Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 26, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity File Number | 000-51821 | ||
Entity Registrant Name | LAKE SHORE BANCORP, INC. | ||
Entity Tax Identification Number | 20-4729288 | ||
Entity Address, Address Line One | 31 East Fourth Street | ||
Entity Address, City or Town | Dunkirk | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 14048 | ||
City Area Code | 716 | ||
Local Phone Number | 366-4070 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | LSBK | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 27,537,991 | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 5,922,269 | ||
Documents Incorporated by Reference | Part of 10-K where incorporated Portions of the registrant’s Proxy Statement for the 2020 Annual Meeting of Stockholders III | ||
Entity Central Index Key | 0001341318 | ||
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 7,884 | $ 8,880 |
Interest earning deposits | 22,405 | 3,244 |
Federal funds sold | 18,627 | |
Cash and Cash Equivalents | 30,289 | 30,751 |
Securities available for sale | 71,201 | 86,193 |
Federal Home Loan Bank stock, at cost | 2,055 | 1,545 |
Loans receivable, net of allowance for loan losses 2019 $4,267; 2018 $3,448 | 470,816 | 392,471 |
Premises and equipment, net | 9,415 | 9,417 |
Accrued interest receivable | 2,153 | 1,913 |
Bank owned life insurance | 21,969 | 21,469 |
Other assets | 2,971 | 1,949 |
Total Assets | 610,869 | 545,708 |
Liabilities | ||
Deposits: Interest bearing | 422,247 | 377,131 |
Deposits: Non-interest bearing | 61,229 | 55,327 |
Total Deposits | 483,476 | 432,458 |
Long-term debt | 34,650 | 24,650 |
Advances from borrowers for taxes and insurance | 3,233 | 3,134 |
Other liabilities | 6,670 | 5,662 |
Total Liabilities | 528,029 | 465,904 |
Stockholders' Equity | ||
Common stock, $0.01 par value per share, 25,000,000 shares authorized; 6,836,514 shares issued and 5,924,339 shares outstanding at December 31, 2019 and 6,827,741 shares issued and 6,004,664 shares outstanding at December 31, 2018 | 68 | 68 |
Additional paid-in capital | 31,078 | 30,916 |
Treasury stock, at cost (912,175 shares at December 31, 2019 and 823,077 shares at December 31, 2018) | (10,184) | (8,805) |
Unearned shares held by ESOP | (1,364) | (1,449) |
Unearned shares held by compensation plans | (39) | (200) |
Retained earnings | 61,950 | 59,145 |
Accumulated other comprehensive income | 1,331 | 129 |
Total Stockholders' Equity | 82,840 | 79,804 |
Total Liabilities and Stockholders' Equity | $ 610,869 | $ 545,708 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Statements of Financial Condition [Abstract] | ||
Allowance for loan losses | $ 4,267 | $ 3,448 |
Common stock par value per share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Common Stock, Shares Issued | 6,836,514 | 6,827,741 |
Common Stock, Shares Outstanding | 5,924,339 | 6,004,664 |
Treasury Stock, Shares | 912,175 | 823,077 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income | |||
Loans, including fees | $ 21,372 | $ 18,323 | $ 16,690 |
Investment securities, taxable | 1,138 | 1,050 | 800 |
Investment securities, tax-exempt | 1,388 | 1,591 | 1,648 |
Other | 369 | 572 | 270 |
Total Interest Income | 24,267 | 21,536 | 19,408 |
Interest Expense | |||
Deposits | 4,491 | 2,977 | 2,080 |
Short-term borrowings | 46 | ||
Long-term debt | 587 | 548 | 468 |
Other | 73 | 77 | 82 |
Total Interest Expense | 5,197 | 3,602 | 2,630 |
Net Interest Income | 19,070 | 17,934 | 16,778 |
Provision for Loan Losses | 900 | 390 | 510 |
Net Interest Income after Provision for Loan Losses | 18,170 | 17,544 | 16,268 |
Non-Interest Income | |||
Service charges and fees | 1,818 | 1,853 | 1,797 |
Earnings on bank owned life insurance | 500 | 392 | 358 |
Unrealized gain on equity securities | 43 | 2 | |
Unrealized (loss) on interest rate swap | (80) | (47) | |
Recovery on previously impaired investment securities | 54 | 145 | 135 |
Gain on sale of securities available for sale | 244 | ||
Net gain on sale of loans | 67 | 12 | 14 |
Other | 90 | 117 | 107 |
Total Non-Interest Income | 2,492 | 2,474 | 2,655 |
Non-Interest Expenses | |||
Salaries and employee benefits | 8,774 | 8,379 | 7,627 |
Occupancy and equipment | 2,477 | 2,350 | 2,286 |
Data processing | 1,351 | 1,328 | 1,258 |
Professional services | 858 | 981 | 872 |
Advertising | 708 | 606 | 596 |
Postage and supplies | 248 | 248 | 257 |
FDIC insurance | 73 | 149 | 149 |
Other | 1,431 | 1,392 | 1,315 |
Total Non-Interest Expenses | 15,920 | 15,433 | 14,360 |
Income before Income Taxes | 4,742 | 4,585 | 4,563 |
Income Tax Expense | 655 | 585 | 1,185 |
Net Income | $ 4,087 | $ 4,000 | $ 3,378 |
Basic and diluted earnings per common share | $ 0.68 | $ 0.66 | $ 0.55 |
Dividends declared per share | $ 0.48 | $ 0.40 | $ 0.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 1,172 | $ 1,212 | $ 805 | $ 898 | $ 1,000 | $ 1,058 | $ 1,006 | $ 936 | $ 4,087 | $ 4,000 | $ 3,378 |
Other Comprehensive Income (Loss), net of tax expense (benefit): | |||||||||||
Unrealized holding gains (losses) on securities available for sale, net of tax expense (benefit) | 1,244 | (703) | (341) | ||||||||
Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income, net of tax expense | (42) | (115) | (89) | ||||||||
Reclassification adjustments related to: Net gain on sale of securities included in net income, net of tax expense | (161) | ||||||||||
Total Other Comprehensive Income (Loss) | 1,202 | (818) | (591) | ||||||||
Total Comprehensive Income | $ 5,289 | $ 3,182 | $ 2,787 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Unearned Shares Held by ESOP [Member] | Unearned Shares Held by Compensation Plans [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2016 | $ 68 | $ 30,532 | $ (7,300) | $ (1,620) | $ (578) | $ 53,546 | $ 1,382 | $ 76,030 |
Net income | 3,378 | 3,378 | ||||||
Other comprehensive (loss) income, net of tax expense (benefit) | (591) | (591) | ||||||
Stock options exercised | 4 | 4 | ||||||
ESOP shares earned | 41 | 85 | 126 | |||||
Stock based compensation | 44 | 44 | ||||||
Compensation plan shares granted | 270 | (270) | ||||||
Compensation plan shares forfeited | (10) | 10 | ||||||
Compensation plan shares earned | 98 | 298 | 396 | |||||
Purchase of treasury stock, at cost | (269) | (269) | ||||||
Cash dividends declared | (743) | (743) | ||||||
Ending Balance at Dec. 31, 2017 | 68 | 30,719 | (7,309) | (1,535) | (540) | 56,181 | 791 | 78,375 |
Net income | 4,000 | 4,000 | ||||||
Other comprehensive (loss) income, net of tax expense (benefit) | (818) | (818) | ||||||
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI | (156) | 156 | ||||||
ESOP shares earned | 44 | 86 | 130 | |||||
Stock based compensation | 45 | 45 | ||||||
Compensation plan shares granted | 50 | (50) | ||||||
Compensation plan shares forfeited | (98) | 98 | ||||||
Compensation plan shares earned | 108 | 292 | 400 | |||||
Purchase of treasury stock, at cost | (1,448) | (1,448) | ||||||
Cash dividends declared | (880) | (880) | ||||||
Ending Balance at Dec. 31, 2018 | 68 | 30,916 | (8,805) | (1,449) | (200) | 59,145 | 129 | 79,804 |
Net income | 4,087 | 4,087 | ||||||
Other comprehensive (loss) income, net of tax expense (benefit) | 1,202 | 1,202 | ||||||
Cumulative effect of adoption of ASU 2016-02 Leases (Topic 842), net of tax benefit effect | (10) | (10) | ||||||
Stock options exercised | 6 | 6 | ||||||
ESOP shares earned | 35 | 85 | 120 | |||||
Stock based compensation | 44 | 44 | ||||||
Compensation plan shares granted | 49 | (49) | ||||||
Compensation plan shares forfeited | (9) | 9 | ||||||
Compensation plan shares earned | 77 | 201 | 278 | |||||
Purchase of treasury stock, at cost | (1,419) | (1,419) | ||||||
Cash dividends declared | (1,272) | (1,272) | ||||||
Ending Balance at Dec. 31, 2019 | $ 68 | $ 31,078 | $ (10,184) | $ (1,364) | $ (39) | $ 61,950 | $ 1,331 | $ 82,840 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other comprehensive income, tax expense (benefit) | $ 319 | $ (217) | $ (305) |
Income tax expense | $ 655 | $ 585 | $ 1,185 |
Stock options exercised | 17,773 | 505 | |
ESOP, shares earned | 7,935 | 7,935 | 7,935 |
Compensation plan shares granted | 5,186 | 5,329 | 27,348 |
Compensation plan shares forfeited | 860 | 10,433 | 1,104 |
Compensation plan shares earned | 19,814 | 28,315 | 27,909 |
Purchase of treasury stock, shares | 93,424 | 88,555 | 17,100 |
Cash dividends declared, value per share | $ 0.48 | $ 0.40 | $ 0.32 |
Accounting Standards Update 2016-02 [Member] | |||
Income tax expense | $ 2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 4,087 | $ 4,000 | $ 3,378 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization of investment securities | 48 | 83 | 110 |
Net amortization of deferred loan costs | 598 | 576 | 622 |
Provision for loan losses | 900 | 390 | 510 |
Recovery on previously impaired investment securities | (54) | (145) | (135) |
Unrealized gain on equity securities | (43) | (2) | |
Gain on sale of investment securities | (244) | ||
Unrealized loss on interest rate swap | 80 | 47 | |
Originations of loans held for sale | (3,248) | (944) | (1,069) |
Proceeds from sales of loans held for sale | 3,315 | 956 | 1,083 |
Gain on sale of loans held for sale | (67) | (12) | (14) |
Depreciation and amortization | 809 | 774 | 852 |
Deferred income tax (benefit) expense | (41) | 135 | 219 |
Increase in bank owned life insurance, net | (500) | (392) | (358) |
ESOP shares committed to be released | 120 | 130 | 126 |
Stock based compensation expense | 322 | 445 | 440 |
Increase in accrued interest receivable | (240) | (112) | (201) |
(Increase) Decrease in other assets | (480) | (18) | 62 |
Writedowns of foreclosed real estate | 33 | 40 | 65 |
Increase in other liabilities | 197 | 163 | 381 |
Net Cash Provided by Operating Activities | 5,836 | 6,114 | 5,827 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Activity in available for sale securities: Sales | 6,510 | ||
Activity in available for sale securities: Maturities, prepayments and calls | 18,827 | 9,426 | 12,002 |
Activity in available for sale securities: Purchases | (2,265) | (16,169) | (13,225) |
Purchases of Federal Home Loan Bank Stock | (510) | (20) | (375) |
Redemptions of Federal Home Loan Bank Stock | 106 | 84 | |
Loan origination and principal collections, net | (80,053) | (30,122) | (40,309) |
Proceeds from sale of foreclosed real estate | 81 | 1,510 | 331 |
Additions to premises and equipment | (810) | (818) | (1,480) |
Purchase of bank owned life insurance | (3,000) | ||
Net Cash Used in Investing Activities | (64,730) | (39,087) | (36,462) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase in deposits | 51,018 | 27,305 | 19,260 |
Net increase (decrease) in advances from borrowers for taxes and insurance | 99 | 134 | (183) |
Proceeds from issuance of long-term debt | 16,250 | 1,500 | 9,700 |
Repayment of long-term debt | (6,250) | (3,800) | (1,700) |
Proceeds from stock options exercised | 6 | 4 | |
Purchase of treasury stock | (1,419) | (1,448) | (269) |
Cash dividends paid | (1,272) | (880) | (743) |
Net Cash Provided by Financing Activities | 58,432 | 22,811 | 26,069 |
Net Decrease in Cash and Cash Equivalents | (462) | (10,162) | (4,566) |
CASH AND CASH EQUIVALENTS - BEGINNING | 30,751 | 40,913 | 45,479 |
CASH AND CASH EQUIVALENTS - ENDING | 30,289 | 30,751 | 40,913 |
SUPPLEMENTARY CASH FLOWS INFORMATION | |||
Interest paid | 5,181 | 3,596 | 2,605 |
Income taxes paid | 770 | 529 | 920 |
Right of use asset recognized | 904 | ||
Right of use liability recognized | 916 | ||
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Foreclosed real estate acquired in settlement of loans | $ 212 | $ 1,928 | $ 554 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization and Nature of Operations [Abstract] | |
Organization and Nature of Operations | N ote 1 - Organization and Nature of Operations Organizational Structure Lake Shore Bancorp, Inc. (the “Company,” “us,” “our,” or “we”) and the parent mutual holding company, Lake Shore, MHC (the “MHC”) were formed on April 3, 2006 to serve as the stock holding companies for Lake Shore Savings Bank (the “Bank”) as part of the Bank’s conversion and reorganization from a New York State chartered mutual savings and loan association to the federal mutual holding company form of organization. The MHC, whose activity is not included in these consolidated financial statements, held 3,636,875 shares, or 61.4 % of the Company’s outstanding common stock as of December 31, 2019. Charter Lake Shore Bancorp, Inc. and the parent mutual holding company, Lake Shore, MHC are federally chartered and regulated by the Federal Reserve Board. Lake Shore Savings Bank, subsidiary of Lake Shore Bancorp, Inc., is a federally chartered savings bank and regulated by the Office of the Comptroller of the Currency (the “OCC”). Regulations of the Board of Governors of the Federal Reserve System (the “Federal Reserve”) prohibit the waiver of dividends by the MHC unless the waiver has been approved by its members, consisting of depositors of the Bank. The MHC held a special meeting on February 5, 2020 of its members to vote on a proposal to authorize the MHC to waive its right to receive dividends aggregating up to $ 0. 50 per share that may be declared by the Company in the twelve months subsequent to the approval of the proposal by members. At the special meeting, a majority of the eligible member votes of the MHC approved the waiver of the receipt of dividends on shares owned by the MHC. Lake Shore, MHC submitted the results of this vote along with other information to the Federal Reserve for final approval of the dividend waiver. As of February 28, 2020 , Lake Shore, MHC received notice of the non-objection of the Federal Reserve Board to waive its right to receive dividends paid by the Company during the twelve months ending February 5, 2021. In prior periods, the MHC elected to waive its right to receive cash dividends upon receipt of the non-objection of the Federal Reserve Board. The waiving of dividends by the MHC will increase Company resources available for stock repurchases, payment of dividends to minority stockholders, and investments. As of December 31, 2019, the MHC elected to waive approximately $ 12.4 million on a cumulative basis. The dividends waived by the MHC are considered a restriction on the retained earnings of the Company. Nature of Business The Company’s primary business is the ownership and operation of its subsidiary, the Bank. The Bank is engaged primarily in the business of retail banking through eleven branch offices located in Erie and Chautauqua Counties of New York State. Its primary deposit products are checking, savings and term certificate accounts and its primary lending products are commercial real estate loans and residential mortgages. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of the Company and the Bank. All material inter-company accounts and transactions have been eliminated. The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”). Use of Estimates To prepare these consolidated financial statements in conformity with GAAP, management of the Company made a number of estimates and assumptions relating to the reporting of assets and liabilities and the reporting of revenue, expenses and notes to the consolidated financial statements. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, securities valuation estimates, evaluation of impairment of securities, income taxes and deferred compensation liabilities. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, interest earning deposits at other financial institutions and overnight federal funds sold which are generally sold for one to three-day periods. Investment Securities All debt securities are classified as available for sale and are carried at fair value with unrealized gains and losses, net of the related deferred income tax effect, excluded from earnings and reported as a separate component of accumulated other comprehensive income until realized. Equity securities are also measured at fair value with changes in the fair value recognized in the non-interest income component of the consolidated statements of income. Realized gains and losses on securities transactions are reported in earnings and computed using the specific identification method. When the fair value of a debt or equity security is less than its amortized cost basis, the security is evaluated for other-than-temporary impairment (“OTTI”). Impairment is assessed at the individual security level. This assessment considers factors such as the severity, length of time and anticipated recovery period of the impairment, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, and the issuer’s financial condition, capital strength, the presence of credit enhancements, if any, and near-term prospects. The Company also considers its intent and ability to retain the security for a period of time sufficient to allow for a recovery in fair value, or until maturity. The assessment of a security’s ability to recover any decline in fair value, the ability of the issuer to meet contractual obligations, and the Company’s intent and ability to retain the security require considerable judgment. When impairment of a debt security is considered other-than-temporary, the amount of OTTI recorded as a loss within non-interest income and thereby recognized in earnings depends on (1) whether the Company intends to sell the security, (2) whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, or (3) if the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis. If the Company intends to (has decided to) sell the debt security or more likely than not will be required to sell the security before recovery of its amortized cost basis, OTTI is recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value. If the Company does not intend to sell the debt security and it is not more likely than not the Company will be required to sell the security before recovery of its amortized cost basis, OTTI is separated into the amount representing credit loss and the amount related to all other market factors. The amount related to credit loss is recognized against earnings. The amount related to other market factors is recognized in other comprehensive income, net of applicable taxes. For equity securities, the entire amount of OTTI is recognized in in earnings. Federal Home Loan Bank Stock Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold restricted stock of its district Federal Home Loan Bank according to a predetermined formula. This stock is restricted in that it can only be sold to the FHLB or to another member institution and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is carried at cost on the consolidated statements of financial condition. Loans Receivable Loans receivable that management has the intent and ability to hold until maturity or payoff are stated at their outstanding unpaid principal balances, net of allowance for loan losses and any deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. Management considers a loan to be in delinquency status when the contractual payment of principal or interest has become greater than 30 days past due. 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 in the current year. 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. Allowance for Loan Losses The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. Commercial real estate loans and commercial business loans that are considered impaired are reviewed individually to assess the likelihood and severity of loss exposure. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis. Factors considered by management in determining impairment include payment status, collateral value, cash flow and the probability of collecting scheduled principal and interest payments when due. Loans subject to individual review are, where appropriate, reserved for according to the present value of expected future cash flows available to repay the loan or the estimated fair value less estimated selling costs of the collateral, if the loan is collateral dependent. Commercial loans excluded from individual assessment, as well as smaller balance homogeneous loans, such as consumer, residential real estate and home equity loans, are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. The Company does not separately identify individual consumer, home equity, or residential real estate loans for impairment disclosure, unless the loan has been modified as a troubled debt restructuring. The Company records cash receipts on impaired loans that are non-performing as a reduction to principal before applying amounts to interest or late charges unless specifically directed otherwise by the Bankruptcy Court. The Company may continue to recognize interest income on impaired loans where there is no confirmed loss. Loans may be periodically modified in a troubled debt restructuring (“TDR”) to make concessions to help a borrower remain current on the loan and/or to avoid foreclosure. Generally, we do not forgive principal or interest on a loan or modify the interest rate on loans that are below market rates. When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans. If we determine that the value of a modified loan is less than the recorded investment in the loan, impairment is recognized through a specific allowance estimate or charge-off to the allowance. The allowance for loan losses is maintained at a level to provide for losses that are inherent within the loan portfolio. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as either special mention, doubtful, substandard or loss. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value for that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Premises and Equipment Land is carried at cost. Buildings, improvements, furniture and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of assets (generally thirty-nine years for buildings and three to fifteen years for furniture and equipment). Leasehold improvements are amortized on the straight-line method over the lesser of the life of the improvements or the lease term. Maintenance and repairs are charged to expense as incurred, while major improvements are capitalized and amortized to operating expense over the identified useful life. 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. Foreclosed Real Estate Foreclosed real estate consists of property acquired in settlement of loans which is carried at its fair value less estimated selling costs. Write-downs from cost to fair value less estimated selling costs are recorded at the date of acquisition or repossession and are charged to the allowance for loan losses. Subsequent write-downs to fair value, net of estimated selling costs, are recorded in non-interest expense along with direct operating expenses. Gains or losses not previously recognized, resulting from the sale of foreclosed assets are recognized in non-interest expense on the date of sale. Foreclosed real estate was $779,000 and $678,000 at December 31, 2019 and 2018, respectively, and was included as a component of other assets in the consolidated statements of financial condition. Proceeds from the sale of foreclosed real estate for the years ended December 31, 2019, 2018 and 2017 were $81,000 , $1.5 million, and $331,000 , respectively. This resulted in a net gain on sale of $5,000 , $44,000 and $8,000 for the years ended December 31, 2019, 2018 and 2017, respectively, and was included as a component of other non-interest expenses in the consolidated statements of income. Bank Owned Life Insurance The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit obligations. BOLI involves the purchase of life insurance by the Company on a chosen group of employees. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in the cash surrender value of the underlying policies is included in non-interest income in the consolidated statements of income . Advertising Costs The Company follows the policy of charging the costs of advertising to expense as incurred. Total advertising expense for the years ended December 31, 2019, 2018 and 2017 was $708,000 , $606,000 , and $596,000 , respectively. Income Taxes The Company files a consolidated federal income tax return. The provision for federal and state income taxes is based on income reported on the consolidated financial statements, rather than the amounts reported on the respective income tax returns. Deferred taxes are recorded using the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment and the effect of a change in tax rates is recognized in income at that time. In the fourth quarter of 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law which required the deferred tax assets and liabilities to be revalued using the 21% federal tax rate enacted for tax years beginning after December 31, 2018 from the previous valuation under the prior federal tax rate of 34% . The effect of the revaluation was $262,000 and was recorded in the fourth quarter 2017 tax provision. Refer to Note 10 for more information on the impact of the Tax Act. The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments are applied in the calculation of certain tax credits and in the calculation of deferred income tax expense or benefit associated with certain deferred tax assets and liabilities. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. The Company periodically reviews its tax positions and applies a “more likely than not” recognition threshold for all tax uncertainties. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Employee Stock Ownership Plan (“ESOP”) Compensation expense is recognized based on the current market price of shares committed to be released to employees. All shares released and committed to be released are deemed outstanding for purposes of earnings per share calculations. Dividends declared and paid on allocated shares held by the ESOP are charged to retained earnings. The value of unearned shares to be allocated to ESOP participants for future services not yet performed is reflected as a reduction of stockholders’ equity. Dividends declared on unallocated shares held by the ESOP are recorded as a reduction of the ESOP’s loan payment to the Company. Stock Compensation Plans At December 31, 2019, the Company had stock-based employee and non-employee compensation plans, which are described more fully in Note 12. The Company accounts for the plans using a fair value-based method, which measures compensation cost at the grant date based on the fair value of the award. Compensation is then recognized over the service period, which is usually the vesting period. The fair value of stock option grants are estimated on the date of grant using the Black-Scholes options-pricing model. Common shares are issued from the Company’s authorized common shares when a share option is exercised. Common shares awarded as restricted stock are measured based on the fair market value at the grant date. The stock option plan, restricted stock plan and equity incentive plan expenses are recognized in salaries and employee benefits expense on the consolidated statement of income. Earnings per Common Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, less unallocated shares held by the Company’s ESOP, 2006 Recognition and Retention Plan (“RRP”) and 2012 Equity Incentive Plan (“EIP”), during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed conversion. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock awards, and are determined using the treasury stock method. Off-Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit. Such commitments are recorded in the consolidated statements of financial condition when they are funded. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and OTTI related to non-credit factors, are reported as a separate component of the stockholders’ equity section of the consolidated statements of financial condition, such items, along with net income, are components of comprehensive income. Restrictions on Cash and Due from Banks The Company is required to maintain reserve funds in cash or on deposit with the Federal Reserve Bank. The required reserve at December 31, 2019 and 2018 was $2,914,000 and $2,790,000 , respectively. Subsequent Events The Company evaluated events occurring subsequent to December 31, 2019 through the date the consolidated financial statements are being issued, and other than as set forth in Note 22, did not identify any subsequent events requiring disclosure. Impact of Adoption of Recent Accounting Standards The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) on January 1, 2019. ASU 2016-02 was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the consolidated statements of financial condition for leases with lease terms of more than 12 months. The standard applies a "right-of-use" ("ROU") model that requires a lessee to record an asset representing its right to use the underlying asset and a liability to make lease payments. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the consolidated statements of income. ASU 2016-02 provides for a modified retrospective transition approach basis to record the impact of adopting ASU 2016-02 on financial statements. The modified retrospective transition approach allows the lessee to recognize and measure leases on the consolidated statements of financial condition at the beginning of either the earliest period presented or as of the beginning of the period of adoption. The Company elected to recognize and measure leases on the consolidated statements of financial condition at the beginning of the period of adoption presented in our financial statements, or January 1, 2019, and will not restate prior periods. Adoption of ASU 2016-02 resulted in the recognition of lease liabilities totaling $916,000 and the recognition of ROU assets totaling $904,000 as of the date of adoption. Lease liabilities and ROU assets are reflected in other liabilities and other assets, respectively. The initial gross up upon adoption was primarily related to operating leases of certain real estate properties. The Company has elected to apply the package of practical expedients allowed by the new standard under which the Company need not reassess whether any expired or existing contracts are leases or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. The most significant effects of adoption relate to the recognition of new ROU assets and lease liabilities on our consolidated statements of financial condition for two operating leases related to branch office space; and providing additional new disclosures about the Company’s leasing activities. The Company does not expect a significant change in its leasing activities due to the adoption of ASU 2016-02. Upon adoption of ASU 2016-02, the Company recognized a cumulative effect adjustment to beginning retained earnings of $10,000 . Refer to Note 9 for more information related to the adoption of ASU 2016-02 . The Company adopted FASB ASU 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20)” (“ASU 2017-08”) on January 1, 2019. ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Under previous GAAP, entities generally amortized the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The adoption of ASU 2017-08 did not have a material impact on the Company’s consolidated financial statements or results of operations. Accounting Standards to be Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (“CECL”) model). Under the CECL model entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. Further, ASU 2016-13 made certain targeted amendments to the existing impairment standards for available for sale (“AFS”) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. An entity will apply the amendments in ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has determined its data requirements and is developing its methodologies for calculating the expected credit losses under ASU 2016-13 which has allowed the Company to run parallel loss reserve calculations. Data integrity associated with these methodologies is being reviewed and enhancements to the current process are being considered. We expect that the new guidance will result in an increase to the allowance for loan losses given that the allowance will be required to cover the full remaining expected life of the portfolio, rather than the incurred loss under the current accounting standard. The extent of this increase is still being evaluated. We are also reviewing the impact of additional disclosures required under ASU 2016-13 on our ongoing financial reporting procedures. ASU 2016-13 was originally effective for the Company in 2020. In November 2019, the FASB issued guidance to defer the effective date for smaller reporting companies such as the Company until January 1, 2023 . Reclassifications Certain amounts in the 2018 and 2017 consolidated financial statements have been reclassified to conform with the 2019 presentation format. These reclassifications had no effect on net income. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities [Abstract] | |
