 $ 524,496 $ — $ 526,260 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 The Company has not made any modifications of loans to borrowers experiencing financial difficulties during the six months ended June 30, 2023. No loans have been determined to be troubled debt restructurings (TDR’s) during the six-month period ended June 30, 2022. At June 30, 2023 and 2022, there were no loans modified and entered into as TDR’s within the past twelve months, that subsequently defaulted during the six-month periods ended June 30, 2022. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (3) Loans, Continued. Term Loans Amortized Cost Basis by Origination Year Schedule of Amortized Cost Basis Term Loans Revolving Loans (Amortized Revolving Loans Converted to Term Loans (Amortized land and construction June 30, 2023 2022 2021 2020 2019 Prior Cost Basis) Cost Basis) Total Pass $ 6,406 $ 15,136 $ 2,324 $ 1,509 $ 1,644 $ - $ - $ - $ 27,019 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 6,406 $ 15,136 $ 2,324 $ 1,509 $ 1,644 $ - $ - $ - $ 27,019 Current period Gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential real estate Pass $ 7,350 $ 26,567 $ 9,853 $ 6,686 $ 4,097 $ 3,286 $ 2,434 $ - $ 60,273 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 7,350 $ 26,567 $ 9,853 $ 6,686 $ 4,097 $ 3,286 $ 2,434 $ - $ 60,273 Current period Gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (3) Loans, Continued. Term Loans Amortized Cost Basis by Origination Year Term Loans Revolving Loans (Amortized Revolving Loans Converted to Term Loans (Amortized Multi-family real estate June 30, 2023 2022 2021 2020 2019 Prior Cost Basis) Cost Basis) Total Pass $ 998 $ 29,396 $ 29,570 $ 6,185 $ 2,090 $ 1,279 $ - $ - $ 69,518 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 998 $ 29,396 $ 29,570 $ 6,185 $ 2,090 $ 1,279 $ - $ - $ 69,518 Current period Gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate (CRE) Pass $ 20,590 $ 199,769 $ 55,017 $ 16,183 $ 12,815 $ 16,218 $ - $ - $ 320,592 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - 1,222 - - - 1,222 Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 20,590 $ 199,769 $ 55,017 $ 16,183 $ 14,037 $ 16,218 $ - $ - $ 321,814 Current period Gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial Pass $ 4,044 $ 1,401 $ 1,363 $ 85 $ 57 $ - $ - $ - $ 6,950 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 4,044 $ 1,401 $ 1,363 $ 85 $ 57 $ - $ - $ - $ 6,950 Current period Gross charge-offs $ (16 ) $ - $ - $ - $ - $ (26 ) $ - $ - $ (42 ) Consumer Pass $ 8,798 $ 9,359 $ 5,612 $ 250 $ 198 $ - $ 16,469 $ - $ 40,686 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 8,798 $ 9,359 $ 5,612 $ 250 $ 198 $ - $ 16,469 $ - $ 40,686 Current period Gross charge-offs $ (30 ) $ (505 ) $ (266 ) $ (3 ) $ - $ - $ - $ - $ (804 ) (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (4) Earnings Per Share Schedule of Basic and Diluted Loss Per Share 2023 2022 2023 2022 Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Weighted-average number of common shares outstanding used to calculate basic and diluted earnings per common share $ 7,250,219 $ 6,007,484 $ 7,226,953 $ 5,455,406 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | (5) 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 (the “2018 Plan”). The plan has been approved by the shareholders. The Company is currently authorized to issue up to 1,050,000 500,000 1,050,000 539,320 During the six-month period ended June 30, 2023, the Company issued 66,479 274,000 During the six-month period ended June 30, 2023, the Company issued 52,622 216,000 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (6) Fair Value Measurements 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 June 30, 2023: SBA Pool Securities $ 759 $ — $ 759 — Collateralized mortgage obligations 124 — 124 — Taxable municipal securities 12,011 — 12,011 — Mortgage-backed securities 11,868 — 11,868 — Total $ 24,762 — $ 24,762 — 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 — |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | (7) Fair Value of Financial Instruments Schedule of Estimated Fair Value of Financial Instruments At June 30, 2023 At December 31, 2022 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 78,373 $ 78,373 1 $ 71,836 $ 71,836 1 Debt securities available for sale 24,762 24,762 2 25,102 25,102 2 Debt securities held-to-maturity 445 406 2 540 504 2 Loans 518,829 512,031 3 477,218 476,566 3 Federal Home Loan Bank stock 717 717 3 600 600 3 Accrued interest receivable 1,559 1,559 3 1,444 1,444 3 Financial liabilities: Deposit liabilities 551,631 556,017 3 507,899 512,357 3 Federal Home Loan Bank advances 10,000 9,456 3 10,000 9,450 3 Off-balance sheet financial instruments — — 3 — — 3 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) |
Off- Balance Sheet Financial In
Off- Balance Sheet Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Off- Balance Sheet Financial Instruments | |
Off- Balance Sheet Financial Instruments | (8) Off- Balance Sheet Financial Instruments The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments. 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 Bank 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 Bank 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 June 30, 2023 follows (in thousands): Schedule of Off-Balance Sheet Risks of Financial Instruments Commitments to extend credit $ 32,184 Unused lines of credit $ 56,272 Standby letters of credit $ 4,313 |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Matters | (9) Regulatory Matters (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (9) Regulatory Matters, Continued. As of June 30, 2023 and December 31, 2022, 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 Amounts, Ratios and Regulatory Thresholds Actual To Be Well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework) Amount % Amount % As of June 30, 2023: Tier 1 Capital to Total Assets 69,234 11.20 % 55,616 9.00 % As of December 31, 2022: Tier 1 Capital to Total Assets 66,291 11.29 % 52,865 9.00 % (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) |
Series B Preferred Stock
