Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 19, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-41764 | ||
Entity Registrant Name | BV FINANCIAL, INC. | ||
Entity Central Index Key | 0001302387 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 14-1920944 | ||
Entity Address, Address Line One | 7114 North Point Road | ||
Entity Address, City or Town | Baltimore | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 21219 | ||
City Area Code | 410 | ||
Local Phone Number | 477-5000 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NASDAQ | ||
Trading Symbol | BVFL | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 133,741,710 | ||
Entity Common Stock, Shares Outstanding | 11,375,803 | ||
Documents Incorporated By Reference | DOCUMENTS INCORPORATED BY REFERENCE None. Auditor Firm Id: 686 Auditor Name: Forvis, LLP Auditor Location: Tysons, Virginia, United States | ||
Auditor Name | FORVIS, LLP | ||
Auditor Location | Tysons, Virginia | ||
Auditor Firm ID | 686 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash | $ 9,260 | $ 12,704 |
Interest-bearing deposits in other banks | 64,482 | 55,948 |
Cash and cash equivalents | 73,742 | 68,652 |
Equity Investment | 256 | 221 |
Securities available for sale | 34,781 | 33,034 |
Securities held to maturity (fair value of $9,206 and $9,660, ACL of $6 and $0) | 10,209 | 10,461 |
Loans held for maturity | 704,802 | 662,944 |
Allowance for credit losses | (8,554) | (3,813) |
Net loans | 696,248 | 659,131 |
Foreclosed real estate | 170 | 1,987 |
Premises and equipment, net | 14,250 | 15,176 |
Federal Home Loan Bank of Atlanta stock, at cost | 626 | 977 |
Investment in life insurance | 19,657 | 19,983 |
Accrued interest receivable | 3,279 | 2,952 |
Goodwill | 14,420 | 14,420 |
Intangible assets, net | 1,012 | 1,195 |
Deferred tax assets, net | 8,969 | 9,113 |
Other assets | 7,635 | 7,661 |
Total assets | 885,254 | 844,963 |
Liabilities | ||
Noninterest-bearing deposits | 142,030 | 167,202 |
Interest-bearing deposits | 492,090 | 517,416 |
Total deposits | 634,120 | 684,618 |
FHLB borrowings | 0 | 12,000 |
Subordinated Debentures | 37,251 | 37,039 |
Other liabilities | 14,818 | 13,555 |
Total liabilities | 686,189 | 747,212 |
Stockholders' equity | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 45,000,000 shares authorized at December 31, 2023 and 14,000,000 authorized at December 31, 2022; 11,375,803 shares issued and outstanding as of December 31, 2023; 7,958,904 shares issued outstanding as of December 31, 2022 | 114 | 74 |
Paid-in capital | 110,465 | 15,406 |
Unearned common stock held by employee stock ownership plan | (7,328) | |
Retained earnings | 97,772 | 84,612 |
Accumulated other comprehensive loss | (1,958) | (2,341) |
Total stockholders' equity | 199,065 | 97,751 |
Total liabilities and stockholders' equity | $ 885,254 | $ 844,963 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 9,206 | $ 9,660 |
Securities held to maturity, ACL | $ 6 | $ 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 14,000,000 | 45,000,000 |
Common stock, shares issued | 11,375,803 | 7,958,904 |
Common stock, shares outstanding | 11,375,803 | 7,958,904 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest Income | ||
Loans, including fees | $ 37,742 | $ 31,259 |
Investment securities available for sale | 1,156 | 610 |
Investment securities held to maturity | 367 | 245 |
Other interest income | 4,154 | 1,236 |
Total interest income | 43,419 | 33,350 |
Interest Expense | ||
Interest on deposits | 5,614 | 1,357 |
Interest on FHLB borrowings | 1,411 | 11 |
Interest on subordinated debentures | 2,165 | 2,062 |
Total interest expense | 9,190 | 3,430 |
Net interest income | 34,229 | 29,920 |
(Recovery of) provision for credit losses | (45) | 1,038 |
Net interest income after provision for credit losses | 34,274 | 28,882 |
Noninterest Income | ||
Income from investment in life insurance | 641 | 1,492 |
Gain on sale of loans | 1 | |
Gain on foreclosed real estate | 709 | |
Gain on sale of fixed assets | 188 | 246 |
Other income | 1,082 | 2,711 |
Total noninterest income | 3,757 | 5,665 |
Noninterest Expense | ||
Compensation and related benefits | 12,257 | 10,130 |
Occupancy | 1,604 | 1,661 |
Data processing | 1,373 | 1,419 |
Advertising | 43 | 23 |
Professional fees | 886 | 607 |
Equipment | 425 | 436 |
Foreclosed real estate and holding costs | 186 | 965 |
Amortization of intangible assets | 183 | 183 |
FDIC insurance premiums | 336 | 219 |
Other | 2,116 | 4,351 |
Total noninterest expense | 19,409 | 19,994 |
Net income before tax | 18,622 | 14,553 |
Income tax expense | 4,915 | 4,029 |
Net income | $ 13,707 | $ 10,524 |
Basic earnings per share | $ 1.47 | $ 1.32 |
Diluted earnings per share | $ 1.47 | $ 1.32 |
Deposits | ||
Noninterest Income | ||
Revenue | $ 413 | $ 460 |
Debit Cards | ||
Noninterest Income | ||
Revenue | $ 724 | $ 755 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 13,707 | $ 10,524 |
Other comprehensive income (loss) | ||
Unrealized gain (loss) on securities available for sale | 528 | (3,096) |
Income tax relating to securities available for sale | (145) | 851 |
Other comprehensive income (loss) | 383 | (2,245) |
Total comprehensive income | $ 14,090 | $ 8,279 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment | Common Stock | Paid-in Capital | Unearned common stock held by ESOP | Retained Earnings | Retained Earnings Cumulative Effect Period of Adoption Adjustment | Accumulated other comprehensive loss |
Beginning balance at Dec. 31, 2021 | $ 83,446 | $ 71 | $ 9,383 | $ 74,088 | $ (96) | |||
Net income | 10,524 | 10,524 | ||||||
Shares issued to M.H.C. for NASB merger | 5,460 | 2 | 5,458 | |||||
Other comprehensive income (loss), net of tax | (2,245) | (2,245) | ||||||
Stock compensation | 566 | 1 | 565 | |||||
Ending balance at Dec. 31, 2022 | 97,751 | 74 | 15,406 | 84,612 | (2,341) | |||
Net income | 13,707 | 13,707 | ||||||
Other comprehensive income (loss), net of tax | 383 | 383 | ||||||
Stock compensation | 357 | 357 | ||||||
Proceeds from issuance of common stock, net of offering costs | 94,742 | 40 | 94,702 | |||||
Purchase of unearned common stock held by ESOP plan | (7,839) | $ (7,839) | ||||||
ESOP shares committed to be released | $ 511 | 511 | ||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | |||||||
Ending balance at Dec. 31, 2023 | $ 199,065 | $ (547) | $ 114 | $ 110,465 | $ (7,328) | $ 97,772 | $ (547) | $ (1,958) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Other comprehensive income (loss), tax | $ (145) | $ 851 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 13,707 | $ 10,524 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Net accretion of discounts and premiums | (117) | (681) |
(Recovery of) provision for credit losses | (45) | 1,038 |
Gain on sale of foreclosed real estate | (709) | 0 |
Gain on bargain purchase | (1,340) | |
Amortization of deferred loan fees/costs | (475) | (1,351) |
Amortization of intangible assets | 183 | 183 |
Amortization of debt issuance costs | 156 | 155 |
Depreciation of premises and equipment | 869 | 860 |
Gain on sale of assets | (188) | |
Deferred tax expense | 207 | 308 |
Increase in cash surrender value of life insurance | (405) | (398) |
Stock-based compensation expense | 357 | 258 |
ESOP compensation expense | 511 | |
Decrease in accrued interest and other assets | (299) | 852 |
Increase (decrease) in other liabilities | 1,442 | (694) |
Net cash provided by operating activities | 15,194 | 9,714 |
Cash flows from investing activities | ||
Proceeds from maturities and principal payments of investment securities available for sale | 5,456 | 7,860 |
Purchases of investment securities available for sale | (6,918) | (5,083) |
Proceeds from maturities and principal payments of investment securities held to maturity | 488 | 1,790 |
Purchases of investment securities held to maturity | (6,919) | |
Net increase in loans | (38,296) | (40,209) |
Purchase of premises and equipment | (155) | (502) |
Proceeds from sale of premises and equipment | 644 | 939 |
Proceeds from life insurance benefits | 731 | 6,415 |
Purchase of participation foreclosed real estate | (57) | |
Proceeds from sale of foreclosed real estate | 2,583 | |
Proceeds from sale of Federal Home Loan Bank Stock | 1,790 | 510 |
Purchase of Federal Home Loan Bank of Atlanta stock | (1,439) | (1,083) |
Net cash received in acquisition | 8,521 | |
Net cash used in investing activities | (35,173) | (27,761) |
Cash flows provided by financing activities | ||
Increase (decrease) in official checks | (410) | 648 |
Net (decrease) in deposits | (50,166) | (35,662) |
Increase (decrease) in advance payments by borrowers for taxes and insurance | 231 | (1,478) |
Advances from the Federal Home Loan Bank of Atlanta | 25,500 | 24,000 |
Repayments of advances from Federal Home Loan Bank of Atlanta | (37,500) | (12,000) |
Purchase of unearned common stock held by employee stock ownreship plan | (7,328) | |
Proceeds from issuance of common stock | 97,990 | 0 |
Offering costs | (3,248) | |
Stock options exercised | 1 | |
Net cash provided by (used in) financing activities | 25,069 | (24,491) |
Net increase (decrease) in cash and cash equivalents | 5,090 | (42,538) |
Cash and cash equivalents at beginning of period | 68,652 | 111,190 |
Cash and cash equivalents at end of period | 73,742 | 68,652 |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | 9,190 | 3,431 |
Income taxes paid | 4,915 | $ 4,029 |
ASC 326 | ||
Supplementary noncash transactions | ||
Impact of ASC 326 adoption | $ 547 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 13,707 | $ 10,524 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary Of Significant Accounting Policies | Note 1 – Summary Of Sign ificant Accounting Policies Business BV Financial, Inc. (“BV Financial,” the “Company” or “we”) was organized as a federal corporation and savings and loan holding company in January 2005 as part of the mutual holding company reorganization of Bay-Vanguard Federal Savings Bank. In February 2019, the Company became a Maryland-chartered corporation and a bank holding company. Prior to consummation of its mutual to stock conversion in July 2023, BayVanguard, M.H.C., Inc. (the “MHC”) was the Maryland-chartered mutual holding company of the Company. The MHC’s only business was the ownership of 86.3 % of the outstanding common stock of the Company. On January 19, 2023, the MHC adopted a Plan of Conversion and Reorganization (the “Plan”) pursuant to which the MHC undertook a “second-step” conversion and BayVanguard Bank (the “Bank”), the Company’s wholly owned subsidiary, reorganized from the two-tier mutual holding company structure to the fully-public stock holding company structure (the “Conversion”). The Conversion was consummated on July 31, 2023 on which date the MHC ceased to exist. As part of the Conversion, the Company sold 9,798,980 shares of its common stock at a price of $ 10.00 per share. Each outstanding share of Company common stock owned by the existing public stockholders of the Company were converted into new shares of Company common stock based on an exchange ratio of 1.5309 -to-1. The Company had 11,375,803 shares of Company common stock outstanding as a result of the stock offering and Conversion. The Company is a registered bank holding company subject to comprehensive regulation and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Company conducts its operations primarily through its wholly owned subsidiary, the Bank, a Maryland-chartered commercial bank. BayVanguard Bank is headquartered in Baltimore, Maryland and is a community-oriented financial institution offering traditional financial services to its local communities. The Bank is engaged primarily in the business of attracting deposits from the general public and using such funds to originate one-to-four family real estate, construction, multi-family, commercial real estate, farm, marine loans, commercial and consumer loans. The Bank's deposits are insured up to the applicable legal limits by the Federal Deposit Insurance Corporation's Deposit Insurance Fund. BayVanguard Bank is a member of the Federal Home Loan Bank System. Principles of Consolidation The consolidated financial statements include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated in consolidation. Basis of Financial Statement Presentation and Significant Estimates The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for credit losses, goodwill and intangible asset impairment, and the valuation of deferred tax assets. Significant Group Concentrations of Credit Risk Most of the Company's activities are with customers located within the Baltimore metropolitan area and the Eastern Shore of Maryland. The Company does not have any significant concentrations to any one industry or customer. Note 1 – Summary Of Significant Accounting Policies (Continued) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, cash items in the process of clearing, and interest-bearing deposits with banks with original maturities of less than 90 days. Securities The Company classifies investment securities as held to maturity ("HTM") or available for sale ("AFS"). Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and are reported at amortized cost (including amortization of premiums or accretion of discounts). Net unrealized gains and losses for debt securities classified as available for sale are recognized as increases or decreases in other comprehensive income or loss, net of taxes, and excluded from the determination of net income. Equity securities are reported at fair value with unrealized gains and losses included in net gains/losses in noninterest income. Realized gains and losses on sales of securities are determined using the specific identification method and are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Premiums and discounts on callable debt securities are amortized through the earliest call date. When the fair value of an AFS debt security has declined below its amortized cost basis, the Company is required to assess whether the decline is from a credit loss or other factor. For securities that are not guaranteed by the federal government, an analysis is performed on the individual security using the latest available information to determine if the decline in fair value is attributable to a credit loss. If such determination is made, the Company would record an allowance for credit loss for the debt instrument. As of December 31, 2023, we have recognized no credit losses on AFS securities. For HTM debt securities, an allowance will be recognized when lifetime credit losses are expected, in an amount that reflects the expected contractual credit losses, even when the risk of such loss is remote. Any security, either explicitly or implicitly guaranteed by the U.S. Government is excluded from this analysis. This includes U.S. Treasury securities, securities issued by agencies of the U.S. Government and mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac. The allowance for credit losses ("ACL") for HTM securities is computed using bond global default rates tracked by S&P with a loss given default of 45 %. Accrued interest receivable on the HTM debt securities excluded from this analysis totaled $ 42,000 at December 31, 2023. Federal Home Loan Bank Stock Federal law requires a member institution of the Federal Home Loan Bank System to hold stock of its district Federal Home Loan Bank (the “FHLB") in an amount determined by both asset size and borrowings from the FHLB. Purchases and sales of stock are made directly with the FHLB at par value. The Bank held approximately $ 626,000 and $ 976,600 of FHLB restricted stock at December 31, 2023 and December 31, 2022, respectively. The restricted stock is carried at cost. Management evaluates whether this investment is impaired based on their assessment of the ultimate recoverability of the investment rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of the investment is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Note 1 – Summary Of Significant Accounting Policies (Continued) Loans Receivable Loans receivable are stated at unpaid principal balances, adjusted for premiums and discounts on loans purchased, the undisbursed portion of loans in process, net deferred loan origination fees and costs, fair value adjustments on loans acquired in a merger, and the allowance for credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment to the yield of the related loans. The Company is amortizing these amounts over the contractual life of the loan using the interest method. For purchased loans, the related premium or discount is recognized over the contractual life of the purchased loan and is included as part of interest income. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on non-accrual status, unpaid interest credited to income is reversed. Interest received on non-accrual loans generally is either applied against principal or reported as interest income, according to management's judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest payments on impaired loans are recorded in the same manner as interest payments on nonaccrual loans. All of the loans acquired in connection with business combinations on the Company's balance sheet were acquired prior to the adoption of ASC 326 on January 1, 2023. The accounting for these loans is described below. Loans acquired in connection with business combinations are recorded at fair value with no carryover of any allowance for credit losses. Fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. These purchase credit impaired (“PCI”) loans are accounted for under FASB’s Accounting Standards Codification (“ASC 310-30”, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The non-accretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases in expected cash flows will require the Company to evaluate the need for an addition to the allowance for credit losses. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the non-accretable discount, which will then be reclassified as accretable discount to be recognized into interest income over the remaining life of the loan. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20, Receivables - Nonrefundable Fees and Other Costs. These loans are initially recorded at fair value, and include premiums and discounts as acquisition accounting adjustments. These purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. An allowance for credit losses is recorded for any credit deterioration in these loans subsequent to acquisition. On January 1, 2023, the Company adopted provisions of ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326)", which eliminated accounting guidance for troubled debt restructurings ("TDRs") by creditors and expanded disclosures about modifications. Prior to the effective adoption date, the Company considered loans to be TDRs if their terms were restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provided a payment concession to a borrower experiencing financial difficulty. Loans could be removed from a TDR category if the borrower no longer experienced financial difficulty, a re-underwriting event took place, and the revised loan terms of the subsequent restructuring agreement were considered to be consistent with terms that could be obtained in the market for loans with comparable credit risk. Subsequent to the effective adoption date of ASU 2022-02, the Company continues to offer modifications to certain borrowers experiencing financial difficulty, mainly in the form of interest rate concessions or term extensions, without classifying and accounting for them as TDRs. Note 1 – Summary Of Significant Accounting Policies (Continued) Allowance for Credit Losses - Loans The Allowance for Credit Losses (the "ACL") is an estimate of the expected credit losses for loans held for investment and for off-balance sheet exposures. ASC 326, " Financial Instruments-Credit Losses ," requires an immediate recognition of the credit loss expected to occur over the lifetime of a financial asset whether originated or purchased. Charge-offs are recorded to the ACL when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the ACL. Management believes the ACL is maintained in accordance with U.S. generally accepted accounting principles ("GAAP") and is in compliance with appropriate regulatory guidelines. The ACL includes quantitative estimates of losses for collectively and individually evaluated loans. The quantitative estimate for collectively evaluated loans (other than investor commercial real estate loans) is determined using the average charge-off method that utilizes historical losses for all Maryland banks with assets less than $ 1 billion beginning in March 2000. The loss history is updated through the most recent quarter-end prior to the reporting period. The investor commercial real estate portfolio utilizes the national loss history for banks with assets less than $ 1 billion over the same time period. Investor CRE loans are made nationwide, therefore, management deems it appropriate to utilize national loss rates when evaluating this portfolio. Adjustments are made to the historical loss factors under each scenario for economic conditions, portfolio concentrations, collateral values, the level and trend of delinquent and problem loans and internal changes in staffing, loan policies and monitoring of the portfolio. Loans are selected for individual evaluation primarily based on their payment status and whether the loan has been placed on non-accrual. Loans on non-accrual status include all loans greater than 90 days delinquent and other loans with weaknesses sufficient for management to place these loans on non-accrual status. The ACL is measured on a collective basis when similar risk factors exist as determined by internal loan coding and assignment to a portfolio segment. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the ACL on loans. The model's calculation also uses an adjustment for a 12-month forecast period utilizing the most recent 12-month economic forecast from the Board of Governors of the Federal Reserve System for national gross domestic product ("GDP"). The model compares the average history of loss rates described above to the forecasted GDP to determine the value of the forward looking adjustment. The establishment of the allowance for credit losses is significantly affected by management's judgment and by economic and other uncertainties, and there is a likelihood that different amounts would be reported under different conditions or assumptions. The Federal Deposit Insurance Corporation (the "FDIC") and the Maryland Office of the Commissioner of Financial Regulation, as an integral part of their examination process, periodically review the allowance for credit losses for reasonableness and, as a result of such reviews, we may be required to increase our ACL or recognize loan charge-offs. The calculation of ACL excludes accrued interest receivable balances because these balances are reversed in a timely manner against previously recognized interest income when a loan is placed on non-accrual status. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposure The Company's off-balance sheet credit instruments primarily consist of unfunded commitments on existing loans. In the ordinary course of business, the Company has entered into commitments to extend credit. Such financial instruments are recorded on the balance sheet when they are funded. The Company records a reserve for unfunded commitments on off-balance sheet credit exposures through a charge to the provision for credit loss expense. The reserve is estimated by loan segment at each measurement date under the expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in other liabilities on the Company's consolidated balance sheets. Note 1 – Summary Of Significant Accounting Policies (Continued) Mortgage Loans Held for sale Mortgages originated for sale are carried at the lower of aggregate cost or fair value of each outstanding loan. Sales of loans are recorded when the proceeds are received. Any gain or loss is recorded in noninterest income. There were no mortgage loans held for sale as of December 31, 2023 and 2022. The Company occasionally sells its mortgage loans on a best effort basis to third-party investors on a servicing released basis. Upon sale and delivery, loans are legally isolated from the Company and the Company has no ability to restrict or constrain the ability of third-party investors to pledge or exchange the mortgage loans. The Company does not have the entitlement or ability to repurchase the mortgage loans or unilaterally cause third party investors to put the mortgage loans back to the Company. Foreclosed Real Estate Foreclosed real estate and repossessed assets are composed of property acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure. If the fair value of the asset, net of estimated selling costs, is less than the related loan balance at the time of acquisition, a charge against the allowance for credit losses is recorded. After foreclosure, valuations are periodically performed by management and the assets are carried at the lower of cost or fair value less estimated costs to sell. Revenues and expenses from operations and changes in the valuation allowance are included in noninterest income and expenses. Premises and Equipment Land is stated at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed based on the straight-line method over the estimated useful lives of the respective assets. Expenditures for improvements are capitalized while costs for maintenance and repairs are expensed as incurred. Leases The Company determines if an arrangement is a lease at inception. All of the Company’s leases are currently classified as operating leases and are included in other assets and other liabilities on the Company’s Consolidated Balance Sheets. Periodic operating lease costs are recorded in occupancy expenses of premises on the Company's Consolidated Statements of Income. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the expected future lease payments over the remaining lease term. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating ROU assets are adjusted for any lease payments made at or before the lease commencement date, initial direct costs, any lease incentives received and, for acquired leases, any favorable or unfavorable fair value adjustments. The present value of the lease liability may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options provided in the lease terms. Lease expense is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately. Note 1 – Summary Of Significant Accounting Policies (Continued) Investment in Life Insurance Investment in life insurance is reflected at the net cash surrender value to the Company. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill is evaluated for impairment at least annually. Any impairment of goodwill would be recorded against income in the period of impairment. Intangible Assets Intangible assets, consisting of core deposit intangibles, represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged on its own or in combination with a related contract, asset or liability. Core deposit intangibles are amortized on an accelerated basis over an estimated useful life. Core deposit intangibles are evaluated annually for impairment. Any impairment of intangible assets would be recorded against income in the period of impairment. Deferred Income Taxes Deferred income taxes are recognized for temporary differences between the financial reporting basis and income tax basis of assets and liabilities based on enacted tax rates expected to be in effect when such amounts are realized or settled. Deferred tax assets are recognized only to the extent that it is more likely than not that such amounts will be realized based on consideration of available evidence. Statements of Cash Flows Cash and cash equivalents in the statements of cash flows include cash, federal funds sold and interest bearing deposits in other banks. Federal funds are generally purchased and sold for one-day periods. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit. Such financial instruments are recorded in the balance sheet when they are funded. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the appropriate period. Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding as adjusted for the dilutive effect of stock options based on the treasury stock method. ESOP shares are considered outstanding for basic and diluted EPS when the shares are committed to be released. As of December 31, 2023 and December 31, 2022, the Company had 55,648 and 55,648 shares, resp ectively of unexercised stock options. Options with an exercise price greater than the average market price of the common shares are excluded from the calculation as their effect would be anti-dilutive. As of December 31, 2023 and 2022, the Company had 38,295 and 21,959 dilutive shares, respectively. The Company had no anti-dilutive shares at December 31, 2023 and 2022. Note 1 – Summary Of Significant Accounting Policies (Continued) Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period. As a result of the second step conversion, previously outstanding shares have been adjusted to reflect the 1.5309 exchange ratio. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may have been issued by the Company related to outstanding unvested restricted stock unit and performance stock unit awards were determined using the treasury stock method and included in the calculation of dilutive common stock equivalents. The Company has not granted any stock options since 2017. As of the years ended December 31, 2023, and 2022, there were no unvested restricted stock or performance stock unit awards which were excluded from the calculation as their effect would be anti-dilutive. Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: December 31, 2023 December 31, 2022 Basic Diluted Basic Diluted (dollars in thousands, except per share data) Net income $ 13,707 $ 13,707 $ 10,524 $ 10,524 Weighted average common shares outstanding 9,303 9,303 7,950 7,950 Dilutive securities stock options — 38 — 22 Adjusted weighted average shares outstanding 9,303 9,341 7,950 7,972 Earnings per share amount $ 1.47 $ 1.47 $ 1.32 $ 1.32 Stock Based Compensation The Company accounts for stock-based compensation under the fair value method of accounting. For stock options, the Company uses a Black-Scholes valuation model to measure stock-based compensation expense at the date of grant. Compensation expense related to stock-based awards is recognized over the period during which an individual is required to provide service in exchange for such award. Revenue Recognition Management is required by accounting pronouncements governing the recognition of revenue which require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers”. Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Note 1 – Summary Of Significant Accounting Policies (Continued) Recent Accounting Pronouncements On January 1, 2023 , the Company adopted Accounting Standards Updates (ASU) 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASC 326 requires entities to estimate an allowance for credit losses (ACL) on certain types of financial instruments measured at amortized cost using a current expected credit losses (CECL) methodology, replacing the previously-required incurred loss methodology. It also applies to unfunded commitments to extend credit, including loan commitments, standby letters of credit, and other similar instruments. The impairment model for held-to-maturity and available-for-sale debt securities was modified and ASC 326 also provided for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The amendments of ASC 326, upon adoption, were applied on a modified retrospective basis, by recording an increase in the reported balance of loans and the allowance for credit losses on loans, an increase in the liability for credit losses on commitments to extend credit and reducing total equity of both the Company and the Bank. As a result of adopting ASC 326, the Company recorded a decrease to retained earnings, net of taxes, of $ 547,000 . The addition to PCD loans and ACL upon adoption of ASC 326 was $ 3.8 million. ASU Update 2022-02 On January 1, 2023 , the Company adopted ASU 2022-02 – Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 eliminated the troubled debt restructurings ("TDRs") recognition and measurement guidance and, instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. In addition, ASU Update 2022-02 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases. The Company adopted ASU 2022-02 using a modified retrospective transition method for TDRs. The impact of adoption was immaterial . The disclosure amendments in the ASU 2022-02 were applied prospectively. The following table shows the impact of the Company's adoption of ASC 326 on loans, the allowance for credit losses, and the Company's reserve for unfunded commitments. January 1, 2023 As Reported Under Pre-ASC 326 (dollars in thousands) ASC 326 Adoption Change Total loans, net of deferred fees and costs $ 666,722 $ 662,944 $ 3,778 Allowance for credit losses-loans ( 8,045 ) ( 3,813 ) ( 4,232 ) Total loans, net 658,677 659,131 ( 454 ) Liabilities: Reserve for Unfunded Commitments $ 289 $ 5 $ 284 Pending Accounting Pronouncements applicable to the Company In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-7 Segment Reporting (Topic 280). The amendments in this Update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this Update: 1. Require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”). 2. Require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss. 3. Require that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. 4. Clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources , a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements. In other words, in addition to the measure that is most consistent with the measurement principles under generally accepted accounting principles (GAAP), a public entity is not precluded from reporting additional measures of a segment’s profit or loss that |