Investment Securities | Note 3 – Investment Securities The amortized cost and fair value of securities are as follows: December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) SECURITIES AVAILABLE FOR SALE: Debt Securities U.S. government agencies $ 2,011 $ 134 $ - $ 2,145 Municipal bonds 34,985 835 (1) 35,819 Mortgage-backed securities: Collateralized mortgage obligations-private label 23 - - 23 Collateralized mortgage obligations-government sponsored entities 27,081 393 (133) 27,341 Government National Mortgage Association 162 14 - 176 Federal National Mortgage Association 1,944 69 - 2,013 Federal Home Loan Mortgage Corporation 3,211 156 - 3,367 Asset-backed securities-private label - 215 - 215 Asset-backed securities-government sponsored entities 33 2 - 35 Total Debt Securities $ 69,450 $ 1,818 $ (134) $ 71,134 Equity Securities 22 45 - 67 Total Securities Available for Sale $ 69,472 $ 1,863 $ (134) $ 71,201 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) SECURITIES AVAILABLE FOR SALE: Debt Securities U.S. government agencies $ 2,012 $ - $ (51) $ 1,961 Municipal bonds 44,546 521 (125) 44,942 Mortgage-backed securities: Collateralized mortgage obligations-private label 27 - - 27 Collateralized mortgage obligations-government sponsored entities 32,987 152 (686) 32,453 Government National Mortgage Association 191 8 - 199 Federal National Mortgage Association 2,367 41 (23) 2,385 Federal Home Loan Mortgage Corporation 3,833 64 (9) 3,888 Asset-backed securities-private label - 270 - 270 Asset-backed securities-government sponsored entities 43 1 - 44 Total Debt Securities $ 86,006 $ 1,057 $ (894) $ 86,169 Equity Securities 22 2 - 24 Total Securities Available for Sale $ 86,028 $ 1,059 $ (894) $ 86,193 Debt Securities All of our collateralized mortgage obligations are bac ked by one- to four-family residential mortgages. At December 31, 2019, thirty-three municipal bonds with a cost of $ 10.9 million and fair value of $ 11.2 million were pledged under a collateral agreement with the Federal Reserve Bank (“FRB”) of New York for liquidity borrowing. At December 31, 2018, thirty-two municipal bonds with a cost of $11.0 million and fair value of $11.2 million were pledged with the FRB. In addition, at December 31, 2019, sixteen municipal bonds with a cost of $3.6 million and fair value of $ 3.7 million were pledged as collateral for customer deposits in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. At December 31, 2018, twenty-two municipal bonds with a cost and fair value of $5.6 million were pledged as collateral for customer deposits in excess of FDIC insurance limits. The following table sets forth the Company’s investment in securities available for sale with gross unrealized losses of less than twelve months and gross unrealized losses of twelve months or more and associated fair values as of the dates indicated: Less than 12 months 12 months or more Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) December 31, 2019 Municipal bonds $ 399 (1) $ - $ - $ 399 $ (1) Mortgage-backed securities 423 (3) 10,676 (130) 11,099 (133) $ 822 $ (4) $ 10,676 $ (130) $ 11,498 $ (134) December 31, 2018 U.S. government agencies $ - $ - $ 1,961 $ (51) $ 1,961 $ (51) Municipal bonds 1,531 (5) 4,299 (120) 5,830 (125) Mortgage-backed securities 736 (5) 23,065 (713) 23,801 (718) $ 2,267 $ (10) $ 29,325 $ (884) $ 31,592 $ (894) The Company reviews all investment securities on an ongoing basis for the presence of OTTI with formal reviews performed quarterly. At December 31, 2019, the Company’s investment portfolio included two securities in the “unrealized losses less than twelve months” category and 25 securities in the “unrealized losses twelve months or more” category. Management has the intent and ability to hold these securities until maturity. Management believes the temporary impairments were due to declines in fair value resulting from changes in interest rates and/or increased credit liquidity spreads since the securities were purchased. The unrealized losses on debt securities shown in the previous tables were recorded as a component of other comprehensive income (loss), net of tax expense (benefit) on the Company’s consolidated statements of stockholders’ equity. The following table presents a summary of the credit-related OTTI charges recognized as components of income: For The Years Ended December 31, 2019 2018 (Dollars in thousands) Beginning balance $ 347 $ 435 Additions: Credit loss not previously recognized - - Reductions: Losses realized during the period on OTTI previously recognized - - Receipt of cash flows on previously recorded OTTI (53) (88) Ending balance $ 294 $ 347 A deterioration in credit quality and/or other factors that may limit the liquidity of a security in our portfolio might adversely affect the fair values of the Company’s investment portfolio and may increase the potential that certain unrealized losses will be designated as “other-than-temporary” and that the Company may incur additional write-downs in future periods. During the years ended December 31, 2019 and 2018, the Company did no t sell any available for sale debt securities. During the year ended December 31, 2017, the Company sold eighteen municipal bonds for total proceeds of $6.5 million resulting in realized gains of $244,000 . Equity Securities At December 31, 2019 and 2018, equity securities consisted of 22,368 shares of Federal Home Loan Mortgage Corporation (“FHLMC”) common stock. During the years ended December 31, 2019 and 2018, the Company recognized an unrealized gain of $43,000 and $2,000 , respectively, on the equity securities, which was recorded in non-interest income in the consolidated statements of income. There were no sales of equity securities during the years ended December 31, 2019, 2018 or 2017. Scheduled contractual maturities of available for sale debt securities are as follows: Amortized Fair Cost Value (Dollars in thousands) December 31, 2019: Less than one year $ 480 $ 481 After one year through five years 7,223 7,306 After five years through ten years 13,836 14,048 After ten years 15,457 16,129 Mortgage-backed securities 32,421 32,920 Asset-backed securities 33 250 $ 69,450 $ 71,134 |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Loans Receivable [Abstract] | |
Loans Receivable | Note 4 - Loans Receivable Loans receivable, net consists of the following: December 31, 2019 2018 (Dollars in thousands) Real Estate Loans: Residential, one- to four-family (1) $ 154,749 $ 155,024 Home equity 45,250 41,830 Commercial 211,220 150,475 Construction - commercial 32,299 22,252 443,518 369,581 Commercial 26,720 21,825 Consumer 1,297 1,156 Total Loans 471,535 392,562 Allowance for loan losses (4,267) (3,448) Net deferred loan costs 3,548 3,357 Loans Receivable, net $ 470,816 $ 392,471 (1) Includes one- to four-family construction loans. Residential real estate loans serviced for others by the Company totaled $21.2 million and $20.1 million at December 31, 2019 and 2018, respectively. At December 31, 2019, $111.3 million of one- to four-family residential real estate loans were pledged as collateral for advances from the FHLB. Most loans made by the Company are secured by borrowers’ personal or business assets. The Company considers a concentration of credit to a particular industry to exist when the aggregate credit exposure to a borrower or group of borrowers in that industry exceeds 25% of the Bank’s capital plus reserves or 10% of total loans. At December 31, 2019, the Company held concentrations of credit in the particular industries noted below: • $103.3 million in investor owned multifamily real estate loans, which equated to 125.4% of the Bank’s capital reserves; and • $38.7 million in real estate loans on office properties, which equated to 47.0% of the Bank’s capital reserves. Although these loan categories exceeded the concentration parameter, borrowers within these loan types are diversified and the properties are located in various locations throughout western New York. The ability of the Company’s residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the geographical area they reside. Commercial borrowers’ ability to repay is generally dependent upon the general health of the economy. Substantially all of the Company’s loans are in western New York State and, accordingly, the ultimate collectability of a substantial portion of the loans is susceptible to changes in market conditions in this primary market area. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Loan Losses [Abstract] | |
Allowance for Loan Losses | Note 5 - Allowance for Loan Losses Management segregates the loan portfolio into loan types and analyzes the risk level for each loan type when determining its allowance for loan losses. The loan types are as follows: Real Estate Loans: · One- to Four-Family – are loans secured by first lien collateral on residential real estate primarily held in the Western New York region. These loans can be affected by economic conditions and the value of underlying properties. Western New York’s housing market has consistently demonstrated stability in home prices despite economic conditions. Furthermore, the Company has conservative underwriting standards and its residential lending policies and procedures ensure that its one- to four-family residential mortgage loans generally conform to secondary market guidelines. · Home Equity - are loans or lines of credit secured by first or second liens on owner-occupied residential real estate primarily held in the Western New York region. These loans can also be affected by economic conditions and the values of underlying properties. Home equity loans may have increased risk of loss if the Company does not hold the first mortgage resulting in the Company being in a secondary position in the event of collateral liquidation. The Company does not originate interest only home equity loans. · Commercial Real Estate – are loans used to finance the purchase of real property, which generally consists of developed real estate that is held as first lien collateral for the loan. These loans are secured by real estate properties that are primarily held in the Western New York region. Commercial real estate lending involves additional risks compared with one- to four-family residential lending, because payments on loans secured by commercial real estate properties are often dependent on the successful operation or management of the properties, and/or the collateral value of the commercial real estate securing the loan, and repayment of such loans may be subject to adverse conditions in the real estate market or economic conditions to a greater extent than one- to four-family residential mortgage loans. Also, commercial real estate loans typically involve relatively large loan balances concentrated with single borrowers or groups of related borrowers. · Construction – are loans to finance the construction of either one- to four-family owner occupied homes or commercial real estate. At the end of the construction period, the loan automatically converts to either a one- to four-family or commercial mortgage, as applicable. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion compared to the actual cost of construction. The Company limits its risk during construction as disbursements are not made until the required work for each advance has been completed and an updated lien search is performed. The completion of the construction progress is verified by a Company loan officer or inspections performed by an independent appraisal firm. Construction loans also expose us to the risk of construction delays which may impair the borrower’s ability to repay the loan. Other Loans: · Commercial – includes business installment loans, lines of credit, and other commercial loans. Most of our commercial loans have fixed interest rates, and are for terms generally not in excess of 5 years. Whenever possible, we collateralize these loans with a lien on business assets and equipment and require the personal guarantees from principals of the borrower. Commercial loans generally involve a higher degree of credit risk, as commercial loans can involve relatively large loan balances to a single borrower or groups of related borrowers, with the repayment of such loans typically dependent on the successful operation of the commercial business and the income stream of the borrower. Such risks can be significantly affected by economic conditions. Although commercial loans may be collateralized by equipment or other business assets, the liquidation of collateral in the event of a borrower default may be an insufficient source of repayment because the equipment or other business assets may be obsolete or of limited use, among other things. Accordingly, the repayment of a commercial loan depends primarily on the credit worthiness of the borrowers (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. · Consumer – consist of loans secured by collateral such as an automobile or a deposit account, unsecured loans and lines of credit. Consumer loans tend to have a higher credit risk due to the loans being either unsecured or secured by rapidly depreciable assets. Furthermore, consumer loan payments are dependent on the borrower’s continuing financial stability, and therefore are more likely to be adversely affected by job loss, divorce, illness or personal bankruptcy. The allowance for loan losses is a valuation account that reflects the Company’s evaluation of the losses inherent in its loan portfolio. In order to determine the adequacy of the allowance for loan losses, the Company estimates losses by loan type using historical loss factors, as well as other environmental factors, such as trends in loan volume and loan type, loan concentrations, changes in the experience, ability and depth of the Company’s lending management, and national and local economic conditions. The Company's determination as to the classification of loans and the amount of loss allowances are subject to review by bank regulators, which can require the establishment of additional loss allowances. The Company also reviews all loans on which the collectability of principal may not be reasonably assured, by reviewing payment status, financial conditions and estimated value of loan collateral. These loans are assigned an internal loan grade, and the Company assigns an amount of loss allowances to these classified loans based on loan grade. Although the allocations noted below are by loan type, the allowance for loan losses is general in nature and is available to offset losses from any loan in the Company’s portfolio. The unallocated component of the allowance for loan losses reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for existing specific and general losses in the portfolio. The fol lowing tables summarize the activity in the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 and the distribution of the allowance for loan losses and loan receivable by loan portfolio class and impairment method as of December 31, 2019 and December 31, 2018: Real Estate Loans Other Loans One- to Four-Family (2) Home Equity Commercial Construction - Commercial Commercial Consumer Unallocated Total (Dollars in thousands) December 31, 2019 Allowance for Loan Losses: Balance – January 1, 2019 $ 471 $ 91 $ 2,020 $ 250 $ 507 $ 25 $ 84 $ 3,448 Charge-offs (2) (4) (50) - (6) (40) - (102) Recoveries 9 1 3 - - 8 - 21 Provision (credit) (42) 41 709 138 (23) 33 44 900 Balance – December 31, 2019 $ 436 $ 129 $ 2,682 $ 388 $ 478 $ 26 $ 128 $ 4,267 Ending balance: individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Ending balance: collectively evaluated for impairment $ 436 $ 129 $ 2,682 $ 388 $ 478 $ 26 $ 128 $ 4,267 Gross Loans Receivable (1) : Ending balance $ 154,749 $ 45,250 $ 211,220 $ 32,299 $ 26,720 $ 1,297 $ - $ 471,535 Ending balance: individually evaluated for impairment $ 166 $ - $ - $ - $ - $ - $ - $ 166 Ending balance: collectively evaluated for impairment $ 154,583 $ 45,250 $ 211,220 $ 32,299 $ 26,720 $ 1,297 $ - $ 471,369 (1) Gross Loans Receivable does not include allowance for loan losses of $ (4,267) or deferred loan costs of $ 3,548 . (2) Includes one- to-f amily construction loans. Real Estate Loans Other Loans One- to Four-Family (2) Home Equity Commercial Construction - Commercial Commercial Consumer Unallocated Total (Dollars in thousands) December 31, 2018 Allowance for Loan Losses: Balance – January 1, 2018 $ 511 $ 122 $ 1,663 $ 347 $ 544 $ 35 $ 61 $ 3,283 Charge-offs (23) - (181) - - (51) - (255) Recoveries 19 2 1 - 1 7 - 30 Provision (credit) (36) (33) 537 (97) (38) 34 23 390 Balance – December 31, 2018 $ 471 $ 91 $ 2,020 $ 250 $ 507 $ 25 $ 84 $ 3,448 Ending balance: individually evaluated for impairment $ - $ - $ 30 $ - $ - $ - $ - $ 30 Ending balance: collectively evaluated for impairment $ 471 $ 91 $ 1,990 $ 250 $ 507 $ 25 $ 84 $ 3,418 Gross Loans Receivable (1) : Ending Balance $ 155,024 $ 41,830 $ 150,475 $ 22,252 $ 21,825 $ 1,156 $ - $ 392,562 Ending balance: individually evaluated for impairment $ 178 $ - $ 382 $ - $ - $ - $ - $ 560 Ending balance: collectively evaluated for impairment $ 154,846 $ 41,830 $ 150,093 $ 22,252 $ 21,825 $ 1,156 $ - $ 392,002 (1) Gross Loans Receivable does not include allowance for loan losses of $ (3,448) or deferred loan costs of $ 3,357 . (2) Includes one- to four-family construction loans. Real Estate Loans Other Loans One- to Four-Family (1) Home Equity Commercial Construction Commercial Consumer Unallocated Total (Dollars in thousands) December 31, 2017 Allowance for Loan Losses: Balance – January 1, 2017 $ 431 $ 114 $ 1,803 $ 150 $ 338 $ 28 $ 18 $ 2,882 Charge-offs - (3) (75) - (20) (41) - (139) Recoveries 3 4 - - 9 14 - 30 Provision (credit) 77 7 (65) 197 217 34 43 510 Balance – December 31, 2017 $ 511 $ 122 $ 1,663 $ 347 $ 544 $ 35 $ 61 $ 3,283 (1) Includes one- to four-family construction loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status, collateral value and the probability of collecting scheduled payments when due. Impairment is measured on a loan-by-loan basis for commercial real estate loans and commercial loans. Larger groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, home equity, or one- to four-family loans for impairment disclosure, unless they are subject to a troubled debt restructuring. The following is a summary of information pertaining to impaired loans at or for the periods indicated: Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized For the Year Ended At December 31, 2019 December 31, 2019 (Dollars in thousands) With no related allowance recorded: Residential, one- to four-family $ 166 $ 166 $ - $ 173 $ 10 Commercial real estate (1) - - - 27 - Total impaired loans with no related allowance 166 166 - 200 10 With an allowance recorded: Commercial real estate (2) - - - 260 8 Commercial loans (3) - - - 31 1 Total impaired loans with an allowance - - - 291 9 Total of impaired loans: Residential, one- to four-family 166 166 - 173 10 Commercial real estate - - - 287 8 Commercial loans - - - 31 1 Total impaired loans $ 166 $ 166 $ - $ 491 $ 19 (1) This loan was paid off during the twelve months ended December 31, 2019. (2) This line item consisted of two commercial real estate loans with a combined recorded investment of $294,000 and a related allowance of $40,000 . One commercial real estate loan was paid off in full and the other commercial real estate loan was charged off during the year ended December 31, 2019. (3) A commercial business loan with a recorded investment of $30,000 and a related allowance of $15,000 was partially paid off during the year ended December 31, 2019, with the remaining balance being recorded as a loss. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized For the Year Ended At December 31, 2018 December 31, 2018 (Dollars in thousands) With no related allowance recorded: Residential, one- to four-family $ 178 $ 178 $ - $ 180 $ 12 Home equity (1) - - - 17 - Commercial real estate 134 134 - 356 - Commercial loans - - - 59 1 Total impaired loans with no related allowance 312 312 - 612 13 With an allowance recorded: Commercial real estate (2) 248 248 30 1,249 4 Total impaired loans with an allowance 248 248 30 1,249 4 Total of impaired loans: Residential, one- to four-family 178 178 - 180 12 Home equity - - - 17 - Commercial real estate 382 382 30 1,605 4 Commercial loans - - - 59 1 Total impaired loans $ 560 $ 560 $ 30 $ 1,861 $ 17 (1) These loans were either paid off or foreclosed upon during the year ended December 31, 2018 . (2) Two commercial real estate loans with a combined recorded investment of $1.4 million and a related allowance of $60,000 were foreclosed upon during the year ended December 31, 2018. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized For the Year Ended At December 31, 2017 December 31, 2017 (Dollars in thousands) With no related allowance recorded: Residential, one- to four-family $ 184 $ 184 $ - $ 197 $ 15 Home equity 21 21 - 21 - Commercial real estate (1) 1,498 1,498 - 1,674 222 Commercial loans (2) 54 54 - 54 - Total impaired loans with no related allowance 1,757 1,757 - 1,946 237 With an allowance recorded: Commercial real estate - - - 230 - Commercial loans - - - 50 6 Total impaired loans with an allowance - - - 280 6 Total of impaired loans: Residential, one- to four-family 184 184 - 197 15 Home equity 21 21 - 21 - Commercial real estate 1,498 1,498 - 1,904 222 Commercial loans 54 54 - 104 6 Total impaired loans $ 1,757 $ 1,757 $ - $ 2,226 $ 243 (1) This loan was foreclosed upon during the year ended December 31, 2017 and was recorded in other assets at December 31, 2017. (2) This loan was paid off in full during the year ended December 31, 2017. The following table provides an analysis of past due loans and non-accruing loans as of the dates indicated: 30-59 Days 60-89 Days 90 Days or More Total Past Current Total Loans Loans on Non- Past Due Past Due Past Due Due Due Receivable Accrual (Dollars in thousands) December 31, 2019: Real Estate Loans: Residential, one- to four-family (1) $ 1,245 $ 672 $ 1,924 $ 3,841 $ 150,908 $ 154,749 $ 2,845 Home equity 168 162 583 913 44,337 45,250 590 Commercial - 1,133 - 1,133 210,087 211,220 - Construction - commercial - - - - 32,299 32,299 - Other Loans: Commercial - - - - 26,720 26,720 - Consumer 8 - 2 10 1,287 1,297 2 Total $ 1,421 $ 1,967 $ 2,509 $ 5,897 $ 465,638 $ 471,535 $ 3,437 30-59 Days 60-89 Days 90 Days or More Total Past Current Total Loans Loans on Non- Past Due Past Due Past Due Due Due Receivable Accrual (Dollars in thousands) December 31, 2018: Real Estate Loans: Residential, one- to four-family (1) $ 851 $ 342 $ 1,361 $ 2,554 $ 152,470 $ 155,024 $ 2,310 Home equity 211 187 333 731 41,099 41,830 337 Commercial 76 - 306 382 150,093 150,475 382 Construction - commercial - - - - 22,252 22,252 - Other Loans: Commercial - - 15 15 21,810 21,825 15 Consumer 5 - - 5 1,151 1,156 - Total $ 1,143 $ 529 $ 2,015 $ 3,687 $ 388,875 $ 392,562 $ 3,044 (1) Includes one- to four-family construction loans. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. A loan does not have to be 90 days delinquent in order to be classified as non-accrual. When interest accrual is discontinued, all unpaid accrued interest is reversed. If ultimate collection of principal is in doubt, all cash receipts on impaired loans are applied to reduce the principal balance. Interest income not recognized on non-accrual loans during the years ended December 31, 2019, 2018 and 2017 was $ 148,000 , $ 237,000 , and $ 265,000 , respectively. The Company’s policies provide for the classification of loans as follows: · Pass/Performing; · Special Mention – does not currently expose the Company to a sufficient degree of risk but does possess credit deficiencies or potential weaknesses deserving the Company’s close attention; · Substandard – has one or more well-defined weaknesses and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. A substandard asset would be one inadequately protected by the current net worth and paying capacity of the obligor or pledged collateral, if applicable; · Doubtful – has all the weaknesses inherent in substandard loans with the additional characteristic that the weaknesses present make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss; and · Loss – loan is considered uncollectible and continuance without the establishment of a specific valuation reserve is not warranted. The Company’s Asset Classification Committee is responsible for monitoring risk ratings and making changes as deemed appropriate. Each commercial loan is individually assigned a loan classification. The Company’s consumer loans, including residential one- to four-family loans and home equity loans, are not classified as described above. Instead, the Company uses the delinquency status as the basis for classifying these loans. Generally, all consumer loans more than 90 days past due are classified and placed in non-accrual. Such loans that are well-secured and in the process of collection will remain in accrual status. The following tables summarize the internal loan grades applied to the Company’s loan portfolio as of December 31, 2019 and December 31, 2018: Pass/Performing Special Mention Substandard Doubtful Loss Total (Dollars in thousands) December 31, 2019 Real Estate Loans: Residential, one- to four-family (1) $ 152,115 $ - $ 2,634 $ - $ - $ 154,749 Home equity 44,403 - 847 - - 45,250 Commercial 208,042 2,573 605 - - 211,220 Construction - commercial 32,299 - - - - 32,299 Other Loans: Commercial 22,295 4,425 - - - 26,720 Consumer 1,295 - 2 - - 1,297 Total $ 460,449 $ 6,998 $ 4,088 $ - $ - $ 471,535 (1) Includes one- to four-family construction loans. Pass/Performing Special Mention Substandard Doubtful Loss Total (Dollars in thousands) December 31, 2018 Real Estate Loans: Residential, one- to four-family (1) $ 152,039 $ - $ 2,985 $ - $ - $ 155,024 Home equity 41,346 - 484 - - 41,830 Commercial 148,149 376 1,950 - - 150,475 Construction - commercial 22,252 - - - - 22,252 Other Loans: Commercial 20,722 61 1,042 - - 21,825 Consumer 1,153 - 3 - - 1,156 Total $ 385,661 $ 437 $ 6,464 $ - $ - $ 392,562 (1) Includes one- to four-family construction loans. TDRs occur when we grant borrowers concessions that we would not otherwise grant but for economic or legal reasons pertaining to the borrower’s financial difficulties. A concession is made when the terms of the loan modification are more favorable than the terms the borrower would have received in the current market under similar financial difficulties. These concessions may include, but are not limited to, modifications of the terms of the debt, the transfer of assets or the issuance of an equity interest by the borrower to satisfy all or part of the debt, or the addition of borrower(s). The Company identifies loans for potential TDRs primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future. Generally, we will not return a TDR to accrual status until the borrower has demonstrated the ability to make principal and interest payments under the restructured terms for at least six consecutive months. The Company’s TDRs are impaired loans, which may result in specific allocations and subsequent charge-offs if appropriate. Some loan modifications classified as TDRs may not ultimately result in full collection of principal and interest, as modified, which may result in potential losses. These potential losses have been factored into our overall estimate of the allowance for loan losses. The following table summarizes the loans that were classified as TDRs as of the dates indicated: Non-Accruing Accruing TDRs That Have Defaulted on Modified Terms Year to Date Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in thousands) At December 31, 2019 Real Estate Loans: Residential, one- to four-family 5 $ 166 1 $ 28 4 $ 138 - $ - At December 31, 2018 Real Estate Loans: Residential, one- to four-family 5 $ 178 1 $ 34 4 $ 144 1 $ 34 No additional loan commitments were outstanding to these borrowers at December 31, 2019 and 2018. There were no loans restructured and classified as TDRs during the years ended December 31, 2019 and 2018. Foreclosed real estate consists of property acquired in settlement of loans which is carried at its fair value less estimated selling costs. Write-downs from cost to fair value less estimated selling costs are recorded at the date of acquisition or repossession and are charged to the allowance for loan losses. Foreclosed real estate was $ 779,000 and $678,000 at December 31, 2019 and 2018, respectively, and was included as a component of other assets on the consolidated statements of financial condition. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $1.8 million and $1.1 million at December 31, 2019 and December 31, 2018, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 6 - Premises and Equipment Premises and equipment consist of the following: December 31, 2019 2018 (Dollars in thousands) Land $ 1,206 $ 1,206 Buildings and improvements 12,936 12,782 Furniture and equipment 6,415 5,917 20,557 19,905 Accumulated depreciation (11,142) (10,488) $ 9,415 $ 9,417 Depreciation and amortization of premises and equipment amounted to $809,000 , $ 774,000 , and $ 852,000 for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in occupancy and equipment expense in the accompanying consolidated statements of income. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Note 7 - Deposits Deposits consist of the following at the dates indicated: December 31, 2019 2018 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands) Demand deposits: Non-interest bearing $ 61,229 - % $ 55,327 - % Interest bearing 56,703 0.11 50,211 0.11 Money market accounts 141,398 1.35 119,885 0.90 Savings accounts 53,628 0.06 52,050 0.06 Time deposits 170,518 1.80 154,985 1.67 $ 483,476 1.05 % $ 432,458 0.87 % Scheduled maturities of time deposits at December 31, 2019 were as follows (dollars in thousands): 2020 $ 90,068 2021 51,938 2022 20,034 2023 6,068 2024 2,407 Thereafter 3 $ 170,518 Time deposit accounts with balances in excess of $250,000 amounted to $ 32.2 million and $ 30.2 million at December 31, 2019 and 2018, respectively. Interest expense on deposits was as follows: Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Interest bearing checking accounts $ 56 $ 58 $ 63 Money market accounts 1,408 825 283 Savings accounts 33 30 31 Time deposits 2,994 2,064 1,703 $ 4,491 $ 2,977 $ 2,080 At December 31, 2019 and 2018, deposits of directors, executive officers and their affiliates totaled $7.5 million and $ 6.5 million, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Borrowings | Note 8 - Borrowings At December 31, 2019 and 2018, the Company had no short-term borrowings. At December 31, 2019, the Company had written agreements with the FHLBNY which allows it to borrow up to the maximum lending values designated by the type of collateral pledged. As of December 31, 2019 and 2018, our maximum lending value was $ 111.3 million and $ 107.8 million, respectively, and was collateralized by a pledge of certain, fixed-rate residential, one- to four-family loans. At December 31, 2019 and 2018, we had advances outstanding under this agreement of $ 34.7 million and $24.7 million, respectively. All of the advances outstanding at December 31, 2019 and 2018 were term borrowings at fixed rates. We have a written agreement with the Federal Reserve Bank discount window for overnight borrowings which is collateralized by a pledge of our securities, and allows us to borrow up to the value of the securities pledged, which was equal to a book value of $ 10.9 million and $11.0 million at December 31, 2019 and 2018, respectively. Fair value of the pledged securities was equal to $11.2 million as of December 31, 2019 and 2018. There were no balances outstanding with the Federal Reserve Bank as of December 31, 2019 and 2018. The Company has also established lines of credit with other correspondent banks, currently totaling $22.0 million, of which $20.0 million is unsecured and the remaining $2.0 million is secured by a pledge of the Company’s securities when a draw is made. The lines of credit provide for overnight borrowings through the purchase of Fed Funds, at an interest rate equal to the Fed Funds rate plus a spread. At December 31, 2019 and 2018, there were no balances outstanding on these lines of credit. Long-term debt from the FHLBNY and related contractual maturities consisted of the following: Weighted Average Interest Rate Amount Outstanding At December 31, At December 31, Maturity 2019 2018 2019 2018 (Dollars in thousands) 2019 - % 1.96 % $ - $ 6,250 2020 2.09 % 2.09 % 6,100 6,100 2021 2.30 % 2.30 % 7,800 7,800 2022 2.18 % 2.18 % 2,000 2,000 2023 2.34 % 2.36 % 4,750 2,500 2024 1.73 % - % 13,000 - 2025 2.01 % - % 1,000 - 2.04 % 2.16 % $ 34,650 $ 24,650 |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Lease Obligations [Abstract] | |
Lease Obligations | Note 9 - Lease Obligations Operating leases with terms longer than 12 months in which we are the lessee are recorded as ROU assets and operating lease liabilities, included in other assets and other liabilities, respectively, on the consolidated statements of financial condition under ASU 2016-02, which was adopted by the Company on January 1, 2019, as indicted in Note 2 – Summary of Significant Accounting Policies. Finance leases in which we are the lessee are recorded in premises and equipment on the consolidated statements of financial condition. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the consolidated statements of income. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy and equipment expense in the consolidated statements of income. The Company leases certain branch offices under operating or finance leases. Certain lease arrangements contain extension options which are typically for 5 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of December 31, 2019, operating lease ROU assets and liabilities were $776,000 and $801,000 , respectively. Operating lease costs that were recorded in occupancy and equipment expense on the consolidated statements of income for the years ended December 31, 2019, 2018 and 2017, were $151,000 , $157,000 and $156,000 , respectively. The table below summarizes information related to our lease liabilities at or for the years ended December 31, 2019: For The Year Ended December 31, (in thousands, except for percent and period data) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 138 Operating cash flows from finance leases 126 Weighted-average remaining lease term, operating leases, in years 5.6 Weighted-average discount rate – operating leases 2.61 % The Company has one long-term finance lease agreement for a branch location that was not impacted by the adoption of ASU 2016-02. The outstanding balance of the finance lease (included in other liabilities) at December 31, 2019 and 2018 was $744,000 and $797,000 , respectively, with a weighted-average discount rate of 9.22% . The remaining term of this lease is 8.5 years. The asset related to this finance lease is included in premises and equipment and consists of the cost of $1.1 million less accumulated depreciation of approximately $590,000 and $548,000 at December 31, 2019 and 2018, respectively. The table below summarizes the maturity of remaining lease liabilities as of December 31, 2019: Operating Finance Leases Lease (Dollars in thousands) 2020 $ 145 $ 126 2021 157 126 2022 157 126 2023 157 131 2024 157 136 2025 and thereafter 90 476 Total Lease Payments $ 863 $ 1,121 Less: Amounts representing interest (62) (377) Present value of lease liabilities $ 801 $ 744 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 10- Income Taxes On December 22, 2017, the U.S. government enacted the Tax Act, a comprehensive tax legislation which, among other things, reduced the federal income tax rate for corporations from 34% to 21% effective on January 1, 2018. The Tax Act resulted in broad and complex changes to the Internal Revenue Code which included changes in business-related tax exclusions, deductions and credits. The Company’s deferred federal and state income tax and related valuation accounts represent the estimated impact of temporary differences between how we recognize our assets and liabilities under GAAP and how such assets and liabilities are recognized under federal and state tax law. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences are expected to be recovered or settled. GAAP accounting required that the impact of the Tax Act be accounted for in the period of enactment. As a result of the reduction in the U.S. corporate income tax rate from 34% to 21% under the Tax Act, the Company revalued its ending net deferred tax assets as of December 31, 2017. The Company recognized a $262,000 net tax expense in the Company’s consolidated statements of income for the year ended December 31, 2017 as a result of the enactment of the Tax Act and revaluation of the Company’s net deferred tax assets. The deferred tax liability related to available for sale (“AFS”) security gains that were revalued as of December 31, 2017 as a result of the Tax Act, created “stranded tax effects” in Accumulated Other Comprehensive Income (“AOCI”). In February 2018, FASB issued ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220)” (“ASU 2018-02”), which allowed an entity to elect to reclassify from AOCI to retained earnings the stranded tax effects resulting from the Tax Act. The Company elected not to early adopt the provisions of the ASU 2018-02 for the year ended December 31, 2017. The Company retrospectively recorded a one-time reclassification of $156,000 from AOCI to retained earnings in the consolidated statements of stockholders’ equity for stranded tax effects resulting from the newly enacted corporate tax rate for the quarter ended March 31, 2018. The amount of the reclassification represents the difference between the 34 percent historical corporate tax rate and the newly enacted 21 percent corporate tax rate. The provision for income tax expense consists of the following: Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Current: Federal $ 692 $ 446 $ 960 State 4 4 6 Total Current 696 450 966 Deferred: Federal Federal - expected (41) 135 (43) Federal - Deferred tax asset remeasurement (1) - - 262 State - - - Total Deferred (41) 135 219 Total Income Tax Expense $ 655 $ 585 $ 1,185 (1) Represents a charge to write-down deferred tax assets due to the enactment of the Tax Act. A reconciliation of the statutory federal income tax at a rate of 21% for the years ended December 31, 2019 and 2018 and 34% for the year ended December 31, 2017 to the income tax expense included in the statements of income is as follows: Years Ended December 31, 2019 2018 2017 Federal income tax at statutory rate 21.0 % 21.0 % 34.0 % State benefit, net of federal expense (4.0) (2.9) (2.2) Tax-exempt interest income (6.2) (7.3) (12.3) Deferred tax valuation allowance 4.1 3.0 2.3 Deferred tax remeasurement due to Tax Act - - 5.8 Life insurance income (2.2) (1.8) (2.7) Other 1.1 0.8 1.1 Total Income Tax Expense 13.8 % 12.8 % 26.0 % The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows: December 31, 2019 2018 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 1,094 $ 879 Deferred compensation 1,060 1,091 Net operating loss ("NOL") 528 347 Right of use liability 206 - Accrued expenses 129 111 Impairment of equity investments 128 127 Stock options granted 13 9 Other 48 50 Total Deferred Tax Assets 3,206 2,614 Deferred tax liabilities: Deferred loan origination costs (910) (856) Depreciation (406) (322) Unrealized gains on securities available for sale (353) (34) Right of use asset (199) - Prepaid expenses (97) (79) Total Deferred Tax Liabilities (1,965) (1,291) Deferred tax valuation allowance (834) (638) Net Deferred Tax Asset $ 407 $ 685 The net deferred tax asset was recorded in other assets on the consolidated statements of financial condition at December 31, 2019 and 2018. In assessing the ability of the Company to realize the benefit of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, availability of operating loss carry-backs, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income, the opportunity for net operating loss carry-backs, and projections for future taxable income over the periods which deferred tax assets are deductible, management believes it is more likely than not the Company will generate sufficient taxable income to realize the benefits of these deductible differences at December 31, 2019, except for the following: · Valuation allowance of $ 128,000 on the deferred tax asset for the 2011 other than temporary impairment charge; and · Valuation allowance of $ 706,000 on state deferred tax assets with anticipated net operating loss expiration dates of 2035 through 2039. Management believes that the Company will not generate sufficient income of the appropriate character (i.e. capital gains) to utilize any of the deferred tax asset created by the 2011 other than temporary impairment charge. Management believes that it is more likely than not that the Company will not realize its state deferred tax assets because of reform in New York State corporate tax law. Beginning in 2015, the most significant change in the tax law allows the Company to deduct up to 50 % of its net interest income received from qualifying loans. This change effectively eliminates the Company’s New York State tax on income resulting in the Company being taxed on its apportioned capital. Because of this tax reform, the Company will not generate sufficient taxable income within New York State to realize its existing state deferred tax assets and therefore, an increase to the deferred tax valuation allowance of $195,000 and $ 137,000 was recorded during 2019 and 2018, respectively. Under prior federal law, tax bad debt reserves created prior to January 1, 1998 were subject to recapture into taxable income should the Company fail to meet certain qualifying asset and definition tests. The 1996 federal legislation eliminated these thrift related recapture rules. However, under current law, pre-1988 reserves remain subject to recapture should the Company make certain non-dividend distributions or cease to maintain a thrift or bank charter. Management has no intention of taking any such actions. At December 31, 2019 and 2018, the Company’s total pre-1988 tax bad debt reserve was $ 2.2 million. This reserve reflects the cumulative effect of federal tax deductions by the Company for which no federal income tax provision has been made. Current income tax guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company recognized no adjustment for unrecognized income tax benefits for the years ended December 31, 2019 and 2018. As of December 31, 2019, there has been no material change in any uncertain tax position. The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Income. The Company’s Federal and New York State tax returns, constituting the returns of the major taxing jurisdictions, are subject to examination by the taxing authorities for all open years as prescribed by applicable statute. No waivers have been executed that would extend the period subject to examination beyond the period prescribed by statute. The federal tax returns for the years ended December 31, 2016 , 2017 and 2018 remain subject to examination by the IRS. The tax returns for the years ended December 31, 2016 , 2017 and 2018 for New York State also remain subject to examination. |