Series B Preferred Stock | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Series B Preferred Stock | (10) Series B Preferred Stock Except in the event of liquidation, if the Company declares or pays a dividend or distribution on the common stock, the Company shall simultaneously declare and pay a dividend on the Series B Preferred Stock on a pro rata basis with the common stock determined on an as-converted basis assuming all shares of Series B Preferred Stock had been converted immediately prior to the record date of the applicable dividend. As of June 30, 2023 the Series B Preferred Stock is convertible into 11,113,889 25,000 The Series B Preferred Stock are subdivided into three categories. The Company is authorized to issue 760 260 500 Each series has substantially the same rights, preferences, powers, restrictions and limitations, except that the initial conversion price of the Series B-1 is $ 2.50 4.00 4.50 During the Annual Meeting of Shareholders held on June 27, 2023, the Company’s shareholders approved the issuance of up to 11,113,889 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | (11) Contingencies During the three-months ended June 30, 2023 the Company incurred a one-time expense relate to the settlement of a foreclosure litigation in the amount of $ 375,000 |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accumulated other comprehensive loss consists of the following (in thousands): Schedule of Accumulated Other Comprehensive Loss June 30, December 31, 2023 2022 Unrealized loss on debt securities available for sale $ (7,452 ) $ (7,786 ) Unamortized portion of unrealized loss related to debt securities available for sale transferred to securities held-to-maturity (16 ) (18 ) Income tax benefit 1,893 1,978 Accumulated other comprehensive loss $ (5,575 ) $ (5,826 ) |
Reclassifications | Reclassifications |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Financial Instruments – Credit Losses The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The adoption of CECL resulted in the recognition of $ 219,000 23,000 61,000 181,000 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (1) General, Continued. |
Allowance for Credit Losses (“ACL”) | Allowance for Credit Losses (“ACL”) ACL - Debt Securities Available for Sale. Changes in the ACL are recorded as credit loss expense (reversal). Losses are charged against the ACL when management believes the collectability of the debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the debt securities available for sale and does not record an ACL on accrued interest receivable. As of June 30, 2023, the accrued interest receivable for debt securities available for sale recognized in accrued interest receivable was $ 169,000 ACL – Debt Securities Held to Maturity. ACL - Loans. Management uses systematic methodologies to determine its ACL for loans and certain off- balance sheet credit exposures. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of the expected credit losses. Adjustments to historical loss information are made for the differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The Company’s estimate of its ACL involves a high degree of judgment; therefore, management’s process for determining expected credit losses may result in a range of expected credit losses. The Company’s ACL recorded in the balance sheet reflects management’s best estimate of expected credit losses. The Company recognizes in earnings the amount needed to adjust the ACL for management’s current estimate of expected credit losses. The Company’s ACL is calculated using collectively evaluated and individually evaluated loans. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (1) General, Continued. The ACL is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogenous segments for analysis. The Company’s ACL is measured based on FDIC call report codes as these types of loans exhibit similar risk characteristics. The loan portfolio is further segmented by loan product type, collateral codes, occupancy codes, property code or lien position and are representative of the manner in which the Company lends. The ACL for each segment is measured through the use of the average charge-off method. In accordance with the average charge-off method, an annual loss rate is applied to the amortized cost of an asset or pool of assets over the remaining expected life. The annual loss rate consists of historical and forecasted loss components. The forecasted component is applied using loss rates from historical periods that management believes are representative of economic conditions over a full economic cycle. For certain loan segments with limited credit loss histories, management determined the loss experience of peer banks provides the best basis for its assessment of expected credit losses. Other loan segments with more established loss histories utilize historical loss experience of the Company. Management determined that the appropriate historical loss period will begin in the first quarter of 2001 and continue through the most recent quarter, which represents a full peak to peak economic cycle. Additionally, management has determined that the Company’s reasonable and supportable forecast period is one year. Included in its systematic methodology to determine its ACL, management considers the need to qualitatively adjust model results for risk factors that are not considered within the Company’s loss estimation process but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors (“Q-Factors”) may increase or decrease management’s estimate of expected credit losses by a calculated percentage based upon the estimated level of risk. The various risks that may be considered in making Q-Factor adjustments include, among other things, the impact of 1) changes in lending policies and procedures, including changes in underwriting standards; 2) changes in international, national, regional and local economic conditions; 3) changes in the volume and severity of past due and nonaccrual status; 4) the effect of any concentrations of credit and changes in the levels of such concentrations; 5) changes in the experience, depth, and ability of lending management; 6) changes in nature and volume of the portfolio; 7) trends in underlying collateral values; 8) changes in the quality of the loan review system and 9) the effect of other external factors (i.e., competition, legal and regulatory requirements) on the level of estimated credit losses. The annual loss rates, as defined above, adjusted for Q-Factors, are applied to the amortized loan balances over each subsequent period and aggregated to arrive at the General ACL. The amortized loan balances are adjusted based on management’s estimate of loan repayments in future periods. When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another segment or should be individually evaluated. Under ASC 326, the Company has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining ACL. A Specific ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss to the extent their credit profile improves and that the repayment terms were not considered to be unique to the asset. Management measures expected credit losses over the contractual term of a loan. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: ● Management has a reasonable expectation at the reporting date that a loan modification will be executed with an individual borrower. ● The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (1) General, Continued. The Company follows its nonaccrual policy by reversing contractual interest income in the consolidated statements of income when the Company places a loan on nonaccrual status. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an ACL on accrued interest receivable. As of June 30, 2023, the accrued interest receivable for loans was $ 1,377,000 Also, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to recognize additions to the allowance for credit losses based on their judgments of information available to them at the time of their examination. Prior to the adoption of ASC 326, the allowance for loan losses represented management’s best estimate of inherent losses that had been incurred within the existing portfolio of loans. The allowance for loan losses included allowance allocations calculated in accordance with ASC 310, “Receivables” and allowance allocations calculated in accordance with ASC 450, “Contingencies.” ACL - Off -Balance Sheet Credit Exposures. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their expected lives. Management used its judgement to determinate funding rates. Management applied the funding rates, along with the loss factor rate determined for each pooled loan segment, to unfunded loan commitments, excluding unconditionally cancellable exposures and letters of credit, to arrive at the reserve for unfunded loan commitments. As of June 30, 2023, the liability recorded for expected credit losses on unfunded commitments was $ 236,000 |
General (Tables)
General (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following (in thousands): Schedule of Accumulated Other Comprehensive Loss June 30, December 31, 2023 2022 Unrealized loss on debt securities available for sale $ (7,452 ) $ (7,786 ) Unamortized portion of unrealized loss related to debt securities available for sale transferred to securities held-to-maturity (16 ) (18 ) Income tax benefit 1,893 1,978 Accumulated other comprehensive loss $ (5,575 ) $ (5,826 ) |
Debt Securities (Tables)
Debt Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Securities | |
Schedule of Amortized Cost and Approximate Fair Values of Debt Securities | Schedule of Amortized Cost and Approximate Fair Values of Debt Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value At June 30, 2023: Available for sale: SBA Pool Securities $ 775 $ 1 $ (17 ) $ 759 Collateralized mortgage obligations 139 — (15 ) 124 Taxable municipal securities 16,710 — (4,699 ) 12,011 Mortgage-backed securities 14,589 — (2,721 ) 11,868 Total $ 32,213 $ 1 $ (7,452 ) $ 24,762 Held-to-maturity: Collateralized mortgage obligations $ 415 $ — $ (39 ) $ 376 Mortgage-backed securities 30 — — 30 Total $ 445 $ — $ (39 ) $ 406 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses 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 |
Schedule of Debt Securities Available for Sale with Gross Unrealized Losses, by Investment Category | Debt Securities available for sale 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 Available for Sale with Gross Unrealized Losses, by Investment Category Over Twelve Months Less Than Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value At June 30, 2023: Available for Sale: SBA Pool Securities $ 17 $ 607 $ — $ — Collateralized mortgage obligation 15 124 — — Taxable municipal securities 4,699 12,012 — — Mortgage-backed securities 2,721 11,868 — — Total $ 7,452 $ 24,611 $ — $ — Over Twelve Months Less Than Twelve Months Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value At December 31, 2022: Available for Sale : SBA Pool Securities $ 18 $ 657 $ — $ — Collateralized mortgage obligation — — 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 (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (2) Debt Securities, Continued. At June 30, 2023 and December 31, 2022, the unrealized losses on forty-two forty Management evaluates debt securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the financial condition and near-term prospects of the issuer including looking at default and delinquency rates, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) the intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that the Company will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third party guarantees, and (8) collateral values. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the investments. The Company performed an analysis that determined that the mortgage-backed securities, collateralized mortgage obligations, and U.S. government securities, have a zero expected credit loss as they have the full faith and credit backing of the U.S. government or one of its agencies. Municipal bonds that do not have a zero expected credit loss are evaluated at least quarterly to determine whether there is a credit loss associated with a decline in fair value. At June 30, 2023 and December 31, 2022 all municipal securities were rated as investment grade. All debt securities in an unrealized loss position as of June 30, 2023 continue to perform as scheduled and the Company does not believe that there is a credit loss or that credit loss expense is necessary. Also, as part of our evaluation of our intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers our investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. The Company does not currently intend to sell the investments within the portfolio, and it is not more-likely-than-not that a sale will be required. Management continues to monitor all of our investments with a high degree of scrutiny. There can be no assurance that in a future period, conditions may exist at that time indicating that some or all of the Company’s securities may be sold that would require a charge to earnings as credit loss expense in such period. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Components of Loans | Schedule of Components of Loans June 30, December 31, 2023 2022 Residential real estate $ 60,273 $ 50,354 Multi-family real estate 69,518 69,555 Commercial real estate 321,814 310,695 Land and construction 27,019 17,286 Commercial 6,950 5,165 Consumer 40,686 30,323 Total loans 526,260 483,378 Deduct: Net deferred loan fees, and costs (786 ) (367 ) Allowance for credit losses (6,645 ) (5,793 ) Loans, net $ 518,829 $ 477,218 |