Merger
Merger | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Merger | Note 2 – Merger On January 1, 2022, North Arundel Savings Bank (“NASB”) was merged into BayVanguard Bank. At Closing, NASB had approximately $ 34.2 million in loans and $ 40.8 million in deposits. As part of this transaction, BV Financial, Inc. issued 251,004 shares to the M.H.C. The assets acquired and liabilities assumed were accounted for under the acquisition method of accounting. The assets and liabilities were recorded at their fair values as of January 1, 2022 based on management’s best estimate using the information available as of the merger date. The application of the acquisition method of accounting resulted in the recognition of bargain purchase gain of $ 1.3 million and a core deposit intangible of $ 85,000 . In 2022, the Company incurred merger related expenses of $ 1.6 million that were recorded in the Consolidated Statements of Income. These costs were expensed as incurred. Note 2 – Merger (Continued) A summary of the NASB transaction during the period ended December 31, 2022 follows: ACQUISITION OF NORTH ARUNDEL SAVINGS BANK (NASB) As recorded by Fair value As recorded at NASB adjustments acquisition Fair Value of Equity Acquired $ 5,460 Cash and Cash Equivalents $ 8,521 $ — 8,521 Securities held to maturity 772 12 (a) 784 Securities available for sale 1,500 ( 36 ) (a) 1,464 Loans Receivable 34,258 ( 85 ) (b) 34,173 Allowance for Loan Loss ( 236 ) 236 (c) — Premises and equipment 258 1,017 (d) 1,275 Core deposit intangible — 85 (e) 85 Deferred Taxes 49 198 (f) 247 Other Assets 1,259 — 1,259 Total Assets Acquired 46,381 1,427 47,808 Liabilities assumed Deposits 40,321 439 (g) 40,760 Advance payments by borrowers for taxes and insurance 121 — 121 Accrued Expenses and other liabilities 127 — 127 Total liabilities assumed $ 40,569 $ 439 $ 41,008 Net assets acquired 6,800 Bargain purchase gain recorded at merger $ 1,340 (a) Represents the fair value adjustments to the investment securities at the acquisition date. (b) Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment which will be amortized over the remaining life of the loans. (c) Represents the elimination of the NASB allowance for loan loss. (d) Represents the fair value adjustments to reflect fair value of land and buildings which will be amortized on a straight line-basis over the estimated useful lives of the assets. (e) Represents the intangible asset recorded to reflect the fair value of core deposits. The core deposit asset was recorded as an identified intangible asset and will be amortized on a straight-line basis over ten years. (f) Represents the deferred tax asset resulting from the fair value adjustments related to the acquired assets, liabilities assumed, identified intangibles recorded and for the net operating loss carry forward for NASB. (g) Represents fair value adjustments on time deposits, which will be treated as a reduction in interest expense over the remaining life of the time deposits. The fair value of loans acquired from North Arundel Savings Bank was estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. There was no carryover of North Arundel’s allowance for loan losses associated with the loans that were acquired. The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years utilizing the straight- line method. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Accordingly, the Company recognizes amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair value. Note 2 – Merger (Continued) There were no PCI loans acquired in this transaction. The following table details the acquired loans as of January 1, 2022: Contractually required principal at acquisition $ 34,258 Contractual cash flows not expected to be collected (credit mark) ( 394 ) Expected cash flows at acquisition 33,863 Interest component of expected cash flows (accretable premium) 309 Fair value of acquired loans $ 34,173 The NASB merger was a mutual transaction and no consideration was given. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3 – Securities Securities available for sale at December 31, 2023 and December 31, 2022 consisted of the following: December 31, 2023 (dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available for sale Agencies $ 4,728 $ — $ 5 $ 4,723 Corporate securities 1,722 — 304 1,418 Mortgage-backed securities 31,032 5 2,397 28,640 Total $ 37,482 $ 5 $ 2,706 $ 34,781 December 31, 2022 (dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available for sale Corporate securities $ 2,218 $ — $ 286 $ 1,932 Mortgage-backed securities 34,045 — 2,943 31,102 Total $ 36,263 $ — $ 3,229 $ 33,034 The Company has pledged securities with an amortized cost of $ 41.4 million and a fair value of $ 38.6 million at December 31, 2023 to secure deposits from municipalities. At December 31, 2022, the Company pledged securities with an amortized cost of $ 40.2 million and a fair value of $ 36.9 million to secure deposits from municipalities. Securities held to maturity at December 31, 2023 and December 31, 2022 consisted of the following: December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Held to maturity Corporate securities (1) $ 3,194 $ — $ 570 $ 2,624 Agencies 4,003 — 22 3,981 Mortgage-backed securities 3,012 3 414 2,601 Total $ 10,209 $ 3 $ 1,006 $ 9,206 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Held to maturity Corporate securities $ 3,200 $ — $ 408 $ 2,792 Agencies 4,009 — 25 3,984 Mortgage-backed securities 3,252 3 371 2,884 Total $ 10,461 $ 3 $ 804 $ 9,660 (1) Amount is net of CECL credit reserve of $ 6,000 at December 31, 2023. Note 3 – Securities (Continued) The amortized cost and fair value of securities as of December 31, 2023 and December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without prepayment penalties. December 31, 2023 Available for sale Held to maturity Amortized Fair Amortized Fair (dollars in thousands) cost value cost value Maturing Due under one year $ 8,156 $ 8,053 $ 4,003 $ 3,981 Due after one year through five years 4,605 4,478 25 24 Due after five years through ten years 7,788 7,350 3,745 3,138 Due after ten years 16,933 14,900 2,436 2,063 Total $ 37,482 $ 34,781 $ 10,209 $ 9,206 December 31, 2022 Available for sale Held to maturity Amortized Fair Amortized Fair (dollars in thousands) cost value cost value Maturing Due under one year $ 509 $ 502 $ — $ — Due after one year through five years 9,986 9,477 4,042 4,015 Due after five years through ten years 9,160 8,631 3,840 3,383 Due after ten years 16,608 14,424 2,579 2,262 Total $ 36,263 $ 33,034 $ 10,461 $ 9,660 All mortgage-backed securities are guaranteed by Freddie Mac, Fannie Mae or Ginnie Mae. Note 3 – Securities (Continued) Investment securities with unrealized losses for continuous periods of less than 12 months and 12 months or longer are as follows: Less than 12 months Over 12 months Total Unrealized Fair Unrealized Fair Unrealized Fair December 31, 2023 losses value losses value losses value (dollars in thousands) Available for sale Corporate securities $ 83 $ 667 $ 221 $ 751 $ 304 $ 1,418 Agency securities 5 4,723 — — 5 4,723 Mortgage-backed securities 1 478 2,396 26,152 2,397 26,630 Total $ 89 $ 5,868 $ 2,617 $ 26,903 $ 2,706 $ 32,771 Held to maturity Corporate securities $ — $ — $ 570 $ 2,624 $ 570 $ 2,624 Agency securities — — 22 3,981 22 3,981 Mortgage-backed securities — 14 414 2,482 414 2,496 Total $ — $ 14 $ 1,006 $ 9,087 $ 1,006 $ 9,101 Less than 12 months Over 12 months Total Unrealized Fair Unrealized Fair Unrealized Fair December 31, 2022 losses value losses value losses value (dollars in thousands) Available for sale Corporate securities $ 286 $ 1,182 $ — $ — $ 286 $ 1,182 Mortgage-backed securities 535 10,595 2,408 20,400 2,943 30,995 Total $ 821 $ 11,777 $ 2,408 $ 20,400 $ 3,229 $ 32,177 Held to maturity Corporate securities $ 244 $ 1,706 $ 164 $ 1,086 $ 408 $ 2,792 Agency securities 25 3,984 — — 25 3,984 Mortgage-backed securities 371 2,811 — — 371 2,811 Total $ 640 $ 8,501 $ 164 $ 1,086 $ 804 $ 9,587 The total number of securities with unrealized losses at December 31, 2023 and 2022 were 67 and 69 , respectively. Most of the securities with unrealized losses in the portfolio have modest duration risk, low credit risk, and minimal unrealized losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase and are not related to credit concerns. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary and therefore no impairment has been recorded during the respective periods of presentation. We monitor the credit quality of held-to-maturity ("HTM") debt securities through both internal analysis performed on a quarterly basis and credit ratings when available. The following table reflects the credit ratings for the HTM debt securities at December 31, 2023. (dollars in thousands) AAA A- BBB/BBB+ BBB- Not Rated Total Corporate securities $ — $ 499 $ 1,248 $ 699 $ 748 $ 3,194 Agency securities 4,003 — — — — 4,003 Mortgage-backed securities 3,012 — — — — 3,012 $ 7,015 $ 499 $ 1,248 $ 699 $ 748 $ 10,209 The following table provides a breakdown of our HTM debt securities by year of origination at December 31, 2023. (dollars in thousands) Total 2023 2022 2021 2020 2019 Prior Corporate securities $ 3,194 $ — $ 749 $ 2,445 $ — $ — $ — Agency securities 4,003 — 4,003 — — — — Mortgage-backed securities issued by GSEs and Ginnie Mae 3,012 — 1,824 146 — — 1,042 $ 10,209 $ — $ 6,576 $ 2,591 $ — $ — $ 1,042 The following table is a roll forward of our allowance for credit losses on HTM debt securities at December 31, 2023. (dollars in thousands) December 31, 2023 Beginning Balance $ — Impact of adopting ASC 326 10 (Recovery) for credit losses ( 4 ) Ending Balance $ 6 |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans Receivable | Note 4 – Loans Receivable Portfolio loans, net of deferred costs and fees, are summarized by type as follows at December 31, 2023 and December 31, 2022: Period Ended December 31, 2023 December 31, 2022 (dollars in thousands) Amount Percent Amount Percent Real estate One to four family - owner occupied $ 130,026 18.45 % $ 137,742 20.73 % One to four family - non owner occupied 108,090 15.34 % 125,065 18.82 % Commercial owner occupied 102,512 14.54 % 91,853 13.82 % Commercial investor 287,194 40.76 % 226,854 34.14 % Construction and land 21,865 3.10 % 17,937 2.70 % Farm loans 14,877 2.11 % 13,823 2.08 % Total real estate loans 664,564 94.30 % 613,274 92.29 % Marine loans 16,386 2.32 % 15,791 2.38 % Other consumer 1,893 0.27 % 2,361 0.36 % Guaranteed by U.S. Government 3,715 0.53 % 4,933 0.74 % Commercial 18,244 2.58 % 28,052 4.23 % Total consumer and commercial 40,238 5.70 % 51,137 7.71 % Total loans 704,802 100.0 % 664,411 100.0 % Less: Deferred origination fees, net — ( 1,467 ) Allowance for credit losses ( 8,554 ) ( 3,813 ) Total loans, net of deferred costs and fees $ 696,248 $ 659,131 Net deferred loan origination fees and costs at December 31, 2023 totaled $ 640,000 . Residential lending repayment is generally dependent on economic and market conditions in the Company's lending area. Commercial real estate, commercial and construction loan repayments are generally dependent on the operations of the related properties or the financial condition of its borrower or guarantor. Accordingly, repayment of such loans can be more susceptible to adverse conditions in the real estate market and the regional economy. In the normal course of banking business, risks related to specific loan categories are as follows: Real Estate Loans – Real estate loans are typically made to consumers and businesses and are secured by real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by the economy as well as borrower-specific occurrences. Also impacting credit risk would be a shortfall in the value of the real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the collateral. Marine Loans – Marine loans are typically made to consumers and are secured by marine-based collateral. Credit risk is similar to real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. Marine loans may entail greater risk than residential mortgage loans, as they are collateralized by assets that depreciate rapidly. Repossessed collateral for a defaulted loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Note 4 – Loans Receivable (Continued) Other Consumer – Other consumer loans include installment loans and personal lines of credit which may be secured or unsecured. Credit risk is similar to real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan, if any. Consumer loans may entail greater risk than residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Guaranteed by the U.S. Government – Loans guaranteed by the U.S. government do not present similar risks as reflected in the other categories mentioned herein. The primary differentiating factor is that an explicit guarantee is provided by the government therefore substantially mitigating any risk of loss given default in the event of credit deterioration. Guaranteed by the U.S. Government loans in the table above include $ 25 thousand and $ 488 thousand of Paycheck Protection Program (PPP) loans at December 31, 2023 and 2022, respectively. The PPP loans are 100 % guaranteed by the Small Business Administration (SBA). Due to the guarantee from the Federal government and nature of the PPP initiative, there is no allowance for credit losses recorded for PPP loans. Commercial – Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. A summary of transactions in the allowance for credit losses-loans during the year ended December 31, 2023 follows: Year Ended December 31, 2023 (dollars in thousands) Beginning Balance Impact of ASC 326 Adoption Charge-offs Recoveries Provisions (recovery) Ending Balance Real estate One to four family - owner occupied $ 344 $ 1,117 $ ( 2 ) $ 64 $ 205 $ 1,728 One to four family - non owner occupied 562 356 — 305 ( 193 ) 1,030 Commercial owner occupied 366 78 ( 3 ) — 122 563 Commercial investor 2,272 1,506 — — ( 53 ) 3,725 Construction and land 93 496 — 154 29 772 Farm loans 17 135 — — 27 179 Total real estate loans 3,654 3,688 ( 5 ) 523 137 7,997 Marine and other consumer loans 68 336 ( 80 ) 26 53 403 Guaranteed by U.S. Government — — — — — — Commercial 91 208 — 3 ( 148 ) 154 Total consumer and commercial 159 544 ( 80 ) 29 ( 95 ) 557 Total loans $ 3,813 $ 4,232 $ ( 85 ) $ 552 $ 42 $ 8,554 Note 4 – Loans Receivable (Continued) The following table summarized the ACL activity for the year ended December 31, 2023. (dollars in thousands) Provision for credit losses - loans $ 42 Reduction in allowance for securities - HTM ( 4 ) Reduction in allowance for credit losses - unfunded commitments ( 83 ) Provision for (recovery of) credit losses per the Consolidated Statement of Income $ ( 45 ) A summary of transactions in the allowance for loan losses during the year ended December 31, 2022 follows: Year Ended December 31, 2022 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions (recovery) Ending Balance Real estate One to four family - owner occupied $ 258 $ ( 7 ) $ 43 $ 50 $ 344 One to four family - non owner occupied 695 — 87 ( 220 ) 562 Commercial owner occupied 280 — — 86 366 Commercial investor 1,225 ( 10 ) — 1,057 2,272 Construction and land 93 — 19 ( 19 ) 93 Farm loans 2 — — 15 17 Total real estate loans 2,553 ( 17 ) 149 969 3,654 Marine loans 48 — — 15 63 Other consumer 20 ( 39 ) 15 9 5 Commercial 45 — 1 45 91 Total consumer and commercial 113 ( 39 ) 16 69 159 Total loans $ 2,666 $ ( 56 ) $ 165 $ 1,038 $ 3,813 For the year ended December 31, 2022, no allowance for credit losses was recorded for PCI loans. The following table presents the credit risk profile by risk grade by origination year as of December 31, 2023. (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total One to four family - owner occupied Pass $ 6,387 $ 7,906 $ 13,727 $ 9,974 $ 9,707 $ 71,463 $ 10,492 $ 129,656 Special Mention — — — — — — — — Substandard — — — — — 331 39 370 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - owner occupied $ 6,387 $ 7,906 $ 13,727 $ 9,974 $ 9,707 $ 71,794 $ 10,531 $ 130,026 Current Period Gross Write-off $ — $ — $ — $ — $ — $ ( 2 ) $ — $ ( 2 ) One to four family - non owner occupied Pass $ 13,810 $ 30,603 $ 20,582 $ 10,742 $ 7,611 $ 22,795 $ — $ 106,143 Special Mention — — — — — — — — Substandard — — — — — 1,947 — 1,947 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - non owner occupied $ 13,810 $ 30,603 $ 20,582 $ 10,742 $ 7,611 $ 24,742 $ — $ 108,090 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Commercial owner occupied Pass $ 20,967 $ 16,071 $ 16,642 $ 5,998 $ 5,071 $ 31,536 $ — $ 96,285 Special Mention — — — — — — — — Substandard — — — 943 1,502 3,782 — 6,227 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial owner occupied $ 20,967 $ 16,071 $ 16,642 $ 6,941 $ 6,573 $ 35,318 $ — $ 102,512 Current Period Gross Write-off $ — $ — $ — $ — $ — $ ( 3 ) $ — $ ( 3 ) Commercial investor Pass $ 68,682 $ 89,812 $ 65,624 $ 16,205 $ 9,991 $ 28,823 $ — $ 279,137 Special Mention — — — — — — — — Substandard — — — 6,907 — 1,150 — 8,057 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial investor $ 68,682 $ 89,812 $ 65,624 $ 23,112 $ 9,991 $ 29,973 $ — $ 287,194 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Construction and land Pass $ 6,901 $ 9,650 $ 2,271 $ 650 $ — $ 704 $ — $ 20,176 Special Mention — — — — — — — — Substandard — — — 1,400 — 289 — 1,689 Doubtful — — — — — — — — Loss — — — — — — — — Total Construction and land $ 6,901 $ 9,650 $ 2,271 $ 2,050 $ — $ 993 $ — $ 21,865 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Farm loans Pass $ — $ 4,141 $ 2,281 $ 261 $ 2,641 $ 5,553 $ — $ 14,877 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Farm loans $ — $ 4,141 $ 2,281 $ 261 $ 2,641 $ 5,553 $ — $ 14,877 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Marine loans Pass $ 3,227 $ 2,044 $ 6,293 $ 1,751 $ 207 $ 2,864 $ — $ 16,386 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Marine loans $ 3,227 $ 2,044 $ 6,293 $ 1,751 $ 207 $ 2,864 $ — $ 16,386 Current Period Gross Write-off $ — $ — $ — $ — $ — $ ( 58 ) $ — $ ( 58 ) Other consumer Pass $ 315 $ 143 $ 124 $ 37 $ 189 $ 1,081 $ — $ 1,889 Special Mention — — — — — — — — Substandard — — — — — 4 — 4 Doubtful — — — — — — — — Loss — — — — — — — — Total Other consumer $ 315 $ 143 $ 124 $ 37 $ 189 $ 1,085 $ — $ 1,893 Current Period Gross Write-off $ — $ — $ — $ — $ — $ ( 22 ) $ — $ ( 22 ) Guaranteed by U.S. Government Pass $ — $ - $ — $ 26 $ 417 $ 3,272 $ — $ 3,715 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Guaranteed by U.S. Government $ — $ — $ — $ 26 $ 417 $ 3,272 $ — $ 3,715 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 501 $ 4,299 $ 6,236 $ 2,000 $ 628 $ 3,483 $ — $ 17,147 Special Mention — 400 — — — — — 400 Substandard — — — — — 697 — 697 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial $ 501 $ 4,699 $ 6,236 $ 2,000 $ 628 $ 4,180 $ — $ 18,244 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Total Loans Pass $ 120,790 $ 164,669 $ 133,780 $ 47,644 $ 36,462 $ 171,574 $ 10,492 $ 685,411 Special Mention — 400 — — — — — 400 Substandard — — — 9,250 1,502 8,200 39 18,991 Doubtful — — — — — — — — Loss — — — — — — — — Total loans $ 120,790 $ 165,069 $ 133,780 $ 56,894 $ 37,964 $ 179,774 $ 10,531 $ 704,802 (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total One to four family - owner occupied Pass $ 7,009 $ 14,907 $ 10,742 $ 10,708 $ 8,285 $ 73,585 $ 11,674 $ 136,910 Special Mention — — — — — — — — Substandard — — — — — 783 49 832 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - owner occupied $ 7,009 $ 14,907 $ 10,742 $ 10,708 $ 8,285 $ 74,368 $ 11,723 $ 137,742 Current Period Gross Write-Off $ ( 7 ) $ ( 7 ) One to four family - non owner occupied Pass $ 45,369 $ 27,088 $ 12,325 $ 7,337 $ 5,224 $ 23,369 $ — $ 120,712 Special Mention — — — — — — — — Substandard — — — 1,598 853 1,902 — 4,353 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - non owner occupied $ 45,369 $ 27,088 $ 12,325 $ 8,935 $ 6,077 $ 25,271 $ — $ 125,065 Current Period Gross Write-Off Commercial owner occupied Pass $ 17,678 $ 17,244 $ 6,299 $ 5,590 $ 11,502 $ 25,610 $ — $ 83,923 Special Mention — — — — — — — — Substandard — — 979 1,534 936 4,481 — 7,930 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial owner occupied $ 17,678 $ 17,244 $ 7,278 $ 7,124 $ 12,438 $ 30,091 $ — $ 91,853 Current Period Gross Write-Off Commercial investor Pass $ 83,975 $ 74,933 $ 24,133 $ 11,369 $ 3,500 $ 22,186 $ — $ 220,096 Special Mention — — — — — — — — Substandard — — — — 4,836 1,922 — 6,758 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial investor $ 83,975 $ 74,933 $ 24,133 $ 11,369 $ 8,336 $ 24,108 $ — $ 226,854 Current Period Gross Write-Off Construction and land Pass $ 10,135 $ 3,338 $ 1,376 $ 77 $ — $ 986 $ — $ 15,912 Special Mention — — — — — — — — Substandard — — 1,598 160 — 267 — 2,025 Doubtful — — — — — — — — Loss — — — — — — — — Total Construction and land $ 10,135 $ 3,338 $ 2,974 $ 237 $ — $ 1,253 $ — $ 17,937 Current Period Gross Write-Off Farm loans Pass $ 4,165 $ 657 $ 266 $ 2,752 $ 455 $ 5,528 $ — $ 13,823 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Farm loans $ 4,165 $ 657 $ 266 $ 2,752 $ 455 $ 5,528 $ — $ 13,823 Current Period Gross Write-Off Marine loans Pass $ 2,486 $ 7,413 $ 2,028 $ 223 $ 1,145 $ 2,437 $ — $ 15,732 Special Mention — — — — — — — — Substandard — — — — — 59 — 59 Doubtful — — — — — — — — Loss — — — — — — — — Total Marine loans $ 2,486 $ 7,413 $ 2,028 $ 223 $ 1,145 $ 2,496 $ — $ 15,791 Current Period Gross Write-Off Other consumer Pass $ 495 $ 212 $ 78 $ 216 $ 9 $ 1,329 $ — $ 2,339 Special Mention — — — — — — — — Substandard — — — — — 22 — 22 Doubtful — — — — — — — — Loss — — — — — — — — Total Other consumer $ 495 $ 212 $ 78 $ 216 $ 9 $ 1,351 $ — $ 2,361 Current Period Gross Write-Off $ ( 38 ) $ ( 38 ) Guaranteed by U.S. Government Pass $ — $ 304 $ 175 $ 525 $ 840 $ 3,089 $ — $ 4,933 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Guaranteed by U.S. Government $ — $ 304 $ 175 $ 525 $ 840 $ 3,089 $ — $ 4,933 Current Period Gross Write-Off Commercial Pass $ 10,301 $ 6,885 $ 5,116 $ 1,225 $ 1,798 $ 2,282 $ — $ 27,607 Special Mention — — — — — — — — Substandard — — — — — 445 — 445 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial $ 10,301 $ 6,885 $ 5,116 $ 1,225 $ 1,798 $ 2,727 $ — $ 28,052 Current Period Gross Write-Off $ ( 2 ) $ ( 8 ) $ ( 10 ) (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total Total Loans Pass $ 181,613 $ 152,981 $ 62,538 $ 40,022 $ 32,758 $ 160,401 $ 11,674 $ 641,987 Special Mention — — — — — — — — Substandard — — 2,577 3,292 6,625 9,881 49 22,424 Doubtful — — — — — — — — Loss — — — — — — — — Total loans $ 181,613 $ 152,981 $ 65,115 $ 43,314 $ 39,383 $ 170,282 $ 11,723 $ 664,411 The following table presents the amortized cost basis of collateral dependent loans by class of loans at December 31, 2023: Estimated Collateral Values Estimated Collateral Values (dollars in thousands) Real Estate Real Estate Business\Other Assets Business\Other Assets One to four family - owner occupied $ 1,160 $ 4,321 $ — $ — One to four family - non-owner occupied 273 648 — — Commercial owner occupied real estate 739 1,825 — — Commercial investor real estate 8,057 10,070 — — Construction and land 321 826 — — Other consumer — — 4 25 Total $ 10,550 $ 17,690 $ 4 $ 25 Management identifies loans as modifications to borrowers experiencing financial difficulty ("BEFD") when a borrower is experiencing financial difficulties and the Company has altered the cash flow of the loan as part of a modification or in the loan renewal process. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy. BEFD modifications included in the individually assessed loan schedules above, as of December 31, 2023 are as follows: (dollars in thousands) Number of Loans Amortized Cost One to four family - owner occupied 3 $ 251 One to four family - non owner occupied 1 130 Commercial investor real estate 1 1,150 Total accrual BEFD modification loans 5 $ 1,531 Modifications on non-accrual 1 $ 1,150 All BEFD modifications were loan term extensions. There were no BEFD modifications past due as of December 31, 2023. There was one loan, on non-accrual, that had payment defaults in the past 12 months. The following table details the amortized cost basis at the end of the reporting period for loans made to borrowers experiencing financial difficulty as of December 31, 2023. Year Ended December 31, 2023 (dollars in thousands) Term Extensions Payment Deferral and Term Extensions Total Percentage of Total Loans One to four family - owner occupied $ 251 $ — $ 251 0.04 % One to four family - non-owner occupied 130 — 130 0.02 % Commercial investor real estate 1,150 — 1,150 0.16 % Total $ 1,531 $ — $ 1,531 0.22 % The Company's policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality as substandard, doubtful, or loss assets. A loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans include those loans characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans (or portions of loans) classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted. Loans that do not expose the Company to risk sufficient to warrant classification in one of the aforementioned categories, but which possess potential weaknesses that deserve close attention, are required to be designated as special mention. The following table summarizes the classification of the loan portfolio at December 31, 2023: December 31, 2023 (dollars in thousands) Pass Special Substandard Doubtful Total Real estate One to four family - owner occupied $ 129,656 $ — $ 370 $ — $ 130,026 One to four family - non-owner occupied 106,143 — 1,947 — 108,090 Commercial owner occupied 96,285 — 6,227 — 102,512 Commercial investor 279,137 — 8,057 — 287,194 Construction and land 20,176 — 1,689 — 21,865 Farm loans 14,877 — — — 14,877 Total real estate loans 646,274 — 18,290 — 664,564 Marine loans 16,386 — — — 16,386 Other consumer 1,889 — 4 — 1,893 Guaranteed by the U.S. government 3,715 — — — 3,715 Commercial 17,147 400 697 — 18,244 Total consumer and commercial 39,137 400 701 — 40,238 Total loans $ 685,411 $ 400 $ 18,991 $ — $ 704,802 Note 4 – Loans Receivable (Continued) The following table summarizes classification of the gross loan portfolio at December 31, 2022: December 31, 2022 (dollars in thousands) Pass Special Substandard Doubtful Total Real estate One to four family - owner occupied $ 136,910 $ — $ 832 $ — $ 137,742 One to four family - non-owner occupied 120,712 — 4,353 — 125,065 Commercial owner occupied 83,923 — 7,930 — 91,853 Commercial investor 220,096 — 6,758 — 226,854 Construction and land 15,912 — 2,025 — 17,937 Farm loans 13,823 — — — 13,823 Total real estate loans 591,376 — 21,898 — 613,274 Marine loans 15,732 — 59 — 15,791 Other consumer 2,339 — 22 — 2,361 Guaranteed by the U.S. government 4,933 — — — 4,933 Commercial 27,607 — 445 — 28,052 Total consumer and commercial 50,611 — 526 — 51,137 Total loans $ 641,987 $ — $ 22,424 $ — $ 664,411 The following tables set forth certain information with respect to our loan portfolio delinquencies by loan class : December 31, 2023 30 - 59 60 - 89 90+ Days Days Days Total Current Total (dollars in thousands) Past Due Past Due Past Due Past Due Loans Loans Real estate One to four family - owner occupied $ 2,043 $ 645 $ 619 $ 3,307 $ 126,719 $ 130,026 One to four family - non owner occupied 322 — 219 541 107,549 108,090 Commercial owner occupied 901 — 468 1,369 101,143 102,512 Commercial investor 371 — 6,907 7,278 279,916 287,194 Construction and land 826 — 258 1,084 20,781 21,865 Farm loans — — — — 14,877 14,877 Total real estate loans 4,463 645 8,471 13,579 650,985 664,564 Marine loans — — — — 16,386 16,386 Other consumer 39 — — 39 1,854 1,893 Guaranteed by U.S. Government — — — — 3,715 3,715 Commercial — 401 — 401 17,843 18,244 Total consumer and commercial loans 39 401 — 440 39,798 40,238 Total loans $ 4,502 $ 1,046 $ 8,471 $ 14,019 $ 690,783 $ 704,802 All loans past due 90 or more days have been placed on non-accrual. Note 4 – Loans Receivable (Continued) December 31, 2022 30 - 59 60 - 89 90+ Days Days Days Total Current Total (dollars in thousands) Past Due Past Due Past Due Past Due Loans Loans Real estate One to four family - owner occupied $ 2,311 $ 793 $ 896 $ 4,000 $ 133,742 $ 137,742 One to four family - non owner occupied 777 170 379 1,326 123,739 125,065 Commercial owner occupied 1,048 103 2,056 3,207 88,646 91,853 Commercial investor 310 — 1,433 1,743 225,111 226,854 Construction and land — 43 160 203 17,734 17,937 Farm loans — — — — 13,823 13,823 Total real estate loans 4,446 1,109 4,924 10,479 602,795 613,274 Marine loans — — 59 59 15,732 15,791 Other consumer 65 — — 65 2,296 2,361 Guaranteed by U.S. Government — — — — 4,933 4,933 Commercial — — — — 28,052 28,052 Total consumer and commercial loans 65 — 59 124 51,013 51,137 Total loans $ 4,511 $ 1,109 $ 4,983 $ 10,603 $ 653,808 $ 664,411 The following is a summary of non-accrual loans by class as of the dates indicated: December 31, 2023 December 31, 2022 No With an No With an (dollars in thousands) Allowance Allowance Total Allowance Allowance Total Real estate One to four family - owner occupied $ 1,160 $ — $ 1,160 $ 1,371 $ — $ 1,371 One to four family - non owner occupied 273 — 273 585 — 585 Commercial owner occupied 739 — 739 2,167 — 2,167 Commercial investor 8,057 — 8,057 1,433 — 1,433 Construction and land 321 — 321 247 — 247 Farm loans — — — — — — Total real estate loans 10,550 — 10,550 5,803 — 5,803 Marine loans — — — 59 — 59 Other consumer 4 — 4 22 — 22 Total consumer and commercial loans 4 — 4 81 — 81 Total nonaccrual loans $ 10,554 $ — $ 10,554 $ 5,884 $ — $ 5,884 Interest that would have been accrued under the terms of the non-accrual loans was approximately $ 315,000 for the year ended December 31, 2023 and $ 240,000 for the year ended December 31, 2022. An impaired loan generally is one for which it is probable, based on current information, that the lender will not collect all the amounts due under the contractual terms of the loan. Loans are individually evaluated for impairment. When the Company classifies a problem loan as impaired, it records an impairment for that portion of the asset that is deemed uncollectible, based on the present value of the expected future cash flows discounted at the loan's original effective interest rate or based on the fair value of the collateral if the loan is collateral dependent. Note 4 – Loans Receivable (Continued) The following is a summary of impaired loans by class of loans as of December 31, 2022: Recorded Unpaid Related Average Interest With an allowance recorded Real estate loans One to four family - owner occupied $ 100 $ 100 $ 28 $ 103 $ 4 One to four family - non-owner occupied 70 70 2 71 4 Total 170 170 30 174 8 With no allowance recorded Real estate loans One to four family - owner occupied 1,956 1,956 — 2,789 93 One to four family - non-owner occupied 585 585 — 632 39 Commercial owner occupied 1,854 1,854 — 1,406 77 Commercial investor 1,432 1,432 — 1,889 99 Construction and land 248 248 — 203 26 Marine Loans 59 59 — 15 3 Other consumer 45 49 — 56 7 Guaranteed by the U.S. Government — — — 15 — Commercial — — — 2 — Total 6,179 6,183 — 7,006 344 Combined Real estate loans One to four family - owner occupied 2,056 2,056 28 2,892 97 One to four family - non-owner occupied 655 655 2 703 43 Commercial owner occupied 1,854 1,854 — 1,406 77 Commercial investor 1,432 1,432 — 1,889 99 Construction and land 248 248 — 203 26 Marine Loans 59 59 — 15 3 Other consumer 45 49 — 56 7 Guaranteed by the U.S. Government — — — 15 — Commercial — — — 2 — Total $ 6,349 $ 6,353 $ 30 $ 7,180 $ 352 Note 4 – Loans Receivable (Continued) Prior to the adoption of ASU 2022-002 effective on January 1, 2023, loans that were modified to make concessions to help a borrower remain current and/or to avoid foreclosure were classified as troubled debt restructurings (“TDR”). Generally, we did not forgive principal or interest on a loan or modify the interest rate on loans to below market rates. When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans. If we determined that the value of the modified loan was less than the recorded investment in the loan, impairment is recognized. The Company had no commitments to lend additional funds to borrowers whose loans have been modified. The status of TDRs as of December 31, 2022 follows: December 31, 2022 Number of recorded investment contracts Performing Nonperforming Total (amounts in thousands) Real estate loans One to four family - owner occupied 8 $ 559 $ 256 $ 815 One to four family - non-owner occupied 1 70 — 70 Commercial owner occupied real estate 2 320 — 320 Commercial investor real estate 1 205 — 205 Other Consumer 1 23 — 23 13 $ 1,177 $ 256 $ 1,433 The following TDRs were modified during the year ended December 31, 2022: December 31, 2022 Number of recorded investment contracts Performing Nonperforming Total (amounts in thousands) Real estate loans 'One to four family - owner occupied 1 $ 29 $ — $ 29 1 $ 29 $ — $ 29 For purchased loans that are not deemed impaired at acquisition, credit marks representing losses expected over the life of the loans are a component of the initial fair value. Subsequent to the purchase date, the method utilized to estimate the required allowance for credit losses for these loans is similar to that for originated loans. The Company will only record a provision for credit losses when the required allowance exceeds any remaining credit mark. The differences between the initial fair value and the unpaid principal balance at the date of acquisition are recorded as interest income over the life of the loans. The following table presents changes in the non-accretable yield for PCI loans for the years ended December 31: (dollars in thousands) 2022 Balance at January 1 $ 1,440 From acquisitions — Accretion ( 190 ) Balance at December 31, $ 1,250 The following table presents the outstanding balances and related carrying amounts for all purchased credit impaired loans at the end of the respective periods: (dollars in thousands) Contractually Carrying At December 31, 2022 $ 6,354 $ 5,104 At December 31, 2022, non-accretable discounts totaled $ 1.3 million PCI loans. Premiums on acquired loans related to the interest rate and maturities of the performing loans in the portfolios were also recognized. As of December 31, 2022, the remaining premium, which will be amortized into income over the lives of these loans, was $ 1.6 million. The contractual and carrying balances of all acquired loans at December 31, 2022 was $ 234.9 million. The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are limited to commitments to originate loans and unused lines of credit and involve, to varying degrees, elements of credit risk in excess of the amount recognized on the balance sheet. The Company's exposure to credit loss from nonperformance by the other party to the above mentioned financial instruments is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company generally requires collateral or other security to support financial instruments with off-balance sheet credit risk. At December 31, 2023, the Company's reserve balance for unfunded commitments was $ 289,000 . 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. Letters of credit are commitments issued to guarantee the performance of a customer to a third party. Amounts representing credit risk December 31, 2023 December 31, 2022 (dollars in thousands) Available lines of credit $ 49,371 $ 66,166 Letters of credit 935 978 Total $ 50,306 $ 67,144 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 5 – Premises and Equipment Premises and equipment at December 31, 2023 and December 31, 2022 are summarized by major classification as follows: Useful life in years December 31, 2023 December 31, 2022 (dollars in thousands) Land — $ 3,510 $ 3,706 Buildings 15 - 40 12,289 12,364 Leasehold improvements 5 - 10 317 306 Furniture, fixtures, and equipment 3 - 10 3,027 2,879 Premises and equipment, gross 19,143 19,255 Accumulated depreciation ( 4,893 ) ( 4,079 ) Premises and equipment, net of accumulated depreciation $ 14,250 $ 15,176 Depreciation expense for the years ended December 31, 2023 and December 31, 2022 was $ 869,000 and $ 860,000 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | Note 6 – Goodwill and Intangible Assets In January 2022, the Company acquired North Arundel Savings Bank and recorded a core deposit intangible of $ 85,000 and the Bank recognized a bargain purchase gain of $ 1.3 million. The goodwill and core deposit intangible are not deductible for purposes due to the structure of the transaction. The core deposit intangible is being amortized over ten years . The goodwill and core deposit intangible are evaluated annually for impairment. The activity in core deposit intangible assets related to the mergers for the years ended December 31, 2023 and ended December 31, 2022 is as follows: December 31, 2023 December 31, 2022 (dollars in thousands) Net carrying amount at beginning of period $ 1,195 $ 1,293 Core deposit intangible from the mergers — 85 Amortization ( 183 ) ( 183 ) Net carrying amount at end of the period $ 1,012 $ 1,195 At December 31, 2023 future estimated annual amortization expense is as follows: Year ending (in thousands) 2024 $ 180 2025 180 2026 180 2027 180 2028 180 Thereafter 112 Total Estimated Amortization Expense $ 1,012 Goodwill and other intangible assets are presented in the tables below. December 31, 2023 December 31, 2022 Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net Core deposit intangible $ 1,868 $ 856 $ 1,012 $ 1,868 $ 673 $ 1,195 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits, by Type [Abstract] | |