Employee and Director Benefit P
Employee and Director Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee and Director Benefit Plans [Abstract] | |
Employee and Director Benefit Plans | Note 11 - Employee and Director Benefit Plans 401K Plan The Company maintains a 401(k) savings plan covering employees who have completed three months of service and attained age 21. Participants may make contributions to the 401(k) Plan in the form of salary deferrals of up to 75 % of their total compensation subject to certain IRS limitations. The plan consists of three components: 401(k), Profit Sharing and Safe Harbor. For the 401(k) component, the Company makes a matching contribution equal to 40 % of the participant salary deferral, up to 6 % of such employee’s compensation after one year of service. For the profit sharing component, the Company makes a discretionary contribution, up to 5.1 % of an eligible employee’s salary, depending on years of service. Lastly, the Company contributes 3.4 % of an eligible employee’s salary based on years of service, which is a discretionary contribution to the Safe Harbor component of the plan. The Company’s expense for all three components of the 401(k) plan for the years ended December 31, 2019, 2018 and 2017 was $ 523,000 , $ 485,000 , and $ 434,000 , respectively. 1999 Supplemental Benefit Plans Effective October 1, 1999, the Company initiated a non-qualified Executive Supplemental Benefit Plan and a non-qualified Directors Supplemental Benefit Plan (the “1999 Plans”). Both plans are unfunded and provide a predefined annual benefit to be paid to executives and directors for fifteen years upon their retirement. The Company can set aside assets to fund the liability which will be subject to claims of the Company’s creditors upon liquidation of the Company. The Company has purchased bank owned life insurance for the purpose of funding the liability. The cash surrender value of bank owned life insurance amounted to $7.6 million and $7.4 million at December 31, 2019 and 2018, respectively. Annual benefits increase at a predetermined amount until the executive or director reaches a predetermined retirement age. Predefined benefits are 100% vested at all times and in the event of death, are guaranteed to continue at the full amount to their designated beneficiaries . The Company had a liability under such plans of $ 832,000 and $ 1.0 million at December 31, 2019 and 2018, respectively. This liability was recorded in other liabilities on the consolidated statements of financial condition and was calculated using an assumed discount rate of 6.17 % in 2019 and 2018. The Company’s expense for the 1999 Plans was $ 59,000 for the year ended December 31, 2019 and $69,000 and $75,000 for the years ended December 31, 2018 and 2017, respectively. 2001 and 2012 Supplemental Benefit Plans Effective October 1, 2001, the Company initiated a non-qualified Executive Supplemental Benefit Plan and a non-qualified Director’s Supplemental Benefit Plan (collectively, the “2001 Plans”). The Company amended and restated the 2001 plans effective November 1, 2015. Effective January 27, 2016, the Company amended the 2001 Supplemental Benefit Plan for Directors, resulting in a change to the benefit formula from a fixed, pre-determined dollar benefit. The formula provides a benefit equal to a percentage of the director’s average pay. The average pay is multiplied by number of years of service, not to exceed 20 years of service or 40% of average final pay. The benefit is payable over a period of fifteen years beginning the month following age 72, unless termination occurs due to disability, death or a change in control. Effective May 18, 2016, the Company amended the 2001 Supplemental Benefit Plan for Executives resulting in a change in the benefit formula from a fixed, pre-determined dollar benefit to a formula-based benefit. The formula provides a benefit equal to a percentage of the executive’s average pay. The average pay is multiplied by number of years of service, not to exceed 20 years of service or 40% of average final pay. A reduced benefit is payable if a termination of service occurs prior to age 65. The benefit is payable over a period of fifteen years beginning the month following age 65, unless termination occurs due to disability, death or a change in control. The 2001 Plans are unfunded. The Company had a liability under these plans of $2.3 million at December 31, 2019 and 2018, respectively. This liability was recorded in other liabilities on the consolidated statements of financial condition and was calculated using an assumed discount rate of 6.17% in 2019 and 2018. Effective June 30, 2012, the Company implemented a Supplemental Executive Benefit Plan (the “2012 Plan”) with one executive. The 2012 Plan provides that when the Executive attains age 67 , the Executive will be entitled to a fixed, pre-determined annual benefit under the 2012 Plan, which will be paid in monthly installments for 15 years. The 2012 Plan was amended on May 18, 2016 to update the fixed, pre-determined annual benefit amount. The 2012 Plan provides for a reduced benefit in the event the Executive terminates his employment for a reason other than death, disability, cause or a change in control, before the Executive attains the age 67 , which will be paid in monthly installments for 15 years. In the event of death, the vested benefit is payable to the beneficiary as a lump sum payment. The Company had a liability under this plan of $ 738,000 and $ 587,000 as of December 31, 2019 and 2018, respectively. This liability was recorded in the other liabilities section on the consolidated statements of financial condition and was calculated using an assumed discount rate of 5.12% in 2019 and 2018. Under the 2001 Plans and the 2012 Plan, the Company can set aside assets to fund the liability which will be subject to claims of the Company’s creditors upon liquidation of the Company. The Company purchased bank owned life insurance for the purpose of funding this liability. The cash surrender value of the bank owned life insurance for these plans amounted to $11.3 million and $11.0 million at December 31, 2019 and 2018, respectively. The Company’s expense for the 2001 and 2012 Plans was $397,000 for the year ended December 31, 2019 and $404,000 and $338,000 for the years ended December 31, 2018 and 2017, respectively. 2018 Retention Agreement Effective March 29, 2018, the Company entered into a Retention Agreement with one executive. The agreement provides that the Executive will receive a payment of $1.4 million (the "Normal Retention Payment") provided that the Executive remains continuously employed with the Bank through March 29, 2028 (the "Retention Date"). The Normal Retention Payment will be paid in three equal installments on March 29, 2028, January 2, 2029, and January 2, 2030. If the Executive's employment is terminated without cause or for good reason (as defined in the agreement) prior to the Retention Date, the Executive will receive the vested account balance as set forth in the agreement. In the event that the Executive's employment terminates prior to the Retention Date due to death or disability, the Executive or his beneficiary, as applicable, will generally receive the vested account balance. If the Executive's employment is terminated prior to the Retention Date, and within two years of a change in control (as defined in the agreement), the Executive will receive the Normal Retention Payment in a lump sum payment. The Company had a liability under this plan of $157,000 and $65,000 as of December 31, 2019 and 2018, respectively. This liability was recorded in the other liabilities section on the consolidated statements of financial condition and was calculated using an assumed discount rate of 5.12% in 2019 and 2018. Although the agreement is unfunded, the Company purchased an additional $3.0 million of bank owned life insurance during the fourth quarter of 2018 to fund the increase in liability arising from the 2018 Plan. The cash surrender value of the bank owned life insurance for this agreement was $3.1 million and $ 3.0 million at December 31, 2019 and 2018, respectively. The Company’s expense for the 2018 Plan was $92,000 and $65,000 for the years ended December 31, 2019 and 2018, respectively. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-based Compensation [Abstract] | |
Stock-based Compensation | Note 12 – Stock-based Compensation As of December 31, 2019, the Company had four stock-based compensation plans, which are described below. The compensation cost that has been recorded under salary and benefits expense in the non-interest expense section of the consolidated statements of income for these plans was $ 442,000 , $ 575,000 , and $ 566,000 for the years ended December 31, 2019, 2018 and 2017, respectively. 2006 Stock Option Plan The Company’s 2006 Stock Option Plan (the “Stock Option Plan”), which was approved by the Company’s stockholders, permitted the grant of options to its employees and non-employee directors for up to 297,562 shares of common stock. The Stock Option Plan expired on October 24, 2016, and grants of options can no longer be awarded. Both incentive stock options and non-qualified stock options have been granted under the Stock Option Plan. The exercise price of each stock option equals the market price of the Company’s common stock on the date of grant and an option’s maximum term is ten years. The stock options generally vest over a five year period. A summary of the status of the Stock Option Plan during the year ended December 31, 2019, 2018 and 2017 is presented below: 2019 2018 2017 Options Weighted Average Exercise Price Remaining Contractual Life Options Weighted Average Exercise Price Remaining Contractual Life Options Weighted Average Exercise Price Remaining Contractual Life Outstanding at beginning of year 82,321 $ 12.98 82,321 $ 12.98 82,826 $ 12.95 Granted - - - - - - Exercised (17,773) 7.88 - - (505) 8.01 Outstanding at end of year 64,548 $ 14.38 6.8 years 82,321 $ 12.98 6.4 years 82,321 $ 12.98 7.4 years Options exercisable at end of year 38,726 $ 14.38 6.8 years 43,591 $ 11.73 6.4 years 30,681 $ 10.61 7.4 years Fair value of options granted $ - $ - $ - At December 31, 2019, stock options outstanding had an intrinsic value of $ 65,000 and there were no remaining options available for grant under the Stock Option Plan. There were 17,773 stock options exercised during the year ended December 31, 2019 with an intrinsic value of $125,000 . There were no stock options exercised during the year ended 2018. The intrinsic value of stock options exercised during the year ended December 31, 2017 was $4,000 . Compensation expense related to the Stock Option Plan amounted to $ 34,000 for the years ended December 31, 2019, 2018 and 2017. At December 31, 2019, $62,000 of unrecognized compensation cost related to the Stock Option Plan is expected to be recognized over a period of 22 months. 2006 Recognition and Retention Plan The Company’s 2006 Recognition and Retention Plan (“RRP”), which was approved by the Company’s stockholders, permitted the grant of restricted stock awards (“Awards”) to employees and non-employee directors for up to 119,025 shares of common stock. The RRP expired on October 24, 2016, and as of October 24, 2016 all shares permitted under the plan have been granted. As of December 31, 2019, there were 115,770 shares vested or distributed to eligible participants under the RRP. Compensation expense amounted to $66,000 for the year ended December 31, 2019 and $ 89,000 for the years ended December 31, 2018 and 2017. At December 31, 2019, $ 42,000 of unrecognized compensation cost related to the RRP is expected to be recognized over a period of 22 months. A summary of the status of unvested shares under the RRP for the years ended December 31, 2019, 2018 and 2017 is as follows: 2019 Weighted Average Grant Price (per Share) 2018 Weighted Average Grant Price (per Share) 2017 Weighted Average Grant Price (per Share) Unvested shares outstanding at beginning of year 10,188 $ 13.27 17,119 $ 13.06 24,110 $ 12.96 Granted - - - - - - Vested (6,933) 12.75 (6,931) 12.75 (6,991) 12.73 Unvested shares outstanding at end of year 3,255 $ 14.37 10,188 $ 13.27 17,119 $ 13.06 2012 Equity Incentive Plan The Company’s 2012 Equity Incentive Plan (the “EIP”), which was approved by the Company’s stockholders on May 23, 2012, authorizes the issuance of up to 180,000 shares of common stock pursuant to grants of restricted stock awards and up to 20,000 shares of common stock pursuant to grants of incentive stock options and non-qualified stock options, subject to permitted adjustments for certain corporate transactions. Employees and non-employee directors of Lake Shore Bancorp or its subsidiaries are eligible to receive awards under the EIP, except that non-employee directors may not be granted incentive stock options. The Board of Directors granted restricted stock awards under the EIP during 2019 as follows: Grant Date Number of Restricted Stock Awards Vesting Fair Value per Share of Award on Grant Date Awardees February 6, 2019 5,186 100% on December 13, 2019 $ 15.89 Non-employee directors A summary of the status of unvested restricted stock awards under the EIP for the years ended December 31, 2019, 2018, and 2017 is as follows: 2019 Weighted Average Grant Price (per Share) 2018 Weighted Average Grant Price (per Share) 2017 Weighted Average Grant Price (per Share) Unvested shares outstanding at beginning of year 25,321 $ 15.28 42,915 $ 14.40 26,072 $ 12.77 Granted 5,186 15.89 5,329 17.00 27,348 15.90 Vested (29,647) 15.37 (22,128) 14.00 (9,880) 14.31 Forfeited (860) 15.90 (795) 14.85 (625) 13.76 Unvested shares outstanding at end of year - $ - 25,321 $ 15.28 42,915 $ 14.40 As of December 31, 2019, there were 83,572 shares of restricted stock vested or distributed to eligible participants under the EIP. Compensation expense related to restricted stock awards under the EIP amounted to $212,000 for the year ended December 31, 2019, $311,000 for the year ended December 31, 2018, and $ 306,000 for the year ended December 31, 2017. A summary of the status of stock options under the EIP for the years ended December 31, 2019, 2018, and 2017 is as follows: 2019 2018 2017 Options Exercise Price Remaining Contractual Life Options Exercise Price Remaining Contractual Life Options Exercise Price Remaining Contractual Life Outstanding at beginning of year 20,000 $ 14.38 20,000 $ 14.38 20,000 $ 14.38 Granted - - - - - - Exercised - - - - - - Forfeited - - - - - - Outstanding at end of year 20,000 $ 14.38 6.8 years 20,000 $ 14.38 7.8 years 20,000 $ 14.38 8.8 years Options exercisable at end of year 11,999 $ 14.38 6.8 years 7,997 $ 14.38 7.8 years 3,998 $ 14.38 8.8 years Fair value of options granted - - - At December 31, 2019, stock options outstanding had an intrinsic value of $20,000 and there were no remaining options available for grant under the EIP. Compensation expense related to stock options outstanding under the EIP amounted to $10,000 , $11,000 , and $10,000 for the years ended December 31, 2019, 2018, and 2017, respectively . At December 31, 2019, $19,000 of unrecognized compensation cost related to unvested stock options is expected to be recognized over a period of 22 months. Employee Stock Ownership Plan (“ESOP”) The Company established the ESOP for the benefit of eligible employees of the Company and Bank. All Company and Bank employees meeting certain age and service requirements are eligible to participate in the ESOP. Participants’ benefits become fully vested after five years of service once the employee is eligible to participate in the ESOP. The Company utilized $ 2.6 million of the proceeds of its 2006 stock offering to extend a loan to the ESOP and the ESOP used such proceeds to purchase 238,050 shares of stock on the open market at an average price of $ 10.70 per share, plus commission expenses. As a result of the purchase of shares by the ESOP, total stockholders’ equity of the Company was reduced by $ 2.6 million. As of December 31, 2019, the balance of the loan to the ESOP was $ 1.5 million and the fair value of unallocated shares was $ 2.0 million. As of December 31, 2019, there were 80,517 allocated shares and 126,960 unallocated shares compared to 77,874 allocated shares and 134,895 unallocated shares at December 31, 2018, and 70,353 allocated shares and 142,830 unallocated shares at December 31, 2017. The ESOP compensation expense was $ 120,000 for the year ended December 31, 2019, $130,000 for the year ended December 31, 2018, and $126,000 for the year ended December 31, 2017 based on 7,935 shares earned in each of those years. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 13 - Fair Value of Financial Instruments Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of December 31, 2019 and 2018 and have not been re-evaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. The estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported here. GAAP establishes 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 measurements (Level 1) and the lowest priority to unobservable input measurements (Level 3). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3: Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. An asset’s 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. The Company’s consolidated statements of financial condition contains investment securities available for sale and derivative instruments that are recorded at fair value on a recurring basis. For financial instruments measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2019 and 2018 were as follows: Fair Value Measurements at December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Measured at fair value on a recurring basis: Securities available for sale: Debt Securities U.S. government agencies $ 2,145 $ 2,145 $ - $ - Municipal bonds 35,819 - 35,819 - Mortgage-backed securities: Collateralized mortgage obligations-private label 23 - 23 - Collateralized mortgage obligations-government sponsored entities 27,341 - 27,341 - Government National Mortgage Association 176 - 176 - Federal National Mortgage Association 2,013 - 2,013 - Federal Home Loan Mortgage Corporation 3,367 - 3,367 - Asset-backed securities: Private label 215 - 215 - Government sponsored entities 35 - 35 - Total Debt Securities $ 71,134 $ 2,145 $ 68,989 $ - Equity securities 67 - 67 - Total Securities Available for Sale $ 71,201 $ 2,145 $ 69,056 $ - Interest Rate Swap (1) $ (127) $ - $ (127) $ - (1) Included in Other Liabilities on the consolidated statements of financial condition. Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Measured at fair value on a recurring basis: Securities available for sale: Debt Securities U.S. government agencies $ 1,961 $ 1,961 $ - $ - Municipal bonds 44,942 - 44,942 - Mortgage-backed securities: Collateralized mortgage obligations-private label 27 - 27 - Collateralized mortgage obligations-government sponsored entities 32,453 - 32,453 - Government National Mortgage Association 199 - 199 - Federal National Mortgage Association 2,385 - 2,385 - Federal Home Loan Mortgage Corporation 3,888 - 3,888 - Asset-backed securities: - Private label 270 - 270 - Government sponsored entities 44 - 44 - Total Debt Securities $ 86,169 $ 1,961 $ 84,208 $ - Equity securities 24 - 24 - Total Securities Available for Sale $ 86,193 $ 1,961 $ 84,232 $ - Interest Rate Swap (1) $ (47) $ - $ (47) $ - (1) Included in Other Liabilities on the consolidated statements of financial condition. Any transfers between levels would be recognized as of the actual date of event or change in circumstances that caused the transfer. There were no reclassifications between the Level 1 and Level 2 categories for the years ended December 31, 2019 and 2018. During the year ended December 31, 2018, asset-backed securities – private label were transferred from the Level 3 category to the Level 2 category. These securities were transferred to Level 2 because the Company changed its method of valuing these securities and that method now uses Level 2 inputs. Level 2 inputs for assets or liabilities measured at fair value on a recurring basis might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment projections, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. The following is a description of valuation methodologies used for financial assets recorded at fair value on a recurring basis: · Investment securities available for sale - the fair values are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1) or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted prices. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution date, market consensus prepayment projections, credit information, and the security’ terms and conditions, among other things. Level 2 securities which are fixed income instruments that are not quoted on an exchange, but are traded in active markets, are valued using prices obtained from our custodian, who use third party data service providers. · Interest Rate Swap – the fair value is based on a discounted cash flow model. The model’s key assumptions include the contractual term of the derivative contract, including the period to maturity, and the use of observable market based inputs, such as interest rates, yield curves, nonperformance risk and implied volatility. The following table presents a reconciliation of the securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3), specifically, asset-backed securities – private label, for the year ended December 31, 2018: December 31, 2018 (Dollars in thousands) Beginning Balance $ 344 Total gains - realized/unrealized: Included in earnings - Included in other comprehensive loss - Total losses - realized/unrealized: - Included in earnings - Included in other comprehensive loss - Sales - Principal paydowns - Transfers to (out of) Level 3 (344) Ending Balance $ - In addition to disclosure of the fair value of assets on a recurring basis, GAAP requires disclosures for assets and liabilities measured at fair value on a non-recurring basis, such as impaired assets and foreclosed real estate. Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of these loans. Non-recurring adjustments also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for loan losses. An impaired loan is carried at fair value based on either a recent appraisal less estimated selling costs of underlying collateral or discounted cash flows based on current market conditions. For assets measured at fair value on a non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2019 and 2018 were as follows: Fair Value Measurements Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Measured at fair value on a non-recurring basis: At December 31, 2019 Foreclosed real estate $ 170 $ - $ - $ 170 At December 31, 2018 Impaired loans $ 252 $ - $ - $ 252 Foreclosed real estate 184 - - 184 The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Estimate Valuation Technique Unobservable Input Range At December 31, 2019 Foreclosed real estate $ 170 Market valuation of property (1) Direct Disposal Costs (2) 7.00 - 10.00 % At December 31, 2018 Impaired loans $ 252 Market valuation of underlying collateral (1) Direct Disposal Costs (2) 7.00 - 20.33% Foreclosed real estate 184 Market valuation of property (1) Direct Disposal Costs (2) 7.00 - 10.00 % (1) Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable . (2) The fair value basis of impaired loans and foreclosed real estate may be adjusted to reflect management estimates of disposal costs including, but not necessarily limited to, real estate brokerage commissions, legal fees, and delinquent property taxes. At December 31, 2018, impaired loans valued using Level 3 inputs had a carrying amount of $282,000 and valuation allowances of $30,000 . At December 31, 2019, foreclosed real estate valued using Level 3 inputs had a carrying amount of $ 221,000 and valuation allowances of $51,000 . By comparison at December 31, 2018, foreclosed real estate valued using Level 3 inputs had a carrying amount of $260,000 and valuation allowances of $76,000 . The carrying amount and estimated fair value of the Company’s financial instruments, whether carried at cost or fair value, are as follows: Fair Value Measurements at December 31, 2019 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Financial assets: Cash and cash equivalents $ 30,289 $ 30,289 $ 30,289 $ - $ - Securities available for sale 71,201 71,201 2,145 69,056 - Federal Home Loan Bank stock 2,055 2,055 - 2,055 - Loans receivable, net 470,816 461,058 - - 461,058 Accrued interest receivable 2,153 2,153 - 2,153 - Interest rate swap (127) (127) - (127) - Financial liabilities: Deposits 483,476 486,487 - 486,487 - Long-term debt 34,650 34,658 - 34,658 - Accrued interest payable 79 79 - 79 - Off-balance-sheet financial instruments - - - - - Fair Value Measurements at December 31, 2018 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Financial assets: Cash and cash equivalents $ 30,751 $ 30,751 $ 30,751 $ - $ - Securities available for sale 86,193 86,193 1,961 84,232 - Federal Home Loan Bank stock 1,545 1,545 - 1,545 - Loans receivable, net 392,471 376,774 - - 376,774 Accrued interest receivable 1,913 1,913 - 1,913 - Interest rate swap (47) (47) - (47) - Financial liabilities: Deposits 432,458 435,547 - 435,547 - Long-term debt 24,650 24,292 - 24,292 - Accrued interest payable 63 63 - 63 - Off-balance-sheet financial instruments - - - - - |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | Note 14 - Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated 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. As of January 1, 2015, new federal regulations that substantially revised the minimum capital standards and the method for calculating risk-weighted assets became applicable to the Company. The revised regulations are now consistent with the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act. The revised regulations established a new common equity Tier 1 (“CET1”) minimum capital requirement, increased the minimum Tier 1 capital ratio, changed the risk weight of certain assets for purposes of calculating the risk-based capital ratios, created an additional capital conservation buffer over the required capital ratios and changed what qualifies as capital for purposes of meeting these various capital requirements. As of January 2016, failure to maintain the required capital conservation buffer limits the ability of the Bank to pay dividends or discretionary bonuses. The Company is exempt from consolidated capital requirements as those requirements do not apply to certain small savings and loan holding companies or bank holding companies with consolidated assets under $3 billion. Under the revised capital requirements, the minimum capital ratios are: (1) a CET1 capital ratio of 4.5% of risk-weighted assets; (2) a Tier 1 capital ratio of 6.0% of risk-weighted assets; (3) a total capital ratio of 8% of risk-weighted assets; and (4) a leverage ratio of 4.0%. CET1 capital generally consists of common stock and retained earnings, subject to applicable regulatory adjustments and deductions. There are a number of changes in what constitutes regulatory capital. Under the new requirements for total capital, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of CET1 will be deducted from capital. The Bank has elected to permanently opt-out of the inclusion of accumulated other comprehensive income in the Bank’s capital calculations, as permitted by the regulations. This opt-out will reduce the impact of market volatility on the Bank’s investment portfolio for purposes of calculating the Bank’s regulatory capital. The new requirements also include changes in the risk-weights of assets to better reflect credit risk and other risk exposures. These include a 150% risk weight (increased from 100%) for certain high volatility commercial real estate facilities that finance the acquisition, development or construction of real property and for all loans (except one- to four-family real estate loans) that are 90 days past due or otherwise in non-accrual status; a 20% (increased from 0%) credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable; a 250% risk weight (increased from 100%) for mortgage servicing and deferred tax assets that are not deducted from capital; and increased risk weights (0% to 600%) for equity exposures. In addition to the minimum CET1, Tier 1 and total capital ratios, the Bank will have to maintain a capital conservation buffer consisting of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends and discretionary bonuses. This new capital conservation buffer requirement had a phase-in period which began in January 2016 at 0.625% of risk-weighted assets and increased each year until full implementation in January 2019. The OCC’s prompt corrective action standards changed effective January 1, 2015. Under the new standards, in order to be considered well-capitalized, the Bank must have a CET1 ratio of 6.5% (new), a Tier 1 ratio of 8.0% (increased from 6.0%), a total risk-based capital ratio of 10.0% (unchanged) and a leverage ratio of 5.0% (unchanged). As of December 31, 2019, the Bank met all of the new requirements, including the full capital conservation buffer that was required by January 2019. The most recent notification from the Federal banking agencies categorized the Bank as well capitalized at December 31, 2019 under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios at December 31, 2019 and 2018 are presented in the following table: Actual Minimum Ratio For Capital Adequacy Purposes Minimum Ratio To Be Well Capitalized Under Prompt Corrective Action Provisions Capital Conservation Buffer % Amount Ratio Amount Ratio Amount Ratio Actual Required At December 31, 2019 Total capital (to risk-weighted assets) $ 82,399 18.02 % 36,585 8.00 % 45,731 10.00 % 10.018 % 2.500 % Tier 1 capital (to risk-weighted assets) 78,136 17.09 % 27,438 6.00 % 36,585 8.00 % 11.086 % 2.500 % CET 1 capital (to risk-weighted assets) 78,136 17.09 % 20,579 4.50 % 29,725 6.50 % 12.586 % 2.500 % Tier 1 Leverage (to adjusted total assets) 78,136 13.01 % 24,031 4.00 % 30,038 5.00 % 9.006 % 2.500 % At December 31, 2018 Total capital (to risk-weighted assets) $ 79,662 20.59 % 30,948 8.00 % 38,685 10.00 % 12.592 % 1.875 % Tier 1 capital (to risk-weighted assets) 76,218 19.70 % 23,211 6.00 % 30,948 8.00 % 13.702 % 1.875 % CET 1 capital (to risk-weighted assets) 76,218 19.70 % 17,408 4.50 % 25,145 6.50 % 15.202 % 1.875 % Tier 1 Leverage (to adjusted total assets) 76,218 13.99 % 21,785 4.00 % 27,232 5.00 % 9.994 % 1.875 % Following is a reconciliation of the Bank’s GAAP capital to regulatory Tier 1 and CET 1 capital, as well as to Total capital at December 31, 2019 and December 31, 2018: December 31, 2019 2018 (Dollars in thousands) GAAP (Equity) Capital: $ 79,467 $ 76,347 Plus: Unrealized gains on available-for-sale securities, net of tax (1,331) (129) Less: Additional tier 1 capital deductions - - Tier 1 Capital and CET1 Capital 78,136 76,218 Plus: Allowance for loan losses 4,267 3,448 Unrealized gains on available-for-sale securities includible in regulatory capital - - Less: Other investments required to be deducted (4) (4) Total Regulatory Capital $ 82,399 $ 79,662 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per Share [Abstract] | |