Schedule of Changes in Allowance for Loan Losses | An analysis of the change in the allowance for credit losses follows (in thousands): Schedule of Changes in Allowance for Loan Losses Real Estate Real Estate Real Estate Construction Commercial Consumer Total Residential Multi-Family Commercial Land and Real Estate Real Estate Real Estate Construction Commercial Consumer Total Three Months Ended June 30, 2023: Balance March 31, 2023 $ 742 $ 1,077 $ 3,030 $ 533 $ 26 $ 945 $ 6,353 Credit loss expense (income) 141 (40 ) (228 ) 147 38 487 545 Charge-offs — — — — (16 ) (367 ) (383 ) Recoveries — — — — 87 43 130 Ending balance (June 30, 2023) $ 883 $ 1,037 $ 2,802 $ 680 $ 135 $ 1,108 $ 6,645 Three Months Ended June 30, 2022: Beginning balance $ 575 $ 549 $ 1,607 $ 79 $ 68 $ 530 $ 3,408 (Credit) provision for loan losses (61 ) 70 733 (8 ) 33 224 991 Charge-offs — — — — (90 ) (136 ) (226 ) Recoveries — — — — 56 14 70 Ending balance (June 30, 2022) $ 514 $ 619 $ 2,340 $ 71 $ 67 $ 632 $ 4,243 Six Months Ended June 30, 2023: Beginning balance Dec 31, 2022 $ 768 $ 748 $ 3,262 $ 173 $ 277 $ 565 $ 5,793 Additional allowance recognized due to adoption of Topic 326 33 327 (367 ) 278 (262 ) 209 218 Balance January 31, 2023 $ 801 $ 1,075 $ 2,895 $ 451 $ 15 $ 774 $ 6,011 Credit loss expense (income) 82 (38 ) (93 ) 229 75 1,056 1,311 Charge-offs — — — — (42 ) (804 ) (846 ) Recoveries — — — — 87 82 169 Ending balance (June 30, 2023) $ 883 $ 1,037 $ 2,802 $ 680 $ 135 $ 1,108 $ 6,645 Six Months Ended June 30, 2022: Beginning balance $ 482 $ 535 $ 1,535 $ 32 $ 74 $ 417 $ 3,075 Provision for loan losses 32 84 805 39 27 396 1,383 Charge-offs — — — — (90 ) (209 ) (299 ) Recoveries — — — — 56 28 84 Ending balance $ 514 $ 619 $ 2,340 $ 71 $ 67 $ 632 $ 4,243 OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (3) Loans, Continued. Residential Multi-Family Commercial Real Real Real 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 (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 |
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 Past Total Past Due Current Nonaccrual Loans Total Loans At June 30, 2023: Residential real estate $ — $ — $ — $ — $ 60,273 $ — $ 60,273 Multi-family real estate 1,259 — — 1,259 68,259 — 69,518 Commercial real estate — — — — 321,814 — 321,814 Land and construction — — — — 27,019 — 27,019 Commercial — — — — 6,950 — 6,950 Consumer 347 158 — 505 40,181 — 40,686 Total $ 1,606 $ 158 $ — $ 1,764 $ 524,496 $ — $ 526,260 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 |
Schedule of Amortized Cost Basis | Schedule of Amortized Cost Basis Term Loans Revolving Loans (Amortized Revolving Loans Converted to Term Loans (Amortized land and construction June 30, 2023 2022 2021 2020 2019 Prior Cost Basis) Cost Basis) Total Pass $ 6,406 $ 15,136 $ 2,324 $ 1,509 $ 1,644 $ - $ - $ - $ 27,019 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 6,406 $ 15,136 $ 2,324 $ 1,509 $ 1,644 $ - $ - $ - $ 27,019 Current period Gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential real estate Pass $ 7,350 $ 26,567 $ 9,853 $ 6,686 $ 4,097 $ 3,286 $ 2,434 $ - $ 60,273 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 7,350 $ 26,567 $ 9,853 $ 6,686 $ 4,097 $ 3,286 $ 2,434 $ - $ 60,273 Current period Gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statements (Unaudited) (3) Loans, Continued. Term Loans Amortized Cost Basis by Origination Year Term Loans Revolving Loans (Amortized Revolving Loans Converted to Term Loans (Amortized Multi-family real estate June 30, 2023 2022 2021 2020 2019 Prior Cost Basis) Cost Basis) Total Pass $ 998 $ 29,396 $ 29,570 $ 6,185 $ 2,090 $ 1,279 $ - $ - $ 69,518 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 998 $ 29,396 $ 29,570 $ 6,185 $ 2,090 $ 1,279 $ - $ - $ 69,518 Current period Gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate (CRE) Pass $ 20,590 $ 199,769 $ 55,017 $ 16,183 $ 12,815 $ 16,218 $ - $ - $ 320,592 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - 1,222 - - - 1,222 Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 20,590 $ 199,769 $ 55,017 $ 16,183 $ 14,037 $ 16,218 $ - $ - $ 321,814 Current period Gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial Pass $ 4,044 $ 1,401 $ 1,363 $ 85 $ 57 $ - $ - $ - $ 6,950 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 4,044 $ 1,401 $ 1,363 $ 85 $ 57 $ - $ - $ - $ 6,950 Current period Gross charge-offs $ (16 ) $ - $ - $ - $ - $ (26 ) $ - $ - $ (42 ) Consumer Pass $ 8,798 $ 9,359 $ 5,612 $ 250 $ 198 $ - $ 16,469 $ - $ 40,686 OLEM (Other Loans Especially Mentioned) - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Subtotal loans $ 8,798 $ 9,359 $ 5,612 $ 250 $ 198 $ - $ 16,469 $ - $ 40,686 Current period Gross charge-offs $ (30 ) $ (505 ) $ (266 ) $ (3 ) $ - $ - $ - $ - $ (804 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss Per Share | Schedule of Basic and Diluted Loss Per Share 2023 2022 2023 2022 Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Weighted-average number of common shares outstanding used to calculate basic and diluted earnings per common share $ 7,250,219 $ 6,007,484 $ 7,226,953 $ 5,455,406 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023: SBA Pool Securities $ 759 $ — $ 759 — Collateralized mortgage obligations 124 — 124 — Taxable municipal securities 12,011 — 12,011 — Mortgage-backed securities 11,868 — 11,868 — Total $ 24,762 — $ 24,762 — 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 — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of Estimated Fair Value of Financial Instruments | Schedule of Estimated Fair Value of Financial Instruments At June 30, 2023 At December 31, 2022 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 78,373 $ 78,373 1 $ 71,836 $ 71,836 1 Debt securities available for sale 24,762 24,762 2 25,102 25,102 2 Debt securities held-to-maturity 445 406 2 540 504 2 Loans 518,829 512,031 3 477,218 476,566 3 Federal Home Loan Bank stock 717 717 3 600 600 3 Accrued interest receivable 1,559 1,559 3 1,444 1,444 3 Financial liabilities: Deposit liabilities 551,631 556,017 3 507,899 512,357 3 Federal Home Loan Bank advances 10,000 9,456 3 10,000 9,450 3 Off-balance sheet financial instruments — — 3 — — 3 |
Off- Balance Sheet Financial _2
Off- Balance Sheet Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Off- Balance Sheet Financial Instruments | |