Deposits | Note 7 – Deposits Deposits are summarized as follows: At December 31, 2023, the Bank had two account relationships from local government entities that comprised 3.3 % and 1.6 % of total deposits, respectively. At December 31, 2023 and December 31, 2022, the Bank had $ 32.1 million and $ 28.6 million in certificates of deposit of $250,000 or more, respectively. Deposits in excess of $250,000 may not be insured by the FDIC. At December 31, 2023 2022 Amount Percent Amount Percent (dollars in thousands) Noninterest-bearing checking accounts $ 142,030 22.40 % $ 167,202 24.42 % Interest-bearing checking accounts 83,656 13.19 % 96,829 14.14 % Money market accounts 87,310 13.77 % 102,301 14.94 % Savings accounts 147,608 23.28 % 171,772 25.09 % Certificates of deposit 173,516 27.36 % 146,514 21.41 % Total deposits $ 634,120 100.00 % $ 684,618 100.00 % At December 31, 2023 scheduled maturities of certificates of deposit are as follows: Year ending December 31, (dollars in thousands) 2024 $ 111,396 2025 43,874 2026 5,097 2027 7,377 2028 5,772 Thereafter — Total certificates of deposit $ 173,516 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 8 – Borrowings A summary of the Company’s borrowings at December 31 for the years indicated is as follows: 2023 2022 (dollars in thousands) Maturity Balance Rate Balance Rate Federal Home Loan Bank Advance 2023 $ — $ 12,000 4.58 % BV Financial Inc. Series 2020 Notes 2030 35,000 4.88 % 35,000 4.88 % Easton Capital Trust I 2034 3,093 SOFR+ 2.85 % 3,093 LIBOR+ 2.85 % Total borrowings, gross $ 38,093 $ 50,093 Less: debt issuance costs ( 272 ) ( 427 ) Add: net fair value adjustments on acquired borrowings ( 570 ) ( 627 ) Total borrowings, net $ 37,251 $ 49,039 The Bank has an agreement under a blanket floating lien with the FHLB providing the Bank a line of credit of up to 25 % of its total assets limited to the lendable collateral value of qualified assets the Bank has to pledge to support its borrowings. At December 31, 2023 and December 31, 2022, the Bank had credit availability of $ 150.0 million and $ 96.8 million, respectively. The Bank had no FHLB advances outstanding at December 31, 2023 and $ 12.0 million in FHLB advances outstanding at December 31, 2022. Additionally, at December 31, 2023 and December 31, 2022, the Bank had unfunded letters of credit used to secure municipal deposits outstanding against the FHLB line of credit of $ 25.0 million and $ 40.0 million, respectively. The Bank is required to maintain qualified mortgage loans as collateral for its FHLB advances and letters of credit in an amount equal to 100% of the outstanding advances. As of December 31, 2023 and December 31, 2022, the Bank pledged $ 175.0 million and $ 148.9 million of gross loans to the FHLB for advances, respectively. Additionally, at December 31, 2023 and December 31, 2022, the Bank had a $ 20.0 million unsecured demand line of credit facility with a correspondent bank, which had no outstanding balance. BV Financial Inc. issued $ 35.0 million in Fixed-to-Floating Rate Subordinated Notes Due 2030 on October 21, 2020. The proceeds were used in the purchase of Delmarva Bancshares and to retire the Delmarva 2015 Senior notes on January 4, 2021, the first payment date after the acquisition. The interest rate on these notes is fixed for the first five years at 4.875 % and then will reset quarterly to an interest rate per annum equal to the then current three-month term Secured Overnight Financing Rate (“SOFR”) (provided, however that in the event the three-month SOFR is less than zero , three-month term SOFR shall be deemed to be zero) plus 472 basis points, payable quarterly in arrears. The Company may begin redeeming these notes on the December 30, 2025 payment date. Issuance costs of $ 738,000 at December 31, 2020 are being amortized into expense on a monthly basis of which $ 272,000 remains at December 31, 2023. Note 8 – Borrowings (Continued) The Easton Capital Trust Junior Subordinated Notes were issued by Easton Bank & Trust and assumed by Delmarva Bancshares, Inc. on July 15, 2015 and then assumed by the Company on October 31, 2020. The Company acquired $ 3.0 million of junior subordinated debt of Easton Capital Trust I, The junior subordinated debt will mature on February 8, 2034 , but may called no earlier than February 8, 2009, if certain conditions, including regulatory approvals, are met. The junior subordinated debt accrues interest at a floating rate equal to the 3‐month SOFR plus 2.85 %, payable quarterly. The quarterly interest rate on the debentures was 8.49 % at December 31, 2023. In accordance with ASC 810 “Consolidation-Overall-Scope and Scope Exceptions,” the Company did not eliminate through consolidation the Company’s $ 93,000 equity investment in Easton Capital Trust I. Instead, the Company reflected this equity investment in the “Other assets” line item in the consolidated balance sheets. In conjunction with the Company’s acquisition of Delmarva Bancshares, the Delmarva 2015 Senior notes had a fair market value premium of $ 203,000 . The Easton Capital Trust I Notes had a fair market value discount of $ 739,000 . The premium on the Delmarva 2015 notes was fully accreted into income upon payoff in January 2021. The discount on the Easton capital notes is being amortized as an adjustment to yield on a monthly basis. |
Profit Sharing and Deferred Com
Profit Sharing and Deferred Compensation Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Compensation Arrangements [Abstract] | |
Profit Sharing and Deferred Compensation Agreements | Note 9 – Profit Sharing and Deferred Compensation Agreements The Bank has a profit sharing plan and a 401(k) plan for all eligible employees. Contributions to the plans are discretionary by the Board of Directors. For the year ended December 31, 2022 the Company had a maximum match contribution of 5 %. For the years ended December 31, 2023 and December 31, 2022, expenses of $ 79,000 and $ 72,000 were incurred for the 401(k) plan, respectively. In the years ended December 31, 2023 and 2022, the Company accrued $ 0 for the profit-sharing plan. The Company has supplemental executive retirement agreements with four retired executive officers. Under the agreements, each executive receives a stated annual benefit in monthly installments. All executives covered by these agreements are receiving benefits under the terms of the agreements. During the years ended December 31, 2023 and December 31, 2022, benefits of $ 251,000 and $ 248,000 were paid in accordance with the agreements, respectively. The Company has supplemental retirement agreements with certain directors. Under the agreements, each director will receive a stated annual benefit in monthly installments for ten years following his or her separation from service after attaining a normal retirement age of 70. If the director separates either voluntarily or involuntarily from service prior to reaching his or her normal retirement age, the director will receive an unreduced lump sum of the accrued liability balance (i.e., the amount accrued to fund the future benefit expense under the agreement) within thirty days of the separation from service. Upon a change in control, the director will receive a stated annual benefit in monthly installments for ten years following the change in control. If the director dies while actively serving as a director, the director's beneficiary will receive an unreduced lump sum equal to the accrued liability balance within thirty days of the director's death. If the director dies after monthly payments have commenced under the agreement, the director's beneficiary will receive the remaining installments in monthly payments in accordance with the schedule of payments due to the director. Note 9 – Profit Sharing and Deferred Compensation Agreements (Continued) The Company agreed to maintain post-retirement agreements with two former directors of Vigilant Federal Savings Bank that the Company acquired in 2013. The agreements call for the Company to pay the premiums for supplemental health insurance for the directors and their spouses for life. The Company has entered into salary continuation agreements with the Co-CEOs of the Company. Under these agreements, the executives will receive a stated annual benefit in monthly installments for 15 years following separation from service subject to service time and age. If the executive dies after monthly payments have commenced under the agreement, the executive's beneficiary will receive the present value of the remaining installments. The accrued liabilities for the executive retirement agreements were $ 2.3 million and $ 2.3 million and for the director retirement agreements were $ 225,000 and $ 256,000 at December 31, 2023 and December 31, 2022, respectively. The Company recognized compensation expense related to these plans of $ 185,000 and $ 182,000 during the years ended December 31, 2023 and December 31, 2022, respectively. Accounting standards require the recognition of a liability and related compensation costs for endorsement split-dollar life insurance policies that provide a benefit to an employee that extends to post-retirement periods. Bank-owned life insurance policies purchased for this purpose do not effectively settle the Company's obligation to the employee in this regard and thus the Company records a benefit cost and a related liability. As of December 31, 2023 and December 31, 2022, the Company has recorded a liability of $ 275,000 and $ 292,000 , respectively, for this benefit. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Note 10 – Employee Benefit Plans Stock Options On December 14, 2017, the Company granted 79,607 stock options to officers and employees of the Company of which 55,648 and 36,350 were exercisable at December 31, 2023 and December 31, 2022, respectively. The options were granted with an exercise price at the then fair market value of the stock of $ 5.65 , scheduled to vest over five years and expire ten years from the date of grant. Information with respect to employee options outstanding during the years ended December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 Weighted Weighted average average exercise exercise Shares price Shares price Outstanding at beginning of period 55,648 $ 5.65 60,624 $ 5.65 Granted — — — — Exercised — — 4,976 5.65 Expired/cancelled/forfeited — — — — Outstanding at end of period 55,648 $ 5.65 55,648 $ 5.65 Exercisable at end of period 55,648 $ 5.65 55,648 $ 5.65 For December 31, 2022, the options granted, outstanding and exercised have been adjusted for the 1.5309 conversion ratio utilized in the conversion of the Company from a Mutual Holding Company Note 10 – EMPLOYEE BENEFIT PLANS (Continued) A summary of information about stock options outstanding is as follows at December 31, 2023 and December 31, 2022: Weighted average Outstanding Remaining Exercisable exercise price shares life (years) shares Outstanding at beginning of period $ 5.65 55,648 5.0 55,648 55,648 55,648 Intrinsic value on December 31, 2023 $ 474,677 $ 594,323 Weighted average Outstanding Remaining Exercisable exercise price shares life (years) shares Outstanding at beginning of period $ 5.65 55,648 4.0 55,648 55,648 55,648 Intrinsic value on December 31, 2022 $ 594,323 $ 594,323 The aggregate intrinsic values are presented in the preceding tables are calculated as the difference between the estimated fair value of the stock as of December 31, 2023 and December 31, 2022, and the exercise price of the options multiplied by the number of options outstanding as of the aforementioned dates. The Company recognized $ 0 a nd $ 3,250 in compensation expense during the years ended December 31, 2023 and December 31, 2022, respectively, relating to the granting of stock options. As of December 31, 2023 and December 31, 2022, there was $ 0 and $ 0 , respectively, in future compensation expense associated with outstanding stock options. Restricted Stock In 2023, the Company granted 18,784 shares of restricted stock to Board members and certain executive officers. A summary of the activity for the years ended December 31, 2023 and December 31, 2022 is presented below: The Company recognized $ 255,000 and $ 253,000 in compensation expense during the years ended December 31, 2023 and December 31, 2022, respectively, relating to the granting of restricted stock. As of December 31, 2023 and December 31, 2022, there was $ 151,150 and $ 172,800 , respectively, in future compensation expense associated with restricted stock. Restricted stock outstanding and exercised in the prior periods have been adjusted for the 1.5309 conversion ratio utilized in the Conversion of the Company from a Mutual Holding Company. Note 10 – EMPLOYEE BENEFIT PLANS (Continued) Weighted Number of Average Grant Common Date Fair Shares Value/Share Restricted Stock at January 1, 2023 31,083 $ 13.15 Granted 18,784 14.67 Vested ( 19,747 ) 14.63 Forfeited — — Restricted Stock at December 31, 2023 30,120 14.30 Restricted shares outstanding and exercised have been adjusted for the 1.5309 conversion ratio utilized in the conversion of the Company from a Mutual Holding Company Weighted Number of Average Grant Common Date Fair Shares Value/Share Restricted Stock at January 1, 2022 21,586 $ 11.80 Granted 22,718 14.10 Vested ( 13,221 ) 12.59 Forfeited — — Restricted Stock at December 31, 2022 31,083 13.15 The Company offers benefits under the BayVanguard Bank Employee Stock Ownership Plan (the "ESOP") to employees who meet certain eligibility requirements. In connection with the offering, the ESOP trustees subscribed for 8 % of the shares of the Company stock sold in the offering. The purchase was funded through a loan from the Company equal to 100 % of the aggregate purchase price of the stock. In connection with the purchase of the shares, the ESOP borrowed $ 7.8 million from the Company, with an interest rate of 8.50 % with a twenty-year term. Total shares purchased by the ESOP was 783,918 . The Company makes annual contributions to the ESOP equal to the ESOP's debt service. Shares purchased with the proceeds from the loan, that have not been allocated to employees are pledged as collateral for the loan, and held in a suspense account for future allocations to participants. Shares released from the expense account are allocated among the participants based on compensation, as defined in the ESOP documents. The ESOP shares pledged as collateral are reported as Unearned common stock held by Employee Stock Ownership Plan shares in the Company's statement of financial condition. As shares are committed to be released, the Company recognizes compensation expense equal to the current market price of the shares, and the shares become outstanding in the earnings per share calculation. The Company recognized $ 557,000 and $ 0 of ESOP expense associated with the release of the shares during the years ended December 31, 2023 and 2022, respectively. The number of shares committed to be released per year is 39,196 thru 2041, and 39,194 in 2042. The following table presents share information held by the ESOP: (amounts in thousands, except fair value of unallocated shares) 2023 2022 Allocated shares — — Shares committed to be released 39,196 — Unallocated shares (suspense shares) 744,722 — Total shares 783,918 — Fair value of unallocated shares $ 10,560,158 $ — |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Note 11 – Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Basel III Capital Rules became effective for the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1 capital, Tier 1 capital, and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to adjusted quarterly average assets (as defined). In connection with the adoption of the Basel III Capital Rules, the Bank elected to opt-out of the requirement to include accumulated other comprehensive income in Common Equity Tier 1 capital. Common Equity Tier 1 capital for the Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Insured depository institutions are required to meet the following in order to qualify as "well capitalized:" (1) a common equity Tier 1 risk-based capital ratio of 6.5 %; (2) a Tier 1 risk-based capital ratio of 8 %; (3) a total risk-based capital ratio of 10 %; and (4) a Tier 1 leverage ratio of 5 %. The maintenance of a capital conservation buffer of 2.5 % is also required. The Basel III Capital Rules also provide for a "countercyclical capital buffer" that is applicable to only certain covered institutions and does not have any current applicability to the Bank. The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. Note 11 – Regulatory Matters (Continued) The following table presents the Bank's capital position based on the financial statements: To be well capitalized under For capital prompt corrective Actual adequacy purposes action provisions December 31, 2023 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Tier 1 Leverage ratio $ 162,125 18.50 % $ 35,055 4.00 % $ 43,819 5.00 % Tier 1 capital (to risk-weighted assets) $ 162,125 24.00 % $ 40,523 6.00 % $ 54,031 8.00 % Common Equity Tier 1 Capital Ratio (to risk-weighted assets) $ 162,125 24.00 % $ 30,393 4.50 % $ 43,900 6.50 % Total Capital ratio (to risk-weighted assets) $ 170,571 25.26 % $ 54,031 8.00 % $ 67,539 10.00 % December 31, 2022 Tier 1 Leverage ratio $ 109,939 13.39 % $ 32,845 4.00 % $ 41,057 5.00 % Tier 1 capital (to risk-weighted assets) $ 109,939 16.76 % $ 39,361 8.50 % $ 52,482 8.00 % Common Equity Tier 1 Capital Ratio (to risk-weighted assets) $ 109,939 16.76 % $ 29,521 7.00 % $ 42,642 6.50 % Total Capital ratio (to risk-weighted assets) $ 113,757 17.34 % $ 52,482 10.50 % $ 65,602 10.00 % As of December 31, 2023, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain ratios as set forth in the table. There have been no conditions or events since that notification that management believes have changed the Bank's category. The Federal Deposit Insurance Corporation, through formal or informal agreement, has the authority to require an institution to maintain higher capital ratios than those provided by statute, to be categorized as well capitalized under the regulatory framework for prompt corrective action. The Bank was allowed a special bad debt deduction at various percentages of otherwise taxable income for various years through December 1, 1987. If the amounts, which qualified as deductions for federal income tax purposes prior to December 31, 1987, are later used for purposes other than to absorb loan losses, including distributions in liquidations, they will be subject to federal and state income tax at the then current corporate rate. Retained earnings at December 31, 2023 and December 31, 2022 included $ 1.5 million for which no provision for income tax has been provided. The unrecorded deferred income tax liability on the above amount was approximately $ 413,000 . Federal regulations impose limitations upon all capital distributions by an insured depository institution, including cash dividends, payments to repurchase its shares and payments to shareholders of another institution in a cash-out merger. Under the regulations, an application to and prior approval of the Federal Deposit Insurance Corporation is required prior to any capital distribution if the institution does not meet the criteria for "expedited treatment" of applications under Federal Deposit Insurance Corporation regulations (i.e., generally, examination and Community Reinvestment Act ratings in the two top categories), the total capital distributions for the calendar year exceed net income for that year plus the amount of retained net income for the preceding two years, the institution would be undercapitalized following the distribution or the distribution would otherwise be contrary to a statute, regulation or agreement with the Federal Deposit Insurance Corporation. Note 11 – Regulatory Matters (Continued) Banks are required to carry noninterest-bearing cash reserves at specified percentages of deposit balances. The Bank's normal amount of cash on hand and on deposit with other banks is sufficient to satisfy the reserve requirements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12– Income Taxes The income tax provision consisted of the following for the years ended December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 (dollars in thousands) Current expense Federal $ 3,185 $ 2,466 State 1,523 1,255 Total Current Expense 4,708 3,721 Deferred expense 207 308 Income tax expense $ 4,915 $ 4,029 Note 12– Income Taxes (Continued ) The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2023 and December 31, 2022 are presented below: December 31, 2023 December 31, 2022 (dollars in thousands) Deferred tax assets Deferred compensation $ 689 $ 715 Allowance for credit losses 2,425 1,061 Merger fair value adjustments 1,587 2,497 Goodwill impairment — — Foreclosed real estate write-downs and deferred gain 7 273 Stock grants 78 — Net operating loss carryover 6,556 7,011 Non-accrual interest 260 66 Other 1,377 1,526 Total deferred tax assets 12,979 13,149 Deferred tax liabilities Prepaid expenses 220 145 Core deposit intangible 278 329 Depreciation 3,512 3,562 Total deferred tax liabilities 4,010 4,036 Total deferred tax assets, net $ 8,969 $ 9,113 The amount computed by applying the statutory federal income tax rate to income before income tax provision is different than the taxes provided for the following reasons: December 31, 2023 December 31, 2022 Percent of Percent of Amount pretax income Amount pretax income (dollars in thousands) Statutory federal income tax rate $ 3,909 21.0 % $ 3,262 22.4 % State tax, net of federal income tax provision 1,261 6.8 1,018 7.0 Tax exempt income ( 142 ) ( 0.8 ) ( 787 ) ( 5.4 ) Nondeductible merger expenses ( 3 ) 0.0 373 2.6 Other ( 110 ) ( 0.6 ) 163 1.1 Income Tax Expense $ 4,915 26.4 % $ 4,029 27.7 % |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Note 13 – Related-Party Transactions The Bank has had, and may be expected to have in the future, banking transactions in the ordinary course of business with directors, officers, their immediate families and affiliated companies (commonly referred to as related parties), on the same terms including interest rates and collateral, as those prevailing at the time for comparable transactions with others. The following table presents a summary of the activity of loans receivable from related parties during the years ended December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 (dollars in thousands) Balance, beginning $ 17 $ 37 Advances — — New related party 96 — Less: retired directors — — Repayments ( 17 ) ( 20 ) Balance, ending $ 96 $ 17 Note 13 – Related-Party Transactions (Continued) Deposits of related parties totaled $ 1.8 million and $ 1.9 million as of December 31, 2023 and December 31, 2022, respectively. The Company entered into an operating lease agreement with a related party and paid $ 20,000 in lease payments in the year ended December 31, 2023. The following table shows the future operating lease payments due by year. Amount Year ending December 31, (dollars in thousands) 2024 $ 48 2025 50 2026 51 2027 53 2028 55 Thereafter 271 Total $ 528 |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leasing Arrangements | Note 14 – Leasing Arrangements The Company leases real estate properties for a portion of its network of bank branches. All of the Company’s leases are currently classified as operating. The following table shows the operating lease right of use assets and operating lease liabilities as of December 31, 2023 and 2022: Consolidated Balance Sheet classification December 31, 2023 December 31, 2022 (dollars in thousands) Operating lease right of use asset Other assets $ 1,128 $ 617 Operating lease liabilities Other liabilities $ 1,162 $ 645 Other information related to leases: Weighted average remaining lease term of operating leases 5.5 years 3.9 years Weighted average discount rate of operating leases 4.26 % 3.74 % Cash paid for amounts included in the measurement of lease liabilities $ 197,000 $ 220,000 Operating lease costs included in occupancy expense in the Consolidated Statement of Income for the years ended December 31, 2023 and December 31, 2022 were $ 259,000 and $ 273,000 , respectively. Future undiscounted lease payments for operating leases, including those option years for which the Company is reasonably certain to renew, are as follows: Amount Year ending December 31, (dollars in thousands) 2024 $ 243 2025 464 2026 127 2027 64 2028 64 Thereafter 229 Total undiscounted lease payments 1,191 Less: imputed interest ( 29 ) Present value of operating lease liabilities $ 1,162 Note 14 – Leasing Arrangements (Continued ) The Company leased office space to a non-related third party and received rental income of $ 163,000 for the year ended December 31, 2023. The following table shows the future operating lease payments due to be received by year. Amount Year ending December 31, (dollars in thousands) 2024 $ 168 2025 173 2026 178 2027 183 2028 189 Thereafter 813 Total $ 1,704 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Loss Contingency [Abstract] | |