Earnings per Share | Note 15 – Earnings per Share Earnings per share was calculated for the years ended December 31, 2019, 2018 and 2017, respectively. Basic earnings per share is based upon the weighted average number of common shares outstanding, exclusive of unearned shares held by the ESOP, RRP and EIP. Diluted earnings per share is based upon the weighted average number of common shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Stock options are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent they would be dilutive and computed using the treasury stock method. The calculated basic and diluted earnings per share are as follows: Years Ended December 31, 2019 2018 2017 Numerator – net income $ 4,087,000 $ 4,000,000 $ 3,378,000 Denominator: Basic weighted average shares outstanding 6,002,214 6,075,798 6,110,365 Increase in weighted average shares outstanding due to: Stock options - 9,902 8,930 Diluted weighted average shares outstanding (1) 6,002,214 6,085,700 6,119,295 Earnings per share: Basic $ 0.68 $ 0.66 $ 0.55 Diluted $ 0.68 $ 0.66 $ 0.55 (1) Stock options to purchase 64,547 shares under the Stock Option Plan and 20,000 shares under the EIP at $14.38 were outstanding during 2019 and 2017, but were not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive. |
Commitments to Extend Credit
Commitments to Extend Credit | 12 Months Ended |
Dec. 31, 2019 | |
Commitments to Extend Credit [Abstract] | |
Commitments to Extend Credit | Note 16 – Commitments to Extend Credit The Company has commitments to extend credit with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. There were no loss reserves associated with these commitments at December 31, 2019 and 2018. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The following commitments to extend credit were outstanding as of the dates specified: Contract Amount December 31, December 31, 2019 2018 (Dollars in thousands) Commitments to grant loans $ 26,919 $ 41,901 Unfunded commitments under lines of credit $ 61,309 $ 52,371 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. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Parent Company Only Financial Information [Abstract] | |
Parent Company Only Financial Information | Note 17 – Parent Company Only Financial Information The following condensed financial statements summarize the financial position and results of operations and cash flows of the parent savings and loan holding company, Lake Shore Bancorp, Inc., as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017. Statements of Financial Condition December 31, 2019 2018 (Dollars in thousands) Assets Cash and due from banks $ 1,793 $ 1,795 Investment in subsidiary 79,467 76,347 ESOP loan receivable 1,529 1,578 Other assets 89 89 Total assets $ 82,878 $ 79,809 Liabilities and Stockholders' Equity Other liabilities 38 5 Total stockholders' equity 82,840 79,804 Total liabilities and stockholders' equity $ 82,878 $ 79,809 Statements of Income For the Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Interest Income $ 151 $ 152 $ 140 Dividend distributed by bank subsidiary 2,500 2,000 - Total Income 2,651 2,152 140 Non-interest Expenses 343 411 362 Income (Loss) before income taxes and equity in undistributed net income of subsidiary 2,308 1,741 (222) Income tax benefit (61) (72) (102) Income (Loss) before undistributed net income of subsidiary 2,369 1,813 (120) Equity in undistributed net income of subsidiary 1,718 2,187 3,498 Net Income $ 4,087 $ 4,000 $ 3,378 Statements of Comprehensive Income For the Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Net Income $ 4,087 $ 4,000 $ 3,378 Other Comprehensive Income (Loss), net of tax: Unrealized holding gains (losses) on securities available for sale of subsidiary, net of tax (expense) benefit 2019 $(331) ; 2018 $187 ; 2017 $176 1,244 (703) (341) Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense 2019 $12 ; 2018 $30 ; 2017 $46 (42) (115) (89) Net gains on sales of securities included in net income of subsidiary, net of tax expense 2019 $- ; 2018 $- ; 2017 $83 - - (161) Total Other Comprehensive Income (Loss) 1,202 (818) (591) Total Comprehensive Income $ 5,289 $ 3,182 $ 2,787 Statements of Cash Flows For the Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Cash Flows from Operating Activities: Net income $ 4,087 $ 4,000 $ 3,378 Adjustments to reconcile net income to net cash provided by operating activities: ESOP shares committed to be released 120 130 126 Stock based compensation expense 322 445 440 Increase in other assets (200) (200) (307) Increase in other liabilities 23 3 2 Equity in undistributed earnings of subsidiary (1,718) (2,187) (3,498) Net Cash Provided by Operating Activities 2,634 2,191 141 Cash Flows from Investing Activities: Activity in available for sale securities: Maturities, prepayments and calls - - 4 Payments received on ESOP loan 49 45 43 Net Cash Provided by Investing Activities 49 45 47 Cash Flows from Financing Activities: Proceeds from stock options exercised 6 - 4 Purchase of treasury stock (1,419) (1,448) (269) Cash dividends paid (1,272) (880) (743) Net Cash Used in Financing Activities (2,685) (2,328) (1,008) Net Decrease in Cash and Cash Equivalents (2) (92) (820) Cash and Cash Equivalents - Beginning 1,795 1,887 2,707 Cash and Cash Equivalents - Ending $ 1,793 $ 1,795 $ 1,887 |
Quarterly Financial Data _ Unau
Quarterly Financial Data – Unaudited | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data – Unaudited [Abstract] | |
Quarterly Financial Data – Unaudited | Note 18 – Quarterly Financial Data – Unaudited Quarter Ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 (Dollars in thousands, except per share amounts) Total interest income $ 6,334 $ 6,319 $ 5,952 $ 5,662 Total interest expense 1,438 1,366 1,269 1,124 Net interest income 4,896 4,953 4,683 4,538 Provision for loan losses 175 300 350 75 Net interest income after provision for loan losses 4,721 4,653 4,333 4,463 Total non-interest income 688 669 546 589 Total non-interest expense 4,051 3,919 3,947 4,003 Income before income taxes 1,358 1,403 932 1,049 Income tax expense 186 191 127 151 Net income $ 1,172 $ 1,212 $ 805 $ 898 Basic and diluted earnings per share $ 0.20 $ 0.20 $ 0.13 $ 0.15 Quarter Ended December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 (Dollars in thousands, except per share amounts) Total interest income $ 5,671 $ 5,490 $ 5,267 $ 5,108 Total interest expense 1,011 955 860 776 Net interest income 4,660 4,535 4,407 4,332 Provision for loan losses 75 125 115 75 Net interest income after provision for loan losses 4,585 4,410 4,292 4,257 Total non-interest income 598 629 657 590 Total non-interest expense 4,056 3,837 3,782 3,758 Income before income taxes 1,127 1,202 1,167 1,089 Income tax expense 127 144 161 153 Net income $ 1,000 $ 1,058 $ 1,006 $ 936 Basic and diluted earnings per share $ 0.17 $ 0.17 $ 0.17 $ 0.15 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2019 | |
Treasury Stock [Abstract] | |
Treasury Stock | Note 19 – Treasury Stock During the year ended December 31, 2019, the Company repurchased 93,424 shares of common stock at an average cost of $ 15.19 per share. The Company repurchased 87,390 of these shares at an average cost of $15.19 per share pursuant to the Company’s publicly announced common stock repurchase programs. The remaining 6,034 shares were purchased from the trustee of the Company’s unvested RRP and EIP stock holdings, when awardees sold vested shares, at an average cost of $15.22 per share. As of December 31, 2019, there were 97,039 shares remaining to be repurchased under the existing stock repurchase program. During the year ended December 31, 2019, the Company transferred 5,186 shares of common stock out of treasury stock reserved for the 2012 Equity Incentive Plan, at an average cost of $9.39 per share to fund awards that had been granted under the 2012 Equity Incentive Plan. During the year ended December 31, 2019, there were 860 shares transferred back into treasury stock reserved for the 2012 Equity Incentive Plan at an average cost of $ 9.88 per share due to stock forfeitures. During the year ended December 31, 2018, the Company repurchased 88,555 shares of common stock at an average cost of $ 16.35 per share. The Company repurchased 86,300 of these shares at an average cost of $16.38 pursuant to the Company’s publicly announced common stock repurchase programs. The remaining 2,255 shares were repurchased from the trustee of the Company’s unvested RRP and EIP stock holdings, when awardees sold vested shares. As of December 31, 2018, there were 68,190 shares remaining to be repurchased under the existing stock repurchase program. During the year ended December 31, 2018, the Company transferred 5,329 shares of common stock out of treasury stock reserved for the 2012 Equity Incentive Plan, at an average cost of $ 9.39 per share to fund awards that had been granted under the 2012 Equity Incentive Plan. During the year ended December 31, 2018, there were 10,433 shares transferred back into treasury stock reserved for the 2012 Equity Incentive Plan at an average cost of $9.42 per share due to stock forfeitures. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Other Comprehensive Income (Loss) [Abstract] | |
Other Comprehensive Income (Loss) | Note 20 – Other Comprehensive Income (Loss) In addition to presenting the consolidated statements of comprehensive income herein, the following table shows the tax effects allocated to the Company’s single component of other comprehensive income (loss) for the periods presented: For the Year Ended December 31, 2019 Pre-Tax Amount Tax Expense Net of Tax Amount (Dollars in thousands) Net unrealized gains on securities available for sale: Net unrealized gains arising during the year $ 1,575 $ (331) $ 1,244 Less: reclassification adjustment related to: Recovery on previously impaired investment securities included in net income (54) 12 (42) Total Other Comprehensive Income $ 1,521 $ (319) $ 1,202 For the Year Ended December 31, 2018 Pre-Tax Amount Tax Benefit Net of Tax Amount (Dollars in thousands) Net unrealized losses on securities available for sale: Net unrealized losses arising during the year $ (890) $ 187 $ (703) Less: reclassification adjustment related to: Recovery on previously impaired investment securities included in net income (145) 30 (115) Total Other Comprehensive Loss $ (1,035) $ 217 $ (818) For the Year Ended December 31, 2017 Pre-Tax Amount Tax Benefit Net of Tax Amount (Dollars in thousands) Net unrealized losses on securities available for sale: Net unrealized losses arising during the year $ (517) $ 176 $ (341) Less: reclassification adjustment related to: Recovery on previously impaired investment securities included in net income (135) 46 (89) Net gain on sale of securities included in net income (244) 83 (161) Total Other Comprehensive Loss $ (896) $ 305 $ (591) The following table presents the amounts reclassified out of the single component of the Company’s accumulated other comprehensive income for the indicated periods: Amounts Reclassified from Accumulated Details about Accumulated Other Other Comprehensive Income Affected Line Item Comprehensive Income for the years ended December 31, on the Consolidated Components 2019 2018 2017 Statements of Income (Dollars in thousands) Net unrealized gains and losses on securities available for sale: Recovery on previously impaired investment securities $ (54) $ (145) $ (135) Recovery on previously impaired investment securities Sale of securities - - (244) Gain on sale of securities available for sale (54) (145) (379) Provision for income tax expense 12 30 129 Income Tax Expense Total reclassification for the period $ (42) $ (115) $ (250) Net Income |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 21 – Revenue Recognition The Company’s non-interest revenue streams primarily result from services it provides to its deposit customers. When a customer makes a deposit, the Company records a liability because the Company has an obligation to deliver cash to its customer on demand. A contract between the Company and a deposit account customer is typically documented in writing and is often terminable at will by the customer alone or by both the customer and the Company without penalty. The term of a deposit contract between a customer and the Company will likely be day-to-day or minute-to-minute, and the termination clause is likely similar to a renewal right where each day or minute represents the renewal of the contract. 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. Service Charges on Deposit Accounts Service charges and fees on deposit accounts consist of transaction-based fees, account maintenance fees, and overdraft service fees for various retail and business deposit customers. Transaction-based fees, such as stop payment charges, are recognized at the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn directly from the customer’s account balance. Fees, Interchange Income, and Other Service Charges Fees, interchange income, and other service charges are primarily comprised of debit card income, ATM fees, merchant services income and other service charges. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit cards are used to purchase goods or services from a merchant via a card payment network, such as MasterCard. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value. ATM fees are comprised of fees earned whenever a Company’s ATM or debit card is used at a non-Company ATM or a non-Company cardholder uses a Company ATM. ATM fees represent a fixed fee for the convenience to cardholders for accessibility of funds. Merchant services income mainly represents fees charged to merchants serviced by a third party vendor under contract with the Company for debit or credit card processing, and represents a percentage of the underlying transaction value. Other service charges include revenue from services provided to our retail or business customers, which may include fees for wire transfer processing, bill pay services, cashier’s checks and other services. The Company’s performance obligation for fees, interchange income and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically immediately or in the following month. Other Other non-interest income consists of safe deposit rental fees. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Gain/Losses on Sale of OREO The Company records a gain or loss from the sale of other real estate owned (“OREO”) when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company may need to adjust the transaction price and related gain (loss) on sale if a significant financing component is present. Gains (losses) on the sale of OREO are generally recorded in non-interest expense on the consolidated statements of income as an offset to OREO expenses. There were no sales of OREO during the year ended December 31, 2019 where the Company financed the sale of the property. During the year ended December 31, 2018, the Company financed the sale of one OREO property to a buyer. After assessing the applicable criteria under ASU 2014-09, the Company recognized a $33,000 gain on sale of this property. Contract Balances The Company’s non-interest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and 2018, the Company did not have any significant contract balances. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2019, 2018 and 2017: For the years ended December 31, 2019 2018 2017 (Dollars in thousands) Non-Interest Income In-Scope of Topic 606: Service charges on deposit accounts $ 817 $ 880 $ 912 Fees, interchange income and other service charges 848 804 741 Other 39 40 39 Non-interest Income (in-scope of Topic 606) 1,704 1,724 1,692 Non-interest Income (out of scope of Topic 606) 788 750 963 Total Non-Interest Income $ 2,492 $ 2,474 $ 2,655 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22 – Subsequent Events On February 5, 2020, the Board of Directors declared a quarterly cash dividend of $0.12 per share on the Company’s common stock, payable on March 16, 2020 to shareholders of record as of February 24, 2020 . Lake Shore, MHC, which holds 3,636,875 shares, or approximately 61.4% of the Company’s total outstanding stock as of the record date, elected to waive its right to receive this cash dividend of approximately $436,000 . On February 5, 2020, a special meeting of the MHC members (i.e., Lake Shore Savings Bank depositors) was held to vote on a proposal to authorize the MHC to waive its right to receive dividends aggregating up to $0.50 per share that may be declared by the Company in the 12 months subsequent to the approval by members (in accordance with the regulation of the Board of Governors of the Federal Reserve System). At the special meeting, a majority of the eligible member votes of the MHC approved the waiver of the receipt of dividends on shares owned by the MHC. Lake Shore, MHC submitted the results of this vote along with other information to the Federal Reserve Board in order to obtain their non-objection of the dividend waiver. As of February 28, 2020, Lake Shore, MHC received notice of the non-objection of the Federal Reserve Bank of Philadelphia to waive its right to receive dividends paid by the Company during the twelve months ending February 5, 2021, aggregating up to $0.50 per share. The MHC waived $1.5 million of dividends during the year ended December 31, 2019. Cumulatively, Lake Shore, MHC has waived approximately $12.4 million of cash dividends as of December 31, 2019. The dividends waived by Lake Shore, MHC are considered a restriction on the retained earnings of the Company. The Company evaluated its December 31, 2019 consolidated financial statements for subsequent events through the date the consolidated financial statements were issued. As a result of the spread of the COVID-19 coronavirus, economic uncertainties have arisen which are likely to negatively impact our operational and financial performance. The extent of the impact of COVID-19 on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and impact on our customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact our financial condition or results of operations is uncertain. |
Organization and Nature of Op_2
Organization and Nature of Operations (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Organization and Nature of Operations [Abstract] | |
Organizational Structure | Organizational Structure Lake Shore Bancorp, Inc. (the “Company,” “us,” “our,” or “we”) and the parent mutual holding company, Lake Shore, MHC (the “MHC”) were formed on April 3, 2006 to serve as the stock holding companies for Lake Shore Savings Bank (the “Bank”) as part of the Bank’s conversion and reorganization from a New York State chartered mutual savings and loan association to the federal mutual holding company form of organization. The MHC, whose activity is not included in these consolidated financial statements, held 3,636,875 shares, or 61.4 % of the Company’s outstanding common stock as of December 31, 2019. Charter Lake Shore Bancorp, Inc. and the parent mutual holding company, Lake Shore, MHC are federally chartered and regulated by the Federal Reserve Board. Lake Shore Savings Bank, subsidiary of Lake Shore Bancorp, Inc., is a federally chartered savings bank and regulated by the Office of the Comptroller of the Currency (the “OCC”). Regulations of the Board of Governors of the Federal Reserve System (the “Federal Reserve”) prohibit the waiver of dividends by the MHC unless the waiver has been approved by its members, consisting of depositors of the Bank. The MHC held a special meeting on February 5, 2020 of its members to vote on a proposal to authorize the MHC to waive its right to receive dividends aggregating up to $ 0. 50 per share that may be declared by the Company in the twelve months subsequent to the approval of the proposal by members. At the special meeting, a majority of the eligible member votes of the MHC approved the waiver of the receipt of dividends on shares owned by the MHC. Lake Shore, MHC submitted the results of this vote along with other information to the Federal Reserve for final approval of the dividend waiver. As of February 28, 2020 , Lake Shore, MHC received notice of the non-objection of the Federal Reserve Board to waive its right to receive dividends paid by the Company during the twelve months ending February 5, 2021. In prior periods, the MHC elected to waive its right to receive cash dividends upon receipt of the non-objection of the Federal Reserve Board. The waiving of dividends by the MHC will increase Company resources available for stock repurchases, payment of dividends to minority stockholders, and investments. As of December 31, 2019, the MHC elected to waive approximately $ 12.4 million on a cumulative basis. The dividends waived by the MHC are considered a restriction on the retained earnings of the Company. Nature of Business The Company’s primary business is the ownership and operation of its subsidiary, the Bank. The Bank is engaged primarily in the business of retail banking through eleven branch offices located in Erie and Chautauqua Counties of New York State. Its primary deposit products are checking, savings and term certificate accounts and its primary lending products are commercial real estate loans and residential mortgages. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and the Bank. All material inter-company accounts and transactions have been eliminated. The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”). |
Use of Estimates | Use of Estimates To prepare these consolidated financial statements in conformity with GAAP, management of the Company made a number of estimates and assumptions relating to the reporting of assets and liabilities and the reporting of revenue, expenses and notes to the consolidated financial statements. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, securities valuation estimates, evaluation of impairment of securities, income taxes and deferred compensation liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, interest earning deposits at other financial institutions and overnight federal funds sold which are generally sold for one to three-day periods. |
Investment Securities | Investment Securities All debt securities are classified as available for sale and are carried at fair value with unrealized gains and losses, net of the related deferred income tax effect, excluded from earnings and reported as a separate component of accumulated other comprehensive income until realized. Equity securities are also measured at fair value with changes in the fair value recognized in the non-interest income component of the consolidated statements of income. Realized gains and losses on securities transactions are reported in earnings and computed using the specific identification method. When the fair value of a debt or equity security is less than its amortized cost basis, the security is evaluated for other-than-temporary impairment (“OTTI”). Impairment is assessed at the individual security level. This assessment considers factors such as the severity, length of time and anticipated recovery period of the impairment, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, and the issuer’s financial condition, capital strength, the presence of credit enhancements, if any, and near-term prospects. The Company also considers its intent and ability to retain the security for a period of time sufficient to allow for a recovery in fair value, or until maturity. The assessment of a security’s ability to recover any decline in fair value, the ability of the issuer to meet contractual obligations, and the Company’s intent and ability to retain the security require considerable judgment. When impairment of a debt security is considered other-than-temporary, the amount of OTTI recorded as a loss within non-interest income and thereby recognized in earnings depends on (1) whether the Company intends to sell the security, (2) whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, or (3) if the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis. If the Company intends to (has decided to) sell the debt security or more likely than not will be required to sell the security before recovery of its amortized cost basis, OTTI is recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value. If the Company does not intend to sell the debt security and it is not more likely than not the Company will be required to sell the security before recovery of its amortized cost basis, OTTI is separated into the amount representing credit loss and the amount related to all other market factors. The amount related to credit loss is recognized against earnings. The amount related to other market factors is recognized in other comprehensive income, net of applicable taxes. For equity securities, the entire amount of OTTI is recognized in in earnings. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold restricted stock of its district Federal Home Loan Bank according to a predetermined formula. This stock is restricted in that it can only be sold to the FHLB or to another member institution and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is carried at cost on the consolidated statements of financial condition. |
Loans Receivable | Loans Receivable Loans receivable that management has the intent and ability to hold until maturity or payoff are stated at their outstanding unpaid principal balances, net of allowance for loan losses and any deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. Management considers a loan to be in delinquency status when the contractual payment of principal or interest has become greater than 30 days past due. 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 in the current year. 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. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. Commercial real estate loans and commercial business loans that are considered impaired are reviewed individually to assess the likelihood and severity of loss exposure. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis. Factors considered by management in determining impairment include payment status, collateral value, cash flow and the probability of collecting scheduled principal and interest payments when due. Loans subject to individual review are, where appropriate, reserved for according to the present value of expected future cash flows available to repay the loan or the estimated fair value less estimated selling costs of the collateral, if the loan is collateral dependent. Commercial loans excluded from individual assessment, as well as smaller balance homogeneous loans, such as consumer, residential real estate and home equity loans, are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. The Company does not separately identify individual consumer, home equity, or residential real estate loans for impairment disclosure, unless the loan has been modified as a troubled debt restructuring. The Company records cash receipts on impaired loans that are non-performing as a reduction to principal before applying amounts to interest or late charges unless specifically directed otherwise by the Bankruptcy Court. The Company may continue to recognize interest income on impaired loans where there is no confirmed loss. Loans may be periodically modified in a troubled debt restructuring (“TDR”) to make concessions to help a borrower remain current on the loan and/or to avoid foreclosure. Generally, we do not forgive principal or interest on a loan or modify the interest rate on loans that are below market rates. When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans. If we determine that the value of a modified loan is less than the recorded investment in the loan, impairment is recognized through a specific allowance estimate or charge-off to the allowance. The allowance for loan losses is maintained at a level to provide for losses that are inherent within the loan portfolio. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as either special mention, doubtful, substandard or loss. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value for that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Buildings, improvements, furniture and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of assets (generally thirty-nine years for buildings and three to fifteen years for furniture and equipment). Leasehold improvements are amortized on the straight-line method over the lesser of the life of the improvements or the lease term. Maintenance and repairs are charged to expense as incurred, while major improvements are capitalized and amortized to operating expense over the identified useful life. |
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. |
Foreclosed Real Estate | Foreclosed Real Estate Foreclosed real estate consists of property acquired in settlement of loans which is carried at its fair value less estimated selling costs. Write-downs from cost to fair value less estimated selling costs are recorded at the date of acquisition or repossession and are charged to the allowance for loan losses. Subsequent write-downs to fair value, net of estimated selling costs, are recorded in non-interest expense along with direct operating expenses. Gains or losses not previously recognized, resulting from the sale of foreclosed assets are recognized in non-interest expense on the date of sale. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit obligations. BOLI involves the purchase of life insurance by the Company on a chosen group of employees. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in the cash surrender value of the underlying policies is included in non-interest income in the consolidated statements of income . |
Advertising Costs | Advertising Costs The Company follows the policy of charging the costs of advertising to expense as incurred. Total advertising expense for the years ended December 31, 2019, 2018 and 2017 was $708,000 , $606,000 , and $596,000 , respectively. |
Income Taxes | Income Taxes The Company files a consolidated federal income tax return. The provision for federal and state income taxes is based on income reported on the consolidated financial statements, rather than the amounts reported on the respective income tax returns. Deferred taxes are recorded using the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment and the effect of a change in tax rates is recognized in income at that time. In the fourth quarter of 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law which required the deferred tax assets and liabilities to be revalued using the 21% federal tax rate enacted for tax years beginning after December 31, 2018 from the previous valuation under the prior federal tax rate of 34% . The effect of the revaluation was $262,000 and was recorded in the fourth quarter 2017 tax provision. Refer to Note 10 for more information on the impact of the Tax Act. The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments are applied in the calculation of certain tax credits and in the calculation of deferred income tax expense or benefit associated with certain deferred tax assets and liabilities. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. The Company periodically reviews its tax positions and applies a “more likely than not” recognition threshold for all tax uncertainties. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. |
Employee Stock Ownership Plan (“ESOP”) | Employee Stock Ownership Plan (“ESOP”) Compensation expense is recognized based on the current market price of shares committed to be released to employees. All shares released and committed to be released are deemed outstanding for purposes of earnings per share calculations. Dividends declared and paid on allocated shares held by the ESOP are charged to retained earnings. The value of unearned shares to be allocated to ESOP participants for future services not yet performed is reflected as a reduction of stockholders’ equity. Dividends declared on unallocated shares held by the ESOP are recorded as a reduction of the ESOP’s loan payment to the Company. |
Stock Compensation Plans | Stock Compensation Plans At December 31, 2019, the Company had stock-based employee and non-employee compensation plans, which are described more fully in Note 12. The Company accounts for the plans using a fair value-based method, which measures compensation cost at the grant date based on the fair value of the award. Compensation is then recognized over the service period, which is usually the vesting period. The fair value of stock option grants are estimated on the date of grant using the Black-Scholes options-pricing model. Common shares are issued from the Company’s authorized common shares when a share option is exercised. Common shares awarded as restricted stock are measured based on the fair market value at the grant date. The stock option plan, restricted stock plan and equity incentive plan expenses are recognized in salaries and employee benefits expense on the consolidated statement of income. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, less unallocated shares held by the Company’s ESOP, 2006 Recognition and Retention Plan (“RRP”) and 2012 Equity Incentive Plan (“EIP”), during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed conversion. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock awards, and are determined using the treasury stock method. |
Off-Balance Sheet Credit Related Financial Instruments | Off-Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit. Such commitments are recorded in the consolidated statements of financial condition when they are funded. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and OTTI related to non-credit factors, are reported as a separate component of the stockholders’ equity section of the consolidated statements of financial condition, such items, along with net income, are components of comprehensive income. |
Restrictions on Cash and Due from Banks | Restrictions on Cash and Due from Banks The Company is required to maintain reserve funds in cash or on deposit with the Federal Reserve Bank. The required reserve at December 31, 2019 and 2018 was $2,914,000 and $2,790,000 , respectively. |
Subsequent Events | Subsequent Events The Company evaluated events occurring subsequent to December 31, 2019 through the date the consolidated financial statements are being issued, and other than as set forth in Note 22, did not identify any subsequent events requiring disclosure. |