Schedule of Off-Balance Sheet Risks of Financial Instruments | Schedule of Off-Balance Sheet Risks of Financial Instruments Commitments to extend credit $ 32,184 Unused lines of credit $ 56,272 Standby letters of credit $ 4,313 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Schedule of Capital Amounts, Ratios and Regulatory Thresholds | Schedule of Capital Amounts, Ratios and Regulatory Thresholds Actual To Be Well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework) Amount % Amount % As of June 30, 2023: Tier 1 Capital to Total Assets 69,234 11.20 % 55,616 9.00 % As of December 31, 2022: Tier 1 Capital to Total Assets 66,291 11.29 % 52,865 9.00 % |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Unrealized loss on debt securities available for sale | $ (7,452) | $ (7,786) |
Unamortized portion of unrealized loss related to debt securities available for sale transferred to securities held-to-maturity | (16) | (18) |
Income tax benefit | 1,893 | 1,978 |
Accumulated other comprehensive loss | $ (5,575) | $ (5,826) |
General (Details Narrative)
General (Details Narrative) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Retained earnings | $ (19,789,000) | $ (22,073,000) |
Accrued interest receivable for debt securities available for sale | 169,000 | |
Accrued interest receivable | 1,559,000 | 1,444,000 |
Liability for credit losses on unfunded commitments | ||
Unfunded Loan Commitment [Member] | ||
Liability for credit losses on unfunded commitments | 236,000 | |
Loan [Member] | ||
Accrued interest receivable | 1,377,000 | |
Accounting Standards Update 2016-13 [Member] | ||
Allowance for credit losses | 219,000 | |
Liability for unfunded commitments | 23,000 | |
Deferred income tax assets, net | 61,000 | |
Retained earnings | $ 181,000 | |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | $ 32,213 | $ 32,888 |
Available for sale, gross unrealized gains | 1 | 1 |
Available for sale, gross unrealized losses | (7,452) | (7,787) |
Available for sale, fair value | 24,762 | 25,102 |
Held-to-maturity, amortized cost | 445 | 540 |
Held-to-maturity, gross unrealized gains | ||
Held-to-maturity, gross unrealized losses | (39) | (36) |
Held-to-maturity, fair value | 406 | 504 |
Taxable Municipal Bonds [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, gross unrealized gains | ||
Taxable Municipal Bonds [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | 16,710 | 16,729 |
Available for sale, gross unrealized losses | (4,699) | (5,109) |
Available for sale, fair value | 12,011 | 11,620 |
SBA Pool Securities [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | 775 | 834 |
Available for sale, gross unrealized gains | 1 | 1 |
Available for sale, gross unrealized losses | (17) | (18) |
Available for sale, fair value | 759 | 817 |
Collateralized Mortgage Obligations [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | 139 | 145 |
Available for sale, gross unrealized gains | ||
Available for sale, gross unrealized losses | (15) | (15) |
Available for sale, fair value | 124 | 130 |
Held-to-maturity, amortized cost | 415 | 475 |
Held-to-maturity, gross unrealized gains | ||
Held-to-maturity, gross unrealized losses | (39) | (35) |
Held-to-maturity, fair value | 376 | 440 |
Collateralized Mortgage-Backed Securities [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for sale, amortized cost | 14,589 | 15,180 |
Available for sale, gross unrealized gains | ||
Available for sale, gross unrealized losses | (2,721) | (2,645) |
Available for sale, fair value | 11,868 | 12,535 |
Held-to-maturity, amortized cost | 30 | 65 |
Held-to-maturity, gross unrealized gains | ||
Held-to-maturity, gross unrealized losses | (1) | |
Held-to-maturity, fair value | $ 30 | $ 64 |
Schedule of Debt Securities Ava
Schedule of Debt Securities Available for Sale with Gross Unrealized Losses, by Investment Category (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | $ 7,452 | $ 7,748 |
Available for Sale, Securities Position Over 12 Months, Fair Value | 24,611 | 24,569 |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 39 | |
Available for Sale, Securities Position Less than 12 Month, Fair Value | 373 | |
Taxable Municipal Bonds [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | 4,699 | 5,109 |
Available for Sale, Securities Position Over 12 Months, Fair Value | 12,012 | 11,620 |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | ||
Available for Sale, Securities Position Less than 12 Month, Fair Value | ||
SBA Pool Securities [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | 17 | 18 |
Available for Sale, Securities Position Over 12 Months, Fair Value | 607 | 657 |
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 | 15 | |
Available for Sale, Securities Position Over 12 Months, Fair Value | 124 | |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 15 | |
Available for Sale, Securities Position Less than 12 Month, Fair Value | 130 | |
Collateralized Mortgage-Backed Securities [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Available for Sale, Securities Position Over 12 Months, Gross unrealized Losses | 2,721 | 2,621 |
Available for Sale, Securities Position Over 12 Months, Fair Value | 11,868 | 12,292 |
Available for Sale, Securities Position Less than 12 Month, Gross unrealized Losses | 24 | |
Available for Sale, Securities Position Less than 12 Month, Fair Value | $ 243 |
Debt Securities (Details Narrat
Debt Securities (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Debt Securities | |||
Available for sale debt securities | $ 0 | $ 0 | |
Debt securities in unrealized loss | forty-two | forty |
Schedule of Components of Loans
Schedule of Components of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||||||
Total loans | $ 526,260 | $ 483,378 | ||||
Net deferred loan fees, and costs | (786) | (367) | ||||
Allowance for credit losses | (6,645) | $ (6,353) | (5,793) | $ (4,243) | $ (3,408) | $ (3,075) |
Loans, net | 518,829 | 477,218 | ||||
Residential Portfolio Segment [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Total loans | 60,273 | 50,354 | ||||
Allowance for credit losses | (883) | (742) | (768) | (514) | (575) | (482) |
Multi Family Real Estate [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Total loans | 69,518 | 69,555 | ||||
Allowance for credit losses | (1,037) | (1,077) | (748) | (619) | (549) | (535) |
Commercial Real Estate Portfolio Segment [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Total loans | 321,814 | 310,695 | ||||
Allowance for credit losses | (2,802) | (3,030) | (3,262) | (2,340) | (1,607) | (1,535) |
Construction Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Total loans | 27,019 | 17,286 | ||||
Allowance for credit losses | (680) | (533) | (173) | (71) | (79) | (32) |
Commercial Portfolio Segment [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Total loans | 6,950 | 5,165 | ||||
Allowance for credit losses | (135) | (26) | (277) | (67) | (68) | (74) |