Contingencies | Note 15 – Contingencies Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, after consultation with legal counsel, will have no material effect on the Company's consolidated financial position or results of operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 16 – Fair Value Measurements The estimated fair values of the Bank's financial instruments are summarized below. The fair values are estimates derived primarily from present value techniques and may not be indicative of the net realizable or liquidation values. The calculation of estimated fair values is based on market conditions at a specific point in time and may not reflect current or future fair values. Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity). An asset or liability's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Note 16 – Fair Value Measurements (Continued ) Assets measured at fair value on a recurring basis by level within the fair value hierarchy used at December 31, 2023 and December 31, 2022, are as follows: Level 1 Level 2 Level 3 Quoted prices Significant Significant in active other other markets for observable unobservable December 31, 2023 Total identical assets inputs inputs (dollars in thousands) Securities available for sale Agency securities $ 4,723 $ — $ 4,723 $ — Corporate securities 1,418 — 1,418 — Mortgage-backed securities 28,640 — 28,640 — $ 34,781 $ — $ 34,781 $ — December 31, 2022 Securities available for sale Corporate securities $ 1,932 $ — $ 1,932 $ — Mortgage-backed securities 31,102 — 31,102 — $ 33,034 $ — $ 33,034 $ — The following valuation techniques were used to measure the fair value of assets in the table above on a recurring basis as of December 31, 2023 and December 31, 2022. Securities available for sale - The fair values of securities available for sale were based on available market pricing for the securities. We rely on third party brokers to obtain and provide us with this market pricing from a definitive security pricing source. Assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy used at December 31, 2023 and December 31, 2022, are as follows: Level 1 Level 2 Level 3 Quoted prices Significant Significant in active other other markets for observable unobservable December 31, 2023 identical assets inputs inputs (dollars in thousands) Foreclosed real estate and repossessed assets 170 — — 170 $ 10,724 $ — $ — $ 10,724 December 31, 2022 Foreclosed real estate and repossessed assets 1,987 — — 1,987 $ 8,336 $ — $ — $ 8,336 The following valuation techniques were used to measure the fair value of assets in the tables above on a nonrecurring basis as of December 31, 2023 and December 31, 2022. Individually evaluated loans - Loans included in the table have been measured for impairment generally based on the fair value of the loan's collateral. A loan is considered to be collateral dependent when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. For real estate loans, the fair value of the loan's collateral is determined by a third party appraisal, which is then adjusted for the estimated selling and closing costs related to liquidation of the collateral (typically 10 % of the appraised value). For non real estate loans, the fair value of the loan's collateral may be determined using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted based on management's knowledge, changes in market conditions, and management's expertise and knowledge of the customer and customer's business. Fair value was determined based upon a discounted cash flow from the expected proceeds of the underlying collateral. These loans are included as Level 3 fair value, based upon the lowest level of input that is significant to the fair value measurements. The fair value consists of the loan balance reduced by any specific impairment reserve. Note 16 – Fair Value Measurements (Continued ) There were no transfers in or out of the Level 3 category after the loans were classified as impaired loans. Foreclosed real estate and repossessed assets - Fair value of foreclosed assets was based on the Company's appraisal of the property less costs to sell. This value was determined from a current industry standard appraisal guide based on the value of similar properties adjusted for factors including condition and location of property. Changes in the balance of foreclosed real estate and repossessed assets during the years ended December 31, 2023 and December 31, 2022, were as follows: December 31, 2023 December 31, 2022 (dollars in thousands) Beginning of period balance $ 1,987 $ 1,987 Improvements and additions 57 — Proceeds from sale ( 2,583 ) — Gain (loss) on sale 709 — End of period balance $ 170 $ 1,987 At December 31, 2023 and December 31, 2022, the Company had $ 174,000 and $ 114,000 in residential mortgages in the process of foreclosure. The following methods and assumptions were used by the Company in estimating the fair values of financial instruments: Cash and Cash Equivalents The carrying amounts of cash and cash equivalents approximate fair value. Time Deposits in Other Banks The fair value of time deposits in other banks is estimated using the rates currently available for deposits of similar remaining maturities. Investment Securities Fair values for securities, excluding Federal Home Loan Bank stock, are based on available market prices. The carrying amount of Federal Home Loan Bank stock approximates fair value based on the redemption provisions of the Federal Home Loan Bank. Loans Receivable The fair value of loans receivable were determined using an exit price methodology as prescribed by ASC 820. The exit price estimation of fair value is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. Note 16 – Fair Value Measurements (Continued ) The Company follows ASC Topic 820, Fair Value Measurements which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis or on a nonrecurring basis. ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Deposits The fair values disclosed for demand deposits (e.g., interest and noninterest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on such certificates to a schedule of aggregated expected monthly maturities on these deposits. Advances from the Federal Home Loan Bank of Atlanta The fair value of advances is estimated discounting the contractual cash flows using rates currently offered for advances with similar terms and remaining maturities. Off-Balance Sheet Credit Related Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. The fair values of these instruments were not significant at December 31, 2023 and December 31, 2022. The following table summarizes the carrying amounts and fair values of financial instruments at December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 Fair value Carrying Fair Carrying Fair hierarchy amount value amount value (dollars in thousands) Financial assets Cash and cash equivalents Level 1 $ 73,742 $ 73,742 $ 68,652 $ 68,652 Securities held to maturity Level 2 10,209 9,206 10,461 9,906 Securities available for sale Level 2 34,781 34,781 33,034 33,034 Federal Home Loan Bank of Atlanta stock Level 2 626 626 977 977 Loans receivable Level 3 696,248 686,879 659,131 639,027 Accrued interest receivable Level 2 3,279 3,279 2,952 2,952 Financial liabilities Deposits Level 3 $ 634,120 $ 631,720 $ 684,618 $ 551,348 FHLB Borrowings Level 3 — — 12,000 11,976 Subordinated Debentures Level 3 37,251 31,018 37,039 33,595 Accrued interest payable Level 2 193 193 110 110 |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information (Parent Company Only) | Note 17 – Condensed Financial Information (Parent Company Only) Information as to the financial position of BV Financial, Inc. and its results of operations and cash flows as of and for the years ended December 31, 2023 and December 31, 2022, are summarized below. Statement of Financial Condition (dollars in thousands) December 31, 2023 December 31, 2022 Assets Cash $ 45,625 $ 3,820 Equity investment 256 221 ESOP loan receivable 7,328 — Investment in subsidiary 175,366 123,436 Goodwill 6,326 6,326 Other assets 1,491 1,056 Total Assets $ 236,392 $ 134,859 Liabilities and Stockholders Equity Borrowings 37,251 37,039 Other Liabilities 76 69 Total Liabilities 37,327 37,108 Total Stockholders' Equity 199,065 97,751 Total Liabilities & Stockholders Equity $ 236,392 $ 134,859 Statement of Income December 31, 2023 December 31, 2022 (dollars in thousands) Interest income $ 285 $ — Cash dividends from subsidiary 3,750 1,900 Equity security valuation adjustment 29 ( 28 ) Total interest and dividend income 4,064 1,872 Interest Expense 2,165 2,062 Net interest and dividend income 1,899 ( 190 ) Noninterest income 8 — Noninterest expense 229 111 Income (loss) before tax 1,678 ( 301 ) Income tax benefit 436 462 Income (loss) before equity in net income of subsidiary 2,114 161 Equity in undistributed net income of subsidiary 11,593 10,363 Net Income $ 13,707 $ 10,524 Note 17 – Condensed Financial Information (Parent Company Only) (Continued ) Statements of Cash Flows (dollars in thousands) December 31, 2023 December 31, 2022 Cash flows from operating activities Net income $ 13,707 $ 10,524 Adjustments to reconcile net income to net cash used by operating activities Equity in net income of subsidiary ( 11,593 ) ( 10,363 ) Amortization of debt issuance costs and debt fair value adjustments 212 211 Non-cash income-Equity security valuation adjustment ( 35 ) 28 (Decrease) in other assets ( 436 ) ( 463 ) Increase in other liabilities 7 32 Net cash provided by (used in) operating activities 1,862 ( 31 ) Cash flows from investing activities Net (increase) in loans ( 7,328 ) — Investment in Equity Securities — ( 250 ) Net cash used in investing activities ( 7,328 ) ( 250 ) Cash flows from financing activities Issuance of common stock funded by stock offering 97,990 — Offering costs ( 3,248 ) — Investment in Bank from stock offering ( 47,471 ) — Stock options exercised — 28 Net cash provided by financing activities 47,271 28 Increase (decrease) in cash and cash equivalents 41,805 ( 253 ) Cash and cash equivalents at beginning of period 3,820 4,073 Cash and cash equivalents at end of period $ 45,625 $ 3,820 |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated in consolidation. |
Basis of Financial Statement Presentation and Significant Estimates | Basis of Financial Statement Presentation and Significant Estimates The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for credit losses, goodwill and intangible asset impairment, and the valuation of deferred tax assets. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company's activities are with customers located within the Baltimore metropolitan area and the Eastern Shore of Maryland. The Company does not have any significant concentrations to any one industry or customer. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, cash items in the process of clearing, and interest-bearing deposits with banks with original maturities of less than 90 days. |
Securities | Securities The Company classifies investment securities as held to maturity ("HTM") or available for sale ("AFS"). Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and are reported at amortized cost (including amortization of premiums or accretion of discounts). Net unrealized gains and losses for debt securities classified as available for sale are recognized as increases or decreases in other comprehensive income or loss, net of taxes, and excluded from the determination of net income. Equity securities are reported at fair value with unrealized gains and losses included in net gains/losses in noninterest income. Realized gains and losses on sales of securities are determined using the specific identification method and are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Premiums and discounts on callable debt securities are amortized through the earliest call date. When the fair value of an AFS debt security has declined below its amortized cost basis, the Company is required to assess whether the decline is from a credit loss or other factor. For securities that are not guaranteed by the federal government, an analysis is performed on the individual security using the latest available information to determine if the decline in fair value is attributable to a credit loss. If such determination is made, the Company would record an allowance for credit loss for the debt instrument. As of December 31, 2023, we have recognized no credit losses on AFS securities. For HTM debt securities, an allowance will be recognized when lifetime credit losses are expected, in an amount that reflects the expected contractual credit losses, even when the risk of such loss is remote. Any security, either explicitly or implicitly guaranteed by the U.S. Government is excluded from this analysis. This includes U.S. Treasury securities, securities issued by agencies of the U.S. Government and mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac. The allowance for credit losses ("ACL") for HTM securities is computed using bond global default rates tracked by S&P with a loss given default of 45 %. Accrued interest receivable on the HTM debt securities excluded from this analysis totaled $ 42,000 at December 31, 2023. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal law requires a member institution of the Federal Home Loan Bank System to hold stock of its district Federal Home Loan Bank (the “FHLB") in an amount determined by both asset size and borrowings from the FHLB. Purchases and sales of stock are made directly with the FHLB at par value. The Bank held approximately $ 626,000 and $ 976,600 of FHLB restricted stock at December 31, 2023 and December 31, 2022, respectively. The restricted stock is carried at cost. Management evaluates whether this investment is impaired based on their assessment of the ultimate recoverability of the investment rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of the investment is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. |
Loans Receivable | Loans Receivable Loans receivable are stated at unpaid principal balances, adjusted for premiums and discounts on loans purchased, the undisbursed portion of loans in process, net deferred loan origination fees and costs, fair value adjustments on loans acquired in a merger, and the allowance for credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment to the yield of the related loans. The Company is amortizing these amounts over the contractual life of the loan using the interest method. For purchased loans, the related premium or discount is recognized over the contractual life of the purchased loan and is included as part of interest income. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on non-accrual status, unpaid interest credited to income is reversed. Interest received on non-accrual loans generally is either applied against principal or reported as interest income, according to management's judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest payments on impaired loans are recorded in the same manner as interest payments on nonaccrual loans. All of the loans acquired in connection with business combinations on the Company's balance sheet were acquired prior to the adoption of ASC 326 on January 1, 2023. The accounting for these loans is described below. Loans acquired in connection with business combinations are recorded at fair value with no carryover of any allowance for credit losses. Fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. These purchase credit impaired (“PCI”) loans are accounted for under FASB’s Accounting Standards Codification (“ASC 310-30”, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The non-accretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases in expected cash flows will require the Company to evaluate the need for an addition to the allowance for credit losses. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the non-accretable discount, which will then be reclassified as accretable discount to be recognized into interest income over the remaining life of the loan. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20, Receivables - Nonrefundable Fees and Other Costs. These loans are initially recorded at fair value, and include premiums and discounts as acquisition accounting adjustments. These purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. An allowance for credit losses is recorded for any credit deterioration in these loans subsequent to acquisition. On January 1, 2023, the Company adopted provisions of ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326)", which eliminated accounting guidance for troubled debt restructurings ("TDRs") by creditors and expanded disclosures about modifications. Prior to the effective adoption date, the Company considered loans to be TDRs if their terms were restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provided a payment concession to a borrower experiencing financial difficulty. Loans could be removed from a TDR category if the borrower no longer experienced financial difficulty, a re-underwriting event took place, and the revised loan terms of the subsequent restructuring agreement were considered to be consistent with terms that could be obtained in the market for loans with comparable credit risk. Subsequent to the effective adoption date of ASU 2022-02, the Company continues to offer modifications to certain borrowers experiencing financial difficulty, mainly in the form of interest rate concessions or term extensions, without classifying and accounting for them as TDRs. |
Allowance for Credit Losses | Allowance for Credit Losses - Loans The Allowance for Credit Losses (the "ACL") is an estimate of the expected credit losses for loans held for investment and for off-balance sheet exposures. ASC 326, " Financial Instruments-Credit Losses ," requires an immediate recognition of the credit loss expected to occur over the lifetime of a financial asset whether originated or purchased. Charge-offs are recorded to the ACL when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the ACL. Management believes the ACL is maintained in accordance with U.S. generally accepted accounting principles ("GAAP") and is in compliance with appropriate regulatory guidelines. The ACL includes quantitative estimates of losses for collectively and individually evaluated loans. The quantitative estimate for collectively evaluated loans (other than investor commercial real estate loans) is determined using the average charge-off method that utilizes historical losses for all Maryland banks with assets less than $ 1 billion beginning in March 2000. The loss history is updated through the most recent quarter-end prior to the reporting period. The investor commercial real estate portfolio utilizes the national loss history for banks with assets less than $ 1 billion over the same time period. Investor CRE loans are made nationwide, therefore, management deems it appropriate to utilize national loss rates when evaluating this portfolio. Adjustments are made to the historical loss factors under each scenario for economic conditions, portfolio concentrations, collateral values, the level and trend of delinquent and problem loans and internal changes in staffing, loan policies and monitoring of the portfolio. Loans are selected for individual evaluation primarily based on their payment status and whether the loan has been placed on non-accrual. Loans on non-accrual status include all loans greater than 90 days delinquent and other loans with weaknesses sufficient for management to place these loans on non-accrual status. The ACL is measured on a collective basis when similar risk factors exist as determined by internal loan coding and assignment to a portfolio segment. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the ACL on loans. The model's calculation also uses an adjustment for a 12-month forecast period utilizing the most recent 12-month economic forecast from the Board of Governors of the Federal Reserve System for national gross domestic product ("GDP"). The model compares the average history of loss rates described above to the forecasted GDP to determine the value of the forward looking adjustment. The establishment of the allowance for credit losses is significantly affected by management's judgment and by economic and other uncertainties, and there is a likelihood that different amounts would be reported under different conditions or assumptions. The Federal Deposit Insurance Corporation (the "FDIC") and the Maryland Office of the Commissioner of Financial Regulation, as an integral part of their examination process, periodically review the allowance for credit losses for reasonableness and, as a result of such reviews, we may be required to increase our ACL or recognize loan charge-offs. The calculation of ACL excludes accrued interest receivable balances because these balances are reversed in a timely manner against previously recognized interest income when a loan is placed on non-accrual status. |
Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposure | Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposure The Company's off-balance sheet credit instruments primarily consist of unfunded commitments on existing loans. In the ordinary course of business, the Company has entered into commitments to extend credit. Such financial instruments are recorded on the balance sheet when they are funded. The Company records a reserve for unfunded commitments on off-balance sheet credit exposures through a charge to the provision for credit loss expense. The reserve is estimated by loan segment at each measurement date under the expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in other liabilities on the Company's consolidated balance sheets. |
Mortgage Loans Held for Sale | Mortgage Loans Held for sale Mortgages originated for sale are carried at the lower of aggregate cost or fair value of each outstanding loan. Sales of loans are recorded when the proceeds are received. Any gain or loss is recorded in noninterest income. There were no mortgage loans held for sale as of December 31, 2023 and 2022. The Company occasionally sells its mortgage loans on a best effort basis to third-party investors on a servicing released basis. Upon sale and delivery, loans are legally isolated from the Company and the Company has no ability to restrict or constrain the ability of third-party investors to pledge or exchange the mortgage loans. The Company does not have the entitlement or ability to repurchase the mortgage loans or unilaterally cause third party investors to put the mortgage loans back to the Company. |
Foreclosed Real Estate | Foreclosed Real Estate Foreclosed real estate and repossessed assets are composed of property acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure. If the fair value of the asset, net of estimated selling costs, is less than the related loan balance at the time of acquisition, a charge against the allowance for credit losses is recorded. After foreclosure, valuations are periodically performed by management and the assets are carried at the lower of cost or fair value less estimated costs to sell. Revenues and expenses from operations and changes in the valuation allowance are included in noninterest income and expenses. |
Premises and Equipment | Premises and Equipment Land is stated at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed based on the straight-line method over the estimated useful lives of the respective assets. Expenditures for improvements are capitalized while costs for maintenance and repairs are expensed as incurred. |
Leases | Leases The Company determines if an arrangement is a lease at inception. All of the Company’s leases are currently classified as operating leases and are included in other assets and other liabilities on the Company’s Consolidated Balance Sheets. Periodic operating lease costs are recorded in occupancy expenses of premises on the Company's Consolidated Statements of Income. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the expected future lease payments over the remaining lease term. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating ROU assets are adjusted for any lease payments made at or before the lease commencement date, initial direct costs, any lease incentives received and, for acquired leases, any favorable or unfavorable fair value adjustments. The present value of the lease liability may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options provided in the lease terms. Lease expense is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately. |
Investment in Life Insurance | Investment in Life Insurance Investment in life insurance is reflected at the net cash surrender value to the Company. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill is evaluated for impairment at least annually. Any impairment of goodwill would be recorded against income in the period of impairment. |
Intangible Assets | Intangible Assets Intangible assets, consisting of core deposit intangibles, represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged on its own or in combination with a related contract, asset or liability. Core deposit intangibles are amortized on an accelerated basis over an estimated useful life. Core deposit intangibles are evaluated annually for impairment. Any impairment of intangible assets would be recorded against income in the period of impairment. |
Deferred Income Taxes | Deferred Income Taxes Deferred income taxes are recognized for temporary differences between the financial reporting basis and income tax basis of assets and liabilities based on enacted tax rates expected to be in effect when such amounts are realized or settled. Deferred tax assets are recognized only to the extent that it is more likely than not that such amounts will be realized based on consideration of available evidence. |
Statements of Cash Flows | Statements of Cash Flows Cash and cash equivalents in the statements of cash flows include cash, federal funds sold and interest bearing deposits in other banks. Federal funds are generally purchased and sold for one-day periods. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit. Such financial instruments are recorded in the balance sheet when they are funded. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the appropriate period. Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding as adjusted for the dilutive effect of stock options based on the treasury stock method. ESOP shares are considered outstanding for basic and diluted EPS when the shares are committed to be released. As of December 31, 2023 and December 31, 2022, the Company had 55,648 and 55,648 shares, resp ectively of unexercised stock options. Options with an exercise price greater than the average market price of the common shares are excluded from the calculation as their effect would be anti-dilutive. As of December 31, 2023 and 2022, the Company had 38,295 and 21,959 dilutive shares, respectively. The Company had no anti-dilutive shares at December 31, 2023 and 2022. Note 1 – Summary Of Significant Accounting Policies (Continued) Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period. As a result of the second step conversion, previously outstanding shares have been adjusted to reflect the 1.5309 exchange ratio. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may have been issued by the Company related to outstanding unvested restricted stock unit and performance stock unit awards were determined using the treasury stock method and included in the calculation of dilutive common stock equivalents. The Company has not granted any stock options since 2017. As of the years ended December 31, 2023, and 2022, there were no unvested restricted stock or performance stock unit awards which were excluded from the calculation as their effect would be anti-dilutive. Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: December 31, 2023 December 31, 2022 Basic Diluted Basic Diluted (dollars in thousands, except per share data) Net income $ 13,707 $ 13,707 $ 10,524 $ 10,524 Weighted average common shares outstanding 9,303 9,303 7,950 7,950 Dilutive securities stock options — 38 — 22 Adjusted weighted average shares outstanding 9,303 9,341 7,950 7,972 Earnings per share amount $ 1.47 $ 1.47 $ 1.32 $ 1.32 |
Stock Based Compensation | Stock Based Compensation The Company accounts for stock-based compensation under the fair value method of accounting. For stock options, the Company uses a Black-Scholes valuation model to measure stock-based compensation expense at the date of grant. Compensation expense related to stock-based awards is recognized over the period during which an individual is required to provide service in exchange for such award. |
Revenue Recognition | Revenue Recognition Management is required by accounting pronouncements governing the recognition of revenue which require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers”. Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. |
Recently Accounting Pronouncements and Pending Accounting Pronouncements Applicable to the Company | Recent Accounting Pronouncements On January 1, 2023 , the Company adopted Accounting Standards Updates (ASU) 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASC 326 requires entities to estimate an allowance for credit losses (ACL) on certain types of financial instruments measured at amortized cost using a current expected credit losses (CECL) methodology, replacing the previously-required incurred loss methodology. It also applies to unfunded commitments to extend credit, including loan commitments, standby letters of credit, and other similar instruments. The impairment model for held-to-maturity and available-for-sale debt securities was modified and ASC 326 also provided for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The amendments of ASC 326, upon adoption, were applied on a modified retrospective basis, by recording an increase in the reported balance of loans and the allowance for credit losses on loans, an increase in the liability for credit losses on commitments to extend credit and reducing total equity of both the Company and the Bank. As a result of adopting ASC 326, the Company recorded a decrease to retained earnings, net of taxes, of $ 547,000 . The addition to PCD loans and ACL upon adoption of ASC 326 was $ 3.8 million. ASU Update 2022-02 On January 1, 2023 , the Company adopted ASU 2022-02 – Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 eliminated the troubled debt restructurings ("TDRs") recognition and measurement guidance and, instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. In addition, ASU Update 2022-02 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases. The Company adopted ASU 2022-02 using a modified retrospective transition method for TDRs. The impact of adoption was immaterial . The disclosure amendments in the ASU 2022-02 were applied prospectively. The following table shows the impact of the Company's adoption of ASC 326 on loans, the allowance for credit losses, and the Company's reserve for unfunded commitments. January 1, 2023 As Reported Under Pre-ASC 326 (dollars in thousands) ASC 326 Adoption Change Total loans, net of deferred fees and costs $ 666,722 $ 662,944 $ 3,778 Allowance for credit losses-loans ( 8,045 ) ( 3,813 ) ( 4,232 ) Total loans, net 658,677 659,131 ( 454 ) Liabilities: Reserve for Unfunded Commitments $ 289 $ 5 $ 284 Pending Accounting Pronouncements applicable to the Company In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-7 Segment Reporting (Topic 280). The amendments in this Update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this Update: 1. Require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”). 2. Require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss. 3. Require that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. 4. Clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources , a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements. In other words, in addition to the measure that is most consistent with the measurement principles under generally accepted accounting principles (GAAP), a public entity is not precluded from reporting additional measures of a segment’s profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources . 5. Require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. 6. Require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this Update and all existing segment disclosures in Topic 280. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating this ASU and will adopt as of December 31,2024. On December 14, 2023, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this Update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this Update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). In addition, public business entities are required to provide certain qualitative disclosure about the rate reconciliation. For entities other than public business entities, the amendments in this Update require qualitative disclosure about specific categories of reconciling items and individual jurisdictions that result in a significant difference between the statutory tax rate and the effective tax rate. The amendments in this Update require that all entities disclose on an annual basis the amount of income taxes paid (net of refunds received) disaggregated (1) by federal (national), state, and foreign taxes and (2) by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). This Update also includes certain other amendments to improve the effectiveness of income tax disclosures, such as requiring that all entities disclose the following information: Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign. Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. Transition and Effective Dates For public business entities, the standard is effective for annual periods beginning after December 15, 2024. For other entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this ASU require a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets) as of the beginning of the annual reporting period in which an entity adopts the amendments. The Company is in the process of evaluating this ASU and will adopt as of December 31,2025. |
Subsequent Events | Subsequent Events The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2023 for items that should potentially be recognized or disclosed in these consolidated financial statements. This evaluation was conducted through March 13, 2024, the date these financial statements were available to be issued. On February 8, 2024, the Company reduced borrowings by paying off the $ 3.0 million Easton Capital Trust Junior Subordinated Note. See note 8 to our audited consolidated financial statement for more information regarding this debt. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | December 31, 2023 December 31, 2022 Basic Diluted Basic Diluted (dollars in thousands, except per share data) Net income $ 13,707 $ 13,707 $ 10,524 $ 10,524 Weighted average common shares outstanding 9,303 9,303 7,950 7,950 Dilutive securities stock options — 38 — 22 Adjusted weighted average shares outstanding 9,303 9,341 7,950 7,972 Earnings per share amount $ 1.47 $ 1.47 $ 1.32 $ 1.32 |
Schedule of Impact of the Adoption of Accounting Standards Update | The following table shows the impact of the Company's adoption of ASC 326 on loans, the allowance for credit losses, and the Company's reserve for unfunded commitments. January 1, 2023 As Reported Under Pre-ASC 326 (dollars in thousands) ASC 326 Adoption Change Total loans, net of deferred fees and costs $ 666,722 $ 662,944 $ 3,778 Allowance for credit losses-loans ( 8,045 ) ( 3,813 ) ( 4,232 ) Total loans, net 658,677 659,131 ( 454 ) Liabilities: Reserve for Unfunded Commitments $ 289 $ 5 $ 284 |
Merger (Tables)
Merger (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of an Acquisition Transaction | A summary of the NASB transaction during the period ended December 31, 2022 follows: ACQUISITION OF NORTH ARUNDEL SAVINGS BANK (NASB) As recorded by Fair value As recorded at NASB adjustments acquisition Fair Value of Equity Acquired $ 5,460 Cash and Cash Equivalents $ 8,521 $ — 8,521 Securities held to maturity 772 12 (a) 784 Securities available for sale 1,500 ( 36 ) (a) 1,464 Loans Receivable 34,258 ( 85 ) (b) 34,173 Allowance for Loan Loss ( 236 ) 236 (c) — Premises and equipment 258 1,017 (d) 1,275 Core deposit intangible — 85 (e) 85 Deferred Taxes 49 198 (f) 247 Other Assets 1,259 — 1,259 Total Assets Acquired 46,381 1,427 47,808 Liabilities assumed Deposits 40,321 439 (g) 40,760 Advance payments by borrowers for taxes and insurance 121 — 121 Accrued Expenses and other liabilities 127 — 127 Total liabilities assumed $ 40,569 $ 439 $ 41,008 Net assets acquired 6,800 Bargain purchase gain recorded at merger $ 1,340 (a) Represents the fair value adjustments to the investment securities at the acquisition date. (b) Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment which will be amortized over the remaining life of the loans. (c) Represents the elimination of the NASB allowance for loan loss. (d) Represents the fair value adjustments to reflect fair value of land and buildings which will be amortized on a straight line-basis over the estimated useful lives of the assets. (e) Represents the intangible asset recorded to reflect the fair value of core deposits. The core deposit asset was recorded as an identified intangible asset and will be amortized on a straight-line basis over ten years. (f) Represents the deferred tax asset resulting from the fair value adjustments related to the acquired assets, liabilities assumed, identified intangibles recorded and for the net operating loss carry forward for NASB. (g) Represents fair value adjustments on time deposits, which will be treated as a reduction in interest expense over the remaining life of the time deposits. |