Impact of Adoption of Recent Accounting Standards and Accounting Standards to be Adopted | Impact of Adoption of Recent Accounting Standards The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) on January 1, 2019. ASU 2016-02 was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the consolidated statements of financial condition for leases with lease terms of more than 12 months. The standard applies a "right-of-use" ("ROU") model that requires a lessee to record an asset representing its right to use the underlying asset and a liability to make lease payments. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the consolidated statements of income. ASU 2016-02 provides for a modified retrospective transition approach basis to record the impact of adopting ASU 2016-02 on financial statements. The modified retrospective transition approach allows the lessee to recognize and measure leases on the consolidated statements of financial condition at the beginning of either the earliest period presented or as of the beginning of the period of adoption. The Company elected to recognize and measure leases on the consolidated statements of financial condition at the beginning of the period of adoption presented in our financial statements, or January 1, 2019, and will not restate prior periods. Adoption of ASU 2016-02 resulted in the recognition of lease liabilities totaling $916,000 and the recognition of ROU assets totaling $904,000 as of the date of adoption. Lease liabilities and ROU assets are reflected in other liabilities and other assets, respectively. The initial gross up upon adoption was primarily related to operating leases of certain real estate properties. The Company has elected to apply the package of practical expedients allowed by the new standard under which the Company need not reassess whether any expired or existing contracts are leases or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. The most significant effects of adoption relate to the recognition of new ROU assets and lease liabilities on our consolidated statements of financial condition for two operating leases related to branch office space; and providing additional new disclosures about the Company’s leasing activities. The Company does not expect a significant change in its leasing activities due to the adoption of ASU 2016-02. Upon adoption of ASU 2016-02, the Company recognized a cumulative effect adjustment to beginning retained earnings of $10,000 . Refer to Note 9 for more information related to the adoption of ASU 2016-02 . The Company adopted FASB ASU 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20)” (“ASU 2017-08”) on January 1, 2019. ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Under previous GAAP, entities generally amortized the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The adoption of ASU 2017-08 did not have a material impact on the Company’s consolidated financial statements or results of operations. Accounting Standards to be Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (“CECL”) model). Under the CECL model entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. Further, ASU 2016-13 made certain targeted amendments to the existing impairment standards for available for sale (“AFS”) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. An entity will apply the amendments in ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has determined its data requirements and is developing its methodologies for calculating the expected credit losses under ASU 2016-13 which has allowed the Company to run parallel loss reserve calculations. Data integrity associated with these methodologies is being reviewed and enhancements to the current process are being considered. We expect that the new guidance will result in an increase to the allowance for loan losses given that the allowance will be required to cover the full remaining expected life of the portfolio, rather than the incurred loss under the current accounting standard. The extent of this increase is still being evaluated. We are also reviewing the impact of additional disclosures required under ASU 2016-13 on our ongoing financial reporting procedures. ASU 2016-13 was originally effective for the Company in 2020. In November 2019, the FASB issued guidance to defer the effective date for smaller reporting companies such as the Company until January 1, 2023 . |
Reclassifications | Reclassifications Certain amounts in the 2018 and 2017 consolidated financial statements have been reclassified to conform with the 2019 presentation format. These reclassifications had no effect on net income. |
Loans Receivable (Policy)
Loans Receivable (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Loans Receivable [Abstract] | |
Concentration of Credit Risk | The Company considers a concentration of credit to a particular industry to exist when the aggregate credit exposure to a borrower or group of borrowers in that industry exceeds 25% of the Bank’s capital plus reserves or 10% of total loans. |
Allowance for Loan Losses (Poli
Allowance for Loan Losses (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Loan Losses [Abstract] | |
Impaired Financing Receivable | A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status, collateral value and the probability of collecting scheduled payments when due. Impairment is measured on a loan-by-loan basis for commercial real estate loans and commercial loans. Larger groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, home equity, or one- to four-family loans for impairment disclosure, unless they are subject to a troubled debt restructuring. |
Nonaccrual Loan Status | The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. A loan does not have to be 90 days delinquent in order to be classified as non-accrual. When interest accrual is discontinued, all unpaid accrued interest is reversed. If ultimate collection of principal is in doubt, all cash receipts on impaired loans are applied to reduce the principal balance. |
Financing Receivable Credit Quality | The Company’s policies provide for the classification of loans as follows: · Pass/Performing; · Special Mention – does not currently expose the Company to a sufficient degree of risk but does possess credit deficiencies or potential weaknesses deserving the Company’s close attention; · Substandard – has one or more well-defined weaknesses and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. A substandard asset would be one inadequately protected by the current net worth and paying capacity of the obligor or pledged collateral, if applicable; · Doubtful – has all the weaknesses inherent in substandard loans with the additional characteristic that the weaknesses present make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss; and · Loss – loan is considered uncollectible and continuance without the establishment of a specific valuation reserve is not warranted. The Company’s Asset Classification Committee is responsible for monitoring risk ratings and making changes as deemed appropriate. Each commercial loan is individually assigned a loan classification. The Company’s consumer loans, including residential one- to four-family loans and home equity loans, are not classified as described above. Instead, the Company uses the delinquency status as the basis for classifying these loans. Generally, all consumer loans more than 90 days past due are classified and placed in non-accrual. Such loans that are well-secured and in the process of collection will remain in accrual status. |
Loans and Leases Receivable, Troubled Debt Restructuring | TDRs occur when we grant borrowers concessions that we would not otherwise grant but for economic or legal reasons pertaining to the borrower’s financial difficulties. A concession is made when the terms of the loan modification are more favorable than the terms the borrower would have received in the current market under similar financial difficulties. These concessions may include, but are not limited to, modifications of the terms of the debt, the transfer of assets or the issuance of an equity interest by the borrower to satisfy all or part of the debt, or the addition of borrower(s). The Company identifies loans for potential TDRs primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future. Generally, we will not return a TDR to accrual status until the borrower has demonstrated the ability to make principal and interest payments under the restructured terms for at least six consecutive months. The Company’s TDRs are impaired loans, which may result in specific allocations and subsequent charge-offs if appropriate. Some loan modifications classified as TDRs may not ultimately result in full collection of principal and interest, as modified, which may result in potential losses. These potential losses have been factored into our overall estimate of the allowance for loan losses. |
Foreclosed Real Estate | Foreclosed Real Estate Foreclosed real estate consists of property acquired in settlement of loans which is carried at its fair value less estimated selling costs. Write-downs from cost to fair value less estimated selling costs are recorded at the date of acquisition or repossession and are charged to the allowance for loan losses. Subsequent write-downs to fair value, net of estimated selling costs, are recorded in non-interest expense along with direct operating expenses. Gains or losses not previously recognized, resulting from the sale of foreclosed assets are recognized in non-interest expense on the date of sale. |
Lease Obligations (Policy)
Lease Obligations (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating and Finance Leases | Operating leases with terms longer than 12 months in which we are the lessee are recorded as ROU assets and operating lease liabilities, included in other assets and other liabilities, respectively, on the consolidated statements of financial condition under ASU 2016-02, which was adopted by the Company on January 1, 2019, as indicted in Note 2 – Summary of Significant Accounting Policies. Finance leases in which we are the lessee are recorded in premises and equipment on the consolidated statements of financial condition. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the consolidated statements of income. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy and equipment expense in the consolidated statements of income. The Company leases certain branch offices under operating or finance leases. Certain lease arrangements contain extension options which are typically for 5 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | GAAP establishes 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 measurements (Level 1) and the lowest priority to unobservable input measurements (Level 3). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3: Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. An asset’s 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. |
Fair Value Transfer | Any transfers between levels would be recognized as of the actual date of event or change in circumstances that caused the transfer. |
Revenue Recognition (Policy)
Revenue Recognition (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | The Company’s non-interest revenue streams primarily result from services it provides to its deposit customers. When a customer makes a deposit, the Company records a liability because the Company has an obligation to deliver cash to its customer on demand. A contract between the Company and a deposit account customer is typically documented in writing and is often terminable at will by the customer alone or by both the customer and the Company without penalty. The term of a deposit contract between a customer and the Company will likely be day-to-day or minute-to-minute, and the termination clause is likely similar to a renewal right where each day or minute represents the renewal of the contract. 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. Service Charges on Deposit Accounts Service charges and fees on deposit accounts consist of transaction-based fees, account maintenance fees, and overdraft service fees for various retail and business deposit customers. Transaction-based fees, such as stop payment charges, are recognized at the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn directly from the customer’s account balance. Fees, Interchange Income, and Other Service Charges Fees, interchange income, and other service charges are primarily comprised of debit card income, ATM fees, merchant services income and other service charges. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit cards are used to purchase goods or services from a merchant via a card payment network, such as MasterCard. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value. ATM fees are comprised of fees earned whenever a Company’s ATM or debit card is used at a non-Company ATM or a non-Company cardholder uses a Company ATM. ATM fees represent a fixed fee for the convenience to cardholders for accessibility of funds. Merchant services income mainly represents fees charged to merchants serviced by a third party vendor under contract with the Company for debit or credit card processing, and represents a percentage of the underlying transaction value. Other service charges include revenue from services provided to our retail or business customers, which may include fees for wire transfer processing, bill pay services, cashier’s checks and other services. The Company’s performance obligation for fees, interchange income and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically immediately or in the following month. Other Other non-interest income consists of safe deposit rental fees. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Gain/Losses on Sale of OREO The Company records a gain or loss from the sale of other real estate owned (“OREO”) when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company may need to adjust the transaction price and related gain (loss) on sale if a significant financing component is present. Gains (losses) on the sale of OREO are generally recorded in non-interest expense on the consolidated statements of income as an offset to OREO expenses. There were no sales of OREO during the year ended December 31, 2019 where the Company financed the sale of the property. During the year ended December 31, 2018, the Company financed the sale of one OREO property to a buyer. After assessing the applicable criteria under ASU 2014-09, the Company recognized a $33,000 gain on sale of this property. Contract Balances The Company’s non-interest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and 2018, the Company did not have any significant contract balances. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities [Abstract] | |
Amortized Cost and Fair Value of Securities | December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) SECURITIES AVAILABLE FOR SALE: Debt Securities U.S. government agencies $ 2,011 $ 134 $ - $ 2,145 Municipal bonds 34,985 835 (1) 35,819 Mortgage-backed securities: Collateralized mortgage obligations-private label 23 - - 23 Collateralized mortgage obligations-government sponsored entities 27,081 393 (133) 27,341 Government National Mortgage Association 162 14 - 176 Federal National Mortgage Association 1,944 69 - 2,013 Federal Home Loan Mortgage Corporation 3,211 156 - 3,367 Asset-backed securities-private label - 215 - 215 Asset-backed securities-government sponsored entities 33 2 - 35 Total Debt Securities $ 69,450 $ 1,818 $ (134) $ 71,134 Equity Securities 22 45 - 67 Total Securities Available for Sale $ 69,472 $ 1,863 $ (134) $ 71,201 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) SECURITIES AVAILABLE FOR SALE: Debt Securities U.S. government agencies $ 2,012 $ - $ (51) $ 1,961 Municipal bonds 44,546 521 (125) 44,942 Mortgage-backed securities: Collateralized mortgage obligations-private label 27 - - 27 Collateralized mortgage obligations-government sponsored entities 32,987 152 (686) 32,453 Government National Mortgage Association 191 8 - 199 Federal National Mortgage Association 2,367 41 (23) 2,385 Federal Home Loan Mortgage Corporation 3,833 64 (9) 3,888 Asset-backed securities-private label - 270 - 270 Asset-backed securities-government sponsored entities 43 1 - 44 Total Debt Securities $ 86,006 $ 1,057 $ (894) $ 86,169 Equity Securities 22 2 - 24 Total Securities Available for Sale $ 86,028 $ 1,059 $ (894) $ 86,193 |
Investment in Debt Securities Available for Sale Gross Unrealized Loss | Less than 12 months 12 months or more Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) December 31, 2019 Municipal bonds $ 399 (1) $ - $ - $ 399 $ (1) Mortgage-backed securities 423 (3) 10,676 (130) 11,099 (133) $ 822 $ (4) $ 10,676 $ (130) $ 11,498 $ (134) December 31, 2018 U.S. government agencies $ - $ - $ 1,961 $ (51) $ 1,961 $ (51) Municipal bonds 1,531 (5) 4,299 (120) 5,830 (125) Mortgage-backed securities 736 (5) 23,065 (713) 23,801 (718) $ 2,267 $ (10) $ 29,325 $ (884) $ 31,592 $ (894) |
Summary of Credit-Related OTTI Charges Recognized as Components of Income | For The Years Ended December 31, 2019 2018 (Dollars in thousands) Beginning balance $ 347 $ 435 Additions: Credit loss not previously recognized - - Reductions: Losses realized during the period on OTTI previously recognized - - Receipt of cash flows on previously recorded OTTI (53) (88) Ending balance $ 294 $ 347 |
Scheduled Contractual Maturities of Available for Sale Debt Securities | Amortized Fair Cost Value (Dollars in thousands) December 31, 2019: Less than one year $ 480 $ 481 After one year through five years 7,223 7,306 After five years through ten years 13,836 14,048 After ten years 15,457 16,129 Mortgage-backed securities 32,421 32,920 Asset-backed securities 33 250 $ 69,450 $ 71,134 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans Receivable [Abstract] | |
Schedule of Loans Receivable, Net | December 31, 2019 2018 (Dollars in thousands) Real Estate Loans: Residential, one- to four-family (1) $ 154,749 $ 155,024 Home equity 45,250 41,830 Commercial 211,220 150,475 Construction - commercial 32,299 22,252 443,518 369,581 Commercial 26,720 21,825 Consumer 1,297 1,156 Total Loans 471,535 392,562 Allowance for loan losses (4,267) (3,448) Net deferred loan costs 3,548 3,357 Loans Receivable, net $ 470,816 $ 392,471 (1) Includes one- to four-family construction loans. |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Loan Losses [Abstract] | |
Summary of Activity in Allowance for Loan Losses | Real Estate Loans Other Loans One- to Four-Family (2) Home Equity Commercial Construction - Commercial Commercial Consumer Unallocated Total (Dollars in thousands) December 31, 2019 Allowance for Loan Losses: Balance – January 1, 2019 $ 471 $ 91 $ 2,020 $ 250 $ 507 $ 25 $ 84 $ 3,448 Charge-offs (2) (4) (50) - (6) (40) - (102) Recoveries 9 1 3 - - 8 - 21 Provision (credit) (42) 41 709 138 (23) 33 44 900 Balance – December 31, 2019 $ 436 $ 129 $ 2,682 $ 388 $ 478 $ 26 $ 128 $ 4,267 Ending balance: individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Ending balance: collectively evaluated for impairment $ 436 $ 129 $ 2,682 $ 388 $ 478 $ 26 $ 128 $ 4,267 Gross Loans Receivable (1) : Ending balance $ 154,749 $ 45,250 $ 211,220 $ 32,299 $ 26,720 $ 1,297 $ - $ 471,535 Ending balance: individually evaluated for impairment $ 166 $ - $ - $ - $ - $ - $ - $ 166 Ending balance: collectively evaluated for impairment $ 154,583 $ 45,250 $ 211,220 $ 32,299 $ 26,720 $ 1,297 $ - $ 471,369 (1) Gross Loans Receivable does not include allowance for loan losses of $ (4,267) or deferred loan costs of $ 3,548 . (2) Includes one- to-f amily construction loans. Real Estate Loans Other Loans One- to Four-Family (2) Home Equity Commercial Construction - Commercial Commercial Consumer Unallocated Total (Dollars in thousands) December 31, 2018 Allowance for Loan Losses: Balance – January 1, 2018 $ 511 $ 122 $ 1,663 $ 347 $ 544 $ 35 $ 61 $ 3,283 Charge-offs (23) - (181) - - (51) - (255) Recoveries 19 2 1 - 1 7 - 30 Provision (credit) (36) (33) 537 (97) (38) 34 23 390 Balance – December 31, 2018 $ 471 $ 91 $ 2,020 $ 250 $ 507 $ 25 $ 84 $ 3,448 Ending balance: individually evaluated for impairment $ - $ - $ 30 $ - $ - $ - $ - $ 30 Ending balance: collectively evaluated for impairment $ 471 $ 91 $ 1,990 $ 250 $ 507 $ 25 $ 84 $ 3,418 Gross Loans Receivable (1) : Ending Balance $ 155,024 $ 41,830 $ 150,475 $ 22,252 $ 21,825 $ 1,156 $ - $ 392,562 Ending balance: individually evaluated for impairment $ 178 $ - $ 382 $ - $ - $ - $ - $ 560 Ending balance: collectively evaluated for impairment $ 154,846 $ 41,830 $ 150,093 $ 22,252 $ 21,825 $ 1,156 $ - $ 392,002 (1) Gross Loans Receivable does not include allowance for loan losses of $ (3,448) or deferred loan costs of $ 3,357 . (2) Includes one- to four-family construction loans. Real Estate Loans Other Loans One- to Four-Family (1) Home Equity Commercial Construction Commercial Consumer Unallocated Total (Dollars in thousands) December 31, 2017 Allowance for Loan Losses: Balance – January 1, 2017 $ 431 $ 114 $ 1,803 $ 150 $ 338 $ 28 $ 18 $ 2,882 Charge-offs - (3) (75) - (20) (41) - (139) Recoveries 3 4 - - 9 14 - 30 Provision (credit) 77 7 (65) 197 217 34 43 510 Balance – December 31, 2017 $ 511 $ 122 $ 1,663 $ 347 $ 544 $ 35 $ 61 $ 3,283 (1) Includes one- to four-family construction loans. |
Summary of Information Pertaining to Impaired Loans | Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized For the Year Ended At December 31, 2019 December 31, 2019 (Dollars in thousands) With no related allowance recorded: Residential, one- to four-family $ 166 $ 166 $ - $ 173 $ 10 Commercial real estate (1) - - - 27 - Total impaired loans with no related allowance 166 166 - 200 10 With an allowance recorded: Commercial real estate (2) - - - 260 8 Commercial loans (3) - - - 31 1 Total impaired loans with an allowance - - - 291 9 Total of impaired loans: Residential, one- to four-family 166 166 - 173 10 Commercial real estate - - - 287 8 Commercial loans - - - 31 1 Total impaired loans $ 166 $ 166 $ - $ 491 $ 19 (1) This loan was paid off during the twelve months ended December 31, 2019. (2) This line item consisted of two commercial real estate loans with a combined recorded investment of $294,000 and a related allowance of $40,000 . One commercial real estate loan was paid off in full and the other commercial real estate loan was charged off during the year ended December 31, 2019. (3) A commercial business loan with a recorded investment of $30,000 and a related allowance of $15,000 was partially paid off during the year ended December 31, 2019, with the remaining balance being recorded as a loss. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized For the Year Ended At December 31, 2018 December 31, 2018 (Dollars in thousands) With no related allowance recorded: Residential, one- to four-family $ 178 $ 178 $ - $ 180 $ 12 Home equity (1) - - - 17 - Commercial real estate 134 134 - 356 - Commercial loans - - - 59 1 Total impaired loans with no related allowance 312 312 - 612 13 With an allowance recorded: Commercial real estate (2) 248 248 30 1,249 4 Total impaired loans with an allowance 248 248 30 1,249 4 Total of impaired loans: Residential, one- to four-family 178 178 - 180 12 Home equity - - - 17 - Commercial real estate 382 382 30 1,605 4 Commercial loans - - - 59 1 Total impaired loans $ 560 $ 560 $ 30 $ 1,861 $ 17 (1) These loans were either paid off or foreclosed upon during the year ended December 31, 2018 . (2) Two commercial real estate loans with a combined recorded investment of $1.4 million and a related allowance of $60,000 were foreclosed upon during the year ended December 31, 2018. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized For the Year Ended At December 31, 2017 December 31, 2017 (Dollars in thousands) With no related allowance recorded: Residential, one- to four-family $ 184 $ 184 $ - $ 197 $ 15 Home equity 21 21 - 21 - Commercial real estate (1) 1,498 1,498 - 1,674 222 Commercial loans (2) 54 54 - 54 - Total impaired loans with no related allowance 1,757 1,757 - 1,946 237 With an allowance recorded: Commercial real estate - - - 230 - Commercial loans - - - 50 6 Total impaired loans with an allowance - - - 280 6 Total of impaired loans: Residential, one- to four-family 184 184 - 197 15 Home equity 21 21 - 21 - Commercial real estate 1,498 1,498 - 1,904 222 Commercial loans 54 54 - 104 6 Total impaired loans $ 1,757 $ 1,757 $ - $ 2,226 $ 243 (1) This loan was foreclosed upon during the year ended December 31, 2017 and was recorded in other assets at December 31, 2017. (2) This loan was paid off in full during the year ended December 31, 2017. |
Analysis of Past Due Loans and Non-Accruing Loans | 30-59 Days 60-89 Days 90 Days or More Total Past Current Total Loans Loans on Non- Past Due Past Due Past Due Due Due Receivable Accrual (Dollars in thousands) December 31, 2019: Real Estate Loans: Residential, one- to four-family (1) $ 1,245 $ 672 $ 1,924 $ 3,841 $ 150,908 $ 154,749 $ 2,845 Home equity 168 162 583 913 44,337 45,250 590 Commercial - 1,133 - 1,133 210,087 211,220 - Construction - commercial - - - - 32,299 32,299 - Other Loans: Commercial - - - - 26,720 26,720 - Consumer 8 - 2 10 1,287 1,297 2 Total $ 1,421 $ 1,967 $ 2,509 $ 5,897 $ 465,638 $ 471,535 $ 3,437 30-59 Days 60-89 Days 90 Days or More Total Past Current Total Loans Loans on Non- Past Due Past Due Past Due Due Due Receivable Accrual (Dollars in thousands) December 31, 2018: Real Estate Loans: Residential, one- to four-family (1) $ 851 $ 342 $ 1,361 $ 2,554 $ 152,470 $ 155,024 $ 2,310 Home equity 211 187 333 731 41,099 41,830 337 Commercial 76 - 306 382 150,093 150,475 382 Construction - commercial - - - - 22,252 22,252 - Other Loans: Commercial - - 15 15 21,810 21,825 15 Consumer 5 - - 5 1,151 1,156 - Total $ 1,143 $ 529 $ 2,015 $ 3,687 $ 388,875 $ 392,562 $ 3,044 (1) Includes one- to four-family construction loans. |
Summary of Internal Loan Grades Applied to Loan Portfolio | Pass/Performing Special Mention Substandard Doubtful Loss Total (Dollars in thousands) December 31, 2019 Real Estate Loans: Residential, one- to four-family (1) $ 152,115 $ - $ 2,634 $ - $ - $ 154,749 Home equity 44,403 - 847 - - 45,250 Commercial 208,042 2,573 605 - - 211,220 Construction - commercial 32,299 - - - - 32,299 Other Loans: Commercial 22,295 4,425 - - - 26,720 Consumer 1,295 - 2 - - 1,297 Total $ 460,449 $ 6,998 $ 4,088 $ - $ - $ 471,535 (1) Includes one- to four-family construction loans. Pass/Performing Special Mention Substandard Doubtful Loss Total (Dollars in thousands) December 31, 2018 Real Estate Loans: Residential, one- to four-family (1) $ 152,039 $ - $ 2,985 $ - $ - $ 155,024 Home equity 41,346 - 484 - - 41,830 Commercial 148,149 376 1,950 - - 150,475 Construction - commercial 22,252 - - - - 22,252 Other Loans: Commercial 20,722 61 1,042 - - 21,825 Consumer 1,153 - 3 - - 1,156 Total $ 385,661 $ 437 $ 6,464 $ - $ - $ 392,562 (1) Includes one- to four-family construction loans. |
Summary of Loans Classified as TDRs | Non-Accruing Accruing TDRs That Have Defaulted on Modified Terms Year to Date Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in thousands) At December 31, 2019 Real Estate Loans: Residential, one- to four-family 5 $ 166 1 $ 28 4 $ 138 - $ - At December 31, 2018 Real Estate Loans: Residential, one- to four-family 5 $ 178 1 $ 34 4 $ 144 1 $ 34 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment [Abstract] | |
Schedule of Premises and Equipment | December 31, 2019 2018 (Dollars in thousands) Land $ 1,206 $ 1,206 Buildings and improvements 12,936 12,782 Furniture and equipment 6,415 5,917 20,557 19,905 Accumulated depreciation (11,142) (10,488) $ 9,415 $ 9,417 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule of Deposits | December 31, 2019 2018 Weighted Weighted Average Average Amount Rate Amount Rate (Dollars in thousands) Demand deposits: Non-interest bearing $ 61,229 - % $ 55,327 - % Interest bearing 56,703 0.11 50,211 0.11 Money market accounts 141,398 1.35 119,885 0.90 Savings accounts 53,628 0.06 52,050 0.06 Time deposits 170,518 1.80 154,985 1.67 $ 483,476 1.05 % $ 432,458 0.87 % |
Schedule of Maturities of Time Deposits | 2020 $ 90,068 2021 51,938 2022 20,034 2023 6,068 2024 2,407 Thereafter 3 $ 170,518 |
Schedule of Interest Expense on Deposits | Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Interest bearing checking accounts $ 56 $ 58 $ 63 Money market accounts 1,408 825 283 Savings accounts 33 30 31 Time deposits 2,994 2,064 1,703 $ 4,491 $ 2,977 $ 2,080 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Long-term Debt from FHLBNY and Related Contractual Maturities | Weighted Average Interest Rate Amount Outstanding At December 31, At December 31, Maturity 2019 2018 2019 2018 (Dollars in thousands) 2019 - % 1.96 % $ - $ 6,250 2020 2.09 % 2.09 % 6,100 6,100 2021 2.30 % 2.30 % 7,800 7,800 2022 2.18 % 2.18 % 2,000 2,000 2023 2.34 % 2.36 % 4,750 2,500 2024 1.73 % - % 13,000 - 2025 2.01 % - % 1,000 - 2.04 % 2.16 % $ 34,650 $ 24,650 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Information Related to Lease Liabilities | For The Year Ended December 31, (in thousands, except for percent and period data) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 138 Operating cash flows from finance leases 126 Weighted-average remaining lease term, operating leases, in years 5.6 Weighted-average discount rate – operating leases 2.61 % |
Summary of Maturity of Remaining Lease Liabilities | Operating Finance Leases Lease (Dollars in thousands) 2020 $ 145 $ 126 2021 157 126 2022 157 126 2023 157 131 2024 157 136 2025 and thereafter 90 476 Total Lease Payments $ 863 $ 1,121 Less: Amounts representing interest (62) (377) Present value of lease liabilities $ 801 $ 744 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Schedule of Provision for Income Tax Expense | Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Current: Federal $ 692 $ 446 $ 960 State 4 4 6 Total Current 696 450 966 Deferred: Federal Federal - expected (41) 135 (43) Federal - Deferred tax asset remeasurement (1) - - 262 State - - - Total Deferred (41) 135 219 Total Income Tax Expense $ 655 $ 585 $ 1,185 (1) Represents a charge to write-down deferred tax assets due to the enactment of the Tax Act. |
Schedule of Reconciliation of Statutory Federal Income Tax | Years Ended December 31, 2019 2018 2017 Federal income tax at statutory rate 21.0 % 21.0 % 34.0 % State benefit, net of federal expense (4.0) (2.9) (2.2) Tax-exempt interest income (6.2) (7.3) (12.3) Deferred tax valuation allowance 4.1 3.0 2.3 Deferred tax remeasurement due to Tax Act - - 5.8 Life insurance income (2.2) (1.8) (2.7) Other 1.1 0.8 1.1 Total Income Tax Expense 13.8 % 12.8 % 26.0 % |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2019 2018 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 1,094 $ 879 Deferred compensation 1,060 1,091 Net operating loss ("NOL") 528 347 Right of use liability 206 - Accrued expenses 129 111 Impairment of equity investments 128 127 Stock options granted 13 9 Other 48 50 Total Deferred Tax Assets 3,206 2,614 Deferred tax liabilities: Deferred loan origination costs (910) (856) Depreciation (406) (322) Unrealized gains on securities available for sale (353) (34) Right of use asset (199) - Prepaid expenses (97) (79) Total Deferred Tax Liabilities (1,965) (1,291) Deferred tax valuation allowance (834) (638) Net Deferred Tax Asset $ 407 $ 685 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
2006 Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Status of Stock Option Plan | 2019 2018 2017 Options Weighted Average Exercise Price Remaining Contractual Life Options Weighted Average Exercise Price Remaining Contractual Life Options Weighted Average Exercise Price Remaining Contractual Life Outstanding at beginning of year 82,321 $ 12.98 82,321 $ 12.98 82,826 $ 12.95 Granted - - - - - - Exercised (17,773) 7.88 - - (505) 8.01 Outstanding at end of year 64,548 $ 14.38 6.8 years 82,321 $ 12.98 6.4 years 82,321 $ 12.98 7.4 years Options exercisable at end of year 38,726 $ 14.38 6.8 years 43,591 $ 11.73 6.4 years 30,681 $ 10.61 7.4 years Fair value of options granted $ - $ - $ - |
2006 Recognition and Retention Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Unvested Restricted Stock Activity | 2019 Weighted Average Grant Price (per Share) 2018 Weighted Average Grant Price (per Share) 2017 Weighted Average Grant Price (per Share) Unvested shares outstanding at beginning of year 10,188 $ 13.27 17,119 $ 13.06 24,110 $ 12.96 Granted - - - - - - Vested (6,933) 12.75 (6,931) 12.75 (6,991) 12.73 Unvested shares outstanding at end of year 3,255 $ 14.37 10,188 $ 13.27 17,119 $ 13.06 |
2012 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Status of Stock Option Plan | 2019 2018 2017 Options Exercise Price Remaining Contractual Life Options Exercise Price Remaining Contractual Life Options Exercise Price Remaining Contractual Life Outstanding at beginning of year 20,000 $ 14.38 20,000 $ 14.38 20,000 $ 14.38 Granted - - - - - - Exercised - - - - - - Forfeited - - - - - - Outstanding at end of year 20,000 $ 14.38 6.8 years 20,000 $ 14.38 7.8 years 20,000 $ 14.38 8.8 years Options exercisable at end of year 11,999 $ 14.38 6.8 years 7,997 $ 14.38 7.8 years 3,998 $ 14.38 8.8 years Fair value of options granted - - - |
Schedule of Unvested Restricted Stock Activity | 2019 Weighted Average Grant Price (per Share) 2018 Weighted Average Grant Price (per Share) 2017 Weighted Average Grant Price (per Share) Unvested shares outstanding at beginning of year 25,321 $ 15.28 42,915 $ 14.40 26,072 $ 12.77 Granted 5,186 15.89 5,329 17.00 27,348 15.90 Vested (29,647) 15.37 (22,128) 14.00 (9,880) 14.31 Forfeited (860) 15.90 (795) 14.85 (625) 13.76 Unvested shares outstanding at end of year - $ - 25,321 $ 15.28 42,915 $ 14.40 |
2012 Equity Incentive Plan [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Awards Granted | Grant Date Number of Restricted Stock Awards Vesting Fair Value per Share of Award on Grant Date Awardees February 6, 2019 5,186 100% on December 13, 2019 $ 15.89 Non-employee directors |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Assets Measured on Recurring Basis | Fair Value Measurements at December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Measured at fair value on a recurring basis: Securities available for sale: Debt Securities U.S. government agencies $ 2,145 $ 2,145 $ - $ - Municipal bonds 35,819 - 35,819 - Mortgage-backed securities: Collateralized mortgage obligations-private label 23 - 23 - Collateralized mortgage obligations-government sponsored entities 27,341 - 27,341 - Government National Mortgage Association 176 - 176 - Federal National Mortgage Association 2,013 - 2,013 - Federal Home Loan Mortgage Corporation 3,367 - 3,367 - Asset-backed securities: Private label 215 - 215 - Government sponsored entities 35 - 35 - Total Debt Securities $ 71,134 $ 2,145 $ 68,989 $ - Equity securities 67 - 67 - Total Securities Available for Sale $ 71,201 $ 2,145 $ 69,056 $ - Interest Rate Swap (1) $ (127) $ - $ (127) $ - (1) Included in Other Liabilities on the consolidated statements of financial condition. Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Measured at fair value on a recurring basis: Securities available for sale: Debt Securities U.S. government agencies $ 1,961 $ 1,961 $ - $ - Municipal bonds 44,942 - 44,942 - Mortgage-backed securities: Collateralized mortgage obligations-private label 27 - 27 - Collateralized mortgage obligations-government sponsored entities 32,453 - 32,453 - Government National Mortgage Association 199 - 199 - Federal National Mortgage Association 2,385 - 2,385 - Federal Home Loan Mortgage Corporation 3,888 - 3,888 - Asset-backed securities: - Private label 270 - 270 - Government sponsored entities 44 - 44 - Total Debt Securities $ 86,169 $ 1,961 $ 84,208 $ - Equity securities 24 - 24 - Total Securities Available for Sale $ 86,193 $ 1,961 $ 84,232 $ - Interest Rate Swap (1) $ (47) $ - $ (47) $ - (1) Included in Other Liabilities on the consolidated statements of financial condition. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | December 31, 2018 (Dollars in thousands) Beginning Balance $ 344 Total gains - realized/unrealized: Included in earnings - Included in other comprehensive loss - Total losses - realized/unrealized: - Included in earnings - Included in other comprehensive loss - Sales - Principal paydowns - Transfers to (out of) Level 3 (344) Ending Balance $ - |
Assets Measured at Fair Value on Nonrecurring Basis | Fair Value Measurements Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Measured at fair value on a non-recurring basis: At December 31, 2019 Foreclosed real estate $ 170 $ - $ - $ 170 At December 31, 2018 Impaired loans $ 252 $ - $ - $ 252 Foreclosed real estate 184 - - 184 |