Consumer Portfolio Segment [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Total loans | 40,686 | 30,323 | ||||
Allowance for credit losses | $ (1,108) | $ (945) | $ (565) | $ (632) | $ (530) | $ (417) |
Schedule of Changes in Allowanc
Schedule of Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | |||||
Beginning balance | $ 6,353 | $ 3,408 | $ 5,793 | $ 3,075 | |
Credit loss expense (income) | 545 | 1,311 | |||
Charge-offs | (383) | (226) | (846) | (299) | |
Recoveries | 130 | 70 | 169 | 84 | |
Ending balance | 6,645 | 4,243 | 6,645 | 4,243 | |
Provision for loan losses | 991 | 1,383 | |||
Additional allowance recognized due to adoption of Topic 326 | 218 | ||||
Balance January 31, 2023 | 6,011 | ||||
Recorded investment | |||||
Balance in allowance for loan losses | |||||
Recorded investment | 483,378 | ||||
Balance in allowance for loan losses | 5,793 | ||||
Residential Portfolio Segment [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Beginning balance | 742 | 575 | 768 | 482 | |
Credit loss expense (income) | 141 | 82 | |||
Charge-offs | |||||
Recoveries | |||||
Ending balance | 883 | 514 | 883 | 514 | |
Provision for loan losses | (61) | 32 | |||
Additional allowance recognized due to adoption of Topic 326 | 33 | ||||
Balance January 31, 2023 | 801 | ||||
Recorded investment | |||||
Balance in allowance for loan losses | |||||
Recorded investment | 50,354 | ||||
Balance in allowance for loan losses | 768 | ||||
Multi Family Real Estate [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Beginning balance | 1,077 | 549 | 748 | 535 | |
Credit loss expense (income) | (40) | (38) | |||
Charge-offs | |||||
Recoveries | |||||
Ending balance | 1,037 | 619 | 1,037 | 619 | |
Provision for loan losses | 70 | 84 | |||
Additional allowance recognized due to adoption of Topic 326 | 327 | ||||
Balance January 31, 2023 | 1,075 | ||||
Recorded investment | |||||
Balance in allowance for loan losses | |||||
Recorded investment | 69,555 | ||||
Balance in allowance for loan losses | 748 | ||||
Commercial Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Beginning balance | 3,030 | 1,607 | 3,262 | 1,535 | |
Credit loss expense (income) | (228) | (93) | |||
Charge-offs | |||||
Recoveries | |||||
Ending balance | 2,802 | 2,340 | 2,802 | 2,340 | |
Provision for loan losses | 733 | 805 | |||
Additional allowance recognized due to adoption of Topic 326 | (367) | ||||
Balance January 31, 2023 | 2,895 | ||||
Recorded investment | |||||
Balance in allowance for loan losses | |||||
Recorded investment | 310,695 | ||||
Balance in allowance for loan losses | 3,262 | ||||
Construction Loans [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Beginning balance | 533 | 79 | 173 | 32 | |
Credit loss expense (income) | 147 | 229 | |||
Charge-offs | |||||
Recoveries | |||||
Ending balance | 680 | 71 | 680 | 71 | |
Provision for loan losses | (8) | 39 | |||
Additional allowance recognized due to adoption of Topic 326 | 278 | ||||
Balance January 31, 2023 | 451 | ||||
Recorded investment | |||||
Balance in allowance for loan losses | |||||
Recorded investment | 17,286 | ||||
Balance in allowance for loan losses | 173 | ||||
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Beginning balance | 26 | 68 | 277 | 74 | |
Credit loss expense (income) | 38 | 75 | |||
Charge-offs | (16) | (90) | (42) | (90) | |
Recoveries | 87 | 56 | 87 | 56 | |
Ending balance | 135 | 67 | 135 | 67 | |
Provision for loan losses | 33 | 27 | |||
Additional allowance recognized due to adoption of Topic 326 | (262) | ||||
Balance January 31, 2023 | 15 | ||||
Recorded investment | |||||
Balance in allowance for loan losses | |||||
Recorded investment | 5,165 | ||||
Balance in allowance for loan losses | 277 | ||||
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Beginning balance | 945 | 530 | 565 | 417 | |
Credit loss expense (income) | 487 | 1,056 | |||
Charge-offs | (367) | (136) | (804) | (209) | |
Recoveries | 43 | 14 | 82 | 28 | |
Ending balance | $ 1,108 | 632 | 1,108 | 632 | |
Provision for loan losses | $ 224 | $ 396 | |||
Additional allowance recognized due to adoption of Topic 326 | 209 | ||||
Balance January 31, 2023 | $ 774 | ||||
Recorded investment | |||||
Balance in allowance for loan losses | |||||
Recorded investment | 30,323 | ||||
Balance in allowance for loan losses | $ 565 |
Schedule of Loans by Credit Qua
Schedule of Loans by Credit Quality (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | $ 526,260 | $ 483,378 |
Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 482,141 | |
Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 1,237 | |
Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 60,273 | 50,354 |
Residential Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 60,273 | 50,354 |
Residential Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Residential Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Residential Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Residential Portfolio Segment [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Multi Family Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 69,518 | 69,555 |
Multi Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 69,518 | 69,555 |
Multi Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Multi Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Multi Family Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Multi Family Real Estate [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 321,814 | 310,695 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 320,592 | 309,458 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 1,222 | 1,237 |
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Commercial Real Estate Portfolio Segment [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 27,019 | 17,286 |
Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 27,019 | 17,286 |
Construction Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Construction Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Construction Loans [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 6,950 | 5,165 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 6,950 | 5,165 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Commercial Portfolio Segment [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 40,686 | 30,323 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | 40,686 | 30,323 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Consumer Portfolio Segment [Member] | Loss [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross |
Schedule of Age Analysis of Pas