Summary of Details of Acquired Loans | The following table details the acquired loans as of January 1, 2022: Contractually required principal at acquisition $ 34,258 Contractual cash flows not expected to be collected (credit mark) ( 394 ) Expected cash flows at acquisition 33,863 Interest component of expected cash flows (accretable premium) 309 Fair value of acquired loans $ 34,173 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available for Sale Securities | Securities available for sale at December 31, 2023 and December 31, 2022 consisted of the following: December 31, 2023 (dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available for sale Agencies $ 4,728 $ — $ 5 $ 4,723 Corporate securities 1,722 — 304 1,418 Mortgage-backed securities 31,032 5 2,397 28,640 Total $ 37,482 $ 5 $ 2,706 $ 34,781 December 31, 2022 (dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available for sale Corporate securities $ 2,218 $ — $ 286 $ 1,932 Mortgage-backed securities 34,045 — 2,943 31,102 Total $ 36,263 $ — $ 3,229 $ 33,034 |
Schedule of Securities Held to Maturity | Securities held to maturity at December 31, 2023 and December 31, 2022 consisted of the following: December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Held to maturity Corporate securities (1) $ 3,194 $ — $ 570 $ 2,624 Agencies 4,003 — 22 3,981 Mortgage-backed securities 3,012 3 414 2,601 Total $ 10,209 $ 3 $ 1,006 $ 9,206 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Held to maturity Corporate securities $ 3,200 $ — $ 408 $ 2,792 Agencies 4,009 — 25 3,984 Mortgage-backed securities 3,252 3 371 2,884 Total $ 10,461 $ 3 $ 804 $ 9,660 (1) Amount is net of CECL credit reserve of $ 6,000 at December 31, 2023. |
Schedule of Contractual Maturities Securities | The amortized cost and fair value of securities as of December 31, 2023 and December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without prepayment penalties. December 31, 2023 Available for sale Held to maturity Amortized Fair Amortized Fair (dollars in thousands) cost value cost value Maturing Due under one year $ 8,156 $ 8,053 $ 4,003 $ 3,981 Due after one year through five years 4,605 4,478 25 24 Due after five years through ten years 7,788 7,350 3,745 3,138 Due after ten years 16,933 14,900 2,436 2,063 Total $ 37,482 $ 34,781 $ 10,209 $ 9,206 December 31, 2022 Available for sale Held to maturity Amortized Fair Amortized Fair (dollars in thousands) cost value cost value Maturing Due under one year $ 509 $ 502 $ — $ — Due after one year through five years 9,986 9,477 4,042 4,015 Due after five years through ten years 9,160 8,631 3,840 3,383 Due after ten years 16,608 14,424 2,579 2,262 Total $ 36,263 $ 33,034 $ 10,461 $ 9,660 |
Schedule of Investment Securities with Unrealized Loss | Investment securities with unrealized losses for continuous periods of less than 12 months and 12 months or longer are as follows: Less than 12 months Over 12 months Total Unrealized Fair Unrealized Fair Unrealized Fair December 31, 2023 losses value losses value losses value (dollars in thousands) Available for sale Corporate securities $ 83 $ 667 $ 221 $ 751 $ 304 $ 1,418 Agency securities 5 4,723 — — 5 4,723 Mortgage-backed securities 1 478 2,396 26,152 2,397 26,630 Total $ 89 $ 5,868 $ 2,617 $ 26,903 $ 2,706 $ 32,771 Held to maturity Corporate securities $ — $ — $ 570 $ 2,624 $ 570 $ 2,624 Agency securities — — 22 3,981 22 3,981 Mortgage-backed securities — 14 414 2,482 414 2,496 Total $ — $ 14 $ 1,006 $ 9,087 $ 1,006 $ 9,101 Less than 12 months Over 12 months Total Unrealized Fair Unrealized Fair Unrealized Fair December 31, 2022 losses value losses value losses value (dollars in thousands) Available for sale Corporate securities $ 286 $ 1,182 $ — $ — $ 286 $ 1,182 Mortgage-backed securities 535 10,595 2,408 20,400 2,943 30,995 Total $ 821 $ 11,777 $ 2,408 $ 20,400 $ 3,229 $ 32,177 Held to maturity Corporate securities $ 244 $ 1,706 $ 164 $ 1,086 $ 408 $ 2,792 Agency securities 25 3,984 — — 25 3,984 Mortgage-backed securities 371 2,811 — — 371 2,811 Total $ 640 $ 8,501 $ 164 $ 1,086 $ 804 $ 9,587 |
Schedule of Credit Ratings of HTM Debt Securities | We monitor the credit quality of held-to-maturity ("HTM") debt securities through both internal analysis performed on a quarterly basis and credit ratings when available. The following table reflects the credit ratings for the HTM debt securities at December 31, 2023. (dollars in thousands) AAA A- BBB/BBB+ BBB- Not Rated Total Corporate securities $ — $ 499 $ 1,248 $ 699 $ 748 $ 3,194 Agency securities 4,003 — — — — 4,003 Mortgage-backed securities 3,012 — — — — 3,012 $ 7,015 $ 499 $ 1,248 $ 699 $ 748 $ 10,209 The following table provides a breakdown of our HTM debt securities by year of origination at December 31, 2023. (dollars in thousands) Total 2023 2022 2021 2020 2019 Prior Corporate securities $ 3,194 $ — $ 749 $ 2,445 $ — $ — $ — Agency securities 4,003 — 4,003 — — — — Mortgage-backed securities issued by GSEs and Ginnie Mae 3,012 — 1,824 146 — — 1,042 $ 10,209 $ — $ 6,576 $ 2,591 $ — $ — $ 1,042 |
Summary of Allowance for Credit Losses on HTM Debt Securities | The following table is a roll forward of our allowance for credit losses on HTM debt securities at December 31, 2023. (dollars in thousands) December 31, 2023 Beginning Balance $ — Impact of adopting ASC 326 10 (Recovery) for credit losses ( 4 ) Ending Balance $ 6 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Portfolio Loans, Net of Deferred Costs and Fees | Portfolio loans, net of deferred costs and fees, are summarized by type as follows at December 31, 2023 and December 31, 2022: Period Ended December 31, 2023 December 31, 2022 (dollars in thousands) Amount Percent Amount Percent Real estate One to four family - owner occupied $ 130,026 18.45 % $ 137,742 20.73 % One to four family - non owner occupied 108,090 15.34 % 125,065 18.82 % Commercial owner occupied 102,512 14.54 % 91,853 13.82 % Commercial investor 287,194 40.76 % 226,854 34.14 % Construction and land 21,865 3.10 % 17,937 2.70 % Farm loans 14,877 2.11 % 13,823 2.08 % Total real estate loans 664,564 94.30 % 613,274 92.29 % Marine loans 16,386 2.32 % 15,791 2.38 % Other consumer 1,893 0.27 % 2,361 0.36 % Guaranteed by U.S. Government 3,715 0.53 % 4,933 0.74 % Commercial 18,244 2.58 % 28,052 4.23 % Total consumer and commercial 40,238 5.70 % 51,137 7.71 % Total loans 704,802 100.0 % 664,411 100.0 % Less: Deferred origination fees, net — ( 1,467 ) Allowance for credit losses ( 8,554 ) ( 3,813 ) Total loans, net of deferred costs and fees $ 696,248 $ 659,131 |
Summary of Detail Activity in Allowance for Credit Losses-Loans | A summary of transactions in the allowance for credit losses-loans during the year ended December 31, 2023 follows: Year Ended December 31, 2023 (dollars in thousands) Beginning Balance Impact of ASC 326 Adoption Charge-offs Recoveries Provisions (recovery) Ending Balance Real estate One to four family - owner occupied $ 344 $ 1,117 $ ( 2 ) $ 64 $ 205 $ 1,728 One to four family - non owner occupied 562 356 — 305 ( 193 ) 1,030 Commercial owner occupied 366 78 ( 3 ) — 122 563 Commercial investor 2,272 1,506 — — ( 53 ) 3,725 Construction and land 93 496 — 154 29 772 Farm loans 17 135 — — 27 179 Total real estate loans 3,654 3,688 ( 5 ) 523 137 7,997 Marine and other consumer loans 68 336 ( 80 ) 26 53 403 Guaranteed by U.S. Government — — — — — — Commercial 91 208 — 3 ( 148 ) 154 Total consumer and commercial 159 544 ( 80 ) 29 ( 95 ) 557 Total loans $ 3,813 $ 4,232 $ ( 85 ) $ 552 $ 42 $ 8,554 Note 4 – Loans Receivable (Continued) The following table summarized the ACL activity for the year ended December 31, 2023. (dollars in thousands) Provision for credit losses - loans $ 42 Reduction in allowance for securities - HTM ( 4 ) Reduction in allowance for credit losses - unfunded commitments ( 83 ) Provision for (recovery of) credit losses per the Consolidated Statement of Income $ ( 45 ) A summary of transactions in the allowance for loan losses during the year ended December 31, 2022 follows: Year Ended December 31, 2022 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions (recovery) Ending Balance Real estate One to four family - owner occupied $ 258 $ ( 7 ) $ 43 $ 50 $ 344 One to four family - non owner occupied 695 — 87 ( 220 ) 562 Commercial owner occupied 280 — — 86 366 Commercial investor 1,225 ( 10 ) — 1,057 2,272 Construction and land 93 — 19 ( 19 ) 93 Farm loans 2 — — 15 17 Total real estate loans 2,553 ( 17 ) 149 969 3,654 Marine loans 48 — — 15 63 Other consumer 20 ( 39 ) 15 9 5 Commercial 45 — 1 45 91 Total consumer and commercial 113 ( 39 ) 16 69 159 Total loans $ 2,666 $ ( 56 ) $ 165 $ 1,038 $ 3,813 |
Schedule of Term Loan by Origination Year | The following table presents the credit risk profile by risk grade by origination year as of December 31, 2023. (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total One to four family - owner occupied Pass $ 6,387 $ 7,906 $ 13,727 $ 9,974 $ 9,707 $ 71,463 $ 10,492 $ 129,656 Special Mention — — — — — — — — Substandard — — — — — 331 39 370 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - owner occupied $ 6,387 $ 7,906 $ 13,727 $ 9,974 $ 9,707 $ 71,794 $ 10,531 $ 130,026 Current Period Gross Write-off $ — $ — $ — $ — $ — $ ( 2 ) $ — $ ( 2 ) One to four family - non owner occupied Pass $ 13,810 $ 30,603 $ 20,582 $ 10,742 $ 7,611 $ 22,795 $ — $ 106,143 Special Mention — — — — — — — — Substandard — — — — — 1,947 — 1,947 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - non owner occupied $ 13,810 $ 30,603 $ 20,582 $ 10,742 $ 7,611 $ 24,742 $ — $ 108,090 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Commercial owner occupied Pass $ 20,967 $ 16,071 $ 16,642 $ 5,998 $ 5,071 $ 31,536 $ — $ 96,285 Special Mention — — — — — — — — Substandard — — — 943 1,502 3,782 — 6,227 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial owner occupied $ 20,967 $ 16,071 $ 16,642 $ 6,941 $ 6,573 $ 35,318 $ — $ 102,512 Current Period Gross Write-off $ — $ — $ — $ — $ — $ ( 3 ) $ — $ ( 3 ) Commercial investor Pass $ 68,682 $ 89,812 $ 65,624 $ 16,205 $ 9,991 $ 28,823 $ — $ 279,137 Special Mention — — — — — — — — Substandard — — — 6,907 — 1,150 — 8,057 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial investor $ 68,682 $ 89,812 $ 65,624 $ 23,112 $ 9,991 $ 29,973 $ — $ 287,194 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Construction and land Pass $ 6,901 $ 9,650 $ 2,271 $ 650 $ — $ 704 $ — $ 20,176 Special Mention — — — — — — — — Substandard — — — 1,400 — 289 — 1,689 Doubtful — — — — — — — — Loss — — — — — — — — Total Construction and land $ 6,901 $ 9,650 $ 2,271 $ 2,050 $ — $ 993 $ — $ 21,865 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Farm loans Pass $ — $ 4,141 $ 2,281 $ 261 $ 2,641 $ 5,553 $ — $ 14,877 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Farm loans $ — $ 4,141 $ 2,281 $ 261 $ 2,641 $ 5,553 $ — $ 14,877 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Marine loans Pass $ 3,227 $ 2,044 $ 6,293 $ 1,751 $ 207 $ 2,864 $ — $ 16,386 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Marine loans $ 3,227 $ 2,044 $ 6,293 $ 1,751 $ 207 $ 2,864 $ — $ 16,386 Current Period Gross Write-off $ — $ — $ — $ — $ — $ ( 58 ) $ — $ ( 58 ) Other consumer Pass $ 315 $ 143 $ 124 $ 37 $ 189 $ 1,081 $ — $ 1,889 Special Mention — — — — — — — — Substandard — — — — — 4 — 4 Doubtful — — — — — — — — Loss — — — — — — — — Total Other consumer $ 315 $ 143 $ 124 $ 37 $ 189 $ 1,085 $ — $ 1,893 Current Period Gross Write-off $ — $ — $ — $ — $ — $ ( 22 ) $ — $ ( 22 ) Guaranteed by U.S. Government Pass $ — $ - $ — $ 26 $ 417 $ 3,272 $ — $ 3,715 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Guaranteed by U.S. Government $ — $ — $ — $ 26 $ 417 $ 3,272 $ — $ 3,715 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 501 $ 4,299 $ 6,236 $ 2,000 $ 628 $ 3,483 $ — $ 17,147 Special Mention — 400 — — — — — 400 Substandard — — — — — 697 — 697 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial $ 501 $ 4,699 $ 6,236 $ 2,000 $ 628 $ 4,180 $ — $ 18,244 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Total Loans Pass $ 120,790 $ 164,669 $ 133,780 $ 47,644 $ 36,462 $ 171,574 $ 10,492 $ 685,411 Special Mention — 400 — — — — — 400 Substandard — — — 9,250 1,502 8,200 39 18,991 Doubtful — — — — — — — — Loss — — — — — — — — Total loans $ 120,790 $ 165,069 $ 133,780 $ 56,894 $ 37,964 $ 179,774 $ 10,531 $ 704,802 (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total One to four family - owner occupied Pass $ 7,009 $ 14,907 $ 10,742 $ 10,708 $ 8,285 $ 73,585 $ 11,674 $ 136,910 Special Mention — — — — — — — — Substandard — — — — — 783 49 832 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - owner occupied $ 7,009 $ 14,907 $ 10,742 $ 10,708 $ 8,285 $ 74,368 $ 11,723 $ 137,742 Current Period Gross Write-Off $ ( 7 ) $ ( 7 ) One to four family - non owner occupied Pass $ 45,369 $ 27,088 $ 12,325 $ 7,337 $ 5,224 $ 23,369 $ — $ 120,712 Special Mention — — — — — — — — Substandard — — — 1,598 853 1,902 — 4,353 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - non owner occupied $ 45,369 $ 27,088 $ 12,325 $ 8,935 $ 6,077 $ 25,271 $ — $ 125,065 Current Period Gross Write-Off Commercial owner occupied Pass $ 17,678 $ 17,244 $ 6,299 $ 5,590 $ 11,502 $ 25,610 $ — $ 83,923 Special Mention — — — — — — — — Substandard — — 979 1,534 936 4,481 — 7,930 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial owner occupied $ 17,678 $ 17,244 $ 7,278 $ 7,124 $ 12,438 $ 30,091 $ — $ 91,853 Current Period Gross Write-Off Commercial investor Pass $ 83,975 $ 74,933 $ 24,133 $ 11,369 $ 3,500 $ 22,186 $ — $ 220,096 Special Mention — — — — — — — — Substandard — — — — 4,836 1,922 — 6,758 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial investor $ 83,975 $ 74,933 $ 24,133 $ 11,369 $ 8,336 $ 24,108 $ — $ 226,854 Current Period Gross Write-Off Construction and land Pass $ 10,135 $ 3,338 $ 1,376 $ 77 $ — $ 986 $ — $ 15,912 Special Mention — — — — — — — — Substandard — — 1,598 160 — 267 — 2,025 Doubtful — — — — — — — — Loss — — — — — — — — Total Construction and land $ 10,135 $ 3,338 $ 2,974 $ 237 $ — $ 1,253 $ — $ 17,937 Current Period Gross Write-Off Farm loans Pass $ 4,165 $ 657 $ 266 $ 2,752 $ 455 $ 5,528 $ — $ 13,823 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Farm loans $ 4,165 $ 657 $ 266 $ 2,752 $ 455 $ 5,528 $ — $ 13,823 Current Period Gross Write-Off Marine loans Pass $ 2,486 $ 7,413 $ 2,028 $ 223 $ 1,145 $ 2,437 $ — $ 15,732 Special Mention — — — — — — — — Substandard — — — — — 59 — 59 Doubtful — — — — — — — — Loss — — — — — — — — Total Marine loans $ 2,486 $ 7,413 $ 2,028 $ 223 $ 1,145 $ 2,496 $ — $ 15,791 Current Period Gross Write-Off Other consumer Pass $ 495 $ 212 $ 78 $ 216 $ 9 $ 1,329 $ — $ 2,339 Special Mention — — — — — — — — Substandard — — — — — 22 — 22 Doubtful — — — — — — — — Loss — — — — — — — — Total Other consumer $ 495 $ 212 $ 78 $ 216 $ 9 $ 1,351 $ — $ 2,361 Current Period Gross Write-Off $ ( 38 ) $ ( 38 ) Guaranteed by U.S. Government Pass $ — $ 304 $ 175 $ 525 $ 840 $ 3,089 $ — $ 4,933 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Guaranteed by U.S. Government $ — $ 304 $ 175 $ 525 $ 840 $ 3,089 $ — $ 4,933 Current Period Gross Write-Off Commercial Pass $ 10,301 $ 6,885 $ 5,116 $ 1,225 $ 1,798 $ 2,282 $ — $ 27,607 Special Mention — — — — — — — — Substandard — — — — — 445 — 445 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial $ 10,301 $ 6,885 $ 5,116 $ 1,225 $ 1,798 $ 2,727 $ — $ 28,052 Current Period Gross Write-Off $ ( 2 ) $ ( 8 ) $ ( 10 ) (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total Total Loans Pass $ 181,613 $ 152,981 $ 62,538 $ 40,022 $ 32,758 $ 160,401 $ 11,674 $ 641,987 Special Mention — — — — — — — — Substandard — — 2,577 3,292 6,625 9,881 49 22,424 Doubtful — — — — — — — — Loss — — — — — — — — Total loans $ 181,613 $ 152,981 $ 65,115 $ 43,314 $ 39,383 $ 170,282 $ 11,723 $ 664,411 |
Schedule of Amortized Cost Basis of Collateral Dependent Loans | The following table presents the amortized cost basis of collateral dependent loans by class of loans at December 31, 2023: Estimated Collateral Values Estimated Collateral Values (dollars in thousands) Real Estate Real Estate Business\Other Assets Business\Other Assets One to four family - owner occupied $ 1,160 $ 4,321 $ — $ — One to four family - non-owner occupied 273 648 — — Commercial owner occupied real estate 739 1,825 — — Commercial investor real estate 8,057 10,070 — — Construction and land 321 826 — — Other consumer — — 4 25 Total $ 10,550 $ 17,690 $ 4 $ 25 |
Schedule of BEFD Modifications Included in Individually Assessed Loan | BEFD modifications included in the individually assessed loan schedules above, as of December 31, 2023 are as follows: (dollars in thousands) Number of Loans Amortized Cost One to four family - owner occupied 3 $ 251 One to four family - non owner occupied 1 130 Commercial investor real estate 1 1,150 Total accrual BEFD modification loans 5 $ 1,531 Modifications on non-accrual 1 $ 1,150 |
Schedule of Loans Made to Borrowers Experiencing Financial Difficulty Amortized Cost Basis | The following table details the amortized cost basis at the end of the reporting period for loans made to borrowers experiencing financial difficulty as of December 31, 2023. Year Ended December 31, 2023 (dollars in thousands) Term Extensions Payment Deferral and Term Extensions Total Percentage of Total Loans One to four family - owner occupied $ 251 $ — $ 251 0.04 % One to four family - non-owner occupied 130 — 130 0.02 % Commercial investor real estate 1,150 — 1,150 0.16 % Total $ 1,531 $ — $ 1,531 0.22 % |
Schedule of Financing Receivables Loan Portfolio | The following table summarizes the classification of the loan portfolio at December 31, 2023: December 31, 2023 (dollars in thousands) Pass Special Substandard Doubtful Total Real estate One to four family - owner occupied $ 129,656 $ — $ 370 $ — $ 130,026 One to four family - non-owner occupied 106,143 — 1,947 — 108,090 Commercial owner occupied 96,285 — 6,227 — 102,512 Commercial investor 279,137 — 8,057 — 287,194 Construction and land 20,176 — 1,689 — 21,865 Farm loans 14,877 — — — 14,877 Total real estate loans 646,274 — 18,290 — 664,564 Marine loans 16,386 — — — 16,386 Other consumer 1,889 — 4 — 1,893 Guaranteed by the U.S. government 3,715 — — — 3,715 Commercial 17,147 400 697 — 18,244 Total consumer and commercial 39,137 400 701 — 40,238 Total loans $ 685,411 $ 400 $ 18,991 $ — $ 704,802 Note 4 – Loans Receivable (Continued) The following table summarizes classification of the gross loan portfolio at December 31, 2022: December 31, 2022 (dollars in thousands) Pass Special Substandard Doubtful Total Real estate One to four family - owner occupied $ 136,910 $ — $ 832 $ — $ 137,742 One to four family - non-owner occupied 120,712 — 4,353 — 125,065 Commercial owner occupied 83,923 — 7,930 — 91,853 Commercial investor 220,096 — 6,758 — 226,854 Construction and land 15,912 — 2,025 — 17,937 Farm loans 13,823 — — — 13,823 Total real estate loans 591,376 — 21,898 — 613,274 Marine loans 15,732 — 59 — 15,791 Other consumer 2,339 — 22 — 2,361 Guaranteed by the U.S. government 4,933 — — — 4,933 Commercial 27,607 — 445 — 28,052 Total consumer and commercial 50,611 — 526 — 51,137 Total loans $ 641,987 $ — $ 22,424 $ — $ 664,411 |
Schedule of Loan Portfolio Delinquencies | The following tables set forth certain information with respect to our loan portfolio delinquencies by loan class : December 31, 2023 30 - 59 60 - 89 90+ Days Days Days Total Current Total (dollars in thousands) Past Due Past Due Past Due Past Due Loans Loans Real estate One to four family - owner occupied $ 2,043 $ 645 $ 619 $ 3,307 $ 126,719 $ 130,026 One to four family - non owner occupied 322 — 219 541 107,549 108,090 Commercial owner occupied 901 — 468 1,369 101,143 102,512 Commercial investor 371 — 6,907 7,278 279,916 287,194 Construction and land 826 — 258 1,084 20,781 21,865 Farm loans — — — — 14,877 14,877 Total real estate loans 4,463 645 8,471 13,579 650,985 664,564 Marine loans — — — — 16,386 16,386 Other consumer 39 — — 39 1,854 1,893 Guaranteed by U.S. Government — — — — 3,715 3,715 Commercial — 401 — 401 17,843 18,244 Total consumer and commercial loans 39 401 — 440 39,798 40,238 Total loans $ 4,502 $ 1,046 $ 8,471 $ 14,019 $ 690,783 $ 704,802 All loans past due 90 or more days have been placed on non-accrual. December 31, 2022 30 - 59 60 - 89 90+ Days Days Days Total Current Total (dollars in thousands) Past Due Past Due Past Due Past Due Loans Loans Real estate One to four family - owner occupied $ 2,311 $ 793 $ 896 $ 4,000 $ 133,742 $ 137,742 One to four family - non owner occupied 777 170 379 1,326 123,739 125,065 Commercial owner occupied 1,048 103 2,056 3,207 88,646 91,853 Commercial investor 310 — 1,433 1,743 225,111 226,854 Construction and land — 43 160 203 17,734 17,937 Farm loans — — — — 13,823 13,823 Total real estate loans 4,446 1,109 4,924 10,479 602,795 613,274 Marine loans — — 59 59 15,732 15,791 Other consumer 65 — — 65 2,296 2,361 Guaranteed by U.S. Government — — — — 4,933 4,933 Commercial — — — — 28,052 28,052 Total consumer and commercial loans 65 — 59 124 51,013 51,137 Total loans $ 4,511 $ 1,109 $ 4,983 $ 10,603 $ 653,808 $ 664,411 |
Schedule of Non-accrual Loans | The following is a summary of non-accrual loans by class as of the dates indicated: December 31, 2023 December 31, 2022 No With an No With an (dollars in thousands) Allowance Allowance Total Allowance Allowance Total Real estate One to four family - owner occupied $ 1,160 $ — $ 1,160 $ 1,371 $ — $ 1,371 One to four family - non owner occupied 273 — 273 585 — 585 Commercial owner occupied 739 — 739 2,167 — 2,167 Commercial investor 8,057 — 8,057 1,433 — 1,433 Construction and land 321 — 321 247 — 247 Farm loans — — — — — — Total real estate loans 10,550 — 10,550 5,803 — 5,803 Marine loans — — — 59 — 59 Other consumer 4 — 4 22 — 22 Total consumer and commercial loans 4 — 4 81 — 81 Total nonaccrual loans $ 10,554 $ — $ 10,554 $ 5,884 $ — $ 5,884 |
Summary of Impaired Loans by Class of Loans | The following is a summary of impaired loans by class of loans as of December 31, 2022: Recorded Unpaid Related Average Interest With an allowance recorded Real estate loans One to four family - owner occupied $ 100 $ 100 $ 28 $ 103 $ 4 One to four family - non-owner occupied 70 70 2 71 4 Total 170 170 30 174 8 With no allowance recorded Real estate loans One to four family - owner occupied 1,956 1,956 — 2,789 93 One to four family - non-owner occupied 585 585 — 632 39 Commercial owner occupied 1,854 1,854 — 1,406 77 Commercial investor 1,432 1,432 — 1,889 99 Construction and land 248 248 — 203 26 Marine Loans 59 59 — 15 3 Other consumer 45 49 — 56 7 Guaranteed by the U.S. Government — — — 15 — Commercial — — — 2 — Total 6,179 6,183 — 7,006 344 Combined Real estate loans One to four family - owner occupied 2,056 2,056 28 2,892 97 One to four family - non-owner occupied 655 655 2 703 43 Commercial owner occupied 1,854 1,854 — 1,406 77 Commercial investor 1,432 1,432 — 1,889 99 Construction and land 248 248 — 203 26 Marine Loans 59 59 — 15 3 Other consumer 45 49 — 56 7 Guaranteed by the U.S. Government — — — 15 — Commercial — — — 2 — Total $ 6,349 $ 6,353 $ 30 $ 7,180 $ 352 |
Schedule of TDRs and BEFD Modifications Included in Individually Assessed Loan | The status of TDRs as of December 31, 2022 follows: December 31, 2022 Number of recorded investment contracts Performing Nonperforming Total (amounts in thousands) Real estate loans One to four family - owner occupied 8 $ 559 $ 256 $ 815 One to four family - non-owner occupied 1 70 — 70 Commercial owner occupied real estate 2 320 — 320 Commercial investor real estate 1 205 — 205 Other Consumer 1 23 — 23 13 $ 1,177 $ 256 $ 1,433 The following TDRs were modified during the year ended December 31, 2022: December 31, 2022 Number of recorded investment contracts Performing Nonperforming Total (amounts in thousands) Real estate loans 'One to four family - owner occupied 1 $ 29 $ — $ 29 1 $ 29 $ — $ 29 |
Schedule of Non-Accretable Yield | The following table presents changes in the non-accretable yield for PCI loans for the years ended December 31: (dollars in thousands) 2022 Balance at January 1 $ 1,440 From acquisitions — Accretion ( 190 ) Balance at December 31, $ 1,250 |
Summary of Outstanding Balances and Related Carrying Amounts For Purchased Credit Impaired Loans | The following table presents the outstanding balances and related carrying amounts for all purchased credit impaired loans at the end of the respective periods: (dollars in thousands) Contractually Carrying At December 31, 2022 $ 6,354 $ 5,104 |
Summary of Commitments To Extend Credit | Amounts representing credit risk December 31, 2023 December 31, 2022 (dollars in thousands) Available lines of credit $ 49,371 $ 66,166 Letters of credit 935 978 Total $ 50,306 $ 67,144 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment at December 31, 2023 and December 31, 2022 are summarized by major classification as follows: Useful life in years December 31, 2023 December 31, 2022 (dollars in thousands) Land — $ 3,510 $ 3,706 Buildings 15 - 40 12,289 12,364 Leasehold improvements 5 - 10 317 306 Furniture, fixtures, and equipment 3 - 10 3,027 2,879 Premises and equipment, gross 19,143 19,255 Accumulated depreciation ( 4,893 ) ( 4,079 ) Premises and equipment, net of accumulated depreciation $ 14,250 $ 15,176 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Activity in Acquired Intangible Assets | The activity in core deposit intangible assets related to the mergers for the years ended December 31, 2023 and ended December 31, 2022 is as follows: December 31, 2023 December 31, 2022 (dollars in thousands) Net carrying amount at beginning of period $ 1,195 $ 1,293 Core deposit intangible from the mergers — 85 Amortization ( 183 ) ( 183 ) Net carrying amount at end of the period $ 1,012 $ 1,195 |
Schedule of Estimated Amortization Expense | At December 31, 2023 future estimated annual amortization expense is as follows: Year ending (in thousands) 2024 $ 180 2025 180 2026 180 2027 180 2028 180 Thereafter 112 Total Estimated Amortization Expense $ 1,012 |
Schedule of Goodwill | Goodwill and other intangible assets are presented in the tables below. December 31, 2023 December 31, 2022 Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net Core deposit intangible $ 1,868 $ 856 $ 1,012 $ 1,868 $ 673 $ 1,195 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits, by Type [Abstract] | |
Schedule Of Deposits | Deposits are summarized as follows: At December 31, 2023 2022 Amount Percent Amount Percent (dollars in thousands) Noninterest-bearing checking accounts $ 142,030 22.40 % $ 167,202 24.42 % Interest-bearing checking accounts 83,656 13.19 % 96,829 14.14 % Money market accounts 87,310 13.77 % 102,301 14.94 % Savings accounts 147,608 23.28 % 171,772 25.09 % Certificates of deposit 173,516 27.36 % 146,514 21.41 % Total deposits $ 634,120 100.00 % $ 684,618 100.00 % |
Scheduled of Contractual Maturities of Certificates of Deposit | At December 31, 2023 scheduled maturities of certificates of deposit are as follows: Year ending December 31, (dollars in thousands) 2024 $ 111,396 2025 43,874 2026 5,097 2027 7,377 2028 5,772 Thereafter — Total certificates of deposit $ 173,516 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | A summary of the Company’s borrowings at December 31 for the years indicated is as follows: 2023 2022 (dollars in thousands) Maturity Balance Rate Balance Rate Federal Home Loan Bank Advance 2023 $ — $ 12,000 4.58 % BV Financial Inc. Series 2020 Notes 2030 35,000 4.88 % 35,000 4.88 % Easton Capital Trust I 2034 3,093 SOFR+ 2.85 % 3,093 LIBOR+ 2.85 % Total borrowings, gross $ 38,093 $ 50,093 Less: debt issuance costs ( 272 ) ( 427 ) Add: net fair value adjustments on acquired borrowings ( 570 ) ( 627 ) Total borrowings, net $ 37,251 $ 49,039 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Employee Options Outstanding and Stock Options Outstanding | Information with respect to employee options outstanding during the years ended December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 Weighted Weighted average average exercise exercise Shares price Shares price Outstanding at beginning of period 55,648 $ 5.65 60,624 $ 5.65 Granted — — — — Exercised — — 4,976 5.65 Expired/cancelled/forfeited — — — — Outstanding at end of period 55,648 $ 5.65 55,648 $ 5.65 Exercisable at end of period 55,648 $ 5.65 55,648 $ 5.65 For December 31, 2022, the options granted, outstanding and exercised have been adjusted for the 1.5309 conversion ratio utilized in the conversion of the Company from a Mutual Holding Company A summary of information about stock options outstanding is as follows at December 31, 2023 and December 31, 2022: Weighted average Outstanding Remaining Exercisable exercise price shares life (years) shares Outstanding at beginning of period $ 5.65 55,648 5.0 55,648 55,648 55,648 Intrinsic value on December 31, 2023 $ 474,677 $ 594,323 Weighted average Outstanding Remaining Exercisable exercise price shares life (years) shares Outstanding at beginning of period $ 5.65 55,648 4.0 55,648 55,648 55,648 Intrinsic value on December 31, 2022 $ 594,323 $ 594,323 |
Summary of Restricted Stock Activity | Weighted Number of Average Grant Common Date Fair Shares Value/Share Restricted Stock at January 1, 2023 31,083 $ 13.15 Granted 18,784 14.67 Vested ( 19,747 ) 14.63 Forfeited — — Restricted Stock at December 31, 2023 30,120 14.30 Restricted shares outstanding and exercised have been adjusted for the 1.5309 conversion ratio utilized in the conversion of the Company from a Mutual Holding Company Weighted Number of Average Grant Common Date Fair Shares Value/Share Restricted Stock at January 1, 2022 21,586 $ 11.80 Granted 22,718 14.10 Vested ( 13,221 ) 12.59 Forfeited — — Restricted Stock at December 31, 2022 31,083 13.15 |
Summary of Share Information Held by the ESOP | The following table presents share information held by the ESOP: (amounts in thousands, except fair value of unallocated shares) 2023 2022 Allocated shares — — Shares committed to be released 39,196 — Unallocated shares (suspense shares) 744,722 — Total shares 783,918 — Fair value of unallocated shares $ 10,560,158 $ — |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements | To be well capitalized under For capital prompt corrective Actual adequacy purposes action provisions December 31, 2023 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Tier 1 Leverage ratio $ 162,125 18.50 % $ 35,055 4.00 % $ 43,819 5.00 % Tier 1 capital (to risk-weighted assets) $ 162,125 24.00 % $ 40,523 6.00 % $ 54,031 8.00 % Common Equity Tier 1 Capital Ratio (to risk-weighted assets) $ 162,125 24.00 % $ 30,393 4.50 % $ 43,900 6.50 % Total Capital ratio (to risk-weighted assets) $ 170,571 25.26 % $ 54,031 8.00 % $ 67,539 10.00 % December 31, 2022 Tier 1 Leverage ratio $ 109,939 13.39 % $ 32,845 4.00 % $ 41,057 5.00 % Tier 1 capital (to risk-weighted assets) $ 109,939 16.76 % $ 39,361 8.50 % $ 52,482 8.00 % Common Equity Tier 1 Capital Ratio (to risk-weighted assets) $ 109,939 16.76 % $ 29,521 7.00 % $ 42,642 6.50 % Total Capital ratio (to risk-weighted assets) $ 113,757 17.34 % $ 52,482 10.50 % $ 65,602 10.00 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The income tax provision consisted of the following for the years ended December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 (dollars in thousands) Current expense Federal $ 3,185 $ 2,466 State 1,523 1,255 Total Current Expense 4,708 3,721 Deferred expense 207 308 Income tax expense $ 4,915 $ 4,029 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2023 and December 31, 2022 are presented below: December 31, 2023 December 31, 2022 (dollars in thousands) Deferred tax assets Deferred compensation $ 689 $ 715 Allowance for credit losses 2,425 1,061 Merger fair value adjustments 1,587 2,497 Goodwill impairment — — Foreclosed real estate write-downs and deferred gain 7 273 Stock grants 78 — Net operating loss carryover 6,556 7,011 Non-accrual interest 260 66 Other 1,377 1,526 Total deferred tax assets 12,979 13,149 Deferred tax liabilities Prepaid expenses 220 145 Core deposit intangible 278 329 Depreciation 3,512 3,562 Total deferred tax liabilities 4,010 4,036 Total deferred tax assets, net $ 8,969 $ 9,113 |