Carrying Amount and Estimated Fair Value of Financial Instruments | Fair Value Measurements at December 31, 2019 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Financial assets: Cash and cash equivalents $ 30,289 $ 30,289 $ 30,289 $ - $ - Securities available for sale 71,201 71,201 2,145 69,056 - Federal Home Loan Bank stock 2,055 2,055 - 2,055 - Loans receivable, net 470,816 461,058 - - 461,058 Accrued interest receivable 2,153 2,153 - 2,153 - Interest rate swap (127) (127) - (127) - Financial liabilities: Deposits 483,476 486,487 - 486,487 - Long-term debt 34,650 34,658 - 34,658 - Accrued interest payable 79 79 - 79 - Off-balance-sheet financial instruments - - - - - Fair Value Measurements at December 31, 2018 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Financial assets: Cash and cash equivalents $ 30,751 $ 30,751 $ 30,751 $ - $ - Securities available for sale 86,193 86,193 1,961 84,232 - Federal Home Loan Bank stock 1,545 1,545 - 1,545 - Loans receivable, net 392,471 376,774 - - 376,774 Accrued interest receivable 1,913 1,913 - 1,913 - Interest rate swap (47) (47) - (47) - Financial liabilities: Deposits 432,458 435,547 - 435,547 - Long-term debt 24,650 24,292 - 24,292 - Accrued interest payable 63 63 - 63 - Off-balance-sheet financial instruments - - - - - |
Fair Value, Nonrecurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Additional Quantitative Information About Assets Measured at Fair Value | Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Estimate Valuation Technique Unobservable Input Range At December 31, 2019 Foreclosed real estate $ 170 Market valuation of property (1) Direct Disposal Costs (2) 7.00 - 10.00 % At December 31, 2018 Impaired loans $ 252 Market valuation of underlying collateral (1) Direct Disposal Costs (2) 7.00 - 20.33% Foreclosed real estate 184 Market valuation of property (1) Direct Disposal Costs (2) 7.00 - 10.00 % (1) Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable . (2) The fair value basis of impaired loans and foreclosed real estate may be adjusted to reflect management estimates of disposal costs including, but not necessarily limited to, real estate brokerage commissions, legal fees, and delinquent property taxes. |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual Minimum Ratio For Capital Adequacy Purposes Minimum Ratio To Be Well Capitalized Under Prompt Corrective Action Provisions Capital Conservation Buffer % Amount Ratio Amount Ratio Amount Ratio Actual Required At December 31, 2019 Total capital (to risk-weighted assets) $ 82,399 18.02 % 36,585 8.00 % 45,731 10.00 % 10.018 % 2.500 % Tier 1 capital (to risk-weighted assets) 78,136 17.09 % 27,438 6.00 % 36,585 8.00 % 11.086 % 2.500 % CET 1 capital (to risk-weighted assets) 78,136 17.09 % 20,579 4.50 % 29,725 6.50 % 12.586 % 2.500 % Tier 1 Leverage (to adjusted total assets) 78,136 13.01 % 24,031 4.00 % 30,038 5.00 % 9.006 % 2.500 % At December 31, 2018 Total capital (to risk-weighted assets) $ 79,662 20.59 % 30,948 8.00 % 38,685 10.00 % 12.592 % 1.875 % Tier 1 capital (to risk-weighted assets) 76,218 19.70 % 23,211 6.00 % 30,948 8.00 % 13.702 % 1.875 % CET 1 capital (to risk-weighted assets) 76,218 19.70 % 17,408 4.50 % 25,145 6.50 % 15.202 % 1.875 % Tier 1 Leverage (to adjusted total assets) 76,218 13.99 % 21,785 4.00 % 27,232 5.00 % 9.994 % 1.875 % |
Reconciliation of GAAP Capital to Regulatory Tier 1 and Total Capital | December 31, 2019 2018 (Dollars in thousands) GAAP (Equity) Capital: $ 79,467 $ 76,347 Plus: Unrealized gains on available-for-sale securities, net of tax (1,331) (129) Less: Additional tier 1 capital deductions - - Tier 1 Capital and CET1 Capital 78,136 76,218 Plus: Allowance for loan losses 4,267 3,448 Unrealized gains on available-for-sale securities includible in regulatory capital - - Less: Other investments required to be deducted (4) (4) Total Regulatory Capital $ 82,399 $ 79,662 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per Share [Abstract] | |
Calculated Basic and Diluted Earnings Per Share | Years Ended December 31, 2019 2018 2017 Numerator – net income $ 4,087,000 $ 4,000,000 $ 3,378,000 Denominator: Basic weighted average shares outstanding 6,002,214 6,075,798 6,110,365 Increase in weighted average shares outstanding due to: Stock options - 9,902 8,930 Diluted weighted average shares outstanding (1) 6,002,214 6,085,700 6,119,295 Earnings per share: Basic $ 0.68 $ 0.66 $ 0.55 Diluted $ 0.68 $ 0.66 $ 0.55 (1) Stock options to purchase 64,547 shares under the Stock Option Plan and 20,000 shares under the EIP at $14.38 were outstanding during 2019 and 2017, but were not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive. |
Commitments to Extend Credit (T
Commitments to Extend Credit (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments to Extend Credit [Abstract] | |
Outstanding Commitments to Extend Credit | Contract Amount December 31, December 31, 2019 2018 (Dollars in thousands) Commitments to grant loans $ 26,919 $ 41,901 Unfunded commitments under lines of credit $ 61,309 $ 52,371 |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Statements of Financial Condition | December 31, 2019 2018 (Dollars in thousands) Assets Cash and due from banks $ 1,793 $ 1,795 Investment in subsidiary 79,467 76,347 ESOP loan receivable 1,529 1,578 Other assets 89 89 Total assets $ 82,878 $ 79,809 Liabilities and Stockholders' Equity Other liabilities 38 5 Total stockholders' equity 82,840 79,804 Total liabilities and stockholders' equity $ 82,878 $ 79,809 |
Statements of Income | Statements of Income For the Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Interest Income $ 151 $ 152 $ 140 Dividend distributed by bank subsidiary 2,500 2,000 - Total Income 2,651 2,152 140 Non-interest Expenses 343 411 362 Income (Loss) before income taxes and equity in undistributed net income of subsidiary 2,308 1,741 (222) Income tax benefit (61) (72) (102) Income (Loss) before undistributed net income of subsidiary 2,369 1,813 (120) Equity in undistributed net income of subsidiary 1,718 2,187 3,498 Net Income $ 4,087 $ 4,000 $ 3,378 |
Statements of Comprehensive Income | Statements of Comprehensive Income For the Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Net Income $ 4,087 $ 4,000 $ 3,378 Other Comprehensive Income (Loss), net of tax: Unrealized holding gains (losses) on securities available for sale of subsidiary, net of tax (expense) benefit 2019 $(331) ; 2018 $187 ; 2017 $176 1,244 (703) (341) Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense 2019 $12 ; 2018 $30 ; 2017 $46 (42) (115) (89) Net gains on sales of securities included in net income of subsidiary, net of tax expense 2019 $- ; 2018 $- ; 2017 $83 - - (161) Total Other Comprehensive Income (Loss) 1,202 (818) (591) Total Comprehensive Income $ 5,289 $ 3,182 $ 2,787 |
Statements of Cash Flows | Statements of Cash Flows For the Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Cash Flows from Operating Activities: Net income $ 4,087 $ 4,000 $ 3,378 Adjustments to reconcile net income to net cash provided by operating activities: ESOP shares committed to be released 120 130 126 Stock based compensation expense 322 445 440 Increase in other assets (200) (200) (307) Increase in other liabilities 23 3 2 Equity in undistributed earnings of subsidiary (1,718) (2,187) (3,498) Net Cash Provided by Operating Activities 2,634 2,191 141 Cash Flows from Investing Activities: Activity in available for sale securities: Maturities, prepayments and calls - - 4 Payments received on ESOP loan 49 45 43 Net Cash Provided by Investing Activities 49 45 47 Cash Flows from Financing Activities: Proceeds from stock options exercised 6 - 4 Purchase of treasury stock (1,419) (1,448) (269) Cash dividends paid (1,272) (880) (743) Net Cash Used in Financing Activities (2,685) (2,328) (1,008) Net Decrease in Cash and Cash Equivalents (2) (92) (820) Cash and Cash Equivalents - Beginning 1,795 1,887 2,707 Cash and Cash Equivalents - Ending $ 1,793 $ 1,795 $ 1,887 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data – Unaudited [Abstract] | |
Quarterly Financial Information | Quarter Ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 (Dollars in thousands, except per share amounts) Total interest income $ 6,334 $ 6,319 $ 5,952 $ 5,662 Total interest expense 1,438 1,366 1,269 1,124 Net interest income 4,896 4,953 4,683 4,538 Provision for loan losses 175 300 350 75 Net interest income after provision for loan losses 4,721 4,653 4,333 4,463 Total non-interest income 688 669 546 589 Total non-interest expense 4,051 3,919 3,947 4,003 Income before income taxes 1,358 1,403 932 1,049 Income tax expense 186 191 127 151 Net income $ 1,172 $ 1,212 $ 805 $ 898 Basic and diluted earnings per share $ 0.20 $ 0.20 $ 0.13 $ 0.15 Quarter Ended December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 (Dollars in thousands, except per share amounts) Total interest income $ 5,671 $ 5,490 $ 5,267 $ 5,108 Total interest expense 1,011 955 860 776 Net interest income 4,660 4,535 4,407 4,332 Provision for loan losses 75 125 115 75 Net interest income after provision for loan losses 4,585 4,410 4,292 4,257 Total non-interest income 598 629 657 590 Total non-interest expense 4,056 3,837 3,782 3,758 Income before income taxes 1,127 1,202 1,167 1,089 Income tax expense 127 144 161 153 Net income $ 1,000 $ 1,058 $ 1,006 $ 936 Basic and diluted earnings per share $ 0.17 $ 0.17 $ 0.17 $ 0.15 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Comprehensive Income (Loss) [Abstract] | |
Tax Effects Allocated to Single Component of Other Comprehensive Income | For the Year Ended December 31, 2019 Pre-Tax Amount Tax Expense Net of Tax Amount (Dollars in thousands) Net unrealized gains on securities available for sale: Net unrealized gains arising during the year $ 1,575 $ (331) $ 1,244 Less: reclassification adjustment related to: Recovery on previously impaired investment securities included in net income (54) 12 (42) Total Other Comprehensive Income $ 1,521 $ (319) $ 1,202 For the Year Ended December 31, 2018 Pre-Tax Amount Tax Benefit Net of Tax Amount (Dollars in thousands) Net unrealized losses on securities available for sale: Net unrealized losses arising during the year $ (890) $ 187 $ (703) Less: reclassification adjustment related to: Recovery on previously impaired investment securities included in net income (145) 30 (115) Total Other Comprehensive Loss $ (1,035) $ 217 $ (818) For the Year Ended December 31, 2017 Pre-Tax Amount Tax Benefit Net of Tax Amount (Dollars in thousands) Net unrealized losses on securities available for sale: Net unrealized losses arising during the year $ (517) $ 176 $ (341) Less: reclassification adjustment related to: Recovery on previously impaired investment securities included in net income (135) 46 (89) Net gain on sale of securities included in net income (244) 83 (161) Total Other Comprehensive Loss $ (896) $ 305 $ (591) |
Reclassification Out of Accumulated Other Comprehensive Income | Amounts Reclassified from Accumulated Details about Accumulated Other Other Comprehensive Income Affected Line Item Comprehensive Income for the years ended December 31, on the Consolidated Components 2019 2018 2017 Statements of Income (Dollars in thousands) Net unrealized gains and losses on securities available for sale: Recovery on previously impaired investment securities $ (54) $ (145) $ (135) Recovery on previously impaired investment securities Sale of securities - - (244) Gain on sale of securities available for sale (54) (145) (379) Provision for income tax expense 12 30 129 Income Tax Expense Total reclassification for the period $ (42) $ (115) $ (250) Net Income |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Non-Interest Income, Segregated by Revenue Streams In-Scope and Out-of-Scope of Topic 606 | For the years ended December 31, 2019 2018 2017 (Dollars in thousands) Non-Interest Income In-Scope of Topic 606: Service charges on deposit accounts $ 817 $ 880 $ 912 Fees, interchange income and other service charges 848 804 741 Other 39 40 39 Non-interest Income (in-scope of Topic 606) 1,704 1,724 1,692 Non-interest Income (out of scope of Topic 606) 788 750 963 Total Non-Interest Income $ 2,492 $ 2,474 $ 2,655 |
Organization and Nature of Op_3
Organization and Nature of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 05, 2020 | Dec. 31, 2019 |
Organization And Nature Of Operations [Line Items] | ||
Entity incorporation, date of incorporation | Apr. 3, 2006 | |
MHC [Member] | ||
Organization And Nature Of Operations [Line Items] | ||
Equity securities common stock shares owned | 3,636,875 | |
Equity method investment, ownership percentage | 61.40% | |
Cumulative cash dividend waived | $ 12.4 | |
MHC [Member] | Subsequent Event [Member] | ||
Organization And Nature Of Operations [Line Items] | ||
Equity securities common stock shares owned | 3,636,875 | |
Equity method investment, ownership percentage | 61.40% | |
Dividends Waived [Member] | MHC [Member] | Subsequent Event [Member] | ||
Organization And Nature Of Operations [Line Items] | ||
Aggregate annual dividend per share | $ 0.50 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | Jan. 01, 2019USD ($)contract | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Foreclosed real estate | $ 779 | $ 678 | ||||
Proceeds from sale of foreclosed real estate | 81 | 1,510 | $ 331 | |||
Net gain on sale of foreclosed real estate | 5 | 44 | 8 | |||
Total advertising expense | $ 708 | $ 606 | $ 596 | |||
Federal tax rate | 21.00% | 21.00% | 34.00% | |||
Income tax expense due to net deferred tax asset remeasurement resulting from enactment of Tax Act | $ 262 | $ 262 | [1] | |||
Required reserve funds in cash or on deposit with Federal Reserve Bank | $ 2,914 | $ 2,790 | ||||
Operating lease liabilities | 801 | |||||
Operating lease ROU assets | $ 776 | |||||
Accounting Standards Update 2016-02 [Member] | ||||||
Operating lease liabilities | $ 916 | |||||
Operating lease ROU assets | $ 904 | |||||
Number of operating leases related to branch office space | contract | 2 | |||||
Cumulative effect of adoption of revised ASC Topic 220 | $ 10 | |||||
Buildings [Member] | ||||||
Property, plant and equipment, useful life | 39 years | |||||
Minimum [Member] | Furniture and Equipment [Member] | ||||||
Property, plant and equipment, useful life | 3 years | |||||
Maximum [Member] | Furniture and Equipment [Member] | ||||||
Property, plant and equipment, useful life | 15 years | |||||
[1] | Represents a charge to write-down deferred tax assets due to the enactment of the Tax Act. |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)securityshares | Dec. 31, 2018USD ($)securityshares | Dec. 31, 2017USD ($)security | |
Schedule of Investments [Line Items] | |||
Number of securities in unrealized losses less than twelve months category | security | 2 | ||
Number of securities in unrealized losses twelve months or more category | security | 25 | ||
Proceeds from sale of available for sale securities | $ 6,510 | ||
Unrealized gain on equity securities | $ 43 | $ 2 | |
Municipal bonds [Member] | |||
Schedule of Investments [Line Items] | |||
Number of securities sold | security | 18 | ||
Proceeds from sale of available for sale securities | $ 6,500 | ||
Gross realized gains | $ 244 | ||
Municipal bonds [Member] | Securities Pledged As Collateral Agreement With Federal Reserve Bank Of New York [Member] | |||
Schedule of Investments [Line Items] | |||
Investment owned balance, positions | security | 33 | 32 | |
Investment owned, at cost | $ 10,900 | $ 11,000 | |
Investment owned, at fair value | $ 11,200 | $ 11,200 | |
Municipal bonds [Member] | SecuritiesPledged As Collateral For Customer Deposits [Member] | |||
Schedule of Investments [Line Items] | |||
Investment owned balance, positions | security | 16 | 22 | |
Investment owned, at cost | $ 3,600 | $ 5,600 | |
Investment owned, at fair value | $ 3,700 | $ 5,600 | |
Debt Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Number of securities sold | security | 0 | 0 | |
Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Number of securities sold | security | 0 | 0 | 0 |
Unrealized gain on equity securities | $ 43 | $ 2 | |
Equity Securities [Member] | Federal Home Loan Mortgage Corporation [Member] | |||
Schedule of Investments [Line Items] | |||
Equity securities common stock shares owned | shares | 22,368 | 22,368 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Fair Value of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 69,472 | $ 86,028 |
Gross Unrealized Gains | 1,863 | 1,059 |
Gross Unrealized Losses | (134) | (894) |
Fair Value | 71,201 | 86,193 |
U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 2,011 | 2,012 |
Gross Unrealized Gains | 134 | |
Gross Unrealized Losses | (51) | |
Fair Value | 2,145 | 1,961 |
Municipal bonds [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 34,985 | 44,546 |
Gross Unrealized Gains | 835 | 521 |
Gross Unrealized Losses | (1) | (125) |
Fair Value | 35,819 | 44,942 |
Collateralized mortgage obligations - private label [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 23 | 27 |
Fair Value | 23 | 27 |
Collateralized mortgage obligations - government sponsored entities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 27,081 | 32,987 |
Gross Unrealized Gains | 393 | 152 |
Gross Unrealized Losses | (133) | (686) |
Fair Value | 27,341 | 32,453 |
Government National Mortgage Association [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 162 | 191 |
Gross Unrealized Gains | 14 | 8 |
Fair Value | 176 | 199 |
Federal National Mortgage Association [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 1,944 | 2,367 |
Gross Unrealized Gains | 69 | 41 |
Gross Unrealized Losses | (23) | |
Fair Value | 2,013 | 2,385 |
Federal Home Loan Mortgage Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 3,211 | 3,833 |
Gross Unrealized Gains | 156 | 64 |
Gross Unrealized Losses | (9) | |
Fair Value | 3,367 | 3,888 |
Asset-backed securities - Private label [Member] | ||
Schedule of Investments [Line Items] | ||
Gross Unrealized Gains | 215 | 270 |
Fair Value | 215 | 270 |
Asset-backed securities - Government sponsored entities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 33 | 43 |
Gross Unrealized Gains | 2 | 1 |
Fair Value | 35 | 44 |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 69,450 | 86,006 |
Gross Unrealized Gains | 1,818 | 1,057 |
Gross Unrealized Losses | (134) | (894) |
Fair Value | 71,134 | 86,169 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 22 | 22 |
Gross Unrealized Gains | 45 | 2 |
Fair Value | $ 67 | $ 24 |
Investment Securities (Investme
Investment Securities (Investment in Debt Securities Available for Sale Gross Unrealized Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Less than Twelve Months, Fair Value | $ 822 | $ 2,267 |
Less than 12 Months, Gross Unrealized Losses | (4) | (10) |
12 Months or More, Fair Value | 10,676 | 29,325 |
12 Months or More, Gross Unrealized Losses | (130) | (884) |
Fair Value | 11,498 | 31,592 |
Gross Unrealized Losses | (134) | (894) |
U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
12 Months or More, Fair Value | 1,961 | |
12 Months or More, Gross Unrealized Losses | (51) | |
Fair Value | 1,961 | |
Gross Unrealized Losses | (51) | |
Municipal bonds [Member] | ||
Schedule of Investments [Line Items] | ||
Less than Twelve Months, Fair Value | 399 | 1,531 |
Less than 12 Months, Gross Unrealized Losses | (1) | (5) |
12 Months or More, Fair Value | 4,299 | |
12 Months or More, Gross Unrealized Losses | (120) | |
Fair Value | 399 | 5,830 |
Gross Unrealized Losses | (1) | (125) |
Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than Twelve Months, Fair Value | 423 | 736 |
Less than 12 Months, Gross Unrealized Losses | (3) | (5) |
12 Months or More, Fair Value | 10,676 | 23,065 |
12 Months or More, Gross Unrealized Losses | (130) | (713) |
Fair Value | 11,099 | 23,801 |
Gross Unrealized Losses | $ (133) | $ (718) |
Investment Securities (Summary
Investment Securities (Summary of Credit-Related OTTI Charges Recognized as Components of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Securities [Abstract] | ||
Beginning balance | $ 347 | $ 435 |
Additions: Credit loss not previously recognized | ||
Reductions: Losses realized during the period on OTTI previously recognized | ||
Reductions: Receipt of cash flows on previously recorded OTTI | (53) | (88) |
Ending balance | $ 294 | $ 347 |
Investment Securities (Schedule
Investment Securities (Scheduled Contractual Maturities of Available for Sale Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 69,472 | $ 86,028 |
Fair Value | 71,201 | 86,193 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 22 | 22 |
Fair Value | 67 | $ 24 |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than one year- Amortized Cost | 480 | |
After one year through five years - Amortized Cost | 7,223 | |
After five years through ten years - Amortized Cost | 13,836 | |
After ten years - Amortized Cost | 15,457 | |
Amortized Cost | 69,450 | |
Less than one year- Fair Value | 481 | |
After one year through five years - Fair Value | 7,306 | |
After five years through ten years - Fair Value | 14,048 | |
After ten years - Fair Value | 16,129 | |
Fair Value | 71,134 | |
Debt Securities [Member] | Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Other securities - Amortized Cost | 32,421 | |
Other securities - Fair Value | 32,920 | |
Debt Securities [Member] | Asset-backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Other securities - Amortized Cost | 33 | |
Other securities - Fair Value | $ 250 |
Loans Receivable (Narrative) (D
Loans Receivable (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | $ 21.2 | $ 20.1 |
Real Estate Loans: One-to-Four Family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral for advances from the FHLB | 111.3 | |
Multifamily Real Estate Loans [Member] | Loan Receivable [Member] | Credit Concentration Risk [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration of risk loans receivable amount | $ 103.3 | |
Concentration of credit risk, percent | 125.40% | |
Real Estate Loans on Office Properties [Member] | Loan Receivable [Member] | Credit Concentration Risk [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration of risk loans receivable amount | $ 38.7 | |
Concentration of credit risk, percent | 47.00% |
Loans Receivable (Schedule of L
Loans Receivable (Schedule of Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and Leases Receivable, Gross | $ 471,535 | [1] | $ 392,562 | [2] | |||
Allowance for loan losses | (4,267) | (3,448) | $ (3,283) | $ (2,882) | |||
Net deferred loan costs | 3,548 | 3,357 | |||||
Loans Receivable, Net | 470,816 | 392,471 | |||||
Total Real Estate Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and Leases Receivable, Gross | 443,518 | 369,581 | |||||
Real Estate Loans: One-to-Four Family [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and Leases Receivable, Gross | [3] | 154,749 | 155,024 | ||||
Real Estate Loans: Home Equity [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and Leases Receivable, Gross | 45,250 | [1] | 41,830 | [2] | |||
Allowance for loan losses | (129) | (91) | (122) | (114) | |||
Real Estate Loans: Commercial [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and Leases Receivable, Gross | 211,220 | [1] | 150,475 | [2] | |||
Allowance for loan losses | (2,682) | (2,020) | (1,663) | (1,803) | |||
Real Estate Loans: Construction - Commercial [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and Leases Receivable, Gross | 32,299 | [1] | 22,252 | [2] | |||
Allowance for loan losses | (388) | (250) | (347) | (150) | |||
Other Loans: Commercial [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and Leases Receivable, Gross | 26,720 | [1] | 21,825 | [2] | |||
Allowance for loan losses | (478) | (507) | (544) | (338) | |||
Other Loans: Consumer [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and Leases Receivable, Gross | 1,297 | [1] | 1,156 | [2] | |||
Allowance for loan losses | (26) | (25) | (35) | (28) | |||
Unallocated Financing Receivables [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and Leases Receivable, Gross | [1] | [2] | |||||
Allowance for loan losses | $ (128) | $ (84) | $ (61) | $ (18) | |||
[1] | Gross Loans Receivable does not include allowance for loan losses of $(4,267) or deferred loan costs of $3,548. | ||||||
[2] | Gross Loans Receivable does not include allowance for loan losses of $(3,448) or deferred loan costs of $3,357. | ||||||
[3] | Includes one- to four-family construction loans. |
Allowance for Loan Losses (Narr
Allowance for Loan Losses (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($) | |
Financing Receivable, Past Due [Line Items] | |||
Interest income not recognized on non-accrual loans | $ 148,000 | $ 237,000 | $ 265,000 |
Loan commitments to lend additional funds to TDR | $ 0 | $ 0 | |
Loans restructured and classified as TDRs | loan | 0 | 0 | |
Foreclosed real estate property | $ 779,000 | $ 678,000 | |
Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Mortgage loans in process of foreclosure | $ 1,800,000 | $ 1,100,000 |
Allowance for Loan Losses (Summ
Allowance for Loan Losses (Summary of Activity in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance, beginning | $ 3,448 | $ 3,283 | $ 2,882 | |||
Charge-offs | (102) | (255) | (139) | |||
Recoveries | 21 | 30 | 30 | |||
Provision (credit) | 900 | 390 | 510 | |||
Balance, ending | 4,267 | 3,448 | 3,283 | |||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 30 | |||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 4,267 | 3,418 | ||||
Ending balance: Gross Loans Receivable | 471,535 | [1] | 392,562 | [2] | ||
Loans Receivable: Ending balance: individually evaluated for impairment | 166 | [1],[3] | 560 | [2] | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 471,369 | [1] | 392,002 | [2] | ||
Deferred loan costs | 3,548 | 3,357 | ||||
Real Estate Loans Including One-To Four-Family Construction Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance, beginning | [4] | 471 | 511 | 431 | ||
Charge-offs | [4] | (2) | (23) | |||
Recoveries | [4] | 9 | 19 | 3 | ||
Provision (credit) | [4] | (42) | (36) | 77 | ||
Balance, ending | [4] | 436 | 471 | 511 | ||
Allowance for loan losses: Ending balance: individually evaluated for impairment | [4] | |||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | [4] | 436 | 471 | |||
Ending balance: Gross Loans Receivable | [4] | 154,749 | [1] | 155,024 | [2] | |
Loans Receivable: Ending balance: individually evaluated for impairment | [4] | 166 | [1],[3] | 178 | [2] | |
Loans Receivable: Ending balance: collectively evaluated for impairment | [4] | 154,583 | [1] | 154,846 | [2] | |
Real Estate Loans: Home Equity [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance, beginning | 91 | 122 | 114 | |||
Charge-offs | (4) | (3) | ||||
Recoveries | 1 | 2 | 4 | |||
Provision (credit) | 41 | (33) | 7 | |||
Balance, ending | 129 | 91 | 122 | |||
Allowance for loan losses: Ending balance: individually evaluated for impairment | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 129 | 91 | ||||
Ending balance: Gross Loans Receivable | 45,250 | [1] | 41,830 | [2] | ||
Loans Receivable: Ending balance: individually evaluated for impairment | [2] | |||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 45,250 | [1] | 41,830 | [2] | ||
Real Estate Loans: Commercial [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance, beginning | 2,020 | 1,663 | 1,803 | |||
Charge-offs | (50) | (181) | (75) | |||
Recoveries | 3 | 1 | ||||
Provision (credit) | 709 | 537 | (65) | |||
Balance, ending | 2,682 | 2,020 | 1,663 | |||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 30 | |||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 2,682 | 1,990 | ||||
Ending balance: Gross Loans Receivable | 211,220 | [1] | 150,475 | [2] | ||
Loans Receivable: Ending balance: individually evaluated for impairment | [2] | 382 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 211,220 | [1] | 150,093 | [2] | ||
Real Estate Loans: Construction - Commercial [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance, beginning | 250 | 347 | 150 | |||
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | 138 | (97) | 197 | |||
Balance, ending | 388 | 250 | 347 | |||
Allowance for loan losses: Ending balance: individually evaluated for impairment | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 388 | 250 | ||||
Ending balance: Gross Loans Receivable | 32,299 | [1] | 22,252 | [2] | ||
Loans Receivable: Ending balance: individually evaluated for impairment | [2] | |||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 32,299 | [1] | 22,252 | [2] | ||
Other Loans: Commercial [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance, beginning | 507 | 544 | 338 | |||
Charge-offs | (6) | (20) | ||||
Recoveries | 1 | 9 | ||||
Provision (credit) | (23) | (38) | 217 | |||
Balance, ending | 478 | 507 | 544 | |||
Allowance for loan losses: Ending balance: individually evaluated for impairment | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 478 | 507 | ||||
Ending balance: Gross Loans Receivable | 26,720 | [1] | 21,825 | [2] | ||
Loans Receivable: Ending balance: individually evaluated for impairment | [2] | |||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 26,720 | [1] | 21,825 | [2] | ||
Other Loans: Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance, beginning | 25 | 35 | 28 | |||
Charge-offs | (40) | (51) | (41) | |||
Recoveries | 8 | 7 | 14 | |||
Provision (credit) | 33 | 34 | 34 | |||
Balance, ending | 26 | 25 | 35 | |||
Allowance for loan losses: Ending balance: individually evaluated for impairment | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 26 | 25 | ||||
Ending balance: Gross Loans Receivable | 1,297 | [1] | 1,156 | [2] | ||
Loans Receivable: Ending balance: individually evaluated for impairment | [2] | |||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 1,297 | [1] | 1,156 | [2] | ||
Unallocated Financing Receivables [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance, beginning | 84 | 61 | 18 | |||
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | 44 | 23 | 43 | |||
Balance, ending | 128 | 84 | $ 61 | |||
Allowance for loan losses: Ending balance: individually evaluated for impairment | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 128 | 84 | ||||
Ending balance: Gross Loans Receivable | [1] | [2] | ||||
Loans Receivable: Ending balance: individually evaluated for impairment | [1],[3] | [2] | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | [1] | [2] | ||||
[1] | Gross Loans Receivable does not include allowance for loan losses of $(4,267) or deferred loan costs of $3,548. | |||||
[2] | Gross Loans Receivable does not include allowance for loan losses of $(3,448) or deferred loan costs of $3,357. | |||||
[3] | Gross Loans Receivable does not include allowance for loan losses of $(4,267) or deferred loan costs of $3,548.Includes one- to-f | |||||
[4] | Includes one- to four-family construction loans. |
Allowance for Loan Losses (Su_2
Allowance for Loan Losses (Summary of Information Pertaining to Impaired Loans ) (Details) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($) | |||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded investment, with no related allowance | $ 166 | $ 312 | $ 1,757 | ||||
Unpaid principal balance, with no related allowance | 166 | 312 | 1,757 | ||||
Average recorded investment, with no related allowance | 200 | 612 | 1,946 | ||||
Interest income recognized, with no related allowance | 10 | 13 | 237 | ||||
Recorded investment, with related allowance | 248 | ||||||
Unpaid principal balance, with related allowance | 248 | ||||||
Related allowance | 30 | ||||||
Average recorded investment with related allowance | 291 | 1,249 | 280 | ||||
Interest income recognized, with related allowance | 9 | 4 | 6 | ||||
Recorded Investment, total | 166 | 560 | 1,757 | ||||
Unpaid Principal Balance, Total | 166 | 560 | 1,757 | ||||
Average Recorded Investment, Total | 491 | 1,861 | 2,226 | ||||
Interest Income Recognized, Total | 19 | 17 | 243 | ||||
Real Estate Loans: One-to-Four Family [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded investment, with no related allowance | 166 | 178 | 184 | ||||
Unpaid principal balance, with no related allowance | 166 | 178 | 184 | ||||
Average recorded investment, with no related allowance | 173 | 180 | 197 | ||||
Interest income recognized, with no related allowance | 10 | 12 | 15 | ||||
Recorded Investment, total | 166 | 178 | 184 | ||||
Unpaid Principal Balance, Total | 166 | 178 | 184 | ||||
Average Recorded Investment, Total | 173 | 180 | 197 | ||||
Interest Income Recognized, Total | 10 | 12 | 15 | ||||
Real Estate Loans: Home Equity [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded investment, with no related allowance | 21 | ||||||
Unpaid principal balance, with no related allowance | 21 | ||||||
Average recorded investment, with no related allowance | 17 | [1] | 21 | ||||
Recorded Investment, total | 21 | ||||||
Unpaid Principal Balance, Total | 21 | ||||||
Average Recorded Investment, Total | 17 | 21 | |||||
Real Estate Loans: Commercial [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded investment, with no related allowance | 134 | 1,498 | [2] | ||||
Unpaid principal balance, with no related allowance | 134 | 1,498 | [2] | ||||
Average recorded investment, with no related allowance | 27 | [3] | 356 | 1,674 | [2] | ||
Interest income recognized, with no related allowance | [2] | 222 | |||||
Recorded investment, with related allowance | [4] | 248 | |||||
Unpaid principal balance, with related allowance | [4] | 248 | |||||
Related allowance | [4] | 30 | |||||
Average recorded investment with related allowance | 260 | [5] | 1,249 | [4] | 230 | ||
Interest income recognized, with related allowance | 8 | [5] | 4 | [4] | |||
Recorded Investment, total | 382 | 1,498 | |||||
Unpaid Principal Balance, Total | 382 | 1,498 | |||||
Average Recorded Investment, Total | 287 | 1,605 | 1,904 | ||||
Interest Income Recognized, Total | $ 8 | 4 | 222 | ||||
Real Estate Loans: Commercial [Member] | Paid Off In Full [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Number of real estate loans | loan | 1 | ||||||
Real Estate Loans: Commercial [Member] | Real Estate Acquired in Satisfaction of Debt [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded investment, with related allowance | $ 294 | 1,400 | |||||
Related allowance | $ 40 | $ 60 | |||||
Number of real estate loans | loan | 2 | 2 | |||||
Other Loans: Commercial [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded investment, with no related allowance | [6] | 54 | |||||
Unpaid principal balance, with no related allowance | [6] | 54 | |||||
Average recorded investment, with no related allowance | $ 59 | 54 | [6] | ||||
Interest income recognized, with no related allowance | 1 | ||||||
Recorded investment, with related allowance | $ 30 | ||||||
Related allowance | 15 | ||||||
Average recorded investment with related allowance | 31 | [7] | 50 | ||||
Interest income recognized, with related allowance | 1 | [7] | 6 | ||||
Recorded Investment, total | 54 | ||||||
Unpaid Principal Balance, Total | 54 | ||||||
Average Recorded Investment, Total | 31 | 59 | 104 | ||||
Interest Income Recognized, Total | $ 1 | $ 1 | $ 6 | ||||
[1] | These loans were either paid off or foreclosed upon during the year ended December 31, 2018 | ||||||
[2] | This loan was foreclosed upon during the year ended December 31, 2017 and was recorded in other assets at December 31, 2017. | ||||||
[3] | This loan was paid off during the twelve months ended December 31, 2019. | ||||||
[4] | Two commercial real estate loans with a combined recorded investment of $1.4 million and a related allowance of $60,000 were foreclosed upon during the year ended December 31, 2018. | ||||||
[5] | This line item consisted of two commercial real estate loans with a combined recorded investment of $294,000 and a related allowance of $40,000. One commercial real estate loan was paid off in full and the other commercial real estate loan was charged off during the year ended December 31, 2019. | ||||||
[6] | This loan was paid off in full during the year ended December 31, 2017. | ||||||
[7] | A commercial business loan with a recorded investment of $30,000 and a related allowance of $15,000 was partially paid off during the year ended December 31, 2019, with the remaining balance being recorded as a loss. |
Allowance for Loan Losses (Anal