Schedule of Age Analysis of Past-due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 526,260 | 483,378 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 1,606 | 150 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 158 | 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 | 1,764 | 177 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 524,496 | 483,201 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 60,273 | 50,354 |
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 | ||
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 | ||
Residential Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 60,273 | 50,354 |
Multi Family Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 69,518 | 69,555 |
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 | 1,259 | |
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 | 1,259 | |
Multi Family Real Estate [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 68,259 | 69,555 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 321,814 | 310,695 |
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 | 321,814 | 310,695 |
Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 27,019 | 17,286 |
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 | 27,019 | 17,286 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 6,950 | 5,165 |
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 | 6,950 | 5,165 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | ||
Loans and Leases Receivable, Gross | 40,686 | 30,323 |
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 | 347 | 150 |
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 | 158 | 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 | 505 | 177 |
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 40,181 | $ 30,146 |
Schedule of Amortized Cost Basi
Schedule of Amortized Cost Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Subtotal loans | $ 526,260 | $ 483,378 |
Construction Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 6,406 | |
2022 | 15,136 | |
2021 | 2,324 | |
2020 | 1,509 | |
2019 | 1,644 | |
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 27,019 | 17,286 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 20,590 | |
2022 | 199,769 | |
2021 | 55,017 | |
2020 | 16,183 | |
2019 | 14,037 | |
Prior | 16,218 | |
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 321,814 | 310,695 |
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Current period Gross write-offs | ||
Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 7,350 | |
2022 | 26,567 | |
2021 | 9,853 | |
2020 | 6,686 | |
2019 | 4,097 | |
Prior | 3,286 | |
Revolving Loans (Amortized Cost Basis) | 2,434 | |
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 60,273 | 50,354 |
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Current period Gross write-offs | ||
Multi Family Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 998 | |
2022 | 29,396 | |
2021 | 29,570 | |
2020 | 6,185 | |
2019 | 2,090 | |
Prior | 1,279 | |
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 69,518 | 69,555 |
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Current period Gross write-offs | ||
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 4,044 | |
2022 | 1,401 | |
2021 | 1,363 | |
2020 | 85 | |
2019 | 57 | |
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 6,950 | 5,165 |
2023 | (16) | |
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | (26) | |
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Current period Gross write-offs | (42) | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 8,798 | |
2022 | 9,359 | |
2021 | 5,612 | |
2020 | 250 | |
2019 | 198 | |
Prior | ||
Revolving Loans (Amortized Cost Basis) | 16,469 | |
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 40,686 | 30,323 |
2023 | (30) | |
2022 | (505) | |
2021 | (266) | |
2020 | (3) | |
2019 | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Current period Gross write-offs | (804) | |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Subtotal loans | 482,141 | |
Pass [Member] | Construction Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 6,406 | |
2022 | 15,136 | |
2021 | 2,324 | |
2020 | 1,509 | |
2019 | 1,644 | |
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 27,019 | 17,286 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 20,590 | |
2022 | 199,769 | |
2021 | 55,017 | |
2020 | 16,183 | |
2019 | 12,815 | |
Prior | 16,218 | |
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 320,592 | 309,458 |
Pass [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 7,350 | |
2022 | 26,567 | |
2021 | 9,853 | |
2020 | 6,686 | |
2019 | 4,097 | |
Prior | 3,286 | |
Revolving Loans (Amortized Cost Basis) | 2,434 | |
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 60,273 | 50,354 |
Pass [Member] | Multi Family Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 998 | |
2022 | 29,396 | |
2021 | 29,570 | |
2020 | 6,185 | |
2019 | 2,090 | |
Prior | 1,279 | |
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 69,518 | 69,555 |
Pass [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 4,044 | |
2022 | 1,401 | |
2021 | 1,363 | |
2020 | 85 | |
2019 | 57 | |
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 6,950 | 5,165 |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 8,798 | |
2022 | 9,359 | |
2021 | 5,612 | |
2020 | 250 | |
2019 | 198 | |
Prior | ||
Revolving Loans (Amortized Cost Basis) | 16,469 | |
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 40,686 | 30,323 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Subtotal loans | ||
Special Mention [Member] | Construction Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Special Mention [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Special Mention [Member] | Multi Family Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Special Mention [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Special Mention [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Subtotal loans | 1,237 | |
Substandard [Member] | Construction Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | 1,222 | |
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | 1,222 | 1,237 |
Substandard [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Substandard [Member] | Multi Family Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Substandard [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Subtotal loans | ||
Doubtful [Member] | Construction Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Doubtful [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Doubtful [Member] | Multi Family Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Doubtful [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Doubtful [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Subtotal loans | ||