Schedule of Effective Income Tax Rate Reconciliation | The amount computed by applying the statutory federal income tax rate to income before income tax provision is different than the taxes provided for the following reasons: December 31, 2023 December 31, 2022 Percent of Percent of Amount pretax income Amount pretax income (dollars in thousands) Statutory federal income tax rate $ 3,909 21.0 % $ 3,262 22.4 % State tax, net of federal income tax provision 1,261 6.8 1,018 7.0 Tax exempt income ( 142 ) ( 0.8 ) ( 787 ) ( 5.4 ) Nondeductible merger expenses ( 3 ) 0.0 373 2.6 Other ( 110 ) ( 0.6 ) 163 1.1 Income Tax Expense $ 4,915 26.4 % $ 4,029 27.7 % |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Summary of Activity of Loans Receivable From Related Parties | The following table presents a summary of the activity of loans receivable from related parties during the years ended December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 (dollars in thousands) Balance, beginning $ 17 $ 37 Advances — — New related party 96 — Less: retired directors — — Repayments ( 17 ) ( 20 ) Balance, ending $ 96 $ 17 |
Summary of Future Operating Lease Payments | The following table shows the future operating lease payments due by year. Amount Year ending December 31, (dollars in thousands) 2024 $ 48 2025 50 2026 51 2027 53 2028 55 Thereafter 271 Total $ 528 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease Right of Use Asset and Operating Lease Liability | The following table shows the operating lease right of use assets and operating lease liabilities as of December 31, 2023 and 2022: Consolidated Balance Sheet classification December 31, 2023 December 31, 2022 (dollars in thousands) Operating lease right of use asset Other assets $ 1,128 $ 617 Operating lease liabilities Other liabilities $ 1,162 $ 645 Other information related to leases: Weighted average remaining lease term of operating leases 5.5 years 3.9 years Weighted average discount rate of operating leases 4.26 % 3.74 % Cash paid for amounts included in the measurement of lease liabilities $ 197,000 $ 220,000 |
Schedule of Future Undiscounted Lease Payments For Operating Leases | Future undiscounted lease payments for operating leases, including those option years for which the Company is reasonably certain to renew, are as follows: Amount Year ending December 31, (dollars in thousands) 2024 $ 243 2025 464 2026 127 2027 64 2028 64 Thereafter 229 Total undiscounted lease payments 1,191 Less: imputed interest ( 29 ) Present value of operating lease liabilities $ 1,162 Note 14 – Leasing Arrangements (Continued ) The Company leased office space to a non-related third party and received rental income of $ 163,000 for the year ended December 31, 2023. The following table shows the future operating lease payments due to be received by year. Amount Year ending December 31, (dollars in thousands) 2024 $ 168 2025 173 2026 178 2027 183 2028 189 Thereafter 813 Total $ 1,704 |
Schedule of Future Operating Lease Payments Received | The following table shows the future operating lease payments due to be received by year. Amount Year ending December 31, (dollars in thousands) 2024 $ 168 2025 173 2026 178 2027 183 2028 189 Thereafter 813 Total $ 1,704 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis by level within the fair value hierarchy used at December 31, 2023 and December 31, 2022, are as follows: Level 1 Level 2 Level 3 Quoted prices Significant Significant in active other other markets for observable unobservable December 31, 2023 Total identical assets inputs inputs (dollars in thousands) Securities available for sale Agency securities $ 4,723 $ — $ 4,723 $ — Corporate securities 1,418 — 1,418 — Mortgage-backed securities 28,640 — 28,640 — $ 34,781 $ — $ 34,781 $ — December 31, 2022 Securities available for sale Corporate securities $ 1,932 $ — $ 1,932 $ — Mortgage-backed securities 31,102 — 31,102 — $ 33,034 $ — $ 33,034 $ — |
Summary of Assets Measured at Fair Value on Non Recurring Basis | Assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy used at December 31, 2023 and December 31, 2022, are as follows: Level 1 Level 2 Level 3 Quoted prices Significant Significant in active other other markets for observable unobservable December 31, 2023 identical assets inputs inputs (dollars in thousands) Foreclosed real estate and repossessed assets 170 — — 170 $ 10,724 $ — $ — $ 10,724 December 31, 2022 Foreclosed real estate and repossessed assets 1,987 — — 1,987 $ 8,336 $ — $ — $ 8,336 |
Summary of Changes Inforeclosed Real Estate and Repossessed Assets | Changes in the balance of foreclosed real estate and repossessed assets during the years ended December 31, 2023 and December 31, 2022, were as follows: December 31, 2023 December 31, 2022 (dollars in thousands) Beginning of period balance $ 1,987 $ 1,987 Improvements and additions 57 — Proceeds from sale ( 2,583 ) — Gain (loss) on sale 709 — End of period balance $ 170 $ 1,987 |
Fair Value, by Balance Sheet Grouping | The following table summarizes the carrying amounts and fair values of financial instruments at December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 Fair value Carrying Fair Carrying Fair hierarchy amount value amount value (dollars in thousands) Financial assets Cash and cash equivalents Level 1 $ 73,742 $ 73,742 $ 68,652 $ 68,652 Securities held to maturity Level 2 10,209 9,206 10,461 9,906 Securities available for sale Level 2 34,781 34,781 33,034 33,034 Federal Home Loan Bank of Atlanta stock Level 2 626 626 977 977 Loans receivable Level 3 696,248 686,879 659,131 639,027 Accrued interest receivable Level 2 3,279 3,279 2,952 2,952 Financial liabilities Deposits Level 3 $ 634,120 $ 631,720 $ 684,618 $ 551,348 FHLB Borrowings Level 3 — — 12,000 11,976 Subordinated Debentures Level 3 37,251 31,018 37,039 33,595 Accrued interest payable Level 2 193 193 110 110 |
Condensed Financial Informati_2
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Financial Information | Information as to the financial position of BV Financial, Inc. and its results of operations and cash flows as of and for the years ended December 31, 2023 and December 31, 2022, are summarized below. Statement of Financial Condition (dollars in thousands) December 31, 2023 December 31, 2022 Assets Cash $ 45,625 $ 3,820 Equity investment 256 221 ESOP loan receivable 7,328 — Investment in subsidiary 175,366 123,436 Goodwill 6,326 6,326 Other assets 1,491 1,056 Total Assets $ 236,392 $ 134,859 Liabilities and Stockholders Equity Borrowings 37,251 37,039 Other Liabilities 76 69 Total Liabilities 37,327 37,108 Total Stockholders' Equity 199,065 97,751 Total Liabilities & Stockholders Equity $ 236,392 $ 134,859 Statement of Income December 31, 2023 December 31, 2022 (dollars in thousands) Interest income $ 285 $ — Cash dividends from subsidiary 3,750 1,900 Equity security valuation adjustment 29 ( 28 ) Total interest and dividend income 4,064 1,872 Interest Expense 2,165 2,062 Net interest and dividend income 1,899 ( 190 ) Noninterest income 8 — Noninterest expense 229 111 Income (loss) before tax 1,678 ( 301 ) Income tax benefit 436 462 Income (loss) before equity in net income of subsidiary 2,114 161 Equity in undistributed net income of subsidiary 11,593 10,363 Net Income $ 13,707 $ 10,524 Note 17 – Condensed Financial Information (Parent Company Only) (Continued ) Statements of Cash Flows (dollars in thousands) December 31, 2023 December 31, 2022 Cash flows from operating activities Net income $ 13,707 $ 10,524 Adjustments to reconcile net income to net cash used by operating activities Equity in net income of subsidiary ( 11,593 ) ( 10,363 ) Amortization of debt issuance costs and debt fair value adjustments 212 211 Non-cash income-Equity security valuation adjustment ( 35 ) 28 (Decrease) in other assets ( 436 ) ( 463 ) Increase in other liabilities 7 32 Net cash provided by (used in) operating activities 1,862 ( 31 ) Cash flows from investing activities Net (increase) in loans ( 7,328 ) — Investment in Equity Securities — ( 250 ) Net cash used in investing activities ( 7,328 ) ( 250 ) Cash flows from financing activities Issuance of common stock funded by stock offering 97,990 — Offering costs ( 3,248 ) — Investment in Bank from stock offering ( 47,471 ) — Stock options exercised — 28 Net cash provided by financing activities 47,271 28 Increase (decrease) in cash and cash equivalents 41,805 ( 253 ) Cash and cash equivalents at beginning of period 3,820 4,073 Cash and cash equivalents at end of period $ 45,625 $ 3,820 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||
Feb. 08, 2024 USD ($) | Jul. 31, 2023 $ / shares shares | Jan. 31, 2022 shares | Mar. 31, 2000 USD ($) | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 251,004 | |||||||
Shares sold in recent offering | shares | 9,798,980 | |||||||
Common stock outstanding after conversion | shares | 11,375,803 | |||||||
Common stock conversion price per share | $ / shares | $ 10 | |||||||
Common stock conversion ratio | 1.5309 | 1.5309 | ||||||
Total consolidated assets | $ 885,254,000 | $ 844,963,000 | ||||||
Loans | 704,802,000 | 662,944,000 | ||||||
Deposits | 634,120,000 | 684,618,000 | ||||||
Stockholders' equity | 199,065,000 | 97,751,000 | $ 83,446,000 | |||||
FHLB restricted stock | 626,000 | 976,600 | ||||||
Mortgage loans held for sale | $ 0 | $ 0 | ||||||
Unexercised stock options | shares | 55,648 | 55,648 | ||||||
Dilutive shares | shares | 38,295 | 21,959 | ||||||
Anti-dilutive shares | shares | 0 | 0 | ||||||
Credit losses on available for sale securities | $ 0 | |||||||
Debt securities allowance for credit loss default rates percentage | 45% | |||||||
Accrued interest receivables on debt securities | $ 42,000 | |||||||
Retained earnings, net of taxes | 97,772,000 | $ 84,612,000 | ||||||
Increase in loan due to adoptation of ASC 326 | $ 696,248,000 | $ 659,131,000 | ||||||
Shares issued to ESOP | shares | 783,918 | |||||||
Subsequent Event | Easton Capital Trust I | Junior Subordinated Debt [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Borrowings reduced by paying off | $ 3,000,000 | |||||||
ASU 2016-13 | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Retained earnings, net of taxes | $ 547,000 | |||||||
Increase in loan due to adoptation of ASC 326 | $ 3,800,000 | |||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2023 | |||||||
ASU 2022-02 | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2023 | |||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |||||||
ASU 2023-7 | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Minimum percentage of the amount computed by multiplying pretax income loss by the applicable statutory income tax rate | 5% | |||||||
Minimum percentage of total income taxes paid net of refunds received | 5% | |||||||
Unvested Restricted Stock or Performance Stock Unit Awards | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Anti-dilutive shares | shares | 0 | 0 | ||||||
M.H.C. | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Percentage of outstanding common stock owned | 86.30% | |||||||
Maximum | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Historical losses for all banks with assets | $ 1,000,000,000 | |||||||
National loss history for banks with assets | $ 1,000,000,000 | |||||||
North Arundel Savings Bank | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Deposits | $ 40,800,000 | |||||||
Increase in loan due to adoptation of ASC 326 | $ 34,200,000 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies - Schedule of Information Related to Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Basic | ||
Net Income (Loss) | $ 13,707 | $ 10,524 |
Weighted average common shares outstanding, basic | 9,303,000 | 7,950,000 |
Adjusted weighted average shares outstanding, Basic | 9,303,000 | 7,950,000 |
Diluted | ||
Net income | $ 13,707 | $ 10,524 |
Weighted average common shares outstanding, Diluted | 9,303,000 | 7,950,000 |
Dilutive securities Stock options | 38,295 | 21,959 |
Adjusted weighted average shares outstanding, Diluted | 9,341,000 | 7,972,000 |
Basic earnings per share | $ 1.47 | $ 1.32 |
Diluted earnings per share | $ 1.47 | $ 1.32 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies - Schedule of Impact of the Adoption of Accounting Standards Update (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total loans, net of deferred fees and costs | $ 666,722,000 | $ 1,467,000 | ||
Allowance for credit losses-loans | $ (704,802,000) | (8,045,000) | (664,411,000) | |
Total loans, net | 8,554,000 | 658,677,000 | $ 3,813,000 | $ 2,666,000 |
Liabilities: Reserve for Unfunded Commitments | $ 289,000 | 289,000 | ||
Previously Reported | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total loans, net of deferred fees and costs | 662,944,000 | |||
Allowance for credit losses-loans | (3,813,000) | |||
Total loans, net | 659,131,000 | |||
Liabilities: Reserve for Unfunded Commitments | 5,000 | |||
Revision of Prior Period, Adjustment | ASU 2022-02 | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total loans, net of deferred fees and costs | 3,778,000 | |||
Allowance for credit losses-loans | (4,232,000) | |||
Total loans, net | (454,000) | |||
Liabilities: Reserve for Unfunded Commitments | $ 284,000 |
Merger - Additional Information
Merger - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Jan. 01, 2022 | |
Business Acquisition [Line Items] | ||||
Loans | $ 659,131,000 | $ 696,248,000 | ||
Deposits | 684,618,000 | 634,120,000 | ||
Shares issued during Acquisition | 251,004 | |||
Gain on bargain purchase | 1,340,000 | |||
Core deposit intangible | $ 85,000 | |||
Merger related expenses | 1,600,000 | |||
PCI loans acquired | $ 0 | |||
North Arundel Savings Bank | ||||
Business Acquisition [Line Items] | ||||
Loans | 34,200,000 | |||
Deposits | $ 40,800,000 | |||
Gain on bargain purchase | $ 1,300,000 | $ 1,340,000 | ||
North Arundel Savings Bank | Core Deposits Intangible | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 10 years |
Merger - Summary of Acquisition
Merger - Summary of Acquisition Transaction (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Dec. 31, 2022 | ||
Liabilities assumed | |||
Bargain purchase gain recorded at merger | $ 1,340 | ||
North Arundel Savings Bank [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value of Equity Acquired | 5,460 | ||
Cash and Cash Equivalents | 8,521 | ||
Securities held to maturity | 784 | ||
Securities available for sale | 1,464 | ||
Loans Receivable | 34,173 | ||
Premises and equipment | 1,275 | ||
Core deposit intangible | 85 | ||
Deferred Taxes | 247 | ||
Other Assets | 1,259 | ||
Total Assets Acquired | 47,808 | ||
Liabilities assumed | |||
Deposits | 40,760 | ||
Advance payments by borrowers for taxes and insurance | 121 | ||
Accrued Expenses and other liabilities | 127 | ||
Total liabilities assumed | 41,008 | ||
Net assets acquired | 6,800 | ||
Bargain purchase gain recorded at merger | $ 1,300 | 1,340 | |
North Arundel Savings Bank [Member] | As Recorded | |||
Business Acquisition [Line Items] | |||
Cash and Cash Equivalents | 8,521 | ||
Securities held to maturity | 772 | ||
Securities available for sale | 1,500 | ||
Loans Receivable | 34,258 | ||
Allowance for Loan Loss | (236) | ||
Premises and equipment | 258 | ||
Deferred Taxes | 49 | ||
Other Assets | 1,259 | ||
Total Assets Acquired | 46,381 | ||
Liabilities assumed | |||
Deposits | 40,321 | ||
Advance payments by borrowers for taxes and insurance | 121 | ||
Accrued Expenses and other liabilities | 127 | ||
Total liabilities assumed | 40,569 | ||
North Arundel Savings Bank [Member] | Fair Value Adjustment | |||
Business Acquisition [Line Items] | |||
Securities held to maturity | [1] | 12 | |
Securities available for sale | [1] | (36) | |
Loans Receivable | [2] | (85) | |
Allowance for Loan Loss | [3] | 236 | |
Premises and equipment | [4] | 1,017 | |
Core deposit intangible | [5] | 85 | |
Deferred Taxes | [6] | 198 | |
Total Assets Acquired | 1,427 | ||
Liabilities assumed | |||
Deposits | [7] | 439 | |
Total liabilities assumed | $ 439 | ||
[1] Represents the fair value adjustments to the investment securities at the acquisition date. Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment which will be amortized over the remaining life of the loans. Represents the elimination of the NASB allowance for loan loss. Represents the fair value adjustments to reflect fair value of land and buildings which will be amortized on a straight line-basis over the estimated useful lives of the assets. Represents the intangible asset recorded to reflect the fair value of core deposits. The core deposit asset was recorded as an identified intangible asset and will be amortized on a straight-line basis over ten years. Represents the deferred tax asset resulting from the fair value adjustments related to the acquired assets, liabilities assumed, identified intangibles recorded and for the net operating loss carry forward for NASB. Represents fair value adjustments on time deposits, which will be treated as a reduction in interest expense over the remaining life of the time deposits. |
Merger - Summary of Details of
Merger - Summary of Details of Acquired Loans (Details) $ in Thousands | Jan. 01, 2022 USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Contractually required principal at acquisition | $ 34,258 |
Contractual cash flows not expected to be collected (credit mark) | (394) |
Expected cash flows at acquisition | 33,863 |
Interest component of expected cash flows (accretable premium) | 309 |
Fair value of acquired loans | $ 34,173 |
Securities - Schedule of Availa
Securities - Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 37,482 | $ 36,263 |
Gross unrealized gains | 5 | |
Gross unrealized losses | 2,706 | 3,229 |
Fair value | 34,781 | 33,034 |
Corporate securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 1,722 | 2,218 |
Gross unrealized losses | 304 | 286 |
Fair value | 1,418 | 1,932 |
Mortgage-backed Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 31,032 | 34,045 |
Gross unrealized gains | 5 | |
Gross unrealized losses | 2,397 | 2,943 |
Fair value | 28,640 | $ 31,102 |
Agencies | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 4,728 | |
Gross unrealized losses | 5 | |
Fair value | $ 4,723 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost | $ 41.4 | $ 40.2 |
Number of securities unrealized losses | 67 | 69 |
Fair Value | $ 38.6 | $ 36.9 |
Securities - Schedule of Securi
Securities - Schedule of Securities Held to Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | $ 10,209 | $ 10,461 |
Gross Unrealized Gains | 3 | 3 |
Gross unrealized losses | 1,006 | 804 |
Fair value | 9,206 | 9,660 |
Agencies | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 4,003 | 4,009 |
Gross unrealized losses | 22 | 25 |
Fair value | 3,981 | 3,984 |
Corporate securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 3,194 | 3,200 |
Gross unrealized losses | 570 | 408 |
Fair value | 2,624 | 2,792 |
Mortgage-backed Securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 3,012 | 3,252 |
Gross Unrealized Gains | 3 | 3 |
Gross unrealized losses | 414 | 371 |
Fair value | $ 2,601 | $ 2,884 |
Securities - Schedule of Secu_2
Securities - Schedule of Securities Held to Maturity (Parenthetical) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Allowance for credit loss reserve | $ 6,000 |
Securities - Schedule of Contra
Securities - Schedule of Contractual Maturities Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due under one year | $ 8,156 | $ 509 |
Due after one year through five years | 4,605 | 9,986 |
Due after five years through ten years | 7,788 | 9,160 |
Due after ten years | 16,933 | 16,608 |
Amortized Cost, Total | 37,482 | 36,263 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
Due under one year | 8,053 | 502 |
Due after one year through five years | 4,478 | 9,477 |
Due after five years through ten years | 7,350 | 8,631 |
Due after ten years | 14,900 | 14,424 |
Available-for-Sale: Fair Value | 34,781 | 33,034 |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, Rolling Maturity [Abstract] | ||
Due under one year | 4,003 | |
Due after one year through five years | 25 | 4,042 |
Due after five years through ten years | 3,745 | 3,840 |
Due after ten years | 2,436 | 2,579 |
Amortized Cost, Total | 10,209 | 10,461 |
Debt Securities, Held-to-Maturity, Maturity, Allocated and Single Maturity Date, Fair Value, Rolling Maturity [Abstract] | ||
Due under one year | 3,981 | |
Due after one year through five years | 24 | 4,015 |
Due after five years through ten years | 3,138 | 3,383 |
Due after ten years | 2,063 | 2,262 |
Held-to-Maturity: Fair Value | $ 9,206 | $ 9,660 |
Securities - Schedule of Invest
Securities - Schedule of Investment Securities with Unrealized Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 months, gross unrealized losses | $ 89 | $ 821 |
Less than 12 months, fair value | 5,868 | 11,777 |
12 months or longer, gross unrealized losses | 2,617 | 2,408 |
12 months or longer, fair value | 26,903 | 20,400 |
Total gross unrealized losses | 2,706 | 3,229 |
Total fair value | 32,771 | 32,177 |
Held to maturity less than 12 months, gross unrealized losses | 640 | |
Held to maturity less than 12 months, fair value | 14 | 8,501 |
Held to maturity securities 12 months or longer, gross unrealized losses | 1,006 | 164 |
Held to maturity securities 12 months or longer, fair value | 9,087 | 1,086 |
Held to maturity securities gross unrealized losses | 1,006 | 804 |
Held to maturity securities fair value | 9,101 | 9,587 |
Corporate securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 months, gross unrealized losses | 83 | 286 |
Less than 12 months, fair value | 667 | 1,182 |
12 months or longer, gross unrealized losses | 221 | |
12 months or longer, fair value | 751 | |
Total gross unrealized losses | 304 | 286 |
Total fair value | 1,418 | 1,182 |
Held to maturity less than 12 months, gross unrealized losses | 244 | |
Held to maturity less than 12 months, fair value | 1,706 | |
Held to maturity securities 12 months or longer, gross unrealized losses | 570 | 164 |
Held to maturity securities 12 months or longer, fair value | 2,624 | 1,086 |
Held to maturity securities gross unrealized losses | 570 | 408 |
Held to maturity securities fair value | 2,624 | 2,792 |
Mortgage-backed Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 months, gross unrealized losses | 1 | 535 |
Less than 12 months, fair value | 478 | 10,595 |
12 months or longer, gross unrealized losses | 2,396 | 2,408 |
12 months or longer, fair value | 26,152 | 20,400 |
Total gross unrealized losses | 2,397 | 2,943 |
Total fair value | 26,630 | 30,995 |
Held to maturity less than 12 months, gross unrealized losses | 371 | |
Held to maturity less than 12 months, fair value | 14 | 2,811 |
Held to maturity securities 12 months or longer, gross unrealized losses | 414 | |
Held to maturity securities 12 months or longer, fair value | 2,482 | |
Held to maturity securities gross unrealized losses | 414 | 371 |
Held to maturity securities fair value | 2,496 | 2,811 |
Agency securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 months, gross unrealized losses | 5 | |
Less than 12 months, fair value | 4,723 | |
Total gross unrealized losses | 5 | |
Total fair value | 4,723 | |
Held to maturity less than 12 months, gross unrealized losses | 25 | |
Held to maturity less than 12 months, fair value | 3,984 | |
Held to maturity securities 12 months or longer, gross unrealized losses | 22 | |
Held to maturity securities 12 months or longer, fair value | 3,981 | |
Held to maturity securities gross unrealized losses | 22 | 25 |
Held to maturity securities fair value | $ 3,981 | $ 3,984 |
Securities - Schedule of Credit
Securities - Schedule of Credit Ratings of HTM Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | $ 10,209 | $ 10,461 |
AAA | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 7,015 | |
A- | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 499 | |
BBB/BBB+ | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 1,248 | |
BBB- | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 699 | |
Not Rated | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 748 | |
Agency securities | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 4,003 | 4,009 |
Agency securities | AAA | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 4,003 | |
Corporate securities | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 3,194 | 3,200 |
Corporate securities | A- | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 499 | |
Corporate securities | BBB/BBB+ | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 1,248 | |
Corporate securities | BBB- | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 699 | |
Corporate securities | Not Rated | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 748 | |
Mortgage-backed securities | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | 3,012 | $ 3,252 |
Mortgage-backed securities | AAA | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
HTM Debt Securities | $ 3,012 |
Securities - Schedule of Breakd
Securities - Schedule of Breakdown of HTM Debt Securities by Year of Origination (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Prior | $ 1,042 | |
2021 | 2,591 | |
2022 | 6,576 | |
Amortized Cost | 10,209 | $ 10,461 |
Agency securities | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
2022 | 4,003 | |
Amortized Cost | 4,003 | 4,009 |
Corporate securities | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
2021 | 2,445 | |
2022 | 749 | |
Amortized Cost | 3,194 | 3,200 |
Mortgage-backed securities | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Prior | 1,042 | |
2021 | 146 | |
2022 | 1,824 | |
Amortized Cost | $ 3,012 | $ 3,252 |
Securities - Summary of Allowan
Securities - Summary of Allowance for Credit Losses on HTM Debt Securities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Beginning Balance | $ 0 |
(Recovery) for credit losses | (4) |
Ending Balance | 6 |
Impact of ASC 326 Adoption | ASU 2016-13 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Ending Balance | $ 10 |
Loans Receivable - Schedule of
Loans Receivable - Schedule of Portfolio Loans, Net of Deferred Costs and Fees (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 704,802 | $ 8,045 | $ 664,411 | |
Loans, Percent | 100% | 100% | ||
Deferred origination fees, net | (666,722) | $ (1,467) | ||
Allowance for credit losses | $ (8,554) | $ (658,677) | (3,813) | $ (2,666) |
Net loans | 696,248 | 659,131 | ||
Guaranteed By U.S. Government | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | 3,715 | 4,933 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | 18,244 | 28,052 | ||
One To Four Family - Owner Occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | 130,026 | 137,742 | ||
One To Four Family - Non Owner Occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | 108,090 | 125,065 | ||
Commercial Owner Occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | 102,512 | 91,853 | ||
Commercial Investor | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | 287,194 | 226,854 | ||
Construction and Land | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | 21,865 | 17,937 | ||
Farm Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | 14,877 | 13,823 | ||
Marine Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | 16,386 | 15,791 | ||
Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 664,564 | $ 613,274 | ||
Loans, Percent | 94.30% | 92.29% | ||
Allowance for credit losses | $ (7,997) | $ (3,654) | (2,553) | |
Real Estate | One To Four Family - Owner Occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 130,026 | $ 137,742 | ||
Loans, Percent | 18.45% | 20.73% | ||
Allowance for credit losses | $ (1,728) | $ (344) | (258) | |
Real Estate | One To Four Family - Non Owner Occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 108,090 | $ 125,065 | ||
Loans, Percent | 15.34% | 18.82% | ||
Allowance for credit losses | $ (1,030) | $ (562) | (695) | |
Real Estate | Commercial Owner Occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 102,512 | $ 91,853 | ||
Loans, Percent | 14.54% | 13.82% | ||
Allowance for credit losses | $ (563) | $ (366) | (280) | |
Real Estate | Commercial Investor | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 287,194 | $ 226,854 | ||
Loans, Percent | 40.76% | 34.14% | ||
Allowance for credit losses | $ (3,725) | $ (2,272) | (1,225) | |
Real Estate | Construction and Land | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 21,865 | $ 17,937 | ||
Loans, Percent | 3.10% | 2.70% | ||
Allowance for credit losses | $ (772) | $ (93) | (93) | |
Real Estate | Farm Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 14,877 | $ 13,823 | ||
Loans, Percent | 2.11% | 2.08% | ||
Allowance for credit losses | $ (179) | $ (17) | (2) | |
Consumer and Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 40,238 | $ 51,137 | ||
Loans, Percent | 5.70% | 7.71% | ||
Allowance for credit losses | $ (557) | $ (159) | (113) | |
Consumer and Commercial | Other Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 1,893 | $ 2,361 | ||
Loans, Percent | 0.27% | 0.36% | ||
Consumer and Commercial | Guaranteed By U.S. Government | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 3,715 | $ 4,933 | ||
Loans, Percent | 0.53% | 0.74% | ||
Consumer and Commercial | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 18,244 | $ 28,052 | ||
Loans, Percent | 2.58% | 4.23% | ||
Allowance for credit losses | $ (154) | $ (91) | (45) | |
Consumer and Commercial | Marine Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Amount | $ 16,386 | $ 15,791 | ||
Loans, Percent | 2.32% | 2.38% | ||
Allowance for credit losses | $ (63) | $ (48) |
Loans Receivable - Additional I
Loans Receivable - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) Loan | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net deferred loan origination fees and costs | $ 640,000 | |||
Loans | $ 696,248,000 | $ 659,131,000 | ||
Percentage of Paycheck Protection Program (PPP) loans | 100% | |||
Allowance for credit losses | $ 8,554,000 | $ 658,677,000 | 3,813,000 | $ 2,666,000 |
Interest accured on nonaccural loans | $ 315,000 | 240,000 | ||
Number of Loans | Loan | 1 | |||
Reserve for unfunded commitments | $ 289,000 | $ 289,000 | ||
Guaranteed by U.S. Government Paycheck Protection Program (PPP) Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 25,000 | 488,000 | ||
PPP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses | $ 0 | |||
PCI Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-accretable discounts | 1,300,000 | |||
Remaining premium amortized into income | 1,600,000 | |||
Allowance for credit losses | 0 | |||
Contractual carrying balances of all acquired loans | $ 234,900,000 |
Loans Receivable - Summary of D
Loans Receivable - Summary of Detail Activity in Allowance for Credit Losses-Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | $ 3,813 | $ 2,666 |
Charge-offs | (85) | (56) |
Recoveries | 552 | 165 |
Provisions (recovery) | 42 | 1,038 |
Ending balance | 8,554 | 3,813 |
Reduction in allowance for securities- HTM | (4) | |
Reduction in allowance for credit losses - unfunded commitments | (83) | |
Provision for (recovery of) credit losses per the Consolidated Statement of Income | (45) | 1,038 |
Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 4,232 | |
Ending balance | 4,232 | |
Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 3,654 | 2,553 |
Charge-offs | (5) | (17) |
Recoveries | 523 | 149 |
Provisions (recovery) | 137 | 969 |
Ending balance | 7,997 | 3,654 |
Real Estate | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 3,688 | |
Ending balance | 3,688 | |
Real Estate | One To Four Family - Owner Occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 344 | 258 |
Charge-offs | (2) | (7) |
Recoveries | 64 | 43 |
Provisions (recovery) | 205 | 50 |
Ending balance | 1,728 | 344 |
Real Estate | One To Four Family - Owner Occupied | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 1,117 | |
Ending balance | 1,117 | |
Real Estate | One To Four Family - Non Owner Occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 562 | 695 |
Recoveries | 305 | 87 |
Provisions (recovery) | (193) | (220) |
Ending balance | 1,030 | 562 |
Real Estate | One To Four Family - Non Owner Occupied | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 356 | |
Ending balance | 356 | |
Real Estate | Commercial Owner Occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 366 | 280 |
Charge-offs | (3) | |
Provisions (recovery) | 122 | 86 |
Ending balance | 563 | 366 |
Real Estate | Commercial Owner Occupied | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 78 | |
Ending balance | 78 | |
Real Estate | Commercial Investor | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 2,272 | 1,225 |
Charge-offs | (10) | |
Provisions (recovery) | (53) | 1,057 |
Ending balance | 3,725 | 2,272 |
Real Estate | Commercial Investor | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 1,506 | |
Ending balance | 1,506 | |
Real Estate | Construction and Land | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 93 | 93 |
Recoveries | 154 | 19 |
Provisions (recovery) | 29 | (19) |
Ending balance | 772 | 93 |
Real Estate | Construction and Land | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 496 | |
Ending balance | 496 | |
Real Estate | Farm Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 17 | 2 |
Provisions (recovery) | 27 | 15 |
Ending balance | 179 | 17 |
Real Estate | Farm Loans | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 135 | |
Ending balance | 135 | |
Consumer and Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 159 | 113 |
Charge-offs | (80) | (39) |
Recoveries | 29 | 16 |
Provisions (recovery) | (95) | 69 |
Ending balance | 557 | 159 |
Consumer and Commercial | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 544 | |
Ending balance | 544 | |