Allowance for Loan Losses (Analysis of Past Due Loans and Non-Accruing Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | $ 5,897 | $ 3,687 | |||
Current Due | 465,638 | 388,875 | |||
Total Loans Receivable | 471,535 | [1] | 392,562 | [2] | |
Loans on Non-Accrual | 3,437 | 3,044 | |||
Real Estate Loans: One-to-Four Family [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | [3] | 3,841 | 2,554 | ||
Current Due | [3] | 150,908 | 152,470 | ||
Total Loans Receivable | [4] | 154,749 | 155,024 | ||
Loans on Non-Accrual | [3] | 2,845 | 2,310 | ||
Real Estate Loans: Home Equity [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 913 | 731 | |||
Current Due | 44,337 | 41,099 | |||
Total Loans Receivable | 45,250 | [1] | 41,830 | [2] | |
Loans on Non-Accrual | 590 | 337 | |||
Real Estate Loans: Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 1,133 | 382 | |||
Current Due | 210,087 | 150,093 | |||
Total Loans Receivable | 211,220 | [1] | 150,475 | [2] | |
Loans on Non-Accrual | 382 | ||||
Real Estate Loans: Construction - Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Current Due | 32,299 | 22,252 | |||
Total Loans Receivable | 32,299 | [1] | 22,252 | [2] | |
Other Loans: Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 15 | ||||
Current Due | 26,720 | 21,810 | |||
Total Loans Receivable | 26,720 | [1] | 21,825 | [2] | |
Loans on Non-Accrual | 15 | ||||
Other Loans: Consumer [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 10 | 5 | |||
Current Due | 1,287 | 1,151 | |||
Total Loans Receivable | 1,297 | [1] | 1,156 | [2] | |
Loans on Non-Accrual | 2 | ||||
Financial Asset, 30 to 59 Days Past Due [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 1,421 | 1,143 | |||
Financial Asset, 30 to 59 Days Past Due [Member] | Real Estate Loans: One-to-Four Family [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | [3] | 1,245 | 851 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Real Estate Loans: Home Equity [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 168 | 211 | |||
Financial Asset, 30 to 59 Days Past Due [Member] | Real Estate Loans: Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 76 | ||||
Financial Asset, 30 to 59 Days Past Due [Member] | Other Loans: Consumer [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 8 | 5 | |||
Financial Asset, 60 to 89 Days Past Due [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 1,967 | 529 | |||
Financial Asset, 60 to 89 Days Past Due [Member] | Real Estate Loans: One-to-Four Family [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | [3] | 672 | 342 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Real Estate Loans: Home Equity [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 162 | 187 | |||
Financial Asset, 60 to 89 Days Past Due [Member] | Real Estate Loans: Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 1,133 | ||||
Financing Receivables, 90 Days or More Past Due [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 2,509 | 2,015 | |||
Financing Receivables, 90 Days or More Past Due [Member] | Real Estate Loans: One-to-Four Family [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | [3] | 1,924 | 1,361 | ||
Financing Receivables, 90 Days or More Past Due [Member] | Real Estate Loans: Home Equity [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 583 | 333 | |||
Financing Receivables, 90 Days or More Past Due [Member] | Real Estate Loans: Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 306 | ||||
Financing Receivables, 90 Days or More Past Due [Member] | Other Loans: Commercial [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | $ 15 | ||||
Financing Receivables, 90 Days or More Past Due [Member] | Other Loans: Consumer [Member] | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | $ 2 | ||||
[1] | Gross Loans Receivable does not include allowance for loan losses of $(4,267) or deferred loan costs of $3,548. | ||||
[2] | Gross Loans Receivable does not include allowance for loan losses of $(3,448) or deferred loan costs of $3,357. | ||||
[3] | Includes one- to four-family construction loans. | ||||
[4] | Includes one- to four-family construction loans. |
Allowance for Loan Losses (Su_3
Allowance for Loan Losses (Summary of Internal Loan Grades Applied to Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | $ 471,535 | [1] | $ 392,562 | [2] | |
Pass/ Performing [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 460,449 | 385,661 | |||
Special Mention [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 6,998 | 437 | |||
Substandard [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 4,088 | 6,464 | |||
Real Estate Loans: One-to-Four Family [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | [3] | 154,749 | 155,024 | ||
Real Estate Loans: One-to-Four Family [Member] | Pass/ Performing [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | [4] | 152,115 | 152,039 | ||
Real Estate Loans: One-to-Four Family [Member] | Substandard [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | [4] | 2,634 | 2,985 | ||
Real Estate Loans: Home Equity [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 45,250 | [1] | 41,830 | [2] | |
Real Estate Loans: Home Equity [Member] | Pass/ Performing [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 44,403 | 41,346 | |||
Real Estate Loans: Home Equity [Member] | Substandard [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 847 | 484 | |||
Real Estate Loans: Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 211,220 | [1] | 150,475 | [2] | |
Real Estate Loans: Commercial [Member] | Pass/ Performing [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 208,042 | 148,149 | |||
Real Estate Loans: Commercial [Member] | Special Mention [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 2,573 | 376 | |||
Real Estate Loans: Commercial [Member] | Substandard [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 605 | 1,950 | |||
Real Estate Loans: Construction - Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 32,299 | [1] | 22,252 | [2] | |
Real Estate Loans: Construction - Commercial [Member] | Pass/ Performing [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 32,299 | 22,252 | |||
Other Loans: Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 26,720 | [1] | 21,825 | [2] | |
Other Loans: Commercial [Member] | Pass/ Performing [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 22,295 | 20,722 | |||
Other Loans: Commercial [Member] | Special Mention [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 4,425 | 61 | |||
Other Loans: Commercial [Member] | Substandard [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 1,042 | ||||
Other Loans: Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 1,297 | [1] | 1,156 | [2] | |
Other Loans: Consumer [Member] | Pass/ Performing [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | 1,295 | 1,153 | |||
Other Loans: Consumer [Member] | Substandard [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Gross | $ 2 | $ 3 | |||
[1] | Gross Loans Receivable does not include allowance for loan losses of $(4,267) or deferred loan costs of $3,548. | ||||
[2] | Gross Loans Receivable does not include allowance for loan losses of $(3,448) or deferred loan costs of $3,357. | ||||
[3] | Includes one- to four-family construction loans. | ||||
[4] | Includes one- to four-family construction loans. |
Allowance for Loan Losses (Su_4
Allowance for Loan Losses (Summary of Loans Classified as TDRs) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 0 | 0 |
Real Estate Loans: One-to-Four Family [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 34 | |
Real Estate Loans: One-to-Four Family [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 5 | 5 |
Recorded Investment | $ | $ 166 | $ 178 |
Real Estate Loans: One-to-Four Family [Member] | Non Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 1 | 1 |
Recorded Investment | $ | $ 28 | $ 34 |
Real Estate Loans: One-to-Four Family [Member] | Accruing Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | 4 | 4 |
Recorded Investment | $ | $ 138 | $ 144 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | $ 20,557 | $ 19,905 | |
Accumulated depreciation | (11,142) | (10,488) | |
Premises and equipment, net | 9,415 | 9,417 | |
Depreciation and amortization of premises and equipment | 809 | 774 | $ 852 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | 1,206 | 1,206 | |
Buildings and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | 12,936 | 12,782 | |
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | $ 6,415 | $ 5,917 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Time Deposit, $250,000 or More | $ 32.2 | $ 30.2 |
Deposits of directors, executive officers and their affiliates | $ 7.5 | $ 6.5 |
Deposits (Schedule of Deposits)
Deposits (Schedule of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Demand deposits: Non-interest bearing | $ 61,229 | $ 55,327 |
Demand deposits: Interest bearing | 56,703 | 50,211 |
Money market accounts | 141,398 | 119,885 |
Savings accounts | 53,628 | 52,050 |
Time deposits | 170,518 | 154,985 |
Total Deposits | $ 483,476 | $ 432,458 |
Weighted Average Rate - Demand deposits: Non-interest bearing | ||
Weighted Average Rate - Demand deposits: Interest bearing | 0.11% | 0.11% |
Weighted Average Rate - Money market accounts | 1.35% | 0.90% |
Weighted Average Rate - Savings accounts | 0.06% | 0.06% |
Weighted Average Rate - Time deposits | 1.80% | 1.67% |
Weighted Average Rate on Total Deposits | 1.05% | 0.87% |
Deposits (Schedule of Maturitie
Deposits (Schedule of Maturities of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
2020 | $ 90,068 | |
2021 | 51,938 | |
2022 | 20,034 | |
2023 | 6,068 | |
2024 | 2,407 | |
Thereafter | 3 | |
Time deposits | $ 170,518 | $ 154,985 |
Deposits (Schedule of Interest
Deposits (Schedule of Interest Expense on Deposits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deposits [Abstract] | |||
Interest bearing checking accounts | $ 56 | $ 58 | $ 63 |
Money market accounts | 1,408 | 825 | 283 |
Savings accounts | 33 | 30 | 31 |
Time deposits | 2,994 | 2,064 | 1,703 |
Interest expense on deposits | $ 4,491 | $ 2,977 | $ 2,080 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 0 | $ 0 |
Federal home loan bank maximum lending value | 111,300,000 | 107,800,000 |
Federal home loan bank advances outstanding | 34,700,000 | 24,700,000 |
Federal Reserve Bank Advances [Member] | ||
Debt Instrument [Line Items] | ||
Book value of securities pledged as collateral to borrow | 10,900,000 | 11,000,000 |
Fair value of securities pledged as collateral | 11,200,000 | 11,200,000 |
Federal reserve bank, overnight borrowings outstanding | 0 | 0 |
Correspondent Bank [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 22,000,000 | |
Line of credit outstanding balances | 0 | $ 0 |
Unsecured Debt [Member] | Correspondent Bank [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 20,000,000 | |
Secured Debt [Member] | Correspondent Bank [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 2,000,000 |
Borrowings (Long-term Debt from
Borrowings (Long-term Debt from FHLBNY and Related Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Borrowings [Abstract] | ||
Amount Outstanding, Maturity in Year One | $ 6,100 | $ 6,250 |
Amount Outstanding, Maturity in Year Two | 7,800 | 6,100 |
Amount Outstanding, Maturity in Year Three | 2,000 | 7,800 |
Amount Outstanding, Maturity in Year Four | 4,750 | 2,000 |
Amount Outstanding, Maturity in Year Five | 13,000 | 2,500 |
Amount Outstanding, Maturity in Year Six | 1,000 | |
Long-term Federal Home Loan Bank Advances, Total | $ 34,650 | $ 24,650 |
Weighted Average Interest Rate, Maturity in Year One | 2.09% | 1.96% |
Weighted Average Interest Rate, Maturity in Year Two | 2.30% | 2.09% |
Weighted Average Interest Rate, Maturity in Year Three | 2.18% | 2.30% |
Weighted Average Interest Rate, Maturity in Year Four | 2.34% | 2.18% |
Weighted Average Interest Rate, Maturity in Year Five | 1.73% | 2.36% |
Weighted Average Interest Rate, Maturity in Year Six | 2.01% | |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 2.04% | 2.16% |
Leases Obligations (Narrative)
Leases Obligations (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)agreement | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating lease extention options | 5 years | ||
Operating lease ROU assets | $ 776 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | ||
Operating lease liabilities | $ 801 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | ||
Operating lease costs | $ 151 | $ 157 | $ 156 |
Outstanding balance of finance lease | 744 | ||
Premises and equipment | 20,557 | 19,905 | |
Accumulated depreciation | $ 11,142 | 10,488 | |
Finance Lease [Member] | |||
Number of long-term finance lease agreement | agreement | 1 | ||
Outstanding balance of finance lease | $ 744 | 797 | |
Finance lease weighted-average discount rate | 9.22% | ||
Finance lease remaning term | 8 years 6 months | ||
Premises and equipment | $ 1,100 | 1,100 | |
Accumulated depreciation | $ 590 | $ 548 |
Lease Obligations (Summary of I
Lease Obligations (Summary of Information Related to Leases Liabilities) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 138 |
Operating cash flows from finance leases | $ 126 |
Weighted-average remaining lease term, operating leases, in years | 5 years 7 months 6 days |
Weighted-average discount rate – operating leases | 2.61% |
Lease Obligations (Summary of M
Lease Obligations (Summary of Maturity of Remaining Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 145 |
2021 | 157 |
2022 | 157 |
2023 | 157 |
2024 | 157 |
2025 and thereafter | 90 |
Total Lease Payments | 863 |
Less: Amounts representing interest | (62) |
Present value of lease liabilities | 801 |
Finance Lease | |
2020 | 126 |
2021 | 126 |
2022 | 126 |
2023 | 131 |
2024 | 136 |
2025 and thereafter | 476 |
Total Lease Payments | 1,121 |
Less: Amounts representing interest | (377) |
Present value of lease liabilities | $ 744 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Federal income tax at statutory rate | 21.00% | 21.00% | 34.00% | |||
Income tax expense due to net deferred tax asset remeasurement resulting from enactment of Tax Act | $ 262 | $ 262 | [1] | |||
Deferred tax asset valuation allowance | $ 834 | $ 638 | ||||
Amount of unrecognized deferred tax liability, bad debt reserve | 2,200 | 2,200 | ||||
Accounting Standards Update 2018-02 [Member] | ||||||
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI | $ 156 | |||||
Deferred Tax Asset for 2011 Other Than Temporary Impairment Charge [Member] | ||||||
Deferred tax asset valuation allowance | $ 128 | |||||
IRS [Member] | Tax Year 2016 [Member] | ||||||
Tax year subject to examination | 2016 | |||||
IRS [Member] | Tax Year 2017 [Member] | ||||||
Tax year subject to examination | 2017 | |||||
IRS [Member] | Tax Year 2018 [Member] | ||||||
Tax year subject to examination | 2018 | |||||
New York State Taxation [Member] | ||||||
Deferred tax asset valuation allowance | $ 706 | |||||
Percentage deduction of net interest income received from qualifying loans due to change in tax laws | 50.00% | |||||
New York State Taxation [Member] | Capital Gain Tax Valuation [Member] | ||||||
Deferred tax asset valuation allowance | $ 195 | $ 137 | ||||
New York State Taxation [Member] | Tax Year 2016 [Member] | ||||||
Tax year subject to examination | 2016 | |||||
New York State Taxation [Member] | Tax Year 2017 [Member] | ||||||
Tax year subject to examination | 2017 | |||||
New York State Taxation [Member] | Tax Year 2018 [Member] | ||||||
Tax year subject to examination | 2018 | |||||
[1] | Represents a charge to write-down deferred tax assets due to the enactment of the Tax Act. |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provision for Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Taxes [Abstract] | |||||||||||||
Current: Federal | $ 692 | $ 446 | $ 960 | ||||||||||
Current: State | 4 | 4 | 6 | ||||||||||
Total Current | 696 | 450 | 966 | ||||||||||
Deferred - Federal - expected | (41) | 135 | (43) | ||||||||||
Deffered - Federal - Deferred tax asset remeasurement | $ 262 | 262 | [1] | ||||||||||
Total Deferred | (41) | 135 | 219 | ||||||||||
Total Income Tax Expense | $ 186 | $ 191 | $ 127 | $ 151 | $ 127 | $ 144 | $ 161 | $ 153 | $ 655 | $ 585 | $ 1,185 | ||
[1] | Represents a charge to write-down deferred tax assets due to the enactment of the Tax Act. |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Statutory Federal Income Tax) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Federal income tax at statutory rate | 21.00% | 21.00% | 34.00% |
State benefit, net of federal expense | (4.00%) | (2.90%) | (2.20%) |
Tax-exempt interest income | (6.20%) | (7.30%) | (12.30%) |
Deferred tax valuation allowance | 4.10% | 3.00% | 2.30% |
Deferred tax remeasurement due to Tax Act | 5.80% | ||
Life insurance income | (2.20%) | (1.80%) | (2.70%) |
Other | 1.10% | 0.80% | 1.10% |
Total Income Tax Expense | 13.80% | 12.80% | 26.00% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Deferred tax assets: Allowance for loan losses | $ 1,094 | $ 879 |
Deferred tax assets: Deferred compensation | 1,060 | 1,091 |
Deferred tax assets: Net Operating Loss ("NOL") | 528 | 347 |
Deferred tax assets: Right of use liability | 206 | |
Deferred tax assets: Accrued expenses | 129 | 111 |
Deferred tax assets: Impairment of equity investments | 128 | 127 |
Deferred tax assets: Stock options granted | 13 | 9 |
Deferred tax assets: Other | 48 | 50 |
Total Deferred Tax Assets | 3,206 | 2,614 |
Deferred tax liabilities: Deferred loan origination costs | (910) | (856) |
Deferred tax liabilities: Depreciation | (406) | (322) |
Deferred tax liabilities: Unrealized gains on securities available for sale | (353) | (34) |
Deferred tax liabilities: Right of use assets | (199) | |
Deferred Tax Liabilities: Prepaid Expenses | (97) | (79) |
Total Deferred Tax Liabilities | (1,965) | (1,291) |
Deferred tax valuation allowance | (834) | (638) |
Net Deferred Tax Assets | $ 407 | $ 685 |
Employee and Director Benefit_2
Employee and Director Benefit Plans (Details) $ in Thousands | Mar. 29, 2018USD ($)employeeitem | May 18, 2016 | Jan. 27, 2016 | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)employeeitem | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Purchase of additional bank owned life insurance | $ 3,000 | ||||||
401(k) [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
401(k) eligibility criteria | The Company maintains a 401(k) savings plan covering employees who have completed three months of service and attained age 21. | ||||||
Defined contribution plan, description | For the 401(k) component, the Company makes a matching contribution equal to 40% of the participant salary deferral, up to 6% of such employee's compensation after one year of service. | ||||||
Maximum employee contribution of employee gross pay | 75.00% | ||||||
Defined contribution plan, employer matching percentage of employee deferral | 40.00% | ||||||
Defined contribution plan cost recognized | $ 523 | 485 | $ 434 | ||||
401(k) [Member] | Maximum [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Defined contribution plan, employer discretionary matching contribution , percent | 6.00% | ||||||
Profit Sharing [Member] | Maximum [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Defined contribution plan, employer discretionary matching contribution , percent | 5.10% | ||||||
Safe Harbor Discretionary Employer Contribution [Member] | Maximum [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Defined contribution plan, employer discretionary matching contribution , percent | 3.40% | ||||||
1999 Supplemental Benefit Plans [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Cash surrender value of life insurance | $ 7,400 | $ 7,600 | 7,400 | ||||
Benefit obligation | $ 1,000 | $ 832 | $ 1,000 | ||||
Discount rate for projected benefit obligation | 6.17% | 6.17% | 6.17% | ||||
Defined benefit plan description | Effective October 1, 1999, the Company initiated a non-qualified Executive Supplemental Benefit Plan and a non-qualified Directors Supplemental Benefit Plan (the "1999 Plans"). Both plans are unfunded and provide a predefined annual benefit to be paid to executives and directors for fifteen years upon their retirement. The Company can set aside assets to fund the liability which will be subject to claims of the Company's creditors upon liquidation of the Company. The Company has purchased bank owned life insurance for the purpose of funding the liability. The cash surrender value of bank owned life insurance amounted to $7.6 million and $7.4 million at December 31, 2019 and 2018, respectively. Annual benefits increase at a predetermined amount until the executive or director reaches a predetermined retirement age. Predefined benefits are 100% vested at all times and in the event of death, are guaranteed to continue at the full amount to their designated beneficiaries. | ||||||
Benefit plan postretirement benefit payout period | 15 years | ||||||
Compensation cost | $ 59 | $ 69 | 75 | ||||
Non-Qualified Executive Supplemental Benefit Plans and Non-Qualified Directors Supplemental Benefit Plan - "The 2001 Plan" [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Benefit obligation | $ 2,300 | $ 2,300 | $ 2,300 | ||||
Discount rate for projected benefit obligation | 6.17% | 6.17% | 6.17% | ||||
Defined benefit plan description | Effective October 1, 2001, the Company initiated a non-qualified Executive Supplemental Benefit Plan and a non-qualified Director's Supplemental Benefit Plan (collectively, the "2001 Plans"). The Company amended and restated the 2001 plans effective November 1, 2015. | ||||||
Benefit plan amendment description | Effective January 27, 2016, the Company amended the 2001 Supplemental Benefit Plan for Directors, resulting in a change to the benefit formula from a fixed, pre-determined dollar benefit. The formula provides a benefit equal to a percentage of the director's average pay. The average pay is multiplied by number of years of service, not to exceed 20 years of service or 40% of average final pay. The benefit is payable over a period of fifteen years beginning the month following age 72, unless termination occurs due to disability, death or a change in control. Effective May 18, 2016, the Company amended the 2001 Supplemental Benefit Plan for Executives resulting in a change in the benefit formula from a fixed, pre-determined dollar benefit to a formula-based benefit. The formula provides a benefit equal to a percentage of the executive's average pay. The average pay is multiplied by number of years of service, not to exceed 20 years of service or 40% of average final pay. A reduced benefit is payable if a termination of service occurs prior to age 65. The benefit is payable over a period of fifteen years beginning the month following age 65, unless termination occurs due to disability, death or a change in control. | ||||||
Supplemental Executive Retirement Plan - 2012 Plan [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Benefit obligation | $ 587 | $ 738 | $ 587 | ||||
Discount rate for projected benefit obligation | 5.12% | 5.12% | 5.12% | ||||
Defined benefit plan description | Effective June 30, 2012, the Company implemented a Supplemental Executive Benefit Plan (the "2012 Plan") with one executive. The 2012 Plan provides that when the Executive attains age 67, the Executive will be entitled to a fixed, pre-determined annual benefit under the 2012 Plan, which will be paid in monthly installments for 15 years. The 2012 Plan was amended on May 18, 2016 to update the fixed, pre-determined annual benefit amount. The 2012 Plan provides for a reduced benefit in the event the Executive terminates his employment for a reason other than death, disability, cause or a change in control, before the Executive attains the age 67, which will be paid in monthly installments for 15 years. In the event of death, the vested benefit is payable to the beneficiary as a lump sum payment. | ||||||
Benefit plan, full benefit eligibility retirement age | item | 67 | ||||||
Number of executive under supplemental executive benefit plan | employee | 1 | ||||||
Benefit plan postretirement benefit payout period | 15 years | ||||||
Non-Qualified Executive Supplemental Benefit Plans and Non-Qualified Directors Supplemental Benefit Plans - "The 2001 and 2012 Plans" [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Cash surrender value of life insurance | $ 11,000 | $ 11,300 | $ 11,000 | ||||
Compensation cost | $ 397 | 404 | $ 338 | ||||
Non-Qualified Supplemental Benefit Plans for Directors 2001 [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Maximum years of service multiplied with average final pay | 20 years | ||||||
Percent applied on average final pay to determine benefit | 40.00% | ||||||
Benefit plan postretirement benefit payout period | 15 years | ||||||
Non-Qualified Executive Supplemental Benefit Plans 2001 [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Defined benefit plan description | Effective May 18, 2016, the Company amended the 2001 Supplemental Benefit Plan for Executives resulting in a change in the benefit formula from a fixed, pre-determined dollar benefit to a formula-based benefit. The formula provides a benefit equal to a percentage of the executive's average pay. The average pay is multiplied by number of years of service, not to exceed 20 years of service or 40% of average final pay. A reduced benefit is payable if a termination of service occurs prior to age 65. The benefit is payable over a period of fifteen years beginning the month following age 65, unless termination occurs due to disability, death or a change in control. | ||||||
Maximum years of service multiplied with average final pay | 20 years | ||||||
Percent applied on average final pay to determine benefit | 40.00% | ||||||
Benefit plan postretirement benefit payout period | 15 years | ||||||
2018 Retention Agreement [Member] | |||||||
Defined Contribution And Defined Benefit Plans Disclosure [Line Items] | |||||||
Cash surrender value of life insurance | 3,000 | $ 3,100 | 3,000 | ||||
Benefit obligation | $ 65 | $ 157 | $ 65 | ||||
Discount rate for projected benefit obligation | 5.12% | 5.12% | 5.12% | ||||
Defined benefit plan description | Effective March 29, 2018, the Company entered into a Retention Agreement with one executive. The agreement provides that the Executive will receive a payment of $1.4 million (the "Normal Retention Payment") provided that the Executive remains continuously employed with the Bank through March 29, 2028 (the "Retention Date"). The Normal Retention Payment will be paid in three equal installments on March 29, 2028, January 2, 2029, and January 2, 2030. If the Executive's employment is terminated without cause or for good reason (as defined in the agreement) prior to the Retention Date, the Executive will receive the vested account balance as set forth in the agreement. In the event that the Executive's employment terminates prior to the Retention Date due to death or disability, the Executive or his beneficiary, as applicable, will generally receive the vested account balance. If the Executive's employment is terminated prior to the Retention Date, and within two years of a change in control (as defined in the agreement), the Executive will receive the Normal Retention Payment in a lump sum payment. | ||||||
Aggregate amount payable under retention agreement | $ 1,400 | ||||||
Compensation cost | $ 92 | $ 65 | |||||
Bank owned life insurance | $ 3,000 | ||||||
Number Of Equal Payment Installments | item | 3 | ||||||
Number of executives under retention agreement | employee | 1 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($)itemshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2006USD ($)$ / sharesshares | May 23, 2012shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of stock-based compensation plans | item | 4 | ||||
Stock options exercised, shares | shares | 17,773 | 505 | |||
ESOP compensation expense | $ 120 | $ 130 | $ 126 | ||
ESOP, shares earned | shares | 7,935 | 7,935 | 7,935 | ||
2006 Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 34 | $ 34 | $ 34 | ||
Share-based compensation arrangement description | The Company's 2006 Stock Option Plan (the "Stock Option Plan"), which was approved by the Company's stockholders, permitted the grant of options to its employees and non-employee directors for up to 297,562 shares of common stock. The Stock Option Plan expired on October 24, 2016, and grants of options can no longer be awarded.Both incentive stock options and non-qualified stock options have been granted under the Stock Option Plan. The exercise price of each stock option equals the market price of the Company's common stock on the date of grant and an option's maximum term is ten years. The stock options generally vest over a five year period. | ||||
Stock option award vesting period | 5 years | ||||
Stock options outstanding intrinsic value | $ 65 | ||||
Stock options exercised, shares | shares | 17,773 | 505 | |||
Intrinsic value of stock options exercised | $ 125 | $ 4 | |||
Stock awards available for grant, shares | shares | 0 | ||||
Unrecognized compensation cost related to options | $ 62 | ||||
Unrecognized compensation cost, recognition period | 22 months | ||||
2006 Recognition and Retention Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 66 | $ 89 | $ 89 | ||
Share-based compensation arrangement description | The Company's 2006 Recognition and Retention Plan ("RRP"), which was approved by the Company's stockholders, permitted the grant of restricted stock awards ("Awards") to employees and non-employee directors for up to 119,025 shares of common stock. The RRP expired on October 24, 2016, and as of October 24, 2016 all shares permitted under the plan have been granted. | ||||
Unrecognized compensation cost, recognition period | 22 months | ||||
Number of RRP shares vested or distributed to eligible participants | shares | 115,770 | ||||
Unrecognized compensation cost related to awards | $ 42 | ||||
2012 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement description | The Company's 2012 Equity Incentive Plan (the "EIP"), which was approved by the Company's stockholders on May 23, 2012, authorizes the issuance of up to 180,000 shares of common stock pursuant to grants of restricted stock awards and up to 20,000 shares of common stock pursuant to grants of incentive stock options and non-qualified stock options, subject to permitted adjustments for certain corporate transactions. Employees and non-employee directors of Lake Shore Bancorp or its subsidiaries are eligible to receive awards under the EIP, except that non-employee directors may not be granted incentive stock options. | ||||
Employee Stock Ownership Plan "ESOP" [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award requisite service period | 5 years | ||||
ESOP, loan amount | $ 1,500 | $ 2,600 | |||
ESOP, shares acquired | shares | 238,050 | ||||
ESOP, stock purchase price | $ / shares | $ 10.70 | ||||
ESOP, reduction to stockholders' equity from purchased shares | $ 2,600 | ||||
ESOP, fair value of unallocated shares | $ 2,000 | ||||
ESOP, number of allocated shares | shares | 80,517 | 77,874 | 70,353 | ||
ESOP, number of unallocated shares | shares | 126,960 | 134,895 | 142,830 | ||
ESOP compensation expense | $ 120 | $ 130 | $ 126 | ||
ESOP, shares earned | shares | 7,935 | 7,935 | 7,935 | ||
Restricted Stock [Member] | 2012 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 212 | $ 311 | $ 306 | ||
Shares vested or distributed to eligible participants | shares | 83,572 | ||||
Stock Option [Member] | 2012 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 10 | 11 | 10 | ||
Stock options outstanding intrinsic value | $ 20 | ||||
Stock awards available for grant, shares | shares | 0 | ||||
Unrecognized compensation cost related to options | $ 19 | ||||
Unrecognized compensation cost, recognition period | 22 months | ||||
Non-Interest Expense Section [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 442 | $ 575 | $ 566 | ||
Maximum [Member] | 2006 Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation number of shares authorized | shares | 297,562 | ||||
Share-based payment award expiration period | 10 years | ||||
Maximum [Member] | 2006 Recognition and Retention Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation number of shares authorized | shares | 119,025 | ||||
Maximum [Member] | Restricted Stock [Member] | 2012 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation number of shares authorized | shares | 180,000 | ||||
Maximum [Member] | Stock Option [Member] | 2012 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation number of shares authorized | shares | 20,000 |
Stock-based Compensation (Summa
Stock-based Compensation (Summary of Status of Stock Option Plan) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercised | (17,773) | (505) | |
Outstanding at beginning of year, Weighted Average Exercise Price | $ 14.38 | $ 14.38 | |
Granted, Weighted Average Exercise Price | $ 14.38 | $ 14.38 | |
Outstanding at end of period, Weighted Average Exercise Price | $ 14.38 | $ 14.38 | |
2006 Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of year | 82,321 | 82,321 | 82,826 |
Granted | |||
Exercised | (17,773) | (505) | |
Outstanding at end of period | 64,548 | 82,321 | 82,321 |
Options exercisable at end of period | 38,726 | 43,591 | 30,681 |
Outstanding at beginning of year, Weighted Average Exercise Price | $ 12.98 | $ 12.98 | $ 12.95 |
Granted, Weighted Average Exercise Price | |||
Exercised, Weighted Average Exercise Price | 7.88 | 8.01 | |
Outstanding at end of period, Weighted Average Exercise Price | 14.38 | 12.98 | 12.98 |
Options exercisable at end of period, Weighted Average Exercise Price | 14.38 | $ 11.73 | $ 10.61 |
Fair value of options granted | |||
Options Outstanding at end of period, Remaining Contractual Life | 6 years 9 months 18 days | 6 years 4 months 24 days | 7 years 4 months 24 days |
Options Exercisable at end of period, Remaining Contractual Life | 6 years 9 months 18 days | 6 years 4 months 24 days | 7 years 4 months 24 days |
2012 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of year | 20,000 | 20,000 | 20,000 |
Outstanding at end of period | 20,000 | 20,000 | 20,000 |
Options exercisable at end of period | 11,999 | 7,997 | 3,998 |
Outstanding at beginning of year, Weighted Average Exercise Price | $ 14.38 | $ 14.38 | $ 14.38 |
Outstanding at end of period, Weighted Average Exercise Price | 14.38 | 14.38 | 14.38 |
Options exercisable at end of period, Weighted Average Exercise Price | $ 14.38 | $ 14.38 | $ 14.38 |
Options Outstanding at end of period, Remaining Contractual Life | 6 years 9 months 18 days | 7 years 9 months 18 days | 8 years 9 months 18 days |
Options Exercisable at end of period, Remaining Contractual Life | 6 years 9 months 18 days | 7 years 9 months 18 days | 8 years 9 months 18 days |
Stock-based Compensation (Sched
Stock-based Compensation (Schedule of Unvested Restricted Stock Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
2006 Recognition and Retention Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested shares outstanding at beginning of year | 10,188 | 17,119 | 24,110 |
Granted | |||
Vested | (6,933) | (6,931) | (6,991) |
Unvested shares outstanding at end of period | 3,255 | 10,188 | 17,119 |
Unvested shares outstanding at beginning of year, Weighted Average Grant Price | $ 13.27 | $ 13.06 | $ 12.96 |
Granted, Weighted Average Grant Price | |||
Vested, Weighted Average Grant Price | 12.75 | 12.75 | 12.73 |
Unvested shares outstanding at end of period, Weighted Average Grant Price | $ 14.37 | $ 13.27 | $ 13.06 |
2012 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested shares outstanding at beginning of year | 25,321 | 42,915 | 26,072 |
Granted | 5,186 | 5,329 | 27,348 |
Vested | (29,647) | (22,128) | (9,880) |
Forfeited | (860) | (795) | (625) |