Loss [Member] | Construction Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Loss [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Loss [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Loss [Member] | Multi Family Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Loss [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans | ||
Loss [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | ||
2022 | ||
2021 | ||
2020 | ||
2019 | ||
Prior | ||
Revolving Loans (Amortized Cost Basis) | ||
Revolving Loans Converted to Term Loans (Amortized Cost Basis) | ||
Subtotal loans |
Schedule of Basic and Diluted L
Schedule of Basic and Diluted Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of common shares outstanding used to calculate basic and diluted earnings per common share | 7,250,219 | 6,007,484 | 7,226,953 | 5,455,406 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) | 6 Months Ended |
Jun. 30, 2023 USD ($) shares | |
Director [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares, issued for services | 66,479 |
Stock based compensation | $ | $ 274,000 |
Employees [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares, issued for services | 52,622 |
Stock based compensation | $ | $ 216,000 |
2018 Equity Incentive Plan [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock options, issued | 1,050,000 |
Stock options available for grant | 539,320 |
2018 Equity Incentive Plan [Member] | Minimum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock options, issued | 500,000 |
Schedule of Debt Securities A_2
Schedule of Debt Securities Available-for-sale Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale | $ 24,762 | $ 25,102 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale | 24,762 | 25,102 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale | 24,762 | 25,102 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale | ||
SBA Pool Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale | 759 | 817 |
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] | ||
Debt Securities, Available-for-Sale | ||
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] | ||
Debt Securities, Available-for-Sale | 759 | 817 |
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] | ||
Debt Securities, Available-for-Sale | ||
Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale | 124 | 130 |
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] | ||
Debt Securities, Available-for-Sale | ||
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] | ||
Debt Securities, Available-for-Sale | 124 | 130 |
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] | ||
Debt Securities, Available-for-Sale | ||
Taxable Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale | 12,011 | 11,620 |
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] | ||
Debt Securities, Available-for-Sale | ||
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] | ||
Debt Securities, Available-for-Sale | 12,011 | 11,620 |
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] | ||
Debt Securities, Available-for-Sale | ||
Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale | 11,868 | 12,535 |
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] | ||
Debt Securities, Available-for-Sale | ||
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] | ||
Debt Securities, Available-for-Sale | 11,868 | 12,535 |
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] | ||
Debt Securities, Available-for-Sale |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Platform Operator, Crypto-Asset [Line Items] | ||
Cash and cash equivalents | $ 78,373 | $ 71,836 |
Debt securities available for sale | 24,762 | 25,102 |
Debt securities held-to-maturity | 445 | 540 |
Loans | 518,829 | 477,218 |
Federal home loan bank stock | 717 | 600 |
Accrued interest receivable | 1,559 | 1,444 |
Deposit liabilities | 551,631 | 507,899 |
Federal home loan bank advances | 10,000 | 10,000 |
Off-balance sheet financial instruments | ||
Fair Value, Inputs, Level 1 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Cash and cash equivalents | 78,373 | 71,836 |
Fair Value, Inputs, Level 2 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Debt securities available for sale | 24,762 | 25,102 |
Debt securities held-to-maturity | 406 | 504 |
Fair Value, Inputs, Level 3 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Loans | 512,031 | 476,566 |
Federal home loan bank stock | 717 | 600 |
Accrued interest receivable | 1,559 | 1,444 |
Deposit liabilities | 556,017 | 512,357 |
Federal home loan bank advances | 9,456 | 9,450 |
Off-balance sheet financial instruments |
Schedule of Off-Balance Sheet R
Schedule of Off-Balance Sheet Risks of Financial Instruments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Off- Balance Sheet Financial Instruments | |
Commitments to extend credit | $ 32,184 |
Unused lines of credit | 56,272 |
Standby letters of credit | $ 4,313 |
Schedule of Capital Amounts, Ra
Schedule of Capital Amounts, Ratios and Regulatory Thresholds (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Tier I Capital to Total Assets, Amount | $ 69,234 | $ 66,291 |
Tier I Capital to Total Assets, Ratio | 0.1120 | 0.1129 |
Tier I Capital to Total Assets To Be Well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework), Amount | $ 55,616 | $ 52,865 |
Tier I Capital to Total Assets To Be Well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework), Ratio | 0.0900 | 0.0900 |
Series B Preferred Stock (Detai
Series B Preferred Stock (Details Narrative) - $ / shares | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 27, 2023 | Dec. 31, 2022 | |
Series B Preferred Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Preferred Stock, Liquidation Preference Per Share | $ 25,000 | ||
Preferred stock shares issued | 1,360 | 1,360 | |
Preferred stock conversion | 11,113,889 | ||
Series B1 Preferred Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Preferred stock shares issued | 760 | ||
Preferred stock conversion price | $ 2.50 | ||
Series B2 Preferred Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Preferred stock shares issued | 260 | ||
Preferred stock conversion price | $ 4 | ||
Series B3 Preferred Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Preferred stock shares issued | 500 | ||
Preferred stock conversion price | $ 4.50 | ||
Common Stock [Member] | Series B Preferred Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Conversion of Stock, Shares Issued | 11,113,889 |
Contingencies (Details Narrativ
Contingencies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Litigation settlement expense | $ 375 | $ 375 |