Consumer and Commercial | Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 91 | 45 |
Recoveries | 3 | 1 |
Provisions (recovery) | (148) | 45 |
Ending balance | 154 | 91 |
Consumer and Commercial | Commercial | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 208 | |
Ending balance | 208 | |
Consumer and Commercial | Marine Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 63 | 48 |
Provisions (recovery) | 15 | |
Ending balance | 63 | |
Consumer and Commercial | Marine and Other Consumer Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 68 | |
Charge-offs | (80) | |
Recoveries | 26 | |
Provisions (recovery) | 53 | |
Ending balance | 403 | 68 |
Consumer and Commercial | Marine and Other Consumer Loans | Impact of ASC 326 Adoption | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 336 | |
Ending balance | 336 | |
Consumer and Commercial | Other consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | $ 5 | 20 |
Charge-offs | (39) | |
Recoveries | 15 | |
Provisions (recovery) | 9 | |
Ending balance | $ 5 |
Loans Receivable - Schedule o_2
Loans Receivable - Schedule of Term Loan by Origination Year (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | $ 120,790 | $ 181,613 |
Year two, fiscal year before current fiscal year | 165,069 | 152,981 |
Year three, two years before current fiscal year | 133,780 | 65,115 |
Year four, three years before current fiscal year | 56,894 | 43,314 |
Year five, four years before current fiscal year | 37,964 | 39,383 |
Prior | 179,774 | 170,282 |
Revolving | 10,531 | 11,723 |
Total | 704,802 | 664,411 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 501 | 10,301 |
Year two, fiscal year before current fiscal year | 4,699 | 6,885 |
Year three, two years before current fiscal year | 6,236 | 5,116 |
Year four, three years before current fiscal year | 2,000 | 1,225 |
Year five, four years before current fiscal year | 628 | 1,798 |
Prior | 4,180 | 2,727 |
Total | 18,244 | 28,052 |
Guaranteed By U.S. Government | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year two, fiscal year before current fiscal year | 304 | |
Year three, two years before current fiscal year | 175 | |
Year four, three years before current fiscal year | 26 | 525 |
Year five, four years before current fiscal year | 417 | 840 |
Prior | 3,272 | 3,089 |
Total | 3,715 | 4,933 |
Current Period Gross Write-off | Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year three, two years before current fiscal year | 2 | |
Year four, three years before current fiscal year | 8 | |
Total | (10) | |
One To Four Family - Owner Occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 6,387 | 7,009 |
Year two, fiscal year before current fiscal year | 7,906 | 14,907 |
Year three, two years before current fiscal year | 13,727 | 10,742 |
Year four, three years before current fiscal year | 9,974 | 10,708 |
Year five, four years before current fiscal year | 9,707 | 8,285 |
Prior | 71,794 | 74,368 |
Revolving | 10,531 | 11,723 |
Total | 130,026 | 137,742 |
One To Four Family - Owner Occupied | Current Period Gross Write-off | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 2 | 7 |
Total | (2) | (7) |
One To Four Family - Non Owner Occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 13,810 | 45,369 |
Year two, fiscal year before current fiscal year | 30,603 | 27,088 |
Year three, two years before current fiscal year | 20,582 | 12,325 |
Year four, three years before current fiscal year | 10,742 | 8,935 |
Year five, four years before current fiscal year | 7,611 | 6,077 |
Prior | 24,742 | 25,271 |
Total | 108,090 | 125,065 |
Commercial Owner Occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 20,967 | 17,678 |
Year two, fiscal year before current fiscal year | 16,071 | 17,244 |
Year three, two years before current fiscal year | 16,642 | 7,278 |
Year four, three years before current fiscal year | 6,941 | 7,124 |
Year five, four years before current fiscal year | 6,573 | 12,438 |
Prior | 35,318 | 30,091 |
Total | 102,512 | 91,853 |
Commercial Owner Occupied | Current Period Gross Write-off | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 3 | |
Total | (3) | |
Commercial Investor | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 68,682 | 83,975 |
Year two, fiscal year before current fiscal year | 89,812 | 74,933 |
Year three, two years before current fiscal year | 65,624 | 24,133 |
Year four, three years before current fiscal year | 23,112 | 11,369 |
Year five, four years before current fiscal year | 9,991 | 8,336 |
Prior | 29,973 | 24,108 |
Total | 287,194 | 226,854 |
Construction and Land | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 6,901 | 10,135 |
Year two, fiscal year before current fiscal year | 9,650 | 3,338 |
Year three, two years before current fiscal year | 2,271 | 2,974 |
Year four, three years before current fiscal year | 2,050 | 237 |
Prior | 993 | 1,253 |
Total | 21,865 | 17,937 |
Farm loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 4,165 | |
Year two, fiscal year before current fiscal year | 4,141 | 657 |
Year three, two years before current fiscal year | 2,281 | 266 |
Year four, three years before current fiscal year | 261 | 2,752 |
Year five, four years before current fiscal year | 2,641 | 455 |
Prior | 5,553 | 5,528 |
Total | 14,877 | 13,823 |
Marine Loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 3,227 | 2,486 |
Year two, fiscal year before current fiscal year | 2,044 | 7,413 |
Year three, two years before current fiscal year | 6,293 | 2,028 |
Year four, three years before current fiscal year | 1,751 | 223 |
Year five, four years before current fiscal year | 207 | 1,145 |
Prior | 2,864 | 2,496 |
Total | 16,386 | 15,791 |
Marine Loans | Current Period Gross Write-off | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 58 | |
Total | (58) | |
Other consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 315 | 495 |
Year two, fiscal year before current fiscal year | 143 | 212 |
Year three, two years before current fiscal year | 124 | 78 |
Year four, three years before current fiscal year | 37 | 216 |
Year five, four years before current fiscal year | 189 | 9 |
Prior | 1,085 | 1,351 |
Total | 1,893 | 2,361 |
Other consumer | Current Period Gross Write-off | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 22 | 38 |
Total | (22) | (38) |
Pass | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 120,790 | 181,613 |
Year two, fiscal year before current fiscal year | 164,669 | 152,981 |
Year three, two years before current fiscal year | 133,780 | 62,538 |
Year four, three years before current fiscal year | 47,644 | 40,022 |
Year five, four years before current fiscal year | 36,462 | 32,758 |
Prior | 171,574 | 160,401 |
Revolving | 10,492 | 11,674 |
Total | 685,411 | 641,987 |
Pass | Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 501 | 10,301 |
Year two, fiscal year before current fiscal year | 4,299 | 6,885 |
Year three, two years before current fiscal year | 6,236 | 5,116 |
Year four, three years before current fiscal year | 2,000 | 1,225 |
Year five, four years before current fiscal year | 628 | 1,798 |
Prior | 3,483 | 2,282 |
Total | 17,147 | 27,607 |
Pass | Guaranteed By U.S. Government | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year two, fiscal year before current fiscal year | 304 | |
Year three, two years before current fiscal year | 175 | |
Year four, three years before current fiscal year | 26 | 525 |
Year five, four years before current fiscal year | 417 | 840 |
Prior | 3,272 | 3,089 |
Total | 3,715 | 4,933 |
Pass | One To Four Family - Owner Occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 6,387 | 7,009 |
Year two, fiscal year before current fiscal year | 7,906 | 14,907 |
Year three, two years before current fiscal year | 13,727 | 10,742 |
Year four, three years before current fiscal year | 9,974 | 10,708 |
Year five, four years before current fiscal year | 9,707 | 8,285 |
Prior | 71,463 | 73,585 |
Revolving | 10,492 | 11,674 |
Total | 129,656 | 136,910 |
Pass | One To Four Family - Non Owner Occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 13,810 | 45,369 |
Year two, fiscal year before current fiscal year | 30,603 | 27,088 |
Year three, two years before current fiscal year | 20,582 | 12,325 |
Year four, three years before current fiscal year | 10,742 | 7,337 |
Year five, four years before current fiscal year | 7,611 | 5,224 |
Prior | 22,795 | 23,369 |
Total | 106,143 | 120,712 |
Pass | Commercial Owner Occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 20,967 | 17,678 |
Year two, fiscal year before current fiscal year | 16,071 | 17,244 |
Year three, two years before current fiscal year | 16,642 | 6,299 |
Year four, three years before current fiscal year | 5,998 | 5,590 |
Year five, four years before current fiscal year | 5,071 | 11,502 |
Prior | 31,536 | 25,610 |
Total | 96,285 | 83,923 |
Pass | Commercial Investor | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 68,682 | 83,975 |
Year two, fiscal year before current fiscal year | 89,812 | 74,933 |
Year three, two years before current fiscal year | 65,624 | 24,133 |
Year four, three years before current fiscal year | 16,205 | 11,369 |
Year five, four years before current fiscal year | 9,991 | 3,500 |
Prior | 28,823 | 22,186 |
Total | 279,137 | 220,096 |
Pass | Construction and Land | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 6,901 | 10,135 |
Year two, fiscal year before current fiscal year | 9,650 | 3,338 |
Year three, two years before current fiscal year | 2,271 | 1,376 |
Year four, three years before current fiscal year | 650 | 77 |
Prior | 704 | 986 |
Total | 20,176 | 15,912 |
Pass | Farm loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 4,165 | |
Year two, fiscal year before current fiscal year | 4,141 | 657 |
Year three, two years before current fiscal year | 2,281 | 266 |
Year four, three years before current fiscal year | 261 | 2,752 |
Year five, four years before current fiscal year | 2,641 | 455 |
Prior | 5,553 | 5,528 |
Total | 14,877 | 13,823 |
Pass | Marine Loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 3,227 | 2,486 |
Year two, fiscal year before current fiscal year | 2,044 | 7,413 |
Year three, two years before current fiscal year | 6,293 | 2,028 |
Year four, three years before current fiscal year | 1,751 | 223 |
Year five, four years before current fiscal year | 207 | 1,145 |
Prior | 2,864 | 2,437 |
Total | 16,386 | 15,732 |
Pass | Other consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year one, current fiscal year | 315 | 495 |
Year two, fiscal year before current fiscal year | 143 | 212 |
Year three, two years before current fiscal year | 124 | 78 |
Year four, three years before current fiscal year | 37 | 216 |
Year five, four years before current fiscal year | 189 | 9 |
Prior | 1,081 | 1,329 |
Total | 1,889 | 2,339 |
Special Mention | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year two, fiscal year before current fiscal year | 400 | |
Total | 400 | |
Special Mention | Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year two, fiscal year before current fiscal year | 400 | |
Total | 400 | |
Substandard | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year three, two years before current fiscal year | 2,577 | |
Year four, three years before current fiscal year | 9,250 | 3,292 |
Year five, four years before current fiscal year | 1,502 | 6,625 |
Prior | 8,200 | 9,881 |
Revolving | 39 | 49 |
Total | 18,991 | 22,424 |
Substandard | Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 697 | 445 |
Total | 697 | 445 |
Substandard | One To Four Family - Owner Occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 331 | 783 |
Revolving | 39 | 49 |
Total | 370 | 832 |
Substandard | One To Four Family - Non Owner Occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year four, three years before current fiscal year | 1,598 | |
Year five, four years before current fiscal year | 853 | |
Prior | 1,947 | 1,902 |
Total | 1,947 | 4,353 |
Substandard | Commercial Owner Occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year three, two years before current fiscal year | 979 | |
Year four, three years before current fiscal year | 943 | 1,534 |
Year five, four years before current fiscal year | 1,502 | 936 |
Prior | 3,782 | 4,481 |
Total | 6,227 | 7,930 |
Substandard | Commercial Investor | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year four, three years before current fiscal year | 6,907 | |
Year five, four years before current fiscal year | 4,836 | |
Prior | 1,150 | 1,922 |
Total | 8,057 | 6,758 |
Substandard | Construction and Land | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Year three, two years before current fiscal year | 1,598 | |
Year four, three years before current fiscal year | 1,400 | 160 |
Prior | 289 | 267 |
Total | 1,689 | 2,025 |
Substandard | Marine Loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 59 | |
Total | 59 | |
Substandard | Other consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 4 | 22 |
Total | $ 4 | $ 22 |
Loans Receivable - Schedule o_3
Loans Receivable - Schedule of Amortized Cost Basis of Collateral Dependent Loans (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Real Estate | $ 10,550 |
Estimated Collateral Values Real Estate | 17,690 |
Business\Other Assets | 4 |
Estimated Collateral Values Business Other Assets | 25 |
One To Four Family - Owner Occupied | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Real Estate | 1,160 |
Estimated Collateral Values Real Estate | 4,321 |
One To Four Family - Non Owner Occupied | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Real Estate | 273 |
Estimated Collateral Values Real Estate | 648 |
Commercial Owner Occupied | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Real Estate | 739 |
Estimated Collateral Values Real Estate | 1,825 |
Commercial Investor | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Real Estate | 8,057 |
Estimated Collateral Values Real Estate | 10,070 |
Construction and Land | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Real Estate | 321 |
Estimated Collateral Values Real Estate | 826 |
Other Consumer | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Business\Other Assets | 4 |
Estimated Collateral Values Business Other Assets | $ 25 |
Loans Receivable - Schedule o_4
Loans Receivable - Schedule of BEFD Modifications Included in Individually Assessed Loan (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) Contract | |
Financing Receivable, Modified [Line Items] | ||
Total accrual BEFD modification loans, number of contract | 5 | 13 |
Modifications on non-accrual, number of loans | Loan | 1 | |
Accrual BEFD modification loans, Amortized Cost | $ 1,531 | $ 1,433 |
Modifications on non-accrual, Amortized Cost | $ 1,150 | |
One To Four Family - Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Total accrual BEFD modification loans, number of contract | Loan | 3 | |
Accrual BEFD modification loans, Amortized Cost | $ 251 | |
One To Four Family - Non Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Total accrual BEFD modification loans, number of contract | Loan | 1 | |
Accrual BEFD modification loans, Amortized Cost | $ 130 | |
Commercial Investor | ||
Financing Receivable, Modified [Line Items] | ||
Total accrual BEFD modification loans, number of contract | Loan | 1 | |
Accrual BEFD modification loans, Amortized Cost | $ 1,150 |
Loans Receivable - Schedule o_5
Loans Receivable - Schedule of Loans Made to Borrowers Experiencing Financial Difficulty Amortized Cost Basis (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable, Modified [Line Items] | |
Term Extensions | $ 1,531 |
Total | $ 1,531 |
Percentage of Total Loans | 0.22% |
One To Four Family - Owner Occupied | |
Financing Receivable, Modified [Line Items] | |
Term Extensions | $ 251 |
Total | $ 251 |
Percentage of Total Loans | 0.04% |
One To Four Family - Non Owner Occupied | |
Financing Receivable, Modified [Line Items] | |
Term Extensions | $ 130 |
Total | $ 130 |
Percentage of Total Loans | 0.02% |
Commercial Investor | |
Financing Receivable, Modified [Line Items] | |
Term Extensions | $ 1,150 |
Total | $ 1,150 |
Percentage of Total Loans | 0.16% |
Loans Receivable - Summary of C
Loans Receivable - Summary of Classification of the Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 704,802 | $ 8,045 | $ 664,411 |
Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 664,564 | 613,274 | |
Consumer and Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 40,238 | 51,137 | |
Guaranteed By U.S. Government | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 3,715 | 4,933 | |
Guaranteed By U.S. Government | Consumer and Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 3,715 | 4,933 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 18,244 | 28,052 | |
Commercial | Consumer and Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 18,244 | 28,052 | |
One To Four Family - Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 130,026 | 137,742 | |
One To Four Family - Owner Occupied | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 130,026 | 137,742 | |
One To Four Family - Non Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 108,090 | 125,065 | |
One To Four Family - Non Owner Occupied | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 108,090 | 125,065 | |
Commercial Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 102,512 | 91,853 | |
Commercial Owner Occupied | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 102,512 | 91,853 | |
Commercial Investor | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 287,194 | 226,854 | |
Commercial Investor | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 287,194 | 226,854 | |
Construction and Land | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 21,865 | 17,937 | |
Construction and Land | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 21,865 | 17,937 | |
Farm Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 14,877 | 13,823 | |
Farm Loans | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 14,877 | 13,823 | |
Marine Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 16,386 | 15,791 | |
Marine Loans | Consumer and Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 16,386 | 15,791 | |
Other Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,893 | 2,361 | |
Other Consumer | Consumer and Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,893 | 2,361 | |
Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 685,411 | 641,987 | |
Pass | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 646,274 | 591,376 | |
Pass | Consumer and Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 39,137 | 50,611 | |
Pass | Guaranteed By U.S. Government | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 3,715 | 4,933 | |
Pass | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 17,147 | 27,607 | |
Pass | One To Four Family - Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 129,656 | 136,910 | |
Pass | One To Four Family - Non Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 106,143 | 120,712 | |
Pass | Commercial Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 96,285 | 83,923 | |
Pass | Commercial Investor | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 279,137 | 220,096 | |
Pass | Construction and Land | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 20,176 | 15,912 | |
Pass | Farm Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 14,877 | 13,823 | |
Pass | Marine Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 16,386 | 15,732 | |
Pass | Other Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,889 | 2,339 | |
Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 400 | ||
Special Mention | Consumer and Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 400 | ||
Special Mention | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 400 | ||
Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 18,991 | 22,424 | |
Substandard | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 18,290 | 21,898 | |
Substandard | Consumer and Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 701 | 526 | |
Substandard | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 697 | 445 | |
Substandard | One To Four Family - Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 370 | 832 | |
Substandard | One To Four Family - Non Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,947 | 4,353 | |
Substandard | Commercial Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 6,227 | 7,930 | |
Substandard | Commercial Investor | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 8,057 | 6,758 | |
Substandard | Construction and Land | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,689 | 2,025 | |
Substandard | Marine Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 59 | ||
Substandard | Other Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 4 | $ 22 |
Loans Receivable - Schedule o_6
Loans Receivable - Schedule of Loan Portfolio Delinquencies (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 704,802 | $ 8,045 | $ 664,411 |
Guaranteed By U.S. Government | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 3,715 | 4,933 | |
Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 18,244 | 28,052 | |
30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,502 | 4,511 | |
60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,046 | 1,109 | |
90+ Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 8,471 | 4,983 | |
Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 14,019 | 10,603 | |
Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 690,783 | 653,808 | |
One To Four Family - Owner Occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 130,026 | 137,742 | |
One To Four Family - Non Owner Occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 108,090 | 125,065 | |
Commercial Owner Occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 102,512 | 91,853 | |
Commercial Investor | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 287,194 | 226,854 | |
Construction and Land | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 21,865 | 17,937 | |
Farm Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 14,877 | 13,823 | |
Marine Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 16,386 | 15,791 | |
Other Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,893 | 2,361 | |
Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 664,564 | 613,274 | |
Real Estate | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,463 | 4,446 | |
Real Estate | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 645 | 1,109 | |
Real Estate | 90+ Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 8,471 | 4,924 | |
Real Estate | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 13,579 | 10,479 | |
Real Estate | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 650,985 | 602,795 | |
Real Estate | One To Four Family - Owner Occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 130,026 | 137,742 | |
Real Estate | One To Four Family - Owner Occupied | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 2,043 | 2,311 | |
Real Estate | One To Four Family - Owner Occupied | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 645 | 793 | |
Real Estate | One To Four Family - Owner Occupied | 90+ Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 619 | 896 | |
Real Estate | One To Four Family - Owner Occupied | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 3,307 | 4,000 | |
Real Estate | One To Four Family - Owner Occupied | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 126,719 | 133,742 | |
Real Estate | One To Four Family - Non Owner Occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 108,090 | 125,065 | |
Real Estate | One To Four Family - Non Owner Occupied | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 322 | 777 | |
Real Estate | One To Four Family - Non Owner Occupied | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 170 | ||
Real Estate | One To Four Family - Non Owner Occupied | 90+ Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 219 | 379 | |
Real Estate | One To Four Family - Non Owner Occupied | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 541 | 1,326 | |
Real Estate | One To Four Family - Non Owner Occupied | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 107,549 | 123,739 | |
Real Estate | Commercial Owner Occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 102,512 | 91,853 | |
Real Estate | Commercial Owner Occupied | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 901 | 1,048 | |
Real Estate | Commercial Owner Occupied | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 103 | ||
Real Estate | Commercial Owner Occupied | 90+ Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 468 | 2,056 | |
Real Estate | Commercial Owner Occupied | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,369 | 3,207 | |
Real Estate | Commercial Owner Occupied | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 101,143 | 88,646 | |
Real Estate | Commercial Investor | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 287,194 | 226,854 | |
Real Estate | Commercial Investor | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 371 | 310 | |
Real Estate | Commercial Investor | 90+ Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 6,907 | 1,433 | |
Real Estate | Commercial Investor | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 7,278 | 1,743 | |
Real Estate | Commercial Investor | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 279,916 | 225,111 | |
Real Estate | Construction and Land | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 21,865 | 17,937 | |
Real Estate | Construction and Land | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 826 | ||
Real Estate | Construction and Land | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 43 | ||
Real Estate | Construction and Land | 90+ Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 258 | 160 | |
Real Estate | Construction and Land | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,084 | 203 | |
Real Estate | Construction and Land | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 20,781 | 17,734 | |
Real Estate | Farm Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 14,877 | 13,823 | |
Real Estate | Farm Loans | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 14,877 | 13,823 | |
Consumer and Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 40,238 | 51,137 | |
Consumer and Commercial | Guaranteed By U.S. Government | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 3,715 | 4,933 | |
Consumer and Commercial | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 18,244 | 28,052 | |
Consumer and Commercial | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 39 | 65 | |
Consumer and Commercial | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 401 | ||
Consumer and Commercial | 60 - 89 Days Past Due | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 401 | ||
Consumer and Commercial | 90+ Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 59 | ||
Consumer and Commercial | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 440 | 124 | |
Consumer and Commercial | Total Past Due | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 401 | ||
Consumer and Commercial | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 39,798 | 51,013 | |
Consumer and Commercial | Current Loans | Guaranteed By U.S. Government | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 3,715 | 4,933 | |
Consumer and Commercial | Current Loans | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 17,843 | 28,052 | |
Consumer and Commercial | Marine Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 16,386 | 15,791 | |
Consumer and Commercial | Marine Loans | 90+ Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 59 | ||
Consumer and Commercial | Marine Loans | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 59 | ||
Consumer and Commercial | Marine Loans | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 16,386 | 15,732 | |
Consumer and Commercial | Other Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,893 | 2,361 | |
Consumer and Commercial | Other Consumer | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 39 | 65 | |
Consumer and Commercial | Other Consumer | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 39 | 65 | |
Consumer and Commercial | Other Consumer | Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 1,854 | $ 2,296 |
Loans Receivable - Schedule o_7
Loans Receivable - Schedule of Non-accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | $ 10,554 | $ 5,884 |
Non-accrual loans, Total | 10,554 | 5,884 |
Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | 10,550 | 5,803 |
Non-accrual loans, Total | 10,550 | 5,803 |
Real Estate | One To Four Family - Owner Occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | 1,160 | 1,371 |
Non-accrual loans, Total | 1,160 | 1,371 |
Real Estate | One To Four Family - Non Owner Occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | 273 | 585 |
Non-accrual loans, Total | 273 | 585 |
Real Estate | Commercial Owner Occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | 739 | 2,167 |
Non-accrual loans, Total | 739 | 2,167 |
Real Estate | Commercial Investor | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | 8,057 | 1,433 |
Non-accrual loans, Total | 8,057 | 1,433 |
Real Estate | Construction and Land | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | 321 | 247 |
Non-accrual loans, Total | 321 | 247 |
Consumer and Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | 4 | 81 |
Non-accrual loans, Total | 4 | 81 |
Consumer and Commercial | Marine Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | 59 | |
Non-accrual loans, Total | 59 | |
Consumer and Commercial | Other Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans, No Allowance | 4 | 22 |
Non-accrual loans, Total | $ 4 | $ 22 |
Loans Receivable - Status of TD
Loans Receivable - Status of TDRs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) Contract | |
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | 5 | 13 |
Recorded Investment | $ 1,531 | $ 1,433 |
Performing | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | 1,177 | |
Non Performing | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | $ 256 | |
Real Estate Loans | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | Contract | 1 | |
Recorded Investment | $ 29 | |
Real Estate Loans | One To Four Family - Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | Contract | 8 | |
Recorded Investment | $ 815 | |
Real Estate Loans | One To Four Family - Non Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | Contract | 1 | |
Recorded Investment | $ 70 | |
Real Estate Loans | Commercial Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | Contract | 2 | |
Recorded Investment | $ 320 | |
Real Estate Loans | Commercial Investor | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | Contract | 1 | |
Recorded Investment | $ 205 | |
Real Estate Loans | Other Consumer | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | Contract | 1 | |
Recorded Investment | $ 23 | |
Real Estate Loans | Performing | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | 29 | |
Real Estate Loans | Performing | One To Four Family - Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | 559 | |
Real Estate Loans | Performing | One To Four Family - Non Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | 70 | |
Real Estate Loans | Performing | Commercial Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | 320 | |
Real Estate Loans | Performing | Commercial Investor | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | 205 | |
Real Estate Loans | Performing | Other Consumer | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | 23 | |
Real Estate Loans | Non Performing | One To Four Family - Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | $ 256 |
Loans Receivable - Summary of I
Loans Receivable - Summary of Impaired Loans by Class of Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 0 | |
With an Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 170,000 | |
Unpaid Principal | 170,000 | |
Related Allowance | 30,000 | |
Average Recorded Investment | 174,000 | |
Interest Income Recognized | 8,000 | |
With no Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 6,179,000 | |
Unpaid Principal | 6,183,000 | |
Average Recorded Investment | 7,006,000 | |
Interest Income Recognized | 344,000 | |
With no Allowance Recorded, Real Estate Loans | Guaranteed By U.S. Government | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 15,000 | |
With no Allowance Recorded, Real Estate Loans | Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 2,000 | |
Combined Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 6,349,000 | |
Unpaid Principal | 6,353,000 | |
Related Allowance | 30,000 | |
Average Recorded Investment | 7,180,000 | |
Interest Income Recognized | 352,000 | |
Combined Real Estate Loans | Guaranteed By U.S. Government | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 15,000 | |
Combined Real Estate Loans | Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 2,000 | |
One To Four Family - Owner Occupied | With an Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 100,000 | |
Unpaid Principal | 100,000 | |
Related Allowance | 28,000 | |
Average Recorded Investment | 103,000 | |
Interest Income Recognized | 4,000 | |
One To Four Family - Owner Occupied | With no Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,956,000 | |
Unpaid Principal | 1,956,000 | |
Average Recorded Investment | 2,789,000 | |
Interest Income Recognized | 93,000 | |