Unvested shares outstanding at end of period | 25,321 | 42,915 | |
Unvested shares outstanding at beginning of year, Weighted Average Grant Price | $ 15.28 | $ 14.40 | $ 12.77 |
Granted, Weighted Average Grant Price | 15.89 | 17 | 15.90 |
Vested, Weighted Average Grant Price | 15.37 | 14 | 14.31 |
Forfeited, Weighted average Grant Price | $ 15.90 | 14.85 | 13.76 |
Unvested shares outstanding at end of period, Weighted Average Grant Price | $ 15.28 | $ 14.40 |
Stock-based Compensation (Sch_2
Stock-based Compensation (Schedule of Awards Granted ) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
2006 Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Stock Option Awards | |||
2006 Recognition and Retention Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair Value per Share of Award on Grant Date | |||
2012 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair Value per Share of Award on Grant Date | $ 15.89 | $ 17 | $ 15.90 |
Restricted Stock [Member] | 2012 Equity Incentive Plan [Member] | February 6, 2019 [Member] | Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Restricted Stock Awards | 5,186 | ||
Vesting | 100% on December 13, 2019 | ||
Percentage of Awards Vesting | 100.00% | ||
Fair Value per Share of Award on Grant Date | $ 15.89 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recorded investment, with related allowance | $ 248,000 | |
Impaired financing receivable, related allowance | 30,000 | |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurements valuation technique | Interest Rate Swap – the fair value is based on a discounted cash flow model. The model's key assumptions include the contractual term of the derivative contract, including the period to maturity, and the use of observable market based inputs, such as interest rates, yield curves, nonperformance risk and implied volatility. | |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurements valuation technique | Periodically, the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of these loans. Non-recurring adjustments also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for loan losses. An impaired loan is carried at fair value based on either a recent appraisal less estimated selling costs of underlying collateral or discounted cash flows based on current market conditions. | |
Fair Value, Recurring [Member] | Asset-backed securities - Private label [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset-backed securities transferred from level 3 to level 2 category description | During the year ended December 31, 2018, asset-backed securities – private label were transferred from the Level 3 category to the Level 2 category. These securities were transferred to Level 2 because the Company changed its method of valuing these securities and that method now uses Level 2 inputs. | |
Fair Value Inputs Level 1 And Level 2 [Member] | Fair Value, Recurring [Member] | Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Reclassifications between the Level 1 and Level 2, description | Any transfers between levels would be recognized as of the actual date of event or change in circumstances that caused the transfer. There were no reclassifications between the Level 1 and Level 2 categories for the years ended December 31, 2019 and 2018. | |
Reclassifications amount between the Level 1 and Level 2 categories | $ 0 | |
Fair value measurements valuation technique | Investment securities available for sale - the fair values are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1) or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities' relationship to other benchmark quoted prices. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution date, market consensus prepayment projections, credit information, and the security' terms and conditions, among other things. Level 2 securities which are fixed income instruments that are not quoted on an exchange, but are traded in active markets, are valued using prices obtained from our custodian, who use third party data service providers. | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurements valuation technique | Level 2 inputs for assets or liabilities measured at fair value on a recurring basis might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment projections, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. The following is a description of valuation methodologies used for financial assets recorded at fair value on a recurring basis: | |
Impaired Loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recorded investment, with related allowance | 282,000 | |
Impaired financing receivable, related allowance | 30,000 | |
Foreclosed Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recorded investment, with related allowance | $ 221,000 | 260,000 |
Impaired financing receivable, related allowance | $ 51,000 | $ 76,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Fair Value of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 71,201 | $ 86,193 | |
Derivative, Fair Value | (127) | (47) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,145 | 1,961 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 69,056 | 84,232 | |
Derivative, Fair Value | (127) | (47) | |
U.S. Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,145 | 1,961 | |
Municipal bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 35,819 | 44,942 | |
Collateralized mortgage obligations - private label [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 23 | 27 | |
Collateralized mortgage obligations - government sponsored entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 27,341 | 32,453 | |
Asset-backed securities - Private label [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 215 | 270 | |
Asset-backed securities - Government sponsored entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 35 | 44 | |
Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 71,134 | 86,169 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 67 | 24 | |
Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 71,201 | 86,193 | |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,145 | 1,961 | |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 69,056 | 84,232 | |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | U.S. Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,145 | 1,961 | |
Fair Value, Recurring [Member] | U.S. Government Agencies [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,145 | 1,961 | |
Fair Value, Recurring [Member] | U.S. Government Agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | U.S. Government Agencies [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Municipal bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 35,819 | 44,942 | |
Fair Value, Recurring [Member] | Municipal bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Municipal bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 35,819 | 44,942 | |
Fair Value, Recurring [Member] | Municipal bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Collateralized mortgage obligations - private label [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 23 | 27 | |
Fair Value, Recurring [Member] | Collateralized mortgage obligations - private label [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Collateralized mortgage obligations - private label [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 23 | 27 | |
Fair Value, Recurring [Member] | Collateralized mortgage obligations - private label [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Collateralized mortgage obligations - government sponsored entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 27,341 | 32,453 | |
Fair Value, Recurring [Member] | Collateralized mortgage obligations - government sponsored entities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Collateralized mortgage obligations - government sponsored entities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 27,341 | 32,453 | |
Fair Value, Recurring [Member] | Collateralized mortgage obligations - government sponsored entities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Government National Mortgage Association [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 176 | 199 | |
Fair Value, Recurring [Member] | Government National Mortgage Association [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Government National Mortgage Association [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 176 | 199 | |
Fair Value, Recurring [Member] | Government National Mortgage Association [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Federal National Mortgage Association [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,013 | 2,385 | |
Fair Value, Recurring [Member] | Federal National Mortgage Association [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Federal National Mortgage Association [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,013 | 2,385 | |
Fair Value, Recurring [Member] | Federal National Mortgage Association [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Federal Home Loan Mortgage Corporation [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 3,367 | 3,888 | |
Fair Value, Recurring [Member] | Federal Home Loan Mortgage Corporation [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Federal Home Loan Mortgage Corporation [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 3,367 | 3,888 | |
Fair Value, Recurring [Member] | Federal Home Loan Mortgage Corporation [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Asset-backed securities - Private label [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 215 | 270 | |
Fair Value, Recurring [Member] | Asset-backed securities - Private label [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Asset-backed securities - Private label [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 215 | 270 | |
Fair Value, Recurring [Member] | Asset-backed securities - Private label [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Asset-backed securities - Government sponsored entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 35 | 44 | |
Fair Value, Recurring [Member] | Asset-backed securities - Government sponsored entities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Asset-backed securities - Government sponsored entities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 35 | 44 | |
Fair Value, Recurring [Member] | Asset-backed securities - Government sponsored entities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 71,134 | 86,169 | |
Fair Value, Recurring [Member] | Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,145 | 1,961 | |
Fair Value, Recurring [Member] | Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 68,989 | 84,208 | |
Fair Value, Recurring [Member] | Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 67 | 24 | |
Fair Value, Recurring [Member] | Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 67 | 24 | |
Fair Value, Recurring [Member] | Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, Fair Value | [1] | (127) | (47) |
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, Fair Value | [1] | ||
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, Fair Value | [1] | (127) | $ (47) |
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, Fair Value | [1] | ||
[1] | Included in Other Liabilities on the consolidated statements of financial condition. |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) - Significant Unobservable Inputs (Level 3) [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Beginning Balance | $ 344 |
Sales | |
Principal Paydowns | |
Transfers to (out of) Level 3 | (344) |
Ending Balance | |
Total Gains - Realized/Unrealized [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Included in earnings | |
Included in other comprehensive loss | |
Total Losses - Realized/Unrealized [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Included in earnings | |
Included in other comprehensive loss |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Assets Measured at Fair Value on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Impaired loans | $ 166 | $ 560 | $ 1,757 |
Foreclosed real estate | 779 | 678 | |
Fair Value, Nonrecurring [Member] | |||
Impaired loans | 252 | ||
Foreclosed real estate | 170 | 184 | |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Impaired loans | 252 | ||
Foreclosed real estate | $ 170 | $ 184 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Additional Quantitative Information About Assets Measured at Fair Value) (Details) - Significant Unobservable Inputs (Level 3) [Member] - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Impaired Loans [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value Estimate | [1],[2] | $ 252 | |
Foreclosed Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value Estimate | [1],[2] | $ 170 | $ 184 |
Market Valuation of Underlying Collateral [Member] | Impaired Loans [Member] | Minimum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value measurements, Direct Disposal Costs | [1],[2] | 7.00% | |
Market Valuation of Underlying Collateral [Member] | Impaired Loans [Member] | Maximum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value measurements, Direct Disposal Costs | [1],[2] | 20.33% | |
Market Valuation of Property [Member] | Foreclosed Real Estate [Member] | Minimum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value measurements, Direct Disposal Costs | [1],[2] | 7.00% | 7.00% |
Market Valuation of Property [Member] | Foreclosed Real Estate [Member] | Maximum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value measurements, Direct Disposal Costs | [1],[2] | 10.00% | 10.00% |
[1] | Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable | ||
[2] | The fair value basis of impaired loans and foreclosed real estate may be adjusted to reflect management estimates of disposal costs including, but not necessarily limited to, real estate brokerage commissions, legal fees, and delinquent property taxes. |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments (Carrying Amount and Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets: Cash and cash equivalents | $ 30,289 | $ 30,751 |
Financial assets: Securities available for sale, carrying amount and fair value | 71,201 | 86,193 |
Financial assets: Federal Home Loan Bank stock | 2,055 | 1,545 |
Financial assets: Loans receivable, net | 461,058 | 376,774 |
Financial assets: Accrued interest receivable | 2,153 | 1,913 |
Financial assets: Interest rate swap | (127) | (47) |
Financial liabilities: Deposits | 486,487 | 435,547 |
Financial liabilities: Long-term debt | 34,658 | 24,292 |
Financial liabilities: Accrued interest payable | 79 | 63 |
Financial assets: Cash and cash equivalents, Carrying Amount | 30,289 | 30,751 |
Financial assets: Federal Home Loan Bank stock, Carrying Amount | 2,055 | 1,545 |
Financial assets: Loans receivable, net, Carrying Amount | 470,816 | 392,471 |
Financial assets: Accrued interest receivable, Carrying Amount | 2,153 | 1,913 |
Financial liabilities: Deposits, Carrying Amount | 483,476 | 432,458 |
Financial liabilities: Long-term debt, Carrying Amount | 34,650 | 24,650 |
Financial liabilities: Accrued interest payable, Carrying Amount | 79 | 63 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets: Cash and cash equivalents | 30,289 | 30,751 |
Financial assets: Securities available for sale, carrying amount and fair value | 2,145 | 1,961 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets: Securities available for sale, carrying amount and fair value | 69,056 | 84,232 |
Financial assets: Federal Home Loan Bank stock | 2,055 | 1,545 |
Financial assets: Accrued interest receivable | 2,153 | 1,913 |
Financial assets: Interest rate swap | (127) | (47) |
Financial liabilities: Deposits | 486,487 | 435,547 |
Financial liabilities: Long-term debt | 34,658 | 24,292 |
Financial liabilities: Accrued interest payable | 79 | 63 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets: Loans receivable, net | $ 461,058 | $ 376,774 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations ) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Actual Total capital (to risk-weighted assets) - Amount | $ 82,399 | $ 79,662 |
Actual Tier 1 capital (to risk-weighted assets) - Amount | 78,136 | 76,218 |
Actual CET 1 capital (to risk-weighted assets) - Amount | 78,136 | 76,218 |
Actual Tier 1 Leverage (to adjusted total assets) - Amount | $ 78,136 | $ 76,218 |
Actual Total capital (to risk-weighted assets) - Ratio | 18.02% | 20.59% |
Actual Tier 1 capital (to risk-weighted assets) - Ratio | 17.09% | 19.70% |
Actual CET 1 capital (to risk-weighted assets) - Ratio | 17.09% | 19.70% |
Actual Tier 1 Leverage (to adjusted total assets) - Ratio | 13.01% | 13.99% |
Total capital (to risk-weighted assets) actual capital conservation buffer, ratio | 10.018% | 12.592% |
Total capital (to risk-weighted assets) required capital conservation buffer, ratio | 2.50% | 1.875% |
Tier 1 capital (to risk-weighted assets) actual capital conservation buffer, ratio | 11.086% | 13.702% |
Tier 1 capital (to risk-weighted assets) required capital conservation buffer, ratio | 2.50% | 1.875% |
CET 1 capital (to risk-weighted assets) actual capital conservation buffer, ratio | 12.586% | 15.202% |
CET 1 capital (to risk-weighted assets) required capital conservation buffer, ratio | 2.50% | 1.875% |
Tier 1 Leverage (to adjusted total assets) actual capital conservation buffer, ratio | 9.006% | 9.994% |
Tier 1 Leverage (to adjusted total assets) required capital conservation buffer, ratio | 2.50% | 1.875% |
Minimum [Member] | ||
Total capital (to risk-weighted assets) - For Capital Adequacy Purposes - Amount | $ 36,585 | $ 30,948 |
Tier 1 capital (to risk-weighted assets) - For Capital Adequacy Purposes - Amount | 27,438 | 23,211 |
CET 1 capital (to risk-weighted assets) - For Capital Adequacy Purposes - Amount | 20,579 | 17,408 |
Tier 1 Leverage (to adjusted total assets) - For Capital Adequacy Purposes - Amount | $ 24,031 | $ 21,785 |
Total capital (to risk-weighted assets) - For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets) - For Capital Adequacy Purposes - Ratio | 6.00% | 6.00% |
CET 1 capital (to risk-weighted assets) - For Capital Adequacy Purposes - Ratio | 4.50% | 4.50% |
Tier 1 capital (to adjusted total assets) - For Capital Adequacy Purpose - Ratio | 4.00% | 4.00% |
Total capital (to risk-weighted assets) - To be Well Capitalized under Prompt Corrective Action Provisions - Amount | $ 45,731 | $ 38,685 |
Tier 1 capital (to risk-weighted assets) - To be Well Capitalized under Prompt Corrective Action Provisions - Amount | 36,585 | 30,948 |
CET 1 capital (to risk-weighted assets) - To be Well Capitalized under Prompt Corrective Action Provisions - Amount | 29,725 | 25,145 |
Tier 1 Leverage (to adjusted total assets) - To be Well Capitalized under Prompt Corrective Action Provisions - Amount | $ 30,038 | $ 27,232 |
Total capital (to risk-weighted assets) - To be Well Capitalized under Prompt Corrective Action Provisions - Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) - To be Well Capitalized under Prompt Corrective Action Provisions - Ratio | 8.00% | 8.00% |
CET 1 capital (to risk-weighted assets) - To be Well Capitalized under Prompt Corrective Action Provisions - Ratio | 6.50% | 6.50% |
Tier 1 Leverage (to adjusted total assets) - To be Well Capitalized under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements (Reconciliation of GAAP Capital to Regulatory Tier 1 and Total Capital) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory Capital Requirements [Abstract] | ||
GAAP (Equity) Capital: | $ 79,467 | $ 76,347 |
Plus: Unrealized gains on available-for-sale securities, net of tax | (1,331) | (129) |
Tier 1 Capital and CET1 Capital | 78,136 | 76,218 |
Plus: Allowance for loan losses | 4,267 | 3,448 |
Less: Other investments required to be deducted | (4) | (4) |
Total Regulatory Capital | $ 82,399 | $ 79,662 |
Earnings Per Share (Calculated
Earnings Per Share (Calculated Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earnings per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Numerator- Net income | $ 1,172 | $ 1,212 | $ 805 | $ 898 | $ 1,000 | $ 1,058 | $ 1,006 | $ 936 | $ 4,087 | $ 4,000 | $ 3,378 | |
Denominator: Basic weighted average shares outstanding | 6,002,214 | 6,075,798 | 6,110,365 | |||||||||
Increase in weighted average shares outstanding due to: Stock options | 9,902 | 8,930 | ||||||||||
Diluted weighted average shares outstanding | [1] | 6,002,214 | 6,085,700 | 6,119,295 | ||||||||
Earnings per share: Basic | $ 0.68 | $ 0.66 | $ 0.55 | |||||||||
Earnings per share: Diluted | $ 0.68 | 0.66 | 0.55 | |||||||||
Stock options outstanding weighted average exercise price | $ 14.38 | $ 14.38 | $ 14.38 | |||||||||
2006 Stock Option Plan [Member] | ||||||||||||
Earnings per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of earnings per share | 64,547 | 64,547 | ||||||||||
2012 Equity Incentive Plan [Member] | ||||||||||||
Earnings per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of earnings per share | 20,000 | 20,000 | ||||||||||
[1] | Stock options to purchase 64,547 shares under the Stock Option Plan and 20,000 shares under the EIP at $14.38 were outstanding during 2019 and 2017, but were not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive. |
Commitments to Extend Credit (O
Commitments to Extend Credit (Outstanding Commitments to Extend Credit) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to grant loans [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | $ 26,919 | $ 41,901 |
Unfunded commitments under lines of credit [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | $ 61,309 | $ 52,371 |
Parent Company Only Financial_3
Parent Company Only Financial Information (Statements of Financial Condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and due from banks | $ 7,884 | $ 8,880 | ||
Other assets | 2,971 | 1,949 | ||
Total Assets | 610,869 | 545,708 | ||
Other liabilities | 6,670 | 5,662 | ||
Total stockholders' equity | 82,840 | 79,804 | $ 78,375 | $ 76,030 |
Total Liabilities and Stockholders' Equity | 610,869 | 545,708 | ||
Parent Company [Member] | ||||
Cash and due from banks | 1,793 | 1,795 | ||
Investment in subsidiary | 79,467 | 76,347 | ||
ESOP loan receivable | 1,529 | 1,578 | ||
Other assets | 89 | 89 | ||
Total Assets | 82,878 | 79,809 | ||
Other liabilities | 38 | 5 | ||
Total stockholders' equity | 82,840 | 79,804 | ||
Total Liabilities and Stockholders' Equity | $ 82,878 | $ 79,809 |
Parent Company Only Financial_4
Parent Company Only Financial Information (Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-Interest Expenses | $ 4,051 | $ 3,919 | $ 3,947 | $ 4,003 | $ 4,056 | $ 3,837 | $ 3,782 | $ 3,758 | $ 15,920 | $ 15,433 | $ 14,360 |
Income before Income Taxes | 1,358 | 1,403 | 932 | 1,049 | 1,127 | 1,202 | 1,167 | 1,089 | 4,742 | 4,585 | 4,563 |
Income tax benefit | 186 | 191 | 127 | 151 | 127 | 144 | 161 | 153 | 655 | 585 | 1,185 |
Net Income | $ 1,172 | $ 1,212 | $ 805 | $ 898 | $ 1,000 | $ 1,058 | $ 1,006 | $ 936 | 4,087 | 4,000 | 3,378 |
Parent Company [Member] | |||||||||||
Interest income | 151 | 152 | 140 | ||||||||
Dividend distributed by bank subsidiary | 2,500 | 2,000 | |||||||||
Total Income | 2,651 | 2,152 | 140 | ||||||||
Non-Interest Expenses | 343 | 411 | 362 | ||||||||
Income before Income Taxes | 2,308 | 1,741 | (222) | ||||||||
Income tax benefit | (61) | (72) | (102) | ||||||||
Income (Loss) before undistributed net income of subsidiary | 2,369 | 1,813 | (120) | ||||||||
Equity in undistributed net income of subsidiary | 1,718 | 2,187 | 3,498 | ||||||||
Net Income | $ 4,087 | $ 4,000 | $ 3,378 |
Parent Company Only Financial_5
Parent Company Only Financial Information (Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 1,172 | $ 1,212 | $ 805 | $ 898 | $ 1,000 | $ 1,058 | $ 1,006 | $ 936 | $ 4,087 | $ 4,000 | $ 3,378 |
Other Comprehensive Income (Loss), net of tax: | |||||||||||
Unrealized holding gains (losses) on securities available for sale, net of tax (expense) benefit | 1,244 | (703) | (341) | ||||||||
Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense | (42) | (115) | (89) | ||||||||
Reclassification adjustments related to: Net gains on sale of securities included in net income of subsidiary, net of tax expense | (161) | ||||||||||
Total Other Comprehensive Income (Loss) | 1,202 | (818) | (591) | ||||||||
Total Comprehensive Income | 5,289 | 3,182 | 2,787 | ||||||||
Parent Company [Member] | |||||||||||
Net income | 4,087 | 4,000 | 3,378 | ||||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||
Total Other Comprehensive Income (Loss) | 1,202 | (818) | (591) | ||||||||
Total Comprehensive Income | 5,289 | 3,182 | 2,787 | ||||||||
Subsidiary [Member] | |||||||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||
Unrealized holding gains (losses) on securities available for sale, net of tax (expense) benefit | 1,244 | (703) | (341) | ||||||||
Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense | $ (42) | $ (115) | (89) | ||||||||
Reclassification adjustments related to: Net gains on sale of securities included in net income of subsidiary, net of tax expense | $ (161) |
Parent Company Only Financial_6
Parent Company Only Financial Information (Statement of Comprehensive Income) - Tax Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other comprehensive income, Recovery on previously impaired investment securities included in net income, tax | $ (12) | $ (30) | $ (46) |
Gain on sales of securities included in net income, tax expense | 83 | ||
Subsidiary [Member] | |||
Unrealized holding losses on securities available for sale, tax benefit | (331) | 187 | 176 |
Other comprehensive income, Recovery on previously impaired investment securities included in net income, tax | $ 12 | $ 30 | 46 |
Gain on sales of securities included in net income, tax expense | $ 83 |
Parent Company Only Financial_7
Parent Company Only Financial Information (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 1,172 | $ 1,212 | $ 805 | $ 898 | $ 1,000 | $ 1,058 | $ 1,006 | $ 936 | $ 4,087 | $ 4,000 | $ 3,378 |
ESOP shares committed to be released | 120 | 130 | 126 | ||||||||
Increase in other assets | (480) | (18) | 62 | ||||||||
Increase in other liabilities | 197 | 163 | 381 | ||||||||
Net Cash Provided by Operating Activities | 5,836 | 6,114 | 5,827 | ||||||||
Activity in available for sale securities: Maturities, prepayments and calls | 18,827 | 9,426 | 12,002 | ||||||||
Net Cash Provided by Investing Activities | (64,730) | (39,087) | (36,462) | ||||||||
Proceeds from stock options exercised | 6 | 4 | |||||||||
Purchase of treasury stock | (1,419) | (1,448) | (269) | ||||||||
Cash dividends paid | (1,272) | (880) | (743) | ||||||||
Net Cash Used in Financing Activities | 58,432 | 22,811 | 26,069 | ||||||||
CASH AND CASH EQUIVALENTS - BEGINNING | 30,751 | 30,751 | |||||||||
CASH AND CASH EQUIVALENTS - ENDING | 30,289 | 30,751 | 30,289 | 30,751 | |||||||
Parent Company [Member] | |||||||||||
Net income | 4,087 | 4,000 | 3,378 | ||||||||
ESOP shares committed to be released | 120 | 130 | 126 | ||||||||
Stock based compensation expense | 322 | 445 | 440 | ||||||||
Increase in other assets | (200) | (200) | (307) | ||||||||
Increase in other liabilities | 23 | 3 | 2 | ||||||||
Equity in undistributed earnings of subsidiary | (1,718) | (2,187) | (3,498) | ||||||||
Net Cash Provided by Operating Activities | 2,634 | 2,191 | 141 | ||||||||
Activity in available for sale securities: Maturities, prepayments and calls | 4 | ||||||||||
Payments received on ESOP Loan | 49 | 45 | 43 | ||||||||
Net Cash Provided by Investing Activities | 49 | 45 | 47 | ||||||||
Proceeds from stock options exercised | 6 | 4 | |||||||||
Purchase of treasury stock | (1,419) | (1,448) | (269) | ||||||||
Cash dividends paid | (1,272) | (880) | (743) | ||||||||
Net Cash Used in Financing Activities | (2,685) | (2,328) | (1,008) | ||||||||
Net Decrease in Cash and Cash Equivalents | (2) | (92) | (820) | ||||||||
CASH AND CASH EQUIVALENTS - BEGINNING | $ 1,795 | $ 1,887 | 1,795 | 1,887 | 2,707 | ||||||
CASH AND CASH EQUIVALENTS - ENDING | $ 1,793 | $ 1,795 | $ 1,793 | $ 1,795 | $ 1,887 |
Quarterly Financial Data (Quart
Quarterly Financial Data (Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data – Unaudited [Abstract] | |||||||||||
Total interest income | $ 6,334 | $ 6,319 | $ 5,952 | $ 5,662 | $ 5,671 | $ 5,490 | $ 5,267 | $ 5,108 | $ 24,267 | $ 21,536 | $ 19,408 |
Total interest expense | 1,438 | 1,366 | 1,269 | 1,124 | 1,011 | 955 | 860 | 776 | 5,197 | 3,602 | 2,630 |
Net interest income | 4,896 | 4,953 | 4,683 | 4,538 | 4,660 | 4,535 | 4,407 | 4,332 | 19,070 | 17,934 | 16,778 |
Provision for loan losses | 175 | 300 | 350 | 75 | 75 | 125 | 115 | 75 | 900 | 390 | 510 |
Net interest income after provision for loan losses | 4,721 | 4,653 | 4,333 | 4,463 | 4,585 | 4,410 | 4,292 | 4,257 | 18,170 | 17,544 | 16,268 |
Total non-interest income | 688 | 669 | 546 | 589 | 598 | 629 | 657 | 590 | 2,492 | 2,474 | 2,655 |
Total non-interest expense | 4,051 | 3,919 | 3,947 | 4,003 | 4,056 | 3,837 | 3,782 | 3,758 | 15,920 | 15,433 | 14,360 |
Income before income taxes | 1,358 | 1,403 | 932 | 1,049 | 1,127 | 1,202 | 1,167 | 1,089 | 4,742 | 4,585 | 4,563 |
Income tax expense | 186 | 191 | 127 | 151 | 127 | 144 | 161 | 153 | 655 | 585 | 1,185 |
Net income | $ 1,172 | $ 1,212 | $ 805 | $ 898 | $ 1,000 | $ 1,058 | $ 1,006 | $ 936 | $ 4,087 | $ 4,000 | $ 3,378 |
Basic and diluted earnings per share | $ 0.20 | $ 0.20 | $ 0.13 | $ 0.15 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.15 | $ 0.68 | $ 0.66 | $ 0.55 |
Treasury Stock (Narrative) (Det
Treasury Stock (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||
Shares of common stock repurchased at average cost | 93,424 | 88,555 | 17,100 |
Repurchased shares of common stock average cost per share | $ 15.19 | $ 16.35 | |
Remaining number of shares authorized to be repurchased under stock repurchase program | 97,039 | 68,190 | |
Common Stock Repurchase Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares of common stock repurchased at average cost | 87,390 | 86,300 | |
Repurchased shares of common stock average cost per share | $ 15.19 | $ 16.38 | |
Unvested RRP And EIP Stock Holdings [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares of common stock repurchased at average cost | 6,034 | 2,255 | |
Repurchased shares of common stock average cost per share | $ 15.22 | ||
2012 Equity Incentive Plan [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares of common stock repurchased at average cost | 860 | 10,433 | |
Repurchased shares of common stock average cost per share | $ 9.88 | $ 9.42 | |
Treasury stock transferred to fund awards granted | 5,186 | 5,329 | |
Treasury stock transferred, average cost per share | $ 9.39 | $ 9.39 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Tax Effects Allocated to Single Component of Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss) [Abstract] | |||
Net unrealized gains (losses) on securities available for sale arising during the year, before tax | $ 1,575 | $ (890) | $ (517) |
Less: reclassification adjustments related to: Recovery on previously impaired investment securities included in net income, before tax | (54) | (145) | (135) |
Less: reclassification adjustment related to: Net gain on sale of securities included in net income, before tax | (244) | ||
Total Other Comprehensive Income (Loss), before tax | 1,521 | (1,035) | (896) |
Net unrealized gains (losses) on securities available for sale arising during the year, tax (expense) benefit | (331) | 187 | 176 |
Less: reclassification adjustments related to: Recovery on previously impaired investment securities included in net income, tax (expense) benefit | 12 | 30 | 46 |
Less: reclassification adjustment related to: Net gain on sale of securities included in net income, tax (expense) benefit | 83 | ||
Total Other Comprehensive Income (Loss), tax (expense) benefit | (319) | 217 | 305 |
Net unrealized losses on securities available for sale arising during the year, net of tax | 1,244 | (703) | (341) |
Reclassification adjustments related to: Recovery on previously impaired investment securities included in net income of subsidiary, net of tax expense | (42) | (115) | (89) |
Less: reclassification adjustment related to: Net gain on sale of securities included in net income, net of tax | 161 | ||
Total Other Comprehensive Income (Loss) | $ 1,202 | $ (818) | $ (591) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Reclassification Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Recovery on previously impaired investment securities | $ 54 | $ 145 | $ 135 | ||||||||
Gain on sale of securities available for sale | 244 | ||||||||||
Income before income taxes | $ 1,358 | $ 1,403 | $ 932 | $ 1,049 | $ 1,127 | $ 1,202 | $ 1,167 | $ 1,089 | 4,742 | 4,585 | 4,563 |
Income tax expense | (186) | (191) | (127) | (151) | (127) | (144) | (161) | (153) | (655) | (585) | (1,185) |
Net income | $ 1,172 | $ 1,212 | $ 805 | $ 898 | $ 1,000 | $ 1,058 | $ 1,006 | $ 936 | 4,087 | 4,000 | 3,378 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax expense | 12 | 30 | 129 | ||||||||
Net income | (42) | (115) | (250) | ||||||||
Unrealized Gains and Losses on Securities Available for Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Recovery on previously impaired investment securities | (54) | (145) | (135) | ||||||||
Gain on sale of securities available for sale | (244) | ||||||||||
Income before income taxes | $ (54) | $ (145) | $ (379) |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Sales of OREO | $ 0 | |
ASU 2014-09 [Member] | ||
Gain on sale of the property | $ 33,000 |
Revenue Recognition (Non-Intere
Revenue Recognition (Non-Interest Income, Segregated by Revenue Streams In-Scope and Out-of-Scope of Topic 606) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-Interest Income | $ 688 | $ 669 | $ 546 | $ 589 | $ 598 | $ 629 | $ 657 | $ 590 | $ 2,492 | $ 2,474 | $ 2,655 |
Service charges on deposit accounts [Member] | |||||||||||
Non-Interest Income | 817 | 880 | 912 | ||||||||
Fees, Interchange Income And Other Service Charges [Member] | |||||||||||
Non-Interest Income | 848 | 804 | 741 | ||||||||
Other [Member] | |||||||||||
Non-Interest Income | 39 | 40 | 39 | ||||||||
Non-interest Income (out of scope of Topic 606) [Member] | |||||||||||
Non-Interest Income | 788 | 750 | 963 | ||||||||
Non-interest Income (in-scope of Topic 606) [Member] | |||||||||||
Non-Interest Income | $ 1,704 | $ 1,724 | $ 1,692 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 05, 2021 | Feb. 05, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||
Dividends declared per share | $ 0.48 | $ 0.40 | $ 0.32 | ||
MHC [Member] | |||||
Subsequent Event [Line Items] | |||||
Equity securities common stock shares owned | 3,636,875 | ||||
Equity method investment, ownership percentage | 61.40% | ||||
Cumulative cash dividends waived | $ 12,400 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per share | $ 0.12 | ||||
Dividends payable, date to be paid | Mar. 16, 2020 | ||||
Dividends payable, date of record | Feb. 24, 2020 | ||||
Subsequent Event [Member] | MHC [Member] | |||||
Subsequent Event [Line Items] | |||||
Equity securities common stock shares owned | 3,636,875 | ||||
Equity method investment, ownership percentage | 61.40% | ||||
Dividend Declared [Member] | Subsequent Event [Member] | MHC [Member] | |||||
Subsequent Event [Line Items] | |||||
Aggregate annual dividend to be waived per share | $ 0.50 | ||||
Dividends Waived [Member] | MHC [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividends waived | $ 436 | $ 1,500 | |||
Dividends Waived [Member] | Forecast [Member] | MHC [Member] | |||||
Subsequent Event [Line Items] | |||||
Aggregate annual dividend per share | $ 0.50 | ||||
Dividends Waived [Member] | Subsequent Event [Member] | MHC [Member] | |||||
Subsequent Event [Line Items] | |||||
Aggregate annual dividend per share | $ 0.50 |