One To Four Family - Owner Occupied | Combined Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 2,056,000 | |
Unpaid Principal | 2,056,000 | |
Related Allowance | 28,000 | |
Average Recorded Investment | 2,892,000 | |
Interest Income Recognized | 97,000 | |
One To Four Family - Non Owner Occupied | With an Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 70,000 | |
Unpaid Principal | 70,000 | |
Related Allowance | 2,000 | |
Average Recorded Investment | 71,000 | |
Interest Income Recognized | 4,000 | |
One To Four Family - Non Owner Occupied | With no Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 585,000 | |
Unpaid Principal | 585,000 | |
Average Recorded Investment | 632,000 | |
Interest Income Recognized | 39,000 | |
One To Four Family - Non Owner Occupied | Combined Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 655,000 | |
Unpaid Principal | 655,000 | |
Related Allowance | 2,000 | |
Average Recorded Investment | 703,000 | |
Interest Income Recognized | 43,000 | |
Commercial Owner Occupied | With no Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,854,000 | |
Unpaid Principal | 1,854,000 | |
Average Recorded Investment | 1,406,000 | |
Interest Income Recognized | 77,000 | |
Commercial Owner Occupied | Combined Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,854,000 | |
Unpaid Principal | 1,854,000 | |
Average Recorded Investment | 1,406,000 | |
Interest Income Recognized | 77,000 | |
Commercial Investor | With no Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,432,000 | |
Unpaid Principal | 1,432,000 | |
Average Recorded Investment | 1,889,000 | |
Interest Income Recognized | 99,000 | |
Commercial Investor | Combined Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,432,000 | |
Unpaid Principal | 1,432,000 | |
Average Recorded Investment | 1,889,000 | |
Interest Income Recognized | 99,000 | |
Construction and Land | With no Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 248,000 | |
Unpaid Principal | 248,000 | |
Average Recorded Investment | 203,000 | |
Interest Income Recognized | 26,000 | |
Construction and Land | Combined Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 248,000 | |
Unpaid Principal | 248,000 | |
Average Recorded Investment | 203,000 | |
Interest Income Recognized | 26,000 | |
Marine Loans | With no Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 59,000 | |
Unpaid Principal | 59,000 | |
Average Recorded Investment | 15,000 | |
Interest Income Recognized | 3,000 | |
Marine Loans | Combined Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 59,000 | |
Unpaid Principal | 59,000 | |
Average Recorded Investment | 15,000 | |
Interest Income Recognized | 3,000 | |
Other Consumer | With no Allowance Recorded, Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 45,000 | |
Unpaid Principal | 49,000 | |
Average Recorded Investment | 56,000 | |
Interest Income Recognized | 7,000 | |
Other Consumer | Combined Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 45,000 | |
Unpaid Principal | 49,000 | |
Average Recorded Investment | 56,000 | |
Interest Income Recognized | $ 7,000 |
Loans Receivable - Schedule o_8
Loans Receivable - Schedule of TDRs and BEFD Modifications Included in Individually Assessed Loan (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) Contract | |
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | 5 | 13 |
Recorded Investment | $ 1,531 | $ 1,433 |
Performing | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | $ 1,177 | |
Real Estate Loans | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | Contract | 1 | |
Recorded Investment | $ 29 | |
Real Estate Loans | Performing | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | $ 29 | |
Real Estate Loans | One To Four Family - Owner Occupied | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | Contract | 1 | |
Recorded Investment | $ 29 | |
Real Estate Loans | One To Four Family - Owner Occupied | Performing | ||
Financing Receivable, Modified [Line Items] | ||
Recorded Investment | $ 29 |
Loans Receivable - Non-Accretab
Loans Receivable - Non-Accretable Yield (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Certain Loans Acquired InTransfer Not Accounted For As Debt Securities Non Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | $ 1,440 |
Accretion | (190) |
Balance at end of period | $ 1,250 |
Loans Receivable - Summary of O
Loans Receivable - Summary of Outstanding Balances and Related Carrying Amounts For Purchased Credit Impaired Loans (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Contractually required payments receivable | $ 6,354 |
Carrying amount | $ 5,104 |
Loans Receivable - Summary of_2
Loans Receivable - Summary of Commitments To Extend Credit (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit risk | $ 50,306 | $ 67,144 |
Available Lines of Credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit risk | 49,371 | 66,166 |
Letter of Credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit risk | $ 935 | $ 978 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 19,143 | $ 19,255 |
Accumulated depreciation | (4,893) | (4,079) |
Premises and equipment, net of accumulated depreciation | 14,250 | 15,176 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 3,510 | 3,706 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 12,289 | 12,364 |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Useful life | 40 years | |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Useful life | 15 years | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 317 | 306 |
Leasehold Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Useful life | 10 years | |
Leasehold Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Useful life | 5 years | |
Furniture, Fixtures, and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 3,027 | $ 2,879 |
Furniture, Fixtures, and Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Useful life | 10 years | |
Furniture, Fixtures, and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Useful life | 3 years |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 869,000 | $ 860,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Jan. 01, 2022 | |
Indefinite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangible acquired | $ 85,000 | |||
Core deposit intangible | $ 85,000 | |||
Gain on bargain purchase | 1,340,000 | |||
Goodwill | 14,420,000 | $ 14,420,000 | ||
North Arundel Savings Bank | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangible acquired | $ 85,000 | |||
Gain on bargain purchase | $ 1,300,000 | $ 1,340,000 | ||
Core deposit amortized period | 10 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Activity in Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Roll Forward] | ||
Net carrying amount at beginning of period | $ 1,195 | $ 1,293 |
Core deposit intangible from the mergers | 85 | |
Amortization | (183) | (183) |
Net carrying amount at end of the period | $ 1,012 | $ 1,195 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2024 | $ 180 | ||
2025 | 180 | ||
2026 | 180 | ||
2027 | 180 | ||
2028 | 180 | ||
Thereafter | 112 | ||
Total Estimated Amortization Expense | $ 1,012 | $ 1,195 | $ 1,293 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | |||
Net | $ 1,012 | $ 1,195 | $ 1,293 |
Core Deposits Intangible | |||
Finite-Lived Intangible Assets [Line Items] | |||
Carrying Amount | 1,868 | 1,868 | |
Accumulated Amortization | 856 | 673 | |
Net | $ 1,012 | $ 1,195 |
Deposits - Additional Informati
Deposits - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) CustomerRelationship | Dec. 31, 2022 USD ($) | |
Deposit Liability [Line Items] | ||
Time deposits 250000 or more | $ | $ 32.1 | $ 28.6 |
Customer Concentration Risk | Sales Revenue, Net | ||
Deposit Liability [Line Items] | ||
Concentration risk, customer with deposits exceeding threshold | CustomerRelationship | 2 | |
Concentration risk percentage of total deposits | 1.60% | |
Customer Concentration Risk | Sales Revenue, Net | Product | ||
Deposit Liability [Line Items] | ||
Concentration Risk, Percentage | 3.30% |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits, by Type [Abstract] | ||
Non-interest-bearing checking accounts | $ 142,030 | $ 167,202 |
Interest-bearing checking accounts | 83,656 | 96,829 |
Money market accounts | 87,310 | 102,301 |
Savings accounts | 147,608 | 171,772 |
Certificates of deposit | 173,516 | 146,514 |
Total deposits | $ 634,120 | $ 684,618 |
Noninterest-bearing checking accounts, Percent | 22.40% | 24.42% |
Interest-bearing checking accounts, Percent | 13.19% | 14.14% |
Money market accounts, Percent | 13.77% | 14.94% |
Savings accounts, Percent | 23.28% | 25.09% |
Certificates of deposit, Percent | 27.36% | 21.41% |
Total Deposits, Percent | 100% | 100% |
Deposits - Schedule of Contract
Deposits - Schedule of Contractual Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits, by Type [Abstract] | ||
2024 | $ 111,396 | |
2025 | 43,874 | |
2026 | 5,097 | |
2027 | 7,377 | |
2028 | 5,772 | |
Thereafter | ||
Total certificates of deposit | $ 173,516 | $ 146,514 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total Borrowings, gross | $ 38,093 | $ 50,093 |
Less: Debt issuance costs | (272) | (427) |
Less: net fair value adjustment | (570) | (627) |
Total Borrowings, net | $ 37,251 | $ 49,039 |
Federal Home Loan Bank Advances | ||
Debt Instrument [Line Items] | ||
Maturity | 2023 | 2023 |
Total Borrowings, gross | $ 12,000 | |
Rate | 4.58% | |
BV Financial Inc. Series 2020 Notes | ||
Debt Instrument [Line Items] | ||
Maturity | 2030 | 2030 |
Total Borrowings, gross | $ 35,000 | $ 35,000 |
Rate | 4.875% | 4.88% |
Easton Capital Trust I | ||
Debt Instrument [Line Items] | ||
Maturity | 2034 | 2034 |
Total Borrowings, gross | $ 3,093 | $ 3,093 |
Easton Capital Trust I | SOFR [Member] | ||
Debt Instrument [Line Items] | ||
Variable Rate | 2.85% | |
Easton Capital Trust I | London Interbank Offered Rate [Member] | ||
Debt Instrument [Line Items] | ||
Variable Rate | 2.85% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
FHLB borrowings | $ 0 | $ 12,000,000 | |
Borrowings | 38,093,000 | 50,093,000 | |
Equity Investment | $ 256,000 | 221,000 | |
Federal Home Loan Bank Advances | |||
Debt Instrument [Line Items] | |||
Percentage of assets pledged as collateral | 25% | ||
Line of credit | $ 150,000,000 | 96,800,000 | |
Loan pledged as collateral | $ 175,000,000 | 148,900,000 | |
Borrowings | $ 12,000,000 | ||
Rate | 4.58% | ||
Maturity | 2023 | 2023 | |
Federal Home Loan Bank Advances | Unfunded Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit | $ 25,000,000 | $ 40,000,000 | |
Federal Home Loan Bank Advances | Unsecured Demand Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit | 20,000,000 | 0 | |
BV Financial Inc. Series 2020 Notes | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 35,000,000 | $ 35,000,000 | |
Rate | 4.875% | 4.88% | |
Maturity | 2030 | 2030 | |
Amortization | $ 272,000 | ||
Issuance costs | $ 738,000 | ||
Debt instrument, interest rate terms | The interest rate on these notes is fixed for the first five years at 4.875% and then will reset quarterly to an interest rate per annum equal to the then current three-month term Secured Overnight Financing Rate (“SOFR”) (provided, however that in the event the three-month SOFR is less than zero, three-month term SOFR shall be deemed to be zero) plus 472 basis points, payable quarterly in arrears. | ||
BV Financial Inc. Series 2020 Notes | SOFR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Variable Rate | 0% | ||
Easton Capital Trust I | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 3,093,000 | $ 3,093,000 | |
Maturity | 2034 | 2034 | |
Equity Investment | $ 93,000 | ||
Easton Capital Trust I | Junior Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt acquired | $ 3,000,000 | ||
Maturity date | Feb. 08, 2034 | ||
Easton Capital Trust I | SOFR [Member] | |||
Debt Instrument [Line Items] | |||
Variable Rate | 2.85% | ||
Easton Capital Trust I | SOFR [Member] | Junior Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Variable Rate | 2.85% | ||
Easton Capital Trust I | SOFR [Member] | Debenture [Member] | |||
Debt Instrument [Line Items] | |||
Rate | 8.49% | ||
Easton Capital Trust I | London Interbank Offered Rate [Member] | |||
Debt Instrument [Line Items] | |||
Variable Rate | 2.85% | ||
Delmarva Two Thousand Fifteen Senior Notes [Member] | Delmarva Bancshares, Inc [Member] | |||
Debt Instrument [Line Items] | |||
Fair market value of debt discount | $ 739,000 | ||
Fair market value of debt premium | $ 203,000 |
Profit Sharing and Deferred C_2
Profit Sharing and Deferred Compensation Agreements - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) Executive | Dec. 31, 2022 USD ($) | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Defined maximum contribution percent | 5% | |
Defined contribution expenses | $ 79,000 | $ 72,000 |
Accrued employee profit-sharing plan | $ 0 | 0 |
Executives annual benefit in monthly installments | 15 years | |
Accrued liabilities for executive retirement agreements | $ 2,300,000 | 2,300,000 |
Director retirement agreements | 225,000 | 256,000 |
Deferred compensation plan expense | 185,000 | 182,000 |
Post employment benefits recorded liability | $ 275,000 | 292,000 |
Retired Executive Officers | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Defined contribution plan, number of employees | Executive | 4 | |
Deferred compensation arrangement benefits paid | $ 251,000 | $ 248,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2042 USD ($) | Dec. 31, 2041 USD ($) | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 14, 2017 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock options, shares exercisable | shares | 55,648 | 55,648 | |||
Exercise price of stock option granted | $ / shares | $ 5.65 | ||||
Vesting period | 5 years | ||||
Expiration period | 10 years | ||||
Restricted stock, shares granted | shares | 18,784 | 22,718 | |||
Shares issued to ESOP | shares | 783,918 | ||||
Percentage of aggreegate purchase price | 100% | ||||
ESOP expense | $ | $ 557,000 | $ 0 | |||
Loan borrowed by ESOP | $ | $ 7,800,000 | ||||
Interest rate of Loan | 8.50% | ||||
Bay Vanguard Bank | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Percentage of stock owned by trustees | 8% | ||||
Scenario Forecast | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
ESOP shares committed to be released | $ | $ 39,194 | $ 39,196 | |||
Employee Stock Option | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock options, shares exercisable | shares | 55,648 | 55,648 | |||
Compensation expense recognized | $ | $ 0 | $ 3,250 | |||
Future compensation expense | $ | $ 0 | $ 0 | |||
Conversion Ratio | 1.5309 | 1.5309 | |||
Restricted Stock | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Compensation expense recognized | $ | $ 255,000 | $ 253,000 | |||
Future compensation expense | $ | $ 151,150 | $ 172,800 | |||
Conversion Ratio | 1.5309 | ||||
Officers and Employees | Employee Stock Option | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Number of shares granted | shares | 79,607 | ||||
Stock options, shares exercisable | shares | 55,648 | 36,350 | |||
Officers and Employees | Restricted Stock | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Restricted stock, shares granted | shares | 18,784 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Employee Options Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Shares, Outstanding at beginning of period | 55,648 | |
Shares, Outstanding at end of period | 55,648 | 55,648 |
Shares, Exercisable at end of period | 55,648 | 55,648 |
Weighted average exercise price, Granted | $ 5.65 | |
Employee Stock Option | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Shares, Outstanding at beginning of period | 55,648 | 60,624 |
Shares, Exercised | 4,976 | |
Shares, Outstanding at end of period | 55,648 | 55,648 |
Shares, Exercisable at end of period | 55,648 | 55,648 |
Weighted average exercise price, Outstanding at beginning of period | $ 5.65 | $ 5.65 |
Weighted average exercise price, Exercised | 5.65 | |
Weighted average exercise price, Outstanding at end of period | 5.65 | 5.65 |
Weighted average exercise price, Exercisable at end of period | $ 5.65 | $ 5.65 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Stock Options Outstanding (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Outstanding shares | 55,648 | 55,648 | |
Outstanding shares, Intrinsic value | $ 474,677 | $ 594,323 | |
Exercisable shares | 55,648 | 55,648 | |
Exercisable shares, Intrinsic value | $ 594,323 | $ 594,323 | |
Employee Stock Option | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted average exercise price | $ 5.65 | $ 5.65 | $ 5.65 |
Outstanding shares | 55,648 | 55,648 | 60,624 |
Remaining life (years) | 5 years | 4 years | |
Exercisable shares | 55,648 | 55,648 |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary of Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Common Shares, Restricted stock beginning balance | 31,083 | 21,586 |
Number of Common Shares, Granted | 18,784 | 22,718 |
Number of Common Shares, Vested | (19,747) | (13,221) |
Number of Common Shares, Restricted stock ending balance | 30,120 | 31,083 |
Weighted Average Grant Date Fair Value/Share, Restricted Stock beginning balance | $ 13.15 | $ 11.8 |
Weighted Average Grant Date Fair Value/Share, Granted | 14.67 | 14.1 |
Weighted Average Grant Date Fair Value/Share, Vested | 14.63 | 12.59 |
Weighted Average Grant Date Fair Value/Share, Restricted Stock ending balance | $ 14.3 | $ 13.15 |
Employee Benefit Plans - Summ_4
Employee Benefit Plans - Summary of Share Information Held by the ESOP (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares committed to be released | 39,196 |
Unallocated shares (suspense shares) | 744,722 |
Total shares | 783,918 |
Fair value of unallocated shares | $ | $ 10,560,158 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Regulated Operations [Abstract] | ||
Common Equity Tier 1 Capital Ratio (to risk-weighted assets), Well Capitalized ratio | 0.065 | 0.065 |
Tier 1 risk-based capital ratio, Well Capitalized ratio | 0.08 | 0.08 |
Total risk-based capital ratio, Well Capitalized ratio | 0.10 | 0.10 |
Tier 1 Leverage ratio, Well Capitalized ratio | 0.05 | 0.05 |
Capital conservation buffer | 0.025 | |
Retained earnings | $ 1,500,000 | $ 1,500,000 |
Deferred income tax liability | $ 413,000 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Compliance with Regulatory Capital Requirements (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Regulated Operations [Abstract] | ||
Tier 1 Leverage ratio, Actual amount | $ 162,125 | $ 109,939 |
Tier 1 Leverage ratio, Actual ratio | 0.185 | 0.1339 |
Tier 1 capital (to risk-weighted assets), Actual amount | $ 162,125 | $ 109,939 |
Tier 1 capital (to risk-weighted assets), Actual ratio | 0.24 | 0.1676 |
Common Equity Tier 1 Capital Ratio (to risk-weighted assets), Actual amount | $ 162,125 | $ 109,939 |
Common Equity Tier 1 Capital Ratio (to risk-weighted assets), Actual ratio | 0.24 | 0.1676 |
Total Capital ratio (to risk-weighted assets), Actual amount | $ 170,571 | $ 113,757 |
Total Capital ratio (to risk-weighted assets), Actual ratio | 0.2526 | 0.1734 |
Tier 1 Leverage ratio, For capital adequacy purposes amount | $ 35,055 | $ 32,845 |
Tier 1 Leverage ratio, For capital adequacy purposes ratio | 0.04 | 0.04 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes amount | $ 40,523 | $ 39,361 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes ratio | 0.06 | 0.085 |
Common Equity Tier 1 Capital Ratio (to risk-weighted assets), For capital adequacy purposes amount | $ 30,393 | $ 29,521 |
Common Equity Tier 1 Capital Ratio (to risk-weighted assets), For capital adequacy purposes ratio | 0.045 | 0.07 |
Total Capital ratio (to risk-weighted assets), For capital adequacy purposes amount | $ 54,031 | $ 52,482 |
Total Capital ratio (to risk-weighted assets), For capital adequacy purposes ratio | 0.08 | 0.105 |
Tier 1 Leverage ratio, Well Capitalized amount | $ 43,819 | $ 41,057 |
Tier 1 Leverage ratio, Well Capitalized ratio | 0.05 | 0.05 |
Tier 1 capital (to risk-weighted assets), Well Capitalized ratio | $ 54,031 | $ 52,482 |
Tier 1 capital (to risk-weighted assets), Well Capitalized ratio | 0.08 | 0.08 |
Common Equity Tier 1 Capital Ratio (to risk-weighted assets), Well Capitalized amount | $ 43,900 | $ 42,642 |
Common Equity Tier 1 Capital Ratio (to risk-weighted assets), Well Capitalized ratio | 0.065 | 0.065 |
Total Capital ratio (to risk-weighted assets), Well Capitalized amount | $ 67,539 | $ 65,602 |
Total Capital ratio (to risk-weighted assets), Well Capitalized ratio | 0.10 | 0.10 |
Related-Party Transactions - Su
Related-Party Transactions - Summary of Activity of Loans Receivable From Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Balance, beginning | $ 17 | $ 37 |
New related party | 96 | |
Repayments | (17) | (20) |
Balance, ending | $ 96 | $ 17 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Deposits of related parties | $ 1,800,000 | $ 1,900,000 |
Operating lease payment on related party | $ 20,000 |
Related-Party Transactions - _2
Related-Party Transactions - Summary of Future Operating Lease Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Related Party Transaction [Line Items] | |
2024 | $ 243 |
2025 | 464 |
2026 | 127 |
2027 | 64 |
2028 | 64 |
Thereafter | 229 |
Total undiscounted lease payments | 1,191 |
Related Party | |
Related Party Transaction [Line Items] | |
2024 | 48 |
2025 | 50 |
2026 | 51 |
2027 | 53 |
2028 | 55 |
Thereafter | 271 |
Total undiscounted lease payments | $ 528 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current expense | ||
Federal | $ 3,185 | $ 2,466 |
State | 1,523 | 1,255 |
Total Current Expense | 4,708 | 3,721 |
Deferred expense | 207 | 308 |
Income Tax Expense | $ 4,915 | $ 4,029 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Deferred compensation | $ 689 | $ 715 |
Allowance for credit losses | 2,425 | 1,061 |
Merger fair value adjustments | 1,587 | 2,497 |
Foreclosed real estate write-downs and deferred gain | 7 | 273 |
Stock grants | 78 | |
Net operating loss carryover | 6,556 | 7,011 |
Non-accrual interest | 260 | 66 |
Other | 1,377 | 1,526 |
Total deferred tax assets | 12,979 | 13,149 |
Deferred tax liabilities | ||
Prepaid expenses | 220 | 145 |
Core deposit intangible | 278 | 329 |
Depreciation | 3,512 | 3,562 |
Total deferred tax liabilities | 4,010 | 4,036 |
Total deferred tax assets, net | $ 8,969 | $ 9,113 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Amount | ||
Statutory federal income tax rate | $ 3,909 | $ 3,262 |
State tax, net of federal income tax provision | 1,261 | 1,018 |
Tax exempt income | (142) | (787) |
Nondeductible merger expenses | (3) | 373 |
Other | (110) | 163 |
Income Tax Expense | $ 4,915 | $ 4,029 |
Percent of pretax income | ||
Statutory federal income tax rate | 21% | 22.40% |
State tax, net of federal income tax provision | 6.80% | 7% |
Tax exempt income | (0.80%) | (5.40%) |
Nondeductible merger expenses | 0% | 2.60% |
Other | (0.60%) | 1.10% |
Income Tax Expense | 26.40% | 27.70% |
Leasing Arrangements - Schedule
Leasing Arrangements - Schedule of Operating Lease Right of Use Asset and Operating Lease Liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease right of use asset | $ 1,128,000 | $ 617,000 |
Operating lease, right-of-use asset, statement of financial position [extensible enumeration] | Other assets | Other assets |
Operating lease liabilities | $ 1,162,000 | $ 645,000 |
Operating lease, liability, statement of financial position [extensible enumeration] | Other liabilities | Other liabilities |
Other Information Related To Leases [Abstract] | ||
Weighted average remaining lease term of operating leases | 5 years 6 months | 3 years 10 months 24 days |
Weighted average discount rate of operating leases | 4.26% | 3.74% |
Cash paid for amounts included in the measurement of lease liabilities | $ 197,000 | $ 220,000 |
Leasing Arrangements - Addition
Leasing Arrangements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 259,000 | $ 273,000 |
Rental income received | $ 163,000 |
Lease Arrangements - Schedule o
Lease Arrangements - Schedule of Future Undiscounted Lease Payments For Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 243 | |
2025 | 464 | |
2026 | 127 | |
2027 | 64 | |
2028 | 64 | |
Thereafter | 229 | |
Total undiscounted lease payments | 1,191 | |
Less: imputed interest | (29) | |
Present value of operating lease liabilities | $ 1,162 | $ 645 |
Lease Arrangements - Schedule_2
Lease Arrangements - Schedule of Future Operating Lease Payments Received (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 168 |
2025 | 173 |
2026 | 178 |
2027 | 183 |
2028 | 189 |
Thereafter | 813 |
Total | $ 1,704 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Securities available for sale | ||
Securities held to available for sale | $ 34,781 | $ 33,034 |
Level 2 | ||
Securities available for sale | ||
Securities held to available for sale | 34,781 | 33,034 |
Fair Value Measurements Recurring | ||
Securities available for sale | ||
Securities held to available for sale | 34,781 | 33,034 |
Fair Value Measurements Recurring | Level 2 | ||
Securities available for sale | ||
Securities held to available for sale | 34,781 | 33,034 |
Corporate securities | ||
Securities available for sale | ||
Securities held to available for sale | 1,418 | 1,932 |
Corporate securities | Fair Value Measurements Recurring | ||
Securities available for sale | ||
Securities held to available for sale | 1,418 | |
Corporate securities | Fair Value Measurements Recurring | Level 2 | ||
Securities available for sale | ||
Securities held to available for sale | 1,418 | |
Mortgage-backed Securities | ||
Securities available for sale | ||
Securities held to available for sale | 28,640 | 31,102 |
Mortgage-backed Securities | Fair Value Measurements Recurring | ||
Securities available for sale | ||
Securities held to available for sale | 28,640 | 31,102 |
Mortgage-backed Securities | Fair Value Measurements Recurring | Level 2 | ||
Securities available for sale | ||
Securities held to available for sale | 28,640 | 31,102 |
U.S. government agency securities | Fair Value Measurements Recurring | ||
Securities available for sale | ||
Securities held to available for sale | 1,932 | |
U.S. government agency securities | Fair Value Measurements Recurring | Level 2 | ||
Securities available for sale | ||
Securities held to available for sale | $ 1,932 | |
Agency securities | ||
Securities available for sale | ||
Securities held to available for sale | 4,723 | |
Agency securities | Fair Value Measurements Recurring | ||
Securities available for sale | ||
Securities held to available for sale | 4,723 | |
Agency securities | Fair Value Measurements Recurring | Level 2 | ||
Securities available for sale | ||
Securities held to available for sale | $ 4,723 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Assets Measured at Fair Value on Non Recurring Basis (Details) - Fair value nonrecurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 10,724 | $ 8,336 |
Foreclosed real estate and repossessed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 170 | 1,987 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 10,724 | 8,336 |
Level 3 | Foreclosed real estate and repossessed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 170 | $ 1,987 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Other Real Estate and Foreclosed Real Estate and Repossessed assets Rollforward Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Foreclosed Real Estate And Other Repossessed Assets Abstract | ||
Beginning of period balance | $ 1,987 | $ 1,987 |
Improvements and additions | 57 | |
Proceeds from sale | (2,583) | |
Gain (loss) on sale | 709 | 0 |
End of period balance | $ 170 | $ 1,987 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets | ||
Securities held to maturity | $ 9,206 | $ 9,660 |
Securities held to available for sale | 34,781 | 33,034 |
Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 73,742 | 68,652 |
Level 2 | ||
Financial assets | ||
Securities held to maturity | 9,206 | 9,906 |
Securities held to available for sale | 34,781 | 33,034 |
Federal Home Loan Bank of Atlanta stock | 626 | 977 |
Accrued interest receivable | 3,279 | 2,952 |
Financial liabilities | ||
Accrued interest payable | 193 | 110 |
Level 3 | ||
Financial assets | ||
Loans receivable | 686,879 | 639,027 |
Financial liabilities | ||
Deposits | 631,720 | 551,348 |
FHLB Borrowings | 11,976 | |
Subordinated Debentures | 31,018 | 33,595 |
Carrying Amount | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 73,742 | 68,652 |
Carrying Amount | Level 2 | ||
Financial assets | ||
Securities held to maturity | 10,209 | 10,461 |
Securities held to available for sale | 34,781 | 33,034 |
Federal Home Loan Bank of Atlanta stock | 626 | 977 |
Accrued interest receivable | 3,279 | 2,952 |
Financial liabilities | ||
Accrued interest payable | 193 | 110 |
Carrying Amount | Level 3 | ||
Financial assets | ||
Loans receivable | 696,248 | 659,131 |
Financial liabilities | ||
Deposits | 634,120 | 684,618 |
FHLB Borrowings | 12,000 | |
Subordinated Debentures | $ 37,251 | $ 37,039 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Residential mortgages in the process of foreclosure | $ 174,000 | $ 114,000 |
Percentage of collateral appraised value | 10% |
Condensed Financial Informati_3
Condensed Financial Information (Parent Company Only) - Statement of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Cash | $ 9,260 | $ 12,704 | |
Equity Investment | 256 | 221 | |
Goodwill | 14,420 | 14,420 | |
Other assets | 7,635 | 7,661 | |
Total assets | 885,254 | 844,963 | |
Liabilities and Stockholders' Equity | |||
Borrowings | 37,251 | 37,039 | |
Other liabilities | 14,818 | 13,555 | |
Total liabilities | 686,189 | 747,212 | |
Total Stockholders Equity | 199,065 | 97,751 | $ 83,446 |
Total liabilities and stockholders' equity | 885,254 | 844,963 | |
BV Financial, Inc. | |||
Assets | |||
Cash | 45,625 | 3,820 | |
Equity Investment | 256 | 221 | |
ESOP loan receivable | 7,328 | ||
Investment in subsidiary | 175,366 | 123,436 | |
Goodwill | 6,326 | 6,326 | |
Other assets | 1,491 | 1,056 | |
Total assets | 236,392 | 134,859 | |
Liabilities and Stockholders' Equity | |||
Borrowings | 37,251 | 37,039 | |
Other liabilities | 76 | 69 | |
Total liabilities | 37,327 | 37,108 | |
Total Stockholders Equity | 199,065 | 97,751 | |
Total liabilities and stockholders' equity | $ 236,392 | $ 134,859 |
Condensed Financial Informati_4
Condensed Financial Information (Parent Company Only) - Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest income | $ 43,419 | $ 33,350 |
Interest Expense | 9,190 | 3,430 |
Noninterest income | 3,757 | 5,665 |
Noninterest expense | 19,409 | 19,994 |
Net income before tax | 18,622 | 14,553 |
Income tax benefit | (4,915) | (4,029) |
Net income | 13,707 | 10,524 |
BV Financial, Inc. | ||
Interest income | 285 | |
Cash dividends from subsidiary | 3,750 | 1,900 |
Equity security valuation adjustment | 29 | (28) |
Total Interest and dividend income | 4,064 | 1,872 |
Interest Expense | 2,165 | 2,062 |
Net interest and dividend income | 1,899 | (190) |
Noninterest income | 8 | |
Noninterest expense | 229 | 111 |
Net income before tax | 1,678 | (301) |
Income tax benefit | 436 | 462 |
Income (loss) before equity in net income of Subsidiary | 2,114 | 161 |
Equity in undistributed net income of subsidiary | 11,593 | 10,363 |
Net income | $ 13,707 | $ 10,524 |
Condensed Financial Informati_5
Condensed Financial Information (Parent Company Only) - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 13,707 | $ 10,524 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Increase in other liabilities | 1,442 | (694) |
Net cash provided by operating activities | 15,194 | 9,714 |
Cash flows from investing activities | ||
Net (increase) in loans | (38,296) | (40,209) |
Net cash used in investing activities | (35,173) | (27,761) |
Cash flows provided by financing activities | ||
Proceeds from issuance of common stock | 97,990 | 0 |
Offering costs | (3,248) | |
Stock options exercised | 1 | |
Net cash provided by (used in) financing activities | 25,069 | (24,491) |
Net increase (decrease) in cash and cash equivalents | 5,090 | (42,538) |
Cash and cash equivalents at beginning of period | 68,652 | 111,190 |
Cash and cash equivalents at end of period | 73,742 | 68,652 |
BV Financial, Inc. | ||
Cash flows from operating activities | ||
Net income | 13,707 | 10,524 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Equity in net income of subsidiary | (11,593) | (10,363) |
Amortization of debt issuance costs and debt fair value adjustments | 212 | 211 |
Non-cash income-Equity security valuation adjustment | (35) | 28 |
(Decrease) in other assets | (436) | (463) |
Increase in other liabilities | 7 | 32 |
Net cash provided by operating activities | 1,862 | (31) |
Cash flows from investing activities | ||
Net (increase) in loans | (7,328) | |
Investment in Equity Securities | (250) | |
Net cash used in investing activities | (7,328) | (250) |
Cash flows provided by financing activities | ||
Proceeds from issuance of common stock | 97,990 | |
Offering costs | (3,248) | |
Investment in Bank from stock offering | (47,471) | |
Stock options exercised | 28 | |
Net cash provided by (used in) financing activities | 47,271 | 28 |
Net increase (decrease) in cash and cash equivalents | 41,805 | (253) |
Cash and cash equivalents at beginning of period | 3,820 | 4,073 |
Cash and cash equivalents at end of period | $ 45,625 | $ 3,820